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PREFACE

The FDDI education system is now focused on developing a top in the line professionals in
order to cater to the human resource demand of the Global "Leather Industry. This translates
that the main objective of FDDI education system is to qualify its graduates according to the
occupational requirements of the industry. FDDI education delivery system needs to ensure
that the graduates from FDDI's professional education programs acquire a comprehensive set of
occupational competences as defined by the Global Leather Industry.

FDDI's state of the art education system is focused on performance and demonstration/
provision of evidence of knowledge, skills and attitude to a specific level of competence in
accordance with a Global occupational standards. This concept of training system demands that
the content from the curriculum should be designed in a more appropriate manner, defining the
methods or strategies of learning so that training programs facilitate an excellent and world
class learning environment which facilitates the students to develop the required competences.

In this context, the Learners Handbooks are necessity in the learning process. Learners
Handbooks does not only serve as the enabling element but also acts as a guide to both the
facilitator/teacher and the trainee in attaining the defined learning outcomes of the program.
Thus, this manual (Learners Handbook) is prepared to assist the teachers and the students
willing and able to undertake or participate in the process of training and endeavored to
become a successful professional.

This manual is a part of the training manuals prepared for the B.Des (FDPM) programme. This
is prepared to standardize the training in the different campuses of FDDI.

This training manual is only for the training of students of FDDI and is not for sale. Features of
learner's handbook:

• Directly related to the curriculum,

• An instructional media that is individualized, self-based instruction allowing the trainee to


learn and move along independently without much or constant direction, correction and
instruction from the teacher,

• Designed by the teacher to fit local condition and appropriate to intended trainees ,

• Designed in a way that addresses the learning for all the learning outcomes within one
learning module.

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Acknowledgement

FDDI firmly believes that to attain excellence, it is important that knowledge sharing shall be
carried out with best possible methodology so that quest for knowledge can be achieved. This is
the biggest challenge to the human society and to the institution in particular as they are the
torch bearer for disseminating the knowledge.
This dissemination of knowledge is possible once it's acquired. However, in acquiring the same
we discover a debt to others and thus, it becomes necessary to acknowledge those people, we
know, have directly shaped our lives and our work.

This book has been envisaged with the dream of attaining excellence in delivery of training by
employing best practices in the field of knowledge sharing and is the next logical step in the
augmentation of the knowledge domain. It focuses on standardization of learning material,
training delivery, assessment system and validation system so that knowledge reaches with
same light and equal opportunity of learning is available to all.

The preparation of training material is a team work. Shri Sharad Srivastava has made major
contribution by providing concept of learning material and teachers guide for standardization.
He also prepared sample and demonstrated to all faculties for clarity. The main Contributors
are A.K. Sharma, Mr. Suman Banerjee, Mr. V.K. Khanna, Ms. Satyam Srivastava, Ms. Krishi
Sarin, Mr. Laxman Panwar and Mr. Dharmendra Jaiswal for motivation, guidance, and
coordination involved in preparation of learning material and implementation. Sh V.B
Parvatikar has provided its leadership in this endeavor.

There are many individuals, whose names may not appear on this page, but their contribution
had been immense as far as development and putting the potential of their professional
knowledge in this learning material is concerned.

FDDI hope that this document will help immensely to the students and teachers alike in
understanding of the subject in more comprehensive way and will thus help them in acquiring
various skills at different levels that would lead to have an army of skilled manpower in the
country and boost the economy.
It is the reader who provides us the inputs for further improvement. The management of FDDI
welcomes all the suggestions for further improvement of this learning material.

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List of Team Members

Domain: Footwear
Sub Department:
Learning Material Title :
Subject Code: BFDTM205
Semester: 02
Course: B. Design (FDPM)
A. Executive Board:
1. Mr. Ajay Kumar, IRS Secretary/Acting Managing
Director
2. Mr. Sameer Kumar Srivastava, IRS Sr. Executive Director
3. Mr. Amit Kumar Sharma, IRS Executive Director
5. Mrs. S.Parimala, IPS Executive Director
B. Project Advisor:
1. Mr. V.B. Parvatikar Advisor
C. Head of Department:
1.
D. Compiled by :
1.
2.
3.
E. Review & Editing:
1.
2.
F. Documentation Control Team
1.
2.
3.
4.

NOTE: This learning book is compilation of the information from books, journals, website &
other research materials. Apart from the other resources for the students, it's a learning tool
meant for the internal circulation only. It's not for sale & does not have any commercial value.
The material is for your own exclusive use. You may not hire out, lend, give and sell any part of
it. You must take care of your material to ensure it is not used or copied by anyone at any time

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Legal action will be taken if these terms are infringed. In addition, we may seek to take
disciplinary action against you. These conditions remain in force after you have finished the
course.

We are always happy to receive feedback from students, particularly details of any errors,
contradictions or unclear statements in the courses. If you have any comments on this course
please email them to manoi.a@fddiindia.com & ritika.jain@fddiindia.com.

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Module Title: Market Research

Module contents
UNIT 1&2- Business research
 Introduction
 Definition
 Scope
 Nature
 Importance and process.
 Research problem: definition, formulation, identification and selection of problems in
management.
 Research design: various types of research design in management.

UNIT 3&4-Data collection


 Primary data and secondary data
 Methods of collecting primary data: qualitative and observational technique
 Advantages and disadvantages of primary data.
 Secondary data: sources, advantages and disadvantages
 Characteristics of secondary data.
 Survey techniques
 Questionnaire design and precautions in questionnaire design.

UNIT 5-Measurement and scaling


 Types of scale,
 Criteria of a good scale
 Attitude scaling
 Comparative and non-comparative scale.

UNIT 6- Sampling
 Basis of sampling
 Process
 Type: probability and non-probability sampling
 Difference between probability and non-probability sampling, advantages and
disadvantages.
UNIT 7&8- Data analysis
 Data processing and analysis
 Hypotheses testing
 Univariate and bivariate analysis
 Factor and cluster analysis
 Conjoint analysis.

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UNIT 9- Report preparation
 Interpretation: meaning and techniques of interpretation.
 Importance of report writing
 Types of report
 Steps in report writing
 Precautions in preparing research report.

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MARKET RESEARCH

Unit 1&2: - Business Research

Research: - it is a systematic and objective study to find facts which can be answer to questions
and solutions to problems. The unexplained phenomenon’s which have not been explained by
anyone are explained by research. Therefore, research explains unexplained phenomenon to
clarify all doubts and correct misconceived facts.

The facts which are not exposed to the world are exposed with the help of research to the world
for the betterment. Research unfolds many facts to the society, business organizations for their
progress.

Characteristics of research:

 Systematic and critical investigation into a phenomenon.


 Use of scientific methods.
 Objective and logical in nature.
 Use of imperial evidence.
 Focused towards finding facts to questions and solutions to problems.

Purpose of research:

 Extending the knowledge of human beings, environment and natural phenomenon to


others.
 Bringing the information which is not developed fully during ordinary course of life.
 Verifying existing facts and identifying the changes into these existing facts.
 Developing facts for critical evaluation.
 Analyzing inter-relationships between variables and deriving explanations.
 Developing new tools and techniques to study unknown phenomenon.
 Helping in planning and development.

Significance of research in business decision making:

 Research provides the basis for decision making in every business unit as it provides
solutions for business related problems.
 Various statistical methods are helpful in dealing with various aspects of business and
useful for business decision making.
 Research is useful in formulating policies and helps in allocation of resources.
 Research is very important for different types of planning. Operational research, market
research and motivational research are helpful in business decision making.
 Operational research is useful for the application of logical, mathematical and analytical
techniques to find solutions such as maximization of profits and minimization of cost.

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 Market research is related to the identification of strengths, weakness, opportunities and
threats to any business organization.
 Motivational research helps the researcher to know the reasons of a particular behavior of
a customer towards a product and services.

Types of research:

Research can be classified into: -

Pure research: it is also called basic research or fundamental research. It aims at extending the
knowledge and is not applied in the regular practice. This research is not focused on specific
problems. New theory or refinement of existing theory is developed with the help of pure
research. It lays the foundation for applied research. It leads for generating alternative solutions
and choosing best among them.

Applied research: when a problem requires some solution and decision making, applied
research is carried on. It is problem oriented and action directed. It can contribute to the
development of theoretical knowledge by leading to the discovery of new facts.

Exploratory research: it is also called formative research. When researcher has no knowledge
or little knowledge about unfamiliar problem, researchers make preliminary study. The objective
is to generate new ideas, gathering new facts and increasing familiarity of researcher to
unfamiliar problem.

Descriptive research: it is done when a researcher is interested in knowing the characteristics of


certain groups such as age, income, gender, educational level, occupation. Generally, it is
perceived that this study is simple and factual, but it is not necessarily true and it can be complex
and demands high degree of scientific skills. It is well structured, rigid and cannot be changed
now and then.

Diagnostic research: it is similar to descriptive research but aimed towards in depth approach to
reach the basic casual relations of a problem and possible solutions for it. Prior knowledge of the
problem is required in this type of research.

Experimental research: it is used or conducted to understand the effect of a particular variable


by keeping other variables constant or controlled. It develops the relationship among variables
i.e. how they are related to each other.

Analytical study: quantitative data is analyzed with the help of mathematical models or
statistical techniques applicable to numerical data. It is also called statistical method.

Historical research: when findings have to be made with the help of old sources like documents
to understand events of past, this research is used.

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Marketing research meaning: it is a systematic and objective study of problems pertaining to
the marketing of goods and services. It is not restricted to any particular area of marketing but is
applicable to all its phases and aspects.

Limitations of marketing research:

1. Marketing research tends to be fragmentary in its approach as a result of which it


becomes difficult to have an overall perspective in which a marketing problem is to be
viewed and studied.

2. Marketing research is criticized because it becomes too superficial and faulty in industry.
While the principles of marketing research are good and based on scientific lines, but
marketing research is often used by those who have no formal training in subject.

3. There is a gap between marketing management and marketing research team. Therefore,
marketing researchers get divorced from the main stream of marketing.

4. Marketing research is not an exact science. There are several obstacles which come in the
way of getting accurate results.

5. Marketing research sometimes can be misused. One uses it to support his viewpoint or
position.

6. Another misuse of marketing research is found in deliberately delaying decision making.

7. It is used to grab power and authority in an organization.

When marketing research is unnecessary:

1. When a firm finds that the cost of undertaking research is going to be more than its
benefits.

2. When the research projects attempt to collect information relating to distant past.

3. When respondents find it difficult to communicate their emotions and sensations to the
researcher.

4. When the information is very personal and the respondent hesitate to give it.

5. When the nature of some products is such that there is hardly any time to conduct
research. This is true for those products which have short life cycle.

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Role of marketing research in important areas:

Many people think that marketing research is just a consumer survey i.e. asking consumers about
certain product or services. Though, surveys are part of marketing research, but it covers various
types of marketing problems faced by the marketing manager. The following are the areas where
marketing research is used:

A. Product research: it is concerned with the design, development and testing of new
products as well as improvement of the existing ones. It also examines the quality of a
new product as per the attributes. It also analyzes the product mix in comparison to the
competitive products. Here research on after sale service is also done. Apart from the
product, the packaging is also very important. Today it has become a powerful
promotional tool. On the basis of product and packaging research, a business firm can
make suitable marketing strategies.

B. Sales research: it is concerned with the selling activities of the firm. It would examine
the performance of the various sales outlets in terms of sales. Such a research can be
product wise and the overall performance. It also tells the position of the firm in the
market as compared to its main competitors. Research is also conducted to determine the
effectiveness of the sales force and distribution from time to time.

C. Customer research: it is related to the study of the buyer’s behavior. It looks into
different factors like sociological, economic and psychological that affects the customers
in their decision to buy a product. It also helps to know whether the customers are
satisfied or not and if yes then to what extent. It is also used to know what improvements
a customer wants in a product. It can be undertaken not only at macro level but also at
different segment level as well.

D. Pricing research: every firm has to decide what price is to be fixed for its goods and
services. Pricing is one of the major factors that affect the success of the firm. Costs are
the basis of price and there are various factors like demand, price of competitors,
technological development, and financial status of consumers. If a new product is to be
launched, the firm undertakes test marketing regarding the affect of the price on
customers. It helps the firm to know how price sensitive are the customers.

E. Advertising research: marketing research is also used in the area of advertising. The
main objective is to increase the awareness of its products and services among the target
group which eventually increases the sale. Advertising research is used for media
research and for copy testing. Media research is concerned with alternative media i.e.
T.V, radio, newspaper and magazines. The marketer tries to know whether to choose a
particular media or a combination of media. In copy testing, there are different methods
that are to be studies to determine suitability of a particular copy before they are finally
released by the firm as an advertisement.

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The Marketing Research Process: -

It involves a number of inter related activities which may overlap and do not rigidly follow a
particular sequence. A researcher is often required to think a few steps ahead. In market research,
even though our focus is on one particular step, other inter related steps are also being looked
into simultaneously. The following are the steps in marketing research: -

1. Identify and formulate the research problem: the first step in a research process is
formulating the research problem. It is the most important stage as a poorly defined
problem will not give good results. Poorly defined problems create confusion and do not
allow researcher to develop a good research design. It should be noticed that the problem
formulation from researcher’s point of view represent translation of management problem
into a research problem. So, in order to make a proper research formulation there must be
a good coordination and relation between manager and researcher, without which the
problem is likely to be defined poorly and it is of no value to the management. In order to
identify the problem, 3 types of symptoms are to be studies namely: overt difficulties,
latent difficulties and unnoticed opportunities. It is difficult to recognize a problem. A
person with experience will recognize the problems in less time as compared to others.
Once the problem is recognized, the researcher has to decide which one to choose and
focused upon. Because the organization has less finance and time and therefore, they
define the criteria’s and priorities to select the problem. After a problem is chosen, the
next task is to formulate it precisely.
2. Choice of research design: a research design is a systematic, objective and scientific
plan developed for directing a research study. It specifies the methods and procedures for
conducting a particular study. Research design can be grouped into three categories.
Exploratory research focuses on generating new ideas and is basically based on
secondary data. Descriptive study is undertaken when the researcher wants to know the
characteristics. Casual research is undertaken when a researcher wants to know the cause
and effect relationship between two or more variables.
3. Determining the sources of data: here researcher has to decide whether to collect
primary data or secondary data. But in most of the researches the researcher uses both
types of data.
4. Designing data collection forms: once the researcher decides to collect primary data for
the research, one has to decide the mode of data collection. There are two methods:
i) Observation: through this method, the data is collected through one’s observation. If
the researcher is keen observer and have experience and integrity then he would be in
a position to observe and record data faithfully and accurately.
ii) Surveys: in market research, field surveys are commonly used to collect primary data
from the respondents. Surveys can be personal, telephonic, by mail and diary. In
India, personal and mail surveys are more frequently used.

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5. Determining sampling design and sample size: another aspect of research process is
sampling plan. In case of field survey, researcher has to decide whether it is sample
survey or census survey. In case of sample survey, it is important to define the population
from which sample is to be drawn. Then it is also important to define the sample size and
for that there are two approaches: adhoc or practical approach and statistical approach.
The objective of sampling is to choose a sample which will have the pure characteristics
of the population.
6. Organizing and conducting field survey: after preparing the questionnaire and selected
the sample design and size of sample, the next step is to organize and conduct field
survey. The two important aspects should be looked into: 1) interviewing 2) supervision
of field work. The task of interviewing looks simple but it is not because generally
respondents hesitate in giving information. Supervision of field work is equally important
to ensure timely and proper completion of the field survey.
7. Processing and analyzing the collected data: once the field survey is over and
questionnaires are received, the next task is to aggregate the data into meaningful
manner. It includes preparing tables to bring out features of data. The researcher should
make a framework for processing and analyzing data and this should be done before the
collection of data. It is necessary that the researcher gives equal importance to analysis
and interpretation too. If it is not analyzed properly, it will leads in the wastage of time
and money.
8. Preparing the research report: after the data is analyzed and interpreted, the marketing
researcher is required to prepare a report which includes the findings and
recommendations. While writing a report, the researcher should follow certain principles
like clarity, objectivity and coherence. A good report should effectively communicate its
findings and should not be over loaded with the details which are not useful for the
manager.

Errors in research process:

The researcher should ensure that the research does not have a high degree of error. If the
researcher is not able to minimize the error than they should be taken into assumed proportion. In
marketing research, there are two categories of errors.

 Sampling errors: in marketing research, studies are based on samples of people. The
results emerging from such studies are then generalized i.e. applied to the entire
population. Usually there is a variation in the results from whole population as compared
to results from the sample. This difference between the sample value and the
corresponding population value is called sampling error.
 Non-sampling errors: these are those errors which occur in different stages of the
research except in selection of sampling. These errors can arise right at the beginning
when the problem is wrongly defined and followed at each stage. These errors are not

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measurable as compared to sampling errors. Sampling error keeps on decreasing as the
sample size increases but same is not for non-sampling errors. The types of non-sampling
errors are: -
 Defective problem definition
 Defective population definition
 Frame error
 Surrogate information error
 Non-response error
 Measurement error
 Experimental error
 Poor questionnaire design
 Interviewer bias
 Data processing error
 Data analysis error
 Interpretation error.

Research Design:

Research design is the plan, structure and strategy of investigation conceived so as to obtain
answers to research questions and to control variance. It is the blue print of the collection,
measurement and analysis of data. It helps the scientist in the allocation of his limited resources
by posing crucial choices. It is a systematic, objective and scientific plan developed for directing
a research study. It includes the overview of data collection, measurement and analysis of data. It
is the roadmap for the functioning of a researcher.

The features of a good research design are: -

 Ensuring research progress in right direction.


 Minimizing time and cost of research.
 Encouraging coordination and effective organization.
 Minimizing bias and minimizing the reliability of data collected and analyzed.

Research design is needed to ensure smooth flow of many research operations, making research
efficient, producing maximum information with minimum efforts, time and cost.the research
design should be flexible to manage the future changes.

Types of research design

Usually there are three types of research designs used by the researcher: -

1) Exploratory research: in this research, the focus is on the discovery of ideas and finding the
insights. It is a study to quickly find out the factors which causes the problem. For example:
if the sale of a business falls from last few months, the possible factors such as fall in the

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quality of a product, increase in competition, ineffective advertising, lack of trained
manpower, wrong channel of distribution. To find out the causes exploratory research is
carried out. In this research, respondents are given sufficient freedom, sometimes
respondents are grouped and focused interview is carried out to generate new ideas. The
researcher does not interfere the respondent until and unless the interview gets off the track.
This research usually based on secondary data which is already available. This research is
informal and is not rigid and researcher can change his focus and direction according to the
availability of new ideas and relationships among variables. Sometimes, these studies use the
case studies of other firms and individuals to know new relationships and to get new ideas,
but the findings from such research are suggestive and not conclusive. This study uses a
small sample size, the respondents are usually familiar with the problem, the researcher uses
non-probability sampling design and the research objectives are general rather than specific.
It includes in-depth interviews, focus group and projective techniques.
2) Descriptive studies: it is used in many circumstances. It is used to know the characteristics
of certain groups like their age, gender, education level etc. when the researcher is interested
in knowing the percentage of people in a population behaving in a certain manner, when we
have to make projections. This study looks factual and simple, but they are complex, require
high degree of scientific skills, are well structured, rigid and cannot be changed frequently.
Therefore, researcher should give sufficient time in framing questions and deciding the type
of data to be collected and the process to be used for collecting the data. This study is divided
into two broad categories:
a) Cross sectional studies: - this study is concerned with the sample of element from a
population. For example: it may deal with households, dealers, retail stores. Data on the
various characteristics from the sample elements are collected and analyzed. Cross
sectional studies are of two types: field studies and surveys. Field studies are scientific
enquiries that aim at finding the relation and inter relations among variables in real
settings. Such studies are done in life situations. These studies are scientifically inferior
to laboratory and field experiments. These studies also lacks in precision in the
measurement of variables. These studies also face problems of feasibility, cost, sampling
and time. Survey research has wider scope. Detailed information can be obtained from
the sample, which is also economical. It is less time consuming as compared to census
enquiry. But the focus of survey is restricted to the extent of information than in depth
analysis. If the survey is conducted on a large scale, it is costly and time consuming and it
requires good deal of knowledge on the part of the researcher.
b) Longitudinal studies: - these studies are based on panel data and panel method. A panel
is a sample of respondents, who are interviewed from time to time. Panel data is related
to the repeated measurements of the same variable. This is done to know the changes in
the variables over a period of time. The respondents are interviewed weekly, monthly or
quarterly. These studies enable the researcher to do detailed analysis. Thus, one can find
out those factors which affects the brands and which have not. The more comprehensive

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data could be obtained as it is collected periodically. This data is more accurate as
compared to the surveys. The cost of collecting data is low because the response rate is
high. But the accuracy of data collected depends on the efforts put in by the panel
members in an organization. The panel members are required to work with responsibility
and supply accurate information which cannot be achieved if panels are not well
maintained. As a result of which the quality of information will get affected.
3) Causal designs: - it investigates the cause and effect relationship between the two or more
variables. We use logic for confirming or rejecting hypothesis with the help of further
evidence. The causal studies can be divided into two broad categories: natural experiments
and controlled experiments. The difference between natural and controlled experiments is the
degree of intervention by the investigator in a given study. Natural experiments will involve
hardly any intervention of the investigator and a controlled experiment will involve the
intervention of the investigator to control and manipulate variables.

Criteria of research design:

 The main criterion of research design is that it must answer the research question and for
that it is necessary that proper hypothesis be formulated otherwise there may be lack of
understanding between the research question and hypothesis.
 The second criteria relates to the control of independent variables. To achieve this, it is
necessary to follow random procedure of selection. Thus, subjects should be selected at
random, they should assign to groups at random and experimental treatment should be
assigned to groups at random. Research design will be good if the randomization is
followed.
 The third criterion is generalizability. This criterion indicates that a result of any research
is likely to be applied to other situations.

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UNIT 3&4: Data Collection

Sources of data:

After the research problem is identified, the next step is to gather the required data. At this stage,
researcher wants to conduct field survey to collect data, but it should be used when all other
sources of data collection have been exhausted.

Secondary data: any data which have been gathered earlier for other purposes are secondary
data in the hands of the market researcher. Whereas those data which is collected at first hand
either by researcher or by someone else for the purpose of the study is called primary data.

Advantages of secondary data:

 It is economical i.e. the cost of collecting original data is saved.


 It saves time as a result of that it helps in the timely completion of research project.
 Secondary data is helpful because of its familiarity with deficiencies and gaps which
helps in collecting primary data more specific and more relevant.
 While finding the secondary data for the project, the understanding of the problem by the
researcher has improved.
 It can be used as a basis of comparison with primary data.

Disadvantages of secondary data:

 The units in which the secondary data is collected may not be same as is required for the
project.
 Even if the units are same, sometimes the time boundaries or class intervals may differ
from the desired.
 Sometimes the secondary data may not be accurate. If the degree of inaccuracy is high,
efficiency of the research is doubtful.
 Secondary data may sometimes out of date, because it requires a lot of time in collection,
processing, tabulation and publishing of such data and by that time data available is two
or three years old.

Sources of secondary data: -

It can be within the firm or externally i.e. from outside the firm.

Internal sources: -

1. Accounting records: it includes profit and sale statements. Sales invoices provides
information about customers, their addresses, quantities ordered, discounts, prices etc. we can
also get information about various sales territories, expenditures as well.
2. Sales force reports: this source is very useful because it provides detailed reports. It is
useful, accurate, systematic and adequate and most important up to date.
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3. Miscellaneous reports: any audit or any research report comes in this category.
4. Experts in the company: experts like product managers, marketing research managers,
technicians, public relation professionals can be a good source of data.

External sources: -

1. Government publications: it includes reports and surveys of various government


departments and organizations like central statistical organization, reports of reserve bank of
India etc.
2. Non-government publications: it includes national council of applied economic research,
various industry and trade associations like BSE directory, the coir board of India, FICCI,
CII, Indian sugar mills association, SAIL report etc.
3. Syndicate services: these services are provided by certain organizations which collect and
tabulate marketing information on the continuing basis. Reports are then sent periodically to
clients who are subscribers. Services are designed in such a way that it suits the requirements
of their clients.

Primary Data:

Primary sources are original sources from which the researcher directly collects data that have
not been previously collected e.g.., collection of data directly by the researcher from a sample of
consumers by interviewing them. Primary data are firsthand information collected through
various methods such as observation, interviewing, mailing etc.

Advantage of Primary Data

1. It is original source of data


2. It is possible to capture the changes occurring in the course of time.
3. It flexible to the advantage of researcher.
4. Extensive research study is based of primary data.
Disadvantage of Primary Data
1. Primary data is expensive to obtain
2. It is time consuming
3. It requires extensive research personnel who are skilled
4. It is difficult to administer.

Methods of collecting primary data:

1. Observation: it is one of the methods of collecting primary data. It is used to get both
past and present information. In observation, we did not ask respondent about their
current behavior rather we may observe the behavior of the respondent. But it is not
possible to observe the past behavior.

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Advantages:

1. As it is a direct observational technique, it enables a researcher to record behavior as it


occurs.
2. It can be used regardless of whether the respondent is willing to report or not, which is
not possible in case of survey.
3. Observation can be used to those who are unable to respond such as infants or animals.

Disadvantages:

1. Only the current behavior of a person can be observed.


2. Observation does not help the researcher in measuring the attitude or opinion on certain
subject nor his knowledge.
3. It is very slow i.e. when a large number of persons are to be contacted, it becomes
unsuitable.

Methods of observation:

There are various methods of observation which can be used in combination.

 Structured- unstructured observation: structured observation is used when the


research problem has been formulated precisely and observers have been told what is to
be observed. They may be given simple form to record their observation. Unstructured
observation allows the observer to observe whatever they think is relevant and important.
Structured observation is free from bias, but unstructured observation is having such
limitations.
 Disguised- undisguised observation: in disguised observation, the subjects do not know
that they are being observed. This is performed because if people know that they are
being observed then they may behave differently. But it also arises ethical questions of its
desirability, when those who are being observed are kept in dark.
 Observation under natural setting and under laboratory setting: observations in the
field studies are in the natural settings and undertaken in extremely realistic conditions.
Observation in laboratory setting enables the observer to control the external variables
which influence the behavior of people.
 Direct- indirect observation: in direct observation, the behavior of a person is observed
as it occurs. In indirect observations the past behavior is observed i.e. its effects are
observed.
 Human- mechanical observation: observation can be done manually or by machines.
Most of the observations are done manually where in trained observers are required to
observe the observations. In various cases, mechanical devices such as eye cameras and
audio meters are used for observation.

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2. Retail audit: in retail audit, we select a sample of retail outlets and conduct the study on
them. In retail audit, we gather information on the brand’s sales volume, sales trends,
stock levels, and effectiveness of in store display and promotion efforts.
3. Consumer panel: it is also known as panel method. In this method, we select a group of
consumers, who report on products they have been used so that manufacturers can
improve them and used them in their advertisements.
4. Interview: an interview is a conversation between two people (the interviewer and the
interviewee) where questions are asked by the interviewer to obtain information from the
interviewee. The following are the types of interviews:
 Structured interview: here every single detail of the interview is decided in advance.
The questions to be asked, the order in which the questions will be asked, the time
given to each candidate, the information to be collected from each candidate etc is
decided in advance. Structured interview is also called standardized, patterned,
directed or guided interview. Structured interviews are preplanned. They are accurate
and precise. All the interviews will be uniform. Therefore, there will be consistency
and minimum bias in structured interviews.
 Unstructured interviews: this interview is not planned in detail. Hence, it is also
called non directed interview. The questions to be asked, the information to be
collected from the candidates are not decided in advance. These interviews are non-
planned and therefore, more flexible. Candidates are more relaxed in such interviews.
They are encouraged to express themselves about different subjects based on their
expectations, motivations, background, interests etc. here the interviewer can make a
better judgement of the candidate’s personality, potentials, strengths and weaknesses.
 Group interview: here all candidates or small groups of candidates are interviewed
together. The time of the interviewer is saved. A group interview is similar to a group
discussion. A topic is given to the group and they are asked to discuss it. The
interviewer carefully watches the candidates. He tries to find out which candidate
influences others, who clarifies issues, who summaries the discussion, who speaks
effectively. He tries to judge the behavior of each candidate in a group situation.
 Depth interview: this is a semi structured interview. The candidate has to give
detailed information about his background, special interest etc. he also has to give
detailed information about his subject. Depth interview tries to find out if the
candidate is an expert in his subject or not. Here the interviewer must have a good
understanding of human behavior.
 Stress interview: the purpose of this interview is to find out how the candidate
behaves in a stressful situation. That is whether the candidate gets angry or gets
confused or gets frightened or gets nervous or remains cool in a stressful situation.
The candidate who keeps his cool in a stressful situation is selected for the stressful
job. The interviewer tries to create a stressful situation during the interview. This is

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done purposefully by asking the candidate rapid questions, criticizing his answers,
interrupting him repeatedly and so on.
 Panel interview: panel means a selection committee or interview committee that is
appointed for interviewing the candidates. The panel may include three or five
members. They ask questions to the candidates about different aspects. They give
marks to each candidate. The final decision will be taken by all members collectively
by rating the candidates. Panel interview is always better than an interview by one
interviewer because in a panel interview, collective judgement is used for selecting
suitable candidates.

Questionnaire: it is a communication method which we use to collect the required information.


The questionnaires can be classified into four main types:

A. Structured- non disguised


B. Structured- disguised
C. Non structured- non disguised
D. Non structured- disguised

Designing a questionnaire:

Designing a questionnaire is not a simple job as it looks like. A marketing researcher while
collecting the primary data needs to be very careful in deciding what information is to be
collected, how many questions are to be asked, what should be their sequence, what should be
their wordings and what should be the layout of the questionnaire. All these aspects requires time
and effort. If the marketing researcher develops the suitable questionnaire then the task of
collecting data becomes much easier.

Precautions in designing a questionnaire:

 Type of information to be collected: while designing a questionnaire, the marketing


researcher has to decide what type of information needs from the survey. Because if he fails
to collect the relevant and vital facts of his research, then his research does not remain useful.
At the same time, if he collects information on some issues which are not required in a
research then it will add on the cost and also the time of conducting the research. This will
leads to inaccuracy because the respondents have to answer more questions and they will get
frustrated and will not give exact answers. To avoid such situations, the marketing researcher
should think before what information he requires. There are various types of information
which can be generated from the marketing research like facts, awareness, opinions, attitudes
and future action plans.
 Types of questions: the another aspect in designing a questionnaire is to decide which type
of questions are to be asked like:

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1. Open ended questions: these questions give the respondent complete freedom to
decide the form, length and detail of the answer. These questions are preferred when
the researcher is interested in knowing the level of the information a respondent have.
2. Dichotomous questions: these questions only has two answers in the form of yes or
no, true or false, use or do not use.
3. Multiple choice questions: in these questions, the respondent is offered two or more
choices with the objective are to provide all possible choices to the respondent.
 Phrasing of the questions: the way in which a question is drafted is very important as a
slightly different word would generate different answers from the respondent. While phrasing
the questions the following facts should be considered:
a) Difficult words should be avoided.
b) Vague words like many and often should be avoided.
c) Lengthy questions should be avoided.
d) Two questions should not be combined.
 Order of questions: there must be a proper order or sequence in which questions should be
placed or asked. Usually simple or general questions should be asked in the beginning so as to
make the rapport. Difficult questions or questions on sensitive issues or lengthy questions should
be asked at the end, so as to maintain the interest of the respondent till the last question.
 Layout of the questionnaire: the researcher should decide the layout of the questionnaire.
The questionnaire should leave the positive impression on the respondent. The printing of the
questions should be neat, it should not have too many questions, proper spacing must be there
between the questions, the words should be simple and words which require attention should be
bold types and underlined.

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UNIT-5: MEASUREMENT AND SCALING

Measurement may be defined as the assignment of numbers to characteristics of objects or events


according to rules. A point worth emphasizing is that the definition of measurement does not
suggest the measurement of objects or events but the characteristics of interest in the concerned
objects or events. We do not measure a buyer or a product, but we measure a certain
characteristic of a buyer or a product. For instance, a buyer’s preference usage rate, income or
attitude can be measures. Likewise, in respect of a product, we can measure its size, color or its
suitability for a particular purpose.

Types of scales

These are simply ways to categorize different types of variables. These four measurement scales
(nominal, ordinal, interval, and ratio) are best understood with example.

Nominal
Nominal scales are used for labeling variables, without any quantitative value. “Nominal” scales
could simply be called “labels.” Here are some examples, below. Notice that all of these scales
are mutually exclusive (no overlap) and none of them has any numerical significance. A good
way to remember all of this is that “nominal” sounds a lot like “name” and nominal scales are
kind of like “names” or labels.

Ordinal
With ordinal scales, it is the order of the values is what’s important and significant, but the
differences between each one is not really known. Take a look at the example below. In each
case, we know that#4 is better than#3 or #2, but we don’t know–and cannot quantify–how much
better it is. For example, is the difference between “OK” and “Unhappy” the same as the
difference between “Very Happy” and “Happy?” We can’t say.

Ordinal scales are typically measures of non-numeric concepts like satisfaction, happiness,
discomfort, etc. “Ordinal” is easy to remember because is sounds like “order” and that’s the key
to remember with “ordinal scales”–it is the order that matters, but that’s all you really get from

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these. Advanced note: The best way to determine central tendency on a set of ordinal data is to
use the mode or median; the mean cannot be defined from an ordinal set.

Interval
Interval scales are numeric scales in which we know not only the order, but also the exact
differences between the values. The classic example of an interval scale is Celsius temperature
because the difference between each value is the same. For example, the difference between 60
and 50 degrees is a measurable 10 degrees, as is the difference between 80 and 70 degrees. Time
is another good example of an interval scale in which the increments are known, consistent, and
measurable. Interval scales are nice because the realm of statistical analysis on these data sets
opens up. For example, central tendency can be measured by mode, median, or mean; standard
deviation can also be calculated.

Here’s the problem with interval scales: they don’t have a “true zero.” For example, there is no
such thing as “no temperature.” Without a true zero, it is impossible to compute ratios. With
interval data, we can add and subtract, but cannot multiply or divide. Confused? Ok, consider
this: 10 degrees + 10 degrees = 20 degrees. No problem there. 20 degrees is not twice as hot as
10 degrees, however, because there is no such thing as “no temperature” when it comes to the
Celsius scale. I hope that makes sense. Bottom line, interval scales are great, but we cannot
calculate ratios, which brings us to our last measurement scale…

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Ratio

Ratio scales are the ultimate nirvana when it comes to measurement scales because they tell us
about the order, they tell us the exact value between units, AND they also have an absolute zero–
which allows for a wide range of both descriptive and inferential statistics to be applied. At the
risk of repeating myself, everything above about interval data applies to ratio scales + ratio scales
have a clear definition of zero. Good examples of ratio variables include height and weight.

Ratio scales provide a wealth of possibilities when it comes to statistical analysis. These
variables can be meaningfully added, subtracted, multiplied, divided (ratios). Central tendency
can be measured by mode, median, or mean; measures of dispersion, such as standard deviation
and coefficient of variation can also be calculated from ratio scales.

CRITERIA FOR A GOOD SCALE

There are two important criteria for ascertaining whether the scale developed is good or not.
These are reliability and validity. There are three major methods of estimating the reliability of
measurement. These are:

1. Test-retest reliability: this form involves repeated measurement of the same respondent
or group using the same scaling or technique under similar conditions. This would
involve administering a test at two points of time to the same person or group of persons.
The score of the two tests would then be correlated. If the correlation is low, then the
reliability too is less.
2. Alternative-forms reliability: it involves the same person being given asset of two
forms. The forms are considered equivalent but not identical. The results obtained on the
basis of these forms are compared to ascertain whether there is considerable difference
between the two scores. As each person in the group is given two forms and as the results
of these forms are to be compared, this approach needs more time.
3. Split-half reliability: it can be used in case of multi-item measurement. It involves
splitting of a multi-item measurement instrument into two equivalent groups. The item
responses of the two groups are then correlated to estimate reliability. A high degree of
correlation indicates that there is similarity among the items.

Validity: the second attribute that a scale should have is its validity.

1. Content validity: it implies that the contents of the scale correspond to the contents of
the attitude system and that they are comprehensive enough to cover the full range of the
attitude. The researcher should first define the problem clearly, identify the items to be
measured and evolve a suitable scale for the purpose. Despite all this care, he may be
criticized on the ground that the scale developed by him lacks content validity. This

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happens, because whether or not a given scale contains the content validity will depend
on the judgement of the researcher and this is likely to vary from individual to individual.
To avoid this, it may be preferable to approach a group of knowledgeable persons, rather
than leaving it to one person alone.
2. Construct validity: the concept of construct validity id more complex than that of
content validity. In order to apply, the construct the researcher postulates the nature and
extent of association between the attitude and other specified variables. He then examines
whether these relationships exist. If not, there could be two possible explanations. First,
his scale might be invalid as it does not satisfactorily measure what it set out to measure.
Second, his theory might be deficient in some way and it may be difficult for him to
identify it. The point to emphasize is that the construct validity is based on theoretical
considerations.
3. Predictive validity: it signifies how best the researcher can guess the future performance,
from his knowledge of the attitude score.
4. Concurrent validity: in the case of concurrent validity, an attitude scale on one variable
can be used to estimate scores on another variable.

Attitude scaling

Attitude scaling is the setting up of a scale to provide a basis for assigning a numerical value to a
person’s attitude and for comparing him or her with other people. This is possible when an
attitude is conceptualized as measurable on a single scale. Such a scale may be nominal, ordinal
or interval, in theory, although most are constructed and used as though they were interval scales
(even when they are ordinal). There are several established procedures for attitude scaling
including the Thurstone, Likert, and Guttman methods. Attitude scales may be unidimensional
although some attitude questionnaires measure more than one dimension, with scores on the
different individual questions all allocated to one or other dimension.

Comparative scales

Paired comparison: It is sometimes the case that marketing researchers wish to find out which
are the most important factors in determining the demand for a product. Conversely they may
wish to know which the most important factors are acting to prevent the widespread adoption of
a product. Take, for example, the very poor farmer response to the first design of an animal-
drawn mould board plough. A combination of exploratory research and shrewd observation
suggested that the following factors played a role in the shaping of the attitudes of those farmers
who feel negatively towards the design:

·Does not ridge


·Does not work for inter-cropping
·Far too expensive
·New technology too risky

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· Too difficult to carry.

Suppose the organization responsible wants to know which factors is foremost in the farmer's
mind. It may well be the case that if those factors that are most important to the farmer than the
others, being of a relatively minor nature, will cease to prevent widespread adoption. The
alternatives are to abandon the product's re-development or to completely re-design it which is
not only expensive and time-consuming, but may well be subject to a new set of objections.

The process of rank ordering the objections from most to least important is best approached
through the questioning technique known as 'paired comparison'. Each of the objections is paired
by the researcher so that with 5 factors, as in this example, there are 10 pairs-

In 'paired comparisons' every factor has to be paired with every other factor in turn. However,
only one pair is ever put to the farmer at any one time.

The question might be put as follows:

Which of the following was the more important in making you decide not to buy the plough?

· The plough was too expensive


· It proved too difficult to transport

In most cases the question, and the alternatives, would be put to the farmer verbally. He/she then
indicates which of the two was the more important and the researcher ticks the box on his
questionnaire. The question is repeated with a second set of factors and the appropriate box
ticked again. This process continues until all possible combinations are exhausted, in this case 10
pairs. It is good practice to mix the pairs of factors so that there is no systematic bias. The
researcher should try to ensure that any particular factor is sometimes the first of the pair to be
mentioned and sometimes the second. The researcher would never, for example, take the first
factor (on this occasion 'Does not ridge') and systematically compare it to each of the others in
succession. That is likely to cause systematic bias.

Below labels have been given to the factors so that the worked example will be easier to
understand. The letters A - E have been allocated as follows:

A = Does not ridge


B = Far too expensive
C = New technology too risky
D = Does not work for inter-cropping
E = Too difficult to carry.

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The data is then arranged into a matrix. Assume that 200 farmers have been interviewed and
their responses are arranged in the grid below. Further assume that the matrix is so arranged that
we read from top to side. This means, for example, that 164 out of 200 farmers said the fact that
the plough was too expensive was a greater deterrent than the fact that it was not capable of
ridging. Similarly, 174 farmers said that the plough's inability to inter-crop was more important
than the inability to ridge when deciding not to buy the plough.

A preference matrix

A B C D E
A 100 164 120 174 180
B 36 100 160 176 166
C 80 40 100 168 124
D 26 24 32 100 102
E 20 34 76 98 100

If the grid is carefully read, it can be seen that the rank order of the factors is -

Most important E Too difficult to carry


D Does not inter crop
C New technology/high risk
B Too expensive
Least important A Does not ridge.

It can be seen that it is more important for designers to concentrate on improving transportability
and, if possible, to give it an inter-cropping capability rather than focusing on its ridging
capabilities (remember that the example is entirely hypothetical).

One major advantage to this type of questioning is that whilst it is possible to obtain a measure of
the order of importance of five or more factors from the respondent, he is never asked to think
about more than two factors at any one time. This is especially useful when dealing with illiterate
farmers. Having said that, the researcher has to be careful not to present too many pairs of factors
to the farmer during the interview. If he does, he will find that the farmer will quickly get tired
and/or bored. It is as well to remember the formula of n (n - 1)/2. For ten factors, brands or
product attributes this would give 45 pairs. Clearly the farmer should not be asked to subject
himself to having the same question put to him 45 times. For practical purposes, six factors is
possibly the limit, giving 15 pairs.

It should be clear from the procedures described in these notes that the paired comparison scale
gives ordinal data.

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Thurstone scales. The Thurstone scale is made up of statements about a particular issue and
each statement has a numerical value indicating the respondent’s attitude about the issue, either
favorable or unfavorable. People indicate which of the statements with which they agree and the
average response is computed.

First, you must be very clear about exactly what it is you’re trying to measure. Then, collect
statements on the topic ranging from attitudes that are favorable to unfavorable. For this
example, we will use same sex marriage. Example statements are

It’s should be against the law.

There’s absolutely nothing wrong with it.

Marriage is between a man and a woman.

It should be a sin.

It’s perfectly appropriate for two consenting adults.

It should be legalized.

It can harm children.

Same sex couples should have the same legal rights as a male/female couple.

It’s just horrible.

It can’t do any harm.

Next, you have judges evaluate, on an 11 point response format (1 very negative to 11 indicating
very positive), what kind of attitude each of these statements reflects. For example it’s likely that
the statement “It should be a sin.” would be judged to represent a very negative attitude while the
statement “It should be legalized.” would be judged to represent a very positive attitude. The
idea is that you’d like to develop a set of items that not only reflect the entire continuum between
1 and 11, but that your judges who helped you develop the set of items would have considerable
consensus about what level of attitude each of the statements reflected. In this exercise,
statements for which there is little consensus would be discarded.

So, let’s assume that the average ratings among our judges are as below:

Average

It’s should be against the law. 1.7

There’s absolutely nothing wrong with it. 6.8

Marriage is between a man and a woman. 2.4

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It should be a sin. 1.3

It’s perfectly appropriate for two consenting adults. 8.4

It should be legalized. 9.1

It can harm children. 2.0

Same sex couples should have the same legal rights as 7.6

Male/female couples.

It’s just horrible. 1.5

It can’t do any harm. 6.9

Suppose that there was reasonable consensus among our judges for the above items. When
administering the scale, we’d ask individuals to indicate which of the above they agreed with
(the average level that our judges had agreed upon would not be indicated on the scale when
administered to individuals). Finally, the average of those checked would be calculated to
determine the individual’s attitude. Problems with developing Thurstone scales include 1) it can
be quite time consuming and expensive, and 2) examples for the mid-points of the scale for
which there is consensus among the judges can be difficult to obtain.

Summated ratings scales

Summated scales are a collection of related questions that measure underlying constructs. A
summated scale is different from a response scale, which is an ordered series of response choices
to a survey question. If you use an existing summated scale, you must provide research evidence
of its validity and reliability. The summated scale should correlate strongly with established
measures of the same characteristic, correlate somewhat with measures of related characteristics,
and show no correlation with measures of unrelated characteristics. Responses on the summated
scale should also show consistency over time (test-retest reliability) and across questions, which
indicates the questions are measuring the same thing (internal consistency).

To develop a new summated scale, there are five major steps:

1. Define the concept or characteristic you intend to measure. For example, you may want
to create a summated scale that measures academic honesty.
2. Design the summated scale, writing the questions and response choices.
3. Pilot test the summated scale and revise it, using the critiques of a small number of
respondents.
4. Administer the summated scale to 100 - 200 people and determine if the questions are
highly interrelated. If not, revise the scale and re-administer it.

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5. Validate and norm the summated scale. Factor analysis, which groups related questions
into factors, can help validate a summated scale by demonstrating that its questions are
related. Use factor analysis to select the best questions to include in a summated scale.
Norms, who establish the pattern of scores on the scale for your target population, allow
you to compare an individual's score with other scores in the population.

Developing a summated scale is complex and difficult and researchers should consult for an
introduction of creating and using them.

Guttman scales: With a Guttman scale, you have a set of statements so that a respondent who
agrees with any specific statement in the list will also agree with all previous statements. In other
words, each statement subsumes the lower order statements. For example, a scale designed to
measure Post-Traumatic Stress Syndrome, presented below, was based upon the Guttman
technique and was published in the Journal of Clinical Psychology.
Scale score Scale item
0 In service 1965-1975
1 Stationed in Vietnam
2 Saw injury or death of US Serviceman
3 Fired weapon/fired upon in combat
4 Responsible for death of enemy military
5 Wounded in combat
6 Responsible for death of enemy civilian
7 Served third tour of duty in Vietnam

Semantic Differential scales. These scales measure an individual’s reactions to stimulus words
and concepts in terms of ratings on bipolar adjectives at each end. For example, an eight point
response system that is anchored from hot on one end to cold at the other, or friendly at one end
with hostile at the other, or good at one end with evil at the other, or polite at one end with rude
at the other, etc. Typically a scale would consist of a minimum of five bipolar pairs and the score
would be obtained by adding the numeric values of the responses. An example of a semantic
differential scale is presented below. This scale, the Least Preferred Co-Worker scale, was used
by Fred Fiedler (1964) as a measure of leadership style.
Pleasant __ __ __ __ __ __ __ __ __ Unpleasant
Friendly __ __ __ __ __ __ __ __ __ Unfriendly
Rejecting __ __ __ __ __ __ __ __ __ Accepting
Tense __ __ __ __ __ __ __ __ __ Relaxed
Distant __ __ __ __ __ __ __ __ __ Close
Cold __ __ __ __ __ __ __ __ __ Warm
Supportive __ __ __ __ __ __ __ __ __ Hostile
Boring __ __ __ __ __ __ __ __ __ Interesting
Quarrelsome __ __ __ __ __ __ __ __ __ Harmonious
Gloomy __ __ __ __ __ __ __ __ __ Cheerful
Open __ __ __ __ __ __ __ __ __ Guarded
Backbiting __ __ __ __ __ __ __ __ __ Loyal

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Untrustworthy __ __ __ __ __ __ __ __ __ Trustworthy
Considerate __ __ __ __ __ __ __ __ __ Inconsiderate
Nasty __ __ __ __ __ __ __ __ __ Nice
Agreeable __ __ __ __ __ __ __ __ __ Disagreeable
Insincere __ __ __ __ __ __ __ __ __ Sincere
Kind __ __ __ __ __ __ __ __ __ Unkind

Semantic differential: the semantic differential scale can be used in a number of cases such as
comparison of brands, determining the effectiveness of advertising on attitude change,
comparison of companies’ image etc. In order to formulate a suitable semantic differential scale,
several factors should be considered. First, whether the cues should be balanced or unbalanced?
A scale is balanced when either side of the indifferent cue has an equal number of cues. Second
which type of cue: numerical, graphic, verbal, or some combination of these should be used?
Third, how many cues should be used in the scale? The number of cues depends on such factors
as the type of respondent, the research environment and the nature of the analysis. Forth, whether
the scale should be of the forced or non-forced variety? Since the respondent cannot report his
attitude correctly unless he is aware of the object or its dimension, he may be asked to check the
mid point of the scale when he is not aware of the object. Finally, the researcher has to select the
antonyms. Since only one antonym pair is used, the method is more like a graded check list than
a semantic differential scale.

Staple scale: the staple scale is the modification of the semantic differential scale. It has a
unipolar 10 point nonverbal rating with values from +5 to -5. It aims at measuring both direction
and intensity of attitudes at the same time. It differs from semantic differential scale in that its
scale values indicate how close the descriptor or adjective fits the object evaluated. Respondents
are asked to evaluate how accurately the adjective or phrase describes the object to be evaluated.
It may be noted that ratings in the staple scale are analyzed in the same way as those in the
semantic differential scale. Another point to note is that the staple scale can be used for more
than one product.

Rating methods: this method is commonly used in behavioral sciences. Here a respondent has to
indicate his rating of a product or service along a continuum or in an ordered set of categories. A
rating allows a respondent to register a degree of a feature directly on scale. The rating method
can be numerical, graphic, verbal or a combination of two or more of these forms.

Rank order scale: it is widely used in marketing research. Under this scale, the respondents are
asked to rank various objects with regard to the attitude in question. As the respondents give
their ranking, this turns out to be an ordinal scale. It is comparative in nature. This method is
simple to administer, need relatively less time and can be easily understood by a layman.

Constant sum scale: this scale has become quite popular in marketing research on account of its
simplicity and ease of instructions. Under this scale, the respondent is given some specific
number of points such as 10 or 100 and asked to divide or allocate them among the alternatives

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in such a way so as to reflect the relative importance of some attitudinal characteristic being
studied.

Graphic rating scale: the graphic rating scale was originally introduced by researchers to bring
out fine differences in the responses. Theoretically, any number of ratings can be displayed
provided respondents are sophisticated enough to differentiate their attitudinal position and
indicate it. Respondents are asked to indicate their response at a specific point along a
continuum. This scale brings out interval data. Apart from a straight line having the extreme
opposite attributes on both the ends, many graphic rating scales use pictures or visuals to
communicate with respondents.

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UNIT-6: SAMPLING

Once the researcher has formulated the problem and developed a research design, he has to
decide whether the information is to be collected from all the people i.e. population. In case the
data is collected from all the people it is called census survey, where as if the data is collected
only from some members of the population it is called sample survey.

SOME BASIC TERMS

 Population: in statistical usage the term population is applied to any finite or infinite
collection of individuals. It has displaced the older term universe, which is derived from
the universe of discourse of logic. It is practically synonymous with aggregate and does
not necessarily refer to a collection of living organisms.
 Census: the complete enumeration of population or groups at a point in time with respect
to well defined characteristics such as population, production, traffic on particular roads.
In some connection the term is associated with the data collected rather than the extent of
the collection so that the term sample census has a distinct meaning.
 Sample: a part of population or a subset from a set of units, which is provided by some
process or other usually by deliberate selection with the object of investigating the
properties of the parent population or set.
 Sample survey: a survey which is carried out using a sample method i.e. in which a
portion only and not the whole population is surveyed.
 Sampling unit: one of the units into which the aggregate is divided or regarded as
divided for the purposes of sampling, each unit being regarded as individual when the
selection is being made.
 Frame: a list, map or other specification of the units which constitute the available
information relating to the population designated for a particular sampling scheme. The
frame may or may not contain information about the size or other supplementary
information about the units, bit it should have enough details so that a unit if included in
the sample, may be located and taken up for inquiry.
 Sampling error: that part of the difference between the population value and the
estimate derived from a random sample, which is due to the fact that only a sample
values is observed. The totality of sampling errors in all possible samples of the same size
generates the sampling distribution of the statistic which is being used to estimate the
parent value.
 Bias: an effect which deprives a statistical result of representatives by systematically
distorting it, as distinct from a random error which may distort on any occasion but
balances out on the average.
 Biased sample: a sample obtained by a biased sampling process. A process which
incorporates a systematic component of error, as distinct from random error which
balances out on the average. Non random sampling is subject to bias.

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Advantages of sampling

 Sampling is cheaper than census survey.


 The sampling operations are small, therefore its execution and field work can be carried
out speedily.
 It is economical as small staff is required.
 More detailed information can be collected which is not possible in case of census
method.
 The quality of interview and supervision is better than census survey.

Limitations of sampling

 When information is needed on every unit, then in that case sample survey is of no use.
 Sampling gives rise to certain errors. If these errors are too large, the results of the
sample survey will be of extremely limited use.
 While in census survey it may be easy to check the omissions of certain units in view of
complete coverage, this is not so in the case of a sample survey.

Sampling process:

There are seven steps involved in the sampling process, which are as follows: -

1. Define the population: it is the aggregate of all the elements defined prior to selection of
the sample. It is necessary to define population in terms of elements, sampling units,
extent and time.
2. Identify the sampling frame: it could be a telephone directory, a list of blocks and
localities of a city, a map or any other list consisting of all the sampling units. It may be
pointed out that if the frame is incomplete or otherwise defective, sampling will not be
able to overcome shortcomings.
3. Specify sampling unit: the sampling unit is the basic unit containing the elements of the
target population. The sampling unit may be different from the element. The sampling
frame should be complete and accurate otherwise the selection of the sampling unit might
be defective. It is necessary to get a further specification of the sampling unit both in
personal interviews and in telephone interviews.
4. Specify the sampling method: it indicates how the sample units are selected. One of the
most important decisions in this regard id to determine which of the two- probability and
non-probability sample is to be chosen. Probability samples are also known as random
samples and non-probability samples as non-random samples.
5. Determine the sample size: in other words, one has to decide how many elements of the
target population are to be chosen.
6. Specify the sampling plan: this means that one should indicate how decisions made so
far are to be implemented.

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7. Select the sample: this is the final step in the sampling process. A good deal of office
and fieldwork is involved in the actual selection of the sampling elements. Most of the
problems in this stage are faced by the interviewer while contacting the sample
respondents.

Types of sampling designs

 Probability sampling: in probability sampling, the chance of every unit in the


population of getting in sample is known. The selection of sample depends entirely on
chance. No substitution of one unit for another is permissible. This means no human
judgement is involved in the selection of a sample. The chances of errors are less.
 Non-probability sampling: the probability of inclusion of any unit in the population in
sample is unknown. The selection of units depends purely on human judgement rather
than on chance. It is used due to its convenience and economy but the chances of
occurring errors are high.

Types of probability sampling:

 Random sampling: in this, every sample is selected randomly. This gives equal chance
to every sample to get selected for the research. No criteria are followed for selecting the
sample. It is a kind of lottery method.
 Stratified random sampling: in this, the population is divided into mutually exclusive
and mutually exhaustive groups and then simple random sample is selected within each
group.
 Cluster sampling: in cluster sampling, instead of selecting individual units from the
population, the entire group or cluster is selected at random.
 Multistage sampling: it involves the selection of units in more than one stage. In such
sampling, the population consists of number of first stage units called primary sampling
units. Each PSU consists of number of second stage unit. First the sample is taken from
the PSU, then a sample is taken of the second stage units and the process is continued till
we select the final sample unit.
 Master sample: it is the one from which repeated sub samples can be taken as and when
required from the same population or area. Here, the actual sample for each new survey is
not selected directly from the population but from the segments selected earlier from the
entire population.

Types of non-probability sampling:

 Quota sampling: it is frequently used in marketing research. It involves the fixation of


certain quotas which are to be followed by the interviewers. For example: it we have to
conduct interview on 100 respondents then we may fix quota like 60 respondents from
urban areas and 40 respondents from rural areas, which is to be followed by interviewer
while selecting the respondents.
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 Judgement sampling: the main feature of this sampling is that units are selected from
the population purposefully. Usually experts are used for selecting the samples on the
basis of their judgement. The reliability of the samples depends upon the judgement of
the expert but the chances of occurring errors are less in this type of sampling.
 Convenience sampling: it is based on the convenience of the researcher who is to select
as sample. Usually the sample available on the spot is selected for the survey. Therefore,
it is also called accidental sampling.
 Snowball sampling: in the initial stage of snowball sampling, sample units may or may
not be selected by using probability methods. Subsequently, additional units are obtained
on the basis of information given by initial sample units. Again, these units may provide
other names to the researcher. In this way, the sample builds up as more and more names
are covered by it.

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UNIT- 7&8: DATA ANALYSIS

Once the data have been collected, the researcher has to process, analyze and interpret the data.
Before processing the data, the researcher should ensure that the collected data should be reliable
otherwise his all efforts will be in vain if the data is not properly processed and analyzed. It is
desirable to have a well described framework for the processing and analysis of data before it
gets collected. Dummy tables should be prepared and tested for the data which is going to be
collected. There are several steps which are required to prepare the data ready for analysis. These
steps involve data editing, coding and tabulation.

Editing: the first step in data preparation is to edit the raw data. It includes detection of errors
and omissions correct them where and if possible and make sure that minimum quality standards
are achieved. The purpose of editing is to generate data which is accurate, consistent with the
intent of the questions, uniformly entered, complete and arranged in a proper manner. Sometimes
the data entered in the questionnaire is incorrect, inappropriate or missing, in that case the
researcher has three choices: -

1. Researcher can detect the proper answer by reviewing the other information in the
schedule.
2. Researcher can contact the respondent for correct information, if he has his information
and if time and budget allows.
3. Researcher strike out the answer if it is clearly inappropriate. Here an editing entry of ‘no
answer or unknown’ is called for.

Coding: coding involves assigning numbers or other symbols to answers so that respondents can
be grouped into a limited number of classes or categories. It means assigning the numerical
values to each individual response for each question within the survey. Classifying of data into
limited categories sacrifices some data detail, but it is necessary for efficient analysis. Coding the
data in numerical form simplifies the analysis process as most of the statistical software
understands or takes numeric values easily.

Tabulation: tabulation includes sorting of data into different categories and counting the number
of cases that belong to each category. The tabulation can be done by hand or by machine or in
some cases partially by hand partially by machine. The number of tabulations will depend on the
number of variables and the number of responses will depend on the sample size. If the numbers
of variables are not large and sample size is small, then hand tabulation is preferred, but when
the number of variables and the sample size is large, it is suggested to use machine tabulation i.e.
in small studies hand tabulation is preferred and in large studies computer based tabulations
should be used.

Once the data is properly tabulated, it is then entered into statistical software for analysis.

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HYPOTHESIS

We know that research begins with a problem or a felt need or difficulty. The purpose of
research is to find a solution to the difficulty. It is desirable that the researcher should propose a
set of suggested solutions or explanations of the difficulty which the research proposes to solve.
Such tentative solutions formulated as a proposition are called hypothesis. The suggested
solutions formulated as hypotheses may or may not be the real solutions to the problem. Whether
they are or not is the task of research to test and establish.

Meaning of Hypothesis

To understand the meaning of a hypothesis, let us see some definitions:

“A hypothesis is a tentative generalization, the validity of which remains to be tested. In its


most elementary stage the hypothesis may be any guess, hunch, imaginative idea, which
becomes the basis for action or investigation”.

“It is a proposition which can be put to test to determine validity”. (Goode and Hatt).

These definitions lead us to conclude that a hypothesis is a tentative solution or explanation or


a guess or assumption or a proposition or a statement to the problem facing the researcher,
adopted on a cursory observation of known and available data, as a basis of investigation,
whose validity is to be tested or verified.

Testing of Hypothesis

When the hypothesis has been framed in the research study, it must be verified as true or false.
Verifiability is one of the important conditions of a good hypothesis. Verification of hypothesis
means testing of the truth of the hypothesis in the light of facts. If the hypothesis agrees with the
facts, it is said to be true and may be accepted as the explanation of the facts. But if it does not
agree it is said to be false. Such a false hypothesis is either totally rejected or modified.
Verification is of two types viz., Direct verification and Indirect verification.

Direct verification may be either by observation or by experiments. When direct observation


shows that the supposed cause exists where it was thought to exist, we have a direct verification.
When a hypothesis is verified by an experiment in a laboratory it is called direct verification by
experiment. When the hypothesis is not amenable for direct verification, we have to depend on
indirect verification. Indirect verification is a process in which certain possible consequences
are deduced from the hypothesis and they are then verified directly. Two steps are involved in
indirect verification. (i) Deductive development of hypothesis: By deductive development certain
consequences are predicted and (ii) finding whether the predicted consequences follow. If the
predicted consequences come true, the hypothesis is said to be indirectly verified. Verification
may be done directly or indirectly or through logical methods.
Testing of a hypothesis is done by using statistical methods. Testing is used to accept or reject
an assumption or hypothesis about a random variable using a sample from the distribution. The

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assumption is the null hypothesis (H0), and it is tested against some alternative hypothesis (H1).
Statistical tests of hypothesis are applied to sample data. The procedure involved in testing a
hypothesis is A) select a sample and collects the data. B) Convert the variables or attributes into
statistical form such as mean, proportion. C) Formulate hypotheses. D) Select an appropriate
test for the data such as t-test, Z-test. E) Perform computations. F) Finally draw the inference of
accepting or rejecting the null hypothesis.

Uses of Hypothesis

If a clear scientific hypothesis has been formulated, half of the research work is already done.
The advantages/utility of having a hypothesis is summarized here underneath:

i) It is a starting points for many a research work.

ii) It helps in deciding the direction in which to proceed.

iii) It helps in selecting and collecting pertinent facts.

iv) It is an aid to explanation.

v) It helps in drawing specific conclusions.

vi) It helps in testing theories.

vii) It works as a basis for future knowledge.

Univariate analysis

Univariate analysis is the simplest form of analysis. The analysis is carried out with the
description of a single variable in terms of the applicable unit of analysis. For example, if the
variable "age" was the subject of the analysis, the researcher would look at how many subjects
fall into given age attribute categories.

Univariate analysis contrasts with bivariate analysis – the analysis of two variables
simultaneously – or multivariable analysis – the analysis of multiple variables simultaneously.
Univariate analysis is commonly used in the first, descriptive stages of research, before being
supplemented by more advanced, inferential bivariate or multivariate analysis.

A basic way of presenting univariate data is to create a frequency distribution of the individual
cases, which involves presenting the number of cases in the sample that fall into each category of
values of the variable. This can be done in a table format or with a bar chart or a similar form of
graphical representation. A sample distribution table is presented below, showing the frequency
distribution for a variable "age".

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In addition to frequency distribution, univariate analysis commonly involves reporting measures
of central tendency (location). This involves describing the way in which quantitative data tend
to cluster around some value. In univariate analysis, the measure of central tendency is an
average of a set of measurements, the word "average" being variously construed as (arithmetic)
mean, median, mode or another measure of location, depending on the context. For a categorical
variable, such as preferred brand of cereal, only the mode can serve this purpose. For a variable
measured on an interval scale, such as temperature on the Celsius scale, or on a ratio scale, such
as temperature on the Kelvin scale, the median or mean can also be used.

Bivariate analysis

Bivariate analysis is one of the simplest forms of quantitative (statistical) analysis. It involves the
analysis of two variables (often denoted as X, Y), for the purpose of determining the empirical
relationship between them. In order to see if the variables are related to one another, it is
common to measure how those two variables simultaneously change together (see also
covariance). Bivariate analysis can be helpful in testing simple hypotheses of association and
causality – checking to what extent it becomes easier to know and predict a value for the
dependent variable if we know a case's value of the independent variable (see also correlation).

Bivariate analysis can be contrasted with univariate analysis in which only one variable is
analyzed. Furthermore, the purpose of a univariate analysis is descriptive. Subgroup comparison
– the descriptive analysis of two variables – can be sometimes seen as a very simple form of
bivariate analysis (or as univariate analysis extended to two variables). The major differentiating
point between univariate and bivariate analysis, in addition to the latter's looking at more than
one variable, is that the purpose of a bivariate analysis goes beyond simply descriptive: it is the
analysis of the relationship between the two variables. Bivariate analysis is a simple (two
variable) special case of multivariate analysis (where multiple relations between multiple
variables are examined simultaneously).

Factor analysis

Factor analysis is a statistical method used to describe variability among observed, correlated
variables in terms of a potentially lower number of unobserved variables called factors. For
example, it is possible that variations in four observed variables mainly reflect the variations in
two unobserved variables. Factor analysis searches for such joint variations in response to
unobserved latent variables. The observed variables are modelled as linear combinations of the
potential factors, plus "error" terms. The information gained about the interdependencies
between observed variables can be used later to reduce the set of variables in a dataset.
Computationally this technique is equivalent to low-rank approximation of the matrix of
observed variables. Factor analysis originated in psychometrics and is used in behavioral
sciences, social sciences, marketing, product management, operations research, and other applied
sciences that deal with large quantities of data.

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Factor analysis is related to principal component analysis (PCA), but the two are not identical.
Latent variable models, including factor analysis, use regression modelling techniques to test
hypotheses producing error terms, while PCA is a descriptive statistical technique. There has
been significant controversy in the field over the equivalence or otherwise of the two techniques.

Cluster analysis

Cluster analysis or clustering is the task of grouping a set of objects in such a way that objects in
the same group (called a cluster) are more similar (in some sense or another) to each other than
to those in other groups (clusters). It is a main task of exploratory data mining, and a common
technique for statistical data analysis, used in many fields, including machine learning, pattern
recognition, image analysis, information retrieval, and bioinformatics.

Cluster analysis itself is not one specific algorithm, but the general task to be solved. It can be
achieved by various algorithms that differ significantly in their notion of what constitutes a
cluster and how to efficiently find them. Popular notions of clusters include groups with small
distances among the cluster members, dense areas of the data space, intervals or particular
statistical distributions.

Clustering can therefore be formulated as a multi-objective optimization problem. The


appropriate clustering algorithm and parameter settings (including values such as the distance
function to use, a density threshold or the number of expected clusters) depend on the individual
data set and intended use of the results. Cluster analysis as such is not an automatic task, but an
iterative process of knowledge discovery or interactive multi-objective optimization that involves
trial and failure. It will often be necessary to modify data preprocessing and model parameters
until the result achieves the desired properties.

Conjoint analysis

Conjoint analysis, also called multi-attribute compositional models or stated preference analysis,
is a statistical technique that originated in mathematical psychology. It is used in surveys
developed in applied sciences, often on behalf of marketing, product management, and
operations research. It is not to be confused with the theory of conjoint measurement. Conjoint
analysis is a particular application of regression analysis. There is no precise statistical definition
of it. Usually two or three of the following properties are applicable:

 data are collected among multiple individuals (respondents) whereas there are multiple
data points for each individual, which makes it a layered model
 the dependent variable reflects a choice or trade-off situation
 the independent variables are categorical, thus coded as binary numbers (0,1)

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Conjoint analysis requires research participants to make a series of trade-offs. Analysis of these
trade-offs will reveal the relative importance of component attributes. To improve the predictive
ability of this analysis, research participants should be grouped into similar segments based on
objectives, values and/or other factors. The exercise can be administered to survey respondents
in a number of different ways. Traditionally it is administered as a ranking exercise and
sometimes as a rating exercise (where the respondent awards each trade-off scenario a score
indicating appeal).

In more recent years it has become common practice to present the trade-offs as a choice
exercise (where the respondent simply chooses the most preferred alternative from a selection of
competing alternatives - particularly common when simulating consumer choices) or as a
constant sum allocation exercise (particularly common in pharmaceutical market research, where
physicians indicate likely shares of prescribing, and each alternative in the trade-off is the
description a real or hypothetical therapy).

Analysis is traditionally carried out with some form of multiple regressions, but more recently
the use of hierarchical Bayesian analysis has become widespread, enabling fairly robust
statistical models of individual respondent decision behavior to be developed.

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UNIT-9: REPORT WRITING

Interpretation

Interpretation means explanation or finding out the meaning. It involves drawing inferences from
the analysis of data. Interpretation and analysis are closely interlinked. Analysis of data often
includes a simultaneous interpretation of the result.

Interpreting data in proper perspective is very important. In order to do so, the researcher should
possess high degree of skills and exercise utmost care and objectivity. And for that the researcher
must ensure that the data collected should be reliable and sufficient for drawing inferences. Apart
from that the researcher also makes sure that appropriate statistical methods have been used in
the analysis phase.

Negative results are more difficult to interpret than positive ones. Because when results are
positive, they are easier to interpret, but when they are negative, then there are many reasons for
that like wrong methodology, poor measurement, faulty analysis or in correct hypothesis. In such
situation, one has to scrutinize the negative results very carefully and identify the real reason.

Report Writing

One of the most important aspects of any research project is to assist the managers in decision
making process and it depends a lot on how the researcher communicates his findings of the
research to the manager. If the results of the research are not communicated effectively than the
decision making process may not be sound and to avoid this situation, a research report should
be effective.

Marketing research report is a bridge between researcher and a manager with regard to the
research finding. It is a tangible output of a project and apart from helping in decision making it
provides a documentary evidence and historical record of the project. Therefore, most times the
research project is judged by the quality of the research report.

Oral and Written Reports

Reports can be of two types oral and written. An oral report is any presentation of information
through the spoken word. There are three major differences between oral and written reports.

 Oral reports lack visual advantages. Charts, diagrams or pictures can be used to a limited
extend, though to stress particular points in oral presentation, the reporter can use pauses
and volume emphasis.
 The pace of presentation cannot be controlled and regulated by any one from an
audience, who is being presented an oral report. In contrast, whenever a certain point is
not clear in written report the reader can read it two or more times, if needed.

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 Since the written report is bound to receive considerable attention and scrutiny from the
readers the report writer is likely to work hard to produce an accurate report of a high
quality. In contrast, an oral report will not be so precise nor will the reporter give as much
time in its presentation since it cannot be subjected to the same degree of scrutiny as
written reports.

Types of Reports

Various authors have classified reports differently. These classifications indicate the variation in
their approaches to the subject. One basis of classification is the time interval. The reports could
be daily, weekly, monthly, quarterly or annual. However, all reports are not regularly brought
out. There are some which are prepared for a special assignment and are known as special
reports.

Reports can be classified on a functional basis i.e. informational, examination and analytical.
Informational report is a factual report on a particular subject and it neither contains an analysis
or conclusions. The examination report goes one step further. In addition to giving facts on a
subject matter, it analyses these facts. The analytical report goes a step ahead, it not only presents
and analyses data but it also draws conclusions and make recommendation if required.

Reports can be classified on the basis of their physical form or make up. The two usual forms are
short form and long form. For example: memoranda, letters and progress reports may follow a
short form whereas information and examination reports may follow a long term.

Reports have also been classified on the basis of the relationship between the reader and writer.
Such reports are described as administrative, professional and independent. An administrative
report is written within an organization. Professional report is submitted by an external expert to
an organization and independent reports are prepared by nonprofit organizations and published
for the benefit of the public.

Reports are sometimes classified on the basis of the employment status of their authors. Reports
prepared in a business organization are known as private reports while those prepared in a
government or public institution are known as public reports.

Reports can be classified based on their formality. A formal report is written befitting the
requirement of a formal occasion. An informal report may be worded to suit an informal
occasion. A report prepared by one employee for the information of his colleagues may be an
example of an informal report. Whereas a report prepared by an executive for the top
management may be a formal report.

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Generic Marketing Research Report

The research problem definition, research objectives and methods vary for each situation as
marketing research report is unique in its own sense, but many parts of the basic format of report
remains generic such as: -

 Title page: the title page should indicate the topic on which the report has been prepared,
the person or agency who has prepared it, the person for whom it has been prepared and
the date of submission of the report.
 Table of content: the report should contain a table of content to guide the reader as to
what it contains. The table of content should indicate the main parts, divisions or sections
of the report. When a report contains a number of statistical tables, charts, figures, a
separate table for each of these categories should be given immediately after the table of
contents.
 Introduction: the introduction deals with the genesis of the report. It explains why the
study was undertaken, the statement and formulation of the problem, formulation of
hypothesis and the scope of the study. It is desirable to give a review of the related
studies done earlier so that the reader may take the present report in a proper perspective.
 Methodology: the report should describe the methodology used in studying the problem.
Id a sample survey has been undertaken, the report should indicate the type of sample
design used, its size and procedure, number of research workers. If the reports is to be
written for people not familiar with various statistical concepts, the researcher should
explain the methodology in very simple language, confining himself only to the broader
aspects.
 Data analysis and findings: this section of the report contains the results of the research
and is perhaps the largest section of the report. The researcher should ensure that the
findings are presented in proper sequence and in such a manner that the reader has no
difficulty in understanding them. The researcher should also ensure that only the major
findings are given as too many will be confusing to the reader.
 Conclusion and recommendations: this section contains a summary of the report as
well as the main conclusions. The latter part is based on the findings given earlier. To
facilitate the reader, the conclusions reported in this section should give references to
pages, paragraphs in the finding section. It may not be necessary that all reports must
contain recommendations. However, when a study has been commissioned by
management which expects that the researcher will recommend certain measures.
 Limitations: the report should also point out the main limitations of the research report.
This will be helpful to the reader who can form his own opinion as to how far the results
are reliable. It will be useful to researchers who subsequently undertake a study on the
same or related theme.
 Appendices and bibliography: this is the last section of the report. An appendix gives
supplementary information which supports the body of the report but which cannot be

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given within it. Bibliography shows the title of the books used in the report preparation,
names of the authors, publishers, the year of publication and if possible the page
numbers. The bibliography should be arranged in an alphabetical order.

Key issues to remember

Before communicating the results of the project to the management, the researcher should keep
several issues in mind for effective communication.

1) The researcher should keep in mind the managers who use the report may not have e
technical knowledge, so the researcher should avoid technical terms and jargons or
should kept them at minimum.
2) The report should be logically structured and easy to follow. This maintains the interest
and flow of the manager.
3) Researcher should make sure that the objectivity should not lose while presenting or
writing a report.
4) To make a report presentable and to make impression, the researcher should use figures,
graphs and tables or pictures as it helps in interpretations and look good as well.

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