MR 2

MARKETING RESEARCH
Sub Code - 693
Developed by
Prof. Ashish Hathi
On behalf of
Prin. L.N. Welingkar Institute of Management Development & Research
Advisory Board
Chairman
Prof. Dr. V.S. Prasad
Former Director (NAAC)
Former Vice-Chancellor
(Dr. B.R. Ambedkar Open University)
Board Members
1. Prof. Dr. Uday Salunkhe 2. Dr. B.P. Sabale 3. Prof. Dr. Vijay Khole 4. Prof. Anuradha Deshmukh
Group Director Chancellor, D.Y. Patil University, Former Vice-Chancellor Former Director
Welingkar Institute of Navi Mumbai (Mumbai University) (YCMOU)
Management Ex Vice-Chancellor (YCMOU)
Program Design and Advisory Team
Prof. B.N. Chatterjee Mr. Manish Pitke

Dean – Marketing Faculty – Travel and Tourism
Welingkar Institute of Management, Mumbai Management Consultant
Prof. Kanu Doshi Prof. B.N. Chatterjee

Dean – Finance Dean – Marketing
Welingkar Institute of Management, Mumbai Welingkar Institute of Management, Mumbai
Prof. Dr. V.H. Iyer Mr. Smitesh Bhosale

Dean – Management Development Programs Faculty – Media and Advertising
Welingkar Institute of Management, Mumbai Founder of EVALUENZ
Prof. B.N. Chatterjee Prof. Vineel Bhurke

Dean – Marketing Faculty – Rural Management
Prof. Venkat lyer Dr. Pravin Kumar Agrawal

Director – Intraspect Development Faculty – Healthcare Management
Manager Medical – Air India Ltd.
Prof. Dr. Pradeep Pendse Mrs. Margaret Vas

Dean – IT/Business Design Faculty – Hospitality
Welingkar Institute of Management, Mumbai Former Manager-Catering Services – Air India Ltd.
Prof. Sandeep Kelkar Mr. Anuj Pandey

Faculty – IT Publisher
Welingkar Institute of Management, Mumbai Management Books Publishing, Mumbai
Prof. Dr. Swapna Pradhan Course Editor

Faculty – Retail Prof. Dr. P.S. Rao
Welingkar Institute of Management, Mumbai Dean – Quality Systems
Welingkar Institute of Management, Mumbai
Prof. Bijoy B. Bhattacharyya Prof. B.N. Chatterjee

Dean – Banking Dean – Marketing
Mr. P.M. Bendre Course Coordinators

Faculty – Operations Prof. Dr. Rajesh Aparnath
Former Quality Chief – Bosch Ltd. Head – PGDM (HB)
Welingkar Institute of Management, Mumbai
Mr. Ajay Prabhu Ms. Kirti Sampat

Faculty – International Business Assistant Manager – PGDM (HB)
Corporate Consultant Welingkar Institute of Management, Mumbai
Mr. A.S. Pillai Mr. Kishor Tamhankar

Faculty – Services Excellence Manager (Diploma Division)
Ex Senior V.P. (Sify) Welingkar Institute of Management, Mumbai
COPYRIGHT © by Prin. L.N. Welingkar Institute of Management Development & Research.

Printed and Published on behalf of Prin. L.N. Welingkar Institute of Management Development & Research, L.N. Road, Matunga (CR), Mumbai - 400 019.
ALL RIGHTS RESERVED. No part of this work covered by the copyright here on may be reproduced or used in any form or by any means – graphic,
electronic or mechanical, including photocopying, recording, taping, web distribution or information storage and retrieval systems – without the written
permission of the publisher.
NOT FOR SALE. FOR PRIVATE CIRCULATION ONLY.
1st Edition, January 2020

PREFACE
PREFACE
This book is meant for the both students and marketing researchers. The
idea is to introduce the concepts and practices to show how marketing
information and research tools must be applied, not only to solve the
various problems but also to identify opportunities to grow in today’s
growing competitive business.
In changing markets, there is always a demand for useful or vital

information from all possible resources.
Carefully, analyzing the demand factor using marketing research tools

helps the management in making key decisions is the USP (Unique Selling
Proposition) of our subject. This, in turn, would help researchers to
introduce better systems capable of creating innovative solutions and
creating a vital information database.
The objectives of the marketing research are to discover what the

consumers in general want, need or aspire for. It also involves the study of
consumer behavior. Once the research is completed, it offers the guidelines
for suitably positioning and marketing the product.
The goal of marketing research is to identify and assess the need for
changing elements of the marketing mix which will impact consumer’s
behavior and influence their buying decisions.
All the topics that are covered in this book are put together keeping in
mind the students needs. The book comprises 13 chapters and in general,
covering most of the special aspects of marketing research including the
concept of marketing research, importance of marketing research,
marketing research techniques, various methods of data collection,
methods of hypothesis testing, etc.
In general, after studying the complete book, students will be able to

understand the concept of marketing research, research process and
applications of marketing research.
Prof. Ashish Hathi
3
CONTENTS
Contents
Chapter
Chapter Name Page No.
No.
1 Introduction 5-30
2 Marketing Research Process 31-62
3 Various Sources of Market Information 63-92
4 Market Research Techniques 93-120
5 Marketing Mix Research 121-173
6 Types of Research Designs 174-190
7 Qualitative and Quantitative Research Techniques 191-212
8 Causal and Experimental Research 213-224
9 Primary Data 225-263
10 Sampling 264-291
11 Data Analysis 292-332
12 Hypothesis Testing 333-354
13 Report Writing 355-371
14 Marketing Information System 372-389
15 Market Research in the Digital World 390-408
16 New Age Applications of Marketing Research 409-425
4
INTRODUCTION
Chapter 1
Introduction
Objectives
After studying this chapter, you will be able to understand:
• Understand the meaning and significance of the “marketing research”
• How to relate the MR as a function to marketing environment,

consumers, and customers through information
Structure:
1.1 Introduction
1.2 Meaning and Definition of Marketing Research
1.3 Nature and Scope of Marketing Research
1.4 Significance of Marketing Research
1.5 Limitations and Obstacles in Marketing Research
1.6 Ethics in Marketing Research
1.7 Types of Researches
1.8 Summary
1.9 Self Assessment Questions
5
INTRODUCTION
1.1 Introduction
Any decision making has four components namely: (1) Data, (2) Analysis,
(3) Inferences and (4) Conclusion. If any one of these component is not
present, decision making becomes difficult.
To undertake marketing effectively, businesses need information.

Information about who their customers are, customer needs and wants,
product acceptance, market demand, competitors, distribution channels,
environment, etc.
Decision making sphere covers decision making based on hard numbers,

behavioral aspects understanding, and psychographic evaluations, very
critical for any marketing decision.
Marketers often complain that they lack enough marketing information of

the right kind or have too much of the wrong kind. The solution is an
effective marketing information system.
The information needed by marketing managers comes from three main

sources:
1. Internal company information

This information includes sales, orders, customer profiles, stocks, customer
service reports, etc. In the new digital age, information is also available
from different digital gateways created to address different customers
touchpoints like website, APP use, call center, collaborative partnership
platforms like car manufacturers tie-up with Car-Dekho, HDFC Bank with
Indigo Airline for co-branded cards and more.
2. Marketing intelligence
This can be information gathered from many sources, including suppliers,
customers, and distributors, sales force and vendors. Marketing intelligence
is a catch-all term to include all the everyday information about
developments in the market that helps a business prepare and adjust its
marketing plans. Be it automobile company, FMCG or retail giants, all have
their network mapped to determine, for which competitors, what kind of
info can be obtained from whom? It is possible to buy intelligence
information from outside suppliers (e.g., Mintel, Dun & Bradstreet, Mori)
6
INTRODUCTION
who sets up data gathering systems to support commercial intelligence

products that can be profitably sold to all players in a market.
3. Market research
Complex human behavior and psychographic understanding cannot be
derived from any formal/informal information sources. In such
circumstances, businesses often need to undertake specific studies to
support their marketing strategy – this is market research.
The task of marketing research (MR) is to provide management with

relevant, accurate, reliable, valid and current information. With a
competitive marketing environment and the ever increasing costs
attributed to poor decision making, it becomes essential to use marketing
research. Sound decisions cannot be based on gut feeling, intuition or even
pure judgment.
Marketing managers make numerous strategic and tactical decisions in the

process of identifying and satisfying customer needs. They make decisions
about potential opportunities, segment identification, target market
selection, planning and implementing marketing programs, marketing
performance and control. These decisions are complicated by interactions
between the controllable marketing variables of product, pricing,
promotion, and distribution. Further complications are added by
uncontrollable environmental factors such as general economic conditions,
technology, public policies and laws, political environment, competition,
and social and cultural changes. Another factor in this mix is the
complexity of consumers. Marketing research helps the marketing manager
link the marketing variables with the environment and the consumers. It
helps remove some of the uncertainty by providing relevant information
about the marketing variables, environment and consumers. In the
absence of relevant information, consumers' response to marketing
programs cannot be predicted reliably or accurately. Ongoing marketing
research programs provide information on controllable and non-controllable
factors and consumers; this information enhances the effectiveness of
decisions made by marketing managers.
Today’s competitive environment, both marketing manager and marketing

research agency, need to work very closely on a continuous basis. The role
of marketing research in managerial decision making is explained further
using the framework of the "DECIDE" model:
7
INTRODUCTION
The DECIDE model conceptualizes managerial decision making as a series

of six steps. The decision process begins by (1) precisely defining the
problem or opportunity, (2) along with the objectives and constraints.
Next, the possible decision factors that make up the alternative courses of
action (controllable factors) and uncertainties (uncontrollable factors) are
enumerated. Then,(3) relevant information on the alternatives and possible
outcomes is collected. The next step is to (4) identify and select the best
alternative based on chosen criteria or measures of success. Then, (5) a
detailed plan to develop and implement the alternative selected is
developed and put into effect. Last, (6) the outcome of the decision and
the decision process itself are evaluated.
The Evolution of Marketing Research (MR)
Market Research started with the onset of industrialization, wherein need

was felt to determine liking of people towards nature of clothes during
textile revolutions. Since then, it has always been helping industrialists and
marketing managers to take investment decisions, go to market decisions,
strategic decisions, and more.
It started more with quantitative nature of research using conventional

tools like interviews, focus groups, etc. With growing industrialization and
understanding latent, unfulfilled consumer need was essential, which may
not come out with simple Q&A approach. Thus, the birth of qualitative
marketing research technique took place, with tools also changing.
As competition intensified, it became essential for marketers to understand

behavioral and psychographic aspect of brand and product selection. Also,
marketing research coverage increased from pre-product development, till
customer satisfaction and later product disposal and new product
acceptance field of understanding.
With technology advancement, marketing research also started playing

complex role of large data assimilation and analysis – such as website
traffic, page hit rates, duration per page and more. Not only that,
technology gadgets like video, hidden camera and more being used
differently to capture consumers behavioral aspects more closely. With
digitalization, call center set ups, intelligent crawlers/cookies reading your
every steps closely and BIG DATA has emerged as the challenge, which
technology stalwarts are addressing using Artificial Intelligence also.
8
INTRODUCTION
Marketing research domain stalwarts are adapting to different technology

advancement to their advantage – use of SPSS program for faster data
analysis, questionnaire development and data collection tools (Google
Form, SurveyMonkey) and more. Mobile device is used for multiple use –
virtual interview, short quick to answer survey, SMS survey and something
beyond the comprehension of common man – tracking your locations, site
visits, product viewed, videos seen and more. More advanced analysis tools
help marketers to understand consumers’ behavior including hidden
aspects, personal choices and clients can be guided regarding product
development, consumers likes/dislikes, communication effectiveness, offer
impact and more. All in all, increasing penetration of mobile devices in the
hands of individuals is changing the way data is collected, behavioral
aspects are observed and analyzed, and analytics helping marketers to
optimize their spend and take right decision at the right time.
1.2 Meaning and definition of marketing research
“Marketing research is the function that links the consumer,

customer and public to the marketer through information –
information used to identify and define marketing opportunities
and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of
marketing as a process. Marketing research specifies the
information required to address these issues, designs the methods
for collecting information, manages and implements the data
collection process, analyzes, and communicates the findings and
their implications.”
– American Marketing Association (AMA) – Official Definition of

Marketing Research
It is the systematic gathering, recording, and analysis of qualitative and

quantitative data about issues relating to marketing products and services.
The goal of marketing research is to identify and assess how changing
elements of the marketing mix impacts customer behavior. The term is
commonly interchanged with market research; however, expert
practitioners may wish to draw a distinction, in that market research is
concerned specifically with markets, while marketing research is concerned
specifically about marketing processes.
9
INTRODUCTION
Thus, marketing research may also be described as the systematic and

objective identification, collection, analysis and dissemination of
information for the purpose of assisting management in decision making
related to the identification and solution of problems and opportunities in
marketing.
1.3 Nature and scope of Marketing Research
Marketing research is often partitioned into two sets of categorical pairs,

either by target market:
• Consumer marketing research, and

• Business-to-business (B2B) marketing research
Or, alternatively, by methodological approach:
• Qualitative marketing research, and

• Quantitative marketing research
Consumer marketing research is a form of applied sociology that

concentrates on understanding the preferences, attitudes, and behaviors of
consumers in a market-based economy, and it aims to understand the
effects and comparative success of marketing campaigns. The field of
consumer marketing research as a statistical science was
pioneered by Arthur Nielsen with the founding of the AC Nielsen
Company in 1923.
Business to Business (B2B) marketing research is a form of understanding

human reasoning while dealing in rational decision making environment.
Quantitative marketing research is a form of research which evaluates

decision making variables using quantitative format of Q&A and analysis.
This kind of format is suitable for many marketing decision areas such as
product development, go to market, market demand estimation and more.
Qualitative marketing research is a form of research which helps you to

understand behavioral, psychological and psychographic aspects of human
decision making. It addresses “Why?”’ aspect of particular decision.
10
INTRODUCTION
Organizations engage in marketing research for two reasons: (1) to

identify and (2) solve marketing problems. This distinction serves as a
basis for classifying marketing research into problem identification research
and problem solving research.
Problem identification research is undertaken to help identify problems

which are, perhaps, not apparent on the surface and yet exist or are likely
to arise in the future like company image, market characteristics, sales
analysis, short-range and long-range forecasting and business trends
research. Research of this type provides information about the marketing
environment and helps diagnose a problem. For example, the findings of
problem solving research are used in making decisions which will solve
specific marketing problems.
Problem solving research are the one designed to understand the root
cause of the specific problem encountered by the marketers and what may
help them to solve the problem – Demand for your product is falling and
you want to understand why is it falling and what needs to be done to stop
the further fall.
The scope of marketing research varies widely. In the following paragraphs,

you will get a brief idea about the same.
Customized services offer a wide variety of marketing research services

customized to suit a client's specific needs. Each marketing research
project is treated uniquely.
Standardized services are research studies conducted for different client

firms but in a standard way. For example, procedures for measuring
advertising effectiveness have been standardized so that the results can be
compared across studies and evaluative norms can be established. Also,
research procedure for the Television viewership – Television Rating Point
(TRP) is a form of standardized services, used by different broadcasting
channels to determine the impact their program has on viewers. In other
words, which program get the highest viewership at any given point of
time. Nelson’s Retail Measurement Report is a standardized service. These
services are also sold on a syndicated basis.
11
INTRODUCTION
Limited-service suppliers specialize in one or a few phases of the

marketing research project. Services offered by such suppliers are
classified as field services, coding and data entry, data analysis, analytical
services and branded products. Field services collect data through the
internet, traditional mail, in-person, or telephone interviewing, and firms
that specialize in interviewing are called Field Service Organizations.
• Coding and data entry services include editing completed questionnaires,

developing a coding scheme, and transcribing the data on to diskettes or
magnetic tapes for input into the computer. NRC Data Systems provides
such services.
• Analytical services include designing and pretesting questionnaires,

determining the best means of collecting data, designing sampling plans,
and other aspects of the research design. Some complex marketing
research projects require knowledge of sophisticated procedures,
including specialized experimental designs, and analytical techniques
such as conjoint analysis and multidimensional scaling. This kind of
expertise can be obtained from firms and consultants specializing in
analytical services.
• Data analysis services are offered by firms, also known as tab houses,
that specialize in computer analysis of quantitative data such as those
obtained in large surveys. Initially, most data analysis firms supplied only
tabulations (frequency counts) and cross tabulations (frequency counts
that describe two or more variables simultaneously). With the
proliferation of software, many firms now have the capability to analyze
their own data, but data analysis firms are still in demand.
• Branded marketing research products and services are specialized data

collection and analysis procedures developed to address specific types of
marketing research problems. These procedures are patented, given
brand names and marketed like any other branded product.
12
INTRODUCTION
1.4 Significance of marketing research
The importance of marketing research in management extends to

intelligent decision making, maximizing profits, increasing the sales,
minimizing the risks and ascertaining whether a new product will be
profitable in a given market at a given time.
Toying with a new product idea, wanting to boost up your sales or planning
to launch a new product, the importance of marketing research has grown
unprecedentedly, especially in the times of recession. In fact, Philip
Kotler, the marketing guru, acknowledges that it is only by marketing
research, planning, implementation and control that effective marketing
management can be accomplished.
The need and importance of marketing research are depicted below.
1. Provides valuable data

Marketing research provides valuable data to the decision makers. It
provides data about demand, supply, consumer behavior, competition, etc.
This data is used for decision making. This data improves the quality of
decisions. It makes the decision very successful.
13
INTRODUCTION
2. Studies consumer behavior

Marketing research provides data about consumer behavior. It provides
demographic data about age, incomes, likes, dislikes, etc. of the
consumers. It also offers behavioral insights regarding WHY consumer took
specific decision – to choose specific product, specific brand, specific price,
specific mix, purchase experience, post-purchase experience and more.
This data is used to make production and marketing policies.
3. Selects promotional techniques

Understanding about target consumers’ media habits helps the company to
select suitable sales promotion techniques. It helps to select marketing
techniques. It helps to select proper media for advertising. It also helps to
prepare the budget for advertising and sales promotion.
4. Supplies marketing information
Marketing research supplies data about the market situation.
This market-related data is used to find out:
1. The present and future demand and supply position.

2. The level of competition and steps taken to control it.
3. Market opportunities.
4. The cause of fall in sales level.
5. Evaluates marketing performance
Marketing research helps the company to evaluate its marketing

performance and to take steps to improve it.
Marketing research is used to find out the effect of price, package, brand
name, etc., on sales. It is used to find consumers’ reaction towards the
company’s product. It is used to evaluate the inventory and pricing
policies. It is also used to evaluate the effectiveness of advertising, sales
promotion techniques, channels of distribution, etc.
14
INTRODUCTION
6. Miscellaneous needs and importance
Miscellaneous needs and importance of marketing research are as follows:
• Marketing research improves the efficiency of the marketing department.

It helps marketing department to introduce new products, understand
customers’ likes/dislikes, change product mix, engage better with
consumers and derive their satisfaction, and post-purchase experience.
• It helps the marketing manager to take rational and effective decisions.
• It is used to make growth and expansion programmes.
• It benefits all, i.e., it benefits the company, distributor, advertising

agency, consumer, government and the entire society.
So, marketing research is very helpful to everyone. But it is most useful to

a manufacturer because it helps to answer the basic questions, i.e., what,
where, when, who, whom and how to sell?
1.5 Limitations and obstacles in marketing research
"Marketing research does not make decisions and it does not guarantee
success". Marketing managers may seek advice from marketing research
specialists, and indeed it is important that research reports should specify
alternative courses of action and the probability of success, where possible,
of these alternatives.
However, it is marketing managers who make the final marketing decision

and not the researcher. The second observation, that marketing research
does not guarantee success, is simply a recognition of the environment
within which marketing takes place. In the fields of science and
engineering, researchers are often working with deterministic models of
the world where y = f(x). That is, x is a necessary and sufficient condition
for y to occur.
Consider the marketing problem of determining how much to spend on

promotion in order to achieve a given market share. The link between
promotional expenditure and sales is not so direct. Yet often, research is
focused on deriving specific relationship between the two.
15
INTRODUCTION
There are a great many more intervening variables, including: the media
used, the effectiveness of the promotional message, the length and
frequency of the campaign, not to mention the many dimensions of the
product, price and distribution. Thus, it is essential for all of us to
understand the main limitations of marketing research.
Limitations of Marketing Research
Following are the main limitations of Marketing Research:
• Marketing Research (MR) is not an exact science though it uses the

techniques of science. Thus, the results and conclusions drawn upon by
using MR are indicative in nature.
• The results of MR are very vague as MR is carried out on consumers,

suppliers, intermediaries, etc., who are humans. Humans have a
tendency to behave artificially when they know that they are being
observed. Thus, the consumers and respondents upon whom the
research is carried behave artificially when they are aware that their
attitudes, beliefs, views, etc., are being observed.
• MR is not a complete solution to any marketing issue as there are many

dominant variables between research conclusions and market response.
• MR is not free from bias. The research conclusions cannot be verified.

The reproduction of the same project on the same class of respondents
give different research results – classic example of 2019 Lok Sabha
polling result prediction by different agencies.
• Many business executives and researchers have ambiguity about the

research problem and its objectives. They have limited experience of the
notion of the decision making process. This leads to carelessness in
research and researchers are not able to do anything real.
• MR faces time constraints. The firms are required to maintain a balance

between the requirement for having a broader perspective of customer
needs and the need for quick decision making so as to have a
competitive advantage.
16
INTRODUCTION
• A huge cost is involved in MR as collection and processing of data can be

costly. Many firms do not have the proficiency to carry out wide surveys
for collecting primary data, and might not also be able to hire specialized
market experts and research agencies to collect primary data. Thus, in
that case, they go for obtaining secondary data that is cheaper to obtain.
• MR is conducted in an open marketplace where numerous variables act

on research settings.
Obstacles that a Company May Face at the Time of Conducting

Market Research
The concept of market research as a strong component of business has

been predominant for a pretty long time. The key element of any market
research is the accumulation of customer and market insights.
It is expected that the observations will help businesses to gain a

competitive advantage, market leadership and innovation. Though it
sounds tempting from a business point of view, the question is whether it
is possible to achieve this ideal outcome all the time through market
research.
The ultimate goal of a research is to turn buyers’ insights into a

competitive advantage. It is difficult for the leaders to determine trends
and turn them into actionable strategies from the quantitative analysis
alone. An equal effort and investment is required for qualitative behavioral
research also.
Some of the common obstacles faced in Business to Business (B2B)

organizations that hinder the business to buyers’ insights into actionable
strategies are:
17
INTRODUCTION
1. Scope for Study

Most of the time, to control the cost, the scope of gathering information is
too narrow and focused only on a specific marketing problem, and research
findings is supposed to solve the problem. Product success may also
depend on other variables kept out of the scope. If a product is launched
on the basis of inadequate research, future of such a product is uncertain.
It may click or may be completely rejected by the customers.
2. Pressure to Derive Profit

Quarterly and annual profitability pressure is so dominant, that the
marketing department hardly has the time to study the outcome of market
research in depth and predict the buying trends. As a result, the customer
focused approaches slowly fade in lieu of achieving targets.
3. Gap between Management and the Research Personnel

The job of the research department is over with the collection of
quantitative or qualitative insights. Though they provide the content and
analysis, they hardly engage in decision making. An insurmountable gap, is
created between the top management and the research professionals, that
makes the predictions superficial.
4. Overload of Information
This is a very common problem that almost every research initiative has to
meet. When senior executives are presented with the research report they
are lost in charts, volumes of statistics and analytics. They hardly can
gather meaningful insights from the pages of reports laden with
information.
Today’s dynamic and ever evolving market structure requires new thinking
and initiatives. The purpose of market research is to drive business growth
in the right direction. The insights of the customers are very helpful in this
regard and market research is the only way to understand the customers’
way of thinking and analyse their buying trends. So, a business cannot
sustain or grow without performing research.
Therefore, it must take resort of a third party to perform the market

research, analyze the report and help the business to make strategic
decisions on the basis of the outcome.
18
INTRODUCTION
1.6 Ethics In Marketing Research
Market research is the collection and analysis of information about

consumers, competitors and the effectiveness of marketing programs. With
market research, businesses can make decisions based on how the
responses of the market, leading to a better understanding of how the
business has to adapt to the changing market. It is used to establish which
portion of the population will or does purchase a product, based on age,
gender, location, income level, and many other variables. This research
allows companies to learn more about past, current, and potential
customers, including their specific likes and dislikes.
Ethical danger points in market research include:
• Invasion of privacy
• Stereotyping
People affected by unethical market research:

• Public
• Respondents
• Client
• Researcher
Marketing research has experienced a resurgence with the widespread use

of the Internet and the popularity of social networking. It is easier than
ever before for companies to connect directly with customers and collect
individual information that goes into a computer database and can be
matched to other pieces of data collected during unrelated transactions.
The way a company conducts its market research these days can have
serious ethical repercussions, impacting the lives of consumers in ways
that have yet to be fully understood. Further, companies can be faced with
a public backlash if its market research practices are perceived as
unethical.
19
INTRODUCTION
Deceptive Practices
The ease with which a company can access and gather data about its
customers can lead to deceptive practices and dishonesty in the company's
research methods. This type of ethical problem can run the gamut — from
not telling customers that information is being collected when they visit a
website to misrepresenting research numbers by changing database
numbers. Any action that uses lies and deception to find out or establish
information about consumers falls under this category.
Invasion of Privacy
One of the most serious ethical considerations involved in market research
is invasion of privacy. Companies have an unprecedented ability to collect,
store and match information relating to customers that can infringe on a
customer's right to privacy. In many instances, the customer does not
know or understand the extent of the company's infiltration into his life.
The company uses this information to reach the customer with targeted
advertising, but the process of targeting can be seen as the invasion of
privacy and personal freedom.
Breaches of Confidentiality
Another significant ethical consideration involved in market research
involves breaches of confidentiality. Companies regularly share information
about customers with partners and affiliates, requiring the customer to opt
out of the sharing if he does not want to be involved. Some companies sell
information they have gathered on customers to outside companies.
Ethically, any unauthorized disclosure of customer information is
problematic.
Objectivity
Marketing and advertising have a significant impact on public perceptions.
Market researchers have an ethical obligation to conduct research
objectively, so data is available that allows for the development of a
nuanced picture. Researchers who allow their own prejudices to skew their
work tend to contribute to the perpetuation of stereotypes in advertising,
the development of destructive social constructs and the enabling of unjust
profiting from poverty. For example, a market researcher with a one-
dimensional view of minorities could do a fair amount of harm if allowed to
shape an advertising campaign based on skewed data collection.
20
INTRODUCTION
1.7 Types of Researches
Marketing research techniques come in many forms, including:
• Ad Tracking — periodic or continuous in-market research to monitor a

brand’s performance using measures such as brand awareness, brand
preference, and product usage. (Young, 2005)
• Advertising Research — used to predict copy testing or track the efficacy

of advertisements for any medium, measured by the ad’s ability to get
attention (measured with attention tracking), communicate the message,
build the brand’s image, and motivate the consumer to purchase the
product or service. (Young, 2005)
• Brand Equity Research — how favorably do consumers view the brand?
• Brand Association Research — what do consumers associate with the

brand?
• Brand Attributes Research — what are the key traits that describe the
brand promise?
• Brand Name Testing — what do consumers feel about the names of the
products?
• Commercial Eye Tracking Research — examine advertisements, package

designs, websites, etc., by analyzing visual behavior of the consumer
• Concept Testing — to test the acceptance of a concept by target

consumers
• Buyer Decision Making Process Research — to determine what motivates

people to buy and what decision making process they used over the last
decade. Neuro marketing emerged from the convergence of neuroscience
and marketing, aiming to understand the consumer decision making
process.
• Copy Testing — predicts in-market performance of an ad before it airs by

analyzing audience levels of attention, brand linkage, motivation,
21
INTRODUCTION
entertainment, and communication, as well as breaking down the ad’s

flow of attention and flow of emotion. (Young, p 213)
• Customer Satisfaction Research — quantitative or qualitative studies that

yields an understanding of a customer's satisfaction with a transaction
• Demand Estimation — to determine the approximate level of demand for

the product
• Distribution Channel Audits — to assess distributors’ and retailers’

attitudes toward a product, brand, or company
• Internet Strategic Intelligence — searching for customer opinions in the

Internet: chats, forums, web pages, blogs... where people express freely
about their experiences with products, becoming strong opinion formers.
• Marketing Effectiveness and Analytics — building models and measuring

results to determine the effectiveness of individual marketing activities.
• Mystery Consumer or Mystery Shopping — an employee or

representative of the market research firm anonymously contacts a
salesperson and indicates he or she is shopping for a product. The
shopper then records the entire experience. This method is often used
for quality control or for researching competitors' products.
• Positioning Research — how does the target market see the brand
relative to competitors? What does the brand stand for?
• Price Elasticity Testing — to determine how sensitive customers are to

price changes
• Sales Forecasting — to determine the expected level of sales given the

level of demand, with respect to other factors like advertising
expenditure, sales promotion, etc.
• Segmentation Research — to determine the demographic, psychographic

and behavioral characteristics of potential buyers
22
INTRODUCTION
• Store Audit — to measure the sales of a product or product line at a

statistically selected store sample in order to determine the market
share, or to determine whether a retail store provides adequate service
• Test Marketing — a small-scale product launch used to determine the

likely acceptance of the product when it is introduced into a wider market
• Viral Marketing Research — refers to marketing research designed to

estimate the probability that specific communications will be transmitted
throughout an individual's social network. Estimates of social networking
potential (SNP) are combined with estimates of selling effectiveness to
estimate ROI on specific combinations of messages and media.
All of these forms of marketing research can be classified as either problem

identification research or as problem solving research.
There are two main sources of data — primary and secondary. Primary
research is conducted from scratch. It is original and collected to solve the
problem in hand. Secondary research already exists since it has been
collected for other purposes. It is conducted on data published previously
and usually by someone else. Secondary research costs far less than
primary research, but seldom comes in a form that exactly meets the
needs of the researcher.
A similar distinction exists between exploratory research and conclusive

research. Exploratory research provides insights into and comprehension of
an issue or situation. It should draw definitive conclusions only with
extreme caution. Conclusive research draws conclusions, the results of the
study can be generalized to the whole population.
Exploratory research is conducted to explore a problem to get some basic

idea about the solution at the preliminary stages of research. It may serve
as the input to conclusive research. Exploratory research information is
collected by focus group interviews, reviewing literature or books,
discussing with experts, etc. This is unstructured and qualitative in nature.
If a secondary source of data is unable to serve the purpose, a
convenience sample of small size can be collected. Conclusive research is
conducted to draw some conclusion about the problem. It is essentially,
structured and quantitative research, and the output of this research is the
input to management information systems (MIS).
23
INTRODUCTION
Exploratory research is also conducted to simplify the findings of the

conclusive or descriptive research, if the findings are very hard to interpret
for the marketing managers.
Marketing Research Methods
Methodologically, marketing research uses the following types of research

designs:
Based on questioning
• Qualitative marketing research — generally used for exploratory

purposes — small number of respondents — not generalizable to the
whole population — statistical significance and confidence not calculated
— examples include focus groups, in-depth interviews and projective
techniques
• Quantitative marketing research — generally used to draw

conclusions — tests a specific hypothesis – uses random sampling
techniques so as to infer from the sample to the population — involves a
large number of respondents — examples include surveys and
questionnaires. Techniques include choice modeling, maximum
difference, preference scaling and covariance analysis.
Based on observations
• Ethnographic studies — by nature qualitative, the researcher observes

social phenomena in their natural setting — observations can occur
cross-sectionally (observations made at one time) or longitudinally
(observations occur over several time-periods) – examples include
product-use analysis and computer cookie traces.
• Experimental techniques — by nature quantitative, the researcher

creates a quasi-artificial environment to try to control spurious factors,
then manipulates at least one of the variables — examples include
purchase laboratories and test markets Researchers often use more than
one research design. They may start with secondary research to get
background information, then conduct a focus group (qualitative research
design) to explore the issues. Finally, they might do a full nation-wide
24
INTRODUCTION
survey (quantitative research design) in order to devise specific

recommendations for the client.
Business to Business Market Research
Business to Business (B2B) Research is inevitably more complicated than

consumer research. The researchers need to know what type of multi-
faceted approach will answer the objectives, since seldom is it possible to
find the answers using just one method. Finding the right respondents is
crucial in B2B research since they are often busy, and may not want to
participate. Encouraging them to “open up” is yet another skill required of
the B2B researcher. Last, but not least, most business research leads to
strategic decisions and this means that the business researcher must have
expertise in developing strategies that are strongly rooted in the research
findings and acceptable to the client.
There are four key factors that make B2B market research special
and different to consumer markets:
• The decision making unit is far more complex in B2B markets than in
consumer markets
• B2B products and their applications are more complex than consumer
products
• B2B marketers address a much smaller number of customers who are

very much larger in their consumption of products than is the case in
consumer markets.
• Personal relationships are of critical importance in B2B markets
Marketing Research in Small Businesses and Non-profit

Organizations
Marketing research does not only occur in huge corporations with many
employees and a large budget. Marketing information can be derived by
observing the environment of their location and the competition’s location.
Small-scale surveys and focus groups are low cost ways to gather
information from potential and existing customers. Most secondary data
25
INTRODUCTION
(statistics, demographics, etc.) is available to the public in libraries or on

the Internet and can be easily accessed by a small business owner.
Below are some steps that could be done by SME (Small Medium
Enterprise) to analyze the market:
1. Obtain secondary and or primary data (if necessary);
2. Analyze macro and micro economic data (e.g., supply and demand,
GDP, price change, economic growth, sales by sector/industries, interest
rate, number of investment/ divestment, I/O, CPI, social analysis, etc.);
3. Implement the marketing mix concept, which consists of place, price,

product, promotion, people, process, physical evidence and (also
political and social situation to analyze the global market situation);
4. Analyze market trends, growth, market size, market share, market

competition (e.g., SWOT analysis, B/C analysis, channel mapping
identities of key channels, drivers of customers’ loyalty and satisfaction,
brand perception, satisfaction levels, current competitor-channel
relationship analysis, etc.)
5. Determine market segment, market target, market forecast and market

position;
6. Formulating alternative market strategies and also investigating the

possibility of partnership/ collaboration (e.g., profiling and SWOT
analysis of potential partners, evaluating business partnership.)
7. Combine those analysis with the SME's business plan/business model

analysis (e.g., Business description, business process, business strategy,
revenue model, business expansion, return of investment, financial
analysis (company history, financial assumption, cost/benefit analysis,
projected profit and loss, cash flow, balance sheet and business ratio,
etc.).
Note as important: Overall analysis should be based on 6W+1H

(What, When, Where, Which, Who, Why and How) question.
26
INTRODUCTION
International Marketing Research Plan
International marketing research follows the same path as the domestic

research, but there are a few more problems that may arise. Customers in
international markets may have very different customs, cultures and
expectations from the same company. In this case, marketing research
relies more on primary data rather than secondary information. Gathering
the primary data can be hindered by language, literacy and access to
technology. Basic cultural and market intelligence information will be
needed to maximize the research effectiveness. Some of the steps that
would help overcoming barriers include: (1) Collect secondary information
on the country under study from reliable international sources, e.g., WHO;
(2) Collect secondary information on the product/service under study from
available sources; (3) Collect secondary information on product
manufacturers and service providers under study in the relevant country;
(4) Collect secondary information on culture and common business
practices; (5) Ask questions to get better understanding of reasons behind
any recommendations for a specific methodology.
1.8 Summary
With the customers of today becoming more exacting, sophisticated,

quality and brand conscious,” marketing research” is gaining lot of
importance. In the past, customers generally interacted with sales and
marketing personnel who passed on the customer requirements to other
departments in the company and then in turn actions used to be taken.
However with all scenarios now rapidly changing with the business
environment and steep competition nationally and globally, the marketing
research has become modern.
The current scenario demands that the firm develops a proper information
system which will have a continuous flow of data and information into the
company from various sources.
To cope up with rapid changes in the environment, tastes of people and

changing fashions, fast and accurate data is required to facilitate the
decision making.
The market researcher has to continuously work on various data and

analysis to generate faster results (findings). It has become necessary to
27
INTRODUCTION
build marketing intelligence systems with internal sources and external

sources, which are backed up by software support and modern market
researchers and analysts.
In today’s environment where speed and accuracy are critical elements of

decision making, marketing research plays a pivotal role in the decision
making process.
1. The marketing manager makes tactical decisions based upon

_____________.
(a) Marketing research

(b) Market intelligence
(c) Internal information system
2. Consumer marketing research focuses on _____________.
(a) Behavior of consumer

(b) Future products of company
(c) Consumer needs
3. Which of the mention below is not a part of the fundamental DSS

Architecture?
(a) Database of interactions

(b) User
(c) Financial reports
4. Which component mentioned below is not a part of the market

intelligence system?
(a) Sales representative

(b) Distributor
(c) One time buyer
28
INTRODUCTION
5. The internal recording system is a part of the company’s

_____________.
(a) Marketing intelligence system
(b) Advertising programme
(c) Communications department
6. Advertising research is mainly concerned about _____________.
(a) Increasing sales

(b) Increasing brand value
(c) Tracking advertising attention
7. The type of the research made to get some basic idea on a problem
faced by the company is called _____________.
(a) Exploratory research

(b) Descriptive research
(c) Empirical research
Activities for the Student
1. One of the leading multinational toothpaste manufacturing company

realized the need for developing fresh feeling toothpaste for young
collegians. Refer the significance of marketing research and write your
points indicating need and importance covering six aspects.
2. Discuss the ad campaign research conducted on a newly launched

product.
29
INTRODUCTION
REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture - Part 1
30
MARKETING RESEARCH PROCESS
Chapter 2
Marketing Research Process
Objectives
• understand the meaning and significance of the “management dilemma.”

• understand how to define the decision problem?
• understand how to define the research problem?
• describe the research process.
• how to draft and evaluate the proposal.
Structure:
2.1 Introduction to the Marketing Research Process

2.2 Management Dilemma
2.3 Defining a Decision Problem
2.4 Defining a Research Problem
2.5 Hypothesis
2.6 Research Proposal
2.7 Marketing Research Process Steps
2.8 Summary
31
2.1 Introduction to the Marketing Research Process
The marketing research process is the systematic identification, collection,

analysis and distribution of information for the purpose of knowledge
development and decision making.
Green and Tull have defined Marketing research as:
“Marketing research is a systematic and objective search for and

analysis of, information relevant to the identification and resolution
of any problem in the field of marketing.”
Marketing research, thus, seeks to set about its task in a systematic

manner. This means that a detailed and carefully designed research plan is
developed in which each stage of the research is specified. Such a research
plan is only considered adequate if it specifies the research problem in a
precise manner, the information necessary to address the problem, the
methods to be employed in gathering the information and the analytical
techniques to be used to interpret it.
Marketing research revolves around:
• Prospective customers.
• Existing customers.
• Lost customers.
• Internal customers (Employees)
• Community
• Business environment
Marketing research is concerned with a variety of aspects of the market

like: Product, sales, consumer behavior, promotions, distribution, pricing,
packaging, and advertising. Today, market research also covers aspects
much beyond selling such as pre-purchase experience, customer
satisfaction, post-purchase satisfaction and usage as well as product
disposal and new product selection. Since the researcher cannot
investigate everything about the market and product, s/he must be
selective. The question remains that how the researcher should focus and
to what depth the issue must be investigated. The answer to this question
is the “marketing research brief”.
32
The brief must inform the researcher about particulars to be

incorporated in the research like:
• Purpose of research.
• Objectives stated in a clear, concise, attainable, measurable and
quantifiable way
• A resource allocation plan
• Time frame
• Budget and facilities
• Reporting format and period
2.2 Management Dilemma
Management dilemma can be defined as a problem or opportunity that

requires a marketing decision; a symptom of a marketing problem or an
early indication of a marketing opportunity.
In order to identify the Management Dilemma, three categories of the

symptomatic situations should be studied:
• Overt difficulties: Overt difficulties are those which are quite apparent
and which manifest by themselves. For example, Parle products is
witnessing a decline in sales of beverages although the summer season is
on.
• Latent difficulties: Latent difficulties are those which are not so

apparent but could grow into bigger problems if not attended. For
example, in a consumer world, often driven by new flavors, you
introduce for your home-made soft drinks in summer, will non-
introduction of new flavors impact your sale?
• Unnoticed opportunities: Unnoticed opportunities are those which

indicate substantial growth in some areas of the market which requires a
special attention of marketing. For example, looking well-groomed is so
essential for the corporate success, its opening up opportunity for the
male beauty care product range.
Once the researcher has identified the problem/opportunity, it must be

carefully examined in the interest of the organization. After this, the
researcher moves on to the next step of defining the research problem.
33
2.3 Defining a Decision Problem
The decision problem faced by the management must be translated into a

market research problem in the form of a question which obtains the
information required to make a decision, the decision problem is now
translated into a research problem.
For example, an FMCG company wishes to launch a superior product with

added features, anticipating competition to come up with a similar product-
This is a decision problem, therefore, the corresponding research problem
would be “Will the market accept a new product with a modified version”?
The objective of the research should be clearly defined, so as to address
the decision problem.
The researcher must be able to outline and convey all the possible
outcomes of the research to the decision maker in order to formulate
further plans and strategies.
Marketing research acts as a guide to the decision making management by

enabling it to take those decisions that have a high probability of
succeeding as regards to the attainment of its marketing objectives.
2.4 Defining a research problem
The first step in research is formulating a research problem. It is rightly

said that “A problem well defined is half solved” Poorly defined problems
could lead to confusion and do not allow researchers to develop a good
research design.
For a continuously falling sales volume, will your research problem be –

Find out why our sales is declining? OR Determine what will boost my sales
volume? In first, management will get reasons for their declining sale. In
the second, management will get ways in which they can boost their sale.
Research is basically a cycle. It starts with a problem and ends with a
solution to the problem. The problem statement is something around which
the entire research is revolving.
34
A research problem creates many questions for the researcher like:
• Who
• What
• When
• Where
• Why
Research originates from a need aroused. The researcher should think

on what caused the need to do the research (Problem identification). A
clear distinction between the PROBLEM and PURPOSE should be made.
PROBLEM: The researcher finding the solution for it.
PURPOSE: To solve the problem
The researcher should keep the following factors in mind while

framing the ‘Research Problem’ questions.
• Outline the general context area

• Highlight key concepts and ideas
• What are the underlying assumptions?
• Why the issues are so important?
• What needs to be solved?
• To identify the most significant issues for further exploration
The research problem should facilitate analytical thinking on part of the

researcher to achieve conclusive solutions to the stated problem.
Management Problems Corresponding Research Problems
Allocate advertising budget to media. Estimate awareness generated by each

media type.
Decide whether to keep office open on Evaluate use of services on Saturday
Saturdays. and determine on whether customers
will shift usage to weekdays.
Introduce a new health service. Design a concept test and assess

acceptance and use.
35
Change the marketing program to Design a test-marketing situation such

measure a product’s current image. that the effect of the new program can
be estimated.
2.5 Hypothesis
Definition: A hypothesis is a proposition which a researcher wants

to verify.
In common usage, a hypothesis refers to a provisional idea whose merit

requires evaluation.
By definition, a hypothesis is a proposed statement made on the basis of

limited evidence that can be proved or disproved and is used as a starting
point for further investigation.
Let’s break that down:
It is a proposed statement.
• A hypothesis is not a fact, and should not be argued as right or wrong

until it is tested and proven one way or the other.
It is made on the basis of limited (but hopefully some) evidence.
• Your hypothesis should be informed by as much knowledge as you have.

This should include data that you have gathered, any research you have
done, and the analysis of the current problems you have performed.
It can be proved or disproved.
• A hypothesis pretty much says, “By making this change, it will cause this
effect.” So, based on your results, you should be able to say “this is true”
or “this is false.”
It is used as a starting point for further investigation.
• The key word here is starting point. Your hypothesis should be formed
and agreed upon before you make any research designs, as it is what
36
guides the design of your test. It helps you focus on what elements to
change, how to change them, and which to leave alone.
How do I write a hypothesis?
The structure of your basic hypothesis follows a CHANGE: EFFECT

framework.
Changing ______________ into ______________
will ______________.
While this is a truly scientific and testable template, it is very open-ended.

Even though this hypothesis that, “Changing an English headline into a
Spanish headline will increase the click through rate,” is perfectly valid and
testable, if your visitors are English-speaking, it probably doesn’t make
much sense.
So now the question is …
How do I write a GOOD hypothesis?
We can’t just start plugging in nouns and verbs and conclude that we have
a good hypothesis. Your hypothesis needs to be backed by a strategy. And,
your strategy needs to be rooted in a solution to a problem.
So, a more complete version of the above template would be something

like this:
Changing What your analysis indicates is the problem into What Change you
think will solve the problem
will The effect will have on your key performance indicator.
For example, ‘Students with prior work experience earn higher grades’.
37
In order to have a good hypothesis, you don’t necessarily have to

follow this exact sentence structure, as long as it is centered on
three main things:
1. Presumed problem
2. Proposed solution
3. Anticipated result
1. Presumed problem
After you’ve completed your analysis and research, identify the problem
that you will address. While we need to be very clear about what we think
the problem is, you should leave it out of the hypothesis since it is harder
to prove or disprove. You may want to come up with both a problem
statement and a hypothesis.
For example:
Problem Statement: “The lead generation form is too long, causing

unnecessary friction.”
Hypothesis: “By changing the amount of form fields from 20 to 10,

we will increase number of leads.”
2. Proposed solution
When you are thinking about the solution you want to implement, you
need to think about the psychology of the customer. What psychological
impact is your proposed problem causing in the mind of the customer?
For example, if your proposed problem is “There is a lack of clarity in the
sign-up process,” the psychological impact may be that the user is
confused.
Now think about what solution is going to address the problem in the
customer’s mind. If they are confused, we need to explain something
better, or provide them with more information. For this example, we will
say our proposed solution is to “Add a progress bar to the sign-up process.”
This leads straight into the anticipated result.
38
3. Anticipated result
If we reduce the confusion in the visitor’s mind (psychological impact) by
adding the progress bar, what do we foresee to be the result? We are
anticipating that it would be more people completing the sign-up process.
Your proposed solution and your KPI need to be directly correlated.
Note: Some people will include the psychological impact in their

hypothesis. This is not necessarily wrong, but we do have to be careful
with assumptions. If we say that the effect will be “Reduced confusion and
therefore, increase in conversion rate,” we are assuming the reduced
confusion is what made the impact. While this may be correct, it is not
measurable and it is hard to prove or disprove.
To summarize, your hypothesis should follow a structure of: “If I change

this, it will have this effect,” but should always be informed by an analysis
of the problems and rooted in the solution you deemed appropriate.
Characteristics of a Good Hypothesis
1. A good hypothesis is based on a sound reasoning.

(a) The hypothesis is always based on previous research.
(b) The hypothesis must follow most likely outcome and not
exceptional outcome.
2. A good hypothesis provides a reasonable explanation for the predicted

outcome.
3. A good hypothesis clearly states the relationship between the defined

variables.
(a) Written in a simple and clear manner it is easier to test.
(b) It should not be vaguely expressed.
4. A good hypothesis defines variables in clearly measurable terms.

(a) Who are the participants?
(b) What will be different in the test?
5. A good hypothesis is testable in a reasonable amount of time.
6. A good hypothesis is self explanatory and corresponds with existing

knowledge.
39
7. It must be verifiable.
8. A good hypothesis must be formulated in simple and understanding

terms.
2.6 Research Proposal
The researcher after receiving the brief from the management sets out to
make a research proposal.
The major components to the research proposal are:

• Research Design
• Procedures
A Research brief basically helps a researcher to define the research

problem. The Researcher develops the proposal after giving careful
considerations to all the contents in the brief.
The procedures are divided into the major seven steps of a research
proposal which are discussed below. These steps are also popularly known
as steps of the Marketing Research Process.
A well-planned proposal will ensure you get the most out of your market
research activity.
10 Key Steps to Consider When Making a Research Proposal
Marketing research is vital in all businesses and it is important that a

proposal is written before any formal research activity takes place.
Businesses often find themselves in a challenging situation and need to
find reliable answers to key questions in order to make the right decisions.
The research proposal is a statement of intent and explains the purpose for
the research to take place. Below are 10 key points to consider when
structuring your proposal.
40
1. Title and keywords
The title of the proposed investigation should be clear, precise and

accurate. A short main title outlining the area of the research may be
followed by a secondary part of the title that includes more specific
information.
Keywords are normally required to identify the content of the proposal.
2. Aims and objectives
The primary aim of the proposal is to identify the purpose of the research
and the research questions/issues it attempts to address. You should
provide a sequence of statements (normally between two and five) that
gives an overview of what the research is trying to achieve.
3. Background analysis
Here, complete background analysis is covered to establish the existence of

the problem. This section needs to justify the proposal with a brief account
of the practical issues the research will address. It should attempt to
demonstrate the importance of the proposed investigation in relation to
specific problems, contexts etc.
4. Research hypothesis
This part should specify the exact questions to be investigated. This needs
to be precise and should take the form of hypotheses (CHANGE: EFFECT
format earlier explained). It should specify what indicators will be
measured in order to address the broad issues identified within the aims
and background sections.
5. Data collection
The data collection methods must be described succinctly. They should

include a description of the data collection process and the strategy to be
adopted (survey method or case study). If a survey method is used, then
you should mention the geographic regions or demographic to be covered.
Mention should be made of the sample frame and sampling technique
utilised. The sample number also needs to be determined and justified
41
based on confidence interval and confidence level (in simple terms, how
much variation is likely in your findings and numbers beyond which more
number of samples may not make much of a difference to your findings). A
useful tool to determine these is available at survey system.com (click on
the research aids sample calculator).
6. Research methodology
The research methodology section should explain the key reasons for
choosing the proposed methods. The research strategy and data collection
methods should be discussed and evaluated, in terms of their suitability
and their implications for the quality of the data to be collected.
This section may also discuss the need for depth and breadth of
information and the benefits of using qualitative or quantitative data, the
likely validity of the data collected, the probability of the respondents
providing honest responses and the reliability of the methods utilised.
Benefits should also be compared to all the possible alternative
approaches.
7. Schedule of activity
This is an important section as the proposed research should be conducted

within time and budgetary limits. The feasibility of the proposed research
should be considered in relation to the availability of resources. An
estimate needs to be provided in terms of total hours required for
completion of the project – designing the questionnaire, planning,
scheduling and conducting interviews, data analysis (qualitative/
quantitative), and writing up the report (first draft/final draft). A Gantt
chart may help to outline this plan.
8.Code of conduct
This section will articulate the way the researcher will comply with the
spirit and practice of research ethics and will conduct their activities within
the political/legal context within which the research will be conducted.
Factors to address may include: escalation matrix to handle issues
encountered, confidentiality and anonymity statements, undertaking
informed consent, authorization for access to people and/or data and data
security.
42
9. Research limitations
The researcher needs to acknowledge any limitations that may be inherent

in the research design and to the extent it may affect the accuracy of the
research findings. Examples could include: how far the findings can be
generalised to the whole demographic/situation, restrictions arising from
time and resources, and issues around objectivity.
10. Outcomes
The end-products likely to be produced as a result of the research activity

are described in this section. The outcomes are not similar to findings.
Examples would include: new practices, guidelines for good practice and
recommendations.
2.7 Marketing research process steps
Following are 6 core steps generally used in any marketing research:
Step 1 – Identify and define the problem

Step 2 – Generation of the hypothesis or a problem statement
Step 3 – Determination of the type of study and research process design
Step 4 – Design of the sample and data collection methods
Step 5 – Analysis of the data
Step 6 – Drawing the conclusions and making the recommendations
Step 1: Identify and define the problem
In a very real sense, problem formulation is the heart of the research

process. From the researcher’s point of view, problem formulation means
translating the management problem into a research problem.
This involves timely and clear communication between the manager and
researcher.
43
The Various researchable marketing problems with management

(management dilemmas) are as follows:
• Launching a new product or a service.

• Low awareness of the company products and services.
• The market is aware about the company products and services, but is
still not buying in the required manner.
• Worrying about the company’s image and reputation
• Problems related to distribution and many more.
The end result of problem formulation is a statement of the management

problem that is analytically meaningful and that often points the way to
alternative solutions.
Step 2: Generation of the hypothesis or a problem statement
Closely related to problem formulation is the development of a

working hypothesis, or an assertion about a state of nature. While
hypotheses are crucial for basic research because they tell the researcher
what to do, the concept of a hypothesis can also be useful in decisional
research to direct the development of the research problem statement.
Properties of good hypotheses include the following:
1. The hypothesis is a statement about the relationship between two or

more variables in a declarative statement form.
2. The hypothesis carries clear implications for testing the stated

relationship (i.e., variables must be measurable or potentially
measurable).
At this stage, it may be good to articulate certain essence regarding the

formulation of the research problem.
44
How to Formulate the Research Problem?
Problem formulation is much easier when specific components of the

research problem are defined:
(a) Specify the Research Objectives
Objectives guide the researcher in developing a good, useful research, and

they help the client evaluate the completed project. Objectives range from
the very general, such as profit Maximization, to the highly specific, such
as measuring market interest in a new product.
The researcher needs to take the initiative to develop a clear statement of

objectives. Each study should have a very limited and manageable set of
objectives that focus on the problem being solved. Two or three well
targeted objectives is preferable to many that are ill conceived.
Fewer the objectives, make it easier to keep track of the progress towards
these objectives, to ensure that each is properly addressed, and to
determine the best methodology. If there are too many objectives,
separate studies may be appropriate.
(b) The Environment or Context of the Problem
Consider the problem of deciding whether to introduce a new consumer

product. The marketing researcher must work closely with the client in
transforming the client’s problem into a workable research problem.
The researcher’s efforts should be oriented towards helping the manager

decide whether any investigation is justified based on the potential value of
the research findings versus their cost. The researcher must be aware of,
and assist in, the identification of objectives, courses of action, and
environmental variables, insofar as they affect the design of the research
investigation.
If the research is undertaken and if the resulting findings are to be utilized

(i.e., have an influence on the user’s decision making), the manager and
researcher must have a productive and trusting relationship that is based
on the researcher’s ability to perform and deliver the research as promised.
45
(c) The Nature of the Problem
Every research problem may be evaluated on a scale that ranges from very
simple to very complex. The degree of complexity depends on the number
of variables that influence the problem. Understanding the nature of the
problem helps a researcher ensure that the right problem is being
investigated, and that a marketing plan can be developed to solve the
problem. A thorough preliminary investigation using focus groups of
consumers, salespeople, managers, or others close to the problem may
produce the much needed insight.
(d) Alternative Course of Action
Specifies a behavioral sequence that occurs over time, such as the

adoption of a new package design, or the introduction of a new product.
Such a program of action becomes a commitment, made in the present, to
follow some behavioral patterns in the future.
It is usually desirable to generate as many alternatives as possible during

the problem formulation stage and state them in the form of research
hypotheses to be examined.
(e) The Consequences of Alternative Courses of Action
A set of consequences always relate to the courses of action and even to

the occurrence of events not under the control of the manager. One of the
manager’s primary jobs is to anticipate and communicate the possible
outcomes of various courses of action that may result from following the
research.
(f) Degrees of Uncertainty
Most marketing problems are characterized by a situation of uncertainty as

to which course of action is best. Years of experience may allow the
decision making manager to assign various “likelihoods of occurrence” to
the various possible outcomes of specific courses of action. A carefully
formulated problem and statement of research purpose is necessary for a
competent research. The statement of purpose involves a translation of the
decision maker’s problem into a research problem and the derivation of a
study design from this problem formulation. The research problem provides
46
relevant information concerning recognized (or newly generated)

alternative solutions to aid in this choice.
Step 3: Determination of the type of study and research process

design
A research design specifies the methods and procedures for acquiring the
information needed to structure and solve the research problem.
The overall operational design for a research project stipulates what

information is to be collected, from what sources, and by what procedures.
A good research design ensures that the information obtained is relevant to
the research problem, and that it is collected by objective and economical
procedures.
A research design might be described as a series of advance decisions that,

taken together, form a master plan or model for conducting a research
investigation.
Research designs vary depending on the type of study.
Generally, designs are associated with three types of studies, those that
focus on providing exploratory research, descriptive research and causal
research.
47
Types of Studies
1. Exploratory Studies
The major purposes of exploratory studies are for the identification of

problems, the precise formulation of problems (including the identification
of relevant variables), and the formulation of new alternative courses of
action.
An exploratory study is often the first in a series of projects. That is, an

exploratory study is often used as an introductory phase of a larger study,
and its results are used to bring focus to the larger study and to develop
specific techniques that will be used. Thus, flexibility is a key to designing
and conducting exploratory studies.
We can distinguish three separate tasks that are usually included in
exploratory studies and that are typically conducted in the sequence listed:
• A search of secondary information sources.
• Interviews with persons knowledgeable about the subject area.
• The examination of analogous situations – researching the result and its

impact by studying similar product class case studies or similar nature of
product or similar customer groups using similar nature/category of
products.
Search Secondary Sources
Secondary sources of information are the “literature” on the subject. It is

the rare research problem for which there is no relevant information to be
found by a relatively quick and inexpensive search of the literature.
Secondary information sources are not limited to external sources.
Searches should also be made of company records.
Interview Knowledgeable Persons
Having searched secondary sources, it is usually desirable to talk with

persons who are well informed in the area being investigated, including
company executives, experts, consumers and mavens, and users outside
the organization.
48
A widely used technique in exploratory is the focus group. In focus group

interviews, a group of knowledgeable people participate in a joint interview
that does not use a structured question-and-answer methodology. The
group, usually consisting of 8 to 12 people (but may have as few as 5 or as
many as 20), is purposely selected to include individuals who have a
common background, or similar buying or user experience, as related to
the problem being researched.
Focus groups are used primarily to identify and define problems, provide
background information and generate hypotheses. Focus groups typically
do not provide solutions for problems.
Areas of application include detecting trends in lifestyles, examining new

product or service concepts, generating ideas for improving established
products or services, developing creative concepts for advertising, and
determining effective means of marketing products or services.
If the sole purpose is to create ideas, then individual interviews may be a

better alternative than focus groups.
Examine Analogous Situations
It is also logical that a researcher will want to examine analogous

situations to determine what else can be learned about the nature of the
problem and its variables. Analogous situations include case histories and
simulations.
2. Descriptive Studies
Descriptive studies are the one based on which, final decisions by the
management is taken be it investment decision, product launch decision,
etc. Much research is concerned with describing market characteristics or
functions. For example, a market potential study may describe the number,
distribution and socio-economic characteristics of potential customers of a
product.
A market-share study finds the share of the market received by both the
company and its major competitors. A sales analysis study describes the
sales by territory, type of account, size or model of the product and the
like.
49
In marketing, descriptive studies are also made in the following

areas:
1. Product research
Identification and comparison of functional features and specifications of
competitive products
2. Promotion research
Description of the demographic characteristics of the audience being
reached by the current advertising program
3. Distribution research
Determining the number and location of retailers handling the company’s
products that are supplied by wholesalers versus those supplied by the
company’s distribution centers
4. Pricing research
Identifying competitors’ prices by geographic area, these examples of
descriptive research cover only a few of the possibilities. Descriptive
designs, often called Observational Designs by some researchers, provide
information on groups and phenomena that already exist; no new groups
are created.
5. Causal Research
Causal research deals with the question ‘why’. There are occasions when a
researcher wants to know why a change in one variable brings about a
change in another variable. If he is able to understand the causes of the
effects, then the ability to predict and control such events is increased. In
addition, the cause and effect have to be related. That is, there must be a
logical implication (or theoretical justification) to imply the specific causal
relation.
Marketing Research Design
This is the most crucial step of the entire market research process,
requiring a great deal of thinking and an expertise. Marketing Research
Design includes secondary information, analysis, qualitative research,
methodology selection, question measurement and scale selection,
questionnaire design, sample design and determination of data analysis to
be used.
50
Elements of the market research design in a nutshell:

• The questionnaire
• Measurement and scaling
• Statistical testing
• Survey
1. The Questionnaire: Every organisation that would like to perform

marketing research has many issues. To address all the issues in the
questionnaire is a difficult task.
Objectives of the Questionnaire Design Process:

• Determining the information needed
• Determining the survey methodology
• Framing the appropriate questions
• Deciding the questionnaire structure, sequence of questions and scales
of measurements
• Proofing and pretesting of the survey to check performance
• Execution of the survey
2. Measuring and scaling: While creating the survey questionnaire,

there are basic types of scale questions:—
• Nominal: When numbers are used to identify the objects, such as

daily walk-in customers then the number acts as a most significant ID.
• Ordinal: When numbers are used to indicate the relative position, but
not the difference of the magnitude of the relative position. For
example, rank the items by your priority from 1 to 4.
• Interval: When the rating scale is used and zero acts as an arbitrary.
For example,express your opinion about the quality of the product on
the scale of 1 to 5. As well as satisfaction scores, attitudes, etc. In this,
difference between the 2 data points are fixed.
• Ratio: This is the most useful scale of all. Examples of ratio scale are
market share, income ratios, age group ratio, etc.
3. Statistical testing: The sample size is the number of people that are
being surveyed. A sample is a portion of a total population. Sometimes,
the actual number of the total population may be known. At times,
51
when the total no. is not known but if it is more than the numbers being
surveyed, then infinite population will have to be selected. Most of the
times, a margin of error will have to be calculated for the percentage or
the proportion of the samples choosing a particular answer in the
survey.
Sometimes, however when the respondents are asked for a number –

such as the numbers of hours they are on the internet – then the mean
or average no. will have to be looked at and then calculation of the
margin of error done. To do this, a desired confidence level is required.
The sample size and population size as is done for calculating the margin
of error with proportional or percentage data will have to be known. But
the standard deviation for the dataset should also be known beforehand.
Standard Deviation, in simple terms, means what is a fluctuation from
the average score, which if minimal indicates higher probability of the
finding and vice versa.
4. Survey: The actual process of interviewing the sample from the

population and record the findings are known as a Survey Process –
process of doing a telephonic interview, face-to-face interview, focus
group discussion process and likewise. Making a comprehensive list of
survey questions is a very complex task.
Step 4: Design of the Sample and Data Collection Methods
The sampling frame is the pool from which the sample is chosen. In
designing the research study, one should also consider the potential errors.
Typically there are two sources of errors:
(i) Random sampling error

(ii) Non-sampling error
Sampling errors are those which occur due to faulty sample size (number
of contacts less than required or more than required to get findings within
a specific confidence level). Non-sampling errors are those caused by faulty
coding, untruthful responses, respondents fatigue, etc. There is always a
trade-off between the sample size and cost. The larger is sample size,
smaller is the sampling error but the cost is higher. Over a period of time,
smaller errors can be justified by extra costs.
52
When we talk about a larger sample – larger size of sample may reduce
the sampling error. It actually may increase the total error. There are two
reasons for this effect:
a. A larger sample may reduce the ability to follow up on non-responses.
b. Even if there are sufficient no. of interviewers for follow ups, a larger
no. of interviewers may result into less uniform interviews.
Design of the sample involves three major decisions:
(a) Sampling unit

(b) Sample size
(c) Sampling procedure
a. Sampling unit: Target population that would be sampled decides the

unit of sampling.
It should be able to answer: Who is to be surveyed?
Thereafter, the sampling frame is developed so that everyone in the target

population holds an equal chance of getting selected.
b. Sample size: Number of successful responses necessary to get the

analysis and its outcome within specific confidence level. A large sample
size gives more reliable results than a small sample.
This particular decision requires an answer to the question: How many

persons are to be surveyed?
However, it isn’t necessary to sample the entire target population. Even a

substantial portion of the target is good enough to achieve reliable results.
c. Sampling procedure: To obtain a representative sample, a probability

sample of the population may be drawn.
This decision requires an answer to the question ‘How should the

respondent be chosen?’
53
There are two types of sampling procedure adopted – (a) Probability

sampling and (b) Non-probability sampling. Probability sampling methods
are Random sampling, Stratified sampling, etc. In one of the subsequent
chapters, same is covered. Alternatively, if the element of cost and time is
a problem, then the non-probability sampling methodology may also be
tried out.
There is an opinion that non-probability samples are helpful and useful in

many circumstances. It does not provide an allowance for measuring
sampling errors.
Typically, data collection in marketing research begins with field testing and
interviewing the small portion of sample with a final questionnaire, to
understand the efficacy. Major time of the marketing research project is
consumed in the data collection process.
The various data collection methods followed are:
• Computer assisted telephonic interviews (CATI)

• Internet surveys
• Interactive voice response
• Mail surveys
• Mall intercepts
• Traditional telephonic interviews
• Internet panels
• Mail panels
• In-home panels
54
Step 5: Analysis of the Data
A survey data analysis depends upon how the survey questions are
framed. The Quality of the analysis also depends upon the complexity and
quality of the data.
Typical types of Data Analysis are:
(a) Simple frequency distributions

(b) Multiple regressions
(c) Cluster analysis
(d) Factor analysis
(e) Multidimensional scaling
(f) Structural equation modeling
(g) Data mining
The new marketing researcher often thinks that decisions regarding the
techniques of analysis can be left until data is collected, however, it is not
so.
Before commencing the interviews, following checklist needs to be

applied:
• Do we know how each and every question is going to be analyzed (i.e.,

which univariate, bivariate descriptive statistics, terms of association,
parametric or non parametric hypothesis tests to be used)?
• Does the researcher have a sound knowledge of using those techniques?
• Have the questions been scaled correctly for the chosen stat technique
(e.g., t-test cannot be used on data which is only ranked)?
All the related issues are required to be settled before hand, that is before
spending time and money on field work.
55
Type of Analysis Description Application
Multiple Regression It describes the Determines all key

relationship of each drivers of customer
variable in a set (and the satisfaction with your
set of variable as a service.
whole) to a single
variable.
Cluster analysis Identifies homogeneous Identifies market
subgroups within a much segments, groups of
larger group of customers, potential
respondents. customers who make
similar decisions and
perceives the product
and service in the
identical ways.
Factor analysis Reduces a complicated Uncovers the basic

data into its more basic dimensions of employee
structural essentials. use to evaluate how
satisfied they are working
within the organization.
Multidimensional scaling This extracts multiple This helps to visualize
dimensions from a how customers mentally
variable set and positions format your competitors
concepts within that products in your product
space. or service category. How
they compare your brand
with others.
Structural equation This tests how well This helps to describe the
modeling observed data confirms customer loyalty is built
an entire theory model. over a period for a
particular product.
Data mining Detects useful and It increases revenue by
sometimes unexpected cross selling the product.
patterns among the
variables in datasets.
56
Step 6: Drawing the Conclusions and Making the Recommendations
It is clearly understood that the end result of the marketing research

process is in drawing conclusions and recommendations by the
researchers. With respect to the marketing planning function, marketing
research helps to identify the potential threats, opportunities, generates
alternative courses of actions, provides information which enables
marketing managers to evaluate those alternatives and advises on
implementations.
Marketing research reports the information in comprehensive tables and

statistical data accompanied by brief comments. It is advisable that the
report must be a clear interpretation of the entire research work. Without
proper interpretation, the entire exercise is wasteful. Only when the
conclusions are drawn based on the raw data, then the information turns
out to be useful.
The Researcher must understand that it is this information that

management needs to reduce risks, understand the uncertainties of the
business and identify opportunities.
The researcher should decide what the marketing manager’s priorities are
with respect to study the following:
• Must know type

• Should know type
• Could know type
This means that the research report should contain information that is
absolutely essential in order to make certain marketing decisions (Must
know type). Information that would be useful to have if the budget and
time permits (Should know type). The information about which manager
would be nice to have, but is not directly related to the decision making
(Could know type).
57
2.8 Summary
Marketing is becoming a challenging task day by day due to the dynamics

of the business environment. It is becoming more and more difficult for
marketing managers to provide right products or right services at the right
time, place with a right price due to an extremely competitive
environment, globalization, and internal forces within the organization.
Marketing research provides a ray of certainty in such environment. It

plays a key role in providing accurate information in a structured manner
to a marketing manager to make necessary decisions.
In this chapter, we understood:
Management dilemma can be defined as a problem or an opportunity that

requires a marketing decision; a symptom of a marketing problem or an
early indication of a marketing opportunity.
The decision problem faced by the management must be translated into a

market research problem in the form of a question which obtains the
information required to make a decision, the decision problem is now
translated into a research problem.
Research originates from a need aroused. The researcher should think on

what caused the need to do the research (Problem identification). A clear
distinction between the PROBLEM and PURPOSE should be made.
PROBLEM: The researcher finding the solution for it.
PURPOSE: To solve the problem.
A hypothesis is a proposition which a researcher wants to verify.
In common usage, a hypothesis refers to a provisional idea whose merit

requires evaluation. For a proper evaluation, the framer of a hypothesis
needs to define specifics in operational terms.
A hypothesis requires more work by the researcher in order to either

confirm or disprove it. In due course, a confirmed hypothesis may become
part of a theory or occasionally may grow to become a theory itself.
58
The researcher after receiving the brief from the management sets out to
make a research proposal.
The major components to the research proposal are:
• Research Design
• Procedures
A Research brief basically helps a researcher to define the research

problem. The Researcher develops the proposal after giving careful
considerations to all the contents in the brief.
The procedures are divided into the major seven steps of a research
proposal which are discussed below. These steps are also popularly known
as steps of the Marketing Research Process.
Major steps of marketing research process:
1. Identifying and defining the problem

2. Generation of the hypothesis
3. Determination of the type of study and research process design
4. Design of the sample and data collection methods
5. Analysis of the data
6. Drawing the conclusions and making the recommendations
59
2.9 Self assessment questions
1. Marketing research revolves around _____________.
(a) Existing customers

(b) Future customers
(c) Marketing management
(d) All of them.
2. One of the following is not a characteristic of Hypothesis

_____________.
(a) Sound reasoning

(b) Management dilemma
(c) Provides a reasonable explanation for the predicted outcome
(d) Based on previous research
3. One of the following does not constitute sample design _____________.
(a) Sampling unit

(b) Sample size
(c) Random sample error
(d) Sampling procedure
4. Which option of the following is a secondary data source?
(a) Mall intercept interview

(b) Mail interview
(c) Telephone directory
(d) Scheduled interview
5. One of the following is not a part of the research proposal

_____________.
(a) Research design
(b) Research brief
(c) Research procedure
(d) Analysis method
60
6. The researcher receives the directions from the management through

_____________.
(a) Research proposal
(b) Research brief
(c) Previous data
(d) Competition information
7. Which of the following analysis method is used to assess the customer

service satisfaction?
(a) Multiple regression
(b) Factor analysis
(c) Cluster analysis
(d) Data mining
8. Which of the following information on priority is to be incorporated in

marketing research means concluding the report?
(a) Must know type

(b) Could know type
(c) Should know type
(d) None of these
Activities for the Students
1. Prepare a research proposal for conducting customer satisfaction survey

across Mumbai among FLIPKART ONLINE CONSUMERS.
2. Prepare an exploratory research questionnaire to launch ADIDAS SHOES

in rural areas.
61
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
62
VARIOUS SOURCES OF MARKET INFORMATION
Chapter 3
Various Sources Of Market Information
Objectives
• The methods of collecting market information.
• The ethics in collecting market information.
• The primary data: qualitative, quantitative, observation survey research

methods.
• The secondary data: meaning, usage, advantages and limitations,

internal and external sources of data.
Structure:
3.1 Introduction to Various Sources of Information
3.2 What is Data?
3.3 Primary Data
3.4 Secondary Data
3.5 Popular Methods of Data Collection
3.6 Steps in Data Collection
3.7 Ethics in Collecting the Marketing Information
3.8 Summary
63
3.1 Introduction To Various Sources Of Information
Sources of Marketing Information
There are five major sources for obtaining marketing information. In this
section we briefly describe some of these sources in more depth.
• Secondary Sources
• Respondents
• Natural Experiments
• Controlled Experiments
• Simulation
Secondary Sources of Information
Secondary information is information that has been collected by persons or

agencies for purposes other than the solution of the problem at hand.
If a furniture manufacturer, for example, needs information on the

potential market for furniture in various States, many State government
and industry sources of secondary information are available. The Central
government collects and publishes information on the numbers of families,
family formation, income, and the number and sales volume of retail
stores, all by geographic area. It also publishes special reports on the
furniture industry. Many state and local governments collect similar
information from their respective areas. The trade associations in the
furniture field collect and publish an extensive amount of information about
the industry. Trade journals are also a valuable source of secondary
information, as are special studies done by other advertising media.
Private research firms collect specialized marketing information on a

continuing basis and sell it to companies. These so-called syndicated
services, particularly those for packaged consumer goods, are becoming
more sophisticated as they are increasingly becoming based on scanner
data. Technology advancements are having a measurable impact on the
availability of secondary data.
64
Information from Respondents
A second major source of information is obtained from respondents. Asking

questions and observing behavior are primary means of obtaining
information whenever people’s actions are being investigated or predicted.
The term respondent literally means “one who responds or

answers”. Both verbal and behavioral responses should be
considered.
Information from Natural and Controlled Experiments
As described earlier, three types of evidence provide the bases for drawing
inferences about causal relationships. While both natural and controlled
experimental designs are capable of providing associative variation and
sequence of events, only controlled experiments can provide reasonably
conclusive evidence concerning the third type of evidence, the absence of
other possible producers.
A natural experiment is one in which the investigator intervenes only to the

extent required for measurement. That is, there is no manipulation of an
assumed causal variable.
The investigator merely looks at what has happened. As such, the natural
experiment is a form of ex post factor research. In this type of study, the
researcher approaches data collection as if a controlled experimental
design were used. The variable of interest has occurred in a natural
setting, and the researcher looks for respondents who have been exposed
to it and also, if a control group is desired, respondents who have not been
exposed.
Measurements can then be made on a dependent variable of interest. For

example, if the impact of a television commercial on attitudes were
desired, the investigator would conduct a survey of people after the
commercial was shown. Those who saw the commercial would constitute
the experimental group, and those who did not see it would be a type of
control group.
65
Differences in attitudes could be compared as a crude measure of impact.

Unfortunately, one can never be sure whether the obtained relationship is
causal or non-causal, since the attitudes may be affected by the presence
of other variables.
In controlled experiments, investigator intervention is required, beyond

that it is needed for measurement purposes.
Specifically, two kinds of intervention are required:
1. Manipulation of at least one assumed causal variable.
2. Random assignment of subjects to experimental and control groups.
The researcher conducts the experiment by assigning the subjects to an

experimental group where the causal variable is manipulated, or to a
control group where no manipulation of the causal variable occurs. The
researcher measures the dependent variable in both situations and then
tests for differences between the groups. Differences between the groups,
if present, are attributed to the manipulation variable.
Field experiments are increasingly being completed using online survey

instruments. For example, researchers often use the advanced branching
logic, randomization, question block presentation, question timing, and
java scripting capabilities of Qualtrics.com to conduct time and cost
effective field experiments.
Simulation
The expense and time involved in the personal interviews often associated
with field experimentation may preclude it as a source of information for a
particular operational situation. In such cases, it may be desirable to
construct a model of the operational situation and to experiment with it
instead of venturing into a real-world situation.
The manipulation of such models is called Simulation. Simulation can be

defined as a set of techniques for manipulating a model of some real world
process to find numerical solutions that represent the real process being
modeled.
66
Models that are environmentally rich (that is, that contain many complex
interactions and nonlinear relationships among the variables, probabilistic
components, time dependencies, etc.) are usually too difficult to solve by
standard analytical methods such as calculus or other mathematical
programming techniques.
Rather, the analyst views a simulation model as a limited imitation of the

process or system under study and attempts to run the system on a
computer to see what would happen if a particular policy were put into
effect.
Simulations may be used for research, instruction, decision-making, or

some combination of these applications. During the past 50 or more years,
simulations have been developed for such marketing decision making
applications as marketing systems, marketing-mix elements (new -
product, price advertising, and sales - force decisions), and interviewing
costs in marketing surveys.
All the marketing investigators can make the use of the information
from basically two different sources, i.e., internal and external.
Facts and figures are the resources with which the researcher acts.
Internal sources: Internal sources of information consists of company’s

various reports, files documents etc. The company’s sales information like
products, prices, territories, clients, etc.
External sources: All the other sources excluding the internal are
external sources. The supplementary methods of categorizing external data
are primary and secondary data collection methods.
There are many sources through which a huge amount of secondary data is
generated. Preservation of secondary data is a quite a tedious job. The
different sources for secondary data are general library research, released
market information, government published data and reports etc.
On the other hand, primary data is attained from surveys, or direct

approaches. The other methods for collecting primary data would include:
Panel research, observation, experimental research etc.
67
3.2 What is data?
Definition: Data may be roughly defined as the information which is

either qualitative, quantitative or in practical terms.
Data is nothing but a representation of the facts, concepts or instructions

in a formatted manner suitable for communication, interpretation or
processing by humans or automatic means.
It consists of the subject matter for the purpose of analysis. Standard

results or conclusions cannot be derived unless analysis of relevant data is
obtained.
The quality of the research is determined by:
1. Relevance of the data

2. Significance of the data
3. Sufficiency of the data
4. Reliability of the data
Immediately after the research problem is defined and research design is

developed, the researcher has to start working on data collection.
To begin with, the researcher has to decide what kind of data is required
for the research, based on that he or she chooses the appropriate method
for data collection.
Importance of the Data
The data is considered as one of the most valuable assets of any

organisation. Importance of the data is based on its perceived value to the
organisation. It also depends upon the time, efforts and money spent on
that to gather or create it.
Business organizations of today have realized the importance of the

security of the data, therefore, vast considerations are made while deciding
the handling and storing of the data. It is ensured that data is available
with chosen members of the organization. The decision making
management is mostly concerned about the availability and security of the
data.
68
Indeed, the data collection is a significant step in the research process; the
researcher tests the hypothesis against the data analysis to arrive at a
conclusion. The management makes the necessary decisions based on the
conclusions and recommendations made by the researcher. That is why
utmost care is required to be taken at the time of data collection with
regard to adequacy and accuracy.
In this web world with smartphones at the disposal of most individuals,

numerous data is collected. Few incidences of data leaks has compelled
government to intervene and develop rules regarding location of data
storage within the country or outside the country.
Constituents of the Data
Data can be Constituted in the Following Five Categories.
1. Facts: It is a measurement of the thing which actually exists monthly

sales numbers, industry sales and model-wise sales. It is to be tested
on the basis of its merit or substance. Fact also cannot be denied.
However, an opinion or a view about the fact may change from person
to person.
2. Knowledge: Knowledge becomes a prime basis for human behavior.

Therefore the actions vary from person to person under similar
circumstances. Knowledge is actually what people have and by making
the best use of it they can give results. For example, if a researcher
gets a guidance from an expert guide then the research is more
accurate and achieves faster results.
3. Views and opinions: These are based upon people’s perceptions,

experience, maturity and wisdom as all this results into giving a sound
judgment. Every individual has full freedom to form his/her opinion.
However, only rational, practical and intellectual opinions are considered

to be valuable as data. Emotional, irrational and impractical views or
opinions should be discarded.
4. Intentions: An intention is a reflection of the expected behavior; one

has to set his or her mind to it. Intentions provide valuable insights
about people’s minds and that is why they form one of the valuable
69
resources of the data collections. The researcher must gauge the

intentions of the respondent before making a judgment.
5. Motives: Motives are the internal forces which dominate the human
behavior and actions. Motives play a pivotal role in the psychological
analysis as compared to the intentions. For a researcher, it is important
to understand the motive of a respondent also.
However, data is needed to be collected from all these respective

categories.
Types of Data
Data can be broadly classified into two categories depending upon the
source:
(a) Primary Data

(b) Secondary Data
A researcher beforehand should run through for the secondary data before
going through the time and expenses of collecting the primary data, which
could have been collected for some other purpose but still can be used for
the particular immediate study. Secondary data could be obtained from the
firms internal records such as sales invoices, warranty cards, or from the
published data. The government census is a valuable source of secondary
data.
Secondary data has certain advantages of saving time and reducing the
data gathering costs. The disadvantages are that the data exactly
pertaining to the problem is not available. Therefore, verifying the
secondary data for accuracy becomes a critical problem.
Sometimes, the secondary data is republished by organizations from other

than the original source. There is a scope for errors and missing
explanations of such a data. One should be very sure about the genuine
information and original source of information in collecting the secondary
data.
70
Important Criteria for Evaluation of the Secondary Data
• Whether the data is relevant to the current research.
• How fresh is the data with respect to time and can be applied to the
current project time frame.
• In terms of accuracy and errors can the data be dependable and can it be
verified if required.
• Objectives of the data collection by the original source.
• Methodology used for data collection, analysis carried out and quality of
the data, sample size used, etc.
• Nature of the data, variables used, measurement units and relationships

defined.
3.3 Primary Data
As we discussed in the previous topic, the marketing researcher should

first try to explore secondary data to extract necessary information. In
several cases, the researcher may find that the data is inadequate or
unusable, and then the need for collecting fresh and first-hand data is
aroused.
In our day-to-day life, if we need to buy an unknown thing or something

which we intend to buy for the first time, we prefer to ask someone about
the experience or observations or we consult someone who has experience.
The same is applicable to the primary data collection.
Sources of the Primary Data
• Observations
• Retail audit records
• Consumer panels
• Internet
• Interviews
• Copies of the Questionnaires
71
Very often, secondary data is supplemented along with primary

data like:
• Demographics
• Lifestyle and psychological characteristics
• Attitudes and opinions
• Intentions
• Knowledge and awareness
• Behaviors
• Motivation
Basically, primary data can be obtained by either observation or

communication. Communication involves probing the respondents through
a questionnaire, either by interview or writing a feedback. Communication
is usually a faster and cheaper option as compared to the observations.
Observation is performed by recording in person or through an electronic

device. Observation is less versatile compared to the communication. Some
of the attributes of a person are complex for observation like attitudes,
intentions, awareness, knowledge, motivations, etc. Observation is more
time consuming as compared to communication, as Many a times the
observer has to wait till the event occurs.
Observations made through electronic devices are more accurate and

faster, and also they are cost effective.
Personal interviews have a typical problem of interviewer bias. Mail-in

Questionnaire do not have those. For example in personal interviews the
perception of the interviewer may affect the response. In primary data
collection, the researcher collects the data personally using the methods of
interviews and questionnaires.
Important point to be noted here is: The primary data is supposed

to be genuine data and unique to the researcher and the project
until published.
The primary data generated may be of the qualitative type (usually in form
of words) or quantitative type (in the form of numbers).
72
3.4 Secondary Data
Internal sources
Sales data: Organisations keep on accumulating information through day

to day operations. Orders received, supplied and invoices are recorded on a
day to day basis, Similarly records of the visit reports, goods return notes
etc., are maintained. Much of the above information is of significant use to
the marketing research.
Following type of informations can be fetched from the sales data:

(a) Territory wise sales
(b) Customer wise sales and types of customers.
(c) Prices and discount structures
(d) Average sales order by customer
(e) Geographical area wise sales
(f) Average sales by an individual salesperson
(g) Sales by product volume
This type of data is required for identifying the profitable products for the
organization and performing customers which can be treated as key
customers.
Financial data: An organization has huge financial data comprising of

purchase costs, production and operations cost, transportations cost,
marketing cost. This data is available by product and product line. Such
data is extremely valuable to the researcher in terms of finding out the
efficiency of operations and marketing, as it also helps as a benchmark to
the new product in line.
Transport data: Transport data maintained in companies focuses on cost

of transportation, profitable routes of transports, transport service
providers and their quotations/invoices, load calculations. Good quality
data available for the researcher can help to assess the organisational
needs and available resources. In turn this helps the management to
develop a cost effective system.
Storage data: Inventory management, goods returned records, stock

movement registers help to assess the overall efficiency. The Researcher
with the help of this data can identify the areas of extra costs as a burden
73
to the company and can suggest the potential cost savings by changing
systems.
These systems can be further refined so that profitability per unit product,
sales rate per unit product, hidden costs of service can be properly worked
which result in a cost effective efficient system for the organization.
External data: The external sources are sources which are outside the
company in a larger environment and they are not a part of the company’s
internal information. The collection of external data is more difficult and
complex since the wide variety of the data and huge quantity available, so
selection of the appropriate data is again a task. Companies often have
system by which certain regularly available external data is internalized
such as GDP figure, index of production, consumer price index and more.
Even certain competitive data are internalized so as to get them quickly.
External data can be classified as below:
(a) Government Publications: Government sources are rich data bases

for the researcher. Moreover, most of the data is easily available on the
Internet websites, libraries, etc., and are free of cost.
Some of the data providing important agencies are:
1. Central Statistical Organization: This organisation publishes the

national accounts statistics. It contains the estimate of the national
income for several years, growth rate and rate of major economical
activities.
The annual survey of industries published gives the details of total

employed workers, production materials used and manufacturer specific
information.
2. Ministry of Commerce and Industries: This Ministry provides the

information on the wholesale price index. These indices are related to
the various sectors like food grain, food, power, fuel, etc. It also
generates the price index numbers for the urban, non- manual
employees, industrial workers and contracted labourers.
74
3. Registrar General of India: This office generates the demographic

data. It includes the gender, age, occupational information data.
4. Director General of Commerce and Intelligence: This office

provides information about foreign trade of India, detailed figures of
import-export of commodities and other essential details of the foreign
trade.
5. Planning Commission: This provides the basic data of the Indian

economy.
6. Reserve Bank of India: RBI publishes currency and finance reports for
the government and banking sector. It also focuses on savings and
investments.
7. National Sample Survey: This activity is conducted by the ministry of

planning and it provides statistical data on social, economical,
demographical, agricultural and manufacturing industry.
8. Department of Economic Affairs: It conducts economic surveys and

also publishes information on consumption, income, expenditure,
investments, savings and foreign trades.
9. Labour Bureau: This office provides the information on skilled,

unskilled, and blue and white collared jobs.
10.State Statistical Abstract: This gives information on various types of

activities related to the states like occupation, education etc.
11.Others: Includes industry association, Registrar of Companies (ROC),

private statistical info compilation body like Centre of Monitoring Indian
Economy (CMIE) and more.
75
(b) Non-government Publications: These publications include the

following:
1. Various Chambers of Commerce.
2. Bombay Stock Exchange and National Stock Exchange.
3. Export Promotion Councils.
4. Press Media Associations.
5. Small Industries Development Board of India.
6. Indian Cotton Mills Association.
7. Confederation of Indian Industries.
(c) Syndicated Services: These services are provided by certain

specialized organizations which collect and collate market information on
various domains on a regular basis for the number of clients which are
subscribed to them. They are structured in a manner that they generate
the precise data required by their clients on a regular basis. For example,
Television viewing information, movement of certain consumer goods, and
effects of economic conditions on small businesses. current trends in
youth, etc. Syndicated services also provide household information in
terms of expenditure, electronic items, income, changing tastes, etc.
Syndicated services – Indian Marketing Research Bureau (IMRB),

Operations Research Group (ORG), etc.
The syndicated services are becoming more popular, since the demands for
such critical informations are increasing.
Syndicated services are capable of providing precise data at a good speed,

since they have a full-fledged trained staff and necessary machinery to
perform the operation. Syndicated services since they are full-time in the
business, can offer a lower unit cost and same quality for the survey.
76
(d) International agencies:
1. The International Labour Organization (ILO): It publishes data on

the total and active population, employment, unemployment, wages and
consumer prices internationally.
2. The Organization for Economic Cooperation and Development

(OECD): It publishes the data on foreign trade, industry, food,
transport, science and technology.
3. International Monetary Fund (IMF): It publishes reports on national

and international currency and exchange regulations.
4. World Bank (WB): Being an apex bank constitutionally designed to

support the developing economy on multiple fronts, it has rich amount
of data available. They publish different nature of reports, which offers
well compiled information on numerous topics – rich-poor divide,
population profile, working age population and more.
Apart from this, researchers can make use of the following sources:
Published sources: Books journals, periodicals, abstracts, directories,

research reports, conference papers, market reports, annual reports
magazines, internal records of the organizations.
Electronic resources: Online data-bases, CDs, DVDs, videos, broadcasts,

etc.
77
3.5 Popular methods of data collection
• Quantitative Research Method: The data collected by following a

structured and well controlled scientific research design can yield
numerical values which can be analyzed using statistical techniques.
Such analysis proves very relevant and even results derived from such a
small data can be applied to a larger sample.
• Qualitative Research Method: Many times the researcher has to

gather the descriptive information and which needs to be interpreted. If
the researcher is well trained in judging and interpreting the relevant
information, then this form of research can provide valuable information
to the management. However, it does not provide accuracy as same as
quantitative research.
• Survey Method: This technical method is widely practiced in marketing

research. Survey is field studies intended to secure different types of
information from the sample of respondents which are representatives of
a large group.
• Questionnaire: It is a set of questions which a surveyor uses to record

the information from the respondent in a structured manner. Information
collected may be of a quantitative or qualitative nature.
Different Types of Surveys
(A) Personal interviews

(B) Postal or via e-mail
(C) Telephonic survey
Each of these techniques has its own merits or demerits depending upon
the nature and scope of the project.
78
(A) Personal Interview
Advantages
• In a personal interview, the respondent is serious and provides mostly

accurate information.
• The response rate is good.
• It may be possible to do in-depth probing.
• Interviewer can decide the priority of questions and depth depending
upon responses.
• Interviewer can use recording equipment.
• Characteristics of the respondents like voice tones, expressions, etc., can
be assessed.
Disadvantages
• Setting up an interview is a skilled task.

• Time-consuming process
• Geographical limitations
• Expensive procedure
• Respondent bias – tendency to please or impress, results into false data,
hurrying or winding up may miss out on important data.
• Embarrassment is possible if questions are too personal
Types of Interviews
Structured
• Designed and structured schedule for the interviews.
• Well organized questions and pattern of answers is also predicted.
• Respondent may be irritated by giving oversimplified answers.
Semi-structured Interviews
The interviews which are focused by asking certain questions, but with the
scope for the respondents to express him or her at length.
79
Unstructured Interviews
This sometimes is called as In-depth interviews, wherein the interviewer

starts the interview with a general question and later allows the respondent
to express freely. The interviewer offers a free field to the respondent for
talking but tries to skillfully frame sub questions in a manner where the
required data can be captured. Probing is an effective technique to extract
the desired information.
For example: (a) Would you like to add on more to any specific point?
(b) Why do you say that?
(c) What is that which makes it interesting for you?
(B) Telephonic Interviews:
This is an alternative form of conducting an interview to the personal

interview or face to face interview.
Advantages
• Relatively cheaper method

• Quick
• Speed of data collection is higher
• Wider geographical coverage
• Spontaneous responses
• Can record the answers.
Disadvantages
• People are reluctant to talk over the phone for data purposes for a longer
time.
• Questionnaire has to be there with the interviewer.
• It may not be possible to connect all the respondents over a phone.
• Time is wasted in connecting a respondent working in a large
organization.
• Simple questions are required over the phone.
• The respondent has a little time to think.
• Good telephone etiquettes are required.
• Questions must be asked to the authority or a person who can really
contribute to the information.
80
Observations: Observation is one of the vital methods of collecting

the information. It is used to get the current and past information.
For example: Consumer behavior survey: One can observe the

consumers’ behavior in a shopping mall rather than asking every
individual, It is a rather easy method in a traffic of thousands of customers.
Secondary data may reflect the past behaviors and which can be compared
with the current data of observations.
A manufacturer may send expert observers to the electronic showroom to

identify the suitable area for a new product merchandize.
A manufacturer can also send observers to the store to see the movements
of particular products for which the decision is required to be taken for
inventory purposes.
Difficulties in Observations
1. Inadequacies of sensual organs of a researcher.
2. Effects of interaction between the observer and which is under

observation.
3. Interdependence of the observer to the thing under observation.
Limitations of Observations
a. Only current behavior can be observed and not the past.
b. Observation cannot pinpoint an individual’s attitude or opinion.
c. The observation method is very slow and time-consuming, when the

sample is very large then it may take a longer time.
Retail Audit: Retail Audit is a very common method of marketing research

after 1990. It is an important tool to develop a strong brand image.
Assessment of parameters like brand value, ethics, quality, feelings of the
customer and product identity are of interest in this particular study.
81
Key parameters considered while carrying out the retail audit:

• Availability of the product within the store.
• Type of the store (location, speciality,ownership)
• Products merchandised and brands cross tabbed with type
• Types of displays
• Customer demands
• Current market share
The above mentioned valuable data can be obtained from the retail audit,
which can be used for:
• Identifying new business opportunities
• Trend analyses
• Forecasting
• Competitor analyses
• Understanding changes in the distribution system
• Analyzing prices and sensitivity on demand
• Product portfolio analysis
Consumer Panel: Consumer panels are unique. They enable a researcher

examine the dynamic changes in the behaviors, perceptions and attitudes.
Consumer panels are also expensive, and they produce excessive unused
data.
Benefits
The effect of special offers can be measured.
For example: Sample of families can be interviewed for the purchase of

the beverages purchased over several weeks to get the idea about their
purchasing habits and develop purchase patterns.
Based on that, a special deal can be worked out for them and offered. This
exercise is again carried out after the offer is made to see the effect of the
offer. In this manner, large sampling can be minimized and efforts, time
costs are reduced. The Researcher gets patterns of short-term and long-
term effects of the offer.
Similarly, a panel of a consumer family can be set up comprising of young

children and a purchase pattern of habits and trends can be studied. This
82
data can be compiled over many panels to establish a trend and pattern of
purchases in the Toys segment.
Experiments: The Experimental methodology is utilized as a fundamental

technique for a scientific research. However, experimental methodology is
widely used in marketing research for the purpose of test marketing
research.
This method is also widely used in product launches to determine the likely
acceptance of a new product, test samples given in malls, automotive test
ride of a new vehicle, sample of a new detergent received at the house for
test, fall in this category.
3.6 Steps In Data Collection
The purpose of the data collection is to obtain the information for creating
records which help in making decisions on important issues.
1. Designing the Questionnaire
Questionnaires: Questionnaire is a popular means of data collection, but

they are complex to design and often many expert opinions from
marketing are considered before designing it.
Advantages
• It can be used as one’s own method for data collection or the basis for an
interview.
• It can be e-mailed or posted.
• It can cover a large number of people.
• It has a wide geographical coverage.
• It is cost-effective.
• Respondent is not pressed hard for information.
• No bias for the interviewer.
83
Disadvantages
• Complexity while designing it.

• Low response rate (although follow-up may help).
• Considerable time delay because of availability of the respondents.
• Several reminders and follow-up for obtaining the questionnaires.
• Assuming literacy and language problems do not exist.
• Not sure whether exact respondent has completed filling it.
• May not be possible for providing assistance at the time of filling up the
questionnaires.
• Large problem of incomplete questionnaires.
• Replies may not be serious.
Salient Aspect of ‘Questions’ Development
• Questions should be short, simple and pinpointed.
• Confusing language or phrases must be avoided.
• Researcher must ask only those questions which a respondent can

definitely answer and is relevant to the project.
• Hypothetical questions must be avoided (For example: how many guest

you had in the last one year?).
• Questions which push the opinions must be avoided (For example: “Do
you consider that Cadbury is the best chocolate in the world”?).
• Imprecise terms like generally, normally, usually must be avoided and

time precision must be projected in the question like (For example: at
least once a month or a week).
• Each question should be addressed to a single issue (For example: Do

you take your annual holidays in Goa?), Here the question should be
asked in 2 discrete stages like:
(a) Do you take your annual holiday?

(b) Do you prefer Goa as a destination?
84
• Avoid using negative questions (For example: Is it not true that you took
your family out for a dinner last week?).
❖ State units and range when asking income-related questions.
❖ What was your income last year? (1 to 2L, 3 to 5L 6 to 8l). Do not

expect a very high degree of accuracy in such questions.
Types of questions
a. Closed questions: A question when asked the possible answer lies

between yes/no is called as a Closed Ended Question. These types of
questions are asked when factual information is required to be obtained.
• Sex: Male/Female
• Do you like watching cricket: yes/no
• Do you like Shahrukh Khan: yes/no
Sometimes, there is a third category of answers for these types of

questions: Do not know
• Would you like to go by bus: yes/no/ do not know
• Do you think Aamir Khan’s next movie will be a super hit: yes/no/ do
not know
b. Attitude questions: Frequently asked questions are asked to find out

the respondents opinions or attitudes to a given situation.
A Likert scale provides a battery of attitude statement, and then the

respondent chooses how much they agree on a scale.
For example: My experience on Kingfisher airlines from India to Dubai.
❖ Food was
Excellent good ordinary not okay
❖ Rate the Service of the airline staff (7 – as the best and 0 – as worst)
0, 1, 2, 3, 4, 5, 6, 7 – Please circle your choice.
85
❖ My experience by Kingfisher in total delivered value for money
Strongly agree Agree Disagree Strongly disagree
A semantic differential scale attempts to see how strongly an attitude is

held by the respondent.
For summary and analysis purposes, score is applied thus qualifying the
various degrees of opinions expressed. Within limitations, a semantic
differential can provide a useful way of measuring and summarizing the
subjective opinions.
Other types of questions which describe the opinions as:
• Which two words best describe…

• Which one of the following statement best describes…
• How much do you agree with the following statement…
c. Open questions: Open-ended questions focus on getting an

elaborative reply describing the information in answer.
For example: According to you what are the essential skills of a sales
manager?
Open questions are inserted at the end of the major sections, asking the
respondent to elaborate in his own words. Sometimes it may be possible
that the respondent provides additional valuable information. The main
problem of open questions is to summarize them for drawing conclusions
as different respondents express themselves in a much different manner.
d. Questionnaire testing: Questionnaire design is a complex process as

it involves many rewritings. A refinement and rethinking goes on a
regular basis. The data collected by the researcher itself, if it is not
appropriate then the good analysis also won’t help.
To understand if the data received through the questionnaire is

appropriate, the researcher must make a pilot survey and analyze the
same. This is a small-scale trial before the mainstream operation to test
the questions and answers of the respondents so that the amendments can
86
be made in the questionnaire. The results can also be used for coding and
analytical procedure later.
e. Completeness of questionnaire: The Researcher must ensure that

the respondent has completed the questionnaire in all respects.
Immediate checking is required after receiving the questionnaire
because delay in checking will again make it difficult to contact the
respondent to get the clarification.
2. Pre-collection activity
Prior to any data collection, the pre-collection activity is a crucial part in
the process. It involves checking of questions in questionnaires, structure,
verifying the sample and method of collection, etc. This is required to
eliminate the field problems beforehand.
3. Data Collection
After the pre-collection activity is completed, data collectors set out to
collect the data by hitting on to the targeted sample by means of
interviews or other suitable methods to gather primary data.
4. Present the findings
Once the data is collected from the field, it is accumulated back in the
office.
a. After receiving the data, it is segregated to the requirement of the

analyst. If any information is missing, it is communicated back to the
field personnel to get the desired information.
b. The analyst collates the data and makes it ready for applying
statistical tools of analysis.
c. Statistical tools are then applied to obtain the findings.
d. Findings are converted into the report and suggestions are presented
to the management.
87
3.7 Ethics In Collecting The Marketing Information
An Unethical approach towards data collection definitely leads to the wrong

predictions.
• If the marketing research group misrepresents itself to the focus group,

then the targeted sample will not respond honestly and this will greatly
affect the research.
• If the target group for survey is not identified properly, then it will not
give the desired data.
• If the sample is not interviewed to the requirement of the questionnaire,

the entire exercise remains incomplete.
• Most importantly, a mutual trust relation between the researcher and the
targeted sample is necessary for the effective contribution and
responsibility of the information given.
• The Surveyor must ensure the protocol of confidentiality of information

and should be able to give confidence to the respondent that the
information strictly will only be used for research purposes.
• The Surveyor must honor time and value his commitments to the
respondent. The Surveyor must thank the respondent dutifully in person,
or by way of a company letter for his time spent and information given.
88
3.8 Summary
Every business requires market information to understand the customer

and market.
Marketing investigators usually make use of two types of major information

sources: (a) Internal source (b) External source. Facts and figures are the
sources with which the researcher can act.
Data is nothing but the information in quantitative or qualitative form. The

Researcher can obtain the data in two forms:
(i) Primary data

(ii) Secondary data
Primary data is attained from surveys, observations, interviews,

observations, experiments, etc.
Secondary data can be attained from government published data, book

journals, abstracts, Reports, etc.
Questionnaire is a widely used tool in primary data collection. Careful

design and proper usage of the questionnaire can create valuable
information on the research project.
The researcher must follow ethical data collection methods in order to get
the desired results. Unethical practices followed like misrepresentation can
lead to a loss of confidence with the respondent and results in a loss of
valuable information.
89
1. Data is nothing but _____________.
(a) Source of information

(b) Information
(c) Memo
(d) Instructions
2. One of the following is not secondary data _____________.
(a) Sales record

(b) OCED report
(c) Questionnaire
(d) Directory
3. Which of the following belongs to Observation Method?

(a) Interview of a housewife.
(b) Watching customers in shopping malls
(c) Tracking customer invoices
(d) Sending a mail to the respondent.
4. Which of the following does not belong to the survey method?
(a) Test marketing

(b) e-mail questionnaire
(c) Telephonic interview
(d) Interview by appointment
5. Which of the following is an external source of information?
(a) Store inventory

(b) Ministry of commerce and industry
(c) Sales by territory
(d) Personal sales record
90
6. Consumer panel is a tool to assess _____________.
(a) Change in attitude

(b) Trend in forecasting
(c) Product portfolio analysis
(d) Customer demand
7. Retail audit plays a very important role in _____________.
(a) Assessment of the brand image

(b) Observing customer purchases
(c) Creating a sales data
(d) Helping merchandise
8. Financial data is a _____________.
(a) Primary data

(b) Secondary data
(c) External source of information
(d) Stock exchange information
91
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
92
MARKET RESEARCH TECHNIQUES
Chapter 4
Market Research Techniques
Objectives
This chapter enables students to understand various marketing research

techniques and their applications. Marketing research incorporates the
science of understanding human behavior in order to comprehend how
consumers choose their products.
Structure:
4.1 Techniques of Marketing Research

4.2 Test Marketing
4.3 Retail Store Audit
4.4 Consumer Panels
4.5 Opinion Polls
4.6 Cool Hunting
4.7 Segmentation Research
4.8 Sales Forecasting
4.9 Demand Estimation Research
4.10 Market Analysis
4.11 Summary
4.13 Annexure – Industry Example/s
93
4.1 Techniques Of Marketing Research
Marketing research helps to understand the human behavior and attributes

of human nature which help to understand the consumer decision of buying
any product. The main objective of marketing research is to analyze the
responses of the consumer towards the product in terms of various
features and what benefits the consumer perceives from the products.
Marketing organizations use various techniques.
4.2 Test Marketing
Test marketing executes the entire marketing plan for the new product on
a pilot level to get a fair idea about performance at every stage of the
marketing plan. The results of the pilot launch or test marketing can be
used to make judgments on national level marketing.
During test marketing, some basic questions need to be answered.
(A) What is the Geographical area for test marketing?

(B) What is required to test?
(C) How long to conduct test marketing?
(D) Criteria to decide the success of this technique.
A Company prefers to invest in a test marketing before heavily investing in

the nationwide marketing programme.
The Strategy which is tested beforehand always has a greater chance of

succeeding. In case of any surprise elements within the programme or
adverse feedbacks, the defects can be rectified before the launch is made
on a larger scale.
94
Frequently used marketing decision areas wherein Test Marketing is used:
a. Product and Services – New product/service is introduced for selling

in limited geographical area to gauge the response.
b. Distribution – Can cover new way to distribute, new areas, new

country for tapping opportunity.
c. Pricing – Experiment with pricing decision – price increase, package

pricing, bundle pricing and discount pricing, etc.
d. Promotion – Testing advertisement, promotion body copy and

promotion approach under consideration can be tested before its
nation-wide launch.
e. Customer Service – Any new customer service technology

introduction, new service area (Dominos Pizzas does test deliveries to
determine formal launch of service in any specific area. This is
because they have 30 mins delivery guarantee.) Today, new APP are
introduced to render customer services, which gets tested before
launch.
f. Customer Experience – Service industry needs such test marketing

to determine the impact on customer experience. Post ban on use of
plastic, one laundry service provider experimented with different
nature of covers to finally decide the one most suitable based on
customer experience inputs received.
Types of Test Marketing:
1. Consumer goods market testing

2. Business goods market testing
95
Consumer Goods Market Testing
There are basic four types of test marketing research done.
a. Sales Wave Research – Done with placing your product or competition

product or your product relatively with competition product to determine
what triggers favorable sales wave.
b. Simulates test marketing – Elaborate approach under which select

customers pre-disposition, brand awareness measured and later
exposed to multiple advertisements post which their buying behavior is
monitored and evaluated.
c. Controlled test marketing – Under controlled environment, selected

stores considered for test marketing. Specific marketing variable is
altered to check response. This alternations can be: (a) different
marketing variables at different stores or (b) different marketing
variables at same stores over specific period. This may involve receiving
feedback from select consumers.
d. Test markets – Kind of full live marketing at select city/cities during

same time period to gauge consumer/competition response.
Business Goods Market Testing
There are two different stages of business goods test marketing;
a. Alpha testing – Done within the company or confident, select brand

loyal consumer site. Here, product developer themselves may want to
study the product, issues, utlity, etc.
b. Beta testing – Customers are taken into confidence, product is used in

live working environment and people are deputed onsite to keep a close
eye on its working, problem monitoring, functionality, utility to the
client, etc. Based on this, future marketing decisions are taken.
96
Objectives of test marketing:
a. Study of the consumer traits

b. Frequency of repurchase
c. Assessment of the levels of creativity, innovativeness, customer
interest, customer initiative linked with marketing communication
d. Study of competitive responses and reactions
e. Study of marketing effectiveness
f. Assessment of the potential market share
g. Get an idea for product positioning
Important factors involved in test marketing:
1. Direct costs
a. Establishment of prototype products
b. Advertisement and commercials
c. Sampling
d. Trade allowances (distributors/agents)
2. Indirect costs
a. Additional efforts for penetration.
b. Additional sales cost and sales time.
c. Possibility of deviation in sales efforts from existing product sales.
3. When to test market
a. Time: When is the new product ready for a launch?
b. Speed: It is required to be tested at a good speed with extra efforts,

as by this activity the biggest threat is awakening the competitor.
Generally, the length of test marketing is anywhere between 2
months up to 2 years.
c. Place of test market: It must be ensured that the test marketing be

carried out in similar areas, where the nationwide strategic decision
to launch is made. This is done to get an idea about the responses of
the potential consumers.
97
Typical examples of test marketing:
(a) All Bajaj products are test marketed in Hyderabad.
(b) Liril soap was test marketed in Lucknow.
(c) Close-up was test marketed in Bengaluru.
4.3 Retail Store Audit
It is a technique used to determine the quantitative feedback from the

retail consumer buying behavior.
It is a study among the selected panel of retail outlets, provided as

subscription-based service by market research firms. Retail-audit service
providers gather information on a brand’s sales volume, sales trends, stock
levels, effectiveness of in-store display and promotion efforts, and other
associated aspects.
As compared to other marketing techniques, this particular technique leads

to more accurate and realistic feedback because it directly deals with the
products actually bought by the consumer.
Objectives of the retail audit:
a. Demand trend for a particular product.

b. Consumer tastes.
c. Assess the changes in lifestyles.
d. Observe the fashions picking up.
e. Determine the promotional strategies for different brands depending
upon their popularity.
Benefits of the retail audit:

a. Understand the market share of the company products.
b. To ascertain the level of acceptance of a particular brand.
c. To understand the packaging and pack size requirements.
d. It provides inputs to the company production schedule based on the
consumer demands and tastes.
e. Develop the suitable promotional strategy for different brands
depending upon their acceptance in the market.
98
4.4 Consumer Panels
Consumer Panel is a panel of consumers selected for achieving certain

objectives.
A consumer panel is a group of individuals selected by a business or

organization to provide input and opinion on products and services for
research on consumer behavior. Panel members are chosen to be
representative of the general population or a target group.
Objectives of a Consumer panel:
A. To study the brand loyalty of the consumer
B. To obtain feedback from the consumer about their tastes, preferences,

expectations, etc.
Frequent users of this research technique:

(a) Consumer goods producers (FMCG).
(b) Newspapers
(c) Advertising agencies
(d) Research institutions
The size of the consumer panel depends upon the funds available for
expenditure and desired coverage of a geographical area.
Methodology: The members of the consumer panel are selected on the

basis of stratified random sampling.
The record from each member for the following is generated:
(a) Particulars of items purchased (household, drugs, grocery).

(b) Number of units purchased.
(c) Brand selection.
(d) Price paid.
(e) Location of purchase.
(f) Purchase cycle: weekly/fortnightly/monthly.
The information thus, collected is tabulated and analyzed.
99
Outcome of this exercise gives the following useful information:
1. Approximate estimation of retail sales.

2. Number of families purchasing a specific brand regularly.
3. The Recent trend in retail.
4. Purchase Details of the new customer.
5. Purchase details of the old customer.
6. Detailed information about brand loyalty.
7. Market shares of particular brands.
8. Study of the impact of promotions of various brands.
9. The type and nature of the store preferred by the consumer panel and
why?
10. The impact of price fluctuation and recession/inflation etc.
4.5 Opinion Polls
In a democratic country like India, opinion of a common man holds

adequate importance.
An opinion poll is a human research survey of public opinion from a

particular sample.
Opinions are taken for the topics like education, law, politics, etc.
Methodology: The methodology involves the following:
(a) Sampling criteria

(b) Questionnaire
(c) Data tabulation
(d) Analysis
(e) Interpretation of the data
(f) Presentation of the data findings
Who conducts opinion polls?
(a) Magazines
(b) Political parties
(c) Educational institutes
100
Desired specifications in the opinion poll:
(a) Topic of the poll

(b) Geographical coverage
(c) Size of the sample
(d) Time availability
(e) Budget
(f) Parameters of the analysis
4.6 Cool Hunting
A Cool Hunting firm is a marketing research agency exclusively operating

to conduct research of the youth demographic. It is their job to make
observations and predictions in the changes of new and existing cultural
trends. They then compile the data and prepare the reports for emerging
or declining and changing trends. They also make predictions about the
future trends.
Such reports are sold to the large corporate group or companies whose
products are concerned with these.
A popular name in cool hunting is Viacom’s MTV-television

network.
Cool hunting is relatively simpler as compared with the marketing

research, because of the nature of the subjects. The market for cool
hunters comprises of teens and pre-teens who are stubborn and less
mature or a moody kind of crowd. It is highly unlikely that they will
respond to the traditional methods of market research in a desired manner.
Cool hunters must therefore find innovative ways of gathering information
from them.
101
Methods of Cool Hunting
A. Focus groups: A Focus group is a very popular attempt in cool hunting,

as it provides a direct insight to the thoughts and feelings of a sample.
Cool hunters typically gather a group randomly from the targeted
demographic and place one or two cool hunters within the group to
observe and record the information. It depends upon the study subject
as to what type of method is to be used for gathering information from
the focus group. It may be about youth culture, lifestyle or comparing
brands, understanding the responses of the youth to brands.
Participants in focus groups are generally awarded cash rewards or free
products in order to keep their interest in participation.
B. Undercover cool hunters: A cool hunter also may opt to hire a group
leader or a trendsetter to work as an undercover, who gathers the
report about the choices, preferences, likings and disliking of individuals
within the group. They are also aware about the feelings and thoughts
of their co-group members about particular products, hence, they can
authentically comment on behalf of the co-group.
C. Online cool hunting: There are various methods of research online;

upon completion of a survey the participant gets a prize or a monetary
compensation. Many a times, cool hunters will enter the chat rooms and
web groups by being a part of the audience and gather the required
information.
102
4.7 Segmentation Research
Market segmentation research is a research that is used to help a firm

identify segments in a market, with the end goal of developing different
strategies and tactics for the different segments (i.e., market
segmentation).
Market segmentation is the division of the market into subgroups with

similar motivations, nature, qualities. It is widely used for segmenting
geographic differences, personality differences, demographic differences,
techno graphic differences, psychographic differences, use of product
differences, gender differences, etc.
Segmentation research can be carried out in three different ways:
(a) Cluster analysis (b) Discriminant analysis (c) Factor analysis
(a) Cluster Analysis: Market segmentation usually depends upon

many variables. Each variable represents its own cluster. The
challenge is to find a way to combine different variables so likely
that a cluster can be formed. Cluster analysis is useful mostly in
exploratory research when there are no hypotheses.
Steps of Cluster Analysis:
1. Formation of the problem.

2. Collect the data and choose the appropriate variable for analysis.
3. Choose a distance measure; Euclidean distance is a common one.
4. Choose a clustering procedure.
5. Determine the number of clusters. They should be well separated from
each other distinctly.
6. Profiling the cluster.
7. Assessment of the validly of the cluster.
(b) Discriminant Analysis: Discriminant analysis can determine which

variables are the best predictors of group membership. It determines which
groups differ with reference to the mean variable, and based on that
variable make future prediction of the group.
103
Discriminant analysis analyses the dependency relationship, whereas factor

analysis and cluster analysis address the interdependency among the
variables.
Steps of Discriminant Analysis:
1. Formulation of the problem.

2. Determining the discriminant function coefficients which results into the
highest ratio of group variation.
3. Testing the significance of the discriminant function.
4. Interpreting the results determining the validity of the analysis.
(c) Factor Analysis: Factor analysis is a technique that is used to reduce

a large number of variables into fewer numbers of factors. This technique
extracts maximum common variance from all variables and puts them into
a common score. As an index of all variables, we can use this score for
further analysis. For example, in a car, anti-skid feature, ABS, airbags and
hill-decent control are all variables for a factor, say safety. Research
considers each feature as variable and tries to determine its
interdependence with limited factors.
Factor analysis is a way to take a mass of data and shrinking it to a smaller

data set that is more manageable and more understandable. It is a way to
find hidden patterns, show how those patterns overlap and show what
characteristics are seen in multiple patterns. It is also used to create a set
of variables for similar items in the set (these sets of variables are called
dimensions). It can be a very useful tool for complex sets of data involving
psychological studies, socio-economic status and other involved concepts.
A “factor” is a set of observed variables that have similar response
patterns. They are associated with a hidden variable (called a confounding
variable) that is not directly measured.
Depending on the depth of data one can extract, it can be: (a) Exploratory
factor analysis or (b) Confirmatory factor analysis.
If any car maker conducts a factor analysis, then it is obvious that various
features linked to specific factors have different weightage. This is pre-
decided and not known to customers. Customer gives his feedback
independently. But analysis takes into account this weightages and enables
organization to remove irrelevant variables and focus on key variables
104
clubbed under few factors like safety, comfort, convenience and

entertainment.
An Eigen-value represents the amount of variance in the original variables

which is associated with the factors.
4.8 Sales Forecasting
Sales are the lifeline of the company, and to get a correct estimate of the
futuristic sales revenue and growth of the business is a crucial element of
any business. Based on such estimates, the company is required to do a
planning of investments, manpower, expansion of the business operation,
etc.
An estimate of a company’s sales volume for a product within the specific

time frame and specified region or a market segment is called as a Sales
Forecast.
Sales forecasts are important tools in marketing since they provide the
guidelines to the business plan. It is confined to the short term plan since it
is not a very effective tool over a longer period of time. In order to arrive
at a realistic forecast for a business, a good researcher should conduct a
detailed demand analysis of the company’s products. This is done by
examining the potential of the company’s product, customer’s willingness
to pay the desired price and frequency of buying.
Businesses are forced to look ahead in order to plan their investments,

launch of new products, divestment decisions, etc.
Key decisions derived from the sales forecast are as follows:
(a) Manpower requirements
(b) Promotional mix
(c) Investment in production and infrastructure.
105
Types of forecasts: There are two types of forecasts, Macro and Micro.
Macro Forecasting is concerned with forecasting of the total market. This

particular research is about determination of the existing level of the
market and future market.
Micro Forecasting is concerned about detailed product unit forecasts.
This particular research is about determination of the specific product
market share in a specific industry and the future requirements of the
products.
The selection of the appropriate method for forecasting depends

upon several factors as mentioned below:
1. The position of the product in its life cycle: Invariably when the
product is at its initial stage in the lifecycle, less data is available and a
good amount of information is available during the maturity stage
therefore, the time series method may be useful as the forecasting
method.
2. The time frame the forecasts intend to cover: This involves

answering questions like, are we forecasting for the next 2 years or
next few weeks?
3. Availability of data: In some markets huge sales data is available to

get a correct prediction, however some markets do not provide enough
information.
4. Degree of accuracy required: This is a very important and a critical

factor because if the high risk is associated with the forecast then it
stands to reason that the forecast has to be prepared with maximum
possible accuracy. The costs involved with accuracy are also high,
however, for such high risk, the business pays for it.
106
Various Methods of Forecasting
(A) Subjective Methods
These methods generally rely upon the qualitative judgments from

experienced professionals, trained and experts from the market. Their
opinions and judgments are straightway transferred into quantitative
estimates of the company product sales.
• Executive opinions method: This is a very popular method among the

industry, this calls for a group meeting of experienced professionals and
experts from the industry in a structured forum with a specific agenda for
sales forecasts. Well experienced managers from the company keep
noting different opinions and views, and reconcile them to arrive at
quantitative estimates for future sales.
• Delphi method: The Delphi method is also based on the group meetings
of professionals and experts from the industry, but here they do not
interact face to face, this is done from the individual feedback
independent of each other and through the iteration process. The
advantage of this system is that there is no overlap of thinking and the
individual gives his or her judgment based on his/her personal view and
objective thinking.
(B) Objective Methods
(i) Sales forecast using the time series projection method: In these
particular methods, the demand projections are made from the historical
data and trends.
• Trend projection method: This method involves the extrapolation of

the historical data and sales revenue in the future demands of the
customer. This method works very well if the business is stable and is
not subjected to sharp up-downs in the last few years and expects to
continue on the same track.
• Exponential method: In exponential methods, the sales revenue

forecasts are modified by examining the potential changes in the
observed historical data trends, the odd figures are removed from the
data by balancing the total data for proper projections. This method is
107
useful since it shows the exponential data and sharp spikes of up and
down are removed with a sound reasoning.
• Moving average method: In this particular method, simple arithmetic

average is used to forecast the future projections or forecast. This
method is suitable for the type of business which periodically
experienced adjustments in their revenue profile or structure.
However, they return back to their historical cycle over a certain period.
(ii) Sales forecasting using causal methods: Causal methods take a

statistical correlation approach to develop a sales forecast based upon the
cause-effect relationship in a quantitative manner.
Some of the methods are discussed below:
a. Chain ratio method: This method is applied to the number of

factors for developing sales demand, in which the quantitative
impacts of each factor, is layered upon each other in a structured
manner.
b. Consumption level method: This method is useful for a product

which is directly sold and consumed. Such as FMCG products,
TELECOM services. It estimates demand levels on the basis of
elasticity of the coefficients, such as income elasticity of the demand
and price elasticity of the demand.
c. End-use method: The end-use method develops the sales forecast

on the basis of consumption co-efficient of the product or service for
various users, and it is more suitable for intermediate products/
services.
d. Leading indicator method: Observed changes in the leading

demand indicators for a product are used to predict the changes in
lagging demand variables.This method is particularly suitable for
seasonal products and products which are predicted on occurrence of
specific events or a customer behavior.
(iii) Sales forecasting using a combination method: It is a fact that a

sales forecasting does require a lot of subjective judgment as well. These
subjective judgments may not lead a sales forecast to a specific number
108
since they are based on assumptions. Therefore, an analyst uses a

combination method of subjective and objective forecasting to estimate the
sales for the next year.
Method for Preparing the Sales Forecast
Preparing a sales forecast has three stages:
a. Prepare the macro economic forecast: What will happen to the

overall economic activity in the relevant economies in which the product
is sold?
b. Prepare an industry forecast: What will happen to overall sales in an

industry based on the issues that influence the macro economic
forecast?
c. Prepare a company sales forecast: Based on what the company

thinks about the product for the next year, a strategic decision of taking
a growth trend and how much to increase its market share is done.
4.9 Demand Estimation Research
The first stage in sale forecasting process is estimating the demand.
The demand can be considered of two types:
(A) Market demand: This is the estimation of the total requirement of the
market required in a predefined geographical area, for a predefined
group of customers, and for a predefined period.
(B) Company demand: A company demand is the company’s share of

market demand. A company’s market demand depends upon how the
company products or services are perceived by the consumers in the
perspective of the quality, price, and brand value and so on. The
Company product demand is always compared with the competitor
products’ demand in the market.
109
In the beginning of the demand estimation process, a company needs to

know the actual related industry sales taking place in the market. This
involves identifying the competitors and their estimated sales figures. This
figure is essential to evaluate the company performance as against the
competitors.
Marketing research firms conduct different surveys and then make their
reports available on payments, which is also a useful source of information
to analyse competition. This issue is critical because as a manufacturer, an
industry must know how the market for their products are growing
annually and how their competitors are performing. Based on this, the
company can evaluate the rate at which they are growing and decide the
future course of action.
Current company demand = Current market demand × Current

market share of the company is the standard equation of the
estimation of current demand.
4.10 Market Analysis
A market analysis is a documented investigation of a market that is used to

inform the firms’ planning activities, particularly around the decisions of
inventory, purchase, workforce – expansion/contraction, facility expansion,
purchasing of capital machinery, promotional activities and many other
aspects of the company.
Managers are required to make their decisions using the market analysis
data and understand how that data was derived. Hence, all managers are
needed to have reasonable understanding of the tools most used for
making sales forecast and analyzing markets.
A larger number of market analysis techniques are related to sales

forecasting, others are more general techniques for analyzing markets.
Market analysis is important in areas such as: Sales forecasting, market
research and marketing strategy. Sales forecasting and market analysis are
complementary to each other.
Market and sales analysis enables a company to identify the areas where
its sales performance has been good or below average. A systematic and
110
comprehensive sales analysis will be helpful to the company to boost its

sales efforts.
Sales research is a systematic study of issues like current value and

volume of sales, sales potentials, sales forecasting, sales territory
evaluation, measurement of a salesman’s work performance and sales
expenditure.
Areas covered under this research:
(a) Market research analysis: It is a part of marketing research

which is undertaken to develop new market potentials, market
share analysis, market segmentation, the nature and extent of
competition in the market, demand supply position and other
characteristics of the market.
(b) Sales analysis: Sales analysis may be defined as an analysis of

the sales performance of a company for a specific period of time in
a defined market. The main purpose of the analysis is to find out
the strength and weak areas of the company’s selling operations
and to provide a necessary direction to the sales force, focusing on
the available resources of the company.
Methods of Sales Analysis
i. Sales analysis by territory: The analysis of sales performance is

made based on units sold in different territories during a given
period. The expected sales and actual sales are considered and the
sales efficiency of the territory is appraised. After analyzing all the
territories, the sales efforts can be concentrated on profitable
territories and weak territories can be eliminated or reconstructed.
ii. Sales analysis by product: This type of sales analysis is

undertaken by companies producing and marketing a wide range of
products and services Such analysis reveals the product which is
unprofitable, slow moving and low profit-making. It also tells about a
product which is most profitable so that, the company can
concentrate on the marketing of such profitable products only and
eliminate the unprofitable products.
111
iii. Sales analysis by customers: Here a customer is taken as a basis

for analyzing the sales performance. For this, the individual sales
record is collected from the invoices to find out the value and volume
of sales frequency of buying, payment schedule and so on. Such
analysis enables the company to concentrate on a few customers who
can give big orders and contribute more to the total sales.
iv. Sales analysis by size order: The Sales are analysed on the basis
of quantity ordered at one time. Such data can be used to find out
the cost of obtaining and executing an order, to fix up the minimum
ordering quantity, to train salesmen, to bring large orders or closing
down sales or certain products in certain areas.
c. Sales forecasting: Sales forecasting is the third area covered by sales

research. Here, systematic efforts are made to anticipate future sales of
the product during the prescribed time and in the prescribed market and
at a specified price. Reasonably accurate sales forecast are useful for
production planning and other activities relating to sales.
112
4.11 Summary
Marketing research helps to understand the human behavior and attributes

of human nature which help to understand the consumer decision of buying
any product. The main objective of marketing research is to analyze the
responses of the consumer towards the product in terms of various
features and what benefits the consumer perceives from the products.
Test marketing executes the entire marketing plan for the new product on
a pilot level to get a fair idea about its performance at every stage of the
marketing plan. The results of the pilot launch or test marketing can be
used to make judgments on national level marketing.
When to test market:
a. Time: When is the new product ready for a launch?
b. Speed: It is required to be tested at a good speed with extra efforts as

by this activity the biggest threat is awakening the competitor.
Generally, the length of test marketing is any where between 2 months
up to 2 years.
c. Place of test market: It must be ensured that the test marketing be

carried out in similar areas, where the nation wide strategic decision to
launch is made.
This is done to get an idea about the responses of the potential consumers.
Retail store audit: It is a technique used to determine the quantitative

feedback from the retail consumer buying behavior.
As compared to other marketing techniques, this particular technique leads

to more accurate and realistic feedback because it directly deals with the
products actually bought by the consumer.
113
Consumer Panels: Consumer panel is a panel of consumers selected for

achieving certain objectives.
Objectives of a consumer panel:
A. To study the brand loyalty of the consumer
B. To obtain the feedback from the consumer about their tastes,

preferences, expectations, etc.
Opinion Polls: In a democratic country like India, opinion of a common

man holds adequate importance. Opinions are taken for the topics like
education, law, politics, etc.
Methodology: The methodology involves the following:
(a) Sampling criteria

(b) Questionnaire
(c) Data tabulation
(d) Analysis
(e) Interpretation of the data
(f) Presentation of the data findings
Cool Hunting: A cool hunting firm is a marketing research agency

exclusively operating to conduct research of the youth demographic. It is
their job to make observations and predictions in the changes of new and
existing cultural trends. They then compile the data and prepare the
reports for emerging or declining and changing trends. They also make
predictions about the future trends. Such reports are sold to the large
corporate group or companies whose products are concerned with these.
A popular name in cool hunting is Viacom’s MTV-television network.
Segmentation Research: Market segmentation is the division of the

market into subgroups with similar motivations, nature, qualities. It is
widely used for segmenting geographic differences, personality differences,
demographic differences, techno graphic differences, psychographic
differences, use of product differences, gender differences etc.
Segmentation research can be carried out in three different ways:
114
(a) Cluster analysis (b) Discriminant analysis (c) Factor analysis
Sales Forecasting: An estimate of a company’s sales volume for a

product within the specific time frame and specified region or a market
segment is called as a sales forecast.
Key decisions derived from the sales fore cast are:

(a) Manpower requirements
(b) Promotional mix
(c) Investments in production and infrastructure.
Demand Estimation Research: The first stage in sale forecasting process

is estimating the demand.
(A) Market demand: This is the estimation of the total requirement of the
market required in a predefined geographical area, for a predefined
group of customers, and for a predefined period.
(B) Company demand: A company demand is the company’s share of

market demand. A company’s market demand depends upon how the
company products or services are perceived by the consumers in the
perspective of the quality, price, and brand value and so on. The
Company product demand is always compared with the competitor
products demand in the market.
Market Analysis: A market analysis is a documented investigation of a

market that is used to inform firms planning activities, particularly around
the decisions of inventory, purchase, workforce – expansion/contraction,
facility expansion, purchasing of capital machinery, promotional activities
and many other aspects of the company.
115
1. Suggest which of the following marketing technique can be used to

understand the satisfaction levels for the customers of a cyber café.
(a) Exploratory research
(b) Descriptive research
(c) Consumer Satisfaction research
2. Suggest a technique to be used to understand a response for a new

branded curd.
(a) Advertising research
(b) Eye tracking
(c) Test marketing
3. When an employee of a company visits another retail outlet as a

customer and observes the systems and sales skills, this technique in
particular refers to _____________.
(a) Cool hunting
(b) Copy testing
(c) Mystery shopping
4. The process of keeping a watch on the competitor’s advertisements is

known as _____________.
(a) Ad Tracking
(b) Positioning Research
(c) Concept Testing
5. When a methodology is used to understand the opinion about a product

in a forum by observations it is called as _____________.
(a) Viral marketing research
(b) Consumer panels
(c) Brand equity Research
6. The Retail Store audit is a procedure observed in following place:

(a) Finance department of supply company
(b) Retail mall
(c) Opinion poll
116
7. Opinion polls are observed in any one of the following processes:
(a) During election

(b) Concept marketing
(c) Ad tracking
(a) Explain in brief the concept of test marketing with reference to:
(i) Bath soap
(ii) Breakfast cereals
(iii) Branded perfumes new brand
(b) Explain how you will test market APPY FIZZ.
4.13 ANNEXURE – INDUSTRY EXAMPLE/S
How Starbucks Uses Market Research to Propel the Brand
Starbucks has been a successful company over many decades largely

because of its stellar business strategies. The company expertly employs
market research to keep its offerings and marketing messaging in line with
consumer sentiment.
Market Research Methods
Market research can take many different forms, including following cultural
trends, monitoring social media, gathering consumer feedback and in-store
product testing. Starbucks does all of these and more.
One notable way that Starbucks conducts its own form of market research
is through its My Starbucks Idea platform, which it rolled out in 2008 as
part of the company's "Transformation Agenda" at the time. Since then it
has gone through some different iterations, but the basic idea behind it
remains the same: customers, potential customers, and employees can go
to the website to submit any ideas they have for new offerings, changes
they’d like to see to anything that already exists, requests to bring back
old products, and more.
117
The company also takes advantage of social listening, which involves

monitoring digital platforms such as Facebook, Instagram, Twitter, and
Reddit to find out what customers are saying about the brand and collect
feedback that could help the brand improve. As of December 2018,
Starbucks had 11.5 million followers on Twitter, 17.3 million followers on
Instagram, more than 37 million likes on Facebook, and nearly 200,000
subscribers on YouTube.
Starbucks regularly tests new products in select stores, which helps the
company figure out if it needs to make any changes before launching them
in other markets — or if it will even continue the launch in other markets.
Starbucks also uses data from several market research firms, as well as
data gleaned from its own stores, to shape its new product lines.
Example: Dairy-Free Alternatives at Starbucks
Examples of how Starbucks has used market trend data, digital consumer
feedback and in-store product testing are the launches of its dairy-free
milk alternatives.
Market Research Company Mintel reports that during the period from 2012
to 2017, overall sales of dairy-free milk alternatives in the U.S. grew 61
percent, with almond, coconut, and soy milk being the most popular types.
Starbucks has kept pace with this trend among health-conscious
consumers and customers with special dietary limitations. The company
began offering soy milk in 2004. In 2015 it launched drinks with coconut
milk, and in 2016, it began offering almond milk. Starbucks also began
offering oat milk in its European stores in 2018 to keep up with trends
there.
The company says that a major reason that it launched these dairy-free
milk alternatives was that they were some of the most requested offerings
on its My Starbucks Idea platform. During 2014, the company also tested
the use of coconut milk in stores located in Cleveland, Los Angeles, and
Oregon. The results of the tests and combined market research were
positive enough for Starbucks to begin rolling out coconut milk nationwide.
118
At the time of the coconut milk launch, former Starbucks Vice President of
Brewed Espresso, Christine Barone, told MarketWatch, “Delivering the
options our customers want is always the highlight of my day. We have a
high bar for anything we pair with our high-quality espresso and this
coconut milk is smooth and perfectly complements the coffee.”
Source: Adapted from an article in “The Balance Small Business”.
119
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
120
MARKETING MIX RESEARCH
Chapter 5
Marketing Mix Research
Objectives
After studying this chapter, students can understand how marketing

research can be used to support specific decisions of the marketing mix.
Particularly, how this research can help in preparing a business plan of
how, when, where and why to place a product apart from many other
decisions.
Structure:
5.1 Introduction
5.2 Types of Marketing Research
5.3 Concept Testing
5.4 Brand Equity Research
5.5 Brand Name Testing Research
5.6 Eye Tracking
5.7 Conjoint Analysis
5.8 Correspondence Analysis
5.9 Discrete Choice Modeling
5.10 Multidimensional Scaling
5.11 Multidimensional Preference Analysis
5.12 Pricing Research
5.13 Advertising Research
5.14 Copy Testing
5.15 Readership Surveys
5.16 Ad Tracking
5.17 Viral Marketing Research
5.18 Measurement of Customer Satisfaction
5.19 Mystery Shopping
5.20 Summary
121
5.1 Introduction
A Marketing mix research is often engaged in testing the marketing mix

and can be used to support specific decisions about aspects of the
marketing mix. Such a research allows the business to plan how, when and
where to place the products apart from any other related decisions.
There are four stages in marketing research in terms of marketing mix,

which are called as the 4P’s. It is essential that an overall research plan
involves all the elements of the marketing strategy.
5.2 Types of Marketing Research
Marketing mix research: The research in marketing mix is very useful in

deciding where to place the product, when to place and how to place the
product.
A framework for the research design was developed by Nigel Bradley in

the year 2004. This is very similar to the 4P’s of the marketing mix.
122
This framework discusses four stages of the design:

(a) Purpose
(b) Population
(c) Procedure
(d) Publication
a. Purpose: There has to be a specific purpose for the research. The

purpose of the research is to be explained as a problem and then
transformed into the hypothesis for the purpose of the research.
The main purpose of the research is the reason why the research is being
done? This term embraces studies to gather marketing intelligence, where
the sales manager’s role is to scan the environment and gather useful
data.
The first step towards it is to create a null hypothesis (H0). This is usually
intended to prove invalid or reject., another hypothesis created (H1). This
is actually our research hypothesis; based on this hypothesis a researcher
can design a research programme to test the hypothesis. When the results
are obtained, they are examined against the prediction of the null
hypothesis. The basic idea is to use this possible explanation and look for
supporting data. One needs to spend enough time and efforts to formulate
the hypothesis. It is a research problem and it guides to carry out the
research.
For example, Automobile maker’s null hypothesis could be (H0) – More

variants of any brand you introduce, more sale you will capture. After
secondary data collection and may be primary research, it may be found
that this is not true. This means another hypothesis (H1) holds true, i.e.,
more sale of vehicle is not dependent on number of variants you introduce.
(b) Population: When considering any market, the researcher needs to

ask “who is involved in research”.
Who are the players in the market? Who should be contacted for the
investigation and where are those subjects? This area defines the target,
audience, the users and non-users. Who will become the informant?
Should we contact all of them or just a few of them? Similarly, should we
carry out the census or a sample? Should respondents be selected by the
probability or non-probability method? In this specific manner, the
123
researcher decides whom to select as a respondent and what is the way to

get the information from the respondent. In a nutshell, this part of the MR
involves in identifying the relevant sampling frame.
An important part of this primary research is sampling. The researcher

chooses to interview or observe people who he or she thinks will give the
information which will solve the research problem. Hence for choosing an
appropriate method, one needs to consider whom to select and how to
select. This applies to the qualitative research, with few people and
quantitative research with many people. In marketing research, much
emphasis is given on the end user. An expert or a professional connects
between the primary and secondary data. This part is precisely identified in
the sampling frame.
For example, post secondary research, it can be derived that this

hypothesis needs to be checked by doing a primary research among the
hatchback car owners. It was logically established that since more variants
are introduced over last two years, time frame could be 2 years. Thus,
from the 10 million car owners in India, hatchback cars could be 35%.
Within the hatchback, cars purchased in the last two years could be
5,00,000 lakh numbers. Thus, number 5.00 lakh is a population. Based on
this, later scientific sample size could be decided, profile of sample
respondent will be drawn, sampling approach (random or stratified
sampling) will get decided. Survey may be kept limited to 6 major metros
as it accounts for the maximum % of the total cars sold.
(c) Procedure: This point focuses on how to conduct the research,

whether it is quantitative or qualitative, the length of information desired.
The researcher also checks at this stage, the ready data available and then
decides upon the methods of collection and technique for analysis. The
best research starts of by looking at the secondary data, that is the
information which already exists.
With the use of technology nowadays, it is relatively easy to obtain the

data. The Internet and advance technology has increased the speed of
information transfer and more importantly the access to the data.
Secondary data is not sufficient to come to conclusions, so primary data is
sought from various sources of information; it is done by interviewing and
observing various people and through various experiments.
124
The two basic sources of information: Internal (Within the organisation)

and External (Published data).
(d) Publication: This point refers to the receivers of the report and what
way they can use the report. There are many audiences to the report who
have different expectations. This involves the top management, marketing
department, advertising department, sales department, etc.
Under the heading of the “publication” following questions could be asked.

(a) Who is the audience for the results of the research?
(b) What should be communicated?
(c) When and how should it be communicated?
Research is of no use if it is kept as a secret; similarly, commercially

sensitive information will have no competitive advantage if it is placed in
the public domain. Choices are needed to make on how the publication can
take place, like:
(a) Should the written report be created?

(b) Should it be given in a tabular form?
(c) Should it be made in the form of a presentation (PPT)?
(d) Should it be presented directly on site of the results?
Reporting must be personalized; writing and presentation style must be

customized and adapted to the user. In case of reports for general public
interest like reports based on health, welfare, transport and consumer
report etc., the Researcher must find suitable magazines or publishing
domains which will give maximum exposure. Editors of periodicals regularly
commissions research for editorial reasons, so as to help enable the
findings to reach the masses.
There are several applications of the MR Mix. MR Mix can be used for
primary research more specifically but it can be utilized for the secondary
research as well. This framework is useful during all six stages of
marketing research conducting process.
The framework is very user-friendly to the marketing people and thus

same is summarized below for better understanding.
125
Element Coverage
Purpose Research objectives and sub objectives, aims , hypotheses, etc.
Population Who are the participants? target audience, customers or players.

Users and non-users? respondents? source of respondents?
census or sample? selection by probability or non-probability.
Procedure Data collection, data processing, analysis. Secondary or primary
research? qualitative or quantitative? personal or by phone or by
mail? questions or observations?
Publication Limited or wide audience? Who should know? timing needs?

reporting and presentation needs, written reports, oral
presentations, electronic publication or in mass media
Some of the major techniques are as mentioned below in the marketing

mix research:
Research with Respect to the 4Ps
• Product research
• Pricing research
• Distribution research
• Promotional research
❖ Product research:
- Concept testing
- Brand name evaluation
- Packaging testing
❖ Pricing research
- This involves the research of the consumer’s ability to pay, put

willingness to sacrifice for the value, trend and necessities.
126
❖ Distribution research:
- This research is aimed at selecting the retail site or warehouse

locations to support the sale.
- Research for a suitable marketing channel
- Supply chain: Selection of the appropriate supply chain and logistics

linking the suppliers and customers.
❖ Promotional research:
- Investigating the effectiveness of advertising, sampling, coupons,

public relations, sales promotions.
- Media research helps the business in deciding which media alternative

is the most suitable to convey the intended message to the consumer.
- Promotion: The communication functions of the business responsible

for informing and persuading the buyers.
- Integrated marketing communications: A combination of all

promotional efforts like (advertising, event managing, personal
selling, public relations etc.)
5.3 Concept Testing
Concept testing is an attempt for identifying the potentially successful

products. This process focuses on judging a person’s reaction to the idea or
the concept of the product, helping in making a preliminary decision such
as Go/No Go. Concept testing is conducted much before the product is
marketed, or developed. Hence, while promising a high probability of
consumer acceptance, the attempt minimizes the research and
development costs and marketing costs.
The process of concept testing depends upon the type of the product being
developed.
127
A typical test procedure is as follows:
• Define the purpose of the test.

• Choose a survey format
• Communicate the concept or the idea
• Measure the customer response
• Interpret the results.
• Present the results.
Concept testing addresses several purposes. It helps finalize the optimum

market that a product should be introduced in. While selecting the
alternative concepts, it confirms the best selected alternative.
Concept testing also lays the foundation on benchmarking, which can be

carried out in future. This effort helps to convert a new idea into a concept.
It also forecasts the demand and analyses whether the product is ready for
the launch.
Concept testing is more often used in the concept development to test the
success of a new product idea before it is marketed. Concept testing and
development provide the direction and guidance necessary to selectively
identify and communicate key products or service benefits, uses,
packaging, advertisement, sales approach, product information distribution
and pricing.
It is a process of using qualitative and quantitative techniques to evaluate

consumer response to a product idea before its introduction to the market
or developed/produced. It can also be designed to establish communication
and understanding consumer attitudes towards existing products. These
methods involve the evaluation by a consumer of product concepts having
certain specific benefits. Such as “A detergent is removing sticky stains yet
it’s giving a pleasant aroma”. Such methods are known as methods of
concept testing and these tests are performed during the survey, personal
interviews and focus groups, etc. Sometimes, these methods are also used
in combination with quantitative methods to generate and evaluate product
concepts.
The major component of concept testing is generation of the concept.

Concepts are tested through popular methods like market research,
consumer survey, etc.
128
The quantitative component of concept testing is generally offered in three

different categories:
1. Concept evaluation, where concepts representing product ideas are

presented to the consumer in an audio or visual form, and then
quantitatively evaluated on the basis of, consumers indicating degrees
of intentions of purchases, likelihood of trial, etc.
2. Positioning, which is a concept evaluation wherein concepts positioned

in a same functional product class and which are evaluated together.
3. Product/concept tests, where consumers first evaluate a concept,

then the corresponding product and results are compared.
5.4 Brand Equity Research
It is important to understand the concept of brands and trademarks

beforehand. Brand names and trademarks are more than names and
symbols. They mean to communicate. Trademark is a name, symbol or
other device identifying the product, which is officially registered and
legally restricted to use, by other than the manufacturer or owner. Trade
mark is a very important element in the product image and therefore, it
should be distinctive and easy to remember.
The brand has a great significance in the marketing mix as a marketing

tool. Brands are not sold as commodities, they add value to the product
and the company. On the retail counter, people just don’t buy Lux as a bath
soap or Colgate as a toothpaste.
A brand name is a title assigned to the product by its manufacturer, to

distinguish it from similar generic products. It is given for the purpose of
identification and communication purposes. It helps advertising to be more
effective and to gain popularity in the market. The marketing
communication about the product becomes simple and its benefits can be
easily communicated. Customers often specify the product by the brand
name while purchasing. Creating a brand name for a product is a very
major decision and complex process.
129
Brand image search: This activity holds specific importance as it is useful

to the manufacturer for not only boosting sales, but also in maintaining
loyalties of consumers in a given brand. A brand image survey is carried
out to understand and collect consumer view- points towards brands like
brand awareness, brand recognition, brand preference, brand loyalty, etc.
It helps to promote sales and assists consumers in buying branded
products. A good brand image is always an asset to a company and which
generates a wealth of brand loyalty.
The brand image research is important for the following reasons:
(a) Brand recognition: This activity is carried out to find out how
well consumers are familiar with the company’s branded product.
If consumers can identify the product on the basis of attributes
like taste, size, shape, etc., the product enjoys good image
premium with the consumers.
(b) Brand preference: The Brand image survey helps in finding out
the consumers’ preferences likes and dislikes, attitudes, etc. This
data is very useful in understanding and creating a favourable
image about the brand.
(c) Brand loyalty: Loyalty signifies the faithfulness of the consumer

to the product and shows the conviction on certain attributes of
the product which makes him/her buy it repeatedly for a very long
period. This study also suggests many ways to enhance the brand
loyalty, through advertising, promotions, etc.
(d) Brand awareness: It is necessary to find out how far advertising

and other techniques are useful in creating brand awareness about
a product. A Brand image research is normally conducted by
collecting information on the brands of the company.
Brand Equity Research: This method is an attempt to put a value on the

strength of a brand in the market, in the eyes of the consumers, investors.
Growth in the brand equity correlates to the growth in the stock values,
sales, profits, price premium, employee satisfaction etc. Strong brands
significantly contribute in company sales and profits thus generating new
customers and opening new markets etc. (For example: (Coca- Cola,
Ford).
130
Brand equity research has two major essentials:
1. Brand profiling: In this, a brand and its competitors are profiled

against a set of indicators and attributes. The indicators are usually
fixed within the model, but attributes may be specific to the brand.
2. Conversion model: This model makes the estimation of the degree of

strength or weakness an organization’s brand has in its customer base
with respect to competition. Financial institutions use this model in
products like the credit cards business. Brand equity research findings
not only reveal customers strong connect with your product vis-à-vis
competition but also used to identify customers of competition they
should approach, the products which could be offered as alternative
products, where they can straight away take it.
The core measures related to the following are ascertained:
• Cognizance
• Awareness
• Usage
• Loyalty
5.5 Brand Name Testing
The ultimate objective of the branding research is to deliver the branding

research information which helps in the better understanding of a brand
positioning, and in enhancing that brand position in the local and global
markets.
The Brand name research is significant when naming a business or

choosing the right product or service.
Choosing an appropriate name is balancing an art and science.
131
Impact factors associated with this are:
1. Emotional bonding power: While naming a business or developing a

product name, such as a brand name, It is important to assess whether
the name is connecting in anyway with the target market and can help
to establish an emotional bond.
2. Memorizing: The Brand name research shows that remembering the

brand name is a real test for a brand. It shows how the brand is
registered in the consumer’s mind and how it is affecting them. Does
the name have enough power so that it can be remembered when it is
seen for a couple of times?
3. Latent association: What are the pros and cons associated with the
brand names? What level of positivity and negativity exists? Which
barriers are required to overcome the negativity in latent association?
4. Fit to concept: Selecting the best brand name suiting the most for the
type of business, company product or service offered.
5. Ability to pronounce: The Brand name research reveals that what

should be easy to pronounce, if the brand name cannot be pronounced
properly, then naturally consumer’s won’t ask for it.
6. Resonant: Does the product name sound right to the consumer? Is the
name sounding powerful?
132
Five best practices for Brand Name Research:
1. Do not rely upon the focus groups: Company names, product names
and services names that are tested in the focus groups tend to pick over
as familiar names, however it cannot guarantee the most preferred
name.
2. Obtain the emotional feedback, not just facts and figures: The
Company name, product name and service name is usually kept due to
various emotional reasons. Even in the target market, naming can be a
popularity contest.
3. Look for quality and not the quantity: The Brand name researcher
researches a large number of corporate names, product names and
service names, etc., and tries to establish an association with the
product under research. In this process, the researcher is pursuing to
establish relation between the name and product. Experience has shown
that best results to obtain the relevant name are obtained from a
handful strong names.
4. Test the names with the right audience: The new brand must
resonate with the target market.
5.6 Eye Tracking
Eye tracking is a technique used to determine where a person is looking at.
The concepts underlying eye tracking are very simple: It tracks the
movement of the user’s eyes and note the pupils are focused on which
objects. This allows a researcher to understand from the observation,
where the subject is focused, is with the subject, studying the features or
curious about the operations. However in practice, these measures are
difficult to achieve and it needs a high degree of accuracy in observation
and judgment. Now a days, researchers are taking help of sophisticated
instruments for tracking, analysis and interpretation of the same. The
equipment used for this purpose is called as an Eye Tracker.
133
Eye movements made during reading and pictorial identification provides

useful information about the process by which people understand the visual
input and integrate it with knowledge and memory. Researchers use eye
tracking for studying how people read, solve problems, look at pictures,
scan instrument panels and perform complex operations.
Recently, the advancements in eye tracking technologies and accessibility

have generated a significant amount of interest in the marketing and
advertising business. Its Applications include: Web usability, advertising,
sponsorship, packaging, design, automotive styling, etc.
In general, commercial eye tracking studies function by presenting a target

stimulus (commercial, website, magazine advertisement, etc,.) to a sample
of consumers while an eye tracker is used to record the activity of the eye.
The resulting data, thus, measured statistically and analyzed. This is
interpreted graphically defining various visual patterns. By examination of
fixation, pupil dilation, blinks are linked to the behavorial aspects of the
subject. Researchers can determine a great deal of effectiveness of a given
product. Some companies complete this type of research process
internally, there are organizations which undertake such an activity as a
project, and they have professionally trained staff to perform eye tracking
services and analysis.
Eye tracking is a unique method to understand in store or within mall

interaction between consumers and products on the shelf, by collecting
new insights about the attention of the consumer on saliency, interest and
stare path. It also helps to analyze the impact of packaging, placement of
the product in store. Further, it measures spontaneous reactions and
behaviours.
Eye tracking more specifically is used for assessment of efficiency,

branding, online advertisements, navigation usability, design of the sight
and presentation and many other site components. It also helps in
analyzing the competitor’s website in addition to the client’s website. Eye
tracking is an advance technique used in cognitive science, psychology,
human-computer interface, advertising research, etc.
Eye tracking is popularly used in a variety of advertising media such as,

commercials, print advertisements, online advertisements, sponsored
programmes. Eye tracking analysis focuses on visibility of the target
134
product or a logo in the context of the magazine, website, newspaper or a

television event. This allows a researcher to assess in detail, how often a
sample of the consumers fixes his/her eyes on the target product or a logo.
In this way, a researcher can quantify the success of a campaign in terms
of the visual impact.
Application of Eye Tracking: Package Design
Eye tracking provides package designers an opportunity to examine the

visual behaviour of a consumer while interacting with a package under trial
or design. This may include analysis of observations for attributes of
packaging, such as distinctiveness, attractiveness, impact of packaging
while making a purchase decision.
Eye tracking is most popularly used when packaging is in the prototype

stage. Prototypes are tested against each other and against competitors to
examine specific impact elements associated with high visibility and
appeal.
Eye tracking has become a method of choice for commercial studies in

marketing, especially in context of the packaging design test. It is also
used for merchandising, print and outdoor advertising, web marketing
(Young, 1996).
The standard procedure in eye tracking is to ask a mature subject

(shopper) to look at the projected photographs of supermarket shelves or
print ads as “they would normally do” while their eyes are being tracked.
A strong shelf presence for the consumer products is critical in cutting edge
of the competition and tough economy. Effective packaging increases the
products chances of being sold. The impressive packaging allows the
product to stand out amongst the other products. However, the company
needs to figure out what draws the consumer’s attention, especially even
before their product hits the stores.
Focus groups and interviews are important tools for gathering consumer
opinions; however, research has revealed that consumers are often
unaware of what specifically attracts them to the packaging. Eye
movements provide an accurate and objective insight into the minds of the
shoppers, and help determine what visually attracts them.
135
Multiple packaging concepts are usually developed before one is selected.

Knowing which design is more likely to attract attention can better form
the final selection that eventually appears on the shelf of the outlet.
“Eye tracking is a critical tool for understanding which package design will
move the product and which will not” says Aga Bojko, chief scientist and
eye tracking expert for a firm based in Chicago.
“First, we determine how noticeable the product is amongst other products

on the shelf and secondly, we want to identify which elements of that
specific design attract the most attention and tempt the consumer to buy
and which elements are completely missed out by the consumer.”
Thus, Eye Tracking research must cover following four critical dimensions:;
• Noticeability: How easily a product can be noticed in a field of other

products?
• Visual engagement: Once noticed, how much more attention would the
product require?
Which areas of the package draw the most attention? Which areas are
neglected?
• Visual appeal: How does the customer react to the package design?
• Self-reported susceptibility to purchase: According to customers,

how often would they make a product purchase decision based on
packaging?
136
5.7 Conjoint Analysis
It is a statistical technique used in marketing research to determine how

people value different features that make up an individual product or
service. It determines the things which a customer choose while buying
their goods or services. Conjoint analysis is concerned with how a
customer makes their choice when buying things.
Conjoint Analysis is a popular marketing research technique that

marketers use to determine what features a new product should have and
how it should be priced. Marketer will see what majority of their customers
seek in their products and try to improve that. The analysis helps the
companies to understand what aspects of their products are most
desirable. They will act upon that certain aspect to ensure higher
profitability. It is like getting into the customers’ mind and catering them to
their specific needs. Conjoint analysis has become a popular method, since
it is less expensive and more flexible to address these issues than concept
testing.
If we take the example of smartphones, there may be many features (OS,

memory, kind of battery, life of battery, charging time of a battery, camera,
megapixels, number of lenses for focus and more). Conjoint analysis will
help in narrowing this list and determine what triggers the decision in favor
or against. Currently, it looks like camera superiority is one which is driving
the same and thus you see most companies are emphasizing on how their
smartphone camera is superior to others.
The objective of the conjoint analysis is to determine – What

combination of number of attributes is influential on the respondent choice
or decision making? A controlled set of potential products or services is
shown to respondents and by analyzing, how they make preferences
between these products, the implied valuation of the individual elements
making up the product or service can be determined. These implied
valuations can be used to create a market model which estimates the
market share, revenue profitability of the new model or a design.
At the outset, many consumers are unable to accurately determine the

relative importance that they place on the product attribute. For example if
asked, which attributes are the most important ones, the response may be
such that all are important. Furthermore, individual attributes in isolation
137
are perceived differently than in combinations found in the product. It is

not possible for a survey-respondent to list all the attributes and try and
combine them. If the respondent is presented with different combination of
attributes during the survey, then it may be easier for the respondent to
visualize and select the preferred combination. However such a survey is
not practically possible, as the attributes are present in large numbers so it
will be a very long list of combinations.
Conjoint analysis is an answer to such a complex situation. Conjoint

analysis is a tool which allows a subset of the possible combinations of a
product’s features to be used, to determine the relative importance of each
feature in the purchase decision. Conjoint analysis is based on the facts
that the relative values of attributes considered jointly can be better
measured than while considered in isolation.
In a conjoint analysis, the respondent can be asked to arrange a list of

combinations of product attributes in a decreasing order of preference.
Once the ranking is obtained, a computer is used to find the utilities of
different values of each attribute that would result in the respondent’s
order of preference. This method helps a survey in a particular direction
and need not have to consider all the possible combinations of attributes.
The utilities can be determined using a subset of all the possible attribute
combinations. From these results, one can predict the desirability of a
combination.
Following questions can be answered by using a Conjoint Analysis:
• How important is each product attribute to the consumer?

• Which existing product do the consumers prefer?
• Which product attribute combination is the most preferred one?
• How good will my product do in the present market?
138
Following steps are followed to undertake any conjoint analysis marketing

research:
1. List all features.
2. Filter not so important features to retain few yet comprehensive list to

allow respondents to freely choose specific features.
3. Create an appropriate feature ranking approach.
4. We can have additional research parameters of importance attached to

each features.
5. Post collection of all responses, rank based (descending order of

importance) features list will emerge.
6. Ranking and importance given, can help marketer to determine what is

essential and its importance to customers (to determine premium).
7. Consider product development, re-work marketing plan, promotion

approach, etc can be developed to capitalize out of the research
findings.
Conjoint analysis assumes that consumers make purchases by considering

all attributes simultaneously. The ability to analyze several attributes at
once distinguishes the conjoint analysis from other traditional methods,
where each attribute is considered separately.
Conjoint analysis helps to discover how consumers make a trade-off

between the various possible attribute combinations available. In conjoint
analysis, consumer preferences are dependent variables and product
attributes are independent variables.
139
5.8 Correspondence Analysis
In normal scenario, there is always some decision aspect linked with

another aspect, e.g., brand image-price premium, flavor-product selection
and likewise. And in pharma marketing aspect like symptoms and it’s
treatment. Correspondence Analysis is a powerful method that allows
studying the association between two qualitative variables.
Correspondence analysis responses generate graphical representation of

the interactions between the two categorical variables. The result of a
correspondence analysis is a two-dimensional graphic representation of the
association between the rows and columns of the table. Correspondence
analysis brings our perceptual mapping like graphical representation.
When to Use Correspondence Analysis?
• When you wish to grasp an overall perception of the inter-objects

association.
• Useful in analyzing consumer perception, brand positioning and such

relationships.
Following questions can be answered using correspondence

analysis:
• Who are my customers?

• Who else can be my customer?
• What new products should I create?
• Who should be targeted by using new products?
140
5.9 Discrete Choice Modeling
Discrete Choice Modeling is used to evaluate the consumer choice. In a

discrete choice analysis, each consumer chooses one combination of
attribute levels from a particular set of attribute level combinations. A set
of attribute level combinations is called as a Choice Set. Each consumer
may be asked to choose one combination from several different choice
sets. The attributes of the product that define the choices are called as
Choice Attributes to distinguish them from other attributes that may be of
interest but do not contribute to the definition of the choices. For example:
You may want to include the demographic variable related to consumers in
the analysis.
Following questions can be answered with a discrete choice

analysis:
• Which combination of attributes is most likely to be chosen by the

consumers?
• Which combination of attributes is least likely to be chosen by the

consumers?
• What is the probability of my product being chosen by the consumer?
141
5.10 Multidimensional Scaling
Multidimensional Scaling (MDS) analysis takes consumer judgments of

similarity of pairs of products and produces a map of the perceived
relationship among the products. Each consumer evaluates the similarity of
each pair of products. MDS determines the relative similarity perceived by
consumers among all products. The results enable the researcher to
identify the products which the consumer sees as similar.
Following are some questions that can be answered by MDS:
• Which products do consumers see as similar to my products?
• Which products do consumers see as different products than my

products?
Multidimensional scaling will give you the ability to view different aspects of
your products and compare the same to your competitor’s product. The
goal of multidimensional scaling aids to detect meaningful underlying
dimensions that allow the researcher to explain observed similarities or
dissimilarities between investigated objects.
Multidimensional scaling (MDS) can be considered to be an alternative to

factor analysis. In general, the goal of the analysis is to detect meaningful
underlying dimensions that allow the researcher to explain observed
similarities between the objects are expressed in the correlation matrix.
With MDS, one may analyze any kind of similarity or dissimilarity matrix in
addition to the correlation matrices.
MDS can be said to be a data reduction technique. Its basic objective is to

find out the hidden structure of a set of data. It helps the researcher to
find and represent the proximities between objects as in the map.
The MDS helps the researcher to map the objects in a multidimensional

space, such that their relative positions in the space show the degree of
perceived proximity or similarity amongst them.
142
The importance of MDS is as follows:
1. MDS helps in the identification of attributes on the basis of which it

evaluates the product.
2. MDS enables the positioning of different products or brands on the basis

of their attributes.
3. MDS helps to generate a perceptual map, indicating the location of the

brands on the basis of attributes.
The MDS technique is based on the assumption that people perceive a set
of objects as being more or less similar to one another on a number of
dimensions instead of one. The inter relationship among the variables in
the set can be represented by geometrical techniques using MDS.
The MDS technique enables the researcher to study the perceptual

structure of a set of stimuli and cognitive process underlying the
development of this structure. For example, sports analysts employ
different multidimensional scaling techniques in an effort to scale various
strength areas of the team members from the soccer team, and to
determine the appropriate labels for the dimensions along which these
stimuli will vary. MDS is a very important tool in attitude measurement and
the techniques falling under MDS are modern and more advance as
compared to one-dimensional measurement techniques. This is used to
measure perceptual mapping in multidimensional space of objects like
company image, advertisements, brand evaluation, etc.
The computations involved in MDS are complicated. Hence, this technique

is not very widely used though it may have several advantages. Many
methods under MDS are laborious for data collection and analysis. This
technique is best suitable for use in behavorial sciences.
143
5.11 Multidimensional Preference Analysis
In a conjoint analysis, the consumers indicate their preferences for

products that are composed of attributes. In market research, sometimes
the data available consists of consumer preferences for products for which
attributes are not defined. In such cases, MULTIDIMENSIONAL
PREFERENCE ANALYSIS (MDPREF) is used to analyze such data. MDPREF
analysis is a principal component analysis of a data matrix with columns
corresponding to consumers and rows corresponds to products. The
resultant analysis plots several patterns which reveal consumer preference
patterns for the products.
Following are some questions which could be answered using

MDPREF:
• Who are my customers?

• Who else should be my customer?
• Which new products should I create?
5.12 Pricing Research
Pricing research is one of the very critical research areas of marketing

research.
There are four main approaches in this domain:
• Gabor-Granger technique.
• Van Westendorp technique.
• Brand price trade-off.
• Conjoint analysis.
Selection of the right technique depends on the problem you are trying to
solve.
Gabor-Granger Technique (Likelihood of Purchase Pricing): Gabor-

Granger pricing research method is named after the economist who
invented this method in the year 1960. In this method customers are
asked through a survey, if they would buy a product at a particular price.
The price is changed and again respondents are asked specifically whether
they can buy or not. From the responses derived the optimum price is
144
judged and worked out for each individual. By taking a sample of

customers, we can workout what levels of demand would be expected at
each price points across the market as a whole. Using this estimate of
demand, the price elasticity (expected price) can be calculated and so the
optimum price in the market can be established. The revenue optimum can
be different from the profitability optimum.
Gabor-Granger Output
Optimum Price
A weakness of the Gabor-Granger model is that customers may understate

the price they will pay (Sometimes they may overstate). Gabor-Granger is
only used when considering one product in isolation, where in real life they
would be facing a multiple choice of products.
Van Westendorp Technique: This is a more sophisticated variation of the

Gabor-Granger model. This model uses the rates of each price on a scale
from too cheap to too expensive. The resultant price space determines the
options and helps to decide price tactics. This technique is mostly used for
price positioning study rather than the price estimation study.
Pricing and Conjoint Analysis: This technique is most popularly used for
pricing. This is based on the conjoint analysis and is considered more
reliable than any other technique. Conjoint is excellent in understanding
how the choices are made, and consequently the importance of price.
Conjoint analysis is a more technical and advanced form of research
technique, and requires a high degree of design skills. It is of advantage to
145
the researcher if the research for pricing is conducted as a part of the

conjoint study research for the product and service features.
In a conjoint analysis, customers trade-off price against other product

features. By observing how customers make decisions, the economic
impact of price changes can be assessed as can be balanced-value
positions for price positioning.
5.13 Advertising Research
Any research designed to understand, test and analyse an advertisement

and ad appeal is known as Advertising Research.
In this research, data collection methodologies used are as below:

(a) Observations
(b) Depth interviews
(c) Focus groups
(d) Structured surveys
(e) Longitudinal panels.
The research may be focused on a specific advertisement or a campaign,

or it may be directed at a more general understanding of how the ad
works, or how consumers pick up the relevant information from the
advertisement. It can entail a variety of research approaches like
psychological approach, sociological approach, economic approach etc.
Advertisement research is focused on improvement of efficiency in
advertising.
Types of Advertising Research: Advertising research can be

classified in two types:
• Customized
• Syndicated.
Customized Research is conducted for a specific client to address that

client’s needs, Client under research can only have an access to the
research.
Syndicated Research is a single research study conducted by a

researcher with its results available for many others also.
146
Pre-market Research: Pre-market Research can be conducted to

optimize advertisements for any medium, such as: Television, Radio, Print
media (Magazine, News paper, Mailing), Outdoor holdings such as
(Highway posters, Bus Posters, etc.), Internet advertisements, etc.
Different methods are applied to gather information.
The Popular methods are: pre-testing and post-testing methods.
Pre-testing methods: Pre-testing is a form of customized research that

predicts in market performance of an advertisement before the ad is aired,
by analyzing the levels of audience attention to brand linkage and
motivation. Effective communication of the message the ad intends to give
and flow of emotion are also another crucial factors.
Pre-testing is carried out on ads while they are in the raw stage some
times, to identify the weak spots within the ad to improve the
performance. Sometimes it is used to pull out key elements from the ad for
eye tracking purposes.
Following are the popular pre-testing methods used in Advertising

Research:
(A) Consumer Jury Survey: This method involves another alternative

advertisement which is exposed to the jury for securing their opinions
and reactions for the advertisement. This test is designed in one
destination and sample of prospects (Juries) who are independently
visited by the interviewers. Juries mail their preference of an ad from
the set of ads given to them for evaluation.
Advertisements which are unpublished or sealed are strictly opened in front

of the consumer juries either in personal or a group interview. The juror
(the person who is evaluating) is instructed to rank the advertisements
according to his judgment.
Word Test: Advertisement messages are presented to the juries with

alternative wordings or lines to select the best ones.
Gift Test: In this, the consumer jury is asked to choose the best brand he
can think of gifting, based on the ad criteria of which brand advertisement
he feels is the most personal to him/her.
147
Projective technique: In this technique, the respondent jury is given few

types of products to use and evaluate. In this, actually both the products
are actually same, but accompanied by different advertisements.
The major value of this test is that it separates the weaker ad from the
stronger one. The above mentioned pre-tests are popular methods since
they are affordable, quick to conduct and economical to check on the
subjective judgment of the management.
(B) Return Coupon Analysis: An advertisement sometimes contains an

offer. Consumers are requested to return that offer to the dealer
concerned while making a purchase of goods, on the basis of such
return coupons the theme advertisements or various elements of
advertisements are measured.
Different techniques employed for this type of analysis are:

(i) An open coupon with standard premium
(ii) A hidden offer
(iii) Split-run technique
An open coupon offer is generally an offer of a free sample product either

free or along with some other product of the firm. This method is
considered to be a more accurate measure of the selling power of the
advertisement than unrelated premium.
(C) Local Area Test: This is a latest technique of testing the effectiveness
of different advertisements in a group of local markets employing
different advertisement themes, through their effects on sales or
through the ability of advertisements to communicate the message
effectively under normal working conditions.
Different advertisements in different markets are collected which are

similar in characteristic; sales data either from the retailer or the
wholesaler.
This test is not very popular, since the difficulty in controlling many
variables and long time problems may distort the results such as
differences between the markets, competitive activities, sales efforts,
reasonable demands and the media used.
148
(D) Controlled Experiments: These experiments are very similar to the

local area test; the only thing is they are conducted on a smaller scale.
The methods employed are:
a. This method is supposed to make use of display materials and sign

boards at a point of sale. Different advertisements containing different
themes are displayed in different groups or stores. The effectiveness of
each advertisement then can be measured by the resulting sales.
b. Another method is making an attempt to sell the product from door to

door conveying different messages to the consumers. The percentage of
the successful sales may be on the basis for measuring the value for
each theme.
c. Specific method – Under this method, handbills with coupons are

distributed for offering cash discounts to the consumers. Each handbill
contains different advertisements for the product. The redemption of the
coupons may be the indication of sales effectiveness of different
advertisements.
Post-testing
Post-testing studies provide either periodical or continuous monitoring of

the market, pertaining to the brand’s performance which includes brand
awareness, brand preference, product usage and attitudes.
Some of the post-testing approaches simply track changes over a time,

while others use various methods to quantify the specific changes produced
by advertising—either of the campaign as a whole or of the different media
utilized.
In general, the advertisers use post-testing to plan future advertisement

campaigns, so that the approaches that provide the most detailed
information on the accomplishments of the campaign are most valued.
Among the two type’s post-testing methods have gained maximum

popularity.
149
Continuous tracking, in which changes in advertising spending are

correlated with the changes in the brand awareness
Longitudinal studies, in which the same group of respondents are tracked

over time. With a longitudinal approach, it may be possible to go beyond
brand awareness, and to isolate the impact of a campaign on specific
behavioral and perceptual dimensions, and to isolate the campaign impact
by medium. For example, one of the SUV manufacturer did post-testing
approach over two years to study impact of various advertising
communication of self and competition on their SUV as well as
competition’s SUV. It helped every time to tweak any unwarranted issue or
leverage more impacting aspects subsequently.
Various Methods Employed under the Post-testing Techniques
i. Inquiry/coupon response method: These two testing methods are

used to study the effects of advertising on the dealers and consumers.
Here, the advertisement contains an offer or an invitation to the
consumers and dealers, and this is useful for judging the effectiveness
of the advertisement.
ii. Readership survey test: It is an attempt to find out what readers

read and how well they remember the specific advertisement. This
method is very useful for judging the effectiveness of the
advertisement.
iii. Recognition testing method: This method is an attempt to estimate

the contents of an advertisement which the respondents have already
seen. The respondents are asked to point out the contents of an
advertisement which they might have seen. Sometimes, questions are
also asked about the headline, the text and the illustration given in the
advertisement. The purpose is to understand the degree of impact of
an advertisement on the reader.
iv. Recall testing method: Recall tests are applied to measure the
effectiveness in terms of allocation, interest and impact of
advertisements after they have been launched. Here, the respondents
will be asked specific questions in order to find out the extent to which
they remember about the advertisement.
150
v. Sales test method: Effects of advertisements on the sales turnover

can be used as a basis for judging the efficiency of an advertising
campaign. For such sales turnover testing, several cities are required
to be selected as a testing area. In this particular method, one city is
taken as a test area and another city is tested without a campaign.
The increase in the sales volume of the cities is collected and studied
for finding out the effectiveness of the advertisement campaign.
Let us consider an example of instant coffee to be advertised on the

television and in the press.
Techniques which can be used are as follows:
a. Television: Advertisements can be tested in various ways. A low cost

test can be employed in the beginning which may involve showing the
animated movie to the target audience. An animated film may have the
obvious advantages of low sunk cost, if at all it is decided to scrap the
project or to make alteration in an advertisement. In a later stage, the
same test can be carried out with the finished product, although the use
of the test on the finished product is expensive, however it is more
realistic. In both the cases, the advertisement is shown to the audience
in the theatre also. Respondents are asked not to think about whether
the advertisement is good or bad, but what they understand from the
same, the type of characters displayed in an ad, the association of the
characters, features of the ad, etc. This research is generally
quantitative and also to judge unanticipated reactions.
b. Press: An Advertisement can be tested by including the test

advertisements in a folder of other advertisements, all in a similar stage
of finish. An alternative and possibly more realistic version of the test is
to show the advertisement as a part of a specifically prepared magazine
or a newspaper. In both the cases, after a respondent from the target
market has sufficient reading time, he or she is asked questions about
which ad is remembered, what they contained, their association and so
on. It would be also possible to test the ad response from the coupon
response. However, recently this method has lost its popularity as
linking coupons with measuring the advertising response in today’s
electronic age is not very helpful.
151
c. Laboratory Method: Both television and press methods can be tested

by laboratory methods such as the eye-blink test or pupil dilation
method. However, translating the psychological responses accurately is
a complicated process.
5.14 Copy Testing
Popular companies spend millions of rupees on advertisements every year.

Therefore, it is significant to know the effectiveness of an advertisement.
The main purpose of any advertisement is to arouse the interest of people
in the company’s products. The Core issues are – Can everyone be pursued
by the same advertisement? Will the same advertisement satisfy all types
of people?
People differ from each other in their wants and other motives so greatly;
one will need to find n number of ways to arouse interest in every
individual, that’s why some advertisements are more effective than others.
At times, the huge amount of time and money spent in making an ad is

wasted simply because the appeal of an ad is not conveyed to the right
kind of an audience.
In the business of consumable products, companies rely upon ads very

heavily to make an impact on the minds, emotions, actions of the audience
favorable towards the product of the company.
Advertising, though very expensive, is vital for the business success. The
advertiser’s main motive for the audience is to see the product or read
information about the product, so it may arouse desire for the product and
the action of buying the product is taken to fulfill the desire.
Copy Testing is a tool involving procedure where the effectiveness of the

advertisement is measured before it appears in its final form, during and
after the exposure to the audience to determine whether and to what
extent, has it accomplished its task.
The main purpose of copy testing is to control the future

effectiveness of the advertising.
152
It addresses the following questions:
a. Will a proposed copy theme achieve the objectives of advertising?
b. Does this advertising campaign create desired interest levels and

product image?
c. Will the advertisement deliver the right message to the audience?
Copy testing is a very important part of the advertising management. In

the recent past, this industry has developed globally from the professional
and scientific point of view. From the scientific point of view, advertising
research reflects the application of theories and methodologies that derive
from psychology, sociology and economics.
Copy testing is a specialized field of marketing research. It is defined as

research to determine an ad’s effectiveness based on consumer responses
to the ad and covers the print media, TV, Radio and Internet, etc.
In case of ad research pre- testing of an ad, it is advisable to predict how

effectively an ad will perform based on the analysis of the feedback
gathered from the targeted audience.
Copy testing is used to ensure that the advertisement will be well received;
no surprises will be surfaced after the ad is released. Copy testing reduces
the chances of an ineffective ad which will not be contributing value to the
brand or company image.
Copy testing is usually conducted as a large scale quantitative research

study where the target audience is exposed to the advertisement.
Copy testing provides diagnostic information about advertising. It also

helps to reduce the controversial element around the predictive values of
quantitative advertising research. It acts as a reliable support for the ad
campaign decision.
153
Copy testing research answers the following questions:

(a) What message are we really communicating?
(b) Is any one offended by our advertisement?
(c) Does our advertisement project the right image?
(d) Are they stating the right things?
Features of a good copy testing system are as follows:
1. It provides the measurements which are relevant to the objectives of

the advertisement.
2. It provides multiple measurements – because single measurements are

generally inadequate to assess the performance of an advertisement.
3. It is based on a model of human response to the communication – the

reception of a stimulus, the comprehension of the stimulus and the
response of the stimulus.
4. It demonstrates the reliability and validity of an advertisement.
5.15 Readership Surveys
The main objective of this research is to provide advertisers, advertising

agencies, and publishers the relevant information for the efficient use of
the press, and also to provide a basis for the assessment of other media
like cinema, radio, television.
One such survey is the National Readership Survey (NRS), which

provides information to the media owners, advertisers, etc. about the
assessment and efficient use of different media for advertising. It gives
more specific information on:
a. Readership information of all daily newspapers.

b. The extent of TV viewership and radio listenership.
c. Degree of duplication within the publication and differences between
media.
d. The socio-economic characteristic of the readers, viewers and
listeners.
154
A Readership Survey helps to collect data on certain product fields at a

very low cost. The scope of the data service depends upon the requirement
of the sponsor. The information collected by the surveys help the sponsors
to find out media habits and to identify target groups.
The method of readership surveys also provides information on the

following:
a. Primary and secondary readership
b. Place of reading
c. Profile of readers
d. Extent of business travel and use of business surveys
Viewership Survey (TRP System): The TRP SYSTEM was invented in

order to find out the viewership habits of the TV audience for different
programmes on TV channels. It indicates the popularity of the TV
programme.
TRP stands for Television Rating Points.
The TRP system reports on the daily viewership of individuals above 8

years residing in the TV owning homes in 9 key metro cities of India.. This
is a diary based system which reports on quarter hour rating for both
cables and satellite TV channels as well as state-owned terrestrial network.
Currently, IMRB is completely shifted on people meter, based TRP system.
The TRP people meter system is currently operational in all metro cities
and slowly will have large sample of metered homes all over India.
TRP survey is managed by the Indian Market Research Bureau (IMRB)

in 9 cities (Mumbai, Kolkata, Delhi, Chennai, etc.). The programme rating
of TRP is based on the percentage of panel members who have viewed the
particular TV programmes.
Generally, 1 TRP = 1% TV audience. With the help of TRPs, advertising

agencies can select the programmes which are having a higher viewership
to place their advertisement.
TRP Panel Members: Adults from TV owning houses and adults from non-
TV owning houses who watch TV at least once a week.
155
The Viewership Surveys (Using Telephone Systems): This includes

the telephonic interviews being conducted by telecaller researchers. The
data is entered in the computer immediately and collated for fresh results.
This operation is performed in the presence of supervisors on site. The
survey is designed to allow for the entire sample and also to allow for
analysis of various subsets of the sample.
5.16 AD TRACKING
Ad tracking is also known as a Post-testing or Ad Effectiveness Tracking in

market research. This method monitors a brand’s performance including
brand and advertising awareness, product trial and usage and attitudes
about the brands and their competition.
Depending on the speed of the purchase cycle in the category, tracking can
be done continuously or it can be pulsed, with interviews conducted in
widely spaced waves (every three or six months). Interviews can either be
conducted with separate or matched samples of consumers.
Since the researcher has information on when the ads were launched, the
length of each advertising flight, the money spent, and when the
interviews were conducted, the results of ad tracking can provide
information on the effects of advertising.
Purpose of Ad Tracking: The very purpose of ad tracking is generally to

provide a measure of the combined effect of media weight or spending
level, the effectiveness of the media and the quality of the ad execution.
Advertisers use the results of the ad tracking to estimate the Return On

Investment (ROI) of advertising, and to refine advertising plans.
Sometimes, tracking data are used to provide inputs to marketing mix
models which marketing science statisticians build to estimate the role of
advertising, as compared to the pricing distribution and other market place
variables on sales of the brand.
Today, most of the ad tracking studies is conducted via the Internet. Some
ad tracking studies are conducted continuously and others are conducted
at significant points (Typically before the ad appearing and then impact
after the ad disappeared, again after sometime when the ad is running for
a while).
156
Ad tracking typically uses two different approaches, although both have an

objective of measuring the effectiveness of the ad. Typically, the
respondent is either shown a brief portion of the commercial or few
memorable still images from the TV AD. Other media are typically cued by
using either branded or un-branded visual of the ad.
Respondents are asked the following questions:
a. Do you recognize this ad? (Measure of recognition)
b. Please write the name of the sponsor of this programme (Unaided

awareness measure)
The continuous tracking design analyses advertising awareness over time,

in relation to the ad spending; separately, this design tracks the brand
awareness and then develops indices of effectiveness based on the
strength of the correlations between ad spending and brand awareness.
The most popular alternate approach to the continuous tracking design is

the longitudinal design, in which the same people are interviewed at two
points in time. Changes in brand measures (for example, brand purchasing
and future purchase intentions) exhibited amongst those who have seen
the advertising as compared to the changes in the brand measures that
occurred among those unaware of advertising. By means of this method,
the researchers can isolate those market place changes that were produced
by advertising as versus those that would have occurred without
advertising.
5.17 Viral Marketing Research
Viral Marketing Research is a sub-unit of marketing research which

measures and compares the ROI (Return on investment) of advertising and
communication strategies designed to exploit social networks.
1. The selling effectiveness of specific communications
2. The viral marketing potential of those communications within specific

media (Internet video, texting, print ads, television, etc.).
157
Viral Marketing describes strategies that encourage individuals to pass the

marketing message to others.This type of marketing creates the potential
for exponential growth in the message’s exposure and influence.
Algorithms are used to derive the respondent level co-efficient of the

Social Networking Potential (SNP). These co-efficients are integrated
with the respondent level data measuring the selling effectiveness of
specific communications and the viral marketing potential of those
communications within specific media, e.g., Internet video testing,
Television ads, etc.
Examples of Viral Marketing Research: A DVD player manufacturer is

planning to launch a new model with an innovative operating console, viral
marketing research can be used to compare the ROI of several strategies
among the social networking, potential respondents within the target
audience. These results help the manufacturer to maximize the sales.
5.18 Measurement Of Customer Satisfaction
Measurement of customer satisfaction is the common factor in all

marketing surveys and it is one major component of marketing research
out of the three components.
Marketing research studies has three major components:
(a) Concept testing (b) Market segmentation (c) Measurement of

customer satisfaction.
Measurement of customer satisfaction is required to understand, how well

the company’s products are accepted, whether it meets the expectations of
their customers or whether they exceed their expectations. Today,
structured customer satisfaction also have digital net experience,
dealership ambience, sales consultant’s professionalism, documentation
process efficacy and delivery included in it.
Customer expectations are reflected from the various aspects of the

company’s activities. This includes products, services, operations and brand
name etc. Customer satisfaction is an overall psychological evaluation of
the company in totality.
158
Customer satisfaction research is a path of building a loyal customer (both

consumers and business markets).
Customer satisfaction measurement studies tracks the customer loyalty,

strength and vulnerability. In this particular research, we learn about the
customer’s perception about the products, similar products from the
competitor brand, product configurations and cross-category substitute
brands.
A customer satisfaction measurement study involves quantitative market

surveys, telephonic surveys, mail surveys, online surveys, etc. Such data
collected, when consistently repeated over a period of time, can provide
trend information and alarming situations. This is very useful to guide the
new product development process, as well as product advertising and
branding strategy programmes.
Organizations from the marketing perspective are focused on the

two activities mentioned below:
(a) Retention of existing customers

(b) Developing new customers
Customer satisfaction measures are very critical for any company because
customer satisfaction is a strong predictor of customer retention, customer
loyalty and opportunity of product repurchases.
Satisfaction measures involve three important elements for

evaluation of the products or services:
(a) Cognitive (thinking/evaluation)

(b) Affective( emotional feelings/ like-dislike)
(c) Behavorial (current/ future actions).
Customer satisfaction ultimately leads to customer loyalty and product

repurchases.
159
Satisfaction measurement questions typically include:
a. Overall, how satisfied are you with an XYZ product? (An overall
satisfaction measure – emotional element).
b. Would you recommend XYZ product to your family and friends?

(Measure of loyalty – affective)
c. How satisfied are you with the taste of XYZ? (Attribute satisfaction
measure – affective and cognitive)
d. Do you intend to repurchase XYZ? (Behavioural measure)
Satisfaction can influence the post purchase actions such as: word of
mouth communications and repeat purchases.
In marketing management, customer satisfaction is considered as an

important goal as much as profitability and social responsibility.
Customer satisfaction is influenced by perceived quality of products and

service attributes, benefits, features, and it is moderated by customer
expectations regarding the products or service.
160
Effective measures of customer satisfaction: A consumer’s attitude

(liking/disliking) towards a product can result from any product information
or experience whether perceived or real. It is meaningful to measure
attitudes towards a product or service that a consumer has never used, but
not satisfaction.
Cognitive measures of customer satisfaction: A cognitive element is

defined as an appraisal that the product was useful (or not useful), fit the
situation (or did not fit), exceeded the requirement of the problem/
situation (or did not exceed). Cognitive responses are specific to the
161
situation for which the product was purchased and specific to the
consumer’s intended use of the product, regardless if that use is correct or
incorrect.
Behavioural measures of customer satisfaction: Customer

dissatisfaction is almost close to deep regret or disappointment while
satisfaction is linked to glad and joyous faces. Many consumers
immediately react on the choice made, “good choice” OR “I am glad that I
bought this product”. Often, behavioural measures reflect the consumer’s
experience and individuals associated with the product (customer
representative) and the intention to repeat that experience.
Leonard Berry in the year 2002 defined ten different dimensions of

satisfactions as:
Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-

Departmental Team-work, Frontline Service, Commitment to the Customer
and Innovation.
Berry’s dimensions are often used to develop an evaluative set of

satisfaction measurement questions that focus on each of the dimensions
of customer satisfaction in a service environment.
A pragmatic approach to satisfaction measurement is to examine the gap

between the customer’s expectations of performance and their perceived
experience of performance. This satisfaction gap involves measurement of
both perception of performance and expectation of performance for a
specified product or a service.
Customer expectation and types of Customer expectations: When

we decide to purchase a product, the research process starts from gaining
the information from the market about our requirement from various
sources, such as advertisement, company sales person, word of mouth
from friends and associates, etc. The information, thus received influences
our expectations and ability to evaluate quality, value and the ability of the
product or service to meet our needs. Customer expectation levels for
attributes, features and benefits of the products can be identified by
explicit and implicit questions.
162
Explicit expectations: These are mental targets for the product

performance, such as well recognized quality standards. For example, if a
colour printer were to deliver 11 pages per minute and high quality colour
printing, but in reality the printer is only delivering 3 pages per minute and
reasonable quality printing, then the cognitive evaluation comparing
product performance and expectation would be 11 PPM – 3PPM + HIGH –
GOOD, with each item weighted by their associated performance.
Implicit expectation: This method represents the norms of performance

that reflect accepted standards established by the business in general,
other companies and industries.
Static performance expectation: This method addresses how

performances and quality for a specific application are defined. Each
systems performance measures are unique, though general expectations
relate to a quality outcome.
Dynamic performance expectations: They are about, how the product

or service evolves over a time and includes the changes in support and
product or service enhancement is needed to meet future business or user
environments. Dynamic performance expectations may help static
performance expectations as new users, integrations, or system
requirements develop.
Technological expectations: They focus on evolving state of the product

category. For example, mobile phones are continually evolved. Mobile
service providers, in an effort to deal with the desire to switch to a new
technology phone, market rate plans with high cancellation penalties. The
availability of low profile phones with e-mail, camera, MP3 and bluetooth
technology changes technology expectations, as well as the static and
dynamic performance expectations of the product. These highly involving
products enhance perceptions of status, ego and self-image, and can even
invoke fear when the product is not available.
Interpersonal expectations: This involves the relationship between the

customer and the product or service provider. Person to person
relationships are increasingly important, especially where the products
require support for proper use and functioning.
163
Expectations for interpersonal support include technical knowledge and

ability to solve the problem, ability to communicate giving time to
problems, courtesy, enthusiasm, patience, helpfulness, understanding
about the situation, communication skills, customer perceptions,
professionalism of conduct including image and appearance.
For each of the expectations mentioned above when fulfilled, results into
customer satisfaction. The perceived quality and value are always critical
factors and they directly influence the decision of repurchase and loyalty.
Customer satisfaction measurement can help:
• Measure customer approval levels.

• Improves customer retention.
• Gauge interest in new products and service offerings.
• Pinpoint areas of improvement.
A consumer satisfaction survey:
• Creates satisfaction surveys that are user-friendly and action-oriented.

• Develops relevant and meaningful survey questions based on core issues.
• Produces efficient indicators
• Helps in choosing the most appropriate scales for research
• Prioritizes targets
• Identifies and fixes end-user problems
It will be worthwhile to mention that automobile industry uses this

technique since last so many years.
J.D. Power has developed entire customer satisfaction measurement

operations across the major automobile markets and offers its findings to
the automobile manufacturers. For sales side of customer satisfaction
measurement, they derive Sales Satisfaction Index (SSI) and for the post
sales, i.e., service side of customer satisfaction measurement, they derive
Customer Satisfaction Index (CSI). When report is ready, its synopsis gets
published in major newspapers and at the automobile manufacture’s end,
team gets in to action to find, where have they improved and where have
they fallen short of their customers’ expectations.
164
5.19 Mystery Shopping
Mystery Shopping is a tool used by the marketing research companies to

measure the quality of the retail service or to gather specific information
about specific products or services. Mystery shoppers pose as normal
customers, perform a normal task of purchasing the product, asking
questions, registering complaints and providing a detailed report of their
experiences.
The Origin of mystery is somewhere in 1940, as a way to measure the

company employees integrity. Mystery shopping uses various tools such as
simple questionnaire, audio recording, video recording, etc., for their
assessments.
Mystery shopping is effectively used today for: (a) checking network

integrity, (b) selling effectiveness, (c) infrastructure and its utilization, (d)
process compliance and efficacy and (e) competitive information gathering.
It can be effectively used, wherein organization wants to capture near
natural scenario based feedback.
Many mystery shopping companies are operating online; they are

administered through the Internet, allowing potential mystery shoppers to
use the Internet to register for their participation:
Method of Operation: A client company and service provider for mystery

shopping jointly decide for a survey model and agree upon the information
needed to be collected and formats of presentations. These are further
drawn into the survey instruments and assignments that are allocated to
shoppers registered with the mystery shopping company in question.
165
Following are some of the common details and information points

for mystery shoppers:
• The date and time of the visit.

• Name of the store and each side visited.
• Number of employees in the stores on entering.
• How long it takes before the mystery shopper is greeted.
• Names of the employees (as much as possible).
• How was the greeting! Friendly/unfriendly.
• Questions asked by the shopper to find the suitable product.
• The types of products shown.
• How salesmen are attempting to close the sale.
• Whether the employee offers the mystery shopper to come to the stores.
• Cleanliness of the store and presentation of the merchandise.
• Speed of service.
• Compliance with company standards relating to the company service,
store appearance, etc.
Mystery shoppers are often given instruction to make a transaction atypical

type to make the test of knowledge and service skills of the employees
more stringent or specific to a particular service issue (creating a scene on
purpose).
166
5.20 Summary
Marketing Mix Research: The research in marketing mix is very

useful in deciding where to place the, when to place and how to
place the product.
A frame work for the research design was developed by Nigel Bradley in
year 2004. This is very similar to 4Ps of marketing mix.
These framework discuses 4 stages of the design:
(a) Purpose (b) Population (c) Procedure (d) Publication
Some of the major techniques are as mentioned below Marketing mix

research:
Research with respect to 4Ps:

• Product research
• Pricing research
• Distribution research
• Promotional research
Concept Testing: Concept testing is an attempt for identifying the

potentially successful products This process focuses on judging person’s
reaction to the idea or the concept of the product, helping in making
preliminary decision such as Go/No Go. Concept testing is conducted much
before the product is marketed. Hence, while promising a high probability
of consumer acceptance, the attempt minimizes the research and
development costs and marketing costs. The process of concept testing
depends upon the type of the product being developed.
A typical test procedure as follows:
• Define the purpose of the test.

• Choose a survey format.
• Communicate the concept or the idea.
• Measure the customer response.
• Interpret the results.
• Present the results.
167
Brand Equity Research: This method is an attempt to put a value on the

strength of a brand in the market, in the eyes of the consumers, investors.
Growth in the brand equity correlates to the growth in the stock values,
sales, profits, price premium, employee satisfaction, etc.
The core measures relate to: Cognizance, Awareness, Usage and Loyalty.
The brand image research is important for the following reasons:
a. Brand recognition: This activity is carried out to find out how well
consumers are familiar with the company’s branded product. If
consumers can identify the product on the basis of attributes like taste,
size, shape, etc., the product enjoys good image premium with the
consumers.
b. Brand preference: Brand image survey helps in finding out the

consumer preferences likes and dislikes, attitudes, etc. This data is very
useful in understanding and creating a favourable image about the
brand.
c. Brand loyalty: Loyalty signifies the faithfulness of the consumer to the

product and shows the conviction on certain attributes of the product
which makes him/her buy repeatedly for a very long period. This study
also suggests many ways to enhance the brand loyalty, through
advertising, promotions, etc.
d. Brand awareness: It is necessary to find out how far advertising and

other techniques are useful in creating brand awareness about a
product. Brand image research is normally conducted by collecting
information on the brands of the company.
Brand Name Testing: Brand name research is significant when naming a

business or choosing the right product or service. Choosing an appropriate
name is balancing an art and science.
Impact factors associated with this are: Emotional bonding power,

memorizing, latent association, fit to concept, ability to pronounce and
resonant.
Eye Tracking: Eye tracking is a technique used to determine where a

person is looking at. The concepts underlying eye tracking are very simple:
168
It tracks the movement of the user’s eyes and note the pupils are focused
on which objects. This allows a researcher to understand from the
observation, where the subject is focused whether subject studying the
features or curious about the operations.
Conjoint Analysis: It is a statistical technique used in marketing research

to determine how people value different features that make up an
individual product or service.
Correspondence analysis: Market research involves categorical data

frequently. Correspondence analysis characterizes the associations between
the levels of two or more categorical variables by performing weighted
principal component analysis of a contingency table. The result of a
correspondence analysis is a two dimensional graphic representation of the
association between the rows and columns of the table. The plot represents
a point for each row and column of the table. Rows with similar patterns of
counts produce points that are close together. Similarly columns with
similar patterns of counts produce points that are close together.
Discrete Choice Modeling: Discrete choice modeling is used to evaluate

consumer choice. In a discrete choice analysis each consumer chooses one
combination of attribute levels from a particular set of attribute level
combinations.
Multidimensional Scaling (MDS): Multidimensional scaling (MDS)

analysis takes consumer judgments of similarity of pairs of products and
produces a map of the perceived relationship among the products. Each
consumer evaluates the similarity of each pair of products. MDS
determines the relative similarity perceived by consumers among all
products. The results enable researcher to identify the products which
consumer sees as similar.
Pricing Research: Pricing research is one of the very critical research

areas of marketing research. There are four main approaches in this
domain: Gabor-Granger technique, Van Westendorp technique, Brand price
trade-off, Conjoint analysis.
Advertising Research: Any research designed to understand, test and

analyse an advertisement and ad appeal is known as advertisement.
169
In this research data, collection methodologies used are as below:
(a) Observations (b) Depth interviews (c) Focus groups (d) Structured
surveys (e) Longitudinal panels.
Pre-testing Methods: Pre-testing is a form of customized research that

predicts in market performance of and advertisement before the ad is
aired. By analyzing the levels of audience attention to brand linkage and
motivation.
Post-testing Methods: Post-testing, studies provide either periodical or

continuous monitoring of the market, pertaining to brand’s performance
which includes brand awareness, brand preference, product usage and
attitudes.
Copy Testing is a specialized field of marketing research. It is defined as

research to determine an ad’s effectiveness based on consumer responses
to the ad and covers the print media, TV, Radio, Internet, etc.
Readership Surveys: The main objective of this research is to provide

advertisers, advertising agencies, and publishers the relevant information
for the efficient use of the press and also to provide a basis for the
assessment of other media like cinema, radio, television, etc.
Viewership Survey (TRP System): TRP System was invented in order to

find out the viewership habits of the TV audience for different programmes
on TV channels. It indicates the popularity of the TV programme.
Ad Tracking: Ad tracking is also known as a post-testing or ad

effectiveness tracking in market research. This method monitors a brand’s
performance including brand and advertising awareness, product trial and
usage and attitudes about the brands and their competition.
Viral Marketing Research: Viral marketing research is a subunit of

marketing research which measures and compares the ROI (Return on
investment) of advertising and communication strategies designed to
exploit social networks.
170
Customer Satisfaction Measurement Studies tracks the customer

loyalty, loyalty strength and vulnerability. In this particular research, we
learn about customer’s perception about the products similar products from
the competitor brand, product configurations and cross-category substitute
brands.
A customer satisfaction measurement study: This study involves

quantitative market surveys, telephonic surveys, mail surveys, online
surveys, etc., such data collected, when consistently repeated over a
period of time, can provide trend information and alarming situations. This
is very useful to guide the new product development process as well as
product advertising and branding strategy programmes.
1. Presentment of the research report refers to _____________.

(a) Publication (b) Design (c) Purpose
2. The following report is a documented report which informs the firm

about investigation of the market activities:
(a) Sales analysis (b) Market analysis (c) Exploratory report
3. Customer satisfaction is largely a reflection of _____________.
(a) Attitude (b) Pleasure (c) Expectation
4. TRP system is used in which of the following surveys?
(a) Readership survey (b) Eye tracking (c) Viewership survey
5. Copy testing is a study of the _____________.

(a) Pre-test of an ad (b) Post-test of an ad (c) Test while the ad is on
6. Readership Survey is an assessment for the following media:
(a) Cinema (b) Television (c) Magazines
171
7. The Gabor-Granger technique is popularly used for following research:
(a) Ad effectiveness research (b) Pricing research (c) Brand name

research
a. Discuss the exploratory research method you will use to launch new
android economy model.
b. Discuss any suitable example of Descriptive Research.
c. Study J.D. Power’s Model of Customer Satisfaction Index (both SSI and
CSI).
172
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
173
TYPES OF RESEARCH DESIGNS
Chapter 6
Types of Research Designs
Objectives
After studying this chapter, students will understand the significance of

research design and various types of research design. The first step in
conducting research is to examine the reasons why a research is
undertaken. Determining a research objective sets the stage for the rest of
the research plan.
Structure:
6.1 Introduction to Research Design
6.2 Exploratory Research
6.3 Descriptive Research Design
6.4 Longitudinal Studies
6.5 Cross-sectional Studies
6.6 Experimental Research Design
6.7 Summary
174
6.1 Introduction to Research Design
• Purpose of research
• Research design
• Types of research
The first step in conducting a research is to examine the reasons why the
research is being undertaken. Determining the research purpose sets the
stage for the research plan with a stake in the outcome of the research, to
know the general philosophy of the project and it also establishes causes of
the research.
Another aspect essential in the study of marketing research is the

exploratory research and design. This particular chapter emphasizes on the
selection of an appropriate research design.
Marketing research serves as the foundation of marketing and it is used to
support all the marketing decisions.
Marketers use research to support decisions in 5 important ways.

1. Explanation
2. Prediction
3. Monitoring
4. Discovery
5. Hypothesis Testing.
The purpose of any research has to fall in to one of these 5 categories.
1. Explanation
This is the most popular purpose for which generally a research is
conducted. This is used to explain why something is occurring, for example
a marketing manager may carry the research as to why the competitor’s
sale in a certain territory is showing a sharp increase when it was predicted
to decline.
2. Prediction
Research is many times used in the assessment of the situation and also in
predicting the future, for example forecasting a demand for a newly
launched product. It is also used to predict a change in one variable with
respect to changes in another variable, for example changes in the sales
volume when the price is increased.
175
3. Monitoring
Decision makers in marketing management apply research to monitor if
the goals are being attained, for example the regional sales manager uses
this technique for evaluation of sales performance of territories in his
region, by comparing their track records over the past few years and with
respect to other territories.
4. Discoveries
Marketing managers are always perusing their marketing efforts to improve
sales. In the whole exercise, marketing managers have to evaluate various
options such as new product, changing prices, decreasing cost, promotions
and many more. This specific research is carried out to discover the
precision option which may be chosen. By discussions among the new age
teenagers, it was found that they dislike conventional system of shaving,
and thus the development of automatic shaver.
5. Hypothesis testing
The Researcher uses a test theory about a particular issue to prove or to
disapprove. For example a research analyst may find that purchasing
habits are differing from one customer to another. Hypothesis testing, thus,
relies on empirical analysis to evaluate the hypothesis. However, previous
described purpose for conducting the research can also be used for testing
the hypothesis. For example a marketing manager wanting to explain as to
why sales in a particular region are declining in specific regions and he may
also have a gut feeling about the occurrence therefore, he can combine this
explanation with the hypothesis testing.
176
Research design
Once a purpose of the research is determined, then researcher has to

isolate parameters about which specific information is needed.
Research Design is a detailed blue print of the research study or also it is

called as a road map in attaining its objective. A sound research design
helps to structure the research showing all major components of the
research project, details about the sample, measures, treatments and
methods of work trying to get answers to the research questions.
Research design is thus the plan, structure and strategic investigation to

obtain answers to the research questions. It is the overall framework of the
project which clearly indicates the required information to be collected,
source of information and procedures.
According to Pauline Young, “A research design is the logical and

systematic planning and directing of a piece of research. It gives an outline
of the structure and the process of the research program. Without a
concrete plan, no scientific study is possible’’.
The research design is a presentation of various steps in the research

process. These steps include selection of the research problem, defining
the research problem, formulation of the hypothesis, application of the
research methods like survey and documentation, bibliography data
collection, hypothesis testing, interpretation, presentment of findings and
report writing. The research design is a written plan which includes an
outline of what an investigator has to do from writing the report to the
operational implication up to final analysis of the data. The choice of
research approach depends on the nature of the research one wants to
conduct.
Types of Research
Generally, the research approach can be classified into one of the three
categories of the research approach:
• Exploratory Research
• Descriptive Research
• Experimental Research
177
6.2 Exploratory Research
Exploratory Research has the primary objective of developing insight into

the problem. It is the most commonly unstructured or informal research
being undertaken to gain background information about the general nature
of the research problems. Exploratory research is usually conducted when
the researcher does not know much about the problem or needs additional
information or needs more recent information.
Exploratory Research is also useful in establishing priorities among

research questions and learning about practical problems of carrying out
the research for example, what kinds of questions will the respondents be
able to answer? What are the barriers in contacting the appropriate
respondents? When the purpose of study is only exploration, then a flexible
research design is most suited because it provides an opportunity to
examine all aspects of the problem. Ideas occur as data is collected and
collated.
A good exploratory research design is flexible. It provides useful insight

and comprehension of an issue or a situation to the researcher. Exploratory
research is conducted to describe the nature of the problem accurately
when it has not been clearly defined. Exploratory research often concludes
that a perceived problem does not exist.
Exploratory research often relies on secondary research such as reviewing

of available literature, available data, and informal discussions with
consumers, employees, management, and competitors through interviews,
focus groups and case studies.
The result of an exploratory research are usually not useful for making
decisions, but they provide significant insight in a given situation which in
turn provide inputs in making decisions. The data collected and collated
through exploration may lead to suggestions of hypothesis for further
studies or an idea for a conceptual framework.
The exploratory research design being flexible, methods and questions may
change depending on what is found about the research as it goes along.
The results of the study will provide detailed observations made by the
researcher in an orderly manner. Conclusions can be drawn from the data,
which could be a hypothesis for further study or it could be a relationship
178
between the observations or it could be a proposed concept. This is the

purpose of the exploratory research.
Exploratory Research is used in the following situations;
• To define problems
• To establish research priorities
• To develop a hypothesis
• To gain background information.
• To take Go/No Go decisions, as a precursor to the primary research
Sometimes Exploratory Research is also termed as Formularize Research,

in that case the main purpose of such study is formulating a problem for
more precise investigation of developing the hypothesis from an
operational point of view. Generally, the following three methods in
the research design are talked about:
(a) The study of literature and its findings

(b) The experience survey
(c) Analysis of stimulating insight
(a) The study of literature and its findings: This is the simplest yet
cost-effective method used for exploratory research for the formulation of
a research problem or developing hypothesis. Hypothesis which is earlier
stated can also be reviewed and evaluated on the basis of exploratory
research. The researcher should also apply concepts or theories evolved
from different researches in the context of the subject under process.
(b) The experience survey: Experienced people in specific fields can

provide valuable inputs in exploratory research. This contribution holds
special attention as the opinion or the comment coming from experienced
personnel. For example, interviewing the General Manager of a shopping
mall can provide more accurate information in less time and with less cost.
(c) Analysis of stimulating insight: In this method, the sample selected

should be honest in providing insight stimulation. The researcher should
realize that this research is volatile and can possibly be reformed with the
new information.
179
The exploratory research, thus, attempts to discover general information

about a topic which is not well understood by the marketing management.
For example a marketing manager of a typical company hears news that a
website of a competitor is newly created, thus helping in increased sales.
The Web business being unfamiliar to the marketing manager, but also
informing him about the new business opportunity pushes the marketing
manager to make an exploration about web business opportunities to
create a research proposal, thus gaining insight on an issue of whether the
web business will add on to the sales and that is precisely the purpose of
the exploratory research.
6.3 Descriptive Research Design
Descriptive Research is a scientific method which involves observing and

describing the behavior of the subject without influencing. This research is
commonly used to identify the cause of something that is happening. For
example, this research could be used for what age group of people is
buying a particular brand of chocolates, to discover how many competitors
a company has in a specific region. In order to obtain useful conclusions,
the researcher must gather accurate data (figures/ results).
Descriptive Research design is mostly concerned with quantitative study.

Although, statistical validity and limitations are a few concerns. However,
descriptive research is the most significant scientific tool.
The focus of Descriptive Research is on providing accurate information. It is

used extensively when the research purpose is explained/monitored and
tests the hypothesis. Sometimes it is used to make predictions.
In Descriptive research, a hypothesis often exists, but they may be

speculative or tentative.
Descriptive designs generally result in description of the data. Whether it is

in the form of words, tables, charts and pictures and whether the data
analysis shows statistical relationship or is merely descriptive and ‘what’
questions invariably lead to the descriptive design.
Whatever method is chosen to collect the data, all descriptive designs have
one thing in common, they must provide descriptions of the variables in
order to answer the questions.
180
The basic difference between exploratory and descriptive research is in

their design itself. Exploratory research follows a less structured and more
flexible format as compared to a Descriptive research. In case of
descriptive research, the marketer already has the basic information and
the exploratory research is already completed. To make important
decisions, key decision makers require accurate data in a structured
manner to make a decision for the company.
There are two types of Descriptive Research:
1. Longitudinal Studies.
2. Cross-sectional Studies.
6.4 Longitudinal Studies
Longitudinal Studies are time series analysis that make repeated

measurement of the same individual, to monitor behavior such as brand
switching. The same respondents are interviewed from time to time. The
purpose of longitudinal studies is to monitor changes in awareness, usage,
attitudes and trials etc. Tracking studies are a typical type of longitudinal
study.
This type of a research design is based on the panel method. A panel is a

sample of respondents interviewed from time to time.
Each family included in these panels, records its purchases from time to
time and the number of product variants. Such a data is used to study
changes in the buying behavior.
The advantages of Longitudinal Studies are as follows:
1. It enables the researcher to understand and make a detailed analysis of

the buying behavior for the individuals who have changed/who have not
changed brands. This detailed study helps to identify a particular
segment of population on which the promotional efforts should be
focused.
2. It helps in obtaining a more comprehensive data from the respondents

from a panel who have accepted to provide the data from time to time.
181
3. This data is more reliable as compared to data collected from surveys.
4. Cost of data collection through a panel is much lower as compared to

personal interviews.
The longitudinal study is based on observations and conducted over a

period of time, sometimes lasting for many years.
The benefit of a longitudinal study is that the researcher is able to detect
developments or changes in the characteristics of the target population, at
both the group and individual level. As a result, they can establish a
sequence of events or trends.
6.5 Cross-Sectional Studies
Cross-sectional Studies is a research method which involves observations

from the subset of a population or items at the same time, in which
different groups are compared with respect to independent variables such
as IQ and memory. The fundamental difference between cross-sectional
and longitudinal studies is that cross-sectional studies takes place at a
single point in time and that longitudinal studies involves Studies taken
over a period of time. Both are observational studies. A Cross-sectional
study sample the population to make a measurement at a specific time. A
special type of cross-section analysis which tracks individuals experiencing
the same event within the same time, or within the same interval of time.
This analysis is known as a Cohort Analysis. Cohort analysis are useful
tools for forecasting a long-term product demand.
The advantages of cross-sectional studies are:
1. Cross-sectional studies measures units from a sample of population at

one point at a time.
2. An online survey is used to collect data for cross-sectional surveys at a

faster speed.
3. Sample surveys are nothing but a cross-sectional studies whose

samples are drawn as representative of specific populations.
182
A Cross-sectional study is only based on observations and the researcher

records the information without manipulation. The most important feature
of a cross section study is it can be compared with different population
groups at a single point in time. The benefit of a cross section study design
is that it allows the researcher to compare many different variables at the
same time.
A Cross-sectional study may not provide accurate information about the

cause and effect relationship. This is because such study gives a snapshot
of a single moment in time. However, things may change after a snapshot.
6.6 EXPERIMENTAL RESEARCH DESIGN
Experimental research is any research conducted with a scientific

approach, where a set of variables are kept constant while the other set of
variables are being measured as the subject of experiment. Experimental
research is one of the founding quantitative research methods.
Under the experimental research, researcher attempts to confirm that a

change in the dependent variable is solely due to the manipulation of the
independent variable under controlled environment. Name is derived from
the scientific experiments conducted at the laboratory, wherein they keep
checking reactions under specific conditions.
It is important for an experimental research to establish cause and effect of

a phenomenon, which means, it should be definite that effects observed
from an experiment are due to the cause. Marketers are often faced with
requirement to have fancy display materials near the point of sale. This is
due to the belief that such point of sale attractive display and right
marketing communication, will draw consumers’ attention and facilitate
favorable purchase decision. Thus, experiment research can be conducted
to relate whether display (cause) impacts the sale (result) or not? It can be
done by experimenting at few shops without much of display and few
shops where new display materials are installed.
183
Experimental research is conducted in the following situations:
• Time is a vital factor for establishing a relationship between cause and

effect.
• Invariable behavior between cause and effect.
• The distinction of cause-effect relationship is as per desirability and may

favorably impact marketing outcome.
Types of Experimental Research Design
There are three primary types of experimental research design:

1. Pre-experimental research design
2. True experimental research design
3. Quasi-experimental research design
Research design are based on the how the researcher classifies the
subjects according to various conditions and groups.
1. Pre-experimental Research Design: A group, or various groups, are

kept under observation after factors are considered for cause and effect.
It is usually conducted to understand whether further investigation
needs to be carried out on the target group/s, due to which it is
considered to be cost-effective.
The pre-experimental research design is further bifurcated into three

types:
a. One-shot Case Study Research Design – conducted only once among

random samples
b. One-group Pretest-post test Research Design – conducted among

group/s before and after formal research design is developed
c. Static-group Comparison – conducted among the same group with

same group members
184
2. True Experimental Research Design: True experimental research is

the most accurate form of experimental research design as it relies on
statistical analysis to prove or disprove a hypothesis. It is the only type
of Experimental Design that can establish a cause-effect relationship
within a group/s. In a true experiment, there are three factors which
need to be satisfied:
a. Control Group (Group of participants for research that are familiar to

the Experimental group but experimental research rules do not apply
to them) and Experimental Group (Research participants on whom
experimental research rules do apply).
b. Variable which can be manipulated by the researcher.
c. Random distribution.
3. Quasi-experimental Research Design: The word “Quasi” indicates

resemblance. A quasi-experimental research design is similar to
experimental research but is not exactly that. The difference between
the two is the assignment of a control group. In this research design, an
independent variable is manipulated but the participants of a group are
not randomly assigned as per conditions. The independent variable is
manipulated before calculating the dependent variable but their
environment is not strictly monitored/controlled. Most of the in-shop
experimental research are quasi-experimental in nature because store
keeper cannot stop doing his other business.
185
The advantages of Experimental Research are:
• Researchers have a stronger hold over variables to obtain desired results.
• Subject or industry is not a criterion for experimental research due to

which any industry can implement it for research purposes.
• Results are extremely specific.
• Once the results are analyzed, they can be applied to various other
similar aspects.
• Cause and effect of a hypothesis can be derived so that researchers can

analyze greater details.
• Experimental research can be used in association with other research

methods.
In real life, such experimental research are difficult to roll-out, control,

needs time and overall it is costly.
186
6.7 Summary
The first step in conducting a research is to examine the reasons why the
research is being undertaken. Determining the research purpose sets the
stage for the research plan with a stake in the outcome of the research, to
know the general philosophy of the project and it also establishes causes of
the research.
Marketing research serves as the foundation of marketing and it is used to

support all the marketing decisions. Marketers use research to support
decisions in 5 important ways.
(1)Explanation (2) Prediction (3) Monitoring (4) Discovery (5) Hypothesis

Testing.
The purpose of any research has to fall into one of these categories.
Research Design: Includes Purpose of research, Research design and

Types of research.
Types of Research: Generally, the research approach can be classified

into one of the three categories of the research approach.
1. Exploratory Research
2. Descriptive Research
3. Experimental Research
Exploratory Research has primary objective of developing insight in to

the problem. It is the most commonly unstructured or informal research
being undertaken to gain background information about the general nature
of the research problems. Exploratory research is usually conducted when
the researcher does not know much about the problem or needs additional
information or needs more recent information.
Descriptive Research is a scientific method which involves observing and

describing the behavior of the subject without influencing. This research is
commonly used to identify the cause of something that is happening. For
example, this research could be used as to what age, group of people are
buying a particular brand of chocolates, to discover how many competitors
a company has in a specific region.
187
Experimental Research is any research conducted with a scientific

approach, where a set of variables are kept constant while the other set of
variables are being measured as the subject of experiment. There are
three types of experimental research namely Pre-experimental research
design, True experimental research design and Quasi-experimental
research design.
1. The first step in marketing research is to define the _____________.
(a) Purpose of Research (b) Design of Research (c) Description of

Research
2. A Marketer may suspect a difference in purchasing habits of one

customer from another, then he will use the following theory to prove
the difference _____________.
(a) Hypothesis testing (b) Discovery technique (c) Explanation

theory
3. Which of the following document is known as a blueprint which is used

to guide a research study towards the objectives?
(a) Planning Report (b) Itinerary of the research programme (c)

Research Design
4. E x p l o ra t o r y Re s e a r c h h a s a p r i m a r y o b j e c t i ve t o d e ve l o p
_____________ into the problem.
(a) Insight (b) Future vision (c) Background information
5. The following research is carried out to find out about a cause of

something that is happening _____________.
(a) Exploratory Research (b) Descriptive Research (c) Longitudinal

Studies
188
6. Cohort analysis is a following type of analysis _____________.
(a) Conjoint analysis (b) Cross-sectional analysis (c) Longitudinal

analysis
7. Which of the following analysis is known as a time series analysis that

makes the repeated measurements of the same individual?
(a) Longitudinal analysis (b) Cohort analysis (c) Conjoint analysis
a. Prepare a research design to evaluate the service quality of a travel

company.
b. Explain each type of research with a suitable example.
(i) Exploratory research
(ii) Experimental research
(iii) Descriptive research
189
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
190
QUALITATIVE AND QUANTITATIVE RESEARCH TECHNIQUES
Chapter 7
Qualitative And Quantitative Research
Techniques
Objectives
After studying this chapter students will be able to understand, the

significance of quantitative and qualitative research. A quantitative
research deals in numbers, logic and objectives, whereas a qualitative
research deals in words, images and subjective information. Qualitative
research involves using techniques that attempt to gain an understanding
of the existing attitudes and opinions. Such research studies do not
measure the emotions or opinions, but they may give an indication of a
dominant feeling. In quantitative research, there is an emphasis on
understanding rather than the measurement. Such research centers on
words, narratives, images and concepts rather than numerical values.
Structure:
7.1 Introduction
7.2 Quantitative Research Methods
7.3 Qualitative Research Methods
7.4 Summary
191
7.1 Introduction
The data collected following a structure and well controlled scientific

research design can yield numerical values that can be analyzed using
statistical methods. Such an analysis proves very relevant and results
drawn from a small number of collection points may be used for
determining characteristics of a larger group. Quantitative research
basically deals in numbers, logics and objectives.
Qualitative research deals in words, images and subjects. Qualitative

research involves techniques that attempt to gain an understanding of the
existence of attitudes and opinions. Such research study does not measure
the amount of emotions and opinions, but they may give an indication of
dominant feelings. Qualitative research methods are less structured and
more intensive than standardized questioner-based interviews. Hence, the
resulting data has more depth and greater richness of the context.
Qualitative research methods were developed to enable the researcher to
study the social and cultural phenomena.
7.2 Quantitative Research Methods
The data required in quantitative research is obtained through various

survey methods. This data is collected from respondents through a sample
questionnaire and obtained through relevant data collection channels.
Surveys are carried out by trained investigators working on detailed
instructions and strictly adhering to the pre-designed questionnaire and
without being manipulated.
Surveys are one of the most preferred methods in collecting primary data
in quantitative research.
The core advantage of the survey method is an investigator can obtain

substantial valuable information from a single respondent. Successful
implementation of the survey depends on the effective judgment of the
type of survey method (interview or mail questionnaire) and the interaction
between the interviewer and the respondents.
192
The six popular methods of conducting surveys are:
• Personal interview
• Telephonic interview
• Survey through mail
• Survey through Internet technology
• Survey through smartphone
• Retail audit
(A) Personal Interview
Personal interviews are usually classified based on the types of the

respondents and the means of contacting them. In the personal interview,
the interviewer and the respondents are suppose to interact with each
other. The interview environment is selected based on the type of the data
being sought.
(a) Face-to-face Interview
This type of survey method has been considered as the best method,
because various distinct advantages are seen in the face-to-face interaction
between the interviewer and the respondent. Following are the distinct
advantages:
• Instant response of the respondent.

• Doubts or queries can be clarified on the spot.
• Product concept and other stimulating techniques can be effectively
used.
• Modification of the questionnaire depending on the respondent could be
possible.
• Smooth interview and flow of valuable information can be achieved
within a familiar and comfortable environment.
(b) Shopping Center Interviews
These interviews are also called as Mall Intercept Service. In this

method, interviewers are positioned at selected locations including
entrances. They randomly approach respondents, encourage them in
participation and interview them. The advantages of this survey are:
193
• Ample number of respondents are available at shopping centers with

various age group mixes.
• Sample representatives in the shopping mall nearly match the population

under study.
• Since interviewers do not need to travel around, the company saves the
cost of travel and utilizes time as well.
• Interviewers require less training for these surveys.
(c) Self-administered Interviews
Self-administered Interviews are completely based on observations. In this

method, respondents record their observations in a pre-designed
questionnaire made available and are not having one to one
communication or a one to one interaction with investigator. For example,
Indian Airlines are using these techniques about their surveys. Many times
a small questionnaire is designed for consolidating feedbacks is provided to
the airlines passengers. No questions are asked or answered, and the
feedback forms are collected for investigation purposes. In every hotel, you
also find pre-printed feedback form. It is optional for you to answer. Hotel
staffs are trained to seek your cooperation to fill the questionnaire and seal
it. Sealed questionnaire are dropped in a box. Survey company collects it
at the periodic interval for analysis.
The advantage of this method is the reduction in the cost of interview. But
the disadvantage is that in case of a doubt or query, the respondents are
not available to satisfy the query.
(d) Purchase Intercepts Techniques
This is a combination of in-store observation, in-store interview to access

shopping behavior of the consumers. The investigator casually intercept
the consumer and makes a quick round of interview asking a series of
short questions for research purposes.
194
Its Advantages are:
• It offers the fresh data since buyer don’t have to recall anything.
• The Investigator doesn’t need to validate, since purchases are made in

front of his eyes.
Its Disadvantages are:
• The investigator may have a difficulty in getting across to the consumer

for a survey while he or she is busy making a purchase.
• This technique only focuses on the purchaser who purchases however, if

a purchaser is influenced by somebody else making a purchase that
information remains questionable. For example, if a buyer under survey
is buying a particular shampoo which is not really of his or her choice but
buying for somebody else for convenience then this information becomes
invalid.
It is an investigators job to obtain the most genuine information from the

buyer to validate the survey.
(e) Omnibus Surveys
An Omnibus survey is a quantitative market research method where

information on a variety of subjects is collected on the same questionnaire
and is used by multiple clients who effectively share the cost of conducting
research by sharing the survey costs.
Omnibus survey is carried out by research organizations for a variety of

clients. In these surveys, from one particular respondent, many
questionnaires are answered in a single appointment. The questionnaire is
designed with a series of questions on different topics for various clients
but answered from the same respondent.
195
Advantages of this method are:
• Total cost per call is divided
• All the steps can be standardized since there is a single point contact for
information
• Many times a receptive respondents helps in providing additional

information useful for other surveys.
Advantages of Personal Interviews:
a. Personal interviews are preferred when a large amount of information is

required and the nature of questions to be answered are more complex.
b. The Personal interview questionnaire offers a higher degree of flexibility

and also it works on the interest created in the respondent.
c. In personal interviews, more open-ended questions are asked to obtain

useful information.
Limitations of Personal Interviews:
a. Personal interviews are time consuming and seek prior appointments for
scheduled visits.
b. Getting the right type of people in the right kind of mood and getting
their full co-operation in an interview is a challenging task.
Confirming different schedules of appointments and managing the

interview within the allotted time is a real task for an investigator.
196
(B) Telephonic Interview
This type of survey requires exceptionally good quality and proper

communication skills over the telephone. This survey is usually carried out
with respondents either being at their offices or houses. The success of this
type of survey depends upon the ability of the interviewer.
• Identify and locate useful executives for the survey
• Ensures that the individual agrees for the telephonic interview and
provides necessary information
• The Interviewer should have the necessary skills of recording while

interview over the phone is in progress
This method requires a caution while using the data and cross referencing
the data is certainly advisable. A large quantum of marketing problems
could be solved in a faster manner using the telephonic interview
technique. This is also accepted as a most popular survey method
especially focusing on the cost and no response parameters. In case of a
sample unvailability, an alternative sample can be arranged quickly.
Typical steps in a telephonic interview are as follows:
a. Selection of a respondent and his contact number
b. Make a telephone call to the respondent and schedule an interview

call with a respondent.
Advantages of Telephonic Interviews:
a. Most interviews are scheduled and conducted over the telephone.

Therefore, no time is lost in locating the respondent.
b. This is a very cost effective method since the cost and travelling time
are almost not there resulting in cost savings.
c. Wide areas can be covered by using telephone calls. Long distant

respondents can be reached at a minimum cost per call.
197
d. Since the telephonic interviews are conducted in absence of a face-to-

face interaction, very often it permits the respondents to be at ease and
not under any pressure.
Limitations of Telephonic Interviews:
a. These interviews are not face-to-face interactions, therefore, the

investigator has to completely rely on verbal clues to judge the
reactions and understanding of the respondents.
b. As the interaction with the respondent is not face to face, therefore the
product concept or display of sample is not possible which results in
complexity of understanding.
c. A telephonic interview with a senior manager or busy people, may

attract a lot of interruptions in the ongoing calls and also have time
constraints in execution.
d. There are chances of a sample bias in case some samples are not
reachable or they provide inadequate information.
(C) Mail Surveys
In the Mail Survey method, questionnaires are mailed to the potential

participants who are expected to complete and return the same by prepaid
envelopes. The data of the potential participants are normally taken from
the available database and they are identified as a sample from the
targeted population. In mail surveys, the investigator has to keep in mind
that very few respondents are prompt in sending the information and they
need to be followed up for sending information. Sometimes, an incentive is
required to be offered for obtaining information. Non-response is a very
common problem of mail surveys and thus, investigators are required to
anticipate the low response rate and work to solve the problem of
obtaining the data.
198
Advantages of Mail Surveys:
a. The most cost effective method, as the only cost needed is of postage.
b. More in-depth information can be achieved since the respondent is not

under pressure to respond quickly and the respondent gets enough time
to answer questions.
c. This method is appropriate in seeking answers to sensitive issues like

living together, disorders, complex relation problems. However, the
investigator has to ensure confidentiality of the data made available.
Limitations of Mail Surveys:
a. In the absence of the actual interview, some questions like who has
really answered the questions and actually by what time the respondent
will send the duly filled questionnaire is not known.
b. Mail surveys do not provide clarifications and many a times confusing

questions remain unanswered.
c. There is no control over the response time and response rate.
(D) Survey Research through Internet Technology
The advent of Internet technologies has aided the researcher in

interviewing respondents for the purpose of survey research in a speedy
and cost-effective manner. Online respondent survey or e-mail surveys are
the most common methods under these survey research methods.
Computer-Assisted Telephonic Interviewing (CATI) is developed for
the survey purpose. By using this technique, a sequence of questions are
offered through the computer. In this, the interviewer has to focus on
recording answers and establishing a rapport with the respondents.
E-mail Surveys
Today, accessing the computer and Internet is almost a necessity of

working people, researchers. Not long before started using this facility
developed e-mail service. This method facilitates the researcher to e-mail
199
the questionnaire directly to the respondent and obtain their responses in a

quicker manner without having a face-to-face interaction.
Advantages of E-mail Surveys:
• Extremely quicker method although not face to face, visuals of the

products can be shared.
• Judgments and reactions can be obtained.
• Ample data can be obtained.
Limitations of E-mail Surveys:
• More complex for respondents who are not computer literate.
• Must have an access to the computer to respond.
• Data is maintained in electronic form only. If lost, then contacting again

becomes difficult.
Laptop/Desktop Survey:
While using our desktop/laptop, and often using numerous software, we

come across a request to provide the feedback. Also, when we encounter
any problem, we search for information and/or answer and we are
promptly supported by our operating system. At the end, you often get a
question, how satisfied are you with the information provided.
Such survey provides you with very large respondent base and thus have
large number of respondents answering it. Its limitations are quite a few
such as no profiling, no probing or verification is possible. Also, you can
conduct survey using only close-ended questions.
200
(E) Survey through Smartphones
With the advent of mobile telephony, numerous other ways were possible
to conduct the survey. It started with REPLY SMS (w/o charge) by mobile
operators, probing how good their services and network is. With the
digitalization, various APPs are being made. This APPs can be programmed
to push survey notification among the APP users. On their agreeing,
various planned questions come in front of them along with the probable
close ended answers to choose from. Also, various Do-It-Yourself kind of
questionnaire designing platforms are available (Google Form, Survey
Monkey), which not only helps you to design a questionnaire but helps you
to send a sharable link to receive responses. They often provide you
backend automatic analysis or allows you to download answers in excel
format, which can be later used by you for the analysis purpose.
(F) Retail Audits
This is a contemporary method for research. With the help of retail audit,
movement of the product and distribution patterns over retail outlets in a
specific region can be analyzed. The measurement of the product stock
movement can be obtained from the inventory and sales register.
Thereafter, adopting a sampling method over the estimated population,
conclusions can be derived.
It is often used by most FMCG companies and thus various marketing

research organizations offer such survey findings at a price. Starting and
setting up is challenging but later it is a prompt and reliable data oriented
survey. When linked with sale during your post-promotion, post-
advertisement phases helps you to not only know the efficacy of your
communication but also allows you to make timely corrections, if
necessary.
201
7.3 Qualitative Research Methods
Qualitative Research methods are less structured and more intensive than
standard questionnaire based interviews. They have a more flexible
relationship with the respondents, hence the resultant data has more depth
and greater richness of the context. Qualitative data sources include
observation, interviews, documents, texts and the researcher’s
impressions, reactions and interpretations. Qualitative Research is
generally carried out using two different methods:
1. Based on questioning
2. Based on observations
1. Based on Questioning
The qualitative research based on questioning is normally undertaken by

experienced professional investigators. As this involves more cost and
special skills of probing to obtain valuable information. In this technique,
the following data collection techniques are used:
(A) In-depth interviews

(B) Focus group discussions
(C) Projective techniques
(A) In-depth Interviews
In-depth interviews are one to one conversations without using a

questionnaire. The structure of the interview is such that it aims on the
subject matter of the research. In-depth interviews are flexible and can be
shaped up depending upon the situation at that time. The investigator and
the respondent share different opinions, perceptions and experiences, and
through this process valuable information is evolved. During such
interviews, sensitive issues can also be probed depending upon the
respondents. The best part of this technique is it can happen anywhere,
anytime convenient to the respondent and investigator. In today’s time
generally, such interviews are recorded to study the customer’s reaction
and for getting a real feedback.
202
In-depth interviews have many variants like one to one, focus interview,
unstructured interview, creative interview, pared interview etc. In each
case, the investigator needs to understand the situation variables,
information collected. Based on which research treatment is given. In-
depth interviews are the main form of qualitative research in business.
Here an interviewer spends time in a one to one interview finding out
about particular information and the respondent’s opinion. Many times, the
researcher pays a visit to the respondent’s workplace and gains a feel and
experience about the business which helps in turn, in validating the
information. In some circumstances such as segment related studies,
projecting respondents differently becomes necessary to identify
differences between the respondents clearly.
Advantages of an In-depth Interview:
1. Discovery of hidden motivation: It may be possible to discover the

hidden motivation which really determines consumer behavior through
data obtained from an in-depth interview. In turn, it acts as an input in
solving various marketing problems.
2. Motivational patterns: In-depth interviews focus on understanding

various motivational patterns with respect to specific brands or products
under investigation.
3. Clinical insight: It also helps to provide clinical insight to the

researchers, by way of which the researcher can make a major
contribution in understanding consumer behavior.
Limitations of an In-depth Interview:
1. Unsystematic nature: It does not provide a systematic structure for

interpretation of the information.
2. Non quantifiable: The information obtained is on the basis of

judgments and gut feelings, rather it is more subjective. There could be
a bias between the different samples under investigation, although the
same interview procedures are followed. If the interviewers are not
trained well enough then it will lead to a sufficient amount of confusion.
203
3. Cannot be generalized: In case of in-depth interview, generalization

of the results is usually not possible, since the sample size chosen is
very small and random sampling is not adopted. In- depth interviews
are useful in case of programs and if they are supported with other
supplementary information, then it results into valuable data.
(B) Focus Group Discussions
A Group Discussion is a conversation between the people sitting together in

a group. The optimal size of a focus group is usually taken as 7-8
persons.The group selected is generally homogeneous for the purpose of
meaningful discussions. In the group discussion, one person acts as a
moderator and he is in the command of keeping a track of the discussion.
A researcher plays the important role of an observer and he or she records
the points and valuable information evolved from the discussion for the
purpose of research.
A focus group is perhaps the available technique in terms of cost and time,
to test new concepts, ideas and products. In addition to this, various
customer responses to the media as well as opinions about advertising and
packaging can be obtained. The Focus group method has a special
significance to detect current trends in the market, consumer attitude and
perceptions as well. Generally in a focus group, several customers are
brought together and asked to participate in the discussion expressing
their opinions on a given topic or are asked to explore new creative ideas
of subjects.
Focus groups are often seen used as tools for acquiring feedback about
new products and services. The information generated from the discussions
can provide valuable inputs about the potential market acceptance of a
product.
Sometimes, to overcome the drawbacks of personal interviews, researchers

turn personal interviews to focus group discussions. The power of a focus
group is in creating a discussion environment by the interaction of the
participants. The focus groups are often stimulated for responding to the
comments made by its group members. In this manner, in-depth
interviews generate a free flow of information within the group.
204
Conducting a focus group discussion is generally is an expensive affair.

Participants definitely require compensation in some way or the other. In
today’s time, researchers are using online techniques for focus group
research methods. Video conferencing, online chat rooms are some of the
advance techniques currently used.
Advantages of Focus Groups:
1. Fast and cheap: A group discussion saves on time and cost which
otherwise would have been spent on personal interviews. In addition to
this, the researcher gets comparative opinions on the spot.
2. Brings respondents and the clients closer: This technique helps

respondents and the researcher to spend time together in a comfortable
environment which builds a good relationship, and it further helps in
getting information for many useful projects.
3. Flexibility: This technique being flexible, the discussion takes place

within the group so uncomfortable situations usually don’t arise and
naturally information is exchanged.
4. Throws light on generating hypothesis: In the focus group valuable

information is evolved in a less time which stimulates thinking of a
researcher and focus for generating a hypothesis becomes clear.
Limitations of Focus Groups:
1. Dilution of the topic: In a focus group discussion, if a discussion is

going away from the subject matter and the moderator is unable to
notice then it becomes a fruitless discussion.
2. Data cannot be projected: Since the focus group is a discussion and

points are evolved from the discussions, therefore there are no written
statements from the participants. Sometimes participants do not
recollect what they discussed. Therefore, sometimes discussions are not
adequate enough to draw conclusions.
3. Biases: In the focus group unfortunately if the difference of opinion is

formed escalating the discussion, then the purpose of the focus group
cannot be achieved.
205
4. Misuse of Data: Many a times in the focus group unknowingly,

information which is not supposed to be disclosed is revealed. This may
be a dangerous element.
(C) Projective Techniques
Projective techniques are an important tool in the stimulation process.

They may be classified as a structured indirect way of investigating the
whys of situations. They are not used to measure quantifiable aspects, but
to uncover feelings, beliefs, attitudes and motivation which many
consumers find difficult to articulate. They help the researcher enter the
mind of subjects to uncover their inner perspectives in a way, not obviously
known to the respondent and they are participative in a manner requested.
Useful in areas which a common man does not like to discuss in open but
he certainly has strong views – use of contraceptives, private hygiene
issues, inter-faith marriages and more.
In certain circumstances, it is impossible to obtain accurate information

about what people think and feel by asking them to communicate their
thoughts and feelings with direct questioning. Respondent may fear being
considered irrational or “stupid” and may therefore be reluctant to admit to
certain types of (purchasing) behavior. They consequently color their
responses to the interviewer.
Thus, under projective technique, instead of questioning them directly, the

subjects may be asked to respond indirectly, either talking about other
people, or what-if scenario handling, complete the incomplete story,
incidence and more. This is considered as stimuli. Respondents need to be
provided with a stimuli for enabling him to open out his mind and respond.
It is generally believed and accepted that even if person is talking about
others, groups, class, society, what comes out is from his own developed
beliefs, feelings, apprehensions, fear and anxiety. The stimuli range from
structured (clear and definite) at one extreme, to very ambiguous
(unstructured) at the other extreme. It is assumed that the more
unstructured and ambiguous a stimulus, the more the subjects will project
their emotions, motives, attitudes and values.
Projective technique helps in revealing psychological and behavioral under

currents which often drive our purchase behavior. This technique, thus,
often used along with other research technique, mostly after initial
206
research is completed and you wish to go deeper in terms of purchase

behavior understanding. Say, you may do quantitative research to predict
the acceptance of sanitary pads, but for understanding female hygiene
issues, apprehensions, from where they buy mostly, you may have to do
projective technique research.
2. Based on Observation
Observation is something to do with watching people closely about what

they do. Information which can be obtained from the observations is like
their actions, expressions, reactions to a product or an event and
interactions, etc. In the recent past, with the introduction of ethnography
(Behaviour description technique) and action research, this technique has
gained a special importance in the field of marketing research.
Researchers apply a wide range of techniques for observing consumer

reactions and interactions while using products and services. A core
advantage of this research is that the respondent is unaware that he or she
is being observed. Therefore, their reactions are natural and which is the
precise purpose of the research.
In this particular research, respondents are performing their acts with their
instincts and not under any influence, so the measurement of responses to
any product attributes is at best natural. Similarly, direct observation of
consumer behaviour reduces the error of judgment considerably.
A classic example of continuous video taping in Shopper’s Stop or various

malls which is then passed on to the researcher to record the customers
responses and reactions.
Another effective technique is tracking of the eye movement by software of

the subject while running through the shelves of malls.
Other popular forms of observational research include the mystery

shopping to test quality of the consumer experience or quality of the
consumer service. In foreign markets, sometimes, cameras are used to
take snapshots of consumer reactions with products and with the help of
psychologists they are being researched.
207
KANTAR is world’s most popular agency specializing in numerous

approaches and it may be useful to check their website once.
Popular Observational Research Methods are as below:
1. Ethnography: Ethnography is a behaviour description technique. It

describes the behaviour in a most natural manner and makes a
complete observation record of the respondent. This research was most
commonly used in community research, however now it finds the
application in researching consumer behaviour. Ethnography
traditionally refers to the study by the researcher of the typical
community and their culture. However, ethnography has been integrated
with qualitative research by the researcher spending a complete day
and time with the consumer in malls understanding their buying
behaviour patterns, likes and dislikes, spending habits, etc.
There are many ways of conducting an ethnographic research: They may

be short/long-term, consumer/non-consumer by nature, depending on
the no. of participants as a sample for population under consideration,
etc.
2. Participatory Observations: In this observational method, the

researcher becomes an actual part of the event of buying, wherein the
researcher may have interaction with the respondent while the purchase
process is on. The researcher has to blend himself within the process
and make observations while extracting the information.
This method requires the researcher to be the active participant. The

researcher’s main aim is to get the closest insight to the consumer or
group of consumers and make observations. This research technique is
practiced directly on the floor of the shopping arena and in most natural
and unbiased environments, and in routine course with other methods it
may take several months to collect such original information for analysis.
The researcher records all the experiences with a perspective of the
subject of research for future studies and references.
According to Baker and Geer in participant observation, the observer

participates in the day-to-day activity of the people under study in a
covered manner observing things that happened to them, listening to
what questions they ask and understanding their responses to the
208
information they receive. However, this activity is carried out in a

subjective manner and not in a personal manner. This activity is purely
observational and judgmental. Therefore, trained and well experienced
research professionals are required to handle these activities. The
success of the research depends upon how naturally the responses are
collected and how they are applied to the research subject. By
experiencing the inner feelings and responses of the respondent, the
marketer becomes aware of the crucial impact factor which influence the
respondent in a given scenario. This research also highlights the values
and the priorities of the respondent.
7.4 Summary
To summarize, Qualitative Research methods broadly include group

discussions, in-depth interviews, projective techniques, ethnographic and
participatory observation techniques. In the focus groups, the technique
involves several respondents at the same time. This emphasizes on
outcome of the group interaction when the group is focused on several
topics under discussion. A Moderator or a leader records the outcome,
sometimes the researcher himself acts as a moderator. They play the role
of an observer and a passive role of a moderator. In projective techniques,
indirect interviews are performed. These techniques enable respondents to
project their view, feelings, beliefs on to a third party, or getting them to
indulge in to some purchasing act. When respondents project certain
expressions and feelings, it generates the valuable information about the
product of the service. The researcher in this method sets up a situation
for the respondent by probing them and allowing them to express their
own views through stimulation.
On the other hand, ethnographic research method uses most natural

observation to record the detailed behavior of the research subject. This
comprises of the cultural aspect, day-to-day living, interactions, and
responses from the respondent over a length of time. Participatory
research depends upon the researcher’s ability to blend and extract
information by becoming an integral part of the event or a group. In this
method, the researcher actually becomes a part of an event or a group
while observing. It aims to gain insight of the individual or a group about
their behavior and responses in the natural buying environment.
209
1. Which of the following research is based on questioning and

observations?
(a) Qualitative (b) Quantitative (c) Experimental
2. Discovery of the hidden motivation is observed in which of the following

technique:
(a) Based on questioning (b) Based on observations (c) Based on in-

depth interviews.
3. When a homogeneous group with a moderator is discussing

advertisement effectiveness, then which technique is the researcher
following?
(a) Projective technique (b) Focus group (c) Questioning
4. The test in which a respondent is given a word which propagates a

response and comes out with meaningful thoughts is called as
_____________.
(a) Word association test (b) Clinical focus group (c) Story
completion test
5. The technique used for generating a discussion in an informal interview

and forcing the respondent purposefully to answer is known as a
_____________.
(a) Thematic appreciation test (b) Projective technique (c) Focus

group discussion
6. Following study is known as a study of behavior or a study with respect

to the community:
(a) Grounded theory (b) Participatory observation (c) Ethnography
210
7. Following is a research method in which the analyst is actually a part of

the group and blends with a group to extract the information:
(a) Participatory research (b) Experiencing focus group (c)

Exploratory focus group
a. Explain with suitable examples how you will carry out focus group
interviews?
b. Plan an ethnographic study for investigating the use of perfumes.
211
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
212
CAUSAL AND EXPERIMENTAL RESEARCH
Chapter 8
Causal and Experimental Research
Objectives
After studying this chapter, students will be able to understand, how causal
research is concerned with understanding the connection between the
cause and effect. Causal research is often conducted through the use of
controlled experiments to allow for the testing of cause and effect. It
explores the effect of one variable on another. Students can learn how to
conduct a controlled experiment in a laboratory (controlled environment) to
obtain the best performance on causal research.
Structure:
8.1 Introduction to Causal Research
8.2 Causality
8.3 Experiment
8.4 Summary
213
8.1 Introduction To Causal Research
Causal Research is usually connected between the cause and the effect. It
is often performed through the controlled experiments of testing the
causes and effects. It explores the effect on one variable with respect to
changes in another variable. The research is used to measure a specific
impact of change based on existing norms and therein helps researchers to
predict hypothetical situations for which a company needs to make a plan.
For example, Arvind Mills currently selling blue and black colored denim
jeans and a company wishes to introduce a white colored jeans, then for
this purpose the company needs to carry out an experiment through causal
research in which it may put on prototype white genes on mannequins
displayed in the showcase and study the impact and responses from
regular visitors. Based on the feedback of these experiments from various
showrooms, the company may decide about launching white jeans.
Arvind Mills formulated a set of principals based on logic for the causal
research design. The Causal Research design can be divided into two
categories: (i) Natural Experiments and (ii) Controlled Experiment.
The main point of discussion between the two is the degree of intervention
or manipulation exercised by the investigator in a given study. A natural
experiment will hardly involve intervention from the investigator to the
extent required for the measurement. However, in a controlled experiment
investigator intervention is to control and manipulate variables.
8.2 Causality
It is a predictable and demonstrable effect of one variable on another. It

has three main components:
a. Correlation: It refers to the relation between the two variables that

vary in a predictable manner.
b. Appropriate time: It is a time considered change from the cause to

effect.
c. Elimination of extraneous factors: A researcher must be able to

eliminate these factors in experiments as they directly impact the
recorded change. This is required for accuracy of results in the
experiment. For example, in a showroom when white jeans is displayed,
214
then the showroom salesman should not actively promote the product
and allow the natural attention and enquiry from the buyer to get
successful results of the research experiments.
Features of Causality
1. Causal Research explores the effect of one thing on another and more
specifically, the effect of one variable on another.
2. The research is focused to measure the impact of a specific change

happening in one variable corresponding to cause a change in another
variable to predict the hypothetical scenario, based on which the
company can plan.
3. It deals with the cause-and-effect relationship.
4. It involves experiments where an independent variable is changed to

see how it affects a dependent variable.
Significance of Causal Research
In this research, the researcher basically tries to determine the changes in

one variable with respect to the caused changes in other variables by
means of an experiment.
Marketers use this method primarily to test hypothesis and make

predictions. Sometimes, it is also used for explanatory purposes. In
general, in marketing, this method is mostly used for the purpose of
testing experiments, such as what might happen to the product sales if
changes are made to the product design or in the methods of advertising
or in the promotional strategies. If causal research is performed well, then
marketers will be able to accurately forecast what might be beneficial for a
company in the future.
215
Limitations of Causal Research
1. Field variables can involve many variables out of control of the

experiments, which will result into unanticipated differences.
2. It may be difficult or expensive to gain the cooperation of retailers or

wholesalers to set up the experiment.
3. If the marketing person is not skilled enough or doesn’t perform the

experiment seriously, it will not give accurate results.
4. If there is a bias in the experiment which takes place consciously or

unconsciously, then the experiment will not be effective leading to
errors.
8.3 Experiment
An Experiment refers to a research design to study the changes in one

variable with respect to changes in another. This is based on the study of
cause and effect.
An experiment’s main objective is to notice the change and measure the

change during the experiment. This outcome of the experiment is used to
draw the conclusions or for testing the hypothesis.
An Experiment is done by controlling one variable and manipulating the

other variable of interest, thus measuring the change created in the
dependent variable. The researcher is an active participant in the research
process.
216
Types of Experimental Research Designs
a. Experimental Design: This is a test in which the researcher has a

control over more than one independent variable and manipulates them.
b. True Experiment Design: It is a research where the researcher has a

complete control over the administration of the treatments and uses an
experimental group and a control group together.
c. Quasi Experiment: In these research methods, the researcher lacks a

complete control over the scheduling of treatments where respondents
are assigned to the treatment in a non-random manner.
d. Laboratory Experiments: Tests are done in the sterile environment in

which the researcher can control all causal factors. However, one should
understand that although the laboratory allows the control of all factors
to the researcher, the laboratory in true sense does not represent the
market. Therefore, generalization of the lab experiment is always an
issue.
Laboratory experiments are considered mostly for the internal validity

but they may lack external validity. Therefore, laboratory experiments
may be statistically correct, but generalization to the market place is
questionable.
e. Field Experiments: These are the experiments carried out in the field
outside the laboratory and in the actual market environment. The test
marketing of a new product is a classic example of such experiment.
This experiment is highly popular amongst the marketers, as this gives
a direct exposure to the market and first-hand results are obtained.
However, in this research there are many factors which are out of
control for the researcher. For example, a researcher cannot precisely
measure the reaction of a competitor to the test market or the effect on
the economy or the effect on social trends, etc.
Therefore, field experiments lack certain internal validity components

but it gives the best external validity. The outcome of such an
experiment has two effects:
217
(a) It cannot be assured for statistically going correct
(b) It is more likely to be generalisable to other market situations
Steps in Experimental Research Design
a. Select and define the problem: The first step is to select and define
the problem clearly in operational terms to understand the objective of
the research.
b. Nature of the study: The research design should be corresponding to

the study undertaken. statistical, experimental and comparative
objectives must be designed at this stage for further planning.
c. Sources of the data: The researcher must clearly specify the sources
of the data like library; personal documents, field data, etc. after
selecting the problem.
d. Techniques of data collection: A suitable technique has to be

adopted for data collection as the relative merits of observation and
interview must be considered appropriate for the subject.
For developing a proper experimental research design, an adequate and

representative sample needs to be selected. This may be achieved by
drawing a random sample or using a stratified sampling method.
Advantages of Experimental Methods
a. The conclusion drawn from the experiments are subject to verification at

any point of time.
b. The experimental methods help in establishing the cause-and-effect

relationship more clearly than other methods.
c. The experimental methods are considered to be the best for accurate

predictions.
d. The experimental methods are universal in applications.
218
e. Experimental methods are more precise and accurate since the variable
understudy is manipulated leaving others as it is.
f. Experimental methods is the best method for testing hypothesis in

causal research and the hypothesis can also be verified.
Limitations of Experimental Methods
a. Experimental method has limitations in terms of social studies due to

large variety of samples and characteristics. Experiments can be carried
out when the subject is homogeneous such as physical science, whereas
in heterogeneous science it is exactly opposite as the no. of variables
are beyond considerations and controls. Therefore, the use of
experiments is limited.
b. It is a strict requirement of the experiment that except for one cause

factor, all other variables must be strictly unchanged. This is practically
very difficult in social science because of the complexity of social
phenomena and its dynamic nature owing to the unpredictability of
human nature.
c. Human beings which are subject matters of the experiments are difficult
to predict and be manipulated, as they work on their own free will. Their
willing cooperation and sincere attitude in the experiment is essential for
an accurate outcome of the experiment. The lack of interest in the
experiment from the subject, will lead the experiment in the wrong
direction and results cannot be assured with this approach.
219
Experimental Validity
Validity refers to actually measuring, what it attempt to measure. Validity

suggests that the measuring instruments must be free from any errors.
There are two types of validity of concerns in Experimental

Research:
a. Internal validity
b. External validity
a. Internal validity: It is the causal interference in scientific studies.
b. External validity: This pertains to how well the findings of the

experiments are obtained. It can be tested while generalizing the
findings. In generalization, manipulation of a sample beyond the
certain limitations is not possible in the real world situations.
Following are certain methods to ensure internal and external

validity:
1. Random selection of the subject
2. Random assignment to treatment conditions
3. Matching subjects on relevant variables
220
8.4 Summary
While summarizing one can say that causal research is a concern between
the cause and effect. It explores the effect of one variable on another
variable. Causal Research measures the specific change with the help of
controlled and natural experiments. This research allows the market
researcher to predict a hypothetical scenario – based on which the
company can make future plans.
Experimental designs are broadly classified into classical designs and

statistical designs. Classical designs consider the impact of only one
treatment level of an independent variable at a time. On the other hand,
statistical design allows for examining the impact of different treatment
levels of independent variables. Validity refers to what is attempted to be
measured in the research. Validity suggests a measuring instrument must
be free from substantial error. There are two types of validities in the
experiment: (1) Internal validity and (2) External validity.
Internal validity is a causal interference in the experiment. Field

experiments have greater external validity, however, they are more costly,
time consuming and complicated to implement, besides it controlling a field
experiment is always an issue.
221
1. Which of the following research, explores the effect of one variable on

another?
(a) Experiments
(b) Causal Research
(c) Correlation
2. Symmetrical relationship is the one in which _____________.

(a) Variable A fluctuates with change in Variable B
(b) Variable B fluctuates with change in Variable A
(c) Both variables fluctuate together
3. Causal Research is concerned with _____________.

(a) Experiments (b) Relationships (c) Cause and effect
4. _____________ measures the change in the dependent variable

created by a specific controlled change in another variable.
(a) Scale
(b) Experiment
(c) Exposure
5. Experimental design is a test in which the researcher has a control over

_____________.
(a) One variable
(b) Both variables
(c) All the variables associated
6. Following are the studies in which the researcher lacks complete control
over the scheduling treatments.
(a) Laboratory experiments
(b) Field experiments
(c) Quasi experiments
7. The studies which are conducted in the marketing environment such as

test marketing is called as _____________.
(a) Quasi experiments
(b) Field experiments
(c) Laboratory experiments
222
1. Select the appropriate experiment for launching Elaichi flavor tea in

market.
2. What are the steps involved in experimental research design?
223
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
224
PRIMARY DATA
Chapter 9
Primary Data
Objectives
Primary data is the data observed or collected directly from first-hand

experience. In primary data collection, the researcher collects the data on
his/her own methods.
After completing this chapter, students will be able to understand:
• Various methods for collecting information.
• Understand various techniques of computations
• Understand the methods of questioning
Structure:
9.1 Primary Research
9.2 Primary Data
9.3 Questionnaire Design
9.4 Attitude Measurement
9.5 Observation Method of Data Collection
9.6 Web-based Primary Data Collection
9.7 Summary
225
PRIMARY DATA
9.1 Primary Research
Primary data is a data observed or collected directly from the respondent

(first-hand experience).
In primary data collection, the investigator collects information by using

techniques such as interviews and questionnaires. The core issue in the
primary data is the data collected is unique to you and your research, and
until it is published no one has access to it. There are several methods
for primary data collection:
• Questionnaire
• Interviews
• Observation
• Case study
• Diaries
• Digital touchpoints
9.2 Primary Data
• Primary data is important for various areas of research. It is the original

valuable information.
• This data is most reliable and valuable and it helps to make quicker
decisions and strategies.
• Primary data has a special significance. It is used as immediate data in

determining the survival of the marketer.
• Popular ways of collecting primary data are: surveys, interviews, focus

groups. These methods allow the researcher to establish a direct
relationship between companies and potential companies.
• Primary data always provides the latest information.
• Primary data is collected by the researcher focusing to meet the research

objective of the research project.
226
PRIMARY DATA
9.3 Questionnaire Design
Questionnaires are economical ways to gather information in a structured

format from a potentially large number of respondents. Often that’s the
only feasible way to reach a large number of respondents needed for
statistical analysis and drawing of results. A well designed questionnaire if
it is used effectively can gather valuable information, on both the over all
performance of the testing system and specific components of the system.
The questionnaire which includes the demographic questions (sex, religion,
caste, family size, income, etc.) of the participants, can be used to
correlate performance and satisfaction with a test system amongst a
different group of users.
Following are the steps required to design and administer a

questionnaire:
(A) Defining the objective of a survey

(B) Writing the questionnaire
(C) Administering the questionnaire
(D) Interpretation of the results
A. Defining the objective of a survey: It is very important to have well

defined objectives before writing the questionnaire. Along with
objectives, the hypothesis also needs to be well-defined. A
questionnaire written without clear goals and purpose may overlook
certain important issues, at the same time may indulge the respondent
and investigator in irrelevant issues thus wasting time and energy for
both. Further, the poorly defined questionnaire may lack a logical flow of
information and as a result, participants may lose their interest.
Consequently, the useful data which was required to be collected may
be compromised. In other words, it would not be possible to reach an
insightful conclusion if the questionnaire has poorly designed questions
and does not have well defined objectives.
227
PRIMARY DATA
B. Writing the Questionnaire: Once it has been decided what kind of

data is required to be collected, the process of formulating of the
objectives and the investigation procedure are created. At the same
time, composition of the participatory group is confirmed. The questions
are obviously framed based on the subject matter of the project and
considering the demographic data of the participants.
This is used to correlate the responses between different groups of

people. It is important to see the consistency of the responses across
the groups. For example, if one group of participants is less satisfied
with a test interface then it is likely that the interface was designed
without fair consideration.
For example, if one group of participants is noticeably less satisfied with

the other, then the interaction is without fair consideration of the group
needs. This may call for redesigning of the questionnaire. Sometimes,
few questions from the questionnaire are designed pertaining to only a
specific kind of respondents; in that case it is a wasteful question.
Demographic data is required to be collected in the beginning questions

for the questionnaire, However, it is noticed that sometimes these
questions are scattered around in the questionnaire. When the
demographic data is completed right at the beginning, then it also helps
the investigator to ask questions accordingly and thus accurate
information can be obtained.
While writing the questionnaire, it is important to understand what

questions are to be framed to obtain meaningful data.
There are two methods of questions:
(a) Open-ended questions (b) Closed-ended questions
(a) Open-ended questions: These questions are elaborative questions or

also called Descriptive Information Questions. In this there are no
predetermined responses. The Respondent is supposed to answer it in
his own words.
228
PRIMARY DATA
Open-ended questions are good for soliciting the subjective data because
the responses are not tightly defined. This is advantageous for the survey
in a way that many different responses and opinions can be received
through this and resultantly, accurate and focused data can be generated.
In addition to this, many suggestions are got and the data is automatically
generated. Commonly, it is followed to end the questionnaire with specific
suggestions from the respondent for improvements or changes.
Open-ended questions have several disadvantages:
a. They are required to be read individually and could be understood

differently by different people.
b. As they are not being precise, the answer could deviate from the core
subject.
c. As questions can be interpreted differently by every individuals,

irrelevant information flows and truthful information may be diluted.
d. There is no way to automatically tabulate and translate them into

statistical data.
e. This method is costly in terms of time and money.
f. This method has a particular disadvantage of an influence. For

example, if the interview is being conducted by a smart and beautiful
looking lady, then the respondents may act under influence and will
not give true information in terms of actual income, lifestyle, habits,
etc.
g. Open-ended questions require more thoughtful thinking and time to

answer. Therefore, respondents try and avoid such questionnaires.
b. Closed-ended Questions: These types of questions usually are taken

in the form of multiple choice questions. Usually these questions have
3-5 options. For questions that measures a single variable or opinion,
odd number of alternatives should be offered like 3 or 5. This allows a
neutral response. For a larger questionnaire which tests opinions on a
very large number of items, there may be a longer series of questions
to get to know about behaviour and attitude. Closed ended questions
229
PRIMARY DATA
offer many advantages in terms of time and money. Hard

statistical data can be generated from the information. This format is
software-friendly and can easily be tabulated, structured and can be
used as a database to perform a preliminary analysis. Closed-ended
questions can also be used for tracking over a time by administering the
same questionnaire to different groups of participants. Finally in close
ended questions, there is a provision for filteration of data removing
irrelevant information. This is not possible in open ended questions
because there is no provision for filteration.
Close-ended questions have several disadvantages:
a. They can suggest ideas that the respondent would not otherwise have.
b. Respondents with no opinion or no knowledge can answer anyway.
c. It is confusing if many response choices are offered, e.g., 5 points or 7

points or 10 points rating scale.
d. They force respondents to give simplistic responses to complex issues.
e. They force people to make choices they would not make in the real
world.
Important Precautions for Writing the Questionnaire
The questions may be of the open or closed ended type, there are several
points that must be considered while writing and interpreting the
questionnaire.
1. Clarity: This is the most concerned area in the questionnaire because

this is where most of the mistakes occur because of unclear questions.
Questions must be clearly defined, concise and explicit. This is to
eliminate the chance that the questions will mean differently to different
people. If the researcher fails to do this, then respondents will be
answering questions differently. It is always best to frame the questions
empirically and as much possible and to avoid unnecessary use of
adjectives. For example: while asking a question about frequency of
usage the same question can be asked in two different interpretations
as given below.
230
PRIMARY DATA
Questions:
How frequently do you use dental floss?

1. Very often
2. Often
3. Sometimes
4. Rarely
5. Never
This same question may be asked with different choices.

1. Everyday or more
2. Two to five times a week
3. Once a week
4. Once a month
5. Never
There are more subtle aspects such as language. Avoid the use of ethnic or
colloquial expressions that might not be familiar to respondents. Complex
technical terms should be also avoided.
2. Leading questions: A leading question is the one which implies to a

certain type of answer. It is easy to make this mistake not in the
question but in the choice of answers. A closed ended question must
supply choices that not only cover the whole range of responses, but
that are also equally distributed throughout the range. All answers
should be equally likely. For example, the answer choices could be:
(a) superb
(b) excellent
(c) great
(d) good
(e) fair
(f) not so good.
A less blunt example would be a ‘yes’ or ‘no’ type of question. Question:

According to you, is the Dell laptop provided with a Cad interface?
In this case, even if the respondent loves Dell as their favorite laptop, if it
cannot be used as the best interface Cad software then this question will
definitely have an unbiased response.
231
PRIMARY DATA
3. Phrasing: Most adjectives, verbs, nouns in English have either a

positive or negative effect. Two words may have equivalent meaning yet
one may complement to the other, at the same time another meaning
can be insulting. For example, consider two words such as,
(a) Child like

(b) Childish.
The very first word is an affection term and the word ‘childish’ is not a term
liked by most of the people.
A more subtle but less troublesome example can be made with verbs that
have neither strong, negative or positive overtones. For example,
consider the following questions:
a. Do you agree with the government’s plan to oppose the new

Telangana state?
b. Do you agree with the government’s plan to curtail development of

the new Telangana state?
Here we notice that both the questions ask the same thing, but since they
are asked differently it will produce different data. In this case, it is
impossible to predict the outcome to counter this problem, so the
questionnaire must have sufficient tracking methods.
4. Personal questions: Personal questions of the embarrassing type

should be avoided. The generated data is nothing but trust and care for
your respondent. Income of an individual/family is often a tricky
personal question. Thus, instead of insisting on a specific salary amount,
appropriate salary range is given (less than ` 10.00 lakhs, ` 11 to ` 15
lakhs, ` 16 to 20 lakhs, ` 20 lakhs and above), to encourage valid
response.
5. Hypothetical questions: Hypothetical questions are based on

incomplete data and fantasy. For example, if you are the President of
India, how will you stop corruption?
232
PRIMARY DATA
Such a question forces the respondent to think about what he or she

may have never considered. These types of questions do not produce a
relevant and consistent data and it is a waste of time. Never ask
hypothetical questions.
6. Prestige bias: Prestige bias is the tendency for respondents to answer

in a manner which makes them feel better. To be more precise people
may not lie directly, but may try to put a better light on themselves. For
example, commonly when people are asked to respond about their
opinion about a political party during elections, then they will not have a
clear opinion and reason to validate the same. Many times people
express what they like or dislike based on a special campaign such as
distribution of food and clothes. In this case, they do not consider
whether they agree to the policies of the political party.
There is very little that can be done to prevent a prestige bias. The best
way to deal with prestige bias is to make the questionnaire as private as
possible. In such situations, telephonic interviews and mail
questionnaires are the better option. The further away the critical eye of
the researcher, more honest are the answers.
C. Administering the questionnaire: This is the actual step where the

data is being collected. Once the questionnaire is designed and
returned, it is put forth to the respondent in the best possible manner,
as specified in the research design to obtain the responses and record
them.
(i) Mode of administration:
Questionnaires can be self-administered or filled in by an interviewer. A

self-administered questionnaire can be mailed to the respondent, if the
correct mailing address is available or it can be delivered personally.
Interviews can either be conducted over the telephone or face to face.
Sometimes, it is advisable to use the self-administered questionnaire which
provides a greater privacy to the respondent. It is advisable that the self-
administered questionnaire should be checked with the respondent for
completeness and consistency during establishing contacts. In case of
highly technical or special information, it must be validated by a qualified
person. For example, an engineer or doctor for completeness, consistency
233
PRIMARY DATA
and authenticity of the information. In the case of direct

administration, following general rules should be followed:
• Present a question exactly as written in the questionnaire.
• Ask the questions for the second time and in the same way as the first
occasion as if the respondent has not understood the questions.
• Do not induce certain answers.
All the questions in the questionnaire must be asked and obtained answers
for.
The following aspects must be considered while administering:
• Who will record the answers to the questions: the respondent,

proxy of the respondents such as parents, brother, sister or an
interviewer.
• Method of application: Mail, telephone, e-mail, Internet, personal

interview, etc.
• Length of the time to complete: What is the availability of the time to

the respondent and what is his willingness? (it is always best not to
exceed more than 20 minutes per interview). Length of time also must
be take into account, days within which filled in questionnaire is expected
to be collected to ensure that project timeline is under control.
• Knowledge level of the respondent: What level of knowledge is

necessary to complete the questionnaire?
• Open and closed-ended question: Thinking about whether open or

closed ended questions or a combination of both to be used is essential.
Open-ended questions are generally associated with qualitative research
and closed-ended with quantitative research.
• Validation of the questionnaire: It is best to determine whether the

questionnaire already exists, particularly it has been validated by a
professional. Incorporating a standardized questionnaire reduces
234
PRIMARY DATA
complications, obtains accurate data and helps to validate the

information.
• The response variables: Does the question require a ‘yes/no’ answer

or ‘scale from 1 to 10’, etc. The analyst should be consulted for the sort
of statistical tests he or she intends to carry out.
D. Interpretation of the result: A questionnaire is a powerful evaluation

tool. A questionnaire always begins with an understanding of the
capabilities of a questionnaire and how it can help a research? A
significant amount of care is required in planning and setting objectives
of the questionnaire. Questionnaires are like any scientific experiments.
One forms a hypothesis with the help of an experiment which will help
to prove or disprove the hypothesis.
Analysis
Analysis is the entire process by which sense and meaning are made of the
data gathered in marketing research, post its collation, tabulation and
statistical validation enabling the emergent knowledge application to
clients’ problems.
Post receiving the questionnaire, answers are coded. Coding is essential to

feed it in the statistical analysis tool like SPSS, etc. which enables speedy
statistical calculations. This is generally applicable to quantitative research.
Qualitative research may not do it this way.
One of the integral part of analysis is interpretation also. Analysis gives you
numerical values and statistical confirmations/concerns based on which
individual need to interpret it. Some questions interpretation could be
stand-alone while few others may have relative connect with other
question/s. For example, when you have asked an individual whether he
will buy new iPhone, then the researcher need to analyze not only this
question but also match it with income level specified by the respondent.
235
PRIMARY DATA
Filed Execution of Questionnaire
The interview-related errors can be reduced through proper training.

During the training, interviewers are provided with the subject information
and a thorough understanding of the protocols and purpose of the
research. Generally, a printed manual of guidelines or written instructions
are given on, how to conduct an interview? and how to act in response to
different situations? For example, what should be done if the respondent
has not clearly understood the question?
Trainers normally include interview drills, question answer sessions,

lectures, practical interviews, etc.
During the training sessions, the protocols would be discussed in detail.

The trainer should ask questions to the interviewer about the survey and
the protocols. The manuals should cover maximum possible situations that
may arise on the field. How to explain the question to the respondent? Or
how to probe a respondent to get precise answers? This part is covered in
the field training program where the researcher and the interviewer make
combined calls to appraise the interview methods.
9.4 Attitude Measurement
Attitude is a result of a number of external and internal factors. Gene F.

Summers defines ‘attitude as a predisposition to respond to a idea or a
object’. This refers to the consumer’s predisposition about the product or
the service. If it is favorable then the consumer is likely to purchase to
product or service. Attitudes about product or services mainly
comprise of three elements:
1. Beliefs (product strength, economy of the product)

2. Likes and dislikes.
3. Readiness to buy the product
The above three elements together create an image of the product in the
mind of the consumer. Attitude measurement is commonly known as
Scaling.
236
PRIMARY DATA
Attitudes are a person’s general evaluation. Many of the questions in

marketing research surveys are focused to measure attitude. The
customer attitude is an important factor for the following reasons:
• Attitude helps to explain the willingness.

• Attitudes do not change much over a period of time.
• Attitudes are an integral part of consistency of the behavior.
• Attitudes are directly related to the preferences.
Issues in Attitude Measurement
Attitudes can be measured by using the following procedures:
• Self-reporting: In this method, respondents are asked directly about

their attitudes. Self-reporting is the most common technique used for the
measurement of attitude.
• Observation of behavior: Assuming that behavior is the result of

attitude, attitudes can be recognized by observing behavior.
• Indirect technique: This method uses unstructured ways to measure

the attitude. For example, sample test and association of word test
through short questions.
• Performance of objective tasks: It is assumed that the individual’s

performance is linked with an attitude. For example, the respondent may
be asked to memorize an argument from both sides. He or she is likely to
do a better job on the arguments that he or she is impressed upon.
• Physiological behavior: The respondent’s responses are stimulated in

this method and then subjected to electronic or mechanical machines to
measure the response intensity. In this method, the intensity can be
measured by machines, but it is difficult to confirm a positive or negative
attitude.
• Multiple measures: This method uses a mix of techniques which can be

used to validate the findings.
237
PRIMARY DATA
The measurement techniques can be divided in the following

manner:
1. Non-disguised non-structured methods

(i) Focus group discussions
(ii) In-depth interviews
2. Disguised non-structured techniques

(i) Word association
(ii) Story completion
(iii) Sentence completion
(iv) Pictorial technique and cartoons method
3. Non-disguised structured techniques
4. Disguised structure technique

(i) Ordinary scale
(ii) Interval scale
(iii) Ratio scale
(iv) Graphic rating scale
(v) Multiple item scale which includes the Likert Scale and Thurston
Scale
1. Non-disguised Non-structured Methods
In these methods, there is no fixed structure for conducting interviews and

the purpose of interview is not secretive.
(i) Focus Group Discussions:
In this type of interviewing method, a discussion is focused on the subject

of research. This kind of interview takes about two hours if conducted in a
structured manner. The interviewer many a times plays a role of a
moderator and while conducting a discussion skillfully makes the research
related observations. In the latest focus group interviews, the entire group
discussion is video recorded to make detailed observations along with
expressions and reactions.
238
PRIMARY DATA
Main characteristics of the focus groups are as below:
• Conducted in an unstructured manner. Discussions are taking place

through the moderator. Free flow of ideas are encouraged in the group.
• Usually 8 to 10 members in the group who are target respondents or the

consumers.
• Usually it lasts up to 2 hours, an inexpensive and time-efficient method.
• Responses can be completely recorded.
• In today’s times using computers and internet technology, one can have
online discussions. Chat rooms and net forums are popular focus group
discussions which are conducted online.
• In this kind of discussions, group dynamics is useful in developing new

schools of thoughts.
(ii) In-depth Interviews
This is a detailed interview method between a respondent and a well

trained researcher. During the session, the respondent is encouraged to
express himself or herself freely about his or her preferences, interests,
attitudes, feelings, activities, moods, opinions, beliefs and values with
detailed elaborations. In the whole interview, the interviewer is expected to
talk less and listen more. In today’s times, video recording is made for
analyzing various aspects of behaviour like moods, styles, body language,
gestures of the respondent.
239
PRIMARY DATA
The following are important characteristics of the In-depth

Interviews:
• Interviews bring out rich and most recent information.

• In interviews skillful probing is very essential to uncover hidden issues.
• These can be time consuming and the responses could be difficult to
interpret.
• Interviews are expensive, the interviewer bias can be easily introduced.
• Rapport establishing and obtaining useful information for the subject of
research are two core activities under an interview.
• Questions are cascaded in which the interviewer begins questioning
about external environment and social phenomena and gradually enters
in the personal arena to uncover internal attitudes and feelings.
• Many a times symbolic analysis is used by the interviewer in which
deeper symbolic meanings are probed by asking questions about their
opposites.
2. Disguised Non-structured Techniques
In these methods, the interviewee does not know that his or her attitude is
being measured. This technique uses many different types of stimulation to
which the respondent is asked to respond. In this method, the respondent
reveals several elements of attitude which otherwise he would not have
disclosed in direct questioning. In this method, the use of projective
technique is very common, often consumers give their views which are
rational and unconsciously delivered, these methods give rise to incorrect
data, insufficient information. The researcher must be smart enough to
conduct a variety of disguised tests to bring out the truth. The researcher
uses many methods such as complete the incomplete statement, untitled
pictures, word association tests, etc. This method forms an integral part of
in-depth and focus interviews.
The following are main characteristics of these techniques:
• These are unstructured and stimulated which encourages the

respondents reveal their underlined motivations, beliefs, attitudes or
feelings.
• They are all indirect techniques that attempt to disguised for the purpose
of research.
240
PRIMARY DATA
Examples of Projective Techniques:
• Word association: It starts with the first word which comes to the mind
after one word is narrated by the researcher: Only some of the words in
the list are test words that the researcher is interested in and the rest
are feelers. This method is useful in testing brand names. The Variants
include such as change word association and control word association.
• Sentence completion: In this method, respondents are given

incomplete sentences and are asked to complete them.
• Story completion: In this method, respondents are given part of a story

and are asked to complete the same.
• Cartoon test or Pictorial test: In this method, the pictures of cartoon

characters are shown in specific situations and with dialogue balloons.
And one of the dialogue balloons are kept empty to be filled by the
respondent.
• Thematic apperception test: In this method, the respondents are

shown a series of pictures and asked to make-up a story about a picture.
• Role playing: The respondents are asked to play the role of someone
else and the researcher assumes the respondent shall project their own
feelings or behaviors in the role.
• Third person technique: A verbal or visual representation of an

individual and his or her situations is presented to the respondent. The
respondent is asked to relate the attitudes and feelings of that person.
The researcher assumes that talking in the presence of the third person
will minimize the social pressure and will help with a standard response.
• Metaphor analysis: In 1990, a study on consumer research revealed

that non-verbal communication is more common and efficient, and
people think with the help of images and not the words. The consumer’s
thought process is in the series of images, it is likely that the consumers
don’t have enough words to express adequately. Hence, it is important to
represent their images in an alternate non-verbal form, like pictures,
photos, sound, cartoons, animations, etc. The use of one form of
expression or to describe or represent the feeling about another is called
241
PRIMARY DATA
the Metaphor. The Zeltman Metaphor Elicitation techniques (ZMET) is the

first patented M.R. tools which realizes visual images to access the
consumers deep and subconscious thoughts about products, services and
marketing strategies.
3. Non-disguised Structured Techniques
The Non-disguise structure methods of measuring attitudes include various

self-rating scales of the graphic, ranking, multi item types. In general they
are simple and easy to use, yet they give good results. The only problem in
using such a scale is with their validity that is, do they really measure what
they presume to measure? It is difficult to find standards against which the
validity is measured. The common method has been of comparing the
opinions of the products with respect to their market shares or with
purchases following opinion measurements. These tests tend to support
the validity of various attitude measures but the correlation is not really
perfect. Price is a confusing factor in these validity tests, as the most
expensive brand is often considered the best even though many consumers
may not choose to pay the high price.
4. Disguised Structure Technique
Disguised structured techniques have many of the advantages of non-

structure methods. The disguised structured method will slowly replace
non-structured methods as researchers become more imaginative in their
use.
Various scales have been made to measure attitude in this method. The
term scaling is applied to attempt the attitude measurement objectively.
Depending upon the attitude to be measured, the appropriate scales are
designed. Scaling is a technique used for measuring qualitative responses
of the respondents such as feelings, perceptions, likes, dislikes, interests
and preferences.
The most frequently used scales are:

1. Nominal scale.
2. Ordinal scale.
3. Interval scale.
4. Ratio scale.
242
PRIMARY DATA
These four types of scales are popularly used for marketing research.
1. Nominal Scale: This is a very simple scale. It consists of an

assignment of facts to various alternative categories which are usually
exhaustive as well as mutually exclusive. These scales are just
numerical and are least restrictive of all scales.
For example, credit card numbers, bank account numbers, employee ID

numbers. It is simple and widely used when the relationship between two
variables are to be studied. In a nominal scale, numbers are no more than
labels and are used specifically to identify different categories of responses.
Q.1: May I know your gender?

❖ Male
❖ Female
Q.2: How do you maintain an inventory of stock items?

❖ By product category
❖ At a centralised store
❖ Department wise separate
❖ Single warehouse
Q.3: What is a daily turnover of your customers?

❖ Between 100-200
❖ Between 200-300
❖ Above 300
2. Ordinal Scale: Ordinal Scales are simplest attitude measuring scales

used in marketing research. It is more powerful than a nominal scale in
that the numbers possess the rank or order.
Example 1: Rank the following attributes of the hair dryer (1-5), on their
importance in a hair dryer.
(a) Company name
(b) Functions
(c) Price
(d) Comfort
(e) Design
243
PRIMARY DATA
The most important attribute is ranked on number 1 and the least

important attribute is ranked on number 5. Instead of numbers, letters or
symbols can also be used to rate the ordinary scale. Such scales make no
attempt to measure the degree of favorability of different rankings.
Example 2: If there are 4 different types of raw materials, they are to be

ordered on the basis of quality such as Grade A, Grade B, Grade C, Grade
D and it can be again done on an ordinal scale.
3. Interval Scale: In this method, the distance between various

categories is not like nominal, or numbers like in ordinal, are equal in
case of interval scales. The interval scales are also known as Termed
Scales. An interval scale has an arbiter zero point with further numbers
to be place at an interval.
A classic example of this is a Thermometer.
Example 1: How would you rate your current television on the basis of the
following attributes?
Company Less Known 1 2 3 4 5 Well known

name
Functions Few 1 2 3 4 5 Many
Price Low 1 2 3 4 5 High
Design Poor 1 2 3 4 5 Good
Overall Very Dissatisfied Satisfied

satisfaction
Such a scale permits the researcher to say that position 5 is above position
4, and also the distance between 4 and 5 is the same as distance between
3 and 4. The data obtained from the interval scale can be used to calculate
the mean score of each attribute of the overall respondents.
4. Ratio Scale: Ratio Scales are not very widely used in marketing
research, unless base items are made available for comparison. In the
above mentioned example, a score of 3 or 4 in one quality does not
mean that the respondent is twice more satisfied than the respondent
who makes score of 2 on a scale. A ratio scale has a natural zero point
244
PRIMARY DATA
and further numbers are placed at equally appearing intervals. For

example, scales for measuring physical quantities like length, weight,
etc.
The ratio scales are very common in physical scenarios. Quantified

responses forming a ratio scale analytically are the most versatile. A Ratio
scale possesses all the characteristics of an internal scale, and the ratios
are the numbers on these scales that have meaningful interpretations.
Demographic data on a certain description attributes if, they are obtained
through open ended questions, will have ratio scale properties.
Consider the following questions:
Q.1. What is your annual income before taxes? -----INR
Q.2. How far is Cineplex from your house? ----- KMS.
Answers to these questions have a natural, unambiguous starting point,

namely zero. Since the starting point is not chosen arbitrarily, computing
and interpreting the ratio makes sense. For example, we can say that a
respondent with an annual income of INR 50,000 earns twice as much as
one with annual income of INR 25,000.
Self Rating Scale: A scale is any group of questions or items with a

common theme. An addictive scale(often called a “Likert scale”) is a set
of items where each person gets a score according to how many questions
he answers in a certain direction or in a certain way. The old school spelling
test (9 out of 19 spellings right means that you were a good speller) is one
example. Intelligence, personality and most attitude scales are of
this type. They are additive scales. In an intelligence scale, the only
possible scores on an item are 1 or 0 (i.e.,‘right’ or ‘wrong’). In an attitude
scale, it is customary to offer a range of responses such that a person gets
a higher score, the more strongly he agrees. A common scheme is to
give:
5 = Strongly Agree
4 = Agree
3 = Not sure
2 = Disagree
1 = Strongly Disagree.
245
PRIMARY DATA
This number system assumes each possible answer spaced along an equal
interval on the continuum.
An important feature of such a scale is that it should consist of an equal

proportion of oppositely scored items. Thus, a ‘Strongly Agree’ response on
the following two items would get a number 5 in the first case but number
1 in the second case.
1. All men are equal.

2. Inequality is nature’s law.
In adding up scores on several items, it is assumed that all items basically

measure the same thing. Proof of this is needed in the form of a positive
correlation between all the items. In fact, what is done is that average
response of any person to an item is found out. We want to understand if
on an average an individual agrees to the statement or disagrees with
them. We can always get such an average by dividing the total score by
the number of items. The averaging effect is useful in the process as it
enables to randomize the variability in the individual items. For example, in
the following items, an attitude to innovation is expressed but is using
‘innovation’ in a different context.
1. I enjoy modern music better than ancient music.

2. Australia’s tie-up with Great Britain will not help much.
3. The best buildings are those whose architecture is functional and
unique.
4. The Best place for a woman is in the house.
It is known that answers to all these four answers inter-correlate

significantly, and yet they talk about different things. The common factor in
all four statements is old v/s new. If we give one for strongly agree
response on items 1 and 3, and 5 for a response for 2 and 4 then we are
talking of being conservative. In this case one item alone would not draw
the scale. If we take item 4 then it will be affected by subject’s gender. In
item 3, the answer might be affected by an artistic test. In item 2 it might
be affected by one’s birth place. In case of item 1 it might be affected by
one’s taste of music. Thus, by taking an average we can minimize the
effect and we can provide a common treatment to all items held.
246
PRIMARY DATA
Types of Self Rating Scale
1. Graphic rating scale.
2. Itemize rating scales.
(a) Likert scale.

(b) Semantic differential scale.
(c) Stapel’s scale.
(d) Multidimensional scale.
(e) Thursten’s scale.
(f) Gutman’s scale/scalogram analysis.
(g) Q Sort technique.
1. Graphic Rating Scale
The respondent’s rate the object by placing a mark at an appropriate

position on a line that runs from one extreme of a criteria variable to
another.
This line is known as Continuous Rating Scale. The customer can occupy
any position on the scale. In this method, we measure the physical
distance from the extreme left position to the response position on the
line; the greater the distance, more favorable attitude towards the brand.
The limitation in this method is the coding and analysis of data as this
requires substantial amount of time, since we first have to measure the
physical distances on the scale for each respondent.
2. Itemize Rating Scales
These scales are different from graphic rating scales. They have brief
descriptions associated with each category. They essentially take the form
of multiple category questions. These methods are widely used in
marketing research.
247
PRIMARY DATA
(a) Likert Scale
It was developed by Rensis Likert. Here, the respondents are asked to

express a degree of agreement with each of a series of statements. Each
scale item has 5 response categories ranging from strongly agree to
strongly disagree.
Each statement is assigned in a numerical score ranging from 1 to 5 and it

can be also scaled –2 to +2. For example, if the quality of Vadilal’s Ice
cream is poor quality, then not good is a negative statement and strongly
agree with this means the quality’s not good.
Each degree of agreement is assigned in a numerical score and the total

score of all the respondents is computed by summing-up this score. This
total score of respondents is a specific opinion about a particular brand.
Likert scale is of the ordinal type, which enables one to rank attitudes, but
it does not measure differences between attitudes. While designing a good
Likert scale, first a large pool of statements relevant to the measurement
of the attitude has to be generated, then removing vague and non-
discriminating statements, a uniform scale is built for computation. Thus,
the Likert scale is a 5 point scale ranging from strong agreement to strong
disagreement. This method has no judgment gaps. Therefore this method
is highly popular in marketing research.
(b) Semantic Differential Scale
This is a 7 point scale and the end points of the scale are associated with
bi-polar labels. Bi-polar means two opposite streams. Individuals can score
between 1 to 7 or –3 to +3. The profiles are generated after computing the
total responses. Two to three products can be analyzed simultaneously and
joining these profiles, a profile analysis can be conducted.
The Mean and medium are used for comparison. This scale helps to
determine overall similarities and overall differentials between the objects
under study. In marketing research, the Symantec Differential Scale is
248
PRIMARY DATA
used to develop an image profile, it provides a good basis for comparing

images of two or more items. The main advantage of this scale is its
simplicity and it is a less complex method as compared to other methods.
The method is easy and fast to administer, but also sensitive, versatile and
reliable.
Suppose a personality of a person needs to be measured the

options given are:
(a) Unpleasant/Submissive.
(b) Pleasant/Dominant.
Then the semantic differential scale for the above example will look like:
1 2 3 4 5 6 7
Unpleasant Submissive Pleasant Dominant
(c) Stapel’s Scale
It was developed by Jan Stapel. This scale has some distinctive

features:
a. Each item has only one word, phrase indicating the dimension it
represents.
b. Each item has ten response categories.
c. Each item has an even number of categories.
d. The response categories have numerical labels. For example, in the

following items, to test the quality of a soft drink we ask the
respondent to rank perceived quality of the soft drink from +5 to –5
and select words which describe the best according to the
respondent.
249
PRIMARY DATA
+5
+4
+3
+2
+1
High quality
–1
–2
–3
–4
–5
This scale is known as Unipolar Rating Scale.
(d) Multidimensional Scale
It consists of a group of analytical techniques which are used to study

consumer attitude related to their perceptions and preferences.
i. The major attributes of a given class of products perceived by the

consumers in considering the product and by which they compare the
different ranks.
ii. To study which brand competes directly with each other?
iii. To find out whether the consumers would like a new product with a
combination of new characteristics.
iv. Ideal combination of product attributes as perceived by the

consumer.
v. Sales and advertising messages and captions may be liked by

consumers, brand perceptions, etc.
This technique is based on the integrated efforts of computer hardware and

software. The respondents are asked to create different groups of brands
based on very similar, like similar, not similar and so on. A lack of fit brand
index is thus calculated by the computer programs. The purpose of this
exercise is to identify small dimensions which will eliminate the stress for
the consumer. After the configuration for the consumer’s preference has
250
PRIMARY DATA
been developed, the next step is to determine the specific preference with
respect to the product under study. These techniques attempt to identify
the product attributes preferred by the consumer considering their
importance to the consumer. A researcher makes an effort to measure this
relative importance.
This scaling involves unrealistic assumptions that a consumer who

compares different brands would perceive the differences on the basis of
only one attribute. For example, what are the attributes for joining into an
MBA program? The responses to this,
(a) To build a career in management.

(b) To be an entrepreneur.
(c) To get into marketing research.
There are a number of attributes to this, logically one cannot base decision
on one attribute only. Therefore when consumers are choosing between the
brands, they base their decision on various attributes. In practice, the
perception of the customer involves different attributes and any one
consumer perceives each brand as a composite of different attributes.
Multidimensional scaling techniques are most effective whenever we
choose from a number of alternatives. Such scaling is widely used in the
research area such as market segmentation, product life cycle, advertising
selection and vendor evaluation.
The limitation of this scale is it is difficult to pin point the concepts of

similarities and preferences.
(e) Thursten’s Scale
These are also known as Equal Interval Scales. They are generally used
to measure the attitude towards a given concept. For this purpose, a large
data in the form of a statement is collected which relates to the concept
being measured. The scaling is done along as an eleven category scale in
which each category expresses different degree of favorableness towards
the concept. The items are then ranked according to the mean ratings
assigned by the researchers and are used to design a questionnaire. The
statements use such wordings that a person can either agree or disagree
with them. The scale is then administered to different respondents whose
scores are computed. A respondent who disagrees to all the items has a
251
PRIMARY DATA
zero score. Thus the advantage of this scale is it is an interval

measurement scale. However, this is a very time consuming and labour
intensive method. They are commonly used in consumer psychology
research and tanning programs etc.
(f) Gutman’s Scale/Scalogram Analysis
It is based on the idea that items can be arranged along the continuum in
such a manner that a person who agrees with an item or finds an item
acceptable will also agree with or find acceptable, all other items
expressing a less extreme position. In this scale, each scale represents a
unique set of responses and the total score of every individual is obtained.
This scale takes a lot of time and effort for development.
These scales are commonly used in political science, public opinion,

psychology and research. For example, the popular research which was
conducted for advertising in which the subject was asked whether children
should be a part of the soft drink promotion ad campaign.
(g) Q-Sort technique
This technique is called as a Discriminative Technique. It is used to

discriminate an object amongst a large group of objects quickly. This uses
rank order procedures and the objects are sorted out on the basis of
similarity and other acceptable criteria. The range of number of objects to
be sorted should be between 50 to 150 approximately to obtain the best
results. For example, if we are considering 8 different brands of tomato
sauce. It can be done on the basis of taste. We can classify such brands in
to tasty, moderate and non tasty. Similarly, we can also classify them
based on the price such as low, medium, high. Then, we can use
perception of the people whether they prefer low price brands, moderate or
high. As a result, we are classifying number of objects to be placed in three
categories, low, medium or high. Thus, the Q-Sort technique attempts to
classify different objects in terms of their similarity to the attribute under
study.
252
PRIMARY DATA
Limitations of the Attitude Measurement:
• There is an inability to predict the consumer behavior in future, in

research there is no way to know whether the attitude of the consumer
shall remain the same in the future. They tend to overlook the immediate
environment of the consumers who are greatly influenced and motivated
by external factors and the environment.
• The relationship between attitude and buying behavior still remains

unexplainable. Liking a product and buying it although they are
connected, however they are still independent issues.
9.5 Observation Method Of Data Collection
Wide range of research techniques are used in observing consumer

interaction naturally with their surrounding products and services. A core
advantage of observational research is that often the consumer is unaware
that they are being observed allowing their behavior to be observed
naturally.
Interviews, intercepts, surveys and focus groups generally produce a

reported data which may be subjected to many sources of errors, memory
shortfalls, unconscious motivations of the respondents. Direct observations
can reduce much of these errors by relying purely on observed consumer
behavior rather than reported data. A classic example of such keen
observation is video recording of consumers in Shopper’s Stops using
advance cameras. The mall management has a special observation team
wherein a structured check list is followed to record the behaviors such as
the rounds that the consumer takes, attention to the point of sales,
promotions, tracking of eye movements etc.
The popular forms of observational research includes the mystery shopping

to test quality of the consumer experience or quality of the customer
service. Only creativity limits the types of observational techniques that
can be used to better understand consumer behavior in certain products or
services. When the focus is on actual behavior than perception,
observational techniques are really proven to their reliable performance.
253
PRIMARY DATA
Participant Observation: It is one of the common methods for qualitative

data collection. It requires that the researcher becomes a participant in the
experiment. The role of the researcher as a participant is observation,
making field notes and analyzing the field data. Participant observation
often takes several months of intensive work because the researcher needs
to be naturally adapted to the culture and environment.
Direct Observation: In the direct observation method, direct observer is

not a participant but he is in the process in an unobstructive manner
(observing from the distance). An observer does not interact with the
consumer in any manner so as to inject the bias. The direct observation is
always based on a detached perspective. In this method, technology plays
a very useful part. For example, video recording, watching through mirrors,
etc. In this method, the researcher is completely focused on direct
observations and making notes of natural responses.
9.6 Web-Based Primary Data Collection
With rapid usage of the Internet throughout the world in 1990s and at the
same time with increased difficulty of conducting marketing research,
increased cost of conventional research methods many companies began to
adopt the internet as a preferred platform for conducting marketing
research.
In the 21st century, most of the people across the world have an access to
the Internet either at home, work, school etc. because of the advent and
wide spread adoption of the Internet technology researchers are becoming
more comfortable with it as a platform for online service, cracking
research, focus groups, etc.
Internet Data Collection: Data collection is an elementary step in

marketing research. Sample data collected through the various means
provides valuable information for analyzing behaviors of consumers, recent
trends, potential markets. Traditional methods of data collection include
surveys, interviews, mail questionnaires.
The growth of Internet has revolutionized most of the businesses. It has

also impacted marketing research. The Use of Internet has made it
possible for the researcher in getting information in a cheaper, easier and
254
PRIMARY DATA
quicker way than ever before. Sometimes, the Internet also allows
gathering of more detailed information than traditional surveys.
Internet surveys can be done in many different ways. Some of the

common forms of marketing research through Internet surveys are
discussed as below:
1. e-Mail surveys: The e-mail survey is the most basic online search. e-
Mail surveys are very much similar to conventional surveys, except the
questionnaire is sent to the respondent electronically that is by e-mail.
Since the e-mail is sent at once, the respondent gets sufficient time to
think about and respond. In other words, time lost in transit is
completely eliminated. In fact, it is very simple and also no additional
tools or software’s are required for the survey. It is the least expensive
method and still the most efficient method. According to
(Macelory,1999), the ideal use for e-mails is for the internal corporate
surveys because the internal respondents tend to follow instructions
better than the external respondents.
2. Bulletin Boards: Bulletin boards are useful for a Delphi method

(modified) – collecting responses over a time. In this method which is
similar to focus groups, the researcher invites a group of respondents to
a particular website in a specific meeting room, where a topic under
discussions is posted. People can respond to the questions and express
their opinions based on the comments received or in reply to the
comments. It is a relatively cheaper option but still little costlier over
emails, since the cost of handling the transcripts and codes is higher
and it is also time consuming. The two biggest advantages of this
system are: rapid actions and rich data is obtained during the
discussions.
3. Web HTML: The HTML form-based surveys allow the respondent to

click buttons and boxes, to fill the text boxes and eventually to submit
the information all at once. The colorful designs such as graphics, audio-
visuals and animations make the survey very interesting. In today’s
world, online surveys are very common and almost accounting for about
80% of all the surveys.
255
PRIMARY DATA
One of India’s leading automobile company conducts Customer

Satisfaction Survey among its international customers, using the power
of Web HTML and email. What it has done is avoided customer being
taken to another micro-site for answering. Instead, within the email
itself, clickable Q&A format opens and 5 questions are asked covering
pre-purchase interaction, product intro/demo and test marketing,
documentation support and delivery handling.
4. Computer-Assisted Telephonic Interviews or Disk by Mail: This is

a new form of online research. This is used as an online survey tool.
This technique allows the individual researcher to construct highly
sophisticated studies for the online environment. However, these tools
limit the range options in which the surveys can be displayed.. Some
software’s may limit the questions to be displayed on the web page,
while others may limit the design flexibility. The researcher has a choice
between 2 alternatives. Another disadvantage of this system is these
tools usually cannot allow controlling the research process.
5. Web Customized Interactive Programming: This is the most

powerful and flexible tool, but an expensive tool. With this, the
researcher can have a custom programmed online survey. Custom
programming not only provides all sorts of modern technical controls
such as screening, skip patterns, error checking, etc., but also many
other functions which offer the highest level of flexibility to the
researcher. The core benefit of this technique is it offers flexibility in
layout. Unlike fixed form tools, this online survey tool enables the
researcher to flexibly choose many different designs options such as
questions/response styles, backgrounds and graphics. In addition to
this, it provides the facility such as a live running website for the survey
frames., and running procedures such as file downloads during the
surveys (Mclelroy, 1999). However, as compared to fixed form tools,
custom designed surveys take longer to programme and prove to be
more costly.
6. Downloadable Surveys: Another popular online survey method which

are downloaded from the Internet and run on the previously installed
software by the researcher. This technique shifts the task of computing
from an online server to the respondent’s PC. Once the survey has been
downloaded from the internet to the respondent’s PC, a data file is
created which can then be opened the next time internet is accessed.
256
PRIMARY DATA
Custom programmed surveys can be used for a single-use survey. This

technique allows a researcher to have maximum control and flexibitly
over all research techniques. This type of an online survey, assumes
that the respondents have an adequate knowledge of computers to
install software correctly and handle the data upload process. The online
research is more costly and time consuming as compared to other
forms. This technique is also often used with panels or groups who
regularly communicate with the survey organizers.
7. Web Moderated Interviews: This is a qualitative form of online

research for example, chat rooms in real time. Sometimes this is also
referred as an Online Focus Group. However, there are some distinctions
such as, people in traditional focus groups are influenced by the
moderator but in chat rooms the control is with people who have logic
and mechanism. The online moderators must control speedy typists and
control the chat rooms. In this method, the biggest advantage is that
people from various geographical areas can be brought quickly and
efficiently together to participate in the discussion.
8. Data Mining: Data mining is very close to online data collection.

Internet data collection has increased the demand for data mining tools.
Data mining can be defined as a class of data base applications which
look for hidden patterns in a group of data which can be used for
predicting the future behavior. For example, data mining software can
help retail companies to find customers with common interest. Data
mining software doesn’t only present the data, but it also helps to
discover relationships amongst the data. It is very popular in science
and mathematics, however, in the field of marketing it is used for
getting useful information from the websites.
In the recent years, data mining is getting special importance in

marketing research. This is due to consumer-centric marketing. The goal
of today’s marketing efforts is to understand the consumer needs in the
best manner. Usually companies are interested in generating the data
such as buying patterns, demographic data, psychological trends, etc.
The entire data generated must be kept as an organized data-base and
this is what exactly is achieved by the data mining applications.
257
PRIMARY DATA
This detailed information can be used in a variety of patterns and used for
different analysis purposes. In the whole process, the data keeps on
accumulating and getting stored in a structured manner, this data is
compared with fresh data coming every time and the comparative data is
used by the company’s marketing department to create appropriate
marketing plans and helps to focus on targeted customers.
Data mining has a facility of filters and validation which automatically

removes invalid and bogus data from the base. These provisions are built
in the software itself, as a result the erroneous data doesn’t reach
marketing.
Summary of the Web-based Primary Data Collection
• No Interviewers.
• Survey is conducted over the Internet.
• This method often supplements other methods for data collection.
• Quick feedback.
• Technological advantages are improving online survey methods.
• Web-based observation techniques are developed.
• Considered ethical with the user’s permission.
• Cookies and their use do not hide from users.
258
PRIMARY DATA
9.7 Summary
Primary data is a data observed or collected directly from respondent (first

hand experience).
In primary data collection the investigator collects information by using

techniques such as interviews and questionnaires. The core issue in the
primary data is the data collected is unique to you and your research and
until it is published no one has access to it. There are several methods for
primary data collection.
(a) Questionnaire, (b) Interviews, (c) Observation, (d) Case study, (e)
Diaries
Questionnaire Design: Questionnaires are economical ways to gather

information in a structured format from potentially large number of
respondents. Often that’s the only feasible way to reach large number of
respondents needed for statistical analysis and drawing of results. A well
designed questionnaire if it is used effectively can gather valuable
information on both the overall performance of the testing system and
specific components of the system. The questionnaire which includes the
demographic questions of the participants can be used to correlate
performance and satisfaction with a test system amongst different group of
users.
While writing the questionnaire, it is important to understand what

questions are to be framed to obtain the meaningful data.
There are two methods of questions: (a) Open ended questions (b) Close
ended questions.
259
PRIMARY DATA
Following are the steps required to design and administer a

questionnaire:
Defining objective of a survey (b) Writing a questionnaire (c) administering

the questionnaire (d) Interpretation of the results
a. Open-ended questions: These questions are elaborative questions or

also called descriptive information questions. In this there are no
predetermined responses. Respondent is suppose to answer in own
words.
b. Closed-ended questions: These types of questions usually are taken

in the form of multiple choice questions. There is no clear answer to,
how many options really should be offered to the close ended
questions? The standard method is to provide sufficient alternatives.
Usually, these questions have 3-5 options. For questions that measures
a single variable or opinion odd number of alternatives should be offered
like 3 or 5.
Attitude measurement: Attitude is a resultant of number of external and

internal factors. Gene F Summers defines ‘attitude as a predisposition to
respond to a idea or a object’. This refers to the consumer’s predisposition
about the product or the service. If it is favorable then the consumer is
likely to purchase to product or service. Attitudes about product or services
mainly comprise three elements,
(1)Beliefs (product strength, economy of the product) (2) Likes and

Dislikes. (3) Readiness to buy the product.
The above three elements together create an image of the product in the
mind of the consumer. Attitude measurement is commonly known as
Scaling.
Attitudes are a person’s general evaluation. May of the questions in

marketing research surveys are focused to measure attitude. Customer
attitude is an important factor for the following reasons,
Attitude helps to explain the willingness, Attitude, do not change much

over period of time, Attitudes are integral part of consistency of the
behavior, Attitudes are directly related to the preferences,
260
PRIMARY DATA
Observation method of data collection: Wide-range of research

techniques are used in observing consumer interaction naturally with their
surrounding products and services. A core advantage of observational
research is that often the consumer is unaware that they are being
observed allowing their behavior to be observed naturally.
Interviews, intercepts, surveys and focus groups generally produce a

reported data which may be subjected to many sources of errors, memory
shortfalls, and unconscious motivations of the respondents. Direct
observations can reduce much of these errors by relying purely on
observed consumer behavior rather than reported data. A classic example
of such keen observation is video recording of consumers in Shopper’s
Stops using advance cameras. The mall management has a special
observation teams where in a structured check list is followed to record the
behaviors such as the rounds that consumer takes, attention to point of
sales, promotions, tracking of eye movements, etc.
1. The data which is directly collected from first-hand experience or by

observations is known as _____________.
(a) Secondary data
(b) Primary data
(c) Database
2. Which amongst the below mentioned is a popular technique to collect

primary data?
(a) Questionnaire
(b) Eye tracking
(c) Observations
3. The main purpose of a questionnaire is to _____________.

(a) Obtain full information of client
(b) Obtain complete personal detail of respondent
(c) Meaningful information to the research
4. The following types of questions are used to obtain subjective data:

(a) Open-ended questions
(b) Closed-ended questions
(c) Casual questions
261
PRIMARY DATA
5. An attitude can be defined as _____________ to respond to an idea or

an object.
(a) Behavior
(b) Physiological reaction
(c) Predisposition
6. Scaling is a measure of _____________.

(a) Observations
(b) Performance
(c) Attitude
7. One of the following is not true:

(a) Attitudes can be related to performances
(b) Attitudes helps to explain how ready one is to do something
(c) Attitudes change over a time
a. Collect the primary data during the visit to a shopping mall for Cadbury
Silk (taste opinion).
b. Prepare a questionnaire for the observation method data collection in

the children’s garment section.
262
PRIMARY DATA
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
263
SAMPLING
Chapter 10
Sampling
Objectives
Sample is a part of a whole or rest. Sampling helps in determining the

corresponding value of the population and plays a vital role in marketing.
After studying this chapter, students will be able to understand:
• The role of sampling in research
• Various scientific methods of sampling.
• Benefits of sampling
Structure:
10.1 Introduction to Sampling

10.2 Defining the Population
10.3 Determination of the Sample Size
10.4 Sampling Methods
10.5 Probability Sampling
10.6 Non-probability Sampling
10.7 Sample Size for Calculation
10.8 Sampling Errors
10.9 Types of Non-sampling Errors
10.10 Advantages of Sampling
10.11 Disadvantages of Sampling
10.12 Characteristics of a Good Sample Design
10.13 Summary
10.14Self Assessment Questions
264
SAMPLING
10.1 Introduction to Sampling
Sample: Sample is a “part of the whole to show what the rest is like”.
Sampling helps to determine the corresponding value of the population and

plays a vital role in marketing research. Sampling offers many benefits:
It saves cost and time since it is less expensive and less time consuming
for study than the entire population study. A population is a group of
individuals, persons, objects or items from which samples are taken for
measurement.
Definition: A ‘sample’ is a finite part of the statistical population whose

properties are studied to gain information about the whole.
When dealing with people, it can be defined as a set of respondents

(people) selected from a large population for the purpose of survey.
Definition of Sampling: Sampling is the act, process or technique of

selecting a suitable sample or a representative part of a population for the
purpose of determining parameters of the whole population.
Sampling is done carefully by experienced and qualified professionals,

Therefore, the results based on sampling are accurate. The subjects which
are of the fragile nature, i.e., they would destroy after one single test in
that case an appropriate sampling is a must to get results and this is the
only way to test such items.
The Sampling process involves:
• Defining the population.

• Developing a sample frame.
• Determining the sample size.
• Specifying sampling methods
The purpose of sampling is to draw conclusions about the populations from

samples. The researcher must use statistical methods to determine the
characteristics of the population by directly observing a portion of the
population.
265
SAMPLING
Sample Design: A Sample Design is a process of forming a sample

structure and developing a plan for analysis and interpretation. A Sample
design can be simple or complex depending upon the type of information
and the selection methods used.
A Sample design affects the size of the sample, and the way in which the
analysis is carried out.
The more accurate information required calls for a more complex design
and a larger sample size.
The sample design may make use of the features of the overall population;
it is not a proportional representative, depending upon the necessity a
larger sample could also be drawn.
For example: Selection of a ‘kunabi’ minority population, a large portion

of the population will be required to be studied.
Many sample designs are built by a random selection process. This justifies
the presumption of the sample from the population. Random selection also
helps to guard against sample bias.
10.2 Defining The Population
The first step in a good sample design is to understand the population

under study. It is necessary to ensure the clear specifications and clear
instruction about the population. In addition to this, all the elements of the
population must be represented.
The target population is sampled using the sample frame. The units in the
population can be represented by using the existing information such as:
company list, government registers, payrolls etc. A sampling frame could
also be geographical. One can make use of postal codes for a sample
frame.
266
SAMPLING
10.3 Determination Of The Sample Size
In a Sample design, the sample size is a key factor. One cannot estimate
the exact or precise sample size. Any assumptions about the overall
population based upon the results of a sample will have an attached
margin of error.
The amount of variability in the population (the range of different values or

opinions) will also affect the accuracy and the size of the sample.
Larger is the size of the population, then lower portion of the population is
to be used for representation. In fact, it is only when the sample size is
above 5 % then the formula is required to be applied to calculate the
proper sample size.
How large must be the sample size be is always a difficult question. The
Sample size depends upon various constraints to the projects. We know
that there is a budget for every project and by the thumb rule 50%
amount is spent on data collection and 50% is spent on analysis. This cost
constraint influences the sample size, as well as the overall design and
data collection process.
10.4 Sampling Methods
Factors influencing the sample size:
1. Specific situation in which the sampling is carried out.

2. Expected level of accuracy and precision.
3. Scope and limitation of research.
4. Time utilized for conducting the research.
5. Features of the population
The researcher can arrive at a decision of the correct sample size after
considering the merits and demerits of the population under study.
It is a universal fact that in a single survey it is not possible to cover the

entire population. However, the results from the survey carried out with the
selected sample from the population are useful for drawing conclusions.
267
SAMPLING
Sampling is a very important part of the marketing research process. If a

survey is carried out by using an appropriate sampling technique, then one
can assure the accuracy of the generalization to the population.
Sampling Methods: In most surveys, access to the entire population is

almost impossible; however the results from a survey with a carefully
selected sample will reflect extremely closer than would have been
obtained from the population.
Sampling is therefore a very important part of the marketing research

process. If a survey has been done by using a proper technique, then one
can be sure about the results of the generalization. If there is a bias in the
chance for selection, then definitely the results would lead to inaccuracy.
The different types of popular sampling methods are listed below:
Sampling Method Definition Use Limitation
Cluster sampling Units in the Quick and easy; Expensive method if

population can be does not require clusters are large,
often found in complete population Scope for sampling
certain geographic information; good error
groups. For for open interviews.
example: To identify
the potential
customers in a
company transport,
Staff coming from
various places in a
city are examined
by taking random
sample of clusters is
taken and then all
units within the
clusters were
examined
Convenience It is made for those Large amount of Cannot be
sampling who are willing to information can be extrapolated from
volunteer collected quickly the sample to
conclude about the
population, Chance
of a bias from the
volunteer.
268
SAMPLING
Simple random This ensures that Simple to design For accurate

sampling every member and interpret; It results it needs a
from the can calculate the complete and
population has an estimation of the accurate
equal chance of sample and population listing;
selection. sampling error. however, it may
not be practical.
Systematic After randomly In this it is This method is
sampling selecting starting relatively easier to costly and also
point from the extract the sample time consuming
population, than simple
between 1 and “n”, random sampling;
every nth unit is It ensures that
selected, where n sample is well
is equal to spread across the
population size/ population.
sample size.
Quota sampling To obtain a sample Quick and easy Not random,

that is way of obtaining a hence, still some
‘representative’ of sample risk of bias; need
the overall to understand the
population; the population to be
population is able to identify the
divided (Stratified) basis of
by the most stratification.
important
variables
Judgement A deliberate choice This method is This method is
Sampling of a sample- effective for highly prone to
(Exactly opposite providing bias; samples are
of simple random illustrative often small and
sampling) samples or case cannot be
studies extrapolated
In marketing research, the two essentially most popular methods of
sampling are as below:
1. Probability sampling.
2. Non-probability sampling.
269
SAMPLING
Their features can be compared as given below:
Probability sampling Non-probability sampling
Random sampling Purposive sampling
Systematic sampling Quota sampling

Stratified sampling Simulated sampling
Area sampling Multi-segment sampling
Multistage sampling
10.5 Probability Sampling
Probability Sampling method is also known as Simple Random Sampling

Method. It gives all members of the population an equal chance of being
selected for getting included in the sample, and this does not depend upon
the previous events in the selection process.
The selection of an individual does not affect the chance of anyone else in
the population from being selected.
Different types of Probability Sampling Techniques are as follows:
1. Simple Random Sampling: A simple random sampling sample is

obtained by choosing elementary units in such a way that each unit in
the population has an equal chance of being selected. A simple random
sampling is free from sampling bias. However, using a random table to
choose elementary units is a complex process.
2. Systematic Random Sampling: If the sample is to be collected by a

person who is not trained in that activity, then the instruction may be
misinterpreted or the selection may happen in an improper manner. In
such cases instead of a random selection, the data collection may be
simplified as “selecting a sample every 10th unit or 50th unit or 100th
unit”, after choosing the first unit randomly. Such a procedure is called a
Systematic Random Sampling.
270
SAMPLING
A Systematic Random Sample can be obtained by selecting one unit on a

random basis, and choosing additional elementary units at evenly spaced
intervals until the desired number of units is obtained.
For example, in a class of 100 students you want a sample of 20

students and the names of the students are listed in an alphabetical
order. If we want to use the systematic random sampling method for
choosing then, dividing 100 by 20 we get 5 and randomly selecting any
number between 1 to 5 say student number 4 has been selected, from
there we will select every 5th name until we reach the last name from
the list. In this way, we will obtain the sample of 20 selected numbers of
students.
3. Stratified Sampling: A Stratified Sample is obtained by independently

selecting a separate simple random sample from each population
stratum (section). A population can be divided into different groups,
may be based on their income group or some characteristics, etc. For
example. Undergraduate in a group A, Graduate in group B,
Postgraduate in group C, etc. These specific groups are referred as a
Stratum. One can now randomly select from each stratum a given
number of units based on the proportion. For example, we can select
25% from group A, 10% from group B and 50% from Group C, etc.
Stratification increases the precision without increasing the sample size.
Stratification does not imply any departure from the principal of
randomness. It merely denotes that before any selection takes place,
the population is first divided into strata, and then samples are taken
from each stratum randomly. It will be possible to do this only if the
distribution of the population with respect to a specific factor is known
and also as regards to which stratum each member of the population
belongs. For example, in marketing the characteristics which could be
used to stratify the population include income, age, gender, race, etc.
Stratification occurs only after a selection of the individuals. For example,

one wants to stratify sample of individuals in a town by age then, one
could easily get figures of the age distribution. In case there is no
general list available which has a data of age, then prior stratification
would not be possible. In such cases proportionate data should be used
at the stage of the analysis.
271
SAMPLING
Random Stratified Sampling is a more precise and accurate method

of sampling.
Before stratified sampling designs are to be employed, the below

mentioned key issues must be addressed:
a. What characteristics are to be used to make subdivisions of the data or

population?
b. How many stratas are to be constructed? What is the boundary of each

stratum?
c. How many observations are required to be taken in each stratum?
4. Cluster Sample: A cluster sample is obtained by selecting clusters from

the population on the basis of the simple random sampling. The sample
comprises of census of each random cluster selected. For example: a
cluster may be a state, village or a school. One may decide to select all
elementary schools within the state as a cluster. If you want to choose
20 elementary schools from Maharashtra. You can use simple random
sampling to select a school, and then every elementary school selected
becomes a part of the cluster. One can follow the research programme
then like interviewing the teachers in the cluster, etc.
5. Area Sample: In this particular method, the entire market is divided

into various geographical areas and thereafter a predetermined stratum
is considered for deciding the elements of sampling.
This method is more popular in Industrial marketing research.

Sometimes it is also used in consumer marketing research, where study
for the consumption pattern of a specific product is required to be
undertaken.
For example, in a typical nationwide survey, the area sampling

methodology will divide the nation into metro cities, cities, villages based
on geographical areas. Each of these areas will be further divided into
districts wise stratum.
272
SAMPLING
6. Multistage Sampling: This is carried out in different stages or phases

and the results of each stage are integrated at the end. Whenever the
sampling methodology may consume a lot of time, in such cases, a
multistage sampling is adopted.
For example, if a survey is to be undertaken at a national level, sampling

and surveying can be conducted in various stages in different metro
cities, and at the end of the survey the results of different samplings can
be integrated.
10.6 Non-Probability Sampling
Non-probability Sampling procedures are less popular, as they will contain

sampling biases; however in some circumstances such methods are
unavoidable.
In marketing research, the most frequently opted method for non-

probability sampling is Quota Sampling. This method is somewhat
similar to cluster sampling. In cluster sampling the key subgroups are
defined, the main difference is that, in quotas the subgroups are set
beforehand usually in proportion to match the population distribution.
For example, in age-wise distribution (30% of18-25 years old, 25% of 26

to 38 years old, 20% of 39 to 55 years old), etc., the Interviewers then
select the respondents based on the set criterion. The nature of selection is
such that only about a proportion of the population has a chance of getting
selected in a typical quota sampling method.
The importance of the sampling should not be underestimated, as it helps

to determine to whom the results of your research will be applicable. It is
important to consider an appropriate sampling strategy. Most importantly,
can you adopt simple random sampling? If you have no chance of using
any random sampling method, then should you be using the non-random
sampling method?
The non-probability sampling method is more qualitative as compared to

the probability sampling method.
273
SAMPLING
1. Purposive Sampling: In this method, the sampling elements are

selected on the basis of controllable features that are proportionate to
the total number of cases with which such features appears in the
population.
The Purposive Sampling method is used in both consumer and industrial

research. For example, in a market survey of two-wheelers, spark plug
problems are linked with the TVS brand. If five types of two-wheelers are
identified and a sample size of 100 customers is under consideration, the
percentage of selection of the sample elements should be proportionate
with the spark plug problem. In other words, if one particular type of two
wheeler has a greater occurrence of the problem with its plug as compared
to others, then its sampling element should be considered proportionately
bigger. Therefore if a total of 1000 customers were to be considered, the
sample element of each type should be proportional to the number of
problems occurring in their two-wheelers as given below. This is how
customers with the type of two-wheelers having more severe problems will
receive more weightage proportionately.
(a) TVS – Bike 250

(b) TVS – Vego 350
(c) TVS – Scooty 50
(d) TVS – Champ 150
--------------------------------------
1000
2. Quota Sampling: This is a method of Stratified Sampling in which a

selection within the strata is a non-random selection left at the
discretion of the interviewer. For example, in continuation with the
previous example, we can have two-wheelers that are of five years old
as a quota or the basis for selection of the sample size, then the survey
can be titled as ‘ Market survey’ to identify the two wheeler spark plug
problem for TVS two-wheelers which are five years old.
274
SAMPLING
Limitations of Quota Sampling
1. It is not possible to estimate sampling errors with Quota Sampling

because of the absence of randomness.
2. The interviewer may fail to secure a representative sample of

respondents in a quota sampling. For example, “Those above the age
of 55 are spread over all the age ranges or a cluster around 55 and
56”.
3. Social class controls leave a lot to the interviewer’s judgment.
4. Strict control of the field work is more difficult, i.e., have the
interviewer’s placed the respondents in a group where cases are
needed rather than in those which they belong.
Advantages of Quota Sampling
1. Quota sampling is less costly. A quota interview on an average costs

less than half of the random sampling interview.
2. It is easy to administer. The labor work from random selection can be

avoided, also the problems of call backs and no contact can be
eliminated.
3. The Quota sampling method is relatively quick as compared to

random sampling during the field work. For example, to reduce
memory errors like to obtain the immediate public reaction from any
event, this method is the most suitable method.
4. Quota sampling is independent of the sampling frames existence.
3. Multiphase Sampling: In this method, information is collected from

the original sample and again it is collected from segments of the
original sample. This methodology is very popular in consumer and
industrial marketing research.
275
SAMPLING
For example, in a survey for Gillette after shave lotion, the original
sample shall consider all males of a particular residential locality (called
phase sampling) and the second sample (second phase sampling) shall
consists of identification of the users and non-users of Gillette after
shave.
4. Replicating Sampling: This method is very useful when comparative

abbreviations are to be used from the same population. For example,
two distinct sales territories will be given to two different sales
personnel for testing and comparing of the consumption pattern of Bru
Coffee.
10.7 Sample Size For Calculation
It is a very common question that how many elements should be taken as

a sample? In general, the larger the sample size, the more closely the
sample data will match that from the population. In practice, however, the
researcher needs to work out as to how many responses will give sufficient
precision at an affordable cost.
The calculation of an appropriate sample size depends upon a number of

factors that are unique to each survey and it is up to the researcher to
make the decision regarding these factors.
The three most important factors are:
• What is the budget for the research?

• What is the level of accuracy required?
• How confident is the researcher in the results?
The increase in accuracy and confidence will always need a larger sample
and may overshoot the budget. Therefore, a researcher always needs to
find the balance between the costs, accuracy and the confidence level in
the sample.
276
SAMPLING
There are two types of figures the researcher wishes to estimate in

the marketing research project:
• Mean (mean income, mean height, etc.)
• Proportion (percentage of the people)
There are different sample size calculation formulas for each:
• For a mean calculation formula is:
S = (z/e)2
where,
S = the sample size.
z = a number related to the degree of confidence a researcher wishes to

have in the result. 95% confidence is usually the accepted figure.
e = the error a researcher is prepared to accept, measured as a proportion

of the standard deviation (accuracy).
The values of z would be 3.05 for 90% confidence, 1.96 for 95%
confidences, 2.78 for 90% confidence and 1.85 for 80% confidence.
For example, imagine that we are estimating the mean income, and wish
to know what sample size to aim for in order to achieve 95% confidence
level in the results.
Assuming that we are prepared to accept the 10% error in the population
the standard deviation (previous research has shown that in 8000 the error
of 10% is acceptable), then we would do the following calculations.
s = (1.96/0.1)2
s = 384.15 equivalent to 385
277
SAMPLING
In other words, 385 numbers would be required to be sampled to meet the

criterion.
Since we interviewed the sample which is a part of the population and not
the whole population, we have to be prepared to be less confident than
100% confident. So, as a result, our confidence level is 95% based on the
sample size. There is a chance of 5% of measure outside the limit.
For a Proportion:
The formula for a proportion is different although we are doing the same
thing here.
s= z2 (p(1 – p)) / e2
where,
s = sample size
z = the number relating to degree of confidence,
p = an estimate of the proportion of people into the group of interested

population
e = The proportion of the error acceptable to the researcher.
In an example, we are attempting to assess the percentage of voters who

will vote for the candidate ‘X’. We assume that we wish to be 99%
confident of the result, for that we assume z = 2.85 and that we will allow
for errors in the region of +/- 3% (0.03 = e). However, in terms of an
estimate of the proportion of the population who would vote for candidate
‘p’, if a previous survey had been carried out, then we would use the
percentage from that survey as an estimate. However, this was the first
survey then we would assume that (p = 0.05) 50% of the people would
vote for candidate ’X’ and 50% would not vote for him. By choosing 50%
as a sample size, we would have a conservative estimate.
In the above example:
S = 2.852 (0.5 × 0.5) / (0.03)2 = 1,849
278
SAMPLING
This large sample was necessary because we wanted to be 995 sure of the
desired results at (+/–3% error). It shows that we need to interview
between 1800 to 2000 people.
10.8 Sampling Errors
A Sampling error comprises of the difference between the sample and the
population. In particular it happens due to solely some units getting
selected.
A Sampling error makes the sample unrepresentative of its population.
A sampling error is the error caused by observing a sample instead of the

whole population. An estimate of a quantity of interest, such as an average
or percentage will generally be subjected to the sampling error, this
happens due to a variation from sample to sample. These variations in the
statistical values can theoretically be represented by sampling errors.
Sampling errors also refers to the random sampling variations.
The likely size of the sampling error can be controlled by taking a

sufficiently large sample from the population. If the observations are
collected from the random sampling, then the statistical theory provides
probabilistic estimates of the likely size of the sampling error for a
particular estimator. These errors are often expressed as Standard Errors.
To reduce the sampling error often requires the increased expenditure of
resources, and also the reliability factor is required to be monitored. Of the
types of two statistical errors, only sampling errors can be controlled by
exercising care in determining the method of choosing the sample. The
sampling error can be caused by a bias, or by a chance. The chance
component (random error) exists no matter how carefully the selection
procedures are implemented.
There are two kinds of errors:
1. Sampling error
2. Non-sampling error
There is no research without an error. Errors are never committed

deliberately, but they result in spite of many efforts undertaken to
eliminate them.
279
SAMPLING
Sampling errors occur because of:
a. selection of some units and non-selection of some units from the

population.
b. due to an error of bias or improper size of sample from the population.
Sampling errors can definitely be controlled by unbiased and random

selection approach.
If the probability sampling is used then, it may not be completely possible

to eliminate the error but errors can be controlled to a great extent.
An adequately large sample size also reduces sampling errors considerably.

For example, if the sample of 100 American men are measured and it is
found that all of them are above six feet. It is clear without statistical proof
that this would be a highly unrepresentative sample leading to invalid
conclusions. It is obvious because the average American male height is 6
feet. So this becomes an obvious error, however it can be corrected.
Let us consider wherein an average height is overstated by an inch or two,

then it becomes an unobvious error. This becomes a matter of concern
from a research perspective.
10.9 Types of Non-Sampling Errors
The other main cause of unrepresentative samples is the non-sampling

error. This type of error can occur where a sample is being used.
A non-sampling error is an error that results from the manner in which the
observations are made.
The simplest example of a non-sampling error is in the accurate

measurements caused due to malfunctioning of the instruments or poor
methods. For example, if individual human weights are required to be
measured then replies from the individuals and those actually measured on
the scale would be different. This will result because people would have
weighed themselves may be on some other scale and it may not have been
calibrated. Responses will not be comparable unless the persons are
weighed physically on a common scale and under the same circumstances.
280
SAMPLING
• A statistical error caused by human error to which a specific statistical

analysis is exposed. These errors can include errors such as data entry
errors, biased questions from questionnaires, biased processing, biased
decision making, in appropriate analysis, false information provided by
the respondents, etc.
• Non-sampling errors are a part of the total error which can arise during
statistical analysis. The remainder of the total error arises from the
sampling error. Unlike the sampling error, an increase in the size of the
sample from the population does not have effect on reducing the error. It
is virtually impossible to eliminate the non-sampling error completely.
Non-sampling errors are caused by:
(a) The researcher himself

(b) Data entry operator
(c) Analyst (while analyzing the data)
Total error
Total error = Sampling error + Non-sampling error
TE = SE + NSE
Sampling error can be certainly estimated, in respect of probability

samples, but not in respect of non-probability samples.
Non-probability sampling errors can be controlled by adopting the

following measures:
a. Appointment of competent and efficient interviewers and data entry

operators.
b. Designing a good and sturdy control systems during the research

project.
The estimation of the total error in the research project is very difficult.
However, the proportionate and percentage of a sampling error can be
obtained. A sampling error can be reduced by increasing the sample size. A
bigger size of the sample also increases the cost of the project. It is always
281
SAMPLING
advisable to optimize the total error by optimizing the sample size and not
by increasing the sample size.
Types of Non-sampling Errors
1. Incorrect definition of the research problem: If the research

problem itself is not defined properly, then it will lead to a non-sampling
error.
For example, if a research study is pertaining to “small-scale industries”,

in such a case, the concepts associated to the research must be made
very clear:
a. What are the criteria for deciding a small-scale industry?

b. What is the reference period?
c. Which geographical areas are to be covered for the research study?
In case, there is no clarity about the questions mentioned above, then it

may lead to non-sampling errors.
2. Incorrect population: (a) If the population is not defined properly. (b)

If the population does not suit the objective of the research study.
For example, in a research study pertaining to welfare of teachers in an

institution, if the research study only considers the senior or junior
faculty then consideration of the population for the sample would go
wrong resulting into a non-sampling error.
3. Defective sampling frame: The sampling frame means the list of all
units comprising the population from which a sample is to be drawn. If a
sampling frame itself is inaccurate or incomplete, a non-sampling error
is bound to occur.
For example, nowadays, many surveys are conducted over the telephone
(telecalling). In such surveys, the respondents with telephone facility
only can be contacted. Several people have disconnected their landlines
due to efficient mobile services. Thus, non-inclusion of the respondents
without a telephone line would make the sampling frame defective.
282
SAMPLING
4. Collection of surrogated information: When the information

received by the researcher is different than the information required
then it is called Surrogated Information. Such information is defective
information and it does not help to resolve the research problem.
For example, many a times, it is assumed that higher the price paid will
obtain a better quality of service,. In such cases, the price taken
represents the quality. However, in reality, a higher price may not
correspond to better quality.
5. No response error: Practically, it may not be possible to collect the

data from each and every respondent included in the sample. In such
cases, a no response error occurs. For example, in the field survey
conducted to obtain the consumption patterns of the respondents, the
no response error may occur as there will be a substantial difference
between the consumption patterns of the respondents and non-
respondents.
6. Incorrect response error: If the information collected by the

researcher is incorrect, then such an error occurs. The researcher
proceeds with the assumption that the respondents would furnish true
and fair information to the best of their knowledge and belief, However,
this assumption may not necessarily hold good in case of some
respondents.
For example, some respondents may not give true information about
their income, social status or martial status. Even for a researcher to go
to the appropriate source for obtaining correct information becomes
virtually impossible.
7. Experimental error: In a research, several times, many experiments

are conducted by the researcher. The basic objective of an experiment
could be measurement of the impact of one or more independent
variables and a dependent variable. Here, the researcher assumes all
other conditions to the experiments remains constant.
For example, the researcher intends to test the impact of a training

programme on sales executives. During training, all the sales executives
are given the same lecture, same training materials and literatures, still the
output from one sale executive will vary from another sales executive. This
283
SAMPLING
may not be only the result of grasping or reproducing the skills learnt
during the programme, but also due to prevailing conditions of the market
from each business territory of a sales executive may vary.
Experimental errors occur from several sources like history, pre-

measurement effects, interactive effect, selection bias, statistical
regressions, etc.
8. Defective design of a questionnaire error: If the design of a

questionnaire itself is defective, then as a consequence the data
collected would be misleading.
For example, if the question from the questionnaire is designed

defectively then the respondent would convey a different data and would
ultimately generate a misleading data.
9. Interviewer errors: These errors occur because of the interviewer’s

influence on the respondent while conducting the interview and also
recording the response incorrectly.
Some interviewers dominate the respondents to respond in a typical

manner. As a result, a true assessment of the question is not achieved and
the purpose of the research is defeated.
An interviewer is expected to obtain the information in a most transparent

manner and recording of the information must be done accurately.
10.Data processing errors: After collecting the data, it needs to be

properly analyzed and interpreted for arriving at conclusions. These
stages are proceeded by a data-coding, data tabulation, data entry, etc.
At this stage, an error may occur. Such errors are referred as Data
Processing Errors.
11.Data analysis errors: Sometimes, while analyzing the data, there may
be a mathematical error like summation or multiplication or division,
etc. Sometimes, it may be possible that an analyst may be applying a
wrong statistical for the data analysis. Such errors are known as Data
Analysis Errors.
284
SAMPLING
12.Data interpretation errors: The researcher at times in order to

support a specific course of action may purposefully misinterpret the
data. At other times, such misinterpretation of the data may be
unknowingly or unintentionally also. These errors are known as Data
Interpretation Errors.
10.10 Advantages Of Sampling
1. Economy in operations: Sampling is economical because of its nature

by itself as compared to the census survey.
2. Speed in operations: As the total quantum of operations involved in

sampling is less, the results are arrived at a speed. For example,
operations like implementation of field work, data analysis, data
interpretation, etc.
3. Economy in efforts: The efforts could be distributed in sampling region

wise and then reconciled for the results, and even at times the
simultaneous activities are carried out. The economy can be achieved on
the whole efforts.
4. Collection of special information: The researcher collects the

information in detail and in-depth. Many times, the acquired information
is proven to be valuable for other projects also.
5. Quality in operations: These sampling surveys are not like census

surveys which are a long and complicated effort. They being fast track
and relatively small, so can be focused well and can draw a qualitative
outcome.
285
SAMPLING
10.11 Disadvantages Of Sampling
1. Non-individualistic approach: When the information is required from

each unit of the population such as business establishment information,
then the sample survey cannot be used as a tool to obtain such
information, such information cannot be generalized and also cannot be
applied to other samples. In some opinion surveys, each individual may
have different opinions. So, the sample cannot be generalized. Here
every opinion is important for consideration.
For example, opinions from the legal authorities about the new legal
framework, opinions from businessmen of different industries for new
government policies or rules, etc.
2. Occurrence of sampling and non-sampling errors: Sampling and

non-sampling errors cannot be completely avoided in a research.
However, the researcher takes efforts of minimizing those in the
research.
3. Impossibility of checking the omissions: Omissions of certain units

can be checked in census surveys. However, such omissions cannot be
checked in a sample survey.
286
SAMPLING
10.12 Characteristics Of A Good Sample Design
Prof. Kish has mentioned a good sample design requires the judicious
balancing of four broad criteria:
(a) Goal orientation
(b) Measurability
(c) Practicality
(d) Economy
(a) Goal orientation:
A sample design should be:

1. Oriented to the research objectives.
2. Tailored to the survey design
3. Fitted to the survey conditions
4. The choice of population
5. The measurement
6. The procedure of choosing a sample.
(b) Measurability:
A sample design should enable the computation of valid estimates of its

sampling variability. Generally, such variability is expressed in the form of
standard errors. But unlike non-probability samples, this is possible only in
respect of probability.
(c) Practicality:
(i) Simplicity of design

(ii) Follow-ups in actual operations of the field work.
It is essential to have complete, correct, practical and clear instructions to

be given to the interviewers, which eventually leads to:
(i) Avoiding the mistakes in selection of the sample units.

(ii) Uniformity in the final selection of the sample units on the field
as per the original sample design.
287
SAMPLING
(d) Economy:
It means that the objective of the survey should be achieved with less
effort and less cost. In other words, for a given per unit cost, the sample
design should achieve maximum precision.
10.13 Summary
Definition of Sampling: Sampling is the act, process or technique of

selecting a suitable sample or a representative part of a population for the
purpose of determining parameters of the whole population.
Sampling helps to determine the corresponding value of the population and

plays vital role in marketing research. Sampling offers many benefits It
saves cost and time since it is less expensive and less time consuming for
study than the entire population study. A population is a group of
individuals, persons, objects or items from which samples are taken for
measurement.
Practical consideration in a sample size: There are some practical

considerations that must be kept in mind while determining the sample size
a. Sample accuracy: It refers to how close a random samples statistics to

a true population’s value it represents. It must be understood that a
sample size is not related to representativeness. It is related to
accuracy. The larger a probability sample is more accurate it is( Because
of less sampling error)
b. Variable in population: While collecting the sample the issue how to

represent variability in the population would be a major task. It can be
assumed that there is a 50% probability of the sample in one bracket or
the other.
c. Arriving at a amount of sampling error: This should be decided by

the researcher. Normally a 5% variation is acceptable. However, it is
always related to the level of precision required in decision.
Confidence level required: Normally the research project is expected to

be delivered at 95% confidence.
288
SAMPLING
These are the different criteria; however researcher has to achieve a

balance between all the variables depending upon the requirements. The
fundamental objective of applying different criteria’s is to achieve a good
quality sample design. A researcher has to develop 2 to 3 different sample
designs to start with and pick the appropriate one on the basis of merits
and demerits of each.
1. Sampling helps in determining the _____________ value of the

population.
(a) Precise value
(b) Corresponding value
(c) Complete value
2. The target population is sampled using a _____________.

(a) Approximation
(b) Discrete method
(c) Sampling frame
3. Units in the population can be found in certain geographic areas is called

as _____________.
(a) Convenience sampling
(b) Quota sampling
(c) Judgment sampling
4. A random sampling which gives all members an equal chance of getting

selected is _____________.
(a) Purposive sampling
(b) Replicated sampling
(c) Probability sampling
5. A procedure in which a sample is obtained by independently selecting a

separate simple random sample from each population stratum is
_____________.
(a) Stratified sampling
(b) Systematic sampling
(c) Quota sampling
289
SAMPLING
6. Which of the following procedure is a non-sampling procedure?

(a) Area sampling
(b) Multistage sampling
(c) Purposive sampling
7. The difference between the sample and population during a selection

process is known as _____________.
(a) Population error
(b) Sampling error
(c) Non-sampling error
(a) Discuss in details sampling errors and non-sampling errors.
(b) Write short notes on:
(i) Probability sampling
(ii) Non-probability sampling
(iii) Quota sampling
290
SAMPLING
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
291
DATA ANALYSIS
Chapter 11
Data Analysis
Objectives
Data analysis is a process of gathering, modeling and transforming the raw

data into useful information.
• Steps in data analysis
• Multiple facets of data analysis
• Encompassing diverse techniques of data analysis
• How to convert raw data into useful information for decision making
Structure:
11.1 Introduction
11.2 Univariate Analysis
11.3 Bivariate Analysis
11.4 Multivariate Analysis
11.5 Simple and Cross Tabulation
11.6 Factor Analysis
11.7 The Analysis of Variance (ANOVA)
11.8 Summary
292
DATA ANALYSIS
11.1 Introduction
Data analysis is a process of gathering, modeling and transforming data

with the goal of highlighting the useful information, suggesting conclusions,
and supporting the decision making. Data analysis has multiple
approaches, encompassing diverse techniques in different businesses,
science and social science domains.
Data analysis is a critical exercise in analyzing the market. This step

involves a statistical processing after the first step of data collection is over.
Today, analysis is carried out by using many advanced softwares for
processing.
However, one must also know that questionnaire design and data analysis
approach needs to sync well. In simple terms, question is asked to get a
specific conclusive information. Information is the result of how answer is
collated and analyzed to get specific outcome. For example, instead of
simple average calculation, only weighted average calculation can give you
correct inference, then your question must have importance ranking or
weights customer assigns to specific choices made. During the sampling
testing also, planned analysis technique is used to assure that desired
inference can be derived.
Initial Data Analysis:
The initial data analysis uses description of the data to answer

following questions:
1. What is the quality of the data?

2. What is the quality of the measurements?
3. Is the implementation programme in line with the research design?
4. What are the characteristics of the data sample?
1. The quality of the data: The quality of the data can be assessed in
many ways. The distribution of the variables before data cleaning is
compared with the distribution of variables after data cleaning, to check
the unwanted effects on the data. Secondly, the data is checked for
missing observations. Thirdly, extreme observations in the data are
analyzed to check whether they disturb the distribution, i.e., deviation
from the normal.
293
DATA ANALYSIS
2. The quality of the measurements: The quality of the measurement is

checked during the initial data analysis, basically to check if the
measuring tools are giving the right kind of performance.
3. The implementation of the design: In many cases, a check is

required to see whether the randomization procedure has worked. This
can be done by checking whether the variables are equally distributed
across the groups. Other ways of checking the implementations of the
design are manipulation checking and the analysis of no response and
dropout.
4. Characteristics of the data sample: In this step, the findings of the

initial data analysis are documented and the possible corrective actions
are taken. For instance, when the distribution of a variable is not
normal, then more data may be needed to be transformed.
Furthermore, the decision has to be made in handling the missing data.
Data Acquisition
Data Acquisition is the sampling of the real world to generate data that can
be manipulated by a computer. Data acquisition begins with the physical
property of the object under investigation to be measured. An effective
data acquisition system can measure different properties.
For example, the following data analysis situations can be visualized

depending upon the data.
Measurement Level Statistical Technique Format
Nominal Frequencies, Proportions Tables
Ordinal Median, Mode, Range Tables
Preferences Ranking Rank
Interval-scale Mean, Standard deviation Tables
294
DATA ANALYSIS
Three Important Steps in Data Analysis
A. Univariate Analysis: This is the first step in data analysis to examine

the distribution of each individual variable, e.g., analyzing only income
level of respondents.
B. Bivariate Analysis: The second step in data analysis is to describe the

association between pairs of variables, e.g., now analyzing income along
with say purchase frequency.
C. Multivariate Variables: This is the third step in data analysis to make

use of a statistical model called Linear Regression, to examine the
relationship between the multiple independent variables and dependent
variables. This is to gain insight into the causal relationship, e.g.,
income, frequency of purchase, age and usage (single user or multiple
users).
11.2 Univariate Analysis
The purpose of the Univariate Analysis is concerned with the description of

the sample of respondents by providing information about their answers on
each variable. It can be conducted for all variables.
Univariate analysis is concerned with the summarization of individual

variables in a given data set. Univariate analysis deals with one variable at
a time as compared to Multivariate analysis which deals with more than
one variable at a time.
Univariate analysis explores each variable in a data set, separately. It looks

at the range values, as well as the central tendency of the values. It
describes the patterns of responses to the variable. It describes each
variable independently.
The Important tools found in a Univariate analysis such as frequency

distribution, measures of central tendency, histogram, grouping, etc.
295
DATA ANALYSIS
i. Frequency distribution: This tool relates to the measuring of

frequency of occurrence of a particular response category. For example:
A survey having a sample of 500; will have 250 males and 250 females,
Thus the table showing 3 columns – gender/frequency (25% each)/
percentage (50% each) is a typical case of Univariate analysis. Such an
analysis helps the researcher to find the differences between responses
from the respondents.
ii. Measures of central tendency: This involves three different tools

such as mean, mode, median. All the three are average measures.
Mean: Mean is the arithmetic average of the values received from the
respondents. For example, in a survey of 100 sample students, the mean
value of the amount of time spent in the library is 2 hours. To compute
parameters such as average miles per kilometers of a car, mean should be
used.
For example, if you are a group of 10 people, and the sum of the ages of
all attendees is 420, then the mean age of the attendees is 420 divided by
10, equal to 42. The mean is used mostly as a general indicator for data,
and works best when there are not a lot of outliers. For example, there is
no way of knowing in this example whether some of the members are 90
and some are 5, or if all members are in their 40s.
Mode: Mode is the value occurring most of the time collected from the
data. This value may have been recorded from 30% of the total sample
size. For example, how much time do you spend in a garage when your car
is under repair. In such open-ended questions, one should use mode than
using mean.
Median: Median is used when one deals with a variable having continual
properties. For example, when we are dealing with average age of the
sample, then median is always used instead of mean or mode.
The median is the value that is the mid-point of a group of values, having
an equal number of items in the group above and below it. For instance, in
a room with five people aged 24, 25, 34, 37, 44, 49 and 87, the median
age is 37, as there are an equal number of persons older and younger than
37. The median is used where strong outliers may skew the representation
of the group, such as with incomes.
296
DATA ANALYSIS
Grouping technique: This technique is used when the collected values

are too scattered.
For example, if one needs to draw conclusions on exercising habits of

individuals between age group 20-40, then it will be a rather good idea to
make small groups like 21-25, 26-30, 31-35 and more than 35 years.
Histograms: Histograms are the visual aids used to represent frequency

distribution. Histogram is a group of vertical bars with each representing a
value. In the above-mentioned example ,4 brackets will represent 1 bar. A
Histogram is very user-friendly and can be understood quickly. Histograms
are used for interval scales, while bar charts represent continuous
variables.
Elements of the Univariate analysis: There are two major elements of

the Univariate analysis:
(i) Point estimation

(ii) Interval estimation
i. Point Estimation: The estimate of a population provided by a single

number is known as Point Estimation. In point estimation, a single
statistic is used to provide an estimate of the population parameter. In a
point estimation, we find a statistic which may be used or replaces an
unknown parameter of the population for all practical purposes.
ii. Interval Estimation: There are situations where the point estimation is
not desirable and we are interested in finding such limits which is a
known probability or to a known degree of reliance, the value of the
proportion parameter is expected to lie. Such a process of estimation is
called the Interval Estimation.
An interval is a range of values for a statistic. For example, you might think
that the mean of a data set falls somewhere between 10 and 100 (10 < µ
< 100). A related term is a point estimate, which is an exact value, like µ
= 55.
As an example, let’s say you wanted to find out the average cigarette use
of senior citizens. You cannot survey every senior citizen on the planet (due
to time constraints and finances). So, you take a sample of 1000 senior
297
DATA ANALYSIS
citizens and find that 10% of them smoke cigarettes. Although you have
only taken a sample, you can use that figure to estimate that “about” 10%
of the whole population smoke cigarettes. In reality, it is unlikely to be
exactly 10% (as you only sampled a small percentage of people), but it is
probably somewhere around there, perhaps between 8% and 12%. That is
“somewhere between 8 and 12%” is an interval estimate.
How to Analyze One Single Variable?
1. Raw data: Raw data is a matrix with the variable names heading the
columns and information for each record displayed across rows.
For example, raw data for a study of diabetes among the city from the
Tarachand Diabetes Clinic.
Selection: (First 10 members)
Report Area Name Type of Diabetes Severity

No. Level
1 Deccan gymkhana Type A 3
2 Koregaon park Type C 4
3 Kondhwa Type B 1
4 Kondhwa Type A 2
5 Koregaon park Type A 4

6 Deccan gymkhana Type C 3
7 Koregaon park Type B 2
8 Deccan gymkhana Type B 4

9 Kondhwa Type C 3
10 Koregaon park Type A 2
*The Diabetes as one variable is tested against its types and severity in
various areas.
298
DATA ANALYSIS
Frequency Distribution: Obtaining the frequency distribution of the data

for the variable is done by identifying the lowest and highest values of the
variables, and then putting all the values of the variables in order from the
lowest to the highest. The next step is to count the number of each value
of the variable. This is the count of frequency with which each value occurs
in the data set. For example, the variable “Severity” and its corresponding
values
Severity Level Number of Cases with This Severity
1 1
2 3
3 3
4 3
Total 10
Grouped Data: It decides on whether the data should be converted into

different classes. Various classes can be created by making a group based
on severity.
Mild Between (1-2)
Moderate (3)
Critical (4)
Severity No. of Cases
Mild 4
Moderate 3
Critical 3
Total 10
Percentage Distribution: Frequencies can also be presented in the form

of a percentage distribution.
299
DATA ANALYSIS
Severity Percentage of Severity

(%)
1 10
2 30
3 30
4 30
11.3 Bivariate Analysis
Bivariate analysis is the simultaneous analysis of two variables.
It is usually undertaken to see if one variable is related to another. For

example, study of a variable gender and its attitude towards male/female
equality.
Bivariate analysis is concerned with the relationship between pairs of

variables (X,Y) in a data set. The following data analysis situations can be
visualized depending upon the measurement levels and whether there is
any distinction between the dependent and independent variables.
Suppose a researcher wanted to find out if a gender was related to

attitudes towards equality between men and women and measured each
variable at a nominal level.
Then the variables are:
Gender: Measured as a male or female.
Attitude: Measured as “in favour of” and “not in favour of”.
To test the relationship between the gender and attitude, a hypothesis can
be developed based on certain theories.
The formation of attitude is a process based on socialization which starts at

an early age and is developed over the years.
In most of the societies, men and women are socialized according to

different norms.
300
DATA ANALYSIS
The female subculture generally favors positive attitude towards gender

equality. However, the male subculture stresses on maintaining male
superiority.
The theory of self-interest suggests that females are socialized in ways to

acquire more favorable views towards gender equality. Therefore, we
designate gender as the independent variable and attitude towards gender
equality as the dependent variable for the analysis. On this basis, the
following hypothesis can be established:
“Mature females have more favorable views towards gender equality than
mature males.”
Now, this hypothesis will be tested by construction of a two-way bivariate

frequency distribution.
Obtaining the two-way frequencies:
For this research, imagine that 200 adult men and 200 adult women were
asked whether they were in favor of or they were not in favour for having
the same rights as men. After obtaining the primary data for all, we carry
the Univariate Analysis based on the frequency distribution for each
variable. Then, we would be ready to proceed for testing the relationship
between the two variables by looking at their joint frequency distribution.
In the beginning, we need the following frequencies:
Females in favor of gender equality.
Females not in favor of gender equality.
Males in favor of gender equality.
Males not in favur of gender equality.
To find each of these frequencies, we would separate the respondents by

gender, by segregating all questionnaires for females/males. Next step is
we would further divide them into response wise data, on the basis of/in
favor of gender equality/not in favor of gender equality. Now, with these
301
DATA ANALYSIS
frequencies, we can find the percentages of females and males who gave
favorable and unfavorable responses.
The percentage of females who gave favorable responses is 130/200 =

65%
The percentage of females who gave unfavorable responses is 70/200 =

35%
The percentage of males who gave favorable responses is 84/200 = 42%
The percentage of males who gave unfavorable responses is 116/200

=58%
All percentage tables, including bivariate ones, are based on the reading or
comparing the differences among the percentages. In reading a table, the
percentages for each combination of the independent and dependent
variables are compared. When differences among the combination are
about 15% to 20% or larger, then there are reasons to conclude that the
independent variables are associated with the dependent variables. In
short, we conclude that there is a relationship between the two variables.
Use of Bivariate Analysis
Bivariate analysis is used to test the hypothesis of “association” and

causality is carried out. Association simply refers to the extent to which it
becomes easier to predict a value for the dependent variable if a case‘s
value on the independent variable is known.
Measures of association and statistical significance that are used vary by

the level of measurement of the variables analyzed.
302
DATA ANALYSIS
Techniques of Bivariate Analysis
(a) Chi-square Test
The application of the Chi-square test is to test the statistical significance

of the observed relationship with respect to the expected relationship. The
Chi-square statistic is used by the researcher for determining whether or
not a relationship exists.
The Chi-square Test, written as, χ2 test is a useful measure of comparing

experimentally obtained results with those expected theoretically and
based on hypothesis. It is used as a test static in testing a hypothesis that
provides a set of theoretical frequencies with which observed frequencies
are compared.
In the Chi-square test, the null hypothesis is assumed as there not being
an association between the two variables that are observed in the study,
e.g., Gender and Choice of holiday destination. If Gender (Man or Woman)
does affect preferred holiday destination, we say they are dependent. The
Chi-square test is calculated by evaluating the cell frequencies that involve
the frequency of answer linking these two variables. Null hypothesis
usually assumes that there is no relationship between the two variables.
The comparison between the expected type of frequency and the actual
observed frequency is then made in this test. The computation of the
expected frequency square test is calculated as the product of the total
number of observations in the row and the column, which is divided by the
total size of the sample.
The Chi-square test was first used by Karl’s Pearson. It is defined as below:
The value of the test-statistic is:
where, χ2 = Pearson’s cumulative test statistic which asymptotically

approaches a χ2 distribution, O2 = an observed frequency and E2 = an
expected (theoretical) frequency, asserted by the null hypothesis and
equals to the number of cells in the table (taken from Wikipedia).
303
DATA ANALYSIS
The measure of the Chi-square enables us to find out the degree of

discrepancy between the observed frequencies and theoretical frequencies.
It helps to determine whether the discrepancy is occurred due to the error
of sampling or the error of chance.
The finding of above equation is matched with the dependency log table.
Generally, value < 0.05, then both variables are considered as dependent.
If value is greater than 0.05, then it is independent variable.
(b) Correlation
Correlation may be defined as the tendency of two groups or a series of

items to vary together directly or inversely. When two phenomenons are
varying simultaneously in the same direction with the opposite directions,
and the variation in one is caused by due to variation in another, then the
two phenomenons are said to be correlated. if demand for product rises
due to reduction in the price, then they are correlated. Whenever there is a
definite connection between the two or more groups, then there is said to
be a correlation. If the two groups move in the same direction, correlation
is said to be direct. If the two groups move in the opposite directions, then
they are said to be inversely correlated.
(c) Rank Correlation
This method of calculating the coefficient of correlation is

developed by Spearman.
The calculations in this method are based on the order or the rank of the
items rather than on their actual values, as in the Pearson’s method.
Hence, the advantage of this method is that, it can be used when actual
values are not known.
For example, if we need to find the correlation between the honesty and
wisdom of persons, here Pearson’s formula is not suitable but we can give
ranks to the person’s honesty and wisdom and then use Spearman’s
correlation coefficient formula.
Spearman’s Rank Correlation Coefficient is denoted by R and is

given by the following formula:
304
DATA ANALYSIS
where,
D = Difference between the rank of each items
N = The number of pairs of observations
Here, –1 ≤ R ≤ 1
R = 1 : There is a perfect positive correlation.
R = –1 : There is a perfect negative correlation.
R = 0 : There is no correlation.
Merits of Rank Correlation
a. Spearman’s coefficient is easy to understand and easy to calculate as

compared to Pearson’s coefficient.
b. This method can be applied even when the data is qualitative.
c. This is the only method which can be used when only the order of
items is known and the actual values are not known.
Demerits of Rank Correlation
a. This method is less accurate than the Pearson’s method, as there is a

loss of information.
b. This method cannot be used when the data are grouped together.
c. The calculation using this method is complex, when the number of

items is large. Thus, the method is not convenient for a large number
of items.
305
DATA ANALYSIS
(d) Regression
Regression Analysis is a method that gives a relation by which the value of

a dependent variable can be predicted or estimated.
When the two variables are known to be related, the relation between the
two variables can be established. One of the two variables is a dependent
variable and the other one is an independent variable. If there is an
association between amount you spend on advertising and volume of
share, then based on past data, you can find a regression equation. With
this, you can find, how much you need to spend, to get the desired sales
volume.
In this method, one can also study the relation between a dependent
variable and a set of independent variables. Regression analysis is a
mathematical measure of the average relationship between two or more
variables. When only two variables are studied at a time, an independent
variable as a predictor and a dependent variable as a regressed variable.
When the relationship between the variables is established and it is
plotted: it is a curve. When the curve is a straight line, then it is a Linear
Regression. When the curve is not a straight line, then the regression is
non-linear.
Line of Regression: If the variables which are highly correlated as plotted

on a graph, then the points lie in a narrow strip. If the strip is nearly
straight, we can draw a straight line, such that the points are close to it
from both the sides. Such a line is called as a Line of Variation. It is also
called as a line of best fit.
Line of Regression of Y on X:
If we minimize the deviations of the points from the line measured along
the Y-axis, we get a line which is called the line of regression of Y on X. Its
equation is of the type:
Y = a + bX
From this equation, we can get the value of Y, if value of X is known.
306
DATA ANALYSIS
Line of Regression of X on Y:
If we minimize the deviations of the points from the line measured along
the X-axis, we get a line which is called the line of regression of X on Y. Its
equation is of the type:
X = a + bY
From this equation, we can get the value of X on Y is known.
Through an example, let us understand how to interpret the results of our

analysis.
Problem Statement
Five randomly selected employees took a performance aptitude test before

they began their probation with the company. The HR department has
three questions:
1. What linear regression equation best predicts their performance, based

on performance aptitude scores?
2. If an employee made an 80 on the performance aptitude test, what

grade would we expect him to make in real world?
3. How well does the regression equation fit the data?
How to Find the Regression Equation?
In the table below, the xi column shows scores on the performance

aptitude test. Similarly, the yi column shows performance grades. The last
two columns show deviations scores – the difference between the
employee score and the average score on each test. The last two rows
show sums and mean scores that we will use to conduct the regression
analysis.
307
DATA ANALYSIS
Employee xi yi (xi – x) (yi – y)
1 95 85 17 8
2 85 95 7 18
3 80 70 2 –7
4 70 65 –8 –12
5 60 70 –18 –7
Sum 390 385

Mean 78 77
And for each employees, we also need to compute the squares of the
deviation scores (the last two columns in the table below).
Employee xi yi (xi – x)2 (yi – y)2
1 95 85 289 64
2 85 95 49 324
3 80 70 4 49
4 70 65 64 144
5 60 70 324 49
Sum 390 385 730 630
Mean 78 77
And finally, for each employees, we need to compute the product of the
deviation scores.
Employee xi yi (xi – x)(yi – y)
1 95 85 136
2 85 95 126
3 80 70 –14
4 70 65 96
5 60 70 126
308
DATA ANALYSIS
Sum 390 385 470
Mean 78 77
The regression equation is a linear equation of the form: ŷ = b0 + b1x. To

conduct a regression analysis, we need to solve for b0 and b1.
Computations are shown below. Notice that all of our inputs for the
regression analysis come from the above three tables.
First, we solve for the regression coefficient (b1):
b1 = Σ [(xi – x)(yi – y)] / Σ [(xi – x)2]
b1 = 470/730; b1 = 0.644
Once we know the value of the regression coefficient (b1), we can solve for
the regression slope (b0):
b0 = y – b1 * x
b0 = 77 – (0.644)(78); b0 = 26.768
Therefore, the regression equation is: ŷ = 26.768 + 0.644x.
How to Use the Regression Equation?
Once you have the regression equation, using it is a snap. Choose a value
for the independent variable (x), perform the computation, and you have
an estimated value (ŷ) for the dependent variable.
In our example, the independent variable is the employee’s score on the

performance aptitude test. The dependent variable is the employee’s
grade. If a student made an 80 on the performance aptitude test, the
estimated performance grade (ŷ) would be:
ŷ = b0 + b1x
ŷ = 26.768 + 0.644x = 26.768 + 0.644 * 80
ŷ = 26.768 + 51.52 = 78.288
309
DATA ANALYSIS
Real-life Examples
Evaluating trends and sales estimates
You can also use linear-regression analysis to try to predict a salesperson’s

total yearly sales (the dependent variable) from independent variables such
as age, education and years of experience.
Analyze pricing elasticity

Changes in pricing often impact consumer behavior — and linear regression
can help you analyze how. For instance, if the price of a particular product
keeps changing, you can use regression analysis to see whether
consumption drops as the price increases. What if consumption does not
drop significantly as the price increases? At what price point do buyers stop
purchasing the product? This information would be very helpful for leaders
in a retail business.
Sports analysis
Linear regression is not always about business. It is also important in
sports. For instance, you might wonder if the number of games won by a
basketball team in a season is related to the average number of points the
team scores per game. A scatterplot indicates that these variables are
linearly related. The number of games won and the average number of
points scored by the opponent are also linearly related. These variables
have a negative relationship. As the number of games won increases, the
average number of points scored by the opponent decreases. With linear
regression, you can model the relationship of these variables. A good
model can be used to predict how many games teams will win.
310
DATA ANALYSIS
11.4 Multivariate Analysis
Multivariate Analysis is the analysis of the simultaneous relationships

amongst more than three variables. In a multivariate analysis, the focus
shifts from paired relationships to the simultaneous relationships.
Multivariant analysis was developed considering the advancement in the
computational capabilities of modern computers. However, these
techniques are not always unified in their presentations and selecting the
proper technique for the given problem is a complex decision.
MVA is based on the statistical principal, which involves observation and

analysis of more than one statistical variable at a time. In design and
analysis, the technique is used to perform trade studies across multiple
dimensions while taking into account the effects of all variables on the
interest of the responses.
Multivariate Analysis can be used for the following purposes:
• Capability-based design.
• Inverse design, in which any variable can be treated as an independent

variable.
• Analysis of alternative, the selection of concepts to fulfill a customer

need.
• Analysis of concepts with changing scenarios.
• Identification of the critical design and correlation across hierarchical

levels.
Multivariate analysis is a complex process, if the researcher’s desires to

include analysis for calculating the effects of variables of a hierarchical
system. These concerns are often simplified through the use of surrogate
models. Since a surrogate model takes the form of an equation, they can
be evaluated quickly. As a result, it enables the researcher to perform a
large-scale MVA studies.
311
DATA ANALYSIS
Techniques of Multivariate Analysis:
(i) Multiple Linear Equations: The regression analysis for studying more
than two variables at a time is known as a Multiple Linear Regression.
The Multiple Linear Regression takes the following form:
where, Y = dependent variable which is to be predicted, x1, x2, x3 and xk

= ‘k’ known variables on which predictions are to be based a, b1, b2, b3
and bk = parameters, the values of which are to be determined by the
methods of least squares.
(ii) Non-linear Regression: If the curve of the regression is not a straight

line, that it is a first degree equation in the variables of x and y, then it is
called Non-linear Regression. In this case, the regression equation will be a
functional relation between the variables x and y involving the terms in x
and y of the degree higher than one, i.e., x2, x3, xy, etc.
(iii) Discriminant Analysis: A Discriminant Analysis enables the

researcher to classify the persons or the objects into two or more
categories. For example, the consumers may be classified as extensive or
light users. This technique helps to predict the categories or classes which
are mutually exclusive and individuals that are likely to be included.
There are many different types of Analysis Models:
(a) Clustering System: This particular system assigns objects into

groups (called Clusters), so that objects from the same cluster are
similar to each other that object from different clusters.
(b) t-square: is a generalization of students statistics used for

multivariate hypothesis testing.
(c) Multivariate Analysis of Variance (MANOVA): This method

extends the method of analysis of variance to cover situations
where there are more than one dependent variables and where
the dependent variables cannot be combined.
312
DATA ANALYSIS
(d) Discriminant Function: This type of analysis attempts to

establish a set of variables which can be used to distinguish
between two or more groups.
(e) Regression Analysis: This analysis attempts to determine the

linear equation that describes, how some variables respond to
changes in another variable.
(f) Principal Component Analysis: This analysis attempts to

determine a smaller variable which could elaborate the set.
(g) Redundancy Analysis: This is a variant of the principal

component analysis in which the variables are in a linear
combination of a set of explaining variables.
(h) Correspondence Analysis: This also known as a Reciprocal

Averaging. This also attempts to determine a smaller set of
artificial variables that could explain the original set.
(i) Linear Discriminant Analysis (LDA): This analysis computes a

linear predictor from two sets, normally distributed data to allow
for classification of new observations.
(j) Logistic Regression: This allows regression analysis to estimate

and test the influence of covariates on binary responses.
(k) Artificial Neural Networks: This method is an extension of the

non-linear regression multivariate model.
(l) Multidimensional Scaling: This analysis covers various

algorithms to determine a set of artificial variables that best
represent the pair-wise distances between data.
(m) Canonical Correlation Analysis: This method attempts to

establish the relationships between two sets of variables (covariate
and responses).
(n) Recursive Partitioning: This creates a hierarchy of decisions

that strives to correctly classify members of the population based
on a dichotomous dependent variable.
313
DATA ANALYSIS
11.5 Simple And Cross Tabulation
When the data are tabulated to one characteristic, it is said to be a Simple

Tabulation or One-way Tabulation.
For example, tabulation of data on population of world classified by one

characteristic like religion is example of simple tabulation.
A Cross Tabulation (often abbreviated as cross tab) displays the joint

distribution of two or more variables. They are usually presented as a
contingency table in a matrix format. Whereas a frequency distribution
provides the distribution of one variable, a contingency table describes the
distribution of two or more variables simultaneously.
Cross Tabs are frequently used because:
• They are easy to understand. They appeal to people who do not want to
use more sophisticated measures.
• They can be used with any level of data: nominal, ordinal, interval, or
ratio-cross tabs treat all data alike as if it is nominal.
• A table can provide a greater insight than single statistics.
• It solves the problem of empty or sparse cells.
• They are simple to conduct.
Statistics related to cross tabulations. The following list is not

comprehensive:
Chi-square: This tests the statistical significance of the cross tabulations.

Chi-squared should not be calculated for percentages. The cross tabs must
be converted back to absolute counts (numbers) before calculating the chi-
square. Chi-square is also problematic when any cell has a joint frequency
of less than five.
314
DATA ANALYSIS
Contingency Coefficient: This tests the strength of association of the

cross tabulations. It is a variant of the phi coefficient that adjusts for
statistical significance. Values range from 0 (no association) to 1(maximum
possible association).
Cramer’s V: This tests the strength of association of the cross tabulations.

It is also a variant of the five co-efficient which adjusts the number of rows
and columns.
Lambda coefficient: This tests the strength of association of the cross

tabulations when the variables are Measured at the nominal level.
Asymmetric Lambda: This measures the percentage improvement in
predicting the depending variable.
Symmetric Lambda: This measures the percentage improvement when

the prediction is done on both directions.
Phi Coefficient: If both variables are nominal and dichotomous, the phi
coefficient is a measure of the degree of association between both the
variables. This measure can be interpreted similar to the correlation
coefficient in its interpretation. Both the variables are considered to be
positively associated, if majority of the data falls along the diagonal cell.
Simple Regression: Simple Regression is the least squares estimator of a

linear regression model with a single predictable variable. The Simple
linear regression fits a straight line through the set of n points in such a
way that it makes the sum of the squared residual models (which is,
vertical distances between the points of the data sets and fitted lines) as
small as possible.
This regression is one of the simplest methods in statistics. The fitted line
has the slope which is equal to the correlation between y and x, corrected
by the ratio of the standard deviations (S.D.) of these variables.
The intercepts of the fitted line is such that it passes through the centre of
mass (x, y) of the data points.
When the two variables are displayed in a scatter plot and one can be
thought of as a response to the other, the standard practice is to place the
response on the vertical (Y-axis). The names of the variables of the X-axis
and Y-axis vary according to the field of application.
315
DATA ANALYSIS
Some of the common applications are:
X-axis Y-axis
Independent Dependent
Predictor Predicted
Carrier Response
Input Output
The association looks like it could be described by the straight line. There
are many ways one can draw the straight line from the data. The point is
that the standard procedure must be followed for drawing or plotting the
straight line. This standard procedure is important so that the analyst
follows a common methodology for plotting.
The Regression Equation:
“The data are pairs of independent and dependent variables”
The fitted equation is writtenwhere is predicted value of the response

obtained by using the equation. The residuals are the differences between
the observed and predicted values
They are always calculated as (observed-predicted)

values.
There are two primary reasons for fitting a regression equation to a set of
data, first is to describe the data; second is to predict the response from
the carrier. The rational behind the regression line is calculated as best
seen from the point of view of prediction. A line gives a good fit to a set of
data if the points are close to it. Where the points are not tightly grouped
about any line, a line gives a good fit if the points are closer to it than any
other line.
316
DATA ANALYSIS
For predictive purposes, this means that the predicted values obtained by
using the line should be close to the values that were actually observed,
that is the residual should be small,. Therefore, when assessing the fit of a
line, the vertical distance of the points to the line is the only distances that
matter. Perpendicular distances are not considered because errors are
measured as vertical distances and not the perpendicular distances.
Muscle Strength
Lean Body Mass
The simple linear regression equation is called the Least Squares

Regression Equation.
The name itself suggests that the criterion used to select the best fitting
line, namely that the sum of the squares of the residuals should be the
least. That is the least square regression equation is the line for which the
sum of squared residuals is a minimum.
It is not necessary to fit a large number of lines by trial and error to find
the best fit. The sum of the squared residuals will be minimized by the line
for which it best fits.
317
DATA ANALYSIS
When the analysis is performed by a programme, then the output will look
like as above. A straight line can be fitted to any set of data. The formulas
for the coefficients of the least square fit are then same as the sample, a
population, or any arbitrary batch of numbers. However, regression is
usually used to let the analyst generalize from the sample in hand to the
population from which the sample is drawn. There is a Population
Regression Equation.
The sample regression equation is an estimate of the population regression

equation. Like any other estimate, there is an uncertainty element
associated with it. The uncertainty is expressed in the confidence bands
about the regression lines. They have the same interpretation as that of
the standard error of the mean, except the fact that the uncertainty varies
according to the location along the line. The uncertainty is least at the
sample means of the Xs and gets larger as distance from the mean
increases. The regression line is like a pendulum where it oscillates from
the centre.
The distance of the confidence bands from the regression line is:
where, t is the appropriate percentile of the t-distribution, se is the

standard error of the estimate, and x* is the location along the X-axis
where the distance is being calculated. The distance is smallest when x* =
These bands also estimate the population means value of Y for X = x*
318
DATA ANALYSIS
There are also bands for predicting a single response at a particular value
of X. The best estimate is given, once again, by the regression line. The
distance of the prediction bands from the regression line is:
For large samples, this is tse, so that the standard error of the estimate
function is like the standard error around the regression line.
The regression of X on Y is different from regression of Y on X. If one

wants to predict the lean body mass from the muscle strength, a new
model would be needed. It could not be obtained by taking the original
regression equation for solving the strength problem. The reason that the
original scatter plot, is the best equation for predicting the lean body mass,
minimizes errors in the horizontal direction rather than the vertical.
319
DATA ANALYSIS
For example:
The regression of strength on LBM is
Strength = –13.97 + 3.016 LBM
(solving for LBM)
LBM= 4.632 + 0.332 (strength)
However, the regression of LBM on strength is
LBM= 14.525 + 0.252(strength)
(On X-axis, muscle strength and on Y-axis, Lean body Mass)
The regression of X on Y is different from the regression of Y on X. If one

wanted to predict the lean body mass from muscle strength, a new model
would have to be fitted. It could not be obtained by taking the original
regression equation and solving for the strength. The reason is that in
terms of the original scatter plot, the best equation for predicting the lean
320
DATA ANALYSIS
body mass minimizes the errors in the horizontal direction rather than the
vertical.
Multiple Regressions: The general purpose of the multiple regressions is

to learn more about the relationship between several independent variables
and a dependent variable. For example, a real estate company might
record for each listed property; the attributes such as the size of the house
(sq.ft. area), number of bedrooms, locality, the class of people in the
neighborhood, etc., according to the census data and a subjective rating of
appeal for the house. Once the information has been compiled for various
houses, it would be easy to study how these measures relate to the price
for which the house is sold.
For example, one might think that the number of bedrooms is a better
predictor for obtaining a better price, or alternatively the neighborhood or
locality may decide on the price premium factor.
Professionals regularly use multiple regression procedures to determine t

equitable compensations. For example one can determine a number of
factors such as “an amount of responsibility” or a number of people to
supervise that one believes to contribute to the value of a job. The analysts
usually conduct a salary survey with comparable companies in the market,
recording the respective salaries and responsibilities for different positions.
This information can be used in a multiple regression analysis to build a
regression form.
Salary = .5*Resp+.8No_ Super. Once this said regression line has been
determined, the analyst can now easily construct a graph of the predicted
salaries and the actual salaries of job aspirants. Thus, the analyst is able to
determine which position is underpaid (below the regression line) and
which position is paid (above the regression line) or paid equitably.
321
DATA ANALYSIS
11.6 Factor Analysis
Factor Analysis is a statistical method used to describe variability amongst

the observed variables in terms of fewer unobserved variables called
Factors. The observed variables are taken as linear combinations of the
factors, and error terms. The information known about the inter-
dependencies can be used to reduce the set of variables in a data set.
Factor analysis is mostly used in behavioral science, social science,
marketing, operational research, etc. where a large quantity of data is
required to be analyzed.
Procedure for Factor Analysis:
The basic steps are as follows:
a. Identify the salient attributes, consumer use to evaluate a product in

the category.
b. Use quantitative marketing research techniques (surveys) to collect the

data from a sample of potential customers concerning their ratings of all
the product attributes.
c. Input the data in the statistical programme and run the factor analysis
procedure. The computer will give way to a set of factors.
d. Use these factors to construct maps and other product positioning

devices.
The Advantages of Factor Analysis are:
a. Both subjective and objective attributes can be used.

b. It is easy to perform, inexpensive and accurate.
c. It is based on direct inputs from customers.
d. It offers flexibility in naming and various dimensions.
322
DATA ANALYSIS
The Disadvantages of Factor Analysis are:
a. Its usefulness depends upon the researcher’s ability to develop a

complete and accurate set of product attributes – if important attributes
are missed out then the procedure can loose the value or it becomes
invalid.
b. Naming the factors is a complex activity, multiple attributes can be

highly correlated with no obvious reasons.
c. Factor analysis will always produce a pattern between variables, no

matter how much random it is.
Factor Analysis as a Data Reduction Method:
Suppose, we conduct a study in which we measure a sample height of 100

people in inches and centimeters. Thus, we could have two variables that
measure height. Suppose in future, we are carrying out a research on food
supplements which may have an effect on the growth of height, in that
case we may require the data of heights either one or both.
From the above-mentioned study, we understand the necessity for

extrapolation.
Suppose we want to measure how people are satisfied with their lives? We
design a questionnaire with various items amongst that we may ask about
their personal hobbies, i.e.:
a. How hard are they pursuing their hobbies in day to day life?
b. How satisfied are they with the amount of time they are giving for
their hobbies?
In the above mentioned case, we will find that the responses to both the
questions will be correlated with each other.
In statistics given that the correlation between two items is very high then
we can conclude them as unnecessary.
323
DATA ANALYSIS
Combining the two variables into a single factor: One can summarize
the correlation between the two variables in a scatter plot. A regression
line can then be fitted that represents the best summary of the linear
relationship between the variables. We could define a variable that would
approximate the regression line in such a plot., then that variable would
capture most of the fundamental nature of the two items subject scores on
the new factor represented by the regression line, could then be used in
future data analysis to represent the fundamental nature of two items.
Here we have reduced the two variables to one factor and the new factor is
actually a linear combination of the two variables.
Principal Component Analysis: Combination of two variable factors into

one factor, illustrates the basic idea of factor analysis, or the principal
components analysis. If one extends the two variable example to multiple
variables, then the computations become more involved, but the basic
principal of expressing two or more variables by a single factor remains the
same.
11.7 The Analysis Of Variance (ANOVA)
The Analysis of Variance involves measuring differences between the

means, which is described as a variance. The analysis of the variance goes
by the principal that the total variance which exists in the data can be
apportioned to a specific factor by using a formal mathematical method.
The size of the variance with reference to each factor will indicate that
factor’s influence on the dependent variable.
Analysis of variance is a very flexible statistical technique and with a

modification it can be used to test in various experimental designs.
This technique can be used to analyze the data when the treatments have
been randomly assigned.
The variance (being measured) must be in a metric format.
324
DATA ANALYSIS
Example:
The marketing department of a company is interested in determining which

of the new packaging will be most effective for the new shampoo. For this
purpose, the tests in all three designs will be carried out in five different
cities. This test is to understand the impact of the new packaging of each
design on the sales volume.
Another important factor would be the two major sources of variation to be

considered which will be:
(a) Impact of the packaging
(b) Influence on the sales in city
We requires a random design for the computation.
Random Design Showing Sales of Three Different Packages in Five

Cities of India
Test Cities 1st 2nd 3rd Mean

Packaging Packaging Packaging
A 40 41 60 47
B 38 29 20 29
C 60 54 78 64
D 28 33 41 34
E 34 33 41 36
Total No. of 200 190 240
Cases
Figures are in total number of cases sold
Treatment means:
Overall mean = 42
325
DATA ANALYSIS
From the Table, we see that the 3rd package design was proven to be
successful in terms of the sales. However, can that be considered as a valid
logic?, the difference in the sales of three packages shows a real
preference among the buyers for the third package design.
Are we sure of the preferences shown by citizens of those particular five

cities?
Is it not possible that the result in difference in the sales of all three
packaging designs is due to random error and not an actual preference of
packaging?
All these doubts can be cleared by Hypothesis Testing.
The two following null hypothesis can be tested:
a. Each package is equally attractive to all customers in all five cities.
b. Each package has equally influenced all the customers in all five cities.
Based on this, we can develop a format for random block design and derive
the computing ’F’ ratios.
We derive the sums of various square values, then the computed sums of
square values will be displayed on the variance table. This will enable us to
compute the ’F’ Values for each source of variation.
SST1 = The sum of squares of treatments (sum of all columns)

= 5 [(40 – 40)2 + (38 – 40)2 + (48 – 40)2]*(5–
represents the number of rows)
= 340
SSC = Sum of squares of cities (Sum of squares of rows)
= 3[(47 – 40)2 + (29 – 40)2 + (64 – 40)2 + (34 – 40)2 + (36 –
40)2]
(3* represents the number of columns)
= 2394
TSS = Total sum of squares
= (40 – 42)2 + (41 – 42)2 + (60 – 42)2 + (38 – 42)2 + …..+ (41 –
42)2
= 3186
326
DATA ANALYSIS
SSR = Residual sum of squares

= TSS – (SSC – SST)
= 3186 – (2394 + 340)
= 452
Now, the computed ratio’s for treatments are to be computed to a tabular

‘F’ values obtained from the table. The value of the ‘F’ will be based on the
degree of freedom in the ratio. Referring our example, in the case of
treatment there are two degrees of freedom in the numerator and eight
degrees of freedom in the denominator. Now for this combination of and at
0.05 level of significance the ‘F’F value is 4.46.
From the Table mentioned below we can see that the computed value of
‘F’ (4.46).
This analysis indicates that there was no significant difference between

packages in terms of overall consumer preference.
Thus, it can be stated that the null hypothesis. (Each package is equally
attractive to all customers in all five cities). This cannot be rejected, since
there is not enough confirmation to show the difference in sales among the
three packages is not on account of a sampling error or some other
variable.
In another case, the computed value of ’F’ for the difference between cities
(10.59) does well exceed the ‘F’ value of 3.84 for 4 and 8 degrees of
freedom at 0.05 level. This indicates that the second null hypothesis is
rejected (Each package has equally influenced all the customers in all five
cities). In other words, it can be seen that there are significant differences
between the five cities in terms of their acceptance of the different
packages.
This analysis indicates that the difference in sales between packages was
not because of a preference shown by all the consumers, but was rather
due to the differences in preferences among the five test cities.
327
DATA ANALYSIS
11.8 Summary
Data analysis is a process of gathering, modeling and transforming data

with the goal of highlighting the useful information, suggesting conclusions,
and supporting the decision making. Data analysis has multiple
approaches, encompassing diverse techniques in different businesses,
science and social science domains.
The quality of the data can be assessed in many ways. The distribution of
the variables before data cleaning is compared with the distribution of
variables after data cleaning, to check the unwanted effects on the data.
Secondly, the data is checked for missing observations, thirdly extreme
observations in the data are analyzed to check whether they disturb the
distribution.
328
DATA ANALYSIS
Three important steps in data analysis:
A. Univariate analysis: This is the first step in data analysis to examine

the distribution of each individual variable.
B. Bivariate analysis: The second step in data analysis is to describe the

association between pairs of variables.
C. Multivariate variables: This is the third step in data analysis to make

use of a statistical model called linear regression, to examine the
relationship between the multiple independent variables and dependent
variables. This is to gain insight into the causal relationship.
Chi-square Test: The chi-square test, written as χ2 test is a useful

measure of comparing experimentally obtained results with those expected
theoretically and based on hypothesis. It is used as a test static in testing a
hypothesis that provides a set of theoretical frequencies with which
observed frequencies are compared.
The measure of the chi-square enables us to find out the degree of

discrepancy between the observed frequencies and theoretical frequencies.
It helps to determine whether the discrepancy occurred due to the error of
sampling or the error of chance.
Correlation: Correlation may be defined as the tendency of two groups or

a series of items to vary together directly or inversely. When two
phenomenons are varying simultaneously in the same direction with the
opposite directions, and the variation in one is caused by due to variation
in another, then the two phenomenons are said to be correlated. Whenever
there is a definite connection between the two or more groups, then there
is said to be a correlation.
If the two groups move in the same direction, correlation is said to be

direct. If the two groups move in the opposite directions, then they are
said to be inversely correlated.
Regression Analysis: This analysis attempts to determine the linear

equation that describes, how some variables respond to changes in another
variable.
329
DATA ANALYSIS
Principal Component Analysis: This analysis attempts to determine a

smaller variable which could elaborate the set.
1. The process of gathering and transforming data into useful information

is known as _____________.
(a) Sales analysis
(b) Sampling
(c) Data analysis
2. The sampling of the real world to generate data is called as

_____________.
(a) Physical phenomenon
(b) Data analysis
(c) Data acquisition
3. The analysis which is concerned with the description or summarization

of individual variables in a given data is called as _____________.
(a) Bivariate analysis (b) Multivariate analysis (c) Univariate analysis
4. The estimation of a population parameter given by a single number is

called as _____________.
(a) Point estimation
(b) Interval estimation
(c) Frequency distribution
5. Bivariate analysis is _____________.

(a) The simultaneous analysis of two variables.
(b) Analysis of one variable with respect to other independently
(c) Analysis of one variable with respect to many variables
6. Which of the following test is a useful measure of comparing

experimentally obtained results from those that are theoretically
obtained?
(a) Chi-square test
(b) Rank correlation
(c) Regression
330
DATA ANALYSIS
7. Which of the following study is used to make a comparative study

between related phenomenons?
(a) Correlation
(b) Regression
(c) Discriminant analysis
1. What is a multivariate analysis? State its technique.
2. What is a factor analysis? State its procedure, advantages and

disadvantages.
331
DATA ANALYSIS
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
332
HYPOTHESIS TESTING
Chapter 12
Hypothesis Testing
Objectives
The researcher always takes effort and time to speculate so as to emerge

with the best possible answers to the research problem. A hypothesis is a
possible answer to a research question.
• Formulation of a hypothesis
• Testing of the hypothesis and its parameters.
• Steps in hypothesis testing
• Types of different hypothesis tests
Structure:
12.1 Introduction
12.2 Hypothesis Testing
12.3 Application of Hypothesis Tests in Marketing Research
12.4 Limitations of Hypothesis Testing
12.5 Summary
333
HYPOTHESIS TESTING
12.1 Introduction
Hypothesis testing evaluates two mutually exclusive statements (null and

primary hypothesis) about a population done to examine (to be very sure
before commencing full primary research) which statement is best
supported by the sample data. Hypothesis testing enables you to have
dependent variable correct and thus make your outcome more statistically
significant. It is important to make a judgment about the population mean
in marketing research. This can be done by testing the hypothesized value
of the population mean.
The choice of the probability distribution depends upon:
a. The purpose of hypothesis testing.
b. The size of the sample.
c. If the population’s standard deviation is known, then the sample size

doesn’t really matter. However if the population standard deviation is
not known, then the sample size is critical.
Consider that Government of India’s Niti Aayog wants to understand

whether the monthly electricity cost for families has changed from the
previous year, when the mean cost per month was ` 2,260. The economist
randomly samples 50 families and records their electricity costs for the
current year. (The data for this example is Family Electricity Cost and it is
just one of the many data set which can be a variable factor.)
334
HYPOTHESIS TESTING
Example of family electricity costs
Variable Sample Mean SE Mean Standard

Number Deviation
Electricity cost 50 3360.6 300.8 1154.2
From the above, we will understand the importance of hypothesis tests.
We took a random sample and sample mean of 3330.6 is different from

2260. That is different, right? Unfortunately, the picture is muddied
because we are looking at a sample rather than the entire population.
Sampling error is the difference between a sample and the entire

population. Thanks to sampling error, it is entirely possible that while our
sample mean is 3330.6, the population mean could still be 2260. Or, to put
it another way, if we repeated the experiment, it is possible that the
second sample mean could be close to 2260. A hypothesis test helps
assess the likelihood of this possibility! It helps to take corrective measures
before executing full research.
A Hypothesis is a tool of the research based on which the researcher

derives answers to the research questions.
Another example: the hypothesis could speculate if the sales are down in
the western region then that is because the competition is running
promotions and heavy marketing campaigns.. Such hypothesis provides
considerable details to a research problem that what could be the problems
in the western region which have caused a reduction in the sales? The
most important point in the hypothesis is that it suggests the variables to
be included in the research design, in case of competition.
335
HYPOTHESIS TESTING
12.2 Hypothesis Testing
A testing of hypothesis could begin with an assumption. The testing of

hypothesis is a procedure that helps in ascertaining the likelihood of a
hypothesized population parameter being correct in making sample
statistics. In the testing of hypothesis, a statistics is computed from a
sample drawn from the data, and on the basis of this statistics, it is
observed whether the sample drawn has come from the population with
certain characteristics.
The test of the hypothesis discloses the fact as to whether the difference
between the sample statistics and corresponding hypothetical population
parameter is significant or not significant. Thus, the test of hypothesis is
also known as the Test of Significance. The data from an appropriate
sample is collected and the information obtained from the sample is used
to decide as to how likely the hypothesis – population parameter is correct.
The hypothesis questions are selective questions, which result into the
empirical findings questions, they should be analyzed first for checking
whether the necessary information can be generated or not. Considering
the efficacy of the questions, the researcher must spend time and efforts
for further research work.
The purpose of Hypothesis Testing is not about testing the questions that
computed value of the sample statistics, but to make a judgment about the
difference between the sample statistics and the hypothesized population
parameter.
For example, in the marketing research the situation arises, where there is
a need to test the assumption regarding certain value of the population
mean. To test the assumption’s validity, data from a sample is gathered
and the sample mean and the hypothesized value of the population mean
is calculated. The smaller the difference is, greater is the chance that the
value of the hypothesized population for the mean is correct.
336
HYPOTHESIS TESTING
Steps in Hypothesis Testing
1. Defining the problem.

2. Stating the null and alternative hypothesis.
3. Selection of the pertinent tests and appropriate probability distribution
4. Making a suitable choice of the critical value
5. Comparing test statistics with critical value
6. Making a decision.
1. Defining the problem: It leads to the generation of the hypothesis.

The relevant probability distribution is then chosen. The corresponding
critical value is determined from the information such as, significance of
level, degree of freedom and a two-tailed test, etc. The appropriate test
statistics is then compared with the relevant critical value, and if the
test statistics fails in the critical region, the null hypothesis is rejected.
2. Clearly stating the null and alternative hypothesis: The

conventional approach to hypothesis is to set up two hypotheses instead
of one, in such a way that if one hypothesis is true then the other one is
false. Alternatively, if one hypothesis is rejected, then the other
hypothesis is automatically proven to be true and accepted.
These two hypotheses are:
(a) Null Hypothesis
(b) Alternative Hypothesis
The null hypothesis means invalid hypothesis.
For example, in case of the mean population (µ0)
H0 = µ = µ0 Where H0 is the null hypothesis.
The alternative hypothesis can be stated as, Ha ≠ µ0 (Ha: Alternative

hypothesis).
337
HYPOTHESIS TESTING
The rejection of the null hypothesis will show that the mean of the
population is not µ0. This means that the alternative hypothesis is
accepted. It may be possible that there will be more than two alternative
hypotheses. In that case, each one must be tested against the null
hypothesis.
3. Choosing a suitable test and appropriate probability distribution:

After stating the null and alternative hypothesis, the next step is
selecting a suitable test and an appropriate probability distribution. The
choice of the appropriate suitable distribution depends on the purpose of
the hypothesis test. The purpose could vary from comparing the sample
and the population to comparing two sample characteristics, such as
mean, variance, proportion, etc.
For a given purpose, a particular form of the statistical test may or may not
be appropriate depending on the sample size and the standard deviation of
the population. In marketing always a large number of samples is dealt
with, so as to achieve accurate conclusions.
Selection of the appropriate criterion for making the decision of accepting

or rejecting the null hypothesis and alternative hypothesis is our next step.
The commonly used three criterias are as follows:

1. The significance level.
2. The number of degree of freedom
3. One or two-tailed test.
4. Choosing the critical value: Significance level – If the hypothesis is to

be tested at the 10% level of significance, it means the null hypothesis
will be rejected further, if the difference between the sample statistics
and hypothesized parameter of the population is so large that this or a
larger difference would occur, on the average of only 10 samples in 100.
In other words, assuming the hypothesis to be true, the significance
level indicates the percentage of sample means which is outside the cut-
off limits can also be called as the Critical Value.
338
HYPOTHESIS TESTING
There is nothing called a specific rule for selecting a significance level. The
most commonly chosen levels in research are 1% level, 5% level and 10%
level. Although it may be possible to test the hypothesis at any of these
levels of significance. It should be clearly understood that the significance
level so selected is also the risk assumed of rejecting a null hypothesis
when it is true. Higher the significance level used for testing a hypothesis,
greater the probability of rejecting a null hypothesis when it is true. This is
called TYPE-I ERROR.
Alternatively, not rejecting a null hypothesis when it is false is called as

TYPE-II ERROR. Whenever a choice of the significance level for a test of
hypothesis is made, there is an inherent trade-off between these two types
of errors. The probability of making one type of error can be reduced only
if the researcher is willing to increase the probability of making another
error.
To deal with this trade-off, the researcher may decide the appropriate level
of significance by examining the costs attached with both types of errors.
Let us consider an example of mineral water in packed bottles:
If we assume the Type-I Error to be true (Rejecting the null hypothesis

when it is true) involves taking time and complex procedure to retest the
batches of packed bottles for contaminations, which should have been
otherwise accepted. But making Type-II Error (Accepting a null hypothesis
knowing it is false). This means taking a chance of supplying contaminated
bottles in the market. Obviously in such cases, the company will prefer to
accept the Type-I Error. Resultantly, it will set a high level of significance in
testing.
Ideally, a good test of hypothesis must reject a null hypothesis when it is

false. In other words, the probability of accepting a null hypothesis when it
is false should be lowest possible
This also known as a power of the Hypothesis Test.
Thus, the power of the hypothesis test of a null hypothesis is the

probability that it will lead to the rejection of the null hypothesis; that is,
the probability it will result in the conclusion that the phenomenon exists.
339
HYPOTHESIS TESTING
The power of hypothesis test depends upon three parameters:
• The significance level of the test.

• The reliability of the sample results
• The effect size.
5. Comparing test statistics with critical value:
Degree of freedom (dr): This refers to the number of bits or

unconstrained data used in calculating a sample statistics. The Degree of
freedom is traditionally represented as n – k, where ‘n’ is the total
number of information bits available and ‘k’ is the number of linear
constraints or restrictions required when the sample statistics are
calculated. In a simple random sample of ‘n’ observations, there are ‘n’
degrees of freedom if no restrictions are placed on the sample. A sample
means has ‘e’ degrees of freedom, since there are no restrictions applied
to the sample while calculating its value. However, there are (n – 1)
degrees of freedom associated with a sample variance, because one
degree of freedom is lost due to the restrictions so that it is necessary to
calculate the mean before calculating the variance. Therefore, the first (n
– 1) observations in a sample can be selected freely, but the value must
be chosen in a way that the constraints of an electrical mean value will
be satisfied. In general the most degree of freedom there are, the
greater is the observed differences in the relationships among variables.
One- or Two-tailed Test: In conducting a one-sided hypothesis test,

the researcher determines a particular whether a particular population
parameter is large or small than the pre-defined value. In this case, only
one critical value and one region of a test statistic is used. In a two-sided
hypothesis test, the researcher determines a population parameter which
is within certain upper and lower bands. Depending on the statistical
technique applied, one or two critical values may be used.
6. Making a Decision: This is a step in hypothesis testing to reach a

statistical decision. This involves acceptance or rejection of the null
hypothesis. This will depend on whether the computed values of the test
criteria fall in the region of acceptance or in the region of rejection at a
given level of significance. It should be noted that the statement of
rejecting the hypothesis is stronger as compared to the statement of
accepting the hypothesis. In other words, it is much easier to prove
340
HYPOTHESIS TESTING
something false than to prove it is true. Thus, when the researcher says
that the null hypothesis is not rejected, then it is proven to be true.
Types of Tests
There are two types of tests:
1. Parametric Tests.
2. Non-parametric Tests.
The Parametric Tests assume that the parameters such as mean, standard
deviation, etc., exists and they are used in testing a hypothesis. In some
cases, the population may not have a normal distribution. However, a
research studies a sample most frequently used as the sample distribution
is very close to normal distribution.
The parametric tests commonly used are:
(a) z-test.
(b) t-test.
(c) x-test.
(d) f-test.
These tests are more powerful as compared to non-parametric tests.
There are situations, particularly in marketing research where the

assumptions underline the parametric tests are not valid. This means there
are no assumptions that a particular distribution is valid to a certain value
which is attached to a parameter of the population. In such cases, non-
parametric tests are used. These tests are also known as Distribution-free
Tests. There are a number of such tests such as Chi-square tests, Rank-
some test, McNemar test, etc.
A major advantage of the non-parametric test is that they are quick and
easy to use. Moreover, when the data is not accurate there should be a
proper application of standard tests of significance. These tests are
advisable, since they are convenient to use and they yield satisfactory
results.
341
HYPOTHESIS TESTING
The use of non-parametric tests involves a greater risk of accepting a false

hypothesis and thus committing a type-II error. Further, as the null
hypothesis is loosely defined and when it gets rejected, in such a case the
non-parametric tests yields less accurate results as the compared to
parametric tests.
12.3 Application of Hypothesis tests in Marketing Research
One-tailed Test and Two-tailed Test: Examples and Graphs
One-tailed Test:
Example 1: MRF Tyres, a tyre manufacturing company in India. It finds

that the tyre-life is normally distributed with a mean of about 40,000 kms
and a standard deviation of 3000 kms. Certain changes and modification in
the production process will result into a better product and the company
has developed a new product. A sample of new 64 tyres were selected, The
mean life of these tyres is 41,200 kms.
342
HYPOTHESIS TESTING
We want to prove that the new type can be better than the old one?
Problem here is, the company wants to test whether the mean life of the
tyre has increased or not?
The various steps in null hypothesis are:
1. Null hypothesis and alternative hypothesis are:

H0 : µ = 40,000 kms
H1 : µ > 40,000 kms
2. The significance level is taken as 0.05, which means that 5 out of

every 100 occasions, there is a risk of being wrong in accepting or
rejecting the hypothesis.
3. The test criteria, Z-test.
4. Computations: Substituting the value of standard deviation as σ

=3000 kms in the formula.
5. Decision: at 0.05 level of significance, the critical value of Z = ±

1.64.
Figure below mentioned shows that the computed value for Z = 3.2 falls in
the rejection region. Thus, the hypothesis that µ > 40,000 kms is accepted
and µ = 40,000 kms is rejected. In this example, the value of N
(Population size is not given). It is assumed that the sample size n is
relatively very small to the population size N therefore the finite population
correction factor is not used.
Hence, it is proved that the new type of tyre is significantly better than the
old one.
Example 2: Jumbo Ice cream Manufacturing Pvt. Ltd. sells 500 gms pack.
Periodically, a sample is taken to check whether an average pack contains
500 gms or not. A sample of 16 packs is taken and the sample mean is
found and the estimated standard deviation is got.
Does the sample mean vary significantly from the intended weight of 500
gms.
343
HYPOTHESIS TESTING
In this case, we take the null hypothesis that there is no difference

between the sample mean and population mean. Thus, H0 is µ = 500 gms.
And we have two tail tests. The t-statistics is:
This t has a distribution with (16 – 1) = 15 degrees freedom. Assuming α,

the risk of type-I error0.05 for 15 degrees of freedom, the critical value of t
is 2.131.
It can be seen from the figure that the calculated value of t falls within the
rejection region. We therefore reject the null hypothesis and conclude that
a sample mean differs significantly from the population mean of 500 gms.
The company must tighten the controls in packing.
Two-tailed Test:
344
HYPOTHESIS TESTING
Example 3: A potential wholesaler wants to decide which of the two

brands of CFL bulbs he should buy in bulk. He initially buys 100 units of
each bulb; let’s assume the brands as A and B. After using the bulbs he
realizes that the brand A has a mean life of 1000hours, with a standard
deviation of 30. Brand B has a mean life of1050 hours with a standard
deviation of 50.How can he decide about the difference in quality of the
brands.
Let us assume a null hypothesis as both the brands do not differ

significantly in quality.
Null hypothesis: H0: µ1= µ2
Alternative hypothesis: H1 : µ1≠ µ2
Assuming α = 0.05, we find that the value of z is ±1.96. As calculated

value of Z (–8.58) falls in the rejection region, we reject the null
hypothesis and we conclude that both the brands differ in quality
significantly from each other.
Chi-square One-sample Test:
This test enables the researcher to determine whether an observed pattern

of frequencies match to an expected pattern. It tests the goodness of ‘fit’
of the observed distribution in relation to an expected distribution. At
times, the researcher is interested in determining whether the numbers of
responses that fall into various categories differ from change. If the data
are nominally scaled, the Chi-square test is applied. When tests are
undertaken to examine whether the sample data support the hypothetical
distribution, such problems are called Tests of Goodness of Fit.
The χ2 test requires the following steps:
1. State the null hypothesis and calculate the number in each category if
the null hypothesis is correct.
2. Determine the level of significance, that is how much risk of the type-I
error the researcher is prepared to take.
3. Calculate χ2 as below:
345
HYPOTHESIS TESTING
where:
Oi = Observed frequency in the ith category.
Ei = Expected frequency in the ith category
K = Number of categories, degree of freedom (df) = k-1
4. Determine the number of degrees freedom. For the specified level of

significance and the degrees of freedom, find the critical value of χ2.
5. Compare the calculated value of χ2 with the critical value and determine
the regions of rejection.
Example:
A jumbo ice cream manufacturer is manufacturing mango ice cream in

three different sizes: large, regular and small. It has been observed the
ratio in which the variety of sizes sell is 3 : 5 : 2.
The company wishes to introduce a new strawberry flavor and has

conducted a test marketing campaign for the same. The results of the test
marketing show that it has sold 250 large packs, 400 regular packs and
350 small packs of the new flavor.
The company wants to find out about the consumption pattern of the new
strawberry flavor, which is different from the mango flavor.
We state the null hypothesis as “The consumption of the new strawberry

flavor is not different than the mango flavor. Now we calculate the value of
χ2”.
346
HYPOTHESIS TESTING
WORKSHEET FOR THE CALCULATION OF CHI-SQUARE TEST
Pack Observed Expected (O – E) (O – E)2

Size Frequency Frequency
Large 250 300 –50 2,500 8.33
Regular 400 500 –100 10,000 20.00
Small 350 200 –150 22,500 112.50
χ2 =
140.83
Degree of freedom, 3 – 1 = 2. At 5% level of significance, the critical value

of χ2 for 2 degrees of freedom is 5.991. Since the calculated χ2 is more
than the critical value of χ2, it falls in the rejection region. We therefore,
reject the null hypothesis which stated that the consumption pattern of the
new ice cream is not different from the earlier one. In other words, this
shows that the new flavor of strawberry ice cream has a different
consumption pattern than the mango flavor.
McNemar Test: This test is a modification of the chi-square test. It can be

used with nominal and ordinal data both, and even when the samples are
not independent.
This test is known as an ideal test for pre-evaluation and post-evaluation,

although it is restricted to the examples of 2 × 2 frequency tables. This
test may be used to test the effectiveness of a particular treatment such as
an advertising campaign/promotion campaign, etc.
347
HYPOTHESIS TESTING
Tests of differences among two or more means, independent

samples:
When two or more means of independent samples are involved, the

analysis of variance (ANOVA) is used to test the differences among the
means. It is an effective statistical tool to test the differences between the
means.
To understand (ANOVA), it is desirable to discuss it in two different parts:
(a) One way classification
(b) Two way and Three way classification.
The null hypothesis is:
H0 : µ1 = µ2 = µ3…………… µK
The alternative hypothesis is:
H1 = All the µi are not equal.
Following steps are involved in calculating the ANOVA:
1. Calculate the variance between the samples.
2. Calculate the variance within the samples.
3. Calculate the ‘F’ ratio.
4. Compare the value of F as arrived in (3) above with the critical value of
‘F’ such a 5% level of significance for the applicable degree of freedom.
When the calculated value of ‘F’ is less than the table value of ‘F’ , the
difference in the simple means is not significant and the null hypothesis is
accepted. In contrast when the calculated value of ’F’ is more than the
critical value of ’F’, the difference in the sample means is regarded as
significant and the null hypothesis is rejected.
348
HYPOTHESIS TESTING
12.4 Limitations Of Hypothesis Testing
1. The test should not be used in a mechanical manner. It should be kept

in view that testing is not decision-making in itself; the tests only aid in
making decisions. Therefore, proper interpretation of the statistical
evidence is important for arriving at a decision.
2. The tests do not explain or elaborate the reasons why a particular

difference exists between the two means of the samples. They simply
indicate whether the difference is due to any fluctuation of sampling or
any other reasons. However, tests do not tell of any specific reasons.
3. Results from the significance tests depends upon the probabilities, as

such cannot be expressed with full certainty. When a test shows that a
difference is significant, then it is probably not due to chance.
4. Statistical interferences based on the significance tests cannot be said to

be entirely correct evidences concerning the truth of the hypothesis.
This is particularly in the case of small samples, where the probability of
drawing erring inferences happens to be higher for greater reliability,
the size of the sample should be adequately large.
A hypothesis, thus, is an assumption or theory that a researcher makes

about some characteristic of the population being investigated. With the
help of testing, the researcher determines whether a hypothesis is valid or
invalid. When the marketing researcher is examining differences between
the groups, the test of a proposition can be used. A researcher can test a
proposition with one sample or test the differences between them when
dealing with independent samples.
349
HYPOTHESIS TESTING
12.5 Summary
It is important to make a judgment about the population mean in

marketing research. This can be done by testing the hypothesized value of
the population mean.
A Hypothesis is a tool of the research based on which the researcher

derives answers to the research questions. The researcher is expected to
spend time and efforts to speculate the various answers to the research
questions. The answers to the research questions are evolved out of the
research process, as the relevant empirical findings are emerged out from
the research and their analysis.
The choice of the probability distribution depends upon:
a. The purpose of hypothesis testing.
b. The size of the sample.
c. If the population standard deviation is known, then the sample size

doesn’t really matter. However if the population standard deviation is
not known, then the sample size is critical.
A testing of hypothesis could begin with an assumption. The testing of

hypothesis is a procedure that helps in ascertaining the likelihood of a
hypothesized population parameter being correct in making sample
statistics. In testing of hypothesis, a statistics is computed from a sample
drawn from the data and on the basis of this statistics, it is observed
whether the sample drawn has come from the population with certain
characteristics.
The choice of the appropriate suitable distribution depends on the purpose

of the hypothesis test. The purpose could vary from comparing the sample
and the population to comparing two sample characteristics, such as mean,
variance, proportion etc.
Assuming the hypothesis to be true, the significance level indicates the

percentage of sample means which is outside the cut-off limits can also be
called as the Critical Value.
350
HYPOTHESIS TESTING
One- or Two-tailed Test: In conducting a one sided hypothesis test, the

researcher determines a particular whether a particular population
parameter is large or small than the pre-defined value. In this case, only
one critical value and one region of a test statistic is used. In a two-sided
hypothesis test, the researcher determines a population parameter which is
within certain upper and lower bands. Depending on the statistical
technique applied, one or two critical values may be used.
Making a Decision: This is a step in hypothesis testing to reach a

statistical decision. This involves acceptance or rejection of the null
hypothesis. This will depend on whether the computed values of the test
criteria fall in the region of acceptance or in the region of rejection at a
given level of significance.
Chi-square One-sample Test: This test enables the researcher to

determine whether an observed pattern of frequencies match to an
expected pattern. It tests the goodness of ‘fit’ of the observed distribution
in relation to an expected distribution.
McNemar Test: This test is a modification of the chi-square test. It can be

used with nominal and ordinal data both, and even when the samples are
not independent.
When two or more means of independent samples are involved, the

analysis of variance (ANOVA) is used to test the differences among the
means. It is an effective statistical tool to test the differences between the
means.
351
HYPOTHESIS TESTING
1. A hypothesis begins with _____________.
(a) Assumption (b) Facts (c) Decision
2. A hypothesis is called as null hypothesis because of _____________.
(a) Valid statement (b) Invalid statement (c) Error
3. Which of the following test is a non-parametric test?
(a) z-test (b) t-test (c) McNemar test
4. The test ideally suitable for a pre-test and post-test evaluation and it
can be used with either nominal or ordinal data _____________.
(a) McNemar test (b) Chi-square test (c) z-test
5. At times, the researcher is interested in determining whether the

number of responses falls into various categories differ from change, in
such case if the data is nominally scaled then which test is to be
applied?
(a) Chi-square test (b) z-test (c) t-test
6. The choice of probability distribution depends upon _____________.

(a) The purpose of hypothesis testing
(b) Making decisions
(c) Degree of freedom
7. The higher the significance level used for testing a hypothesis, the
greater the probability of rejecting a null hypothesis when it is true, this
is called _____________.
(a) Type I Error (b) Type II error (c) Trade-off
352
HYPOTHESIS TESTING
1. What are the various steps in hypothesis testing?
2. Write short notes on:
(i) McNemar test

(ii) Chi-square test
(iii) One- and two-tailed test
353
HYPOTHESIS TESTING
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
354
REPORT WRITING
Chapter 13
Report Writing
Objectives
A Researcher communicates the findings of the research in a structured

manner through the report to the management.
• Preparation of a quality report

• Fundamentals of a good report
• Different types of reports
• Structure of reports
• Precautions to be taken while preparing a report
Structure:
13.1 Introduction
13.2 Fundamentals of a Good Research Report
13.3 Characteristics of a Good Research Report
13.4 Types of Research Reports
13.5 Structure of the Report
13.6 Precautions to be Taken While Preparing a Research Report
13.7 Summary
355
REPORT WRITING
13.1 Introduction
A Research Report is used by the researcher to convey the results of the

study in a detailed manner. The report presented enables the reader to
understand the data in a most comprehensive manner and it is validated
with conclusions.
The research report is a formal account of the research process and its
outcome. The purpose of the research is to communicate the outcome of
the research project meaningfully. A report clearly explains What was
done? How it was done? And why it was done?
The aim and objective of the report is to give a true and clear picture about
the entire study, in a way that it facilitates decision making.
Also, report is a conventional tool and today different ways can also be
explored to present your findings.
13.2 Fundamentals Of A Good Research Report
After the entire market research work is completed including the analysis,
the next step is to prepare a report.
Guidelines to Write a Good Report:
The report must begin with a powerful headline and a good opening
summary. If the report fails to get attention from the reader then the
entire purpose gets defeated. A qualitative writing of summary which
provides the essence of the project must be incorporated.
It should be remembered that if the report does not convey the facts then
it will not be read in a manner it should have been read, and as a result
the necessary actions will not be taken. Eventually, the company will not
receive the benefits from the project.
A researcher must ensure that he or she is grabbing attention constantly in

the report. The data provided and structure of the data must convey the
genuineness and reveal the facts.
356
REPORT WRITING
1. Keep the report logically organized: The report should be presented

in a clear and logical manner. The researcher has to think from the
readers perspective, i.e., what am I looking from this report?
Some of the ways in which it can be organized:
• Two volumes – 1) Brief report and detailed report
• Two parts – 1) Sections in brief and descriptive in Part 2
• Text and annexures – All secondary tables, analysis are filed as

separate annexure section
• Chapter-wise separation – Each chapter has descriptive part followed

by summary of outcome and supported by tables/annexures
2. Keep the report moving: Creating the dynamic flow of information in

the research report is absolutely essential for maximum reading. It
should exhibit the logical chain of points linked with each other in a
sequential way. The points mentioned should not be repeated and the
flow of information should be smooth.
The researcher must highlight the points of special significance, so that

they are not missed out. Supporting quantitative data must be
presented wherever necessary to validate the statements made.
Making each section of the report adequately long enough to keep up

the momentum. It should not be too lengthy or too short.
3. Maintain the simplicity: The researcher should try to keep the simple
and logical language for the report. The phrases and technical words
used should be corresponding to the information delivered. The
intended thought of the researcher must be well projected from the
writing; the whole idea is not about only writing a report but delivering
the information so as to take necessary action.
The researcher should avoid inserting the ideas which are underdeveloped
or which he has read somewhere, as it may create confusions.
357
REPORT WRITING
Four important points to maintain the simplicity of the report:

(a) Use more precise word choices
(b) Eliminate unnecessary complex words
(d) Avoid unnecessary repetitions
(e) Make use of adequate graphs, tables, pictures or figures
4. Keep the report authentic: The reader when he picks up the report is
already cynical about it and has plenty of questions in mind for which he
is searching for some answers. The report should go on building trust
and belief while reading. If the report starts building a cloud of disbelief,
then it will lead the reader towards becoming suspicious about the
information, then methodology and finally the findings.
5. Purpose of the report: The researcher must keep in mind the

intended audience to the report before he starts drafting the report.
6. Overall approach: The researcher should take a top to bottom

approach to writing the report. This can proceed in three different
stages as below:
1. Writing the section outline (header).
2. The subsection outline
3. Paragraph level outline
The flow of points may be indicated by bullets for better clarity. The
researcher should think about in advance at which stage to insert graphs/
pictures/figures/tables, etc. within the paragraph.
Another important point during outlining the paragraph is the terminologies

going to be used, for instance, names of various protocols, algorithms or
steps in the solutions and mathematical expressions, etc.
358
REPORT WRITING
13.3 Characteristics of a good Research report
The quality of the report is judged from the following mentioned

characteristics:
a. A good quality report displays the originality and it is necessary to

validate the new information generated.
b. A good report must provide precise information and must be to the

point.
c. The language used must be plain and simple without the use of complex
or elegant words. It should be an understandable, logical and exact
presentation.
d. It should be written in an impersonal style.
e. It should be neat and tidy. Illustrations must be given wherever

necessary.
f. A report must be objective.
g. The report must not be vague and off the point. It must avoid
ambiguous terms.
h. The ideas mentioned must be pragmatic and logical.
i. It should be written from the audience perspective and not because the
researcher thinks about it.
j. The report must have adequate length so as to cover all the necessary
aspects and hold interest and attention wherever necessary.
The GOLDEN RULE as generally suggested is that report must follow it in

such a way that recipient, himself derives the conclusion on his own. How
do you do it? Follow O.I.C. principal. During our normal conversation, when
someone explains certain things well and we are able to understand it, we
naturally say ‘’Oh, I See’’. This principal is derived from that O stands for
first writing observations, followed by information and/or inferences and
then derive conclusion. It means follow the writing in such a way that you
359
REPORT WRITING
are able to present data and observation supported by derived inferences

in such a way that reader naturally starts concluding, what we may be
mentioning at the end.
13.4 Types Of Research Reports
The research reports are broadly classified between Oral reports and
Written reports.
Oral Reports: An Oral Report is the one where the findings of the report
are conveyed orally. The oral report must be presented by the researcher
who has excellent speech-making skills. In an oral report, the style of
delivery, language used and knowledge about the project are extremely
important.
An oral presentation is effective when policy recommendations are to be

made and discussions are likely to take place. However, there are some
disadvantages of an oral report such as it lacks display of charts, diagrams,
or graphs. The receiver finds it difficult to understand complex data.
While making an oral report presentation, the researcher must take into
consideration the nature of audience-technical expertise, experience, level
of operations and interests, etc. The purpose of the information should be
informative, persuasive, convenient or recommended, etc.
The oral presentation must be in a simple elaborative language showing a

logical flow of information from point to point. There should not be a
parallax between points. It should not have large gaps between sentences.
Optimum use of visual aids, distribution of handouts prior to these
presentations should be made.
The researcher must present a summary of discussions at the end of the

presentation.
Written reports: The written reports are categorized based on various

bases depending on the objectives of the reports.
360
REPORT WRITING
Written Reports can be classified on the basis as given below:
• Nature or the purpose of the report – Routine reports, special reports
• On the basis of the time frame – Daily, weekly, monthly, quarterly, half
yearly, annual report, etc.
• On the basis of the subject of the report – Environment, economics,

social, etc.
• On the basis of the physical forms – Short report, memo, letter, review
evaluation, examination, etc.
• On the basis of function – Information (subjective/analytical).
• On the basis of origin – Private, semi-government, government, NGOs,

etc.
Technical Report: The Technical Report gives a comprehensive coverage

of the research objectives and hypothesis, method employed, assumptions
of the studies and its findings. It is oriented to experts/technocrats/
scientists in the research discipline.
Non-technical Report: It is in contrast with the Technical Report and

primarily aimed at non-technical persons such as administrators,
accountants, human resources, sales and marketing. The findings and
conclusions drawn and their practical implications are more focused than
the methodology used. It is written in a contemporary language, often with
the use of pictures, cartoons is done to express a point. The emphasis is on
persuasive presentation.
Interim Report: The term ‘Interim’ means time between the events.
These types of reports are generally made when the data collection
procedure is extremely long and time-consuming. Especially, when there is
a long span of time between data collection and presentation of findings. It
enables to keep up the interest of the reader when reporting intermediate
progress of the study. The report facilitates taking some action without
waiting for the full report to be generated. It prevents any
misunderstanding regarding the waiting period involved. At times, the
361
REPORT WRITING
reviews of the interim report also help as an input in making the final
report.
Summary Report: This is a short and concise report from the common
man’s perspective. It indicates the essence of the project and methodology.
It is short enough to be published in newspapers and magazines. It mainly
focuses on problem areas, objectives and information about findings and
suggestions.
Research Abstract: It is the synopsis or a short summary of a technical

report. It is most commonly prepared by Ph.D. students. The examination
board uses this to understand the subject matter and scope of study. It
contains a brief statement of the problem, objectives of the study, method
and technique used and overview of the report. It is a potential indicator of
the qualitative aspect of the project.
To write an effective report, it is essential to plan the content well.
13.5 Structure Of The Report
A Research Report generally consists of three parts:
(A) The Preliminary Section.

(B) The Main Body of the Project.
(C) The Reference Material.
The student should note that these are guidelines and not the set rules.
(A) The Preliminary Section
(i) Title and abstract: These are the most read parts of any report. This
brings the attention of the reader to the project. The title should be
precise and should reflect what the researcher has done and should
make a primary impact on the reader.
The abstract should be short (to the maximum up to 300 words). The
abstract should show the essence of the report. Readers normally make a
decision on further reading of the report based on the abstract. It
normally contains details as mentioned below:
362
REPORT WRITING
• Main motivation.
• Main design points
• Methodology
The title page should have the following details:
• Name of the topic

• The relationship of the report to the organization
• The name of the author
• The name of the organization to whom it is submitted
• The date for presentation
1. Preface: Preface should be started with a brief introduction. It may

include reasons why, in the first place the topic was selected by the
researcher. The Preface should also contain the objectives of the
research, sources of data used for the study.
2. Introduction: Most reports actually start with the introduction section.

This section should be able to answer the following questions:
a. What is the research problem? What is the background for the

research?
b. Problem statement?
c. Why it is important to solve the problem?
d. What is the current status?
e. What are the challenges in solving the problems?
f. How did the researcher attempt to resolve the problem?
g. What were the results and findings of the research?
h. The researcher’s contribution to the research project.
The brief introduction is a short and comprehensive presentation of the

rest of the report.
3. Acknowledgements: Acknowledgments are written to thank those

who have helped the researcher for various reasons.
4. Table of contents: Table of contents provides an outline of the

contents of the report. The table of contents appears after the
acknowledgments. It contains the list of titles of chapters and their
reference numbers, followed by the page number on which the chapter
363
REPORT WRITING
begins. Reference no. to subheads can be put by separating them using

semi-colons or dashes.
(B) The Main body of the Report: It is also commonly known as a

Text of the report.
This is the heart of the report and probably the largest section in the
report. The data should be described fully. It must be analyzed in details
and all the evidence resulting from the analysis should be presented. Every
relevant evidence should be supported by logical reasoning and empirical
facts. The data should be organized systematically and presented under
appropriate headings and subheadings.
• Problem statement: The researcher must start writing a text by

mentioning the problem statement in the beginning, followed by the
nature and importance of the problem with specific questions to be
answered or how its hypothesis should be tested.
• Objective of the study: A research project is carried out due to a

specific need. The researcher therefore must mention the purpose of
conducting a research.
• Review of literature: It is necessary to present a brief review of the

relevant past work. A brief summary indicating the nature and scope of
the present study and variation from the previous work already done
must be specified.
• Scope of the study: The research report must indicate the scope of the
study, pointing out the extent of coverage.
• Justification for the present study: The significance of the problem

and the contribution the researcher is expected to make and its practical
importance should be specifically indicated.
• Conceptual framework: The various concepts used in the research are

required to be explained. Definitions and important terms must be
elaborated and justified. The development of the concept and its
pertaining investigation must be elaborated well.
364
REPORT WRITING
• Methodology adopted: It describes the research design used, data

collection methods employed, sampling design and details of the
fieldwork.
• Limitations of the study: This is a very important point. The report

must point out limitations of the research project and study. All research
designs have limitations like sampling error, non-availability of data, etc.
• Technical section: This is the most important part of the main body of
the report. This involves, different sections which deal with various
aspects of the problem. This section of the report is more problem
specific and offers suggestions for the organizations. This section is
generally lengthy with many subsections. Most vital and problem specific
information flows through this section. Therefore, the researcher must
make sure the sequential flow of information to the reader.
• Results: This is part of the technical section but still holds specific
information, therefore it is treated as a separate section. The results are
usually presented in the form of tables and graphs. It is important on the
researcher’s part to explain tables and graphs. If the researcher is
presenting many results, in that case it is advisable to summarize them
in the form of points for better understanding.
• Conclusions: It consists of the summary, conclusions, suggestions and

recommendations. Findings are statements of actual information based
on the data analysis. Conclusions are answers to the questions or
acceptance/rejection of the proposed hypothesis. Suggestions are given
at the end of the report.
365
REPORT WRITING
Executive Summary:
It is a very important section of the entire report. In this section, core

aspect and findings of the entire research is presented in a manner that it
conveys what one will understand after reading the detailed report.
However, it is supposed to be not exceeding two pages.
It covers research trigger, hypothesis, brief research design, key

observations and inferences, followed by conclusive noting and based on
the nature of the report, financial or techno-economic summarization is
provided.
(C) The Reference Material
i. Bibliography: This is a list of documents, books, periodicals, websites,

referrals and manuscripts, etc. These are various data sources from
where the researcher has sought the useful information for the project.
ii. Glossary: It contains explanation of the definition of complex or

technical terms used in this project.
iii. Appendices: This is used for additional or supplementary information

which is not there in the main text. This comprises of complex tables,
raw original data, questionnaire and field interview forms. This also
covers documents such as instructions to the surveyors, specimen sheet
of statistical tests, etc.
iv. Index: The Index may be either a subject index or an author index.
The index should be prepared in an alphabetical manner. The Index
should provide reference to all important points discussed in the report.
v. Future work: This section in some cases is combined with the

conclusion section. In this section, the researcher states the aspects of
problems which were not covered under this project and the possibility
of further extensions.
366
REPORT WRITING
13.6 Precautions To Be Taken While Preparing A Research

Report
a. A research report should not be uninteresting. It should sustain the

reader’s interest till the end.
b. The Report should be long enough to cover the complete subject matter
and at the same time it shouldn’t be very lengthy.
c. A report should display originality and should necessarily be an attempt

to solve marketing research problems. It must contribute to solutions of
a problem and must add to the knowledge of the researcher. A report
should be free from grammatical mistakes.
d. A report should be able to convey the matter in the simplest manner. It

should be written in simple language and objective style.
e. The nature of the problem, study objective, methodology and analysis

techniques adopted, should be clearly stated in an introduction.
f. A report must be neat and clean. The layout of the report should be well
thought and must be appropriate in accordance with the research
objectives.
g. Appendices should be enlisted with respect to all the relevant technical

data in the report. Bibliography of sources must be given at the end of
the project.
h. A report must provide the findings in a ready manner, if the reader

wishes to quickly jump on the findings. For these purpose, statistical
tables, graphs, charts, etc. are to be used to display the various
findings.
i. Confidence limits and various constraints to the project must be stated

in the report.
j. The report must also state the policy implications relating to the
problem under consideration. It is usually desirable if the report makes
a forecast of the probable future of the subject matter.
367
REPORT WRITING
Different Ideas in Report Presentation
In today’s digitally savvy consumers, different ideas can be evolved to

present the report. Some of them could be;
a. Prezi software – It is a software which converts static presentation in

to conversational flowing images which enables you to highlight
important elements of your discussion points.
b. Story telling – Here, presentation is laid out in the form of a story.

Demands creativity and ability to plot scenarios to convey your
inferences and conclusion.
c. Animated presentation – Here, either text based or character based

animation is used to draw the attention. This approach also needs some
storytelling expertise. Either full presentation is animated or brief
message or conclusion-centric portion is animated. This is generally
presented first followed by detailed presentation
Above approaches are not exhaustive ideas as such and each one of you
can think of making your presentation innovatively so as to get the desired
attention and conclusive outcome.
13.7 Summary
A research report is used by the researcher to convey the results of the

study in a detailed manner. The report presented enables the reader to
understand the data in a most comprehensive manner and it is validated
with conclusions.
The research report is a formal account of the research process and its
outcome. The purpose of the research is to communicate the outcome of
the research project meaningfully. A report clearly explains what was
done? How it was done? And why it was done?
A key thing to keep in mind is that, the report is written to be read by

someone else. After the relevant data is analyzed and conclusions are
reached, that is when the researcher has his findings ready and he is able
to present it in the in the form of a report in front of the management. The
368
REPORT WRITING
report writing must be done in a clear and precise manner so that the
chances of misunderstanding can be minimized, if not totally eliminated.
1. A research report does not perform one of the functions mentioned

below:
(a) It provides factual information
(b) It helps further research activities in the area of research
(c) A report is completely secret and not for sharing information
2. The significant thing which a researcher must have right in the

beginning of the report is:
(a) A powerful title
(b) Attractive presentation
(c) Highlighting benefits in top page
3. The report which facilitates taking some action without waiting for the
full report is called _____________.
(a) Summary report
(b) Technical report
(c) Interim report
4. The technical report is focused to primarily address _____________.

(a) Finance department
(b) General management
(c) Technical experts/Scientists
5. A synopsis or a short summary of the report is called as

_____________.
(a) Research article
(b) Publication
(c) Abstract
6. Which of the below mentioned does not constitute to the structure of

the report?
(a) Preliminary section
(b) Main body of the text
(c) Research articles
369
REPORT WRITING
7. The exact coverage of the project report is described in the

_____________.
(a) Review of literature
(b) Conceptual framework
(c) Scope of Study
1. Explain and discuss the various types of research reports.
2. Describe the layout of a research report.
370
REPORT WRITING
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
371
MARKETING INFORMATION SYSTEM
Chapter 14
Marketing Information System
Objectives
Marketing Information System plays a very significant role in marketing

research. This system not only helps in building databases, it also helps in
enhancing the product quality, modifying product features and improving
the service quality.
• Meaning and significance of Marketing information system

• Functions of MIS
• Utility of MIS
• Role of MIS in the Marketing Department and Decision support system.
Structure:
14.1 Introduction
14.2 Meaning and Definition of MIS
14.3 Need for a Marketing Information System
14.4 Concept of Marketing Information System (MIS)
14.5 Marketing Intelligence System
14.6 Decision Support System
14.7 Summary
372
14.1 Introduction
Since the beginning of the 21st century companies across the world have
been forced to acknowledge the growing powers of customers and the
steep increase in competition, which is as a result of globalization. This has
made most of the companies to seriously think about a strategy which will
help to retain existing customers and keep the companies informed about
potential customers, market trends, marketing environment, etc.
Under these circumstances, building databases of customers, consumer

behavior research, customer perception; knowing information about all
these areas became inevitable.
Marketing Information System plays a very significant role in marketing

research. This system not only helps in building databases. It also helps in
enhancing the product quality, modifying product features and in improving
service quality.
The data is available to the company in many formats and in an

unorganized manner. Also, it receives information from various sources in
many different formats. This information coming from various places needs
to be organized and must be maintained in a structured manner. So, it can
be put to use.
These information systems are basically created to meet the needs of

clients and executive staffs. These intelligent systems stock the data of
various interactions of company personnel to the marketing environment
like customers, prospects, distributors, competitors, general public, etc.
MIS ensures that the data is sorted or segregated in a proper manner and
systematically preserved. So, it can be used by people of the organization
to make necessary decisions.
This has become a necessity, as changing times and business environment

calls for accurate and speedy supply of information to make quick decisions
in marketing.
In this particular chapter, we start by explain the meaning and definition of

MIS, followed by concept of MIS and discuss the same in detail.
373
14.2 Meaning And Definition Of MIS
A simple definition of MIS is “Management information system is

the one that supports managerial decision making by supplying
relevant information whenever it is required.”
This definition suggests that a substantial business data is stored in the

MIS-Department, and it is continuously updated. This data is supplied to
the managers when they need to make necessary decisions.
Another definition made by George Kress: “A Marketing information

system consists of people and/or Equipments, organized to provide
for the continuous, orderly collection and exchange of information
(internal and external) needed for making decisions in company’s
various activities.”
Today, with an emergence of the internet and advancement in information

technology, there is a real information explosion. Similarly, the
advancements are happening in data management systems, speedy data
transfers, data mining techniques, etc. Such a huge quantity of data is
made available and modern technology is available to manage the same, if
not incorporated correctly then the entire sources available and facilities
will go futile. Therefore, the MIS department functions completely focused
in obtaining data and storing them in a manner by which it can be made
easily available to the users of it.
In the decision making process, generally the data is required for

three different purposes:
a. Planning: This information includes the data of the type, forecasts,

sales records, economic data, and demographic profiles, social and
political information, etc.
b. Information for effective control: In order to ensure effective control

in the market, Marketers are interested in having access to weekly
reports, competitor activity reports, inventory reports. Such information
will help a marketer to know the happenings in the business and
market.
374
c. Information for creating records: In order to create a record for

product performance, territory sales trends, sales representative
records, analysis of product feature acceptances, distributor
performance records, etc. This information is purely for the purpose of
research and analysis, providing inputs to the senior management in
making decisions.
This reiterates the fact that an effective marketing information system

must be such that it is able to identify, manage, and supply the information
in all the above types of purposes as and when desired.
In many companies, the systems may consist of only sales analysis data,
which tracks the product from the manufacturer through to the distribution
chain. In other companies, it may include information about the consumers
and effects of marketing variables on the consumption of the product.
14.3 Need Of A Marketing Information System
It is beyond doubt that every organization requires a continuous and

updated flow of information for making accurate and timely marketing
decisions.
Following are the Advantages of having a Marketing Information

System:
• A system or a framework facilitates the conversion of the raw data into

meaningful information.
• The marketers’ needs to evaluate the information made available in a

structured format to interpret them and make necessary valuable
decisions.
• When a system is established then it becomes possible for a marketer or

a top management to retrieve the information as and when desired.
• A marketing system also helps to classify the information according to

the purpose such as; planning, recording, forecasting, etc. It can also be
classified in terms of- products, consumers, competition, field force, sales
volume, etc.
375
It helps in organizing and obtaining the information in an indicative

pattern, thus ensuring its covering all activities such as smooth operations,
volumes trends, past performances, etc.
The limitations of MIS are as follows:
• The company should not put too much emphasis on computerized data
generation. Human interface and face to face dialogs are also important.
• To ensure the data generated out from the system is verified and cross
checked, manually checking the system still holds as decisions are
required to be taken.
• Sometimes, voluminous data are generated from the computer, data

which holds no connection is transferred to the respective authorities.
Therefore, a manual control is sometimes necessary to be incorporated.
• Having flexible information to be supplied to all departments becomes a

task. Information required for every department will be different from
their own perspective.
• Continuous updating of system and also at the same time feeding the
information to all the departments is quite a task for managers.
• It is required to train the users of information on protocols of obtaining

the information and rules of communication, etc.
376
George Kress Model of MIS
14.4 Concept of marketing information System (MIS)
As illustrated in the above-mentioned figure is a concept of marketing

information system. The main components of the system are as below:
(a) Internal Reports.
(b) Marketing Intelligence System
(c) Analytics
a. Internal Reports: This refers to the internal reporting and accounting

system on issues such as sales, orders, invoices, etc.
b. Marketing Intelligence System: This system provides all the

information about the relevant developments in the marketing
environment.
c. Analytics: This refers to the software and computational advance

systems, techniques for analyzing data and problems statistically as well
creating data management systems.
377
The various activities carried out by MIS include: Discovery of information,

collection, collation interpretation, validation of data, filtration, storage of
data, transmission and dumping, etc.
As this is a subject of Marketing Research, it is important to inform that

Market Research is an integral component of good MIS. Besides this,
various marketing models are available for decision making. Organization
takes various decisions (strategic, control and operational) to safeguard its
interest by considering available data in the external market environment
and churning consumer specific and its market specific data from internal
records/marketing intelligence and other data through market research
duly utilized to get insights through various marketing model to take
decisions.
MIS System in a Nutshell
Various Capabilities Desired by MIS of a Company:
• System should be well equipped for the storage and retrieving of data.
• It should be able to generate standard and ad-hoc reports.
• It should be able to provide formatted analysis reports.
• It should be able to demonstrate high quality graphics.
• It should be able to integrate all the major functional components of an
MIS system.
378
The main focus of a Marketing Information System is to provide the

information (internal and external) useful in making the marketing
decisions and solving the existing marketing problems.
The external information in MIS should include: Information regarding

target markets, marketing channels, competition, marketing environment,
etc.
Since the marketing managers decision making ability entirely depends

upon information to be received from MIS and marketing research, both
the departments are needed to be flexible and efficient to provide the
necessary inputs. MIS is also connected to corporate strategic planning in a
way for projecting future businesses and providing direction to the
company.
Factors Responsible for an Effective MIS:
• Centralized system with access to information: All the information

points and components of an activity are required to be a unified and
centralized information system. The entire system should be managed as
a single window operation. This will ensure that whomsoever within the
firm wants to access the confidential and vital information can only get
authorized access to the data through the system.
• Decision Support System (DSS): The authorized personnel using the

system should be involved in some sort of decision making and should
have the right (authorization to obtain the information). Thus, the MIS
will aid in the marketing decision and also act as a control function in the
decision support system.
• Compatibility with business environment of the firm: The system

should be such that it suits the needs of the firm on account of time,
usability and updation. The MIS should not be complex and the
operational protocol must be flexible and user friendly, at the same time
the system should be fully secured.
• Flexible, economical and efficient: The system must be cost effective

that is the operating cost should not exceed the value of information. The
system should be designed in the manner, so that it can be altered in
accordance with the changing needs of the firm. The system should be
379
user oriented so that it understands the user’s needs and helps in quickly
making the data available in the requested format.
• Being selective and functionally supportive: The system must be

intelligent to evaluate the requirement of information received from
various sources and should be able to compile a data and process it
further. The system should be intelligent to highlight unnecessary data
and must have the provisions for separation, filtration, and alteration in
the data. The effective functioning of the system must have a
professionally experienced and qualified manager and technical support
backup to make sure of a smooth running operation.
14.5 Marketing Intelligence System
Marketing Intelligence is an integral part of MIS and also of the marketing

research department. Marketing Intelligence is responsible for generating
information of what is happening in the market. In the marketing function
of a company, having a good marketing intelligence is absolutely
necessary. Marketing intelligence basically provides information on changes
in the market conditions, customer desires, customer requirements,
competition strategies and activities and it uncovers unseen opportunities.
Marketing intelligence can be said to be the eyes and ears of the company.
Sometimes Marketing Intelligence is referred to as a Surveillance Unit. It
aids marketing department in making effective and timely decisions.
A Marketing intelligence system consists of two vital components.
• Customer Intelligence
• Competitor Intelligence
Customer Intelligence: This refers to a system for providing useful

information on customers. This system focuses on customer profiles,
customer preferences, customer history, past trends, loyalties. It also
incorporates personal and demographic data base including consumer
behavior, buying habits, changes in the taste, etc. Such information is very
helpful on working out advertising and promotional strategies. Such
information is generally collected by a field sales person and authenticated
by sales managers.
380
Competitor Intelligence: This system works on the core principle of

‘SWOT’. This system provides all round information on the strengths and
weaknesses of the competitor. This system is completely focused on
strategies and tactics adopted by the competitor. It keeps track of the
competitors brand loyalty, brand equity and researches on reasons behind
the competitors customer’s loyalty.
The entire information collected through marketing intelligence together

with the Marketing Information System (MIS) helps in building up a
valuable information base based on which important marketing decisions
could be taken. Thus, marketing intelligence system is a system which
keeps the user continuously informed about the information from the
market and competition activities.
14.6 DECISION SUPPORT SYSTEM (DSS)
Marketing Decision Support System: An interactive, flexible

computerized information system within the integral part of MIS, that
enables managers to obtain and manipulate information as they are
making decisions.
Database Marketing: The creation of a large computerized file of

customers’ and potential customers’ profiles, and purchase patterns.
A Decision Support System (DSS) is a computer-based information system

that supports business or organizational decision making activities. DSS
serve the management, operations and planning levels of an organization
(usually mid and higher management), and help to make decisions, which
may be rapidly changing and are not easily specified in advance
(unstructured and semi-structured decision problems). Decision support
systems can be either fully computerized, human or a combination of both.
381
DSS by its Characteristics:
1. DSS tends to be aimed at the less well structured, underspecified

problem that upper level managers typically face;
2. DSS attempts to combine the use of models or analytic techniques with

traditional data access and retrieval functions;
3. DSS specifically focuses on features which make them easy to use by

non-computer people in an interactive mode; and
4. DSS emphasizes flexibility and adaptability to accommodate changes in

the environment and the decision-making approach of the user.
DSS include knowledge-based systems. A properly designed DSS is an

interactive software-based system intended to help decision-makers
compile useful information from a combination of raw data, documents and
personal knowledge, or business models to identify and solve problems and
make decisions.
Typical information that a decision support application might

gather and present includes:
• Projected revenue figures based on product sales assumptions.
• A communication-driven DSS supports more than one person working on

a shared task; examples include integrated tools like Google Docs.
• A data-driven DSS or data-oriented DSS emphasizes access to and

manipulation of a time series of internal company data and, sometimes,
external data.
• Document-driven DSS manages, retrieves and manipulates unstructured

information in a variety of electronic formats.
• Knowledge-driven DSS provides specialized problem-solving expertise

stored as facts, rules, procedures or in similar structures.
• Model-driven DSS emphasizes access to and manipulation of a statistical,

financial, optimization or simulation model. They use data and
382
parameters provided by users to assist decision-makers in analyzing a

situation. They are not necessarily data-intensive. Dicodess is an
example of an open source model-driven DSS generator.
Three fundamental components of DSS Architecture are:
1. The database (or knowledge base),
2. The model (i.e., the decision context and user criteria), and
3. The users of the DSS.
Development Frameworks
DSS systems are not entirely different from other systems and require a
structured approach. Such a framework includes people, technology, and
the development approach.
The early framework of decision support system consists of four

phases:
a. Intelligence searching for conditions that call for a decision.
b. Design inventing, developing and analyzing possible alternative actions

of solution.
c. Choice selecting a course of action among those.
d. Implementation adopting the selected course of action in decision

situation.
DSS technology levels (of hardware and software) may include:
1. The actual application that will be used by the user. This is the part of
the application that allows the decision-maker to make decisions in a
particular problem area. The user can act upon that particular problem.
2. Generator contains hardware/software environment that allows people

to easily develop specific DSS applications. This level makes use of case
tools or systems such as Crystal, Analytica and iThink.
383
3. Tools include lower level hardware/software. DSS generators including

special languages, function libraries and linking modules.
An iterative developmental approach allows the DSS to be changed and

redesigned at various intervals. Once the system is designed, it will need to
be tested and revised where necessary for the desired outcome.
DSS components may be classified as:
1. Inputs: Factors, numbers and characteristics to analyze.
2. User Knowledge and Expertise: Inputs requiring manual analysis by

the user.
3. Outputs: Transformed data from which DSS “decisions” are generated.
4. Decisions: Results generated by the DSS based on user criteria.
DSS which perform selected cognitive decision-making functions and are

based on artificial intelligence or intelligent agent’s technologies are called
Intelligent Decision Support Systems (IDSS).
The nascent field of decision engineering treats the decision itself as an

engineered object, and applies engineering principles such as design and
quality assurance to an explicit representation of the elements that make
up a decision.
Benefits
1. Improves personal efficiency.

2. Speeds up the process of decision-making.
3. Increases organizational control.
4. Encourages exploration and discovery on the part of the decision-maker.
5. Speeds up problem solving in an organization.
6. Facilitates interpersonal communication.
7. Promotes learning or training.
8. Generates new evidence in support of a decision.
9. Creates a competitive advantage over competition.
10.Reveals new approaches to thinking about the problem space.
11.Helps automate managerial processes.
384
12.Creates Innovative ideas to speed up the performance.
DSS Characteristics and Capabilities
1. Solves semi-structured and unstructured problems.

2. Supports managers at all levels.
3. Supports individuals and groups.
4. Interdependence and sequence of decisions.
5. Supports Intelligence, design and choice.
6. Adaptable and flexible.
7. Interactive and ease of use.
8. Interactive and improved efficiency.
9. Human control of the process.
10. Ease of development by the end-user.
11. Modeling and analysis.
12. Data access.
13. Stand-alone and web-based integration.
14. Support varieties of decision processes.
15. Support varieties of decision trees.
16. Quick responses.
385
14.7 Summary
Marketing information system is a very vital department of the firm in

today’s extremely competitive environment. The Marketing information
system comprises of people, network and equipments to provide a smooth,
continuous exchange of information (internal and external needed in the
firms decision making process). Marketing decision makers require
authentic information for planning, controlling and research. The users of
MIS must be trained on system usage and should be able to make use of
information for making valuable decisions. Every firm has different needs
of market information. So, accordingly, the MIS needs to designed and also
one needs to be consider the suitability of MIS to its users.
The Marketing Information System continuously keeps a track of customer

preferences and competition activities, which it communicates back to the
marketing decision makers.
Marketing intelligence system is like an eyes-ears of any organization

enabling to timely gather information within the market. It is one of the
integral part of any MIS of an organization. Organization can capture and
compile timely available data such as monthly sale of competition, prices,
etc.
Decision Support System (DSS) is a system which uses external

environment data, internal records based data and specific data collected
through marketing research used for churning the data into analyzed
information using statistical tools and marketing models supported by IT
infrastructure.
386
1. Marketing information supports top management in making decisions

through _____________.
a. Supplying necessary relevant information in an organized manner
b. Providing primary and secondary data
c. Planning information for the future
2. Customer Intelligence is referred to as _____________.

(a) Vital customer information
(b) Vital competitor information
(c) Market information
3. A Marketing Information System continuously keeps a track of

_____________ and it communicates back to the marketing decision-
makers.
(a) Raw material price fluctuations
(b) Customer preferences and competition activities
(c) Latest in advertising techniques
4. The authorized personnel using the _____________ system should be

involved in some sort of decision-making and should have the right
(authorization to obtain the information).
(a) Management Information System
(b) Decision Support System
(c) Marketing Research System
5. This refers to the software and computational advance systems,

techniques for analyzing data and problems statistically as well creating
data management systems.
(a) MIS (b) DSS (c) Analytics
6. This refers to the internal reporting and accounting system on issues

such as sales, orders, invoices, etc.
(a) Management Report
(b) Inventory Report
(c) Internal Report
387
7. This system provides all-round information on the strengths and

weaknesses of the competitor. This system is completely focused on
strategies and tactics adopted by competitor.
(a) Competitor information intelligence
(b) Management information system
(c) Market analysis
8. The core function of a decision support system is to _____________.

(a) Provide valuable inputs to make decision.
(b) Give consolidated market information.
(c) Deliver the company’s daily activity report.
1. Design a market intelligence system for a new ice-cream manufacturer.
2. Discuss a marketing intelligence system (MIS) using a schematic

diagram.
3. How Decision Support System works in any organization and utility of

it?
388
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
389
MARKET RESEARCH IN THE DIGITAL WORLD
Chapter 15
Market Research In The Digital World
Objectives
The digital world is rapidly changing the way consumers interact with the
manufacturers of product or service provider (For beauty treatment and
plumbers, use URBAN CLAP!). Also, they use numerous electronic gadgets
like smartphones and the availability of various APPs and dynamic website
is changing customers’ touchpoints. This is also changing the way Market
Research gets planned, executed, analyzed and findings presented.
• Changing digital world

• Changing consumer buying behavior in this digital world
• Perceived threats to marketing research agencies in this digital era
• Opportunities for the marketing research firms in this digital era
Structure:
15.1 Introduction
15.2 Changes in Consumer Buying Behavior
15.3 Changing Aspect of Buying Decisions in the Digital Era
15.4 Perceived Threat to Market Research in the Digital Era
15.5 Opportunities to Market Research Firms in the Digital Era
15.6 Digitalization of Market Research Tools and Platforms
15.7 Summary
390
15.1 Introduction
The Digital world is rapidly changing the way consumers interact with the
manufacturers of product or service provider (For beauty treatment and
plumbers, use URBAN CLAP!). Also, they use numerous electronic gadgets
like smartphones, network linked home lighting system, and Alexa kind of
voice-assisted helper and more. Digitalization has also provided a platform
in terms of APP, which can be downloaded, used to know more about the
product, services, comparisons, dealer location, offers and more. Websites
have become more dynamic and interactive. As a result, the customer’s
way of buying has changed due to the change of touchpoints. This is also
changing the way Market Research gets planned, executed, analyzed and
findings presented.
With the world’s second-largest population, India also has the second-
largest digital market—and it’s booming. India's online population of 400M
is expected to hit 650M by 2020. Smartphone ownership has tripled in the
last four years alone. The government's nationwide “Digital India” push as
well as a red-hot mobile commerce sector makes this market impossible to
ignore.
“It’s a Digital world out there! Everything from TV to phone, to in-store

shopping and transportation modes, are somehow connected. The
marketing research world is no exception, and in fact must be at the heart
of it. That’s where the consumer lives. – Neilson”
Marketing needs to know consumer behavior and ‘’Why?’’ the aspect of it,
hidden in his mind, otherwise difficult to see, understood or determined.
With changes in the way the consumer is getting engaged and technology
boost, marketing research industry can’t be working successfully using the
traditional approach.
391
15.2 Changes In Consumer Buying Behavior
Digitalization and Social media has formed a universe which surrounds

consumers and influences the way they live and the buying decisions
made. Changes in social media interaction is influencing a business
direction. It is important to make note of the following three major
changes in consumer behavior influenced by social media interactions;
1. Today the new age consumer no longer looks for societal norms.
Instead, the focus is now on the self – ‘me, the niche’. It’s not about
custoMIzation; it’s custoMYzation.
2. The second reality is that the brand no longer holds the volume control
(communication based influencing) on what is being said about it.
Rather the consumer holds the networked-megaphone and is well-
heard. Studies have established that 51% of connected consumers
research products online prior to purchase, and 62% read other
consumers’ reviews before making the final acquisition.
3. Thirdly, social media and other media might seem as many and
fragmented, but in reality, they are more integrated than expected. The
conversation started on one medium will pick up immediately on
another and grow in parallel or different directions.
4. Social media listening is no longer confined to the number of likes or

forwards/re-tweet and it goes beyond simply the number of times a
consumer talks about your brand, or whether it was positive or
negative, on which platform.
It’s about understanding the messages that underlines the online

conversation in its entirety, about perception and real-life usage of the final
product beyond package instructions. Marketers, when listening to it and
understands it, product and brand strategy can take major shifts.
To further grasp the depth of change sweeping around us, the following
pointers will help you;
392
a. India’s online population has climbed past 400 million and is expected to
reach 650 million by 2020, with a projected growth rate of 30% YoY.
b. Standard keywords campaigns or in simple terms SEO based is soon

getting overpowered by fully automated dynamic search ad campaign
using machine learning. In some of the clinical but successfully launched
trials, it is found to be giving >600% discoverability and visibility.
c. 62% of Indian consumers do pre-purchase research online. Besides this,

70$ of the web-traffic comes from the smartphones (Google report).
d. Indian consumers spend 88% of their time on APPs vis-à-vis web 12%.
However, APPs essentially covers social media, entertainment and then
all other uses.
e. 53% of visitors abandon mobile sites if the download takes more than 3
seconds.
f. 90% of car buyers research online before setting foot into a dealership.
And once they’re at the dealership, 65% of car buyers will continue to
do research on their smartphones!!! 80% of car buyers use online video
as a research view.
g. Story is similar be it in retail, fashion, online purchase, finance,

insurance and more.
Understanding the consumer better remains a constant challenge.

However, data availability has changed. You gather tons of data (Reason
why BIG DATA is considered important) through numerous marketing
touchpoints, you have offered. Data in itself is not useful. If data is
converted into insights, it becomes valuable. The focus has thus shifted
from gathering tons of data to create an understanding and bridge the gap
between fuzzy gut feel and impactful action.
This change thus confirms that marketing research companies need to be

where consumers are – online instead of traditional tools like FGD, or
personal interviews, etc. In the subsequent sections, we will elaborate on
what is changing for the marketing research industry in this digital world.
393
15.3 CHANGING ASPECTS OF BUYING DECISION IN THE

DIGITAL ERA
Back to basic, marketing research is essential for business to know their

customers, offer need based products/services, mitigate risk by knowing
their changing preferences and take an informed decision. But in this
digital world, the huge amount of data is available in real time, it is the
ability to recognize the difference between behavioral analysis and
actionable insights and deliver them swiftly and smartly to the client, gives
the competitive edge to the agency.
Digitalization and Social Media has changed not only buying decision unit
(earlier family head used to take all decisions, now it may be a collective
decision or each individual take their own decision) but also the way in
which information is searched, comparisons are made, decisions are taken
and post-purchase phase is tackled.
We will now examine changing aspects of buying decision in the digital era
as follows. However, the base for this comparison is based on traditional
consumer buying decision process model, which holds true even today.
Consumer Buying Decision process has 5 stages namely: (1) Problem
recognition, (2) Information seeking, (3) Evaluation of alternatives, (4)
Buying decision and (5) Post-purchase evaluation.
394
Sr. Traditional Buying Decision Process Digital Era Buying Decision

No. Process
1 Problem Recognition: Problem Recognition:

Most severe and most common problems Consumers personal, un-attended or
are recognized as need, which will enable latent needs are recognized as an
the development of a product appealing opportunity and thus, consumers,
to the masses. Thus, consumers have when recognizes his problem, needs to
limited choice when product is made look around for a solution.
available. So many mediums both static and
Limited media was available for online are available, through which
communication and it was controlled (the relevant individuals get engaged and
adult magazine was not available to exposed to communication, which
teenagers), thus many couldn’t even allows an individual to recognize that
recognize their problem, thus no need. there is a solution available to his
nagging issue – hair remover cream.
2 Information Seeking: Information Seeking:
Individual needed to talk to friends, Every kind of product information is
relatives, visit shops, ask the existing available on the web or downloads be
users to get more information. it features, 360 degree view,
comparisons, users views and ranking.
All these info can be searched and
seen through your smartphones!
3 Evaluation of Alternatives: Evaluation of Alternatives:

In a controlled economic era of pre- In a net-free, digitalized and highly
digitalization open to competition era, competitive economy, numerous
available alternatives were still limited options are available to evaluate.
Also, limited options were available to You can check website, see pictures
evaluate the product – actual demo or from different angles, watch live
free samples or home demo or test rides product/demo videos, refer features
(at showroom for cars), 14 days risk-free and its use, compare different
trial and return policy. products, learn about new features,
Visit to the authorized shops/showroom read reviews from an expert, existing
was still considered as a mandatory stage users, check ratings, see available
for the evaluation of alternatives other options, substitutes, bundle
packs and more all through your
smartphones.
Visit to the shops/showroom is no
longer mandatory including for cars.
395
4 Buying Decision: Buying Decision:

Post evaluation, the final buying decision Post product evaluation, buying
is taken, considering affordability, decision are taken considering non-
availability of cash. Later, loans were product factors, such as schemes,
made available but the process was still convenience, the comfort of purchase,
tedious. loan availability w/o hassle, payment
The decision also was taking into account options offered.
brand equity, shop keeper reputation, Decisions are taken based on social
pre-decision support rendered. media ratings, the voice of the
consumers, who can offer hassle-free
purchase experience with the 2-minute
loan approval or flexible online mode
of payment.
5 Post-purchase Evaluation: Post-purchase Evaluation:

Warranty support was available at the The place from where you purchased
showroom, followed by the trend of your product may not service you.
exclusive service support number and Customers were directly linked to a
escalation aligned, and companies toll-free number and thus can directly
followed well laid down process. seek the support.
Limited focus on product disposal when Various exchange modalities available
life was over. to dispose of the product before
Customers feedbacks were obtained in a buying a new – exchange offer is one
structured manner followed by the onset example.
of syndicated research. Intensive focus on seeking customer
Customers had the limited choice to raise feedback.
his voice. Customer can raise voice on any and
every social media.
Changes in the digital era can be also summarized as follows;
1. Digital assets (smartphones, laptop, TABs, etc.) have become a tool to

help the consumer buy.
2. Customers’ dependency on manufacturer/distributor/showroom for

product info, comparisons, trial, test ride has dramatically changed and
extensively digitalized.
3. Instead of brand communication, brand engagement is crucial. More so,

this step has gone one stop ahead of where shoppers’ experience is
thought about.
4. Brand equity/loyalty has lost its significance to consumers need for

convenience, comfort, finance and payment modalities flexibility
available.
396
5. Channel of distribution is changing from physical store to online to

future of Omni-channels being considered.
6. Brand’s ability to associate with all the stakeholders as well as finance

and payment hubs matters. Earlier, the consumer has to go from pillars
to post for evaluating a product, arrange finance. loan, service. Today,
everything needs to be seamlessly arranged by the brand, else you lose
preference, even if the customer is more keen to buy your brand.
Thus, in short, the following aspects have undergone drastic changes;

1. Basic purchase decision
2. Brand purchase decision
3. Channel purchase decision
4. Payment purchase decision
It is now convenient for anyone to accept that consumer behavior has

changed in the digital era, thus marketing research also needs to embrace
the change and re-orient the way they function.
15.4 PERCEIVED THREAT TO MARKET RESEARCH IN THE

DIGITAL ERA
Availability of plenty of secondary information/data sources, and inclusion

of digitalization in the buying process by product manufacturers and
service providers, the traditional approach to marketing research is no-
longer found to be necessary. Does that mean marketing research is not
necessary? The answer is that marketing research is important but the way
it is done has changed. Thus the real threat is not about the continuation
of marketing research but it’s to the organization in the business of
marketing research, and if they don’t understand this, their existence is at
the stake.
Why today’s smart marketing enterprise will not go to the traditional

marketing research organization? Key three perceived threats are given
below;
397
1. Digital data analysis is needed, less of market research: Voice of

the customers’ type market studies has lost value as Digital savvy
enterprises know exactly their customer behavior, and do not need to
actually survey them. It takes a few clicks for a product manager to
know their customer behavior: how the customer interact with the
products, what does he likes and don’t like, how much is he willing to
pay. This data can be collected directly by the company digging into
their backend system or by plugging third party system. You can create
your website heat map view and analyze your customers segment and
perform advanced customer behavior queries. Similarly, some mobile
Application tracking systems helps track all in-app behavior. When it
comes to the TV screen, the new platforms such as Netflix are doing a
much better job at tracking real-time audience and viewer’s behavior
than traditional TRP based tracking system.
Hence, you do not need to ask market Research company what the
customer do and feel.
2. Prospective research is all about statistic and digital businesses

are great at statistics: Analyzing historical data to predict future
behavior has long been the job of statisticians using complex models
ensuring unbiased forecasts…that seldom materialized. In the digital
world, the future is now and we can question it on the spot. Based on
current customer behavior, digital companies can tweak their product
instantly and rapidly reckon if their prediction were correct or not.
Continuous iteration allows seeking for the optimal product strategy
without the need for Market Research firm. In this area as well, off-the-
shelf software exists in order to conduct A/B or multivariable testing on
web pages.
Walmart probably epitomizes the threat that well managed digital

businesses pose to the Market Research Industry. Walmart knows all
information they need about prospects and customers (maybe even
more data than only what they need) and Walmart collect a massive
amount of data across tons of verticals that can be aggregated and
segmented to predict behavior. Specifically, Walmart periodically
analyzes user-browsing histories to identify correlations between
purchases, viewing events or other actions performed with respect to
particular products. As a result, Walmart can recommend the best
products to their visitors, using only their internal data. Walmart
398
produces different kind of bills/receipts for their consumers based on

analyzed data, i.e., if your sister has delivered a baby and you bought
J&J’s Baby Oil, later baby toy, then your bill will show you images of baby
range, offers on baby products range, etc.!!!
Note that there’s no mention here of “social data” or other “big data” to
make market research irrelevant. Simply mentioning internal data
combined with smart analytical tools.
3. Digital marketing savvy companies trust their budget with

digital data analytic capable company, thereby turning pure
software company into new Market Research Leaders: The digital
world started offering immense support to churn internal data into
meaningful analysis. Do you need research about the web? Turn to SEO
data company get instant and accurate data. You need research about
the Mobile application market? Turn to mobile analytics companies to
deep into the behavioral data. You need research about Facebook app
ecosystem? Visit specialist data provider and gain access to your
favourite social network trends.
Market Research in the digital world is about automatic data collection

and analytics. Most of traditional Market Research companies did not
invest in this area or did not provide the right ecosystem to attract
relevant talent to build these products.
399
15.5 OPPORTUNITIES TO MARKET RESEARCH FIRMS IN

THE DIGITAL ERA
Market research companies must first accept that there is a threat to their
existence if they do not adapt themselves to offer new age digital
marketing research design and tools to collect and analyze the data. Smart
market research companies could use the above threats at their
advantage. Key trends that we believe will emerge in the near future:
1. Market Research company will have to be the digital software-

cum-insights company: Market Research Company will need to
become digital technological savvy companies or else build a strong
partnership with such a company. It will help them to remain at the
forefront of being considered whenever, wherever marketers need to
understand consumer behavior. It will help them to not only take up
backend task of receiving and analyzing tons of data but be looked upon
as company rendering actionable insights for successful marketing
decision.
2. Market Research company will become consultancy: Most software

doesn’t provide directly actionable recommendation for brands. The
smart and digital technology savvy market research company add
expertise to analyze the information and generate insights for the brand
marketers. Based on tons of data generated, and analyzed using the
advance software, creating meaningful insights is only an individual can
do. Thus, from their earlier role of merely analysis data, finding
conclusions and leave the decision making to the client, today
marketing research companies will have to work as consultant owning
responsibilities for delivering credible and actionable brand, behavioral
insights, yielding positive results.
3. Primary the market for market research will be… mobility:

However large is the digital sector, brick and mortar companies are here
to stay. People will still buy at retailers, supermarkets and coffee shops,
go entertain, travel, visit their banks and local brokers. Traditional
customers of Market Research will never be able to only rely on their
Facebook page to understand and anticipate their customer’s needs.
Where software is not available, market research should be. What is
anticipated is that brick and mortar shops will collectively come together
and allow brands to add kiosks and tablets at all point of interaction with
400
their customers. Offline businesses will then be able to instantly and

globally collect relevant customer data. This may prove a chance to
regain a trusted position for those marketing research companies
investing in the right technologies. Interesting data collection methods
can be considered like smiley, stickers to rate product choices, range,
price, convenience, satisfaction, etc.
4. Face-to-face survey will still exist, but empowered by mobile:

Market Research companies focusing on the distribution sectors,
performing mystery shopping and retail audit works, have already taken
advantage of rugged devices. They scan the barcode at light speed and
report key data instantly. The ubiquity and power of smartphones will
spread the use of mobile devices to almost all onsite research. Simple
customer satisfaction surveys delivered at the point of interaction,
whether it is through the customer smartphone or the brand’s screen,
will be the norm. Brands will monitor instantly and in real time customer
happiness in the offline world. Customers will retain control of when and
how much they want to share when interacting with a brand. Here also
smart marketing research companies can introduce engaging ways to
extract the information, gamify the research data collection and more
such ideas.
5. CAPI (Computer Assisted Personal Interviews) will be mobile

only: The relative use of phone, mail or email method to conduct
interviews is bound to diminish as those intrusive and easy to reject
methods are becoming less and less efficient. Direct, face-to-face,
methods with the use of tablet and mobile will probably be cheaper and
bring higher responses rate. Several survey apps already flourishes on
the market. Market Research Company will need to adopt a Mobile First
strategy in developed countries and even Mobile only strategy in an
emerging market.
401
15.6 DIGITALIZATION OF MARKET RESEARCH TOOLS AND

PLATFORMS
It will be worthwhile to understand how digitalization is also helping market

research by offering smart tools and analysis platform. It’s the sheer
affinity to refuse their existence, power and ignorance can only adversely
hamper the growth of market research companies. Following table will give
you an overview. However, it is not exhaustive in nature.
Sr.
MR Activity Digitalized Tool Available
No.
1 Questionnaire Google Form, Survey Monkey
2 Statistical analysis Many
3 Specific statistical analysis like MDS Many
4 Website heat map Crazy Egg
5 View and analyze your web Kiss Metrics

customers
6 Web advertisement tracking Vizu
7 Web ranking Alexa, Google
8 Advance customer behavior Google Analytics
9 Mobile Application tracking Flurry Analytics, Caaptian
10 TV Screen analysis Hulu, Netflix, Apple
11 Mobile Analytics App Annie, Distimo
12 Facebook, Instagram App AppData

ecosystem data
13 Presentation Prezi, Tableau
14 In-house research
(a) Tactics, and macro insights Think With Google – Macro-level

consumer behavioral trends and
more
402
(b) Questionnaire design-cum- Google Form, Survey Monkey

ready analysis
(c) Secondary date – It needs Qlik Datamarket

numerous data such as
demographics, population,
currencies, international business,
economic indicators,
(d) Dynamic questionnaire – it Power Probe and Power Code

helps you to move away from the
standard online questionnaire and
allows you to construct it in a way
that respondents can give their
unfettered views and processes it
to give you meaningful outcome.
(e) Listening to your brand One Engagement Hub

interaction – you often felt a need
to have a tool that is designed to
work with your existing research
system to ‘’listen’ to customer as
they interact with your brand, It
offers direct feedback allowing
business to learn from every
interaction.
Based on the above limited facts, one can still agree that digitalization is
also helping market research function. One needs to adapt to its usage and
add abilities to generate insights to differentiate your organization.
403
15.7 Summary
Digitalization has changed the way the consumer interacts with brands and
buy products of their choices. Buying values has changed. Buying tools
have changed. In such a scenario, marketing research organizations’ also
face a challenge for their survival.
Perceived threats for marketing organization comes from digitalization and

different breeds of digital data analysis companies have emerged, reliance
on them is rapidly growing This has shifted the plain against market
research companies as software companies are approached first to
understand their consumer behavioral trend instead of marketing research
firms.
Market research agencies will have to become tech-savvy and bring the
capability to develop actionable insights from the tons of data and
information being produced. MR agencies need to get into the consultant/
experts role and help the marketer to take an insightful, actionable
successful decision. They need to bring in digitalization based changes in
the way exiting traditional approach to marketing research practiced by
them.
404
15.8 SELF ASSESSMENT QUESTIONS
1. Digitalization and Social media has formed a universe which surrounds

consumers, and influences the way they live and the _____________.
(a) Brand preference is decided
(b) Consumer preference influenced
(c) The buying decision is made
2. Understanding the consumer better remains a constant challenge.

However, data availability has changed. You gather tons of data through
numerous marketing touchpoints you have offered. Data in itself is not
useful. Data needs to be converted ________.
(a) In to insights
(b) In to graphical representation
(c) In to marketing plan
3. Among the numerous threats posed to traditional marketing research

due to digitalization, one such threat is that _______________ is
needed more than market research.
(a) More touchpoints
(b) Digital data analysis
(c) Digital facts
4. Digital marketing savvy companies trust their budget with

____________.
(a) Software development company
(b) Traditional market research company
(c) Digital data analytics company
5. Brick and mortar shops will collectively come together and allow brands
to add kiosks and tablets at all point of interaction with their customers.
Offline businesses will then be able to instantly and globally collect
relevant customer data. Primary market for Market Research will be
_______________.
(a) Mobility
(b) Kiosk
(c) Online
405
Activities for Students:
1. Write 5 consumer buying trends you have noticed which has changed
the way products are purchased by you vis-à-vis 10 years back.
2. List two threats faced by the marketing research companies due to

extensive digitalization.
3. What will be your expert advice to prevent the closure of the marketing
research firm, where you are currently employed?
Ascribe Surveys Launches Insights Platform with Sample Powered

by Google Surveys
Ascribe recently launched Ascribe Surveys, powered by Google Surveys, to

deliver a robust, efficient and cost-effective means to reach consumers
around the world, as well as collect and analyze their feedback.
Integrated within the Ascribe Intelligence platform, which combines an

easy-to-use survey tool with advanced verbatim analysis techniques, it
enables market researchers to reveal immediate insights from customer
feedback and allows them to make better, more-informed decisions
through a deeper understanding of their customers and markets. Users
gain valuable business insights through consumer-centric research,
including:
• Pre-test a marketing campaign;

• Prioritize new product initiatives;
• Gauge a reaction about a recent event; and
• Track brand awareness.
With expanded panel-targeting capabilities that provide access to validated

samples in key markets, including the United States, Australia, Brazil,
Canada, Germany, Italy, Japan, Mexico, Netherlands, Spain and United
Kingdom, Ascribe Surveys is one powerful insights platform.
406
Ascribe Surveys addresses the industry need for shorter, mobile-enabled

surveys. Consumers want to give feedback on their terms, which can often
include an aversion to long surveys and an on-the-go approach. They
simply want to type or say their feedback and move on, and they have an
expectation that the company providing the product/service will take action
based on their comments.
“This new insights platform accommodates a scope of research activity that

is virtually unheard of,” says Ascribe CEO, Rick Kieser. “Market researchers
can now seamlessly tap the power of Google’s validated global sample
combined with an easy-to-use survey tool and advanced verbatim analytics
– no other product can do this today with a single login.”
Ascribe Surveys and Ascribe Intelligence are SaaS-based online tools that
are available now to researchers across the world.
Source: Adapted from www.ascribesurveys.com or goascribe.com
407
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
408
NEW AGE APPLICATIONS OF MARKETING RESEARCH
Chapter 16
New Age Applications Of Marketing
Research
Objectives
With exposure one individual gets, it has impacted the way they desire
things, and changes in their buying behavior. Marketers were thus facing a
daunting task to understanding and engaging with their customers better.
Market Research industry has evolved and developed new-age application
of market research to help marketers. Thus, our objective is to understand
new age applications of market research in the marketing arena.
• Changes that drive consumers buying decision
• Changing applications of marketing research
Structure:
16.1 Introduction
16.2 New-age Applications of Marketing Research
16.3 Summary
409
16.1 Introduction
With the opening of the world due to web connectivity, mass proliferation
of social media and ease with which pictures/videos can be made (Tik-Tok
being a recent example), it has been noticed at the world-wide scale that
individuals relationship with himself, family, peers, friends, relatives and
so-called social friends have changed dramatically. It has impacted the way
they desire things, what they value or not value, the influence of groups.
Social circle on them and change in their buying behavior. Marketers were
thus facing a daunting task to understanding and engaging with their
customers better. Market Research industry has evolved and developed
new age application of market research to help marketers.
In traditional days, your mother-father may have done shopping for daily
routine items from general stores nearby, grocery from the family grocery
shop, cloths from well-known cloth retailers of their era, gold from the
family goldsmith, the family used to have single brand and types of tooth
paste, cloths getting tailored from a common tailor. Today, you go to malls
to buy things, you go to supermarkets for grocery and vegetable purchase,
gold you buy from branded stores like Titan, Kalyan Jewellers, plenty of
standardized items from online stores. In such a changing scenario,
challenges before the marketers were to know, who is the decision-maker,
does display prompt purchase, how does shopper goes about deciding what
to but, what note to buy, from where to buy based on the sources of inputs
received from where and more. Market research has oriented itself to find
and apply new age formats, methods or modify traditional methods using
new-age tools.
In this chapter, we will cover new-age applications of marketing research.
410
16.2 NEW-AGE APPLICATIONS OF MARKETING RESEARCH
New-age applications of marketing research need to be looked at from two

different angles;
1. Traditional methods using digital tools
2. New marketing research formats developed and used
We will touch upon the above two areas below. However, emphasis will be
more on new formats developed and used in new-age marketing research.
1. Traditional Methods using Digital Tools:
Interviews: Today, you have a very practical tool of developing a smart

questionnaire and sending its link to target either through email, mobile or
an APP wherein recipients are encouraged to participate as it is simple,
easy to answer and consumes minimal time. Tools like Google Form,
Survey Monkey are some of the examples.
There are advantages like: (a) ease of development, (b) ease of sending,
(c) ease of sharing/forwarding, (d) easy to open and fill, (e) can be filled
any time thus consumes the less precious time of the respondent and (f)
allows the backend flexibilities – you may download as excel, or get
standard tables and graphs.
There are limitations as well like: (a) questionnaire can be developed using
flexibility given,(b) questionnaire can get lost/ignored, (c) no explanations/
clarity possible and (d) no callback/verification call possible.
Standardized Questionnaire Format: Earlier standardized formats were

placed at the relevant place to get the attention (in hotels it is kept on your
bed to draw your attention, at the restaurant, it is kept on your dining
table, at shops near cash counters). Today, either you get a link on your
email, which takes you to the microsite on which you can fill your
feedback, or you get a link on your smart phone which allows you to open
a questionnaire either on Google Form or Survey Monkey and you can fill
the same easily.
411
Focus Group Discussion: Earlier, FGD needed pre-planning and venue

with set up needs for videography or recording, etc. Today, using various
group video calling modes, it is feasible to conduct FGD. On internet there
are tools like Skype, Webex, hangout and others on which one can present
things, show videos and speak with each other at the convenience of being
at your home/office, etc.
There are advantages like: (a) Geographical limitation is removed, (b)

respondent is more at ease because he is in his most comfortable zone, (c)
time flexibility is possible and, (d) more FGD can simultaneously take place
and (e) video/audio recording does not need additional preparations.
There are limitations like: (a) network bandwidth issues, especially in the
remote areas, (b) Moderation is difficult as too much of interference by the
moderator may put-off participants and (c) all respondents may not be
comfortable for discussion on video formats.
Retailer Audit: In traditional days, retailers on panel, will provide data

like opening inventory stock and closing inventory stock at the end of every
month. Now digital tools are automating it to the great extent. Once the
retailer agrees to be a panel member, he uploads inventory on a microsite
or an APP, he later issues challan which is made using bar code. These data
gets accessed by the research agency. At the month end, the closing
balance of inventory is given. Most of the manual intervention in doing this
kind of audit is replaced by digital tools, making it faster, and error free.
Research agency will have data of retailers from where marketers product
is being purchased, we also have data of your competitors being sold at
those retailers. This way, we evaluate the sales trend and competitiveness
of your brand or product in those retail shops and accordingly you get real-
time insight. Using this insight, you can improve the performance trends to
identify the loss.
All the changes in the traditional way of doing marketing research using
digital tools are not covered as the focus is on explaining you the second
part, i.e., new format developed and used in today’s marketing research.
412
2. New Marketing Research Formats Developed and Used
New age marketing research formats have been evolved to study consumer
behavior not in a qualitative manner but in a quantifiable formats. Earlier,
you needed qualitative formats used and you needed, experts like a
psychologist to review, analyze and give you conclusive findings.
Today, marketers are constantly trying to make buying journey the

experience led, digitally enabled and create real-life, people-centric brand
and retail experience to unlock the value across the entire purchase
decision journey.
Consumers are living in an experience economy – spending less on things

and more on things to do. Consumers’ wants dynamic experience and thus
it is an opportunity for the brand to deepen human relationships and
convert that connection into action and sales.
To make the above journey come alive, marketers want to know consumer
before he starts his purchase consideration, during the buying cycle and
post-purchase cycle. Not only this, he wants to keep studying identified
consumer profile to understand them better and translate this
understanding for future marketing initiatives. At all these stages,
marketing research has evolved standard or proprietary models to gather
data and convert it into insightful, actionable finding. You are provided with
the exposure to some of these new age applications of marketing research.
Purchase Phased Flow Journey Module: The Purchase Phased Flow

Journey marketing research reveals the journeys people go on, the steps
they take, how and why their behaviour changes over time; connecting the
dots to reveal patterns in behaviour and the pivotal points of influence
along the way.
Marketing Research firms have developed proprietary modules to help

marketers to understand how consumer progresses in his 5 phases of
buying process in a phased manner, doing what, using what, preferring
what, what makes them buy, trigger for purchase, when and where they
buy from. Marketing research firm work in sync with marketers and align
them with various tools (web, chat, calls centre toll free calls, APP
download and more), set periodicity for data collection, post which they
413
churn large data to bring insights/refine existing insights and derive

actionable inputs for marketers.
The advantage for the marketing research firm is that they are able to
express themselves as the subject matter expert and thoughtful derivation
of actionable insights make them relevant and digital service providers
come under their umbrella and thus does not take away opportunity
available.
Physical Retail Catalyst Module: Against the contrary belief, physical

retail is not dead. Despite the e-commerce boom, bricks-and-mortar stores
will still account for over 80% of global retail sales in 2021 (eMarketer/
Statista). You may notice that many online successful businesses have
entered the brick & mortar business model, e.g., Lenskart.
However, retail must evolve almost 360-degree. Retail shall become part of
the overall digitalized omni-channel experience as well as on-site unique
pre-purchase, selection and share experience. Exploiting its unique ability
of physical interaction and leveraging technology to enhance the
experience.
Marketers are thus keen to understand both shoppers’ needs and retailers
seeking to serve them. Marketing research firms have developed their
proprietary modules to offer marketers this desired understanding to
create experiences that engage people in relevant, meaningful ways,
compelling them to act.
Marketing research firm uses various tools in their research design. Some
of this could be traditional tools like customer satisfaction survey among
the customers leaving the store vis-à-vis placing observer, or camera to
track eyes and more.
Each marketing research firms may have their own names given but
essentially marketing research solutions will cover: (a) Shoppers
engagement, (b) Buying approach and buying decision, (c) Display/Shelf
selection cues, (d) In-shop purchase experience, (e) Brand displays and its
impact and (f) Problem recognition and info search cues and more specific
research module which will help marketers create engaging experiences
that increase conversion in physical retail.
414
Omni-channel Go to Market Research: E-commerce purchases are

growing phenomenally, providing new opportunities for growth. But online
behaviour should not be viewed in isolation. Omni-channel is a new reality,
and this shoppers are more valuable, thus needs encapsulating approach
to understand them.
Omni-channel structuring a complex challenge for any marketers. It

envisages different technology and its consolidation. While marketers are
working on setting up to create omni-channel purchase and service
experience, marketing research agencies are offering the capability and
resources to provide end-to-end digital shopper profiling, behavioural traits
and influence of buying behavior and related marketing research services
from foundation to transformation.
Marketing research agencies are offering services like (not an exhaustive

list) (a) Omni-channel journey mapping and analysis (b) User experience
and design (c) Retailer insights (d) offer that triggers (e) shopper
activation and retention and more insights generating research module/s
that will accelerate growth in marketers omni-channel marketing growth
strategy.
Shopping and Browsing Market Research: Shopping and Browsing

marketing survey connects brands with verified online shoppers, who have
agreed to be a part of a shopping and browsing research panel.
Researchers can have shoppers live over a video call and the shopper
shares their mobile screen and do an actual or mock purchase of a product.
Browsing research helps to understand the navigation/search behavior and

shopping research is a great tool to discover the ‘’Path to Purchase’’ for a
product: What are the underlying factors that determine what shoppers
purchase online and how these purchases are carried out? And similar such
hidden considerations are revealed using this technique.
Purchase Portfolio Analytics: Appropriate for malls, large branded

stores (shoppers stop) where lakhs of uploaded bills can get categorized
according to their categories and sub-categories. Using this data, the
marketing research firm can tell during each day of week and month of the
year, which product can go together with which items. Also, the purchase
pattern based on Age, Gender, Location and SEC.
415
Market research agency also helps it to understand the up-sell opportunity

for other categories of your own brand along with any existing product or
service. Through additional random, sampling of individuals demographic if
captured, it can identify which profile of consumer doing which nature of
products purchase, triggers for purchase and certain aspects of buying
behavior, which can be used by marketers to develop promotion, offer,
engagement, etc. to have needs triggered into buying decision.
Consumption Tracking: It is like an old wine in a new bottle but with the
advent of digital tools/APPS, it is possible to tap these data from a large
consumer base (maybe incentivized). Marketing research agency can help
marketers get the insight of consumers product consumption based on
user's age, gender, city, SEC, day/month/season, etc. Also, over a period,
data can be used to develop insights about the correct target audience and
who all are your consumers, demographic profile, buying behavior, etc.
Marketing research agency will have to develop a panel of consumers

across a large geographical area, provide them with tool/APP and train
them to record their consumption. At the backend, the program will collate
data and derive desired findings.
Purchase Tracking: Here, purchases of people are tracked. It can identify

the channel on which your brand is prominent and location in which that
channel is popular to help you market it to correct audience and increase
sales accordingly.
Advertising and Communication Research: Any and every marketing

individual’s weakest moments are when they are ready to release their
advertising or marketing communication – Will my ad end up making the
necessary impact? Will my communique cut the clutter in the market and
establish your brand? Communication pre-testing and post-testing is a key
input for evaluating whether an advertising campaign will be effective and
achieve its objectives or to measure its in-market impact.
Advertising and Communication Research is a marketing research model in

which a communications testing and evaluation methodology is built in
such a way that it will allow clients to assess whether their campaign can
create a point of differentiation for their brand and, more importantly,
understand how they can increase the effectiveness of their ads prior to
416
launching them. Approach is a 360-degree approach and covers print, TV,

digital content to gauge the impact.
Tracking Studies: This is a kind of Brand Tracking study and answers

numerous questions which helps you to determine the effectiveness of your
initiatives. Marketers often face questions like, what is the ROI of my
investment in marketing activities and campaigns, was my promotion
successful, do consumers notice my brand on the shelf, are my customers
satisfied with the performance of my products, how did my brand
perceptions change after my campaign launch and was it due to the
communication, what are my competitors doing, do consumers notice their
activities more than mine. Implementing a tracking study, a marketer can
find suitable answers to their questions.
Marketing research companies offer these services, utilizing their online

capabilities and field presence. It is generally done in the form of a dip-
stick survey, before and after specific planned initiatives.
Usage and Attitude Studies: For any marketer, it is essential to have a

primary understanding of the consumer about his/her behavior and
attitudes to the category as well as to its products and brands. A Usage
and Attitude study helps set an initial context of the category which could
form the basis of deeper investigation on specific topics, idea generation
and future strategies on communication and product development.
Today, marketing research firms apply and use different research design
and use digital tools to gauge attitude and usage pattern, changes in
attitude and its impact on usage, what are the triggers that shape
individuals attitude and likewise.
Few marketing research agencies also conduct benchmark studies on many

categories which enhance sectoral knowledge as well as provide the
marketer with a more powerful perspective of the consumer and his/her
needs and desires.
Customer Satisfaction/Loyalty Measurement Studies: Customers’

satisfaction is the primary aim of every company, and hence it is
imperative to focus precisely on its customers’ experiences and service
them. The customer loyalty programs are an integral module of the
organization having its strong link with overall satisfaction and retention.
417
More and more organizations are moving towards the continuous

measurement of Customer Satisfaction surveys due to the turbulent and
dynamic marketing environment. Continuous measurement recognizes the
importance of customer satisfaction and is not influenced by momentary
events (good or bad). It covers two areas namely – Sales and After-sales.
A robust approach to touch point evaluation is undertaken my marketing

research organization, most have their own proprietary tool which
measures the current satisfaction levels, brand advocacy and competitive
advantages over the others. Our expertise can help brands to understand
the strengths for leverage, discover priorities of quality, compare
performances with the competition and understand white spaces or new
opportunities. When you do this continuously over a long period, you get a
comparative perspective which provides you with an insights about where
have you improved, where have you slipped, which initiative of yours
yielding favorable traction with the customers and which is getting
avoided/disliked by the customers.
Market research organizations have brought in numerous technological and

digital tools interventions in to its execution. Different formats like quick,
short close-ended questions based survey either through email or SMS or
an APP. It can be done once a year or on a continuous basis.
We have covered a few new age application of marketing research. This is

not exhaustive in nature but sufficient enough for all of you to realize that
the digital era is changing the way consumer behaves and how his buying
behavior is changing. Marketing research organization have either included
technology bandwidth in the existing models or they have developed
proprietary modules to address new age challenges, integrated technology
in it and experienced mind working on it, which brings out actionable
insights for marketers.
418
16.3 Summary
Rapid digitalization and exposure of consumers to various trends through

digital mediums like website, mobile and computers, are changing the way
they go about their problem recognition, information searches and final
purchase behavior.
Marketing research one hand was threatened by digital and software

companies churning a large amount of data and providing the marketing
team with actionable insights. To face and maintain its stature as service
which can look within the depth and width of data, information, apply
subject matter expertise and develop actionable insights to get desired
marketing results, marketing research organization have not only: (1) used
digital technology in existing market research modules as well as (2)
Developed new and more dynamic new approach based modules which
uses different capabilities to get prompt, timely and accurate result. Some
of these new age modules are used as the new age marketing application
of marketing research.
419
16.4 SELF-ASSESSMENT QUESTIONS
1. Tools like Google Form, Survey Monkey are some of the examples of
interview management. There are advantages like: (a) ease of
development, (b) ease of sending and (c) ___________.
(a) Allows backend flexibilities
(b) Get executed free of cost
(c) Allows free expression of views
2. Today, marketers are constantly trying to make buying journey

experience led, _____________ and create real-life, people-centric
brand and retail experience to unlock the value you have offered.
(a) Website enabled
(b) Wi-Fi enabled
(c) Digitally enabled
3. Today, consumers’ wants ____________ and thus it’s an opportunity for

the brand to deepen human relationships and convert that connection
into action and sales.
(a) Offers and discounts
(b) Dynamic experience
(c) Mobile APPs
4. The ___________ marketing research reveals the journeys people go

on, the steps they take, how and why their behaviour changes over
time; connecting the dots to reveal patterns in behavior and the pivotal
points of influence along the way.
(a) Software development company
(b) Usage and attitude studies
(c) Purchase Phased Flow journey
5. Communication pre-testing and post-testing is one of the new age

marketing application covered under ____________
(a) Advertising and communication research
(b) Customer satisfaction survey
(c) Consumption tracking
420
1. Highlight two different angles to look at the new age marketing

applications and explain them in brief.
2. List four traditional yet new age marketing application which uses digital
tools to conduct marketing research. Explain any two.
3. List new-age marketing application of marketing research used by

marketers? Explain any two.
421
Nielsen Consumer Neuroscience: Taking the Guesswork Out of

Creative
Creating a successful advertisement is complex. It requires the right

ingredients, including the right creative, the right audience and the right
media. Without these elements working together, a campaign isn’t likely to
succeed. Despite progress using modern tools for campaigns, evaluating
creative is only beginning to thrive.
Our understanding of the brain has grown exponentially over recent years.
Leveraging this understanding, Nielsen Consumer Neuroscience’s Video Ad
Explorer (VAE) delivers the most comprehensive understanding of
consumer response, evaluating non-conscious processing of attention,
emotion and memory – thereby capturing insights we may otherwise miss
with self-report alone.
VAE integrates a complete suite of neuroscience technologies, including

EEG, biometrics, facial coding and eye-tracking – combined with self-report
– to allow clients to pinpoint areas within a creative execution for
optimization and compression with second-by-second granularity.
We don’t think of ourselves as ad testers, we’re ad builders, collaborating

with brand teams to keep what’s great and to improve upon what’s not.
And we’ve shown that it works. In a major validation study, in collaboration
with Nielsen Catalina Solutions and CBS, we tested 60 CPG ads from 20
different product categories. The study showed that the integration of
multiple neuroscience measures results in up to 77% explanatory power of
in-store sales – and adding self-report explains up to 84% – providing
marketers with unprecedented research potential.
Source: Adapted from www.nielsen.com/consumerneuroscience
422
Mobile Virtual Aisle Offers Virtual Shopping Experience
Informed Decisions Group’s Mobile Virtual Aisle is an in-store experience

that enables life-sized, in-context learning while being portable to
anywhere in the world. Shelves, aisles and entire stores can be created for
testing. Using our mobile eye-tracking and qualitative interviews, IDG can
extract immediate insights from shoppers’ interactions with the aisle.
By integrating quantitative data from IDG’s mobile eye-tracking or

interactive volumetric conjoint with qualitative insights from post-shop
interviews, concise and effective category decisions can be made quickly
and with full confidence.
The Mobile Virtual Aisle can be leveraged to test and optimize packaging,
planograms and signage in a life-sized real-world environment. Informed
Decisions Group can also leverage the Mobile Virtual Aisle for life-sized,
interactive conjoint research yielding a more realistic exercise than on a
computer monitor.
This is a 4K, high-resolution, rear-projection system that produces digital

images with cinematic reality and color quality. The rear-projection screen
surface uses a resolution of 4096 × 2400 and produces a minimum of 33.3
pixels per inch. The image reproduction of this system displays realistic
shelf sets for virtual shopping experiences.
423
• 6 × 10-foot portable screens for life-sized, scaled projections.

• Rear projection to eliminate shadows.
• Ability to simultaneously test multiple design options and easily modify
test stimuli.
• Faster results than in-market testing.
Source: Adapted from www.idg-consulting.com/virtual
424
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
425

MR 2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MR 2

Uploaded by

Copyright:

Available Formats

MARKETING RESEARCH

Sub Code - 693

Program Design and Advisory Team

Prof. B.N. Chatterjee Mr. Manish Pitke

Prof. Kanu Doshi Prof. B.N. Chatterjee

Prof. Dr. V.H. Iyer Mr. Smitesh Bhosale

Prof. B.N. Chatterjee Prof. Vineel Bhurke

Prof. Venkat lyer Dr. Pravin Kumar Agrawal

Prof. Dr. Pradeep Pendse Mrs. Margaret Vas

Prof. Sandeep Kelkar Mr. Anuj Pandey

Prof. Dr. Swapna Pradhan Course Editor

Prof. Bijoy B. Bhattacharyya Prof. B.N. Chatterjee

Mr. P.M. Bendre Course Coordinators

Mr. Ajay Prabhu Ms. Kirti Sampat

Mr. A.S. Pillai Mr. Kishor Tamhankar

COPYRIGHT © by Prin. L.N. Welingkar Institute of Management Development & Research.

NOT FOR SALE. FOR PRIVATE CIRCULATION ONLY.

1st Edition, January 2020

In changing markets, there is always a demand for useful or vital

Carefully, analyzing the demand factor using marketing research tools

The objectives of the marketing research are to discover what the

In general, after studying the complete book, students will be able to

Prof. Ashish Hathi

After studying this chapter, you will be able to understand:

• Understand the meaning and significance of the “marketing research”

• How to relate the MR as a function to marketing environment,

1.2 Meaning and Definition of Marketing Research

1.3 Nature and Scope of Marketing Research

1.4 Significance of Marketing Research

1.5 Limitations and Obstacles in Marketing Research

1.6 Ethics in Marketing Research

1.7 Types of Researches

1.9 Self Assessment Questions

To undertake marketing effectively, businesses need information.

Decision making sphere covers decision making based on hard numbers,

Marketers often complain that they lack enough marketing information of

The information needed by marketing managers comes from three main

1. Internal company information

who sets up data gathering systems to support commercial intelligence

The task of marketing research (MR) is to provide management with

Marketing managers make numerous strategic and tactical decisions in the

Today’s competitive environment, both marketing manager and marketing

The DECIDE model conceptualizes managerial decision making as a series

The Evolution of Marketing Research (MR)

Market Research started with the onset of industrialization, wherein need

It started more with quantitative nature of research using conventional

As competition intensified, it became essential for marketers to understand

With technology advancement, marketing research also started playing

Marketing research domain stalwarts are adapting to different technology

1.2 Meaning and definition of marketing research

“Marketing research is the function that links the consumer,

– American Marketing Association (AMA) – Official Definition of

It is the systematic gathering, recording, and analysis of qualitative and

Thus, marketing research may also be described as the systematic and

1.3 Nature and scope of Marketing Research

Marketing research is often partitioned into two sets of categorical pairs,

• Consumer marketing research, and

Or, alternatively, by methodological approach:

• Qualitative marketing research, and

Consumer marketing research is a form of applied sociology that

Business to Business (B2B) marketing research is a form of understanding

Quantitative marketing research is a form of research which evaluates

Qualitative marketing research is a form of research which helps you to