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Department of Marketing Management Course Outline

Marketing Research Course
 Chapter I: INTRODUCTION TO MARKETING RESEARCH
 The Concept, and Role of Marketing Research
 Purpose of Marketing Research
 The Marketing Research Process
 Chapter II: MARKETING RESEARCH TYPES
 Primary data collection tools
 Questionnaire

 Observation Research

 Focus Group Discussions

 Key informant interview (KII)

By Dr. Mulugeta Negash
Gondar, Ethiopia  Secondary Data and Research
Internal
February 2022 

2/26/2022 1  External 2

Course Outline Course Outline

 Qualitative Research  Field Work and Data Quality Issues
 Observation  Sampling Procedures
 Focus Group Discussion
 Sample Size
 Documents
 Measurement Methods, Marketing Scales
 Quantitative Research
 Questionnaire Design
 Survey Research

 Experimental Research
 Chapter IV: DATA ANALYSIS - QUALITATIVE
 Chapter III: RESEARCH DESIGN, SAMPLING AND  Fundamental Data Analysis for Qualitative research
MEASUREMENT (ATLAS.ti)
 Introduction to qualitative data analysis challenges
 Research Design
 Qualitative data analysis techniques
 Exploratory

 Descriptive

 Explanatory
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Course Outline  RESEARCH REPORT WRITING

 Content  Reviewing Literature, citations and Referencing
 Thematic  Research Reports
 Discourse
 Report Components
 Quality assurance in qualitative data
 Steps in qualitative data analysis  Techniques of Writing
 Computer based qualitative data analysis  Research presentation
 Chapter V : DATA ANALYSIS – QUANTITATIVE  Online support
 Fundamental Quantitative Data Analysis (SPSS)
 Univariate Data Analysis
 Bivariate Data Analysis
 Multivariate Data Analysis
 Analysis of Differences, Association and Predictive Analysis
 Hypothesis Testing
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 Teaching & Learning Methods/strategy

Lecturing, discussions, problem solving, and case analysis.
Chapter 1
 Evaluation: Introduction to Marketing Research
Proposal writing ----20%
Project on Market research ---- 20% Learning Objectives
Various Individual Assignment -----20
Final exam ----40%  To know the relationship of marketing
Total ----100%
research to marketing, the marketing
 References
 BELL, E., BRYMAN, A., & HARLEY, B. (2018). Business research methods. 5th Ed. Oxford concept, and marketing strategy
university press.
 BURNS, A., BUSH, R., SINHA, N. 2018. Marketing Research. International 8th Edition.  To know how to define marketing
Pearson Education Limited. Harbow
 COOPER, D. R., SCHINDLER, P. S. & SUN, J. 2012. Business research methods, McGraw- research
hill New York.
 MALHOTRA K. N. 2017. Marketing Research: An Applied Orientation. 7th Edition,  To understand the function and uses of
Pearson
 MAZZOCCHI, M., 2008. Statistics for marketing and consumer research. Sage. marketing research
 SAUNDERS, M. N., SAUNDERS, M., LEWIS, P. & THORNHILL, A. 2016. Research 7 8

methods for business students, 7/ed, Pearson Education.


Learning Objectives
 Need to be revised…
 To see examples of marketing research
for evaluating target markets, product
research, pricing research, promotion
research, and distribution research
 To describe a marketing information
system (MIS) and understand why
marketing research occupies a place in
an MIS
What Is the Marketing Concept?
The marketing concept is a business
philosophy that holds that the key to
achieving organizational goals consists
of the company’s being more effective
than competitors in creating, delivering,
and communicating customer value to
its chosen target markets.
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What Is Marketing?
Marketing is the activity, set of
institutions, and processes for
creating, communicating, delivering,
and exchanging offerings that have
value for customers, clients,
partners, and society at large.
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What Is a Business Research?
• A process of determining, acquiring,
analyzing, synthesizing, and
disseminating relevant business data,
information, and insights to decision
makers in ways that mobilize the
organization to take appropriate
business actions that, in turn,
maximize business performance
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Why we do research?
Reasons for conducting research include:
There is a gap in the literature;
There is inconsistency amongst studies;
There are unresolved issues;
Societal development prompts a research
question;
To understand a topic or phenomena better
Marketing or Market Research?
 Marketing research: a process used by
businesses to collect, analyze, and
interpret information used to make
sound business decisions and
successfully manage the business
 Market research: a process used to
define the size, location, and/or makeup
of the market for a product or service
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What Is Marketing Research?
Marketing research is the process of designing,
gathering, analyzing, and reporting information
that may be used to solve a specific marketing
problem.
Marketing research: the function that links the
consumer, customer, and public to the marketer
through information: information used to identify and
define marketing opportunities and problems;
generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve the
understanding of marketing as a process
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Marketing Research Function
 Marketing research is the systematic
and objective search for, and analysis
of, information relevant to the
identification and solution of any
problem in the field of marketing
 Link the consumer to the marketer by
providing information that can be used
in making marketing decisions
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Purpose of Marketing Research
Identify marketing opportunities
and problems
Generate, refine, and evaluate
potential marketing actions
Monitor marketing performance
Improve marketing as a process
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Generate, Refine, and Evaluate
Potential Marketing Actions
Selecting target markets.. size of
various market segments,
expanding or shrinking..
Product research
Pricing research.. research
to determine the “value” consumers
perceive in the new product
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Identifying Market Opportunities and
Problems
Some marketing research studies
are designed to find out what
consumers’ problems are and to
assess the suitability of different
proposed methods of resolving
those problems.
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Generate, Refine, and Evaluate
Potential Marketing Actions
 Promotion research.. As firms spend money on
promotion, they want to know how effective
those expenditures are for the advertising, sales force,
publicity/PR, and promotional offers.
Firms also conduct research on the effectiveness of
different media
 Distribution research.. What are the best channels
to get our product to consumers? Where are the best
dealers for our product, and how can we evaluate the
service they provide? How satisfied are our dealers? Are
our dealers motivated?
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Monitor Marketing Performance
 Tracking data collected at point-of-sale
terminals as consumer packages goods are
scanned in grocery stores, mass
merchandisers, and convenience stores
 Tracking social media
Improve Marketing as a Process
 Basic research is conducted to expand our
knowledge rather than to solve a specific problem.
 Applied research is conducted to solve specific
problems.
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Role of Marketing Research
The second observation, that marketing
research does not guarantee success, is
simply a recognition of the environment
within which marketing takes place.
In the fields of science and engineering
researchers are often working with
deterministic models of the world where y =
f(x).
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Role of Marketing Research
Most marketing research studies are trying to
understand and predict consumer behavior, which is
a difficult task.
 "Marketing research does not make decisions and it
does not guarantee success". Marketing managers
may seek advice from marketing research
specialists, and indeed it is important that research
reports should specify alternative courses of action
and the probability of success, where possible, of
these alternatives. However, it is marketing
managers who make the final marketing decision
and not the researcher. 22
Role of Marketing Research
That is, x is a necessary and sufficient
condition for y to occur. For instance, an
increase in pressure is usually necessary and
sufficient to bring about a rise in air
temperature. In the social sciences, and this
includes marketing and marketing research,
the phenomenon under investigation rarely,
if ever, lends itself to deterministic
modeling
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Role of Marketing Research
Consider the marketing problem of
determining how much to spend on
promotion in order to achieve a given
market share. The link between
promotional expenditure and sales is
not so direct as that between
pressure and temperature.
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The Marketing Information System
A MIS is a structure consisting of people,
equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and
accurate information to marketing decision
makers.
Components of MIS
Internal Reports System
Marketing Intelligence System
Marketing Decision Support System (DSS)
Marketing Research System
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Role of Marketing Research
There are a great many more intervening
variables, including: the media used, the
effectiveness of the promotional message,
the length and frequency of the campaign,
not to mention the many dimensions of the
product, price and distribution. Marketing
researchers work with probabilistic models
of the form:
 y = f(x1)..(fx2)...f(xn)... 26
Marketing Research System
It gathers information not gathered
by the other MIS component
subsystems
Marketing research projects are not
continuous; rather, they have a
beginning and an end
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Learning Objectives
 To gain insights into marketing research by
learning the steps in the marketing research
 To understand when marketing research is not
needed
 To understand the difference between the
problem and the research objective
 To know the importance of properly defining the
problem
 To appreciate a process for defining the problem
as decision alternatives
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The Marketing Research Process
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Marketing Research Process Learning Objectives
 To know the criteria all research objectives should
have and to know the sources of problems, the
role of symptoms, and the role of the researcher
 To understand that marketing research is needed
when managers are uncertain of their
assumptions needed to specify consequences of
decision alternatives
 To know what an action standard is and why it is
needed
 To learn the components of the marketing
research proposal and ethical issues 30
Caveats to a Step-by-Step Process
Not always presented as an 1 step
process.
Not all studies use all 11 steps.
You may be able to solve the
problem with secondary data (a
visit to the library or Google™).
Few studies follow the steps in
order. 32

Step 1: Establish the Need for
Marketing Research
Is there a real need for marketing
research?
Research takes time and costs
money.
Value of information versus cost
of information?
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Step 1: Establish the Need for
Marketing Research
 When is marketing research not needed?
 The information is already available.
 The timing is wrong to conduct
marketing research.
 Funds are not available for marketing
research.
 Costs outweigh the value of marketing
research.
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Step 1: Establish the Need for
Marketing Research
Is there a real need for marketing
research?
Marketing research is not always
needed.
We often have the information.
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Step 2: Define the Problem –
Stating the Decision Alternatives
 This is the most important of the 11
steps (assuming we’ve decided to do
marketing research!).
 If the problem is incorrectly defined, all
else is wasted effort.
 The need to make a decision requires
decision alternatives. If there are no
alternatives, no decision is necessary
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Step 3: Establish Objectives
Research objectives, when
achieved, provide the information
necessary to solve the problem
identified in step 2.
Research objectives state what the
researchers must do.
Step 4: Determine Research Design
Exploratory research: collecting
information in an unstructured and
informal manner
Descriptive research: research that
describes the phenomena of interest
Causal/Exploratory studies:
attempt to uncover what factor or
factors cause some event
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Step 4: Determine Research Design
 Descriptive research: a set of methods
and procedures describing marketing
variables
 Diagnostic research: designed to
determine sources of satisfaction and
dissatisfaction
 Prescriptive research: provides
information that allows the manager to
37 best remedy the dissatisfaction 38
Step 5: Identify Information
Types and Sources
Primary information:
information collected
specifically for the problem at
hand
Secondary information:
information already collected
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Step 6: Determine Methods of

Step 6: Determine Methods of
Accessing Data
Accessing Data
 Four main choices for primary data:
 Secondary data is relatively easy to
access; primary data is more complex.  Have a person ask questions
 Use computer-assisted or direct
 The most popular form of accessing
data is online surveys. Traditional questioning
modes of data collection, such as  Allow respondents to answer questions
telephone, mail, and face-to-face themselves without computer assistance
intercepts, still have a place in  Use some combination of two or more of
marketing research. the previous methods
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Step 7: Design Data

Collection Forms Step 7: Design Data Collection Forms
The questionnaire must be Software programs are available
worded objectively, clearly, and to assist marketing researchers
without bias in order to
communicate with respondents. in preparing forms.
If we observe respondents, the
form is called an observation
form.
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Step 8: Determine Sample
Plan and Size
 The sample plan describes how each
sample element, or unit, is to be drawn
from the total population. Gives you
representativeness!
 Sample size refers to determining how
many elements of the population
should be included in the sample.
Gives you accuracy!
Step 10: Analyze Data
Data analysis involves entering
data into computer files, inspecting
data for errors, and running
tabulations and various statistical
tests.
SPSS®
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Step 9: Collect Data
 Nonsampling errors in data collection will
occur, so researchers must know the sources
of these errors and implement controls to
minimize them.
 Researchers aim to minimize this possibility
by undertaking a control referred to as
validation.
 Companies that specialize in data collection
are referred to as field service firms.
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Step 11: Prepare and Present the
Final Research Report
 Reporting, the last step, is one of the
most important phases of marketing
research.
 Its importance cannot be overstated
because it is the report, or its
presentation, that properly
communicates the results to the client.
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The Research Objective

Defining the Problem
Research objectives are
Problems are situations calling for
specific and tell the researcher
managers to make choices among
decision alternatives. exactly what information must
be collected to solve the
problem by facilitating selection
of an alternative.
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The Importance of Properly Defining

The Research Objective the Problem
 Specify from whom information is to be
When you define a problem
gathered
incorrectly, there is nothing you can
 Specify what information is needed
do in the research process to overcome
 Specify the unit of measurement used to
this error.
gather information
This makes defining the problem and
 Word questions used to gather
information using the respondents’ frame research objectives the most
of reference important step in the marketing
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research process. 52

Sources of Problems
Failure to meet an objective
Opportunity
Marketing opportunity has been
defined as an area of buyer need or
potential interest in which a
company can perform profitably.
53
Role of Symptoms in Problem
Recognition
Symptoms are not the problem
but are the “signals” that alert us
to the problem.
Symptoms are changes in the
level of some key monitor that
measures the achievement of an
objective.
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Recognizing the Problem
Managers must be aware of
opportunities.
Unless they have a system for
monitoring opportunities, sometimes
referred to as opportunity
identification, they will not likely
identify these problems.
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The Role of the Researcher in
Problem Definition
A situation analysis is a form of
exploratory research undertaken to
gather background information and
gather data pertinent to the problem
area that might be helpful in defining
the problem decision.
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Determine the Probable Cause(s)

of the Symptom
 It is crucial to determine all possible
causes. If only a partial list of causes is
made, it is possible that the real cause will
be overlooked.
 When a probable cause of the symptom is
identified, this triggers a decision to be
made by management.
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Specify Decision Alternatives That
May Alleviate the Symptom
Once the decision alternatives are
determined, a manager must try
to determine the consequences of
choosing each alternative.
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Consequences of the Alternatives

 Consequences are the results of marketing
decisions.
 Assumptions are assertions that certain conditions
exist or that certain reactions will take place if the
considered alternatives are implemented.
 Information state is the quantity and quality of
evidence a manager possesses for each of his or her
assumptions.
 Information gaps are discrepancies between the
current information level and the desired level of
information.
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Defining Research Objectives
 Research objectives state specifically
what the research would like to achieve at
the end
 Hypotheses are statements that are
taken as true for the purposes of
argument or investigation.
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Defining Research Objectives
 Criteria for writing research objectives:
 Specify from whom information is to be
gathered
 Specify what information (construct) is
needed
 Specify the unit of measurement used to
gather the information
 Word questions used to gather information
using the respondents’ frame of reference
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Completing the Process
 The research objective specifies exactly what
information the researcher must collect to fill the
information gaps.
 Once this information is provided, the manager
should be able to choose among the decision
alternatives.
 But exactly how will that decision be made? What
must the information look like for a certain
alternative to be selected over others?
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What Construct Do We Wish to
Measure?
 A construct is an abstract idea inferred
from specific instances that are thought
to be related.
 An operational definition defines a
construct, such as intention to buy or
satisfaction, which describes the
operations to be carried out for the
construct to be measured empirically.
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Elements of the Market Research
Proposal
The marketing research
proposal serves as the basis what
the marketing researcher proposes
to deliver to the client for some
consideration, the design, the
research instruments, the budget...
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Think about your research
• Tryto think about your research at
the earliest possible stage.
•Think early on about topics which
might interest you - this saves time
later on.
•Remember: ‘A piece of research
can be a talking point for a job
interview, as it is something the
student has done!’
Managing time and resources
Key Points:
• Work out a timetable - start and finish
dates for every stage of research.
• Find out about the resources available
(if any) for travel expenses, stationery,
photocopying, postage costs, recording
and transcription equipment.
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Using your supervisor
• Your supervisor can help you identify helpful
research areas.
• Use your supervisor to the fullest extent that you are
allowed.
• They are well versed in the research process and
so can help you at every stage.
• Follow their suggestions – they are given in your
best interests.
• If you encounter problems, keep in touch with
them!
Identifying research questions
• One your have selected a topic, you need to
develop research questions:
– Totally open-ended research is risky
– Poorly formulated questions will lead to poor research
– Research questions help to focus your literature
searches, data collection, analysis, and writing
• Make sure your research questions are:
– clearly defined and researchable
– theoretically grounded
– linked together
– neither too large nor too small
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Steps in selecting research questions: an example

Formulating a research question
 A research question should end with a question
mark.
 If there is no question mark, it is not a research
question.
 Be selective with your questions from the possible
research areas.
 Be guided by the principle that the research
questions we choose should be related to one
another. If they are not, our research will probably
lack focus.

Criteria for Evaluating your research Question Preparing a Research Proposal

 Questions should be clear.
 Questions should be researchable.
 Questions should connect with established
theory and research.
 Questions should be linked to each other.
 Questions should have potential for making a
contribution to knowledge.
 Questions should be neither too broad nor too
narrow.
 What is your research topic or, alternatively,
what are your research objectives?
 Why is your research topic (or why are those
research objectives) important?
 What is your research question or what are
your research questions?
 What does the literature have to say about your
research topic/objectives and research
question(s)?

Preparing a Research Proposal
 How are you going to go about collecting data
relevant to your research question(s)? In other
words, what research methods are you
intending to use?
 Why are the research methods/sources you
have selected the appropriate ones for your
research question?
 Why are the research methods/sources you
have selected the appropriate ones for your
research question?
Preparing a Research Proposal
 What is your timetable for the different
stages of the project?
 What problems do you anticipate in doing
the research (for example, access to
organizations)?
 What are the possible ethical problems
associated with your research?
 How will you analyse your data?
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Preparing a Research Proposal
 Who will your research participants be and how will
they be selected (or if the research will employ
documents, what kinds of documents will be the focus
of your attention and how will they be selected)?
 If your research requires you to secure access to
organizations, have you done so, and if not, what
obstacles do you anticipate?
 What resources will you need to conduct your research
(for example, postage, travel costs, recording and
transcription equipment, photocopying, software) and
how will those resources be funded?
Make your own choices
• Choose a topic that interests you
• Ask yourself whether you can answer the research question
• Read a lot, read thoroughly, and appropriately.
• Identify your strengths, weaknesses, interests, and personal
development opportunities.
• Don’t pre-commit to one idea, approach, research design, or
data source.
• Use opportunities to talk to others.
• Research something that is likely to be interesting to others.
• Start writing early.
• Remember that this is not your life work or a bid for a Nobel
Prize.
• Listen to your supervisor, but make your own choices.
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Elements of the Market Research Proposal Chapter 2

 TYPES OF MARKETING RESEARCH
 Elements include the following: 1. Secondary Data and Research
 Design, Approach, 2. Primary Data Research
 Background, Statement of the problem, 1. Qualitative Research
Focus Group Discussions
Significance, Scope, The research 1.

2. In-depth interview
objectives, RQ, The research method, 3. Projective Technique
Population, Sampling, Sample size, Data 2. Quantitative Research
Collection, Quality Assurance, Data 1. Observation Research
Analysis, Presentation, 2. Survey Research
Limitations….Budget 3. Experimental Research
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Secondary Data and Packaged Information Learning Objectives

Learning Objectives
 To learn what secondary data are, how
this information is used, and how we
may classify different types of secondary
data, including internal and external
databases
 To understand the advantages and
disadvantages of secondary data
 To learn how to evaluate secondary data
79
 To learn how to use the Census Bureau’s
Survey
 To know what packaged information is and
the differences between syndicated data
and packaged services
 To understand the advantages and
disadvantages of packaged information
 To see some of the various areas in which
packaged information may be applied
80

Primary Versus Secondary Data
 Primary data: information that is
developed or gathered by the researcher
specifically for the research project at hand
 Secondary data: information that has
previously been gathered by someone other
than the researcher and/or for some other
purpose than the research project at hand
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Classification of Secondary Data
 Internal secondary data are data that have
been collected within the firm, such as sales
records, purchase requisitions, and invoices.
 Internal secondary data is used for database
marketing.
 Database marketing is the process of building
and maintaining customer (internal) databases
and other (internal) databases for the purpose of
contacting, transacting, and building
relationships. Examples: CRM and data mining.
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Uses of Secondary Data
 Secondary data has many uses in
marketing research, and sometimes the
entire research project may depend on
the use of secondary data.
 Applications include economic-trend
forecasting, corporate intelligence,
international data, public opinion, and
historical data.
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Ways Companies Use Databases
To identify prospects
To decide which customers should
receive a particular offer
To deepen customer loyalty
To reactivate customer purchases
To avoid serious customer mistakes
84

Advantages of Secondary Data
Are obtained quickly
Are inexpensive
Are readily available
Enhance existing primary data
May achieve research objective
85
Evaluating Secondary Data
What was the purpose of the study?
Who collected the information?
What information was collected?
How was the information attained?
How consistent is the information
with other information?
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Disadvantages of Secondary Data
Reporting units may be
incompatible
Measurement units do not match
Class definitions are not usable
May be outdated
May not be credible
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Qualitative Research Techniques
Learning Objectives
 To understand basic difference between quantitative
and qualitative research techniques
 To learn the pros and cons of using observation as a
means of gathering data
 To discover what focus groups are and how they are
conducted and analyzed
 To become acquainted with online focus groups and
their advantages
 To become familiar with other qualitative methods
used by marketing researchers
88

Categories of Research
 Quantitative research: research
involving the use of structured questions
in which response options have been
predetermined and a large number of
respondents involved
 Qualitative research: research involving
collecting, analyzing, and interpreting
data by observing what people do and say
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Observation Techniques
 Types of observation:
 Direct versus indirect
 Overt versus covert
 Structured versus unstructured
 In situ versus invented
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Categories of Research
 Mixed research: combination of both
quantitative and qualitative research
methods in order to gain the advantages of
both
 Observation methods: techniques in
which the researcher relies on his or her
powers of observation rather than
communicating with a person in order to
obtain information
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Observation Techniques
 Direct observation: observing behavior as it
occurs
 Indirect observation: observing the effects or
results of the behavior rather than the
behavior itself
 Archives: secondary sources, such as
historical records, that can be applied to the
present problem
 Physical traces: tangible evidence of some
past event
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Observation Techniques
Covert observation: subject is
unaware that he or she is being
observed, such as mystery shopping.
Overt observation: respondent is
aware that he or she is being observed,
such as Arbitron’s PPM, which
monitors the media to which a
consumer is exposed.
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Observation Techniques
In situ observation: the researcher
observes the behavior exactly as it
happens.
Invented observation: the
researcher creates the situation.
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Observation Techniques
Structured—researcher identifies
beforehand which behaviors are to
be observed and recorded (often
there is a checklist).
Unstructured—all behavior is
observed, and the observer
determines what is to be recorded.
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Observation Techniques
Appropriate conditions for observation:
 Short time interval—event must begin and end
in a reasonably short time. You cannot
“observe” a process of purchasing that lasts
months.
 Public behavior—cannot observe private
behaviors.
 Faulty recall conditions—behaviors are so
“automatic” that consumer cannot recall them.
96

Observation Techniques
Advantages of observational data
Insight into actual, not reported,
behaviors
No chance for recall error
Better accuracy
Less cost
97
Focus Groups
Focus groups are small groups of
people brought together and
guided by a moderator through an
unstructured, spontaneous
discussion for the purpose of
gaining information relevant to the
research problem.
99
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Observation Techniques
 Limitations of observational data
 Small number of subjects
 Subjective interpretations
 Inability to pry beneath the behavior
observed
 Motivations, attitudes, and other
internal conditions are unobserved
98
Types of Focus Groups
Traditional: Select 6 to 12 persons
and meet in a dedicated room with
one-way mirror for client viewing,
for about two hours.
100

Types of Focus Groups
Contemporary: Online and the
client can observe the online
activity from remote locations; may
have 25 or even 50 respondents;
allow client interaction; may take
place in nontraditional locations.
101
Newer Focus Groups
 Online focus group: a form of
contemporary focus groups, one in
which the respondents and/or clients
communicate and/or observe by use of
the Internet
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How a Focus Group Works
 Moderator: responsible for creating the
correct atmosphere in the group and
guiding discussion
 Focus group report: summarizes the
information provided by the focus group
participants relative to the research
questions
102
Online Focus Groups
 Advantages:
 No physical setup is necessary.
 Transcripts are captured on file in real time.
 Participants can be in widely separated
geographical areas.
 Participants are comfortable in their home or
office environments.
 The moderator can exchange private messages
with individual participants.
104

Online Focus Groups
Disadvantages:
Observation of participants’ body
language is not possible.
Participants cannot physically
inspect products or taste food items.
Participants can lose interest or
become distracted.
105
When Should Focus Groups Be Used?
 Focus groups should be used when the
research objective is to describe rather
than predict.
 How do consumers describe a better
package?
 How would they describe their satisfaction
with our service?
 How could they describe their ideas for an
ad campaign?
107
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Advantages of Focus Groups
 Generate fresh ideas
 Allow clients to observe their participants
 May be directed at understanding a wide variety
of issues
 Allow fairly easy access to special respondent
groups
Disadvantages of Focus Groups
•Representativeness of participants
•Dependence on the moderator
•Interpretation sometimes difficult
106
When Should Focus Groups Not Be
Used?
Focus groups should not be used
when the research questions require a
prediction or when a major decision
affecting the company’s livelihood
rests on the research results.
108

Some Objectives of Focus Groups
To generate ideas
To understand consumer vocabulary
To reveal consumer goods, motives,
perceptions, and attitudes about
products or services
To understand findings from
quantitative studies
109
Operational Aspects of Traditional
Focus Groups
 Where should a focus group meet?
 When should the moderator become
involved in the research project?
 How are focus group results reported
and used?
 What other benefits do focus groups
offer?
111
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Operational Aspects of Traditional
Focus Groups
How many people should be in a
focus group?
Who should be in the focus group?
How should focus group
participants be recruited and
selected?
110
Other Qualitative Techniques
 In-depth interview(IDI) is a set of
probing questions posed one-on-one to a
subject by a trained interviewer so as to
gain an idea of what the subject thinks
about something or why he or she
behaves a certain way.
 Laddering attempts to discover how
product attributes are associated with
consumer values.
112

Other Qualitative Techniques
 Projective techniques involve
situations in which participants are
placed in (projected into) simulated
activities in the hopes that they will
divulge things about themselves that
they might not reveal under direct
questioning
113
Evaluating other Quantitative Research
Techniques= Survey Learning Objectives
 To learn the four basic alternative
modes for gathering survey data
 To understand the advantages and
disadvantages of each of the various
data collection modes
 To comprehend the factors researchers
consider when choosing a particular
survey method
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Common Projective Techniques
 Word association test: involves reading
words to a respondent who then answers
with the first word that comes to his or
her mind
 Sentence completion: respondents are
given incomplete sentences and asked to
complete them in their own words
114
Learning Objectives
See it again
To become knowledgeable about
the details of different types of
survey data collection methods,
such as personal interviews,
telephone interviews, and
computer-administered interviews,
including online surveys
116
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Advantages of Surveys
Surveys Standardization
A survey involves interviews with a Ease of administration
large number of respondents using
Ability to tap the “unseen”
a predesigned questionnaire.
Suitability to tabulation and statistical
analysis
Sensitivity to subgroup differences
117 118

Four Alternative Data Collection

Modes Four Alternative
1. Person administered: an interviewer Data Collection Modes
reads questions, either face-to-face or
over the telephone, to the respondent
3. Self-administered: the
and records his or her answers. respondent completes the survey
2. Computer administered: the on his or her own.
interviewer basically verbalizes the 4. Mixed mode: a combination of
questions while relying to some degree
two or more methods
on computer technology to facilitate the
interview work.
119 120
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Learning Objectives
 To understand research design it is significant
Chapter 3  To appreciate areas of ethical sensitivity in research
 To learn how exploratory research design helps the
 Chapter III-1: RESEARCH DESIGN, researcher gain a feel for the problem by providing
MEASUREMENT AND SAMPLING background information, suggesting hypotheses, and
prioritizing research objectives
Research Design
 To know the fundamental questions addressed by
 Exploratory descriptive research and the different types of it
 Descriptive  To explain what is meant by causal research and to
describe types of experimental research designs
 Causal
 To know the different types of test marketing and how
to select test-market cities
121 122

3.1 Research Design

 Research design is a set of advance decisions that make
up the master plan specifying the methods and
procedures for collecting and analyzing the needed
information.
Why Is Research Design Important?
 Good research design is the “first rule of good
research.”
 Knowledge of the needed research design
allows advance planning so that the project may
be conducted in less time & typically at a cost
savings due to efficiencies.
123
Objectives of Research Design
To gain background information and
to develop hypotheses
To measure the state of a variable of
interest
To test hypotheses that specify the
relationships between two or more
variables
124
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Research Design: A Caution

Three Types of Research Designs
In many cases, research is an iterative
process. Exploratory
By conducting one research project, Descriptive
we learn that we may need additional Causal
research, which may result in using
multiple research designs.

125 126

Uses of Exploratory Research

Exploratory Research
Gain background information
Exploratory research is usually
conducted at the outset of research Define terms
projects. Clarify problems and hypothesis
It is usually conducted when the Establish research priorities
researcher does not know much
about the problems.
127 128

Exploratory Research Methods
 Secondary data analysis: the process of searching
for interpreting existing information relevant to the
research topic
 Experience surveys: refer to gathering information
from those to be knowledgeable on the issues
relevant to the research problem
 Key-informanttechnique: gathering information
from those thought to be knowledgeable on the
issues relevant to the problem
 Lead-user survey: used to acquire information
from lead users of a new technology
129
Descriptive Research
Descriptive research is undertaken
to describe answers to questions of
who, what, where, when, and how.
It is desirable when we wish to
project a study’s findings to a larger
population, if the study’s sample is
representative.
131
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Exploratory Research Methods
 Case analysis: a review of available
information about a former situation(s)
that has some similarities to the current
research problem
 Focus groups: small groups brought
together and guided by a moderator
through an unstructured, spontaneous
discussion for the purpose of gaining
information relevant to the research
problem 130
Descriptive Research Classifications
Cross-sectional studies
Longitudinal studies
132

Descriptive Research Studies
 Cross-sectional studies measure units
from a sample of the population at only one
point in time (or “snapshot”).
 Sample surveys are cross-sectional studies
whose samples are drawn in such a way as
to be representative of a specific
population.
 These studies are usually presented with a
margin of error.
133
Causal Research
 Causality may be thought of as
understanding a phenomenon in terms of
conditional statements of the form “If x,
then y.”
 Causal relationships are often determined
by the use of experiments.
135
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Descriptive Research Studies
 Longitudinal studies repeatedly
measure the same sample units of a
population over time.
 Since they involve multiple
measurements over time, they are often
described as “movies” of the
population.
134
Experiments
An experiment is defined as
manipulating an independent
variable to see how it affects a
dependent variable while also
controlling the effects of additional
extraneous variables.
136

Independent Variable
 Independent variables are those
variables that the researcher has control
over and wishes to manipulate—the 4 P’s.
 Examples are level of ad expenditure, type
of ad appeal, display location, method of
compensating salespersons, price, and
type of product.
137
Extraneous Variables
Extraneous variables are
those variables that may have
some effect on a dependent
variable yet are not independent
variables.
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Dependent Variables
Dependent variables are those
variables that we have little or
no direct control over but a
strong interest in changing.
138
Experimental Design
Experimental design is a
procedure for devising an
experimental setting such that a
change in a dependent variable
may be attributed solely to the
change in an independent variable.
140

Symbols of Experimental Design
 O = measurement, or observation, of a
dependent variable
 X = manipulation, or change, of an
independent variable
 R = random assignment of subjects to
experimental and control groups
 E = experimental effect (change in the
dependent variable due to the independent
variable)
141
Experimental Design
 A “true” experimental design: isolates
the effects of the independent variable on
the dependent variable while controlling
for the effects of any extraneous variables.
 Quasi-experimental design: ones that
do not properly control for the effects of
extraneous variables on our dependent
variable.
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Pretest and Posttest
Pretest refers to the measurement of
the dependent variable taken prior to
changing the independent variable.
Posttest refers to measuring the
dependent variable after changing
the independent variable.
142
Experimental Design
 Before-after with control group
design may be achieved by randomly
dividing subjects of the experiment in
two groups:
 The control group
 The experimental group
144

Experimental Design
Control group: control of
extraneous variables typically
achieved by the use of a second
group of subjects
Experimental group: the group
that has been exposed to a change
in the independent variable
145
How Valid are Experiments?
 Two forms of validity are used to assess the
validity of an experiment:
 Internal validity is concerned with the
extent to which the change in the dependent
variable is actually due to the change in the
independent variable.
 External validity refers to the extent that the
relationship observed between the
independent and dependent variables during
the experiment is generalizable to the “real
world.”
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How Valid Are Experiments?
 An experiment is valid if the following are
true:
 The observed change in the dependent
variable is due to the independent
variable.
 The results of the experiment apply to
the “real world” outside the experimental
setting.
146
Types of Experiments
Laboratory experiments are those
in which the independent variable is
manipulated and measures of the
dependent variable are taken in a
contrived, artificial setting for the
purpose of controlling the many
possible extraneous variables that
may affect the dependent variable.
148

Types of Experiments
Field experiments are those in
which the independent variables
are manipulated and the
measurements of the dependent
variable are made on test units in
their natural setting.
149
Types of Test Markets
 The standard test market is one in which the
firm tests the product or marketing-mix
variables through the company’s normal
distribution channels.
 Controlled test markets are conducted by
outside research firms that guarantee
distribution of the product through pre-
specified types and numbers of distributors.
151
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Test Marketing
 Test marketing is the phrase commonly
used to indicate an experiment, study, or
test that is conducted in a field setting.
 Main uses of test markets:
 To test sales potential for a new
product or service
 To test variations in the marketing mix
for a product or service
150
Types of Test Markets
 Electronic test markets are those in which a
panel of consumers has agreed to carry
identification cards that each consumer presents
when buying goods and services.
 Simulated test markets (STMs) are those in
which a limited amount of data on consumer
response to a new product is fed into a model
containing certain assumptions regarding
planned marketing programs, which generates
likely product sales volume.
152
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Selecting Test-Market Cities Pros and Cons of Test Marketing

Three main criteria: Advantages:
Representativeness Test marketing allows for the most
Degree of isolation accurate method of forecasting future
Ability to control distribution and
sales, and it allows firms the
promotion opportunity to pretest marketing-mix
variables.
153 154

Pros and Cons of Test Marketing

 Disadvantages:
Chapter III-2
 Test markets do not yield infallible results.
 Competitors may intentionally try to
Understanding Measurement,
sabotage test markets. Developing Questions, and
 Test markets bring about exposure of the
Designing the Questionnaire
product to the competition.
 Test markets may create ethical problems.

155 156
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Learning Objectives
 To understand the basics of measurement regarding
people, places, and things
 To examine three scale formats commonly used
 To see other scale formats commonly used
 To appreciate the basic functions of a questionnaire
 To learn the dos and don’ts of question wording
 To learn the basics of questionnaire organization
 To understand the advantages of computer-assisted
questionnaire design software
 To comprehend coding of questionnaires
Basic Concepts in Measurement
 Measurement: determining how much of a
property is possessed by an object
Properties: specific features or
characteristics of an object that can be used
to distinguish it from another object
Objective properties are physically verifiable.
Subjective properties are mental constructs.

157 158

Measuring Objective Properties

Objective properties are
physically verifiable
characteristics such as age,
gender, or number of bottles
purchased.

159 160
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Measuring Subjective Properties Basic Concepts in Measurement

 Subjective properties cannot be
Scale development is
directly observed because they are
mental constructs such as a person’s designing questions and
attitudes, opinions, or intentions. response formats to measure
 For subjective properties, researchers the subjective properties of an
must translate mental constructs onto object.
an intensity continuum.
161 162

Types of Measures Interval Scales Commonly Used

 Nominal scales: those that use only labels in Marketing Research
 Ordinal scales: those with which the
researcher can rank-order the respondents or Likert scale
responses Lifestyle inventory
 Scale measures: those in which the distance
between each level is known Semantic differential scale
 Interval scales: those in which the distance Stapel scale
between each descriptor is equal
 Ratio scales: ones in which a true zero exists
163 164
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Likert Scale
An interval scale commonly used
by marketing researchers is the
Likert scale, in which respondents
are asked to indicate their degree of
agreement or disagreement on a
symmetric agree–disagree scale for
each of a series of statements.
165 166

Lifestyle Inventory
A special application of the Likert
scale question form called the
lifestyle inventory takes into
account the values and personality
traits of people as reflected in their
unique activities, interests, and
opinions (AIOs) toward their work,
leisure time, and purchases.
Semantic Differential
 A semantic differential scale contains a
series of bipolar adjectives for the various
properties of the object under study, and
respondents indicate their impressions of
each property by indicating locations along
its continuum.
 A concern with this type of scale is the halo
effect, in which a general overall feeling
about a brand or store could bias responses
167
on its specific properties. 168
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Stapel Scale
The Stapel scale relies on
positive and negative numbers,
typically ranging from +5 to –5.

169 170

Interval Scales Used in Marketing

Interval Scales Used in Research
Marketing Research
 A symmetric interval scale is “balanced,” as it
Should the scale include a neutral has equal amounts of positive and negative
positions, and typically it has “no opinion” or
point? “neutral” separating the negative and positive
Should the scale be symmetric or sides.
nonsymmetric?  A nonsymmetric interval scale has mainly
degrees of positive positions and would be more
appropriate because most people do not think in
degrees of negative importance.
171 172
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Reliability and Validity of

Measurement Designing A Questionnaire
Reliability: respondent responds A questionnaire is the vehicle
in the same or a similar manner to used to present the questions
an identical or nearly identical the researcher desires
measure. respondents to answer.
Validity: accuracy of the
measurement
173 174

A Questionnaire Questionnaire Design Process

 Translates the research objectives into specific
questions asked of respondents
 Questionnaire design is a systematic
 Standardizes those questions and the response
categories so every participant responds to process in which the researcher
identical stimuli contemplates various question formats,
 Serves as an enduring record of the research considers a number of factors
 Depending on the data collection mode used, characterizing the survey at hand,
such as online, can speed up the process of data ultimately words the various questions
analysis
carefully, and organizes the questionnaire’s
 Contains the information on which reliability and
validity assessments may be made layout.
175 176

Questionnaire Design Process
The researcher should strive to
minimize question bias.
Question bias is the ability of a
question’s wording or format to
influence respondents’ answers.
177
Four “Dos” of Question Wording
Question evaluation is
scrutinizing the wording of a
question to ensure that question
bias is minimized and that the
question is worded so that
respondents understand it and can
respond to it with relative ease.
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Developing Questions
 Questionnaire development is the practice of
selecting appropriate response formats &wording
questions that are understandable, unambiguous,
and unbiased.
 Marketing researchers take great care in
developing research questions that measure:
 Attitudes
 Beliefs
 Behaviors
 Demographics
178
Four “Dos” of Question Wording
The question should be focused on a
single issue or topic.
The question should be brief.
The question should be
grammatically simple.
The question should be crystal clear.
180

Four “Don'ts” of Question Wording
 Do not “lead” the respondent to a particular
answer.
 A leading question gives a strong cue or
expectation as what answer to provide.
 Do not use “loaded” wording or phrasing.
 A loaded question has buried in its wording
elements a sneaky presupposition, or it might
make reference to universal beliefs or rules of
behavior.
181
Questionnaire Organization
 Questionnaire organization pertains to the
sequence of statements and questions that
make up a questionnaire.
 Well-organized questionnaires motivate
respondents to be conscientious and
complete.
 Poorly organized questionnaires discourage
and frustrate respondents and may even
cause them to stop answering questions in
the middle of the survey.
183
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Four “Dont’s” of Question Wording
 Do not use a “double-barreled” question.
 A double-barreled question is really two
different questions posed in one
question.
 Do not use words that overstate the case.
 An overstated question places undue
emphasis on some aspect of the topic.
182
The Introduction
 The introduction sets the stage; it is what
a potential respondent reads or hears
before he or she begins answering survey
questions.
 With an undisguised survey, the sponsor
is identified, but with a disguised survey,
the sponsor’s name is not divulged to
respondents.
184

The Introduction
 Incentives are offers to do something for the
respondent to increase the probability that the
respondent will participate in the survey.
 Other forms of incentives address respondent
anxieties concerning privacy. Two methods
tend to reduce anxieties and, therefore,
increase participation.
 The first is ensuring anonymity.
 The second method is confidentiality.
185
Question Flow
 Question flow pertains to the
sequencing of questions or blocks of
questions, including any instructions, on
the questionnaire.
 Warm-up questions are simple and easy-
to-answer questions that are used to get
the respondents’ interest and to
demonstrate the ease of responding to the
research request.
187
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The Introduction
Screening questions are used
to ferret out respondents who
do not meet qualifications
necessary to take part in the
research study.
186
Question Flow
 Transitions are statements or questions
used to let the respondent know that
changes in question topic or format are
about to happen.
 Response to a skipped question affects
which question will be answered next.
 Classification questions are used to
classify respondents.
188

Computer-Assisted Questionnaire
Design
Computer-assisted questionnaire
design refers to software that allows
users to use computer technology to
develop and disseminate
questionnaires and to retrieve and
analyze data gathered by the
questionnaire.
189
Coding The Questionnaire
 Codes are numbers associated with
question responses to facilitate data entry
and analysis.
 The codes for an “all that apply” question
are set up as though each possible
response was answered with “yes” or “no.”
191
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Skip and Display Logic
 Skip logic lets the questionnaire designer
direct the online survey to ask questions
based on previous answers.
 Display logic is similar to skip logic. The
survey displays or asks questions that are
appropriate based on the respondent’s
prior answers.
190
Pretesting The Questionnaire
A pretest is a dry run of a
questionnaire to find and repair
difficulties that respondents
encounter while taking the
survey.
192
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Learning Objectives
Chapter III-3  To become familiar with sample design
terminology
Selecting the Sample
 To understand the differences between
probability and nonprobability sampling
methods
 To learn how to take four types of
probability samples: simple random
samples, systematic samples, cluster
samples, and stratified samples
193 194

Learning Objectives
 To learn how to take four types of
Basic Concepts in Sampling
nonprobability samples: convenience Population: the entire group
samples, purposive samples, referral under study as defined by
samples, and quota samples research objectives
 To acquire the skills to administer
different types of samples, including
online samples
 To be able to develop a sample plan
195 196
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Basic Concepts in Sampling

Population

Basic Sampling Concepts

197 198

Census
A census is an accounting of
the complete population.
The Ethiopia census is taken
every 10 years by the Ethiopia
Central Statistical Authority
(www.csa.gov.et).
199
Basic Concepts in Sampling
Sample: a subset of the
population that should
represent the entire group
Sample unit: the basic level of
investigation
200
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Basic Concepts in Sampling Basic Concepts in Sampling

A sample frame: amaster list of Sampling error: any error in a
the entire population survey that occurs because a
Sampling frame error: the sample is used
degree to which the sample frame
fails to account for all of the
population
201 202

Basic Sampling Methods

Reasons for Taking a Sample
 Probability samples: ones in which
Practical considerations such as members of the population have a known
cost and population size chance (probability) of being selected
into the sample
Inability of researcher to
 Nonprobability samples: instances in
analyze huge amounts of data
which the chances (probability) of
generated by census selecting members from the population
into the sample are unknown
203 204

Probability Sampling Methods
Simple random sampling
Systematic sampling
Cluster sampling
Stratified sampling
205
Simple Random Sampling
 The random device method
involves using an apparatus of
some sort to ensure that every
member of the population has
the same chance of being
selected into the sample.
207
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Probability Sampling:
Simple random sampling: the
probability of being selected
into the sample is “known” and
equal for all members of the
population.
206
Simple Random Sampling
The random numbers method
involves small populations that
are easily accommodated by the
physical aspects of the device.
208

Probability Sampling
Systematic sampling: way to
select a random sample from a
directory or list that is much
more efficient than simple
random sampling
209
Probability Sampling
Area sampling is a form of
cluster sampling; the
geographic area is divided into
clusters.
211
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Probability Sampling
Cluster sampling: method in
which the population is divided
into subgroups, called “clusters,”
each of which could represent
the entire population
210
Area (Cluster) Sampling
 One-step area sample: the researcher may
believe the various geographic areas (clusters)
to be sufficiently identical to allow
concentrating his or her attention on just one
area and then generalizing the results to the
full population.
 Two-step area sample: the researcher selects
a random sample of areas, and then he or she
decides on a probability method to sample
individuals within the chosen areas. 212
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Cluster (Area) Sampling Probability Sampling

Disadvantage: the cluster Stratified sampling: separates the
specification error occurs when population into different
the clusters are not subgroups and then samples all of
homogeneous. these subgroups

213 214

Nonprobability Sampling
Nonprobability Sampling
With nonprobability sampling
Convenience samples: samples
methods selection is not based on
drawn at the convenience of the
fairness, equity, or equal chance.
interviewer
 Convenience sampling
Purposive samples: requires a
 Purposive sampling
judgment or an “educated guess” as
 Referral sampling
to who should represent the
 Quota sampling
population
215 216

Nonprobability Sampling
Referral samples: require
respondents to provide the names of
prospective respondents
Quota samples: specified
percentages of the total sample for
various types of individuals to be
interviewed
217
Selecting the Size of a Sample
219
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Online Sampling Techniques
 Online panels: large numbers of individuals
who have agreed to participate in online surveys
 River samples: created via the use of banners,
pop-ups, or other online devices that invite
website visitors to take part in the survey
 E-mail list samples: purchased or otherwise
procured from someone or some company that
has compiled email addresses of opt-in
members of the population of interest
218
Learning Objectives
 To understand the eight axioms underlying
sample size determination with a probability
sample
 To know how to compute sample size using the
confidence interval approach
 To become aware of practical considerations in
sample size determination
 To be able to describe different methods used
to decide sample size, including knowing
whether a particular method is flawed
220

Key Point
Many managers falsely
believe that sample size and
sample representativeness
are related, but they are not.
221
Key Point
Many practitioners have a large
sample bias, which is the false
belief that sample size determines
a sample’s representativeness.
223
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Key Point
A sample size decision is usually
a compromise between what is
theoretically perfect and what is
practically feasible.
222
Important Points about Sampling
Sampling method (not sample size) is
related to representativeness.
Only a probability sample (random
sample) is truly representative of a
population.
Sample size determines accuracy of
findings.
224
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Sample Accuracy
Sample accuracy: refers to how
close a random sample’s statistic
is to the true population’s value
it represents

225 226

Sample Size and Accuracy

Two Types of Error
Nonsampling error: pertains to
all sources of error other than
sample selection method and
sample size
Sampling error: involves sample
selection and sample size
227
Which is of these is more accurate?
A large probability sample or
A small probability sample?
The larger a probability sample is,
the more accurate it is (less sample
error).
228
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229 230

Sample Error Variability

Variability refers to how
similar or dissimilar
responses are to a given
question.

231 232

233
Confidence Interval Approach
The confidence interval approach
is based upon the normal curve
distribution.
We can use the normal distribution
because of the Central Limit
Theorem.
235
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The Confidence Interval Method
of Determining Sample Size
Confidence interval
approach: applies the concepts
of accuracy, variability, and
confidence interval to create a
“correct” sample size
234
Central Limit Theorem
Since 95% of samples drawn from a
population will fall within + or –
1.96 × sample error (this logic is
based upon our understanding of
the normal curve), we can make
the following statement . . .
236
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Central Limit Theorem

If we conducted our study over and
over, 1,000 times, we would expect
our result to fall within a known
range. Based upon this, we say that
we are 95% confident that the true
population value falls within this
range. FIGURE 10.3 Normal Curves with its 95%
Properties
237 238

Example - Page 243

239 240
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Confidence Interval Method of Determining

Sample Size

 1.96 × SD defines the end points of the distribution.

241 242

Confidence Interval Method of Determining

Sample Size
 Given the amount of variability in the population, the
sample size will affect the size of the confidence
Sample Size Formula
interval.
Need to know
Variability: p × q
Acceptable margin of sample
error: e
Level of confidence: z

243 244
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245 246

Example 1: Page 247 Example 2: Page 247

247 248

Sample Size for Estimating a Mean
 Sample size for estimating a mean requires a
different formula (see MRI, p. 248)
How to estimate s
 z is determined the same way (typically 1.96
or 2.58)
 s = variability indicated by an estimated
standard deviation
249
Estimating s  How to estimate s
How to estimate s
Estimate the range that the value
you are estimating can take
(minimum and maximum value)
and divide the range by 6
251
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Estimating s
Use standard deviation from a
previous study on the target
population
Conduct a pilot study of the target
population
250
Estimating s
 Why divide the range by 6?
 The range covers the entire distribution,
and ± 3 (or 6) standard deviations cover
99.9% of the area under the normal
curve. Since we are estimating one
standard deviation, we divide the range
by 6.
252
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Practical Considerations
Practical Considerations
How to estimate variability (p times How to determine the amount of
q) in the population? acceptable sample error.
Expect the worst cast (p = 50; q = 50)
Researchers should work with
Estimate variability
managers to make this decision.
Previous studies? How much error is the manager
Conduct a pilot study? willing to tolerate?
253 254

Practical Considerations Practical Considerations

How to decide on the level of
confidence to use.
Researchers typically use 95%
or 99%.
How to balance sample size with
cost of data collection.
Researchers should work with
managers to take cost into
consideration in this decision.

255 256
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Other Methods of Sample Size

Example, Page 250: What Cost? Determination
Arbitrary “percentage rule of thumb”
Conventional sample size
Statistical analysis approach
requirements
Cost basis

257 258

Sampling from Small Populations Sample Size for Small Population

With small populations, use the

finite population multiplier to
determine small size.

259 260
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Example: Page 255 Example: Page 255

261 262

Learning Objectives
 To learn about total error and how
nonsampling error is related to it
Dealing with field work  To understand the sources of data collection
errors and how to minimize them
 To learn about the various types of
nonresponse error and how to calculate
response rate to measure nonresponse error
 To become acquainted with data quality
errors and how to handle them
263 264
 2/28/2022

Dealing with Field Work Nonsampling Error

There are two main types of errors in Nonsampling error includes:
survey research:
All types of nonresponse error
Sampling error
Data gathering errors
Nonsampling error
Data handling errors
Nonsampling error includes all
Data analysis errors
errors in a survey except those due
to the sampling plan or sample size. Interpretation errors
265 266

Data Collection
Data collection is the phase of the
marketing research process during
which respondents provide their
answers or information to inquiries
posed to them by the researcher.
267
Possible Errors in
Field Data Collection
 Fieldworker error: errors committed
by the persons who administer the
questionnaires
 Respondent error: errors committed
on the part of the respondent
 Errors may be either intentional or
unintentional.
268

Intentional Fieldworker Errors
Intentional fieldworker
error: errors committed when a
data collection person willfully
violates the data collection
requirements set forth by the
researcher
269
Unintentional Fieldworker Error
Unintentional fieldworker
error: errors committed when
an interviewer believes he or she
is performing correctly
271
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Intentional Fieldworker Errors
 Interviewer cheating occurs when
the interviewer intentionally
misrepresents respondents.
 Leading respondents occurs when
the interviewer influences respondent’s
answers through wording, voice
inflection, or body language.
270
Unintentional Fieldworker Error
 Interviewer personal characteristics occurs
because of the interviewer’s personal
characteristics such as accent, sex, and
demeanor.
 Interviewer misunderstanding occurs when the
interviewer believes he or she knows how to
administer a survey but instead does it
incorrectly.
 Fatigue-related mistakes occur when the
interviewer becomes tired.
272

Intentional Respondent Error
Intentional respondent error:
errors committed when there are
respondents who willfully
misrepresent themselves in surveys
273
Unintentional Respondent Error
Unintentional respondent
error: errors committed when a
respondent gives a response
that is not valid but that he or
she believes is the truth
275
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Intentional Respondent Error
 Falsehoods occur when respondents
fail to tell the truth in surveys.
 Nonresponse occurs when the
prospective respondent fails to take
part in a survey or to answer specific
questions on the survey.
274
Unintentional Respondent Error
 Respondent misunderstanding
occurs when a respondent gives an
answer without comprehending the
question and/or the accompanying
instructions.
 Guessing occurs when a respondent
gives an answer when he or she is
uncertain of its accuracy.
276

Unintentional Respondent Error
 Attention loss occurs when a
respondent’s interest in the survey wanes.
 Distractions (such as interruptions) may
occur while questionnaire administration
takes place.
 Fatigue occurs when a respondent
becomes tired of participating in a survey.
277
Field Data Collection Quality Controls
 Control of unintentional fieldworker error
 Orientation sessions are meetings in
which the supervisor introduces the
survey and questionnaire administration.
 Role-playing sessions are dry runs or
dress rehearsals of the questionnaire
with the supervisor or some other
interviewer playing the respondent’s
role. 279
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Field Data Collection Quality Controls
Control of intentional fieldworker
error
Supervision uses administrators to
oversee the work of field data
collection workers.
Validation verifies that the
interviewer did the work.
278
Field Data Collection Quality Controls
 Control of intentional respondent error
 Anonymity occurs when the respondent is
assured that his or her name will not be
associated with his or her answers.
 Confidentiality occurs when the
respondent is given assurances that his or her
answers will remain private. Both assurances
are believed to be helpful in forestalling
falsehoods.
280

Field Data Collection Quality
Controls
 Control of intentional respondent error
 One tactic for reducing falsehoods and
nonresponse error is the use of
incentives, which are cash payments,
gifts, or something of value promised
to respondents in return for their
participation.
281
Control of Unintentional
Respondent Error
Well-drafted questionnaire
instructions and examples
are commonly used as a way
of avoiding respondent
confusion.
283
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Field Data Collection Quality Controls
 Control of intentional respondent error
 Another approach for reducing falsehoods is
the use of validation checks, in which
information provided by a respondent is
confirmed during the interview.
 A third-person technique can be used in a
question, in which instead of directly quizzing
the respondent, the question is couched in
terms of a third person who is similar to the
respondent.
282
Control of Unintentional Respondent
Error
 The researcher can switch the positions
of a few items on a scale, called
reversals of scale end- points,
instead of putting all of the negative
adjectives on one side and all the
positive ones on the other side.
 Prompters are used to keep
respondents on task and alert.
284
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Data Collection Errors with

Online Surveys
Nonresponse Error
Multiple submissions by the same
respondent Nonresponse: failure on the
Bogus respondents and/or part of a prospective respondent
responses to take part in a survey or to
Misrepresentation of the answer specific questions on the
population survey

285 286

Refusals to Participate
Nonresponse Error
A refusal occurs when a
Refusals to participate in potential respondent declines to
survey take part in the survey. Refusal
Break-offs during the interview rates differ by area of the
Refusals to answer certain country as well as by
demographics.
questions (item omissions)
287 288
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Refusals to Answer Specific

Break-Offs During the Interview
A break-off occurs when a
respondent reaches a certain point
and then decides not to answer any
more questions in the survey.
Questions
Item omission is the phrase
sometimes used to identify the
percentage of the sample that
did not answer a particular
question.

289 290

What Is a Completed Interview?

The marketing researcher must define
what is a “completed” interview.
A completed interview is often
defined as one in which all the
primary questions have been
answered.
291 292

Measuring Nonresponse Error
The marketing research
industry has an accepted way
to calculate a survey’s
response rate.
293
Nonresponse Error
 CASRO response rate formula:
295
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Nonresponse Error
 CASRO response rate formula:
294
Dataset, Coding Data, and the Data
Code Book
 A dataset is an arrangement of
numbers (mainly) in rows and columns.
 The dataset is created by an operation
called data coding, defined as the
identification of code values that are
associated with the possible responses
for each question on the questionnaire.
296
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Dataset, Coding Data, and the Data Code

Book
 In large-scale projects, and especially in cases
in which the data entry is performed by a
subcontractor, researchers use a data code
book which identifies the following:
 The questions on the questionnaire
 The variable name or label that is associated
with each question or question part
 The code numbers associated with each
possible response to each question
297 298

Data Quality Issues Data Quality Issues

 What to look for in raw data inspection:
 What to look for in raw data inspection:
 Incomplete response: an incomplete
response is a break-off where the
respondent stops answering in the
middle of the questionnaire.
 Nonresponses to specific questions
(item omissions)
299
 Yea-saying or nay-saying:
 A yea-saying pattern may be evident in the form
of all “yes” or “strongly agree” answers.
 The negative counterpart to the yea-saying is nay-
saying, identifiable as persistent responses in the
negative, or all “1” codes.
 Middle-of-the-road patterns: the middle-
of-the-road pattern is seen as a
preponderance of “no opinion” responses or
“3” codes. 300
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Chapter 4
Analyzing Data
Using Descriptive Analysis,
Performing, Population
Estimates, and Testing
Hypotheses
With brief examples
301 302

Learning Objectives
 To learn about the concept of data analysis and the Types of Statistical Analyses Used
functions it provides in Marketing Research
 To appreciate the five basic types of statistical analysis…
 To use measures of central tendency and dispersion… Descriptive analysis
 To learn how to obtain descriptive statistics with SPSS
 To understand the concept of statistical inference
Inferential analysis
 To learn how to estimate a population mean or Differences analysis
percentage
 To test a hypothesis about a population mean or % Associative analysis
 To learn how to perform and interpret statistical
inference with SPSS Predictive analysis
303 304

Descriptive Analysis
Used by marketing researchers
to describe the sample
dataset in such a way as to
portray the “typical” respondent
and to reveal the general pattern
of responses
305
Difference Analysis
Used to determine the degree to
which real and generalizable
differences exist in the
population to help the manager
make an enlightened decision on
which advertising theme to use
307
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Inference Analysis
Used when marketing
researchers use statistical
procedures to generalize the
results of the sample to the
target population it represents
306
Association Analysis
Investigates if and
how two variables are
related
308
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Predictive Analysis
Statistical procedures and
models to help make
forecasts about future
events

309 310

Understanding Data via Descriptive Measures of Central Tendency:

Analysis Summarizing the “Typical” Respondent
 Two sets of measures are used extensively to
 The basic data analysis goal involved in all
describe the information obtained in a sample.
measures of central tendency is to report
 Measures of central tendency or measures
a single piece of information that
that describe the “typical” respondent or
describes the most typical response to a
response
question.
 Measures of variability or measures that
 Central tendency applies to any statistical
describe how similar (dissimilar)
respondents or responses are to (from) measure used that somehow reflects a
“typical” respondents or responses typical or frequent response.
311 312

Measures of Central Tendency:
Summarizing the “Typical” Respondent
 Measures of central tendency:
 Mode: a descriptive analysis measure defined as
that value in a string of numbers that occurs most
often
 Median: expresses that value whose occurrence lies
in the middle of an ordered set of values
 Mean (or average):
313
Measures of Variability: Visualizing
the Diversity of Respondents
 A frequency distribution is a tabulation of
the number of times that each different
value appears in a particular set of values.
 The conversion is accomplished simply
through a quick division of the frequency
for each value by the total number of
observations for all values, resulting in a
percent, called a percentage distribution.
315
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Measures of Variability: Visualizing
the Diversity of Respondents
 All measures of variability are concerned
with depicting the “typical” difference
between the values in a set of values.
 There are three measures of variability:
 Frequency distribution
 Range
 Standard deviation
314
Measures of Variability: Visualizing
the Diversity of Respondents
 Range: identifies the distance between
lowest value (minimum) and the highest
value (maximum) in an ordered set of
values
 Standard deviation: indicates the
degree of variation or diversity in the
values in such a way as to be translatable
into a normal or bell-shaped curve
distribution 316
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317 318

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319 320
 2/28/2022

Recommendations for Scale

variable Table

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321 322

Example Scale Variables Table Recommendations for Categorical Data Table

323 324

Sample Nominal or Categorical
Variable Table
325
Statistical Inference: Sample Statistics
and Population Parameters
 Values that are computed from
information provided by a sample are
referred to as the sample’s statistics.
 Values that are computed from a
complete census, which are considered
to be precise and valid measures of the
population, are referred to as
parameters.
327
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Parameter Estimation: Estimating
the Population Percent or Mean
 Parameter estimation is the process of using
sample information to compute an interval
that describes the range of a parameter such as
the population mean or the population
percentage.
 It involves the use of three values:
 The sample statistic
 The standard error of the statistic
 The desired level of confidence
326
Statistical Inference: Sample Statistics
and Population Parameters
Inference is a form of logic in
which you make a general
statement (a generalization) about
an entire class based on what you
have observed about a small set of
members of that class.
328

Statistical Inference: Sample Statistics
and Population Parameters
Statistical inference is a set of
procedures in which the sample
size and sample statistic are used to
make an estimate of the
corresponding population
parameter.
329
Statistical Inference: Sample Statistics
and Population Parameters
 A sample statistic is usually a mean or
percentage.
 Standard error is the measure of
variability in the sampling distribution.
 A confidence interval is the degree of
accuracy desired by the researcher stated
in the form of a range with an upper and
lower boundary.
331
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Statistical Inference: Sample Statistics
and Population Parameters
 Two types of statistical inferences:
 Parameter estimate is used to
approximate the population value
(parameter) through the use of
confidence intervals.
 Hypothesis testing is used to compare
the sample statistic with what is believed
(hypothesized) to be the population value
prior to undertaking the study.
330
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332
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Hypothesis Tests
 Tests of an hypothesized population
parameter value:
 Test of an hypothesis about a
percent
 Test of an hypothesis about a mean
 The crux of statistical hypothesis
testing is the sampling distribution
Reprinted courtesy of International Business Machines Corporation, © SPSS, Inc., an IBM Company concept.
333 334

Reprinted courtesy of International Business Machines Corporation, © SPSS, Inc., an IBM Company

335 336
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FIGURE 12.11SPSS Output for the Test of a Hypothesis About a Mean

Reprinted courtesy of International Business Machines Corporation, © SPSS, Inc., an IBM Company

337 338

Learning Objectives
4.2
 To learn how differences are used for
Implementing Basic Difference market segmentation decisions
Tests  To understand when t tests or z tests are
appropriate and why you do not need to
worry about this issue when using SPSS
 To be able to test the differences between
two percentages or means for two
independent groups
339 340

Learning Objectives
 To know what a paired samples
difference test is and when to use it
 To comprehend ANOVA and how to
interpret ANOVA output
 To learn how to perform differences
tests for means using SPSS
341
Why Differences Are Important
Market Segmentation
Differences must be statistically
significant: the differences found
in the sample(s) truly exist in the
population(s) from which the
random samples are drawn.
343
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Why Differences are Important
 Market segmentation is based on differences
between groups of consumers.
 One commonly used basis for market
segmentation is the discovery of differences
that are the following:
 Statistically significant
 Meaningful
 Stable
 Actionable differences
342
Why Differences Are Important
Market Segmentation
Differences must be meaningful:
one that the marketing manager
can potentially use as a basis for
marketing decisions.
344

Why Differences Are Important
Market Segmentation
Differences should be stable:
one that will be in place for the
foreseeable future.
345
Testing for Significant Differences
Between Two Groups
Statistical tests are used when
researcher wants to compare the
means or percentages of two
different groups or samples.
347
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Why Differences Are Important
Market Segmentation
 Differences must be actionable: the
marketer can focus various marketing
strategies and tactics, such as product
design or advertising, on the market
segments to accentuate the differences
between segments.
346
The Use of a t Test or a z Test
 t Test: statistical inference test to be used
with small sample sizes (n ≤ 30)
 z Test: statistical inference test to be used
when the sample size is 30 or greater
 Note: Most computer statistical programs
report only the t value because it is
identical to the z value with large samples.
348

Differences Between Percentages with Two
Groups (Independent Samples)
Independent samples are treated
as representing two potentially
different populations.
349
Differences Between Percentages with Two
Groups (Independent Samples)
Significance of differences between
two percentages: alternative to the
null hypothesis is that there is a
true difference between the
population parameters.
351
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Differences Between Percentages with Two
Groups (Independent Samples)
 Null hypothesis: the hypothesis that
the difference in the population
parameters is equal to zero
 With a differences test, the null
hypothesis states that there is no
difference between the percentages (or
means) being compared.
350
352

Differences Between Percentages with Two
Groups (Independent Samples)
353
How Do You Know When the
Results Are Significant?
If the null hypothesis were true, we
would expect 95% of the z scores
computed from 100 samples to fall
between +1.96 and −1.96 standard
errors.
355
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How Do You Know When the
Results Are Significant?
If the null hypothesis is true, we would
expect there to be n0 differences
between the two percentages.
Yet we know that, in any given study,
differences may be expected due to
sampling error.
354
How Do You Know When the
Results Are Significant?
 If the computed z value is greater than
+1.96 or −1.96, it is not likely that the
null hypothesis of no difference is true.
Rather, it is likely that there is a real
statistical difference between the two
percentages.
356
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An Example: Testing the Difference An Example: Testing the Difference

Between Two Percentages
 Last year a Harris Poll showed 40% of
surveyed companies were coming to
college campuses to hire seniors (n = 300
companies surveyed).
 This year, the Harris Poll reported the
percentage is 65% (n = 100 companies
surveyed).
 Is this a significant difference?
357
Between Two Percentages
Applying the formula: P1 = 65 and P2
= 40, n1 = 100, n2 = 300
z = 4.51
Since the z value is greater than
+1.96, the difference between the two
percentages is significant.
358

Using SPSS for Differences Between

Percentages of Two Groups
 SPSS does not perform tests of
significance of the difference between
the percentages of two groups, but you
can use SPSS to generate the relevant
information and perform a hand
calculation.
 Use the SPSS command FREQUENCIES
to produce the percentages you need.
359
Testing the Difference Between
Means
Differences between two means
from independent samples
Differences between three or more
means from independent
samples
Differences between paired means
360
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Differences Between Means with Two Differences Between Means with Two Groups
Groups (Independent Samples) (Independent Samples)
 The procedure for testing the
significance of difference between two
means from two different groups is
identical to the procedure for testing
two percentages.
 Equations differ due to the use of a
metric (interval or ratio) scale.

361 362

Differences Between Means with Two

Groups (Independent Samples)
An Example: Testing the Difference
Between Two Means
Do male teens and female teens
drink different amounts of sports
drinks?

363 364
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An Example: Testing the Difference Between

Two Means An Example: Testing the Difference
Between Two Means
The difference between males (9
bottles) and females (7.5 bottles) is
significant; z =6.43.

365 366

367 368

Analysis of Variance
Analysis of variance (ANOVA):
used when comparing the means of
three or more groups
ANOVA is an investigation of the
differences between the group
means to ascertain whether
sampling errors or true population
differences explain their failure to
be equal.
369
371
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Basics of Analysis of Variance
ANOVA will “flag” when at least
one pair of means has a statistically
significant difference, but it does
not tell which pair.
Green flag procedure: If at least
one pair of means has a statistically
significant difference, ANOVA will
signal this by indicating
significance
370
372

373
ANOVA Advantages
 ANOVA has two distinct advantages over
performing multiple t tests of the
significance of the difference between
means.
 Immediately notifies researcher if
there is any significant difference
 Arranges the means so the significant
differences can be located and
interpreted easily
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374
Post Hoc Tests: Detect Statistically
Significant Differences Among Group Means
 Post hoc tests: options that are available to
determine where the pair(s) of statistically
significant differences between the means exist(s)
 Duncan’s multiple range test: provides output
that is mostly a “picture” of what means are
significantly different
 The Duncan multiple range test’s output is much
less statistical than most other post hoc tests and
is easy to interpret.
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Differences Between Two Means Within the

Same Sample (Paired Sample)
 You can test the significance of the difference
between two means for two different questions
answered by the same respondents using the
same scale.
 Paired samples test for the differences between
two means: a test to determine if two means of
two different questions using the same scale
format and answered by the same respondents in
the sample are significantly different.
377 378

Reporting Group Differences Tests

to Clients
 Differences may not be obvious to the client,
especially if the researcher does not take care
to highlight them.
 Group comparison table: summarizes the
significant differences in an efficient manner
 Reporting of findings has a significant ethical
burden for marketing researchers, as they
cannot choose to report only “good news” to
clients.
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Learning Objectives
 To learn what is meant by an “association”
Chapter 4.3 between two variables
 To examine various relationships that may be
Making Use of Associative Tests construed as associations
 To understand where and how cross-tabulations
with Chi-square analysis are applied
 To become familiar with the use and interpretation
of correlations
 To learn how to obtain and interpret cross-
tabulations, Chi-square findings, and correlations
with SPSS
381 382

Relationships Between Two Variables

Associative Analyses
 Relationship: a consistent, systematic
Associative analyses:
determine where stable
relationships exist between
two variables
383
linkage between the levels or labels for
two variables
 “Levels” refers to the characteristics of
description for interval or ratio scales.
 “Labels” refers to the characteristics of
description for nominal or ordinal
scales.
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Relationships Between
Example Relationship
Two Variables
Nonmonotonic relationship: two
variables are associated, but only in
a very general sense. The presence
(or absence) of one variable is
associated with the presence (or
absence) of another.
385 386

Relationships Between Two

Relationships Between Two Variables
Variables  Linear relationship: “straight-linear association”
between two variables
Monotonic relationship: the general
direction of a relationship between
two variables is known
Increasing relationship
Decreasing relationship

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Relationships Between Characterizing Relationships

Two Variables Between Variables
Curvilinear: some smooth  Presence: whether any systematic
(statistical) relationship exists between
curve pattern describes the two variables
association  Direction or pattern: whether the
relationship is positive or negative
 Strength of association: whether the
relationship is consistent
389 390

Cross-Tabulations
Cross-tabulation: rows and
columns defined by the categories
classifying each variable; used for
nonmonotonic relationships
Cross-tabulation cell: the
intersection of a row and a column
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Cross-Tabulations Cross-Tabulations
Cross-tabulation table: four types  Frequencies are the raw numbers in the
of numbers in each cell cell.
 Raw percentages are cell frequencies
Frequency
divided by the grand total.
Raw percentage
 Row percentages are the row cell
Column percentage frequencies divided by its row total.
Row percentage  Column percentages are the column cell
393
frequencies divided by its column total.
394

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Chi-Square Analysis
Chi-Square Analysis
 Assesses non-monotonic association in a cross-
tabulation table based upon differences
Chi-square analysis: the between observed and expected frequencies
examination of frequencies for two  The null hypothesis is that the two variables
nominal-scaled variables in a cross- are not related.
tabulation table to determine  Observed frequencies are the actual cell
counts in the cross-tabulation table.
whether the variables have a
 Observed frequencies are compared to
significant relationship expected frequencies.
397 398

Observed and Expected Frequencies Chi-Square Analysis

 Computed Chi-square values:
 Expected frequencies are the theoretical
frequencies in each cell that are derived from this
hypothesis of no association between the two
variables

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The Computed Chi-squareValue Degrees of Freedom

 The computed Chi-square value compares
observed to expected frequencies.
 The Chi-square statistic summarizes how
far away from the expected frequencies
the observed cell frequencies are found to
be.

401 402

The Chi-square Distribution

 The Chi-square distribution is skewed
to the right, and the rejection region is
always at the right-hand tail of the
distribution.
 The shape of the distribution is
dependent on degrees of freedom.

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How to Interpret a Chi-square Result

 The calculated (computed) value of Chi-square Cross-Tabulations
is compared to table value to determine
significance. Using SPSS, commands are
 SPSS and other statistical analysis programs ANALYZE, DESCRIPTIVE
compare calculated to table values and show the STATISTICS, CROSSTABS, and
probability for support of the null hypothesis.
within the CROSSTABS dialog box,
 A significant Chi-square means the researcher
should look at the cross-tabulation row and
STATISTICS, CHI-SQUARE.
column percentages to “see” the association
pattern.
405 406

SPSS Chi-Square Analysis

 Observed frequencies: counts for each
cell found in the sample
 Expected frequencies: calculated on the
null of “no association” between the two
variables under examination
 SPSS will calculate row, column, or both
percentages. See the CELLS box at the
Source: Reprint courtesy of International Business Machines Corporation,©SPSS, Inc., an IBM Company.
bottom of the CROSSTABS dialog box.
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Chi-square Analysis
How do I interpret a Chi-square
result?
The Chi-square analysis yields the
likelihood or probability that the
researcher would find evidence in
support of the null hypothesis.
Source: Reprint courtesy of International Business Machines Corporation,©SPSS, Inc., an IBM Company.

409 410

Reporting Findings
Chi-square Analysis  Whether to report row or column percents depends
on research objectives.
 How do I interpret a Chi-square result?
 If the P value is ≤ to 0.05, this means
there is little support for the null
hypothesis (no association).
 Therefore, we have a significant
association and have the PRESENCE of a
systematic relationship between the two
variables.
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Correlation and Covariation Correlation and Covariation

 The correlation coefficient: an index
 The amount of linear relationship between
number, constrained to fall between the range
two variables is communicated by the
of −1.0 and +1.0
absolute size of the correlation coefficient.
 The correlation coefficient communicates both
 The direction of the association is
the strength and the direction of the linear
communicated by the sign (+, −) of the
relationship between two metric variables.
correlation coefficient.
 Covariation: the amount of change in one
 Regardless of its absolute value, the
variable systematically associated with a
change in another variable correlation coefficient must be tested for
statistical significance.
413 414

Correlation Coefficients & Covariation Graphing Covariation Using Scatter Diagrams

 Covariation can be examined with use of a
scatter diagram.

A Scatter
Diagram Showing
Covariation

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Correlation Coefficient (r)

A correlation coefficient’s size
indicates the strength of
association between two variables.
The sign (+ or −) indicates the
direction of the association.

417 418

Pearson Product Moment Correlation Coefficient (r)

 Pearson product moment correlation: measures the
Graphing Covariation Using Scatter
degree of linear association between the two variables Diagrams
A scatter diagram plots the
points corresponding to each
matched pair of x and y
variables.

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Example

Using SPSS, commands are

ANALYZE, CORRELATE, and
BIVARIATE.

Source: Reprint courtesy of International Business Machines Corporation,©SPSS, Inc., an IBM Company.

421 422

Special Considerations
 Correlation:
 Assumes both variables share interval
scaling at minimum.
 Only takes into account the relationship
between two variables, not interaction
with other variables.
 Does not demonstrate cause and effect.
 Will not detect nonlinear relationships
Source: Reprint courtesy of International Business Machines Corporation,©SPSS, Inc., an IBM Company.
between variables.
423 424

Reporting Example
425
Learning Objectives
 To understand the basic concept of prediction
 To learn how marketing researchers use
regression analysis
 To learn how marketing researchers use
bivariate regression analysis
 To see how multiple regression differs from
bivariate regression
 To learn how to obtain and interpret multiple
regression analyses with SPSS
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Chapter 4.5
Understanding Predictive:
Basic Regression Analysis
426
Bivariate Linear Regression Analysis
 Regression analysis is a predictive
analysis technique in which one or more
variables are used to predict the level of
another by use of the straight-line
formula.
 Bivariate regression means only two
variables are being analyzed, and
researchers sometimes refer to this case
as “simple regression.”
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Bivariate Linear Regression Analysis Bivariate Linear Regression Analysis

 With bivariate analysis, one variable is used to
predict another variable.
 The straight-line equation is the basis of regression
analysis.

General Equation
for a Straight Line
in Graph Form

429 430

Basic Regression Analysis Concepts

Independent variable: used to
Improving Regression Analysis
predict the independent variable (x Identify any outlier: a data point
in the regression straight-line that is substantially outside the
equation) normal range of the data points
Dependent variable: that which being analyzed
is predicted (y in the regression
straight-line equation)
431 432

Computing the Slope and the
Intercept
Least squares criterion: used
in regression analysis;
guarantees that the “best”
straight-line slope and intercept
will be calculated
433
Multiple Regression Analysis
Described
Multiple regression means that
you have more than one
independent variable to predict a
single dependent variable.
With multiple regression, the
regression plane is the shape of the
dependent variables.
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Multiple Regression Analysis
 Multiple regression analysis uses the
same concepts as bivariate regression
analysis but uses more than one
independent variable.
 A general conceptual model identifies
independent and dependent variables
and shows their basic relationships to
one another.
434
Basic Assumptions in Multiple Regression
436
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Example of Multiple Regression Example of Multiple Regression

 Here is the resultant equation:
We wish to predict customers’
intentions to purchase a Lexus
automobile.
We performed a survey that
included an attitude-toward-Lexus
variable, a word-of-mouth variable,
and an income variable.
437 438

Example of Multiple Regression Example of Multiple Regression

 This multiple regression equation means  Calculation of one buyer’s Lexus purchase
intention using the multiple regression
that we can predict a consumer’s intention
equation:
to buy a Lexus level if you know three
variables:
 Attitude toward Lexus
 Friends’ negative comments about Lexus
 Income level using a scale with 10 income
levels
439 440

Example of Multiple Regression
 Multiple regression is a powerful tool
because it tells us the following:
 Which factors predict the dependent
variable
 Which way (the sign) each factor
influences the dependent variable
 How much (the size of bi) each factor
influences it
441
Multiple R
Multiple R ranges from 0 to +1 and
represents the amount of the
dependent variable that is
“explained,” or accounted for, by
the combined independent
variables.
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Multiple R
Multiple R, also called the coefficient
of determination, is a measure of
the strength of the overall linear
relationship in multiple regression.
It indicates how well the independent
variables can predict the dependent
variable.
442
Multiple R
Researchers convert the
multiple R into a percentage:
multiple R of .75 means that the
regression findings will explain
75% of the dependent variable.
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Basic Assumptions of Multiple Basic Assumptions of Multiple

Regression
Independence assumption: the
independent variables must be
statistically independent and
uncorrelated with one another (the
presence of strong correlations
among independent variables is
called multicollinearity).
445
Regression
 Variance inflation factor (VIF): can be
used to assess and eliminate
multicollinearity
 VIF is a statistical value that identifies
what independent variable(s)
contribute to multicollinearity and
should be removed.
 Any variable with VIF of greater than 10
should be removed. 446

Basic Assumptions in Multiple

Regression
 The inclusion of each independent
variable preserves the straight-line
assumptions of multiple regression
analysis. This is sometimes known as
additivity because each new
independent variable is added to the
regression equation. Figure 15.3SPSS Clickstream for Multiple Regression Analysis

Source: Reprint courtesy of International Business Machines Corporation, © SPSS, Inc., an IBM Company.

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“Trimming” the Regression

 A trimmed regression means that you
eliminate the nonsignificant
independent variables and then rerun the
regression.
 Run trimmed regressions iteratively until
Figure 15.4
SPSS Output for
Multiple Regression
all betas are significant.
 The resultant regression model expresses
Analysis
Source: Reprint courtesy

the salient independent variables.

of International Business
Machines Corporation,
©SPSS, Inc., an IBM
Company.

449 450

Special Uses of Multiple Regression

 Dummy independent variable: scales
with a nominal 0-versus-1 coding
scheme
 Using standardized betas to compare
Figure 15.5
SPSS Output for
Trimmed Multiple
independent variables: allows direct
Regression
Analysis comparison of each independent value
Source: Reprint courtesy
of International Business
Machines Corporation,
 Using multiple regression as a screening
device: identify variables to exclude
©SPSS, Inc., an IBM
Company.

451 452

Stepwise Multiple Regression
Stepwise regression is useful
when there are many independent
variables and a researcher wants to
narrow the set down to a smaller
number of statistically significant
variables.
453
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Stepwise Multiple Regression
 The one independent variable that is
statistically significant and explains the
most variance is entered first into the
multiple regression equation.
 Then, each statistically significant
independent variable is added in order of
variance explained.
 All insignificant independent variables
are excluded.
454
Regression Analysis Concepts
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Regression Analysis Concepts Regression Analysis Concepts

457 458

Three Warnings Regarding Multiple

Regression Analysis Reporting Findings
 Regression is a statistical tool, not a  Most important when used as a
cause-and-effect statement. screening device:
 Regression analysis should not be  Dependent variable
applied outside the boundaries of data  Statistically significant independent
used to develop the regression model. variables
 Regression analysis is complex and  Signs of beta coefficients
requires additional study.  Standardized bets coefficients for
significant variables
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Example 4.6 Qualitative Data Analysis

461 462

Learning Objectives
 To appreciate the importance of the marketing research
Chapter 5 report
 To examine new tools marketing researchers are using
Research Report to make report writing more efficient, including online
digital dashboards
 To know how to position the report for the audience
and to learn the elements that should be included in
the marketing research report
 To learn what plagiarism is, why it is a serious problem,
and how to properly reference sources
 To learn the basic guidelines for writing effective
463
marketing research reports 464

Learning Objectives
 To know how to use visuals, such as figures, tables,
charts, and graphs
 To learn how to make visuals, such as tables and
charts, using SPSS
 To learn to be ethically sensitive when making
visuals in a report or presentation
 To learn the basic principles for presenting your
report orally
 To learn how to access and use an online report
writing tool, the iReportWriting Assistant, that
will help you write better reports
465
The Importance of the Report
The marketing research report is
the product that represents the
efforts of the marketing research
team, and it may be the only part of
the project the client will see.
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Marketing Research Report
 The marketing research report: a
factual message that transmits research
results, vital recommendations,
conclusions, and other important
information to the client, who in turn
bases his or her decision making on the
contents of the report
466
Improving the Efficiency of
Report Writing
 Dashboards: provide digital interfaces
that allow users to quickly and easily see
information that is presented in a
simplified manner
 Online reporting software:
electronically distributes marketing
research reports to selected managers in
an interactive format that allows each user
to conduct his or her own analyses 468
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Know Your Audience Know Your Audience

 What message do you want to communicate?
 What is your purpose?
 Who is the audience?
 If there are multiple audiences, who is your
primary audience? Your secondary audience?
 What does your audience know?
 What does your audience need to know?
 Are there cultural differences you need to
consider?
469
 What biases or preconceived notions of the
audience might serve as barriers to your
message?
 What strategies can you use to overcome
these negative attitudes?
 Do demographic and lifestyle variables of
your audience affect their perspective of
your research?
 What are your audience’s interests, values,
and concerns?
470

Elements of the Report—Front

Matter Front Matter
 Title page: contains four major items of
The front matter consists all pages information:
that precede the first page of the  The title of the document
report: the title page, letter of  The organization/person(s) for whom the
authorization (optional), report was prepared
letter/memo of transmittal, table of  The organization/person(s) who prepared
contents, list of illustrations, and the report
abstract/executive summary.  The date of submission

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Front Matter Front Matter

 Table of contents: helps the reader locate
 Letter of authorization: the marketing
information in the research report
research firm’s certification to do the
 List of illustrations: if the report contains
project
tables and/or figures, include in the table of
 Letter/memo of transmittal: the letter contents a list of illustrations with page
of transmittal is used to release or deliver numbers on which they appear.
the document to an organization for  Tables: words and/or numbers arranged in
which you are mot a regular employee. rows and columns
The memo of transmittal is used to deliver  Figures: graphs, charts, maps, pictures, and
the document within your organization. so on.
473 474

Table of Contents Front Matter

 Abstract/executive summary: a “skeleton” of
your report that serves as a summary for the
busy executive or a preview for the in-depth
reader
The body is the bulk of the report. It
contains an introduction to the report, an
explanation of your method, a discussion
of your results, a statement of limitations,
and a list of conclusions and
recommendations.
475 476

Body
 Introduction: orients the reader to its
contents. It may contain a statement of
the background situation leading to the
problem, the statement of the problem,
and a summary description of how the
research process was initiated.
 Research objectives may be listed
either as a separate section or within the
introduction section.
477
Body
 Results: the most important portion of
your report. This section should logically
present the findings of your research and
may be organized around the research
objectives for the study.
 Limitations: typical limitations in
research reports often focus on but are not
limited to factors such as constraints of
time, money, size of sample, and
personnel.
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Body
Method: describes, in as much detail as necessary,
how you conducted the research, who (or what) your
subjects were, and what tools or methods were used to
achieve your objectives.
 Use of word method or methodology
 Method refers to the tools of scientific
investigation (and the tools used in a marketing
research project are described in detail in the
method section of the report).
 Methodology refers to the principles that
determine how such tools are deployed and
interpreted. 478
Body
 Conclusions and recommendations:
 Conclusions are the outcomes and
decisions you have reached based on
your research results.
 Recommendations are suggestions
for how to proceed based on the
conclusions.
 Writing, citation, referencing…..
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End Matter
 The end matter comprises the appendices,
Plagiarism which contain additional information to which
the reader may refer for further reading but that
Plagiarism refers to representing is not essential to reporting the data; reference
list; and endnotes.
the work of others as your own.
 A reference list contains all of the sources
Properly citing the work of others from which information was collected for the
avoids this problem and also adds report.
credibility to the report.  Endnotes are notes at the end of a document
that provide supplementary information or
comments on ideas provided in the body of the
481 report. 482

Form and Format

 Form and format concerns include the
following:
 Headings indicate the topic of each
section.
 Subheadings should divide the
information into segments.
 Visuals are tables, figures, charts,
diagrams, graphs, and other graphic
aids.
483 484

Style
 A good paragraph has one main idea, and a
topic sentence should state that main idea.
 The body of the paragraph provides the main
idea of the topic sentence by giving more
information, analysis, or examples.
 The transitional sentence tells readers where
they are headed.
 Controlling for the length of paragraphs
should encourage good communication. As a
rule, paragraphs should be short.
485
Using Visuals: Tables and Figures
 Common visuals include the following:
 Flow diagrams, which introduce a set of
topics and illustrate their relationships
 Maps, which define geographical
locations
 Photographs, which present an aura of
legitimacy because they are not “created”
in the sense that other visuals are created
 Drawings, which focus on visual details
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Using Visuals: Tables and Figures
 Tables, which identify exact values
 Graphs and charts, which illustrate
relationships among items
 Pie charts, which compare a specific
part of the whole to the whole
 Bar charts and line graphs, which
compare items over time or show
correlations among items
486
Tables
 Tables allow the reader to compare numerical
data.
 Effective table guidelines:
 Do not allow computer analysis to imply a
level of accuracy that is not achieved.
Limityour use of decimal places (12% or
12.2% instead of 12.223%).
 Place items you want the reader to compare
in the same column, not the same row.
488

Tables
 Effective table guidelines:
 If you have many rows, darken alternating
entries or double-space after every few
(five)entries to assist the reader in
accurately lining up items.
 Total columns and rows when relevant.
 Top-two box scores: in practice, researchers
commonly report the first two scores (or the
bottom two scores) in a table.
489
Bar Charts
 Bar charts are used often in reporting
survey data because they are easy to
interpret. They are useful to report the
magnitude of response or to show
magnitude or response comparisons
between groups. They are also useful
for illustrating change over time.
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Pie Charts
 When you want to illustrate the relative
sizes or proportions of one component
versus others, pie charts are useful.
 The pie chart is a circle divided into
sections. Each section represents a
percentage of the total area of the circle
associated with one component.
490
Line Graphs
Line graphs are easy to interpret if
they are designed properly. Line
graphs may be drawn in SPSS using
the graphs option.
Flow diagrams introduce a set of
topics and illustrate their
relationships.
492

Producing an Accurate and Ethical
Visual
 An ethical visual is totally objective in
terms of how information is presented
in the research report.
 Double- and triple-check all labels,
numbers, and visual shapes. A faulty or
misleading visual discredits your report
and work.
493
Presenting Your Research Orally
 Identify and analyze your audience. Consider the
same questions you addressed at the beginning of
the research process and at the beginning of this
chapter.
 Find out the expectations your audience has for your
presentation. Is the presentation formal or informal?
Does your audience expect a graphical presentation?
 Determine the key points your audience needs to
hear.
 Outline the key points, preferably on 3-by-5 cards or
in presentation software “notes” areas to which you
can easily refer. 495
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Producing an Accurate and
Ethical Visual
 Exercise caution if you use three-
dimensional figures. They may distort
the data by multiplying the value by
the width and the height.
 Make sure all parts of the scales are
presented. Truncated graphs (having
breaks in the scaled values on either
axis) are acceptable only if the audience
is familiar with the data.
494
Presenting Your Research Orally
 Present your points succinctly and clearly. The
written report will serve as a reference for
further reading.
 Make sure your visuals graphically and
ethically portray your key points.
 Practice your presentation. Be comfortable
with what you are going to say and how you
look. The more prepared you are and the
better you feel about yourself, the less you will
need to worry about jitters.
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Presenting Your Research Orally

Thank you!!!
 Check out the room and media equipment

The end
prior to the presentation.
 Arrive early.
 Be positive and confident. You are the
authority; you know more about your
subject than anyone else.
 Speak loudly enough for all in the room to
hear. Enunciate clearly. Maintain eye contact
and good posture. Dress appropriately.
497 498