Marketing Research 394 v1

MARKETING RESEARCH
!
Developed by
Prof. Sarang Kulkarni
On behalf of
! Prin. L.N. Welingkar Institute of Management Development & Research

 
Advisory Board
Chairman
Prof. Dr. V.S. Prasad
Former Director (NAAC)
Former Vice-Chancellor
(Dr. B.R. Ambedkar Open University)
Board Members
1. Prof. Dr. Uday Salunkhe  2. Dr. B.P. Sabale  3. Prof. Dr. Vijay Khole  4. Prof. Anuradha Deshmukh 
Group Director  Chancellor, D.Y. Patil University, Former Vice-Chancellor  Former Director 
Welingkar Institute of Navi Mumbai  (Mumbai University) (YCMOU)
Management Ex Vice-Chancellor (YCMOU)
Program Design and Advisory Team
Prof. B.N. Chatterjee Mr. Manish Pitke

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

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

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

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

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

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

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

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

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

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

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

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

Printed and Published on behalf of Prin. L.N. Welingkar Institute of Management Development & Research, L.N. Road, Matunga (CR), Mumbai - 400 019.
 
ALL RIGHTS RESERVED. No part of this work covered by the copyright here on may be reproduced or used in any form or by any means – graphic,
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permission of the publisher.
NOT FOR SALE. FOR PRIVATE CIRCULATION ONLY.
1st Edition (May, 2014) 2nd Edition June 2015)
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Preface
This book is meant for the both students and marketing researchers. The idea is
to introduce the concepts and practices to show how marketing information and
research tools be applied, not only to solve the various problems but also to
identify opportunities to grow in today’s growing competitive business. 
 
In changing markets, there is always a demand for useful or vital information
from all possible resources. 
 
Carefully analyzing the demand factor using marketing research tools help
management in making key decisions is the USP of our subject. This, in turn,
would help researchers to introduce better systems capable of creating
innovative solutions and creating a vital information database. 
 
The objectives of the marketing research are to discover what the consumers in
general want, need or aspire for. It also involves the study of consumer
behaviour. Once the research is completed, it offers the guidelines for suitably
positioning and marketing the product. 
 
The goal of marketing research is to identify and assess the need for changing
elements of the marketing mix which will impact consumer’s behaviour and
influence their buying decisions. 
 
All the topics are covered in this book, keeping in mind the students needs. The
book comprises 13 chapters and in general, covering most of the special aspects
of marketing research including concept of marketing research, importance of
marketing research, marketing research techniques, various methods of data
collection, methods of hypothesis testing, etc.  
 
In general, after studying the complete book, students will be able to
understand the concept of marketing research, research process and
applications of marketing research.
Prof. Sarang Kulkarni 
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Contents
Chapter 1: Introduction 4 – 44
Chapter 2: Marketing Research Process 45 – 82
Chapter 3: Various Sources of Market Information 83 – 117
Chapter 4: Market Research Techniques 118 – 142
Chapter 5: Marketing Mix Research 143 – 210
Chapter 6: Types of Research Designs 211 – 226
Chapter 7: Qualitative and Quantitative  
Research Techniques 227 – 249
Chapter 8: Causal and Experimental Research 250 – 261
Chapter 9: Primary Data 262 – 304
Chapter 10: Sampling 305 – 335
Chapter 11: Data Analysis 336 – 377
Chapter 12: Hypothesis Testing 378 – 400
Chapter 13: Report Writing 401 – 417
Chapter 14: Marketing Information System 418 – 431 
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INTRODUCTION
Chapter 1 - Introduction
Objectives
After studying this chapter you will be able to understand

• Understand the meaning and significance of the “marketing
research”
• Understand, how the marketing information can be utilized for the
purpose of making decisions
• How to relate the MR as a function to marketing environment,
consumers, and
• customers through information
• Understand how marketing research provides valuable inputs to
MIS and in turn help making critical decisions.
Structure
1.1 Introduction
1.2 Meaning and Definition of Marketing Research
1.3 Nature and Scope of Marketing Research
1.4 Significance of Marketing Research
1.5 Limitations and Obstacles in Acceptance
1.6 Ethics in Marketing Research
1.7 Types of Researches
1.8 Importance of MIS and DSS in Marketing Research.
1.9 Summary
1.10 Self Assessment Questions
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INTRODUCTION
1.1 INTRODUCTION
To undertake marketing effectively, businesses need information.
Information about customer wants, market demand, competitors,
distribution channels, etc.
Marketers often complain that they lack enough marketing

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

main sources:
1. Internal company information

E.g. sales, orders, customer profiles, stocks, customer service reports,
etc
2. Marketing intelligence
This can be information gathered from many sources, including
suppliers, customers, and distributors. Marketing intelligence is a
catch-all term to include all the everyday information about
developments in the market that helps a business prepare and adjust
its marketing plans. It is possible to buy intelligence information from
outside suppliers (e.g., Mintel, Dun & Bradstreet, Mori) who sets up
data gathering systems to support commercial intelligence products
that can be profitably sold to all players in a market.
3. Market research
Management cannot always wait for information to arrive in bits and
pieces from internal sources. Also, sources of market intelligence
cannot always be relied upon to provide relevant or up to date
information (particularly for small or niche market segments). In such
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INTRODUCTION
circumstances, businesses often need to undertake specific studies to

support their marketing strategy - this is market research.
The task of marketing research (MR) is to provide management with

relevant, accurate, reliable, valid and current information.
Competitive marketing environment and the ever increasing costs
attributed to poor decision making, require that marketing research
provide sound information. Sound decisions are not based on gut
feeling, intuition or even pure judgment.
Marketing managers make numerous strategic and tactical decisions

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

the relevant information and marketing decisions were made by the
managers. However, the roles are changing and marketing
researchers are becoming more involved in decision making, whereas
marketing managers are becoming more involved with research. The
role of marketing research in managerial decision making is explained
further using the framework of the "DECIDE" model:
The DECIDE model conceptualizes managerial decision making as a

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

Marketing research has evolved in the decades since Arthur Nielsen
established it as a viable industry, one that would grow hand in hand
with the B2B and B2C economies. Markets naturally evolve, and since
the birth of ACNielsen, when research was mainly conducted by in-
person focus groups and pen-and-paper surveys, the rise of the
Internet and the proliferation of corporate websites have changed the
means by which research is executed.
Web analytics were born out of the need to track the behavior of site
visitors and, as the popularity of e-commerce and web advertising
grew, businesses demanded details on the information created by new
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INTRODUCTION
practices in web data collection, such as click-through and exit rates.

As the Internet boomed, websites became larger and more complex
and the possibility of two-way communication between businesses
and their consumers became a reality. Provided with the capacity to
interact with online customers, Researchers were able to collect large
amounts of data that were previously unavailable, further propelling
the Marketing Research Industry.
In the new millennium, as the Internet continued to develop and

websites became more interactive, data collection and analysis
became more commonplace for those marketing research firms whose
clients had a web presence. With the explosive growth of the online
marketplace came new competition for companies; no longer were
businesses merely competing with the shop down the road —
competition was now represented by a global force. Retail outlets
were appearing online and the previous need for bricks-and-mortar
stores was diminishing at a greater pace than online competition was
growing.
With so many online channels for consumers to make purchases,
companies needed newer and more compelling methods, in
combination with messages that resonated more effectively, to capture
the attention of the average consumer.
Having access to web data did not automatically provide companies

with the rationale behind the behavior of users visiting their sites,
which provoked the marketing research industry to develop new and
better ways of tracking, collecting and interpreting information. This
led to the development of various tools like online focus groups and
pop-up or website intercept surveys. These types of services allowed
companies to dig deeper into the motivations of consumers,
augmenting their insights and utilizing this data to drive market
share.
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INTRODUCTION
As information around the world became more accessible, increased

competition led companies to demand more Market Researchers. It
was no longer sufficient to follow trends in web behavior or track
sales data; companies now needed access to consumer behaviour
throughout the entire purchase process. This meant that the
Marketing Research Industry, again, needed to adapt to the rapidly
changing needs of the marketplace, and to the demands of companies
looking for a competitive edge.
Today, Marketing Research has adapted to innovations in technology

and the corresponding ease with which information is available. B2B
and B2C companies are working hard to stay competitive and they
now demand both quantitative (“What?”) and qualitative (“Why?”)
marketing research in order to better understand their target audience
and the motivations behind customer behaviors.
This demand is driving marketing researchers to develop new

platforms for interactive, two-way communication between their
firms and consumers. Mobile devices such as smartphones are the
best example of an emerging platform that enables businesses to
connect with their customers throughout the entire buying process.
Innovative research firms, such as On Research with their On Mobile
app, are now providing businesses with the means to reach
consumers from the point of initial investigation through to the
decision and, ultimately, the purchase.
As personal mobile devices become more capable and widespread,

the marketing research industry will look to further capitalize on this
trend. Mobile devices present the perfect channel for research firms to
retrieve immediate impressions from buyers and to provide their
clients with a holistic view of the consumers within their target
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INTRODUCTION
markets, and beyond. Now, more than ever, innovation is the key to
success for marketing researchers. Marketing research clients are
beginning to demand highly personalized and specifically-focused
products from the MR firms; big data is great for identifying general
market segments, but is less capable of identifying key factors of
niche markets, which now defines the competitive edge companies
are looking for in this mobile-digital age.
1.2 MEANING AND DEFINITION OF MARKETING

RESEARCH
"Marketing research is the function that links the consumer,

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

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

objective identification, collection, analysis and dissemination of
information for the purpose of assisting management in decision
making related to the identification and solution of problems and
opportunities in marketing.
1.3 NATURE AND SCOPE OF MARKETING RESEARCH

Marketing research is often partitioned into two sets of categorical
pairs, either by target market:
• Consumer marketing research, and

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

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

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

required at all stages of the marketing research process. The
procedures followed at each stage are methodologically sound, well
documented, and, as much as possible, planned in advance.
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INTRODUCTION
Marketing research uses the scientific method in that data are

collected and analyzed to test prior notions or hypotheses. Experts in
marketing research have shown that studies featuring multiple and
often competing hypotheses yield more meaningful results than those
featuring only one dominant hypothesis.
Marketing research is objective. It attempts to provide accurate

information that reflects a true state of affairs. It should be conducted
impartially. While research is always influenced by the researcher's
research philosophy, it should be free from the personal or political
biases of the researcher or the management. Research which is
motivated by personal or political gain involves a breach of
professional standards. Such research is deliberately biased so as to
result in predetermined findings. The objective nature of marketing
research underscores the importance of ethical considerations. Also,
researchers should always be objective with regard to the selection of
information to be featured in reference texts because such literature
should offer a comprehensive view on marketing. Research has
shown, however, that many marketing textbooks do not feature
important principles in marketing research.
Organizations engage in marketing research for two reasons: (1) to

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

problems which are, perhaps, not apparent on the surface and yet
exist or are likely to arise in the future like company image, market
characteristics, sales analysis, short-range and long-range forecasting
and business trends research. Research of this type provides
information about the marketing environment and helps diagnose a
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INTRODUCTION
problem. For example, the findings of problem solving research are

used in making decisions which will solve specific marketing
problems.
The Stanford Research Institute, on the other hand, conducts an

annual survey of consumers that is used to classify persons into
homogeneous groups for segmentation purposes. The National
Purchase Diary panel (NPD) maintains the largest diary panel in the
United States.
Standardized services are research studies conducted for different

client firms but in a standard way. For example, procedures for
measuring advertising effectiveness have been standardized so that
the results can be compared across studies and evaluative norms can
be established. The Starch Readership Survey is the most widely used
service for evaluating print advertisements; another well-known
service is the Gallup and Robinson Magazine Impact Studies. These
services are also sold on a syndicated basis.
Customized services offer a wide variety of marketing research

services customized to suit a client's specific needs. Each marketing
research project is treated uniquely.
Limited-service suppliers specialize in one or a few phases of the

marketing research project. Services offered by such suppliers are
classified as field services, coding and data entry, data analysis,
analytical services and branded products. Field services collect data
through the internet, traditional mail, in-person, or telephone
interviewing, and firms that specialize in interviewing are called field
service organizations. These organizations may range from small
proprietary organizations which operate locally to large multinational
organizations with WATS line interviewing facilities. Some
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INTRODUCTION
organizations maintain extensive interviewing facilities across the

country for interviewing shoppers in malls.
• Coding and data entry services include editing completed

questionnaires, developing a coding scheme, and transcribing the
data on to diskettes or magnetic tapes for input into the computer.
NRC Data Systems provides such services.
• Analytical services include designing and pretesting
questionnaires, determining the best means of collecting data,
designing sampling plans, and other aspects of the research design.
Some complex marketing research projects require knowledge of
sophisticated procedures, including specialized experimental
designs, and analytical techniques such as conjoint analysis and
multidimensional scaling. This kind of expertise can be obtained
from firms and consultants specializing in analytical services.
• Data analysis services are offered by firms, also known as tab
houses, that specialize in computer analysis of quantitative data
such as those obtained in large surveys. Initially most data analysis
firms supplied only tabulations (frequency counts) and cross
tabulations (frequency counts that describe two or more variables
simultaneously). With the proliferation of software, many firms
now have the capability to analyze their own data, but data
analysis firms are still in demand.
• Branded marketing research products and services are specialized
data collection and analysis procedures developed to address
specific types of marketing research problems. These procedures
are patented, given brand names and marketed like any other
branded product.
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INTRODUCTION
1.4 SIGNIFICANCE OF MARKETING RESEARCH

A business faces many types of marketing problems. It faces problems
about its product, price, place and promotion. It also faces problems
about product design packaging, branding, marketing channels,
advertising, etc. Some marketing problems are very serious.
Therefore, in marketing, managers use marketing research as an
important tool to solve marketing problems.
The importance of marketing research in management extends to

intelligent decision making, maximizing profits, increasing the sales,
minimizing the risks and ascertaining whether a new product will be
profitable in a given market at a given time.
Toying with a new product idea, wanting to boost up your sales or

planning to launch a new product, the importance of marketing
research has grown unprecedentedly, especially in the times of
recession. In fact, Philip Kotler, the marketing guru, acknowledges
that it is only by marketing research, planning, implementation and
control that effective marketing management can be accomplished
The need and importance of marketing research are depicted below.
! Need and Importance of Marketing Research
1. Marketing Research (MR) provides valuable data.
2. It studies provides data about consumer behaviour.
3. It helps to select suitable sales promotional techniques.
4. It supplies market-related information.
5. It helps a company to evaluate its marketing performance.
6. It also has miscellaneous importance.
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INTRODUCTION
1. Provides valuable data

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

very successful.
2. Studies consumer behaviour

Marketing research provides data about consumer behavior. It
provides data about age, incomes, likes, dislikes, etc., of the
consumers. It also finds out the opinions of the consumers about a
company’s product. This data is used to make production and
marketing policies.
3. Selects promotional techniques

Marketing research helps the company to select suitable sales
promotion techniques. It helps to select marketing techniques. It helps
to select proper media for advertising. It helps to solve the problems
of after-sales service. It also helps to prepare the budget for
advertising and sales promotion.
4. Supplies marketing information

Marketing research supplies data about the market situation.
This market-related data is used to find out:
1. The present and future demand and supply position.
2. The level of competition and steps taken to control it.
3. Market opportunities.
4. The cause of fall in sales level.
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INTRODUCTION
5. Evaluates marketing performance

Marketing research helps the company to evaluate its marketing
performance and to take steps to improve it.
Marketing research is used to find out the effect of price, package,

brand name, etc., on sales. It is used to find consumers’ reaction
towards the company’s product. It is used to evaluate the inventory
and pricing policies. It is also used to evaluate the effectiveness of
advertising, sales promotion techniques, channels of distribution, etc.
6. Miscellaneous needs and importance

Miscellaneous needs and importance of marketing research are as
follows:
• Marketing research improves the efficiency of the marketing
department. This creates goodwill and good reputation.
• It helps the marketing manager to take the rational and effective
decisions.
• It helps to choose suitable staff for doing research.
• It is used to make growth and expansion programs.
• It benefits all, i.e., it benefits the company, distributor, advertising
agency, consumer, government and the entire society.
So, marketing research is very helpful to everyone. But it is most

useful to a manufacturer because it helps to answer the basic
questions, i.e., what, where, when, who, whom and how to sell?
1.5 LIMITATIONS AND OBSTACLES IN MARKETING

RESEARCH
"Marketing research does not make decisions and it does not
guarantee success". Marketing managers may seek advice from
marketing research specialists, and indeed it is important that
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INTRODUCTION
research reports should specify alternative courses of action and the

probability of success, where possible, of these alternatives.
However, it is marketing managers who make the final marketing

decision and not the researcher. The second observation, that
marketing research does not guarantee success, is simply a
recognition of the environment within which marketing takes place.
In the fields of science and engineering researchers are often working
with deterministic models of the world where y = f(x). That is, x is a
necessary and sufficient condition for y to occur.
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 modelling.
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.
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)...
This reflects the fact that in order for a target market share to be
reached some promotion (amount unknown) is necessary but will not
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INTRODUCTION
be sufficient, on its own, to achieve the target. Y is a function of a

number of variables and the interactions between them. The model is
further complicated by the fact that these interactions are themselves
often not understood. It is for these reasons that marketing
researchers cannot guarantee that decisions based on their
information will always prove 'successful'. Rather the best that a
competent researcher and a well designed study will be able to offer
is a reduction in the amount of uncertainty surrounding the decision.
Following are the Main Limitations of Marketing Research

• Marketing Research (MR) is not an exact science though it uses the
techniques of science. Thus, the results and conclusions drawn
upon by using MR are not very accurate
• The results of MR are very vague as MR is carried out on
consumers, suppliers, intermediaries, etc., who are humans.
Humans have a tendency to behave artificially when they know
that they are being observed.
• Thus, the consumers and respondents upon whom the research is
carried behave artificially when they are aware that their attitudes,
beliefs, views, etc., are being observed.
• MR is not a complete solution to any marketing issue as there are
many dominant variables between research conclusions and market
response.
• MR is not free from bias. The research conclusions cannot be
verified. The reproduction of the same project on the same class of
respondents give different research results.
• Inappropriate training to researchers can lead to misapprehension
of questions to be asked for data collection.
• Many business executives and researchers have ambiguity about
the research problem and its objectives. They have limited
experience of the notion of the decision making process. This leads
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INTRODUCTION
to carelessness in research and researchers are not able to do

anything real.
• There is less interaction between the MR department and the main
research executives. The research department is in segregation. This
all makes research ineffective.
• MR faces time constraint. The firms are required to maintain a
balance between the requirement for having a broader perspective
of customer needs and the need for quick decision making so as to
have competitive advantage.
• Huge cost is involved in MR as collection and processing of data
can be costly. Many firms do not have the proficiency to carry wide
surveys for collecting primary data, and might not also be able to
hire specialized market experts and research agencies to collect
primary data. Thus, in that case, they go for obtaining secondary
data that is cheaper to obtain.
• MR is conducted in open marketplace where numerous variables
act on research settings.
Obstacles that a Company May Face at the Time of Conducting

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

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

competitive advantage, market leadership and innovation. Though it
sounds tempting from a business point of view, the question is
whether it is possible to achieve this ideal outcome all the time
through market research.
In reality, the market has become so vast that it is no longer easy to
study the buying behaviour of consumers and gather insights. It is
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INTRODUCTION
true that the data gathered from market research provide a strong
avenue for strategical decision making. But the usefulness of the
accumulated data largely depends on its statistical and analytical
interpretation. The ultimate goal of a research is to turn buyers’
insights into competitive advantage. It is difficult for the leaders to
determine trends and turn them into actionable strategies from the
quantitative analysis alone. An equal effort and investment is
required for qualitative behavioural research also.
Some of the common obstacles faced in Business to Business (B2B)

organisations that hinder the business to buyers’ insights into
actionable strategies are:
Scope for Study

Most of the time the scope of gathering information is too narrow and
focused only on specific marketing message that will fulfil the
assumed needs. If a product is launched on the basis of inadequate
research, future of such a product is uncertain. It may click or may be
completely rejected by the customers. Businesses in this competitive
scenario cannot afford to roll out a product that will not meet the
expectations of customers or gain a profitable market share.
Pressure to Derive Profit

Quarterly and annual profitability pressure is so dominant, that the
marketing department hardly has the time to study the outcome of
market research in depth and predict buying trends. As a result the
customer focused approaches slowly fade in lieu of achieving targets.
But the pun is that profit is so interrelated with business approach,
that deterioration in the way of providing services will ultimately
have an impact on the overall profitability.
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INTRODUCTION
Gap between Management and the Research Personnel

The job of research department is over with the collection of
quantitative or qualitative insights. Though they provide the content
and analysis, they hardly engage in decision making. An
insurmountable gap, is created between the top management and the
research professionals, that makes the predictions superficial.
Overload of Information
This is a very common problem that almost every research initiative
has to meet. When senior executives are presented with the research
report they are lost in charts, volumes of statistics and analytics. They
hardly can gather meaningful insights from the pages of reports laden
with information.
Today’s dynamic and ever evolving market structure require new

thinking and initiatives. The purpose of market research is to drive
business growth in the right direction. The insights of the customers
are very helpful in this regard and market research is the only way to
understand customers’ way of thinking and analyse their buying
trends. So, a business cannot sustain or grow without performing
research.
Therefore, it must take resort of a third party to perform the market

research, analyze the report and help the business to make strategic
decisions on the basis of the outcome.
1.6 ETHICS IN MARKETING RESEARCH

Market research is the collection and analysis of information about
consumers, competitors and the effectiveness of marketing programs.
With market research, businesses can make decisions based on how
the responses of the market, leading to a better understanding of how
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INTRODUCTION
the business has to adapt to the changing market. It is used to

establish which portion of the population will or does purchase a
product, based on age, gender, location, income level, and many other
variables. This research allows companies to learn more about past,
current, and potential customers, including their specific likes and
dislikes.
Ethical danger points in market research include:

• Invasion of privacy
• Stereotyping
People affected by unethical market research:
• Public
• Respondents
• Client
• Researcher
Approaches to privacy can, broadly, be divided into two categories:

free market, and consumer protection. In a free market approach,
commercial entities are largely allowed to do what they wish, with
the expectation that consumers will choose to do business with
corporations that respect their privacy to a desired degree. If some
companies are not sufficiently respectful of privacy, they will lose the
market share. In a consumer protection approach, in contrast, it is
claimed that individuals may not have the time or knowledge to
make informed choices, or may not have reasonable alternatives
available. Stereotyping occurs because any analysis of real population
needs to make approximations and place individuals into groups.
However if conducted irresponsibly, stereotyping can lead to a variety
of ethically undesirable results. In the American Marketing
Association Statement of Ethics, stereotyping is countered by the
obligation to show respect ("Acknowledge the basic human dignity of
all stakeholders").
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INTRODUCTION
Marketing research has experienced a resurgence with the

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

Marketing research techniques come in many forms, including:
• Ad Tracking – periodic or continuous in-market research to monitor

a brand’s performance using measures such as brand awareness,
brand preference, and product usage. (Young, 2005)
• Advertising Research – used to predict copy testing or track the
efficacy of advertisements for any medium, measured by the ad’s
ability to get attention (measured with attention tracking),
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INTRODUCTION
communicate the message, build the brand’s image, and motivate

the consumer to purchase the product or service. (Young, 2005)
• Brand equity research — how favorably do consumers view the
brand?
• Brand association research — what do consumers associate with the
brand?
• Brand attributes research — what are the key traits that describe the
brand promise?
• Brand name testing - what do consumers feel about the names of
the products?
• Commercial eye tracking research — examine advertisements,
package designs, websites, etc., by analyzing visual behavior of the
consumer
• Concept testing - to test the acceptance of a concept by target
consumers
• Cool hunting - to make observations and predictions in changes of
new or existing cultural trends in areas such as fashion, music,
films, television, youth culture and lifestyle
• Buyer decision making process research — to determine what
motivates people to buy and what decision making process they
used over the last decade. Neuro marketing emerged from the
convergence of neuroscience and marketing, aiming to understand
consumer decision making process
• Copy testing – predicts in-market performance of an ad before it
airs by analyzing audience levels of attention, brand linkage,
motivation, entertainment, and communication, as well as breaking
down the ad’s flow of attention and flow of emotion. (Young, p 213)
• Customer satisfaction research - quantitative or qualitative studies
that yields an understanding of a customer's satisfaction with a
transaction
• Demand estimation — to determine the approximate level of
demand for the product
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INTRODUCTION
• Distribution channel audits — to assess distributors’ and retailers’

attitudes toward a product, brand, or company
• Internet strategic intelligence — searching for customer opinions in
the Internet: chats, forums, web pages, blogs... where people
express freely about their experiences with products, becoming
strong opinion formers.
• Marketing effectiveness and analytics — building models and
measuring results to determine the effectiveness of individual
marketing activities.
• Mystery consumer or mystery shopping - an employee or
representative of the market research firm anonymously contacts a
salesperson and indicates he or she is shopping for a product. The
shopper then records the entire experience. This method is often
used for quality control or for researching competitors' products.
• Positioning research — how does the target market see the brand
relative to competitors? What does the brand stand for?
• Price elasticity testing — to determine how sensitive customers are
to price changes
• Sales forecasting — to determine the expected level of sales given
the level of demand. with respect to other factors like advertising
expenditure, sales promotion, etc.
• Segmentation research - to determine the demographic,
psychographic and behavioral characteristics of potential buyers
• Online panel - a group of individual who accepted to respond to
marketing research online
• Store audit — to measure the sales of a product or product line at a
statistically selected store sample in order to determine market
share, or to determine whether a retail store provides adequate
service
• Test marketing — a small-scale product launch used to determine
the likely acceptance of the product when it is introduced into a
wider market
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INTRODUCTION
• Viral Marketing Research - refers to marketing research designed to

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

problem identification research or as problem solving research.
There are two main sources of data — primary and secondary.

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

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

basic idea about the solution at the preliminary stages of research. It
may serve as the input to conclusive research. Exploratory research
information is collected by focus group interviews, reviewing
literature or books, discussing with experts, etc. This is unstructured
and qualitative in nature. If a secondary source of data is unable to
serve the purpose, a convenience sample of small size can be
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INTRODUCTION
collected. Conclusive research is conducted to draw some conclusion

about the problem. It is essentially, structured and quantitative
research, and the output of this research is the input to management
information systems (MIS).
Exploratory research is also conducted to simplify the findings of the

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

Methodologically, marketing research uses the following types of
research designs:
Based on questioning
• Qualitative marketing research - generally used for exploratory
purposes — small number of respondents — not generalizable to
the whole population — statistical significance and confidence not
calculated — examples include focus groups, in-depth interviews
and projective techniques
• Quantitative marketing research - generally used to draw
conclusions — tests a specific hypothesis - uses random sampling
techniques so as to infer from the sample to the population —
involves a large number of respondents — examples include
surveys and questionnaires. Techniques include choice modeling,
maximum difference, preference scaling and covariance analysis.
Based on observations
• Ethnographic studies — by nature qualitative, the researcher
observes social phenomena in their natural setting — observations
can occur cross-sectionally (observations made at one time) or
longitudinally (observations occur over several time-periods) -
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INTRODUCTION
examples include product-use analysis and computer cookie traces.

See also Ethnography and Observational techniques.
• Experimental techniques - by nature quantitative, the researcher
creates a quasi-artificial environment to try to control spurious
factors, then manipulates at least one of the variables — examples
include purchase laboratories and test markets Researchers often
use more than one research design. They may start with secondary
research to get background information, then conduct a focus group
(qualitative research design) to explore the issues. Finally, they
might do a full nation-wide survey (quantitative research design) in
order to devise specific recommendations for the client.
Business to business market research

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

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

Organizations
Marketing research does not only occur in huge corporations with
many employees and a large budget. Marketing information can be
derived by observing the environment of their location and the
competitions, location. Small-scale surveys and focus groups are low
cost ways to gather information from potential and existing
customers. Most secondary data (statistics, demographics, etc.) is
available to the public in libraries or on the Internet and can be easily
accessed by a small business owner.
Below are some steps that could be done by SME (Small Medium
Enterprise) to analyze the market:
1. Provide secondary and or primary data (if necessary);
2. Analyze Macro and Micro economic data (e.g. supply and
demand, GDP, price change, economic growth, sales by sector/
industries, interest rate, number of investment/ divestment, I/O,
CPI, social anlysis,etc.);
3. Implement the marketing mix concept, which consists of place,
price, product, promotion, people, process, physical evidence and
also political and social situation to analyze global market
situation);
4. Analyze market trends, growth, market size, market share, market
competition (e.g., SWOT analysis, B/C analysis, channel mapping
identities of key channels, drivers of customers’ loyalty and
satisfaction, brand perception, satisfaction levels, current
competitor-channel relationship analysis, etc.)
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INTRODUCTION
5. Determine market segment, market target, market forecast and

market position;
6. Formulating market strategy and also investigating the possibility
of partnership/ collaboration (e.g., profiling and SWOT analysis of
potential partners, evaluating business partnership.)
7. Combine those analysis with the SME's business plan/ business
model analysis (e.g. Business description, business process,
business strategy, revenue model, business expansion, return of
investment, financial analysis (company history, financial
assumption, cost/benefit analysis, projected profit and loss, cash
flow, balance sheet and business ratio, etc.).
Note as important: Overall analysis should be based on 6W+1H

(What, When, Where, Which, Who, Why and How) question.
International Marketing Research Plan

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

recommendations for a specific methodology.
1.8 IMPORTANCE OF MIS AND DSS IN MARKETING

RESEARCH
Marketing Information System (MIS)
Firms are always interested in understanding the needs of their
customers and employees. Firms design the marketing information
system so as to get the insight of the information provided by the
various internal and external sources. These information systems are
basically created to meet the needs of clients and executive staffs.
These intelligent systems stock the data of various interactions of
company personnel to the marketing environment like customers,
prospects, distributors, competitors, general public etc,
Company’s Internal Support System and Decision Making System

It is important to remember that the quality of decisions that are made
are only as good as the quality of information on which they are
founded. Marketing management must plan for the continuous
gathering of information. The costs attached to the gathering, analysis
and storage of data must, however, be borne in mind because they
can sometimes be very high and place a limit on the amount of data
that can be collected.
According to the objectives, it is essential for you to be familiar with

the necessity for marketing information. You will realise from above
that marketing information is necessary to enable marketing
management to make effective decisions concerning the handling of
various circumstances in the marketing environment.
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INTRODUCTION
The more information that is known about a certain matter, the easier
it is for decisions to be made that reduce the risk of making incorrect
decisions. Uncertainties may be cancelled out to a certain extent.
You will remember that according to the principles of the marketing

concept, a marketer can only maximise "profitability" in the long-term
if he satisfies the consumers' needs. However, to satisfy the
consumers' needs, a marketer must continually keep up to date with
consumer needs, preferences and desires, as well as any changes in
terms of any of these aspects.
In reality, the marketer is not only supposed to be aware of

consumers' present needs, desires and preferences, but also of any
trends in them. In this way the marketer will not be taken by surprise
by changes, seeing that adaption to changes cannot always be made
immediately.
While the marketer keeps up to date with changes in the consumer

market, he must also gather information on aspects such as
competitors’ activities as well as changes in the technological
environment to enable him to see opportunities and threats in
perspective. It is of little value for him to only know that consumer's
needs have changed, but to be unaware of new techniques that can be
used to satisfy them or of suppliers who can supply components.
To sum up, the marketer must keep up to date on a continuous basis

with the present position, and changes at all levels of the marketing
environment. In order to satisfy the marketer's need for reliable,
relevant marketing information, a formal marketing information
system has come into being. This information system must be
managed by making it applicable to the elements of management,
such as planning, coordination and control. The marketer must, for
35
INTRODUCTION
example, first identify on a continuous basis the information needs

before the gathering of information can be planned and coordinated.
The marketing information system can be described as the formal,

planned system of people, methods and machines which are
responsible for the continuous gathering, analysis and storage of
information and the continuous supply, thereof, to marketing
management.
To carry out the above task, the marketing information system

comprises various components, each of which can be seen as a sub
system. The composition of the marketing information system will
differ from enterprise to enterprise, especially according to the size of
the enterprise. The composition will be very formal in very big
enterprises and almost identical to the description that follows, while
very small enterprises mostly cannot afford such a formal approach
and must look for alternatives, as indicated below.
Components of the marketing information system

The marketing information system comprises four components,
namely;
• The internal recording system.
• The marketing intelligence system.
• The statistical system.
• The market research system.
The internal record system comprises various reports which are

generated in the running of a business. These reports may pertain to
information such as sales data (per area, product and/or sales
representative); market share; sales costs; advertising; stock supplies,
and cash flow.
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INTRODUCTION
This information is usually available in both large and small

enterprises. The internal recording system, therefore, consists of
sources from which an enterprise can gather marketing information
concerning the internal marketing environment of the enterprise. This
information is known as secondary information because it is not
gathered for a specific problem.
The marketing intelligence system is comprised of the sources from

which the business can gather marketing information concerning the
external environment and entails, amongst other things, the following
• Sales representatives
• Agents
• Suppliers
• Advertising agencies
• Private marketing research companies.
Decision Support System (DSS)

Marketing Decision Support System: An interactive, flexible
computerized information system that enables managers to obtain
and manipulate information as they are making decisions.
Database Marketing: The creation of a large computerized file of

customers’ and potential customers’ profiles and purchase patterns.
A Decision Support System (DSS) is a computer-based information

system that supports business or organizational decision making
activities. DSSs serve the management, operations, and planning
levels of an organization (usually mid and higher management) and
help to make decisions, which may be rapidly changing and not
easily specified in advance (Unstructured and Semi-structured
decision problems). Decision support systems can be either fully
computerized, human or a combination of both.
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INTRODUCTION
While academics have perceived DSS as a tool to support decision

making process, DSS users see DSS as a tool to facilitate
organizational processes. Some authors have extended the definition
of DSS to include any system that might support decision making.
Sprague (1980) defines DSS by its characteristics:
1. DSS tends to be aimed at the less well structured, underspecified
problem that upper level managers typically face;
2. DSS attempts to combine the use of models or analytic techniques
with traditional data access and retrieval functions;
3. DSS specifically focuses on features which make them easy to use
by non computer people in an interactive mode; and
4. DSS emphasizes flexibility and adaptability to accommodate
changes in the environment and the decision making approach of
the user.
DSSs include knowledge-based systems. A properly designed DSS is

an interactive software-based system intended to help decision
makers compile useful information from a combination of raw data,
documents, and personal knowledge, or business models to identify
and solve problems and make decisions.
Typical information that a decision support application might gather

and present includes
• inventories of information assets (including legacy and relational
data sources, cubes, data warehouses, and data marts),
• comparative sales figures between one period and the next,
• projected revenue figures based on product sales assumptions.
• a communication-driven DSS supports more than one person
working on a shared task; examples include integrated tools like
Google Docs.
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INTRODUCTION
• a data-driven DSS or data-oriented DSS emphasizes access to and

manipulation of a time series of internal company data and,
sometimes, external data.
• document-driven DSS manages, retrieves, and manipulates
unstructured information in a variety of electronic formats.
• knowledge-driven DSS provides specialized problem-solving
expertise stored as facts, rules, procedures, or in similar structures.
• model-driven DSS emphasizes access to and manipulation of a
statistical, financial, optimization, or simulation model. Model-
driven DSS use data and parameters provided by users to assist
decision makers in analyzing a situation; they are not necessarily
data-intensive. Dicodess is an example of an open source model-
driven DSS generator.
Three Fundamental Components of DSS Architecture are

1. the database (or knowledge base),
2. the model (i.e., the decision context and user criteria), and
3. The users of the DSS.
Development Frameworks
DSS systems are not entirely different from other systems and require
a structured approach. Such a framework includes people,
technology, and the development approach.
The early framework of decision support system consists of four

phases:
• Intelligence searching for conditions that call for decision.
• Design inventing, developing and analyzing possible alternative
actions of solution.
• Choice selecting a course of action among those.
• Implementation adopting the selected course of action in decision
situation.
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INTRODUCTION
DSS technology levels (of hardware and software) may include:

1. The actual application that will be used by the user. This is the
part of the application that allows the decision maker to make
decisions in a particular problem area. The user can act upon that
particular problem.
2. Generator contains hardware/software environment that allows
people to easily develop specific DSS applications. This level
makes use of case tools or systems such as Crystal, Analytica and
iThink.
3. Tools include lower level hardware/software. DSS generators
including special languages, function libraries and linking
modules
An iterative developmental approach allows the DSS to be changed

and redesigned at various intervals. Once the system is designed, it
will need to be tested and revised where necessary for the desired
outcome.
DSS components may be classified as:

1. Inputs: Factors, numbers, and characteristics to analyze
2. User Knowledge and Expertise: Inputs requiring manual analysis
by the user
3. Outputs: Transformed data from which DSS "decisions" are
generated
4. Decisions: Results generated by the DSS based on user criteria
DSSs which perform selected cognitive decision making functions
and are based on artificial intelligence or intelligent agent’s
technologies are called Intelligent Decision Support Systems (IDSS).
The nascent field of decision engineering treats the decision itself as

an engineered object, and applies engineering principles such as
40
INTRODUCTION
design and quality assurance to an explicit representation of the

elements that make up a decision.
Benefits
1. Improves personal efficiency
2. Speed up the process of decision making
3. Increases organizational control
4. Encourages exploration and discovery on the part of the decision
maker
5. Speeds up problem solving in an organization
6. Facilitates interpersonal communication
7. Promotes learning or training
8. Generates new evidence in support of a decision
9. Creates a competitive advantage over competition
10. Reveals new approaches to thinking about the problem space
11. Helps automate managerial processes
12. Create Innovative ideas to speed up the performance
DSS Characteristics and Capabilities:

1. Solve semi-structured and unstructured problems
2. Support managers at all levels
3. Support individuals and groups
4. Interdependence and sequence of decisions
5. Support Intelligence, design, choice
6. Adaptable and flexible
7. Interactive and ease of use
8. Interactive and efficiency
9. Human control of the process
10. Ease of development by end-user
11. Modeling and analysis
12. Data access
13. Stand-alone and web-based integration
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INTRODUCTION
14. Support varieties of decision processes

15. Support varieties of decision trees
16. Quick response
1.9 SUMMARY
With the customers of today becoming more exacting, sophisticated,
quality and brand conscious,” marketing research” is gaining lot of
importance. In the past customers generally interacted with sales and
marketing personnel who passed on the customer requirements to
other departments in the company and then in turn actions were use
to be taken, However with all scenario now rapidly changing with
business environment and steep competition nationally and globally
the marketing research has become modern.
The current scenario demands that the firm develops a proper

information system which will have a continuous flow of data and
information into the company from various sources.
To cope up with rapid changes in environment, tastes of people and

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

analysis to generate faster results (findings). It has become necessary
to build marketing intelligence systems with internal sources and
external sources, which are backed up by software support and
modern market researchers and analysts.
In today’s environment where speed and accuracy are critical

elements of decision making, marketing research plays a pivotal role
in the decision making process.  
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INTRODUCTION
1.10 SELF ASSESSMENT QUESTIONS
1. Marketing manager makes tactical decisions based upon

____________.
a. Marketing research
b. Market intelligence
c. Internal information system 
2. Consumer marketing research focuses on ____________.

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

Architecture?
a. Database of interactions
b. User
c. Financial reports
4. Which component mentioned below is not a part of market

intelligence system?
a. Sales representative
b. Distributor
c. One time buyer
5. The internal recording system is a part of company’s ____________.

a. Marketing intelligence system
b. Advertising programme
c. Communications department
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INTRODUCTION
6. Advertising research is mainly concerned about ____________.

a. Increasing sales
b. Increasing brand value
c. Tracking advertising attention
7. Core function of decision support system is to ____________.

a. provide valuable inputs to make decision.
b. give consolidated market information.
c. company’s daily activity report.
8. The type of the research made to get some basic idea on problem
faced by the company _____________.
a. Exploratory research
b. Descriptive research
c. Empirical research
Activities for the student

1. Assuming you are a marketing research manager of a foods
product company
• design a marketing intelligence system.
• define components of DSS with respect to specific your company. 
2. Discuss the ad campaign research conducted on newly launched

product.
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INTRODUCTION
REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture - Part 1
45
MARKETING RESEARCH PROCESS
Chapter 2 - Marketing Research Process
Objectives

• understand the meaning and significance of the “management
dilemma.”
• understand how to define the decision problem?
• understand how to define the research problem?
• describe the research process.
• how to draft and evaluate proposal.
Structure
2.1 Introduction to Marketing Research Process

2.2 Management Dilemma
2.3 Defining a Decision Problem
2.4 Defining a Research Problem
2.5 Hypothesis
2.6 Research Proposal
2.7 Marketing Research Process
2.8 Summary
46
2.1 Introduction to Marketing Research Process

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

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

manner. This means that a detailed and carefully designed research
plan is developed in which each stage of the research is specified.
Such a research plan is only considered adequate if it specifies the
research problem in precise manner, the information necessary to
address the problem, the methods to be employed in gathering the
information and the analytical techniques to be used to interpret it.
Although the need for precision and thoroughness in marketing

research is stressed, it is to be remembered that, market research only
reports the findings to the decision makers and do not make any
decisions.
The reality is that management is frequently under pressure to make

timely decisions. Therefore, management often seeks answers
thorough marketing research in the shortest time possible and,
moreover at a minimum cost.
47
Marketing research revolves around:

• Prospective customers.
• Existing customers.
• Lost customers.
• Internal customers (Employees)
• Community
• Business environment
Marketing research is concerned with variety of aspects of the market

like: Product, sales, consumer behavior, promotions, distribution,
pricing, packaging, and advertising. Since the researcher cannot
investigate everything about market and product, He/She must be
selective. The question remains that how researcher should focus and
to what depth the issue must be investigated. The answer to this
question is “marketing research brief”. The research brief sets
guidelines to the researcher. The research brief is prepared by the
decision makers who in turn is going to use information for decision
purpose.
The brief must inform the researcher about particulars to be

incorporated in the research like:
• Purpose of research.
• Objectives stated in a clear, concise, attainable, measurable and
quantifiable way
• A resource allocation
• Time frame
• Budget and facilities
• Reporting format and period
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2.2 Management Dilemma

Management dilemma can be defined as a problem or opportunity
that requires a marketing decision; a symptom of a marketing
problem or an early indication of a marketing opportunity.
In order to identify the Management Dilemma three categories of the
symptomatic situations should be studied.
• Overt difficulties: Overt difficulties are those which are quite

apparent and which manifest by themselves. For e.g. Parle products
is witnessing a decline in sales of beverages although A summer is
on.
• Latent difficulties: Latent difficulties are those which are not so
apparent but could grow into bigger problems if not attended, For
e.g. reduced sales volume may demoralize the distributor and
reduce his interest in product.
• Unnoticed opportunities: Unnoticed opportunities are those which
indicate substantial growth in some areas of market which requires
a special attention of marketing. For e.g., rising awareness of
Internet creating opportunities for students of online businesses.
Once the researcher has identified the problem/opportunity. It must

be carefully examined in the interest of the organization. After this the
researcher moves on to the next step of defining the research problem.
2.3 Defining a decision problem

The decision problem faced by the management must be translated
into a market research problem in the form of a question which
obtains the information required to make a decision, the decision
problem is now translated into a research problem.
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For e.g.: FMCG company wishes to launch a superior product with

added features anticipating competition to come up with similar
product- This is a decision problem, therefore, the corresponding
research problem would be “Will market accept a new product with
modified version”?
The objective of the research should be clearly defined so as to

address the decision problem.
The researcher must be able to outline and convey possible outcomes

of the research to the decision maker in order to formulate further
plans and strategies.
Marketing research acts a guide to the decision making management

by enabling it to take those decisions that have high probability of
succeeding as regards the attainment of its marketing objectives.
2.4 Defining a research problem

The first step in research is formulating a research problem. It is
rightly said that “A problem well defined is half solved” Poorly
defined problems could lead to confusion and do not allow
researchers to develop a good research design.
Research is basically a cycle; It starts with a problem and ends with a

solution to the problem. Problem statement is something around
which the entire research is revolving.
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A research problem creates many questions for researcher like:

• Who
• What
• When
• Where
• Why
Research originates from a need aroused. The researcher should

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

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

researcher to achieve conclusive solutions to the stated problem.
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Management Problems Corresponding Research Problems

Allocate advertising budget to Estimate awareness generated by each media
media. type.
Evaluate use of services on Saturday and
Decide whether to keep office
determine on whether customers will shift usage
open on Saturdays.
to weekdays.
Design a concept test and assess acceptance
Introduce a new health service.
and use.
Change the marketing program
Design a test-marketing situation such that the
to measure a product’s current
effect of the new program can be estimated.
image.
2.5 Hypothesis
Definition: A hypothesis is a proposition which a researcher wants
to verify.
In common usage, a hypothesis refers to a provisional idea whose

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

confirm or disprove it. In due course, a confirmed hypothesis may
become part of a theory or occasionally may grow to become a theory
itself.
By definition, a hypothesis is a proposed statement made on the basis

of limited evidence that can be proved or disproved and is used as a
starting point for further investigation.
Let’s break that down:
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It is a proposed statement.
• A hypothesis is not fact, and should not be argued as right or
wrong until it is tested and proven one way or the other.
It is made on the basis of limited (but hopefully some) evidence.

• Your hypothesis should be informed by as much knowledge as you
have. This should include data that you have gathered, any
research you have done, and the analysis of the current problems
you have performed.
It can be proved or disproved.

• A hypothesis pretty much says, “I think by making this change, it
will cause this effect.” So, based on your results, you should be able
to say “this is true” or “this is false.”
It is used as a starting point for further investigation.

• The key word here is starting point. Your hypothesis should be
formed and agreed upon before you make any wireframes or
designs as it is what guides the design of your test. It helps you
focus on what elements to change, how to change them, and which
to leave alone.
How do I write a hypothesis?

The structure of your basic hypothesis follows a CHANGE: EFFECT
framework.
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While this is a truly scientific and testable template, it is very open-

ended. Even though this hypothesis, “Changing an English headline
into a Spanish headline will increase click through rate,” is perfectly
valid and testable, if your visitors are English-speaking, it probably
doesn’t make much sense.
So now the question is …
How do I write a GOOD hypothesis?

We can’t just start plugging in nouns and verbs and conclude that we
have a good hypothesis. Your hypothesis needs to be backed by a
strategy. And, your strategy needs to be rooted in a solution to a
problem
So, a more complete version of the above template would be

something like this:
In order to have a good hypothesis, you don’t necessarily have to

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

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

we will increase number of leads.”
2. Proposed solution
When you are thinking about the solution you want to implement,
you need to think about the psychology of the customer. What
psychological impact is your proposed problem causing in the mind
of the customer?
For example, if your proposed problem is “There is a lack of clarity in

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

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

change this, it will have this effect,” but should always be informed
by an analysis of the problems and rooted in the solution you deemed
appropriate.
Characteristics of a good hypothesis:

1. A good hypothesis is based on a sound reasoning.
a. The hypothesis is always based on previous research.
b. The hypothesis must follow most likely outcome and not
exceptional outcome.
2. A good hypothesis provides a reasonable explanation for the
predicted outcome.
3. A good hypothesis clearly states the relationship between the
defined variables.
a. Written in a simple and clear manner is easier to test
b. It should not be vaguely expressed.
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4. A good hypothesis defines variables in clearly measurable terms.

a. Who are the participants?
b. What will be different in the test?
5. A good hypothesis is testable in a reasonable amount of time
6. A good hypothesis is self explanatory and corresponds with
existing knowledge.
7. It must be verifiable
8. A good hypothesis must be formulated in simple and
understanding terms.
2.6 Research Proposal

The researcher after receiving the brief from the management sets out
to make a research proposal.
The major components to the research proposal are

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

problem. Researcher develops the proposal after giving careful
considerations to all the contents in the brief.
The procedures are divided into the major seven steps of research
proposal which are discussed below. These steps are also popularly
known as steps of marketing research process
A well-planned proposal will ensure you get the most out of your
market research activity.
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Provides 10 key steps to consider

Marketing research is vital in all businesses and it is important that a
proposal is written before any formal research activity takes place.
Businesses often find themselves in a challenging situation and need
to find reliable answers to key questions in order to make the right
decisions. The research proposal is a statement of intent and explains
the purpose for the research to take place. Below are 10 key points to
consider when structuring your proposal.
1. Title and keywords 

The title of the proposed investigation should be clear, precise and
accurate. A short main title outlining the area of the research may
be followed by a secondary part of the title that includes more
specific information. 
 
Keywords are normally required to identify the content of the
proposal. An average of four to six words should suffice.
2. Aims and objectives 

The primary aim of the proposal is to identify the purpose of the
research and the research questions/issues it attempts to address.
You should provide a sequence of statements (normally between
two and five) that gives an overview of what the research is trying
to achieve.
3. Background analysis 
This section needs to justify the proposal with a brief account of
the practical issues the research will address. It should attempt to
demonstrate the importance of the proposed investigation in
relation to specific problems, contexts etc. References of facts,
figures, reports and authors will be useful.
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4. Research hypothesis 
This part should specify the exact questions to be investigated.
This needs to be precise and should take the form of hypotheses or
statements (normally between two and four). It should specify
what indicators will be measured in order to address the broad
issues identified within the aims and background sections.
5. Data collection 
The data collection methods must be described succinctly. They
should include a description of the data collection process and the
strategy to be adopted (survey method or case study). If a survey
method is used, then you should mention the geographic regions
or demographic to be covered. Mention should be made of the
sample frame and sampling technique utilised Statistical
knowledge helps and there are many books available on this topic.
Careful attention needs to be paid in selecting the sample if it is to
represent the demographic being investigated. The sample also
needs to be determined based on confidence interval and
confidence level. A useful tool to determine these is available at
survey system.com (click on the research aids sample calculator).
6. Research methodology 
The research methodology section should explain the key reasons
for choosing the proposed methods. The research strategy and
data collection methods should be discussed and evaluated, in
terms of their suitability and their implications for the quality of
the data to be collected. 
 
This section may also discuss the need for depth and breadth of
information and the benefits of using qualitative or quantitative
data, the likely validity of the data collected the probability of the  
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respondents providing honest responses and the reliability of the
methods utilised. Benefits should also be compared to possible
alternative approaches.
7. Schedule of activity 
This is an important section as the proposed research should be
conducted within time and budgetary limits. The feasibility of the
proposed research should be considered in relation to the
availability of resources. An estimate needs to be provided in
terms of total hours required for completion of the project –
designing the questionnaire, planning, scheduling and conducting
interviews, data analysis (qualitative/quantitative), and writing
up the report (first draft/final draft). A Gantt chart may help to
outline this plan.
8. Code of conduct 
This section will articulate the way the researcher will comply
with the spirit and practice of research ethics and will conduct
their activities within the political/legal context within which the
research will be conducted. Factors to address may include:
confidentiality and anonymity statements, undertaking informed
consent, authorization for access to people and/or data and data
security.
9. Research limitations 
The researcher needs to acknowledge any limitations that may be
inherent in the research design and to the extent it may affect the
accuracy of the research findings. Examples could include: how far
the findings can be generalised to the whole demographic/
situation, restrictions arising from time and resources, and issues
around objectivity.
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10. Outcomes 
The end-products likely to be produced as a result of the research
activity are described in this section. The outcomes are not similar
to findings. Examples would include: new practices, guidelines for
good practice and recommendations.
2.7 Marketing research process steps
Step 1: Identify and define the problem

In a very real sense, problem formulation is the heart of the research
process. As such, it represents the single most important step to be
performed. From the researcher’s point of view, problem formulation
means translating the management problem into a research problem.
As previously discussed, in order to formulate an appropriate

research problem, the researcher must understand the origin and
nature of management’s problem and then be able to rephrase it into
meaningful terms from an analytical point of view. This involves
timely and clear communication between manager and researcher.
Various researchable marketing problems with management

(management dilemmas):
• Launching a new product or a service.
• Low awareness of the company products and services.
• The market is aware about company products and services but still
not buying in required manner.
• Worrying companies image and reputation
• Problems related to distribution.
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Step 2: Generation of the hypothesis or a problem statement

The end result of problem formulation is a statement of the
management problem that is analytically meaningful and that often
points the way to alternative solutions.
An accurate problem formulation specifies the types of information

needed to help solve the Management problem. In short, quality
thinking about a problem prior to data collection largely determines
the quality of data collection, analysis and problem solving.
Closely related to problem formulation is the development of a

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

• The hypothesis is a statement about the relationship between two
or more variables in declarative statement form.
• The hypothesis carries clear implications for testing the stated
relationship
(i.e., variables must be measurable or potentially measurable).
How to Formulate the Research Problem:

Problem formulation is much easier when specific components of the
research problem are defined:
(a) Specify the Research Objectives

Objectives guide the researcher in developing good, useful
research, and they help the client evaluate the completed project.
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Objectives range from the very general, such as profit

Maximization, to the highly specific, such as measuring market
interest in a new product. It is rare that the objectives are well
explained to the researcher.
However, the researcher needs to take the initiative to develop a

clear statement of objectives. Each study should have a very limited
and manageable set of objectives that focus on the problem being
solved. Two or three well targeted objectives is preferable to many
that are ill conceived.
Fewer the objectives make it easier to keep track of progress toward

the objectives, to ensure that each is properly addressed, and to
determine the best methodology. If there are too many objectives
separate studies may be appropriate.
(b) The Environment or Context of the Problem

Consider the problem of deciding whether to introduce a new
consumer product. The marketing researcher must work closely
with the client in transforming the client’s problem into a workable
research problem.
The researcher’s efforts should be oriented toward helping the

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

utilized (i.e., have an influence on the user’s decision making), the
manager and researcher must have a productive and trusting
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relationship that is based on the researcher’s ability to perform and

deliver the research as promised.
(c) The Nature of the Problem

Every research problem may be evaluated on a scale that ranges
from very simple to very complex. The degree of complexity
depends on the number of variables that influence the problem.
Understanding the nature of the problem helps a researcher ensure
that the right problem is being investigated and that a marketing
plan can be developed to solve the problem. A thorough
preliminary investigation using focus groups of consumers,
salespeople, managers, or others close to the problem may produce
much needed insight.
(d) Alternative Course of Action

Specifies a behavioral sequence that occurs over time, such as the
adoption of a new package design, or the introduction of a new
product. Such a program of action becomes a commitment, made in
the present, to follow some behavioral pattern in the future.
It is usually desirable to generate as many alternatives as possible

during the problem formulation stage and state them in the form of
research hypotheses to be examined.
(e) The Consequences of Alternative Courses of Action

A set of consequences always relate to courses of action and even to
the occurrence of events not under the control of the manager. One
of the manager’s primary jobs is to anticipate and communicate the
possible outcomes of various courses of action that may result from
following the research.
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(f) Degrees of Uncertainty

Most marketing problems are characterized by a situation of
uncertainty as to which course of action is best. Years of experience
may allow the decision making manager to assign various
“likelihoods of occurrence” to the various possible outcomes of
specific courses of action. A carefully formulated problem and
statement of research purpose is necessary for competent research.
The statement of purpose involves a translation of the decision
maker’s problem into a research problem and the derivation of a
study design from this problem formulation. The research problem
provides relevant information concerning recognized (or newly
generated) alternative solutions to aid in this choice.
Step 3: Determination of the type of study and research process

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

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

that, taken together, form a master plan or model for conducting a
research investigation.
Research designs vary depending on the type of study.
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Generally, designs are associated with three types of studies, those

that focus on providing exploratory research, descriptive research and
causal research.
Types of Studies
1. Exploratory Studies
The major purposes of exploratory studies are for the identification of
problems, the precise formulation of problems (including the
identification of relevant variables), and the formulation of new
alternative courses of action.
An exploratory study is often the first in a series of projects. That is,

an exploratory study is often used as an introductory phase of a larger
study, and its results are used to bring focus to the larger study and to
develop specific techniques that will be used. Thus flexibility is a key
to designing and conducting exploratory studies.
We can distinguish three separate tasks that are usually included in

exploratory studies and that are typically conducted in the sequence
listed:
• A search of secondary information sources.
• Interviews with persons knowledgeable about the subject area.
• The examination of analogous situations.
Search Secondary Sources

Secondary sources of information are the “literature” on the subject. It
is the rare research problem for which there is no relevant information
to be found by a relatively quick and inexpensive search of the
literature. Secondary information sources are not limited to external
sources. Searches should also be made of company records.
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Interview Knowledgeable Persons

Having searched secondary sources, it is usually desirable to talk with
persons who are well informed in the area being investigated,
including company executives, experts, consumers and mavens, and
users outside the organization.
A widely used technique in exploratory is the focus group. In focus

group interviews, a group of knowledgeable people participate in a
joint interview that does not use a structured question-and-answer
methodology. The group, usually consisting of 8 to 12 people (but
may have as few as 5 or as many as 20), is purposely selected to
include individuals who have a common background, or similar
buying or use experience, as related to the problem being researched.
Focus groups are used primarily to identify and define problems,

provide background information and generate hypotheses. Focus
groups typically do not provide solutions for problems.
Areas of application include detecting trends in lifestyles, examining

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

be a better alternative than focus groups.
Examine Analogous Situations

It is also logical that a researcher will want to examine analogous
situations to determine what else can be learned about the nature of
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the problem and its variables. Analogous situations include case

histories and simulations.
2. Descriptive Studies
Much research is concerned with describing market characteristics or
functions. For example, a market potential study may describe the
number, distribution, and socioeconomic characteristics of potential
customers of a product.
A market-share study finds the share of the market received by both

the company and its major competitors. A sales analysis study
describes sales by territory, type of account, size or model of product,
and the like.
In Marketing, Descriptive Studies are also made in the Following

Areas
1. Product research
Identification and comparison of functional features and
specifications of competitive products
2. Promotion research
Description of the demographic characteristics of the audience
being reached by the current advertising program
3. Distribution research
Determining the number and location of retailers handling the
company’s products that are supplied by wholesalers versus those
supplied by the company’s distribution centers
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4. Pricing research
Identifying competitors’ prices by geographic area these examples
of descriptive research cover only a few of the possibilities.
Descriptive designs, often called observational designs by some
researchers, provide information on groups and phenomena that
already exist; no new groups are created.
5. Causal Research
Casual research deals with the question ‘why’. There are occasions
when a researcher wants to know why a change in one variable
brings about a change in another variable. If he is able to
understand the causes of the effects then the ability to predict and
control such events is increased. In addition, the cause and effect
have to be related. That is, there must be logical implication (or
theoretical justification) to imply the specific causal relation.
Marketing Research Design

This is the most crucial step of the entire market research process,
requiring a great deal of thinking and an expertise. Marketing
research design includes secondary information, analysis, qualitative
research, methodology selection, question measurement and scale
selection, questionnaire design, sample design and determination of
data analysis to be used.
Elements of the market research design in a nutshell:

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

marketing research has many issues. To address all the issues in
the questionnaire is a difficult task
Objectives of questionnaire design process:

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

there are basic types of scale questions.
• Nominal: When no’s are used to identify the objects, such as daily
walk-in customers then the no acts as a most significant ID.
• Ordinal: When the nos. are used to indicate the relative position,
but not the difference of the magnitude of the relative position
For.e.g., rank the items by your priority from 1 to 4.
• Interval: When the rating scale is used and zero as an arbitrary.
For.e.g., express your opinion about quality of the product on the
scale of 1 to 5. As well satisfaction scores, attitudes, etc., in this
difference between 2 data points are fixed.
• Ratio: This most useful scale of all Examples of ratio scale are
market share, income ratios, age group ratio etc.
3. Statistical testing: The sample size is the number of people that

are being surveyed. A sample is a portion of a total population.
Sometimes, the actual number of the total population may be
known. At times, when the total no. is not known but if it’s more
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than the nos. being surveyed, then infinite population will have to
be selected. Most of the times a margin of error will have to be
calculated for the percentage or the proportion of the samples
choosing particular answer in the survey.  
 
Sometimes, however when the respondents are asked for a
number - such as numbers of hours they are on internet - then the
mean or average no. will have to be looked at and then calculate
the margin of error. To do this a desired confidence level is
required. The sample size and population size as is done for
calculating margin of error with proportional or percentage data
will have to be known. But the standard deviation for the dataset
should also be known beforehand. The SD (standard deviation) is
the square root of the variance, which is again based on the sum of
the squared differences between each score and the mean. Most
calculators and spreadsheets can calculate the SD for a set of data.
4. Survey: The actual process of interviewing the sample from the

population and record the findings are known as a survey process.
Making a comprehensive list of survey questions is a very
complex task.  
 
Typical types of surveys are: 
 
(A) Relationship based customer satisfaction research: It
encompasses the entire customer relationship spectrum from price
to customer service including availability. 
 
In case where measurement and improvement is required in
customer interaction, a transaction-based customer satisfaction
measurement programme is undertaken. 
 
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If the direct contact is frequent then or the organisation wants to

know about competitive issues, such as pricing, quality and
service then conducting a relationship-based customer survey
would be more appropriate. 
 
For Example,
1. On a scale 1 to 5 please rate the level of satisfaction for a
product (1 – most satisfied and 5 –completely dissatisfied).
2. What do you think about merchandize in our showroom, your
first impression?
• Excellent
• Very good
• Good
• Fair
• Poor
Step 4: Design of the Sample and Data Collection Methods
The sampling frame is the pool from which the sample is chosen. In
designing the research study one should also consider the potential
errors. Typically there are 2 sources of errors
(i) Random sampling error

(ii) Non sampling error
Sampling errors are those in which there is a non zero confidence

interval of the results owing to lesser sample size than the population
being studied. Non sampling errors are those caused by faulty coding,
untruthful responses, respondents fatigue, etc.There is always a trade-
off between sample size and cost. The larger is the sample size smaller
is the sampling error but the cost is higher. Over a period of time
smaller errors can be justified by extra costs.
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When we talk about a larger sample: Larger size of sample may

reduce the sampling error, it actually may increase the total error.
There are 2 reasons for this effect.
a. A larger sample may reduce the ability to follow up on non
responses
b. Even there are sufficient no. of interviewers for follow ups, a
larger no. of interviewers may result into less uniform interviews.
Design of the sample involves three major decisions:

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

the unit of sampling. 
 
It should be able to answer: Who is to be surveyed? 
 
There after, sampling frame is developed so that everyone in
target population holds equal chance of getting selected.
b. Sample size: A large sample size gives more reliable results than
small sample. 
 
This particular decision requires an answer to the question: How
many persons to be surveyed? 
 
However, it isn’t necessary to sample the entire target population.
Even a substantial portion of target is good enough to achieve
reliable results.
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c. Sampling procedure: To obtain a representative sample, a

probability sample of the population may be drawn. 
 
This decision requires an answer to the question ‘How should the
respondent be chosen?’ 
 
However, if the element of cost and time is a problem then non-
probability sampling methodology may also be tried out. 
 
There is an opinion that non-probability samples are helpful and
useful in many circumstances. It does not provide allowance for
measuring sampling errors.
The major methods of secondary data collections are: secondary

searches, observations, surveys, experiments and consumer panels.
Typically data collection in marketing research begins with field

testing and interviewing the small portion of sample with a final
questionnaire, to understand the efficacy. Major time of the marketing
research project is consumed in data collection process.
Various data collection methods followed are:

• Computer assisted telephonic interviews(CATI)
• Internet surveys
• Interactive voice response
• Mail surveys
• Mall intercepts
• Traditional telephonic interviews
• Internet panels
• Mail panels
• In-home panels
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Step 5: Analysis of the data

A survey data analysis depends upon how the survey questions are
framed. Quality of the analysis also depends upon the complexity and
quality of the data.
Typical types of data analysis are:

a. Simple frequency distributions
b. Multiple regressions
c. Cluster analysis
d. Factor analysis
e. Multidimensional scaling
f. Structural equation modeling
g. Data mining
The new marketing researcher often think that decisions regarding

the techniques of analysis can be left until data is collected, however,
it is not so
Before commencing the interviews following checklist needs to be

applied.
• Do we know how each and every question is going to be analyzed/

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

Analysis
Multiple It describes the relationship of Determines all key drivers of customer
Regression each variable in a set (and the satisfaction with your service
set of variable as a whole) to a
single variable.
Cluster Identifies homogeneous Identifies market segments, groups of
analysis subgroups within a much customers, potential customers who
larger group of respondents make similar decisions and perceives
the product and service in the identical
ways
Factor analysis Reduces a complicated data Uncovers the basic dimensions of
into its more basic structural employee use to evaluate how satisfied
essentials they are working within the organization
Multidimension This extracts multiple This helps to visualize how customers
al scaling dimensions from a variable set mentally format your competitors
and positions concepts within products in your product or service
that space. category. How they compare your brand
with others
Structural This tests how well observed This helps to describe the customer
equation data confirms an entire theory loyalty is built over a period for a
modeling model particular product
Data mining Detects useful and sometimes It increases revenue by cross selling the
unexpected patterns among product.
the variables in datasets
Step 6: Drawing the Conclusions and Making the Recommendations

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

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

management needs to reduce risks, understand the uncertainties of
the business and identify opportunities.
The researcher should decide what the marketing manager’s

priorities are with respect to study.
• Must know
• Should know
• Could know
This means that the research report should contain information that is
absolutely essential in order to make certain marketing decisions
(Must know type). Information that would be useful to have if budget
and time permits (Should know type). The information which
manager would be nice to have but not directly related to decision
making (Could know type).
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2.8 Summary
Marketing is becoming a challenging task day by day due to the
dynamics of the business environment. It is becoming more and more
difficult for marketing managers to provide right products or right
services at the right time, place with a right price due to extremely
competitive environment, globalization, and internal forces within the
organization.
Marketing research provides a ray of certainty in such environment. It

plays a key role in providing accurate information in a structured
manner to a marketing manager to make necessary decisions.
In this chapter we understood:

Management dilemma can be defined as a problem or opportunity
that requires a marketing decision; a symptom of a marketing
problem or an early indication of a marketing opportunity.
The decision problem faced by the management must be translated

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

on what caused the need to do the research (Problem identification). A
clear distinction between the PROBLEM and PURPOSE should be
made.
PROBLEM: The researcher finding the solution for.

PURPOSE: To solve the problem.
A hypothesis is a proposition which a researcher wants to verify.
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In common usage, a hypothesis refers to a provisional idea whose

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

confirm or disprove it. In due course, a confirmed hypothesis may
become part of a theory or occasionally may grow to become a theory
itself.
The researcher after receiving the brief from the management sets out
to make a research proposal.
The major components to the research proposal are

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

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

1. Identifying and defining the problem
2. Generation of the hypothesis
3. Determination of the type of study and research design
4. Design of the sample and data collection methods
5. Analysis of the data
6. Drawing the conclusions and making the recommendations
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2.9 Self assessment questions
1. Marketing research revolves around _____________.

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

Hypothesis_____________.
a. Sound reasoning
b. Management dilemma
c. Provides a reasonable explanation for the predicted outcome
d. Based on previous research
3. One of the following does not constitute sample design

_____________.
a. Sampling unit
b. Sample size
c. Random sample error
d. Sampling procedure
4. Which option of the following is a secondary data source?

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

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

through _____________.
a. Research proposal
b. Research brief
c. Previous data
d. Competition information
7. Which of the following analysis method is used to asses the

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

incorporated in marketing research is concluding report?
a. Must know
b. Could know
c. Should know
d. None of these
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Assignments:
1. Prepare a research proposal for Tatasky customer satisfaction
survey in Mumbai.
2. Prepare an exploratory research questionnaire to launch Nivea -
men in rural areas.
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture - Part 5 
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VARIOUS SOURCES OF MARKET INFORMATION
Chapter 3 - Various Sources of Market Information
Objectives

• Under methods of collecting market information
• Under ethics in collecting market information
• Under primary data: qualitative, quantitative, observation survey
research methods.
• Under secondary data: meaning, usage, advantages and limitations,
internal and external sources of data
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Structure:
3.1 Introduction to Various Sources of Information
3.2 What is a Data?
3.3 Primary Data
(a) Meaning and Purpose of Primary Data
(b) Sources of Primary Data
3.4 Secondary Data
(a) Meaning and Purpose of Secondary Data
(b) Usage of Secondary Data
(c) Advantages and Limitations of Secondary Data
(d) Internal and External Sources of Data.
3.5 Popular Methods of Data Collection.
• Survey Method
• Interviews
• Observations
• Retail Audit
• Consumer Panels
• Experiments
3.6 Steps in data collections
3.7 Ethics in collecting the marketing information
3.8 Summary
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3.1 Introduction to various sources of information
★ Sources of marketing information
There are five major sources for obtaining marketing information. In

this section we briefly describe some of these sources in more depth.
• Secondary Sources
• Respondents
• Natural Experiments
• Controlled Experiments
• Simulation
Secondary Sources of Information

Secondary information is information that has been collected by
persons or agencies for purposes other than the solution of the
problem at hand.
If a furniture manufacturer, for example, needs information on the

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

continuing basis and sell it to companies. These so-called syndicated
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services, particularly those for packaged consumer goods, are

becoming more sophisticated as they are increasingly becoming based
on scanner data. Technology advancements are having a measurable
impact on the availability of secondary data.
Information from Respondents

A second major source of information is obtained from respondents.
Asking questions and observing behavior are primary means of
obtaining information whenever people’s actions are being
investigated or predicted.
The term respondent literally means “one who responds or

answers.” Both verbal and behavioral responses should be
considered.
Information from Natural and Controlled Experiments
As described earlier, three types of evidence provide the bases for

drawing inferences about causal relationships. While both natural and
controlled experimental designs are capable of providing associative
variation and sequence of events, only controlled experiments can
provide reasonably conclusive evidence concerning the third type of
evidence, the absence of other possible producers.
A natural experiment is one in which the investigator intervenes only

to the extent required for measurement. That is, there is no
manipulation of an assumed causal variable.
The investigator merely looks at what has happened. As such, the

natural experiment is a form of ex post facto research. In this type of
study, the researcher approaches data collection as if a controlled
experimental design were used. The variable of interest has occurred
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in a natural setting, and the researcher looks for respondents who

have been exposed to it and also, if a control group is desired,
respondents who have not been exposed.
Measurements can then be made on a dependent variable of interest.

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

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

beyond that needed for measurement purposes.
Specifically, two kinds of intervention are required:

1. Manipulation of at least one assumed causal variable.
2. Random assignment of subjects to experimental and control
groups.
The researcher conducts the experiment by assigning the subjects to

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

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

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

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

or some combination of these applications. During the past 50 or more
years, simulations have been developed for such marketing decision
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making applications as marketing systems, marketing-mix elements

(new - product, price advertising, and sales - force decisions), and
interviewing costs in marketing surveys.
All the marketing investigators can make the use of the information
from basically two different sources, i.e., internal and external. Facts
and figures are the resources with which the researcher acts.
Internal source: Internal sources of information consists of company’s

various reports, files documents etc. The company’s sales information
like products, prices, territories, clients, etc.
External sources: All the other sources excluding the internal are
external sources. The supplementary methods of categorizing
external data are primary and secondary data collection methods
There are many sources through which a huge amount of secondary

data is generated. Preservation of secondary data is a quite a tedious
job. The different sources for secondary data are general library
research, released market information, government published data
and reports etc.
On the other hand, primary data is attained from surveys, or direct

approaches. The other methods for collecting primary data would
include: Panel research, observation, experimental research etc.
3.2 What is a data?

Definition: Data may be roughly defined as the information which
is either qualitative, quantitative or in practical terms.
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Data is nothing but a representation of the facts, concepts or

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

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

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

design is developed researcher has to start working on data collection.
To begin with, the researcher has to decide what kind of the data is
required for the research, based on that he or she chooses the
appropriate method for data collection.
Importance of the Data

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

security of the data, therefore, vast considerations are made while
deciding the handling of data and storing of the data. It is ensured
that data is available with chosen members of the organization. The
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decision making management is mostly concerned about the

availability and security of the data.
Indeed, the data collection is a significant step in the research process;

the researcher tests the hypothesis against the data analysis to arrive
at a conclusion. The management makes the necessary decisions
based on the conclusions and recommendations made by the
researcher. That is why utmost care is required to be taken at the time
of data collection with regard to adequacy and accuracy.
Constituents of the Data

Data can be Constituted in Following Five Categories.
1. Facts: It is a measurement of the thing which actually exists. It is to

be tested on the basis of its merit or substance, Fact also cannot be
denied. However, an opinion or a view about the fact may change
from person to person.
2. Knowledge: Knowledge becomes a prime basis for human

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

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

impractical views or opinions should be discarded.
4. Intentions: An intention is a reflection of the expected behavior;

one has to set his or her mind to it. Intentions provide valuable
insights about people’s minds and that is why they form one of
the valuable resources of the data collections. Researcher must
gauge the intentions of the respondent before making the
judgment.
5. Motives: Motives are the internal forces which dominate the

human behavior and actions. Motives play a pivotal role in the
psychological analysis as compared to the intentions. For a
researcher, it is important to understand the motive of a
respondent also.
However, data is needed to be collected from all those respective

categories.
Types of Data
Data can be broadly classified into two categories depending upon
the source
a. Primary data
b. Secondary data
A researcher beforehand should run through for the secondary data

before going through the time and expenses of collecting the primary
data, which could have been collected for some other purpose but still
can be used for the particular immediate study. Secondary data could
be obtained from the firms internal records such as sales invoices,
warranty cards, or from the published data. The government census is
a valuable source of secondary data.
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Secondary data has certain advantages of saving time and reducing

the data gathering costs. The disadvantages are that the data exactly
pertaining to the problem is not available. Therefore, verifying the
secondary data for the accuracy becomes a critical problem.
Sometimes, the secondary data is republished by organizations from

other than the original source. There is a scope for errors and missing
explanations for such a data. One should be very sure about the
genuine information and original source of information in collecting
the secondary data.
Important criteria are for evaluation of the secondary data:

• Whether the data is relevant to the current research.
• How fresh is the data with respect to time and can be applied to the
current project time frame.
• In terms of accuracy and errors can the data be dependable and can
it be verified if required.
• Objectives of the data collection by the original source
• Methodology used for data collection, analysis carried out and
quality of the data, sample size used, etc.
• Nature of the data, variables used, measurement units and
relationships defined.
3.3 Primary data

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

which we intend to buy for the first time, we prefer to ask someone
about the experience or observations or we consult someone who has
experience. The same is applicable to the primary data collection.
Sources of the primary data:

• Observations
• Retail audit records
• Consumer panels
• Internet
• Interviews
• Copies of the Questionnaires
Very often, Secondary data is supplemented along with primary

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

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

device. Observation is less versatile compared to the communication.
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Some of the attributes of a person are complex for observation like

attitudes, intentions, awareness, knowledge, motivations etc.
Observation is more time consuming compared to communication,
Many times observer to wait till the event occurs.
Observations made through electronic devices are more accurate and

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

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

to be a genuine data and unique to the researcher and the project
until published.
The primary data generated may be qualitative type (usually in form

of words) or quantitative type (in the form of numbers).
3.4 Secondary data
Internal sources
Sales data: Organisations keep on accumulating information through
day to day operations. Orders received, supplied and invoices are
recorder on day to day basis, Similarly records of the visit reports,
goods return notes etc., are maintained. Much of the above
information is of significant use to the marketing research.
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Following type of the informations can be fetched from the sales data:
a. Territory wise sales
b. Customer wise sales and types of customers.
c. Prices and discount structures
d. Average sales order by customer
e. Geographical area wise sales
f. Average sales by individual salesperson
g. Sales by product volume
This type of the data is required for identifying the profitable

products for the organization and performing customers which can be
treated as key customers.
Financial data: An organization has a huge financial data comprising

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

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

movement registers help to assess the overall efficiency. Researcher
with the help of this data can identify the areas of extra costs as a
burden to the company and can suggest the potential cost savings by
changing systems.
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These systems can be further refined so that profitability per unit

product, sales rate per unit product, hidden costs of service can be
properly worked which result into a cost effective efficient system for
the organization.
External data: The external sources are sources which are outside the
company in a larger environment and they are not the part of the
company’s internal information. The collection of external data is
more difficult and complex since the wide variety of the data and
huge quantity available, so selection of the appropriate data is again a
task.
External data can be classified as below

(a) Government publications: Government sources are rich data
bases for the researcher. Moreover most of the data is easily available
on the Internet websites, libraries, etc., and free of cost.
Some of the data providing important agencies are:

1. Central statistical organization: This organisation publishes the
national accounts statistics. It contains the estimate of the national
income for several years, growth rate and rate of major economical
activities. 
The annual survey of industries published gives the details of total
employed workers, production materials used and manufacturer
specific information.
2. Ministry of commerce and industries: This ministry provides the

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

data. It includes the gender, age, occupational information data.
4. Director general of commerce and intelligence: This office

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

economy.
6. Reserve Bank of India: RBI publishes currency and finance reports

for the government and banking sector. It also focuses on savings
and investments.
7. National sample survey: This activity is conducted by ministry of

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

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

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

activities related to the states like - occupation, education etc.
(b) Non-government publications: These publications include

following:
1. Various chambers of commerce.
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2. Bombay stock exchange and National stock exchange

3. Export promotion councils
4. Press media associations
5. Small industries development board of India
6. Indian cotton mills association
7. Confederation of Indian Industries
(c) Syndicated services: These services are provided by certain

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

Operations research group (ORG).
The syndicated services are becoming more popular since the

demands such critical informations are increasing.
Syndicated services are capable of providing precise data at a good

speed, since they have fullfledged trained staff and necessary
machinery to perform the operation. Syndicated services since they
are full-time in the business they can offer lower unit cost and same
quality for the survey.
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(d) International agencies:

1. The international labour organizationILO): It publishes data on
total and active population, employment, unemployment, wages
and consumer prices internationally.
2. The organization for economic cooperation and development
(OECD): It publishes the data on foreign trade, industry, food,
transport, science and technology.
3. International monetary fund (IMF): It publishes reports on
national and international currency and exchange regulation.
Apart from this researchers can make use of following sources:
Published sources: Books journals, periodicals, abstracts, directories,

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

broadcasts, etc.
3.5 Popular methods of data collection

• Quantitative research method: The data collected by following a
structured and well controlled scientific research design can yield
numerical values which can be analyzed using statistical
techniques. Such analysis proves very relevant and even results
derived from such a small data can be applied to a larger sample
• Qualitative research method: Many times researcher has to gather the
descriptive information and which needs to be interpreted. If the
researcher is well trained in judging and interpreting the relevant
information then this form of research can provide valuable
information to the management. However, it does not provide
accuracy as same as quantitative research.
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• Survey method: This technical method are widely practiced in

marketing research. Survey is a field studies intended to secure
different types of information from the sample of respondents
which are representatives of a large group.
• Questionnaire is a set of questions which a surveyor uses to record
the information from the respondent in a structured manner.
Information collected may be of quantitative or qualitative nature.
Steps in survey:
• Define the problem
• Determination of survey objectives
• Design the questionnaire
• Determine the technique of survey
• Planning of survey
• Training the investigator on the project
• Data collection
• Data tabulation and analysis
• Preparation of the report
Different types of surveys

a. Personal interviews
b. Postal or via e-mail
c. Telephonic survey
Each of the technique has its own merits or demerits depending upon
the nature and scope of the project.
• Personal interview
Advantages
• In personal interview respondent is serious and provides mostly
accurate information.
• Response rate is good.
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• It can be complete and faster.

• It may be possible to do in-depth probing
• Interviewer can decide the priority of questions and depth
depending upon responses.
• Interviewer gets a good idea about feelings and motives.
• Interviewer can use recording equipment
• Characteristics of the respondents like voice tones, expressions, etc.,
can be assessed.
Disadvantages
• Setting up an interview is a skilled task.
• Time consuming process
• Geographical limitations
• Expensive procedure
• It needs a well prepared agenda of questions
• Respondent – bias - tendency to please or impress, results into false
data, hurrying or winding may miss out important data.
• Embarrassment is possible if questions are too personal
• Interviewer is required to be properly trained.
Types of the interviews

Structured
• Designed and structured schedule for the interviews
• Well organized questions and pattern of answers is also predicted
• Respondent may be irritated by giving oversimplified answers.
Semi structured interviews

The interviews which are focused by asking certain questions, but
with the scope for the respondents to express him or her at length.
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Unstructured Interviews
This sometimes is called as in-depth interviews wherein the
interviewer starts interview with a general question and later allows
respondent to express freely. The interviewer offers a free field to
respondent for talking but tries to skillfully frame sub questions in a
manner where a required data can be captured. Probing is an effective
technique to extract the desired information.
For example:
a. Would you like to add on more to any specific point?
b. Why do you say that?
c. What is that which makes it interesting for you?
Step by step guide to conduct an effective interview:

One must understand no standard format can be applied to all
situations. Situation, time and people vary so it has to be planned
activity keeping in mind all such points.
• List the areas of attention ( focus to extract valuable information ) to

the project.
• Decide on the type of the interview.
• Transform the desired areas of interest from the project’s point of
view into questions
• Have trial of the questions on a known person to understand the
effects of the questions
• Schedule an appointment with the respondent and convey them
clearly the objectives. Discuss the time and purpose at length
• Fix a suitable time and venue which is comfortable to both the
parties.
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Telephonic interviews:
This is an alternative form of conducting interview to the personal
interview or face to face interview.
Advantages
• Relatively cheaper method
• Quick
• Speed of data collection is higher
• Wider geographical coverage
• Spontaneous responses
• Can record the answers
Disadvantages
• People are reluctant to talk over phone for a data purpose for a
longer time
• Questionnaire has to be there with the interviewer.
• It may not be possible to connect all the respondents over a phone.
• Time is wasted in connecting a respondent working in a large
organisation
• Simple questions are required over the phone
• Respondent has a little time to think
• Good telephone etiquettes are required.
• Questions must be asked to authority or a person who can really
contribute to the information.
Observations: Observation is one of the vital methods of collecting

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

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

showroom to identify the suitable area for a new product
merchandize.
A manufacturer can also send observers to the store to see the

movementnts of particular products for which the decision is required
to be taken for inventory purpose.
Difficulties in observations
1. Inadequacies of sensual organs of a researcher.
2. Effects of interaction between the observer and which is under
observation.
3. Interdependence of the observer to the thing under observation.
Limitations of observation
a. Only current behavior can be observed and not the past.
b. Observation cannot pinpoint an individual’s attitude or opinion.
c. The observation method is very slow and time consuming when
sample is very large then it may take a longer time.
Retail audit: Retail audit is a very common method of marketing

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

• Availability of the product within the store.
• Type of the store (location, speciality,ownership)
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• Products merchandised and brands cross tabbed with type

• Types of displays
• Customer demands
• Current market share
The above mentioned valuable data can be obtained from the retail
audit, which can be used for
• Identifying new business opportunities
• Trend analyses
• Forecasting
• Competitor analyses
• Understanding changes in distribution system
• Analyzing prices
• Product portfolio Analysis
Consumer Panel: Consumer panels are unique. They enable a

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

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

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

technique for a scientific research; however experimental
methodology is widely used in marketing research for the purpose of
test marketing research.
This method is also widely used in product launches to determine the

likely acceptance of a new product test samples given in malls,
automotive test ride of a new vehicle, sample of a new detergent
received at house for test, they fall in this category.
3.6 Steps in data collections

The purpose of the data collection is to obtain the information for
creating records which help in making decisions on important issues.
1. Designing the Questionnaire

Questionnaires: Questionnaire is a popular means of the data
collection, but they are complex to design and often many expert
opinions from marketing are considered before designing
Advantages
• It can be used as own method or the basis for the interview or a
survey.
• It can be e-mailed or posted.
• It can cover a large no. of people
• It has a wide geographical coverage
• Cost effective
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• No prior arrangements needed

• Respondent is not pressed hard for information
• No bias for the interviewer
• Respondent can consider the response.
Disadvantages
• Complexity while designing
• Framing simple questions and obtaining critical information
balance.
• Low response rate (although follow-up may help)
• Considerable time delay because of availability of the respondents
• Several reminders and follow-up for obtaining the questionnaires
• Assuming literacy and language problems do not exist
• Not sure whether exact respondent has completed
• May not be possible for providing assistance at the time of filling
up
• Large problem of incomplete questionnaires.
• Replies may not be serious
• Respondent gets complete questionnaire in hand so after reading he
may get feeling of it being uninteresting, too personal or too long
and then may decide to drop the idea of replying.
Questions
• Questions should be short, simple and pinpointed.
• Confusing language or phrases must be avoided.
• Researcher must ask only those questions which a respondent can
definitely answer and is relevant to the project.
• Hypothetical questions must be avoided (For example how many
guest you had in last one year).
• Questions which push the opinions must be avoided (For. example:
“Do you consider that Cadbury is the best chocolate in the world”?)
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• Imprecise terms like generally, normally, usually must be avoided

time precision must be projected in question like (For example: at
least once a month or a week).
• Each question should be addressed to a single issue (For example:
Do you take your annual holidays to Goa), Here the question
should be asked in 2 discrete stages like
a. Do you take your annual holiday?
b. Do you prefer Goa as a destination?
• Avoid using negative questions (For example: Is it not true that you
took your family out for a dinner last week).
• State units and range when asking income-related questions
• What was your income last year (1 to 2L, 3 to 5L 6 to 8l). Do not
expect a very high degree of accuracy in such questions.
Types of questions
(a) Closed questions: A question when asked the possible answer lies
between yes/no is called as a closed ended question. These types of
questions are asked when factual information is required to be
obtained.
• Sex: Male/ Female
• Do you like watching cricket: yes/no
• Do you like Sharukh Khan: yes/no
Some times there is a third category of answers for these types of

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

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

respondent chooses how much they agree on a scale.
My experience on Kingfisher airlines India to Dubai.
★ Food was
Excellent good ordinary not okay
★ Rate the Service of the airline staff( 7- as the best- 0 as worst)

0, 1, 2, 3, 4, 5, 6, 7- Pl circle your choice.
★ My experience by Kingfisher in total delivered value for money

Strongly agree Agree Disagree Strongly disagree
A semantic differential scale attempts to see how strongly an attitude

is held by the respondent.
For summary and analysis purpose score is applied thus qualifying

the various degrees of opinions expressed. Within limitations
semantic differential can provide a useful way of measuring and
summarizing the subjective opinions.
Other types of questions which describe the opinions as:

★ Which two words best describe…
★ Which one of the following statement best describes…
★ How much do you agree with following statement…
(c) Open questions: An open-ended questions focus on elaborative

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

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

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

respondent has completed the questionnaire in all respect. Immediate
checking is required after receiving the questionnaire because delay in
checking will again make it difficult to contact the respondent and get
the clarification.
(f) Interviews: Interviewing is a technique used for the primary data

collection to gain the understanding of the respondent’s attitudes,
motivations, preferences etc. Interviewers can conduct interview on
one to one basis or in a group. They can be conducted in office home
mall restaurants or at a agreed location.
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2. Pre-collection activity
Prior to any data collection the pre-collection activity is a crucial part
in the process. It involves checking of questions in questionnaires,
structure, verifying the sample and method of collection etc. This is
required to eliminate the field problems beforehand.
3. Data Collection
After pre-collection activity is completed, Data collectors set out to
collect the data by hitting on to targeted sample by means of
interviews or other suitable methods to gather primary data.
4. Present the findings

Once the data is collected from the field it is accumulated back in the
office.
a. After receiving the data it is segregated to the requirement of the
analyst. If any information is missing it is communicated back to
the field personnel to get the desired information.
b. The analyst collates the data and makes it ready for applying
statistical tools of analysis.
c. Statistical tools are then applied to obtain the findings.
d. Findings are converted into the report and suggestions are
presented to the management.
3.7 Ethics in collecting the marketing information

Unethical approach towards data collection definitely leads to the
wrong predictions.
• If the marketing research group misrepresents itself to the focus
group then targeted sample will not respond honestly and this will
greatly affect the research.
• If the target group for survey is not identified properly then it will
not give the desired data.
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• If the sample is not interviewed to the requirement of the

questionnaire the entire exercise remains incomplete.
• Most importantly a mutual trust relation between the researcher
and the targeted sample is necessary for the effective contribution
and responsibility of the information given.
• Surveyor must ensure the protocol of confidentiality of information
and should be able to give confidence to the respondent that the
information strictly will only be used for research purpose.
• Surveyor must honor time and value his commitments to the
respondent. Surveyor must thank the respondent dutifully in
person or by a way of company letter for his time spent and
information given.
3.8 Summary
Every business requires market information to understand the
customer and market.
Marketing investigators usually make use of two types of major

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

form. Researcher can obtain the data in two forms
(i) Primary data
(ii) Secondary data
Primary data is attained from surveys, observations interviews

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

books journal, abstracts, Reports etc.
Questionnaire is a widely used tool in primary data collection.

Careful design and proper usage of questionnaire can create valuable
information on the research project.
Researcher must follow ethical data collection methods in order to get

desired results. Unethical practices followed like misrepresentation
can lead to a loss of confidence with respondent and results in a loss
of valuable information.
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3.9 Self assessment questions

1. Data is nothing but _____________.
(a) Source of information
(b) Information
(c) Memo
(d) Instructions
2. One of the following is not secondary data _____________.

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

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

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

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

(a) Change in attitude
(b) Trend in forecasting
(c) Product portfolio analysis
(d) Customer demand
7. Retail audit plays a very important role in _____________.

(a) Assessment of the brand image
(b) Observing customer purchases
(c) Creating a sales data
(d) Helping merchandise
8. Financial data is a _____________.

(a) Primary data
(b) Secondary data
(c) External source of information
(d) Stock exchange information
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
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MARKET RESEARCH TECHNIQUES
Chapter 4 - Market Research Techniques
Objectives
This chapter enables students to understand various marketing
research techniques and their applications. Marketing research
incorporates the science of understanding human behaviour in order
to better understand, how consumers choose their products.
Structure:
4.1 Techniques of Marketing Research
4.2 Test Marketing
4.3 Retail Store Audit
4.4 Consumer Panel
4.5 Opinion Polls
4.6 Cool Hunting
4.7 Segmentation Research
4.8 Sales Forecasting
4.9 Demand Estimation Research
4.10 Market Analysis
4.11 Summary
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4.1 Techniques of marketing research

Marketing research helps to understand the human behavior and
attributes of human nature which help to understand the consumer
decision of buying any product. The main objective of marketing
research is to analyze the responses of the consumer towards the
product in terms of various features and what benefits consumer
perceives from the products.
Marketing organizations use various techniques.
4.2 Test marketing

Test marketing executes entire marketing plan for the new product on
a pilot level to get a fair idea about performance at every stage of
marketing plan. The results of the pilot launch or test marketing can
be used to make judgments on national level marketing.
During the test marketing, some basic questions need to be answered.

a. Geographical area for test market.
b. What is required to test?
c. How long to conduct test marketing?
d. Criteria to decide the success.
Company prefers to invest in a test marketing before heavily

investing in the nation wide marketing programme.
Strategy which is tested beforehand always has a greater chance of

succeeding. In case of any surprise elements within the programme
or adverse feedbacks. The defects can be rectified before the launch is
made on a larger scale.
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Objectives of the test marketing:

a. Study of the consumer traits
b. Frequency of repurchase
c. Assessment of levels of creativity, innovativeness, customer
interest, customer initiative
d. Study of competitive responses and reactions
e. Study of marketing effectiveness
f. Assessment of the potential market share
g. Get an idea for product positioning
Important factors involved in test marketing

1. Direct costs
(i) Establishment of proto type products
(ii) Advertisement and commercials
(iii)Sampling
(iv)Trade allowances (distributors/agents)
2. Indirect costs
a. Additional efforts for penetration.
b. Additional sales cost and sales time.
c. Possibility of deviation in sales efforts from existing product sales.
3. When to test market

a. Time: When new product is ready for launch
b. Speed: It is required to be tested at a good speed with extra
efforts, as by this activity the biggest threat is awakening of the
competitor. Generally length of the test marketing is anywhere
between 2 months up to 2 years.
c. Place of test market: It must be ensured that the test marketing be
carried out in similar areas where nation wide strategic decision to
launch is made. This to get the idea about the responses of the
potential consumers.
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Typical examples of test marketing

a. All Bajaj products are test marketed in Hyderabad.
b. Liril – soap was test marketed in Lucknow.
c. Close-up was test marketed in Bangaluru.
4.3 Retail store audit

It is a technique used to determine the quantitative feedback from the
retail consumer buying behavior.
As compared to other marketing techniques this particular technique

leads to more accurate and realistic feedback because it directly deals
with the products actually bought by the consumer.
Objectives of the retail audit

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

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

selected for achieving certain objectives
Objectives of consumer panel:
A) To study the brand loyalty of the consumer
B) To obtain feedback from the consumer about their tastes,
preferences, expectations, etc.
Frequent users of this research technique:

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

the basis of stratified random sampling.
The record from each member for the following is generated:

a. Particulars of items purchased (household, drugs, grocery).
b. Number of units purchased.
c. Brand selection.
d. Price paid.
e. Location of purchase.
f. Purchase cycle: weekly/fortnightly/monthly.
The information thus, collected is tabulated and analyzed
Outcome of this exercise gives following useful information:

1. Approximate estimation of retail sales.
2. Number of families purchasing specific brand regularly.
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3. Recent trend in retail.

4. Purchase Details of the new customer.
5. Purchase details of the old customer.
6. Detailed information about brand loyalty.
7. Market shares of particular brands.
8. Study of impact of promotions of various brands.
9. The type and nature of the store preferred by the consumer panel
and why?
10. The impact of price fluctuation and recession/inflation etc.
4.5 Opinion polls

In our democratic country like India, opinion of a common man holds
adequate importance.
Opinions are taken for the topics like education, law, politics, etc.
Methodology: The methodology involves the following:

a. Sampling criteria
b. Questionnaire
c. Data tabulation
d. Analysis
e. Interpretation of the data
f. Presentation of the data findings
Who conducts opinion polls?

a. Magazines
b. Political parties
c. Educational institutes
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Desired specifications in opinion poll

a. Topic of the poll
b. Geographical coverage
c. Size of the sample
d. Time availability
e. Budget
f. Parameters of the analysis
4.6 Cool hunting

A cool hunting firm is a marketing research agency exclusively
operating to conduct research of the youth demographic. It is their job
to make observations and predictions in the changes of new and
existing cultural trends. They then compile the data and prepare the
reports for emerging or declining and changing trends. They also
make predictions about the future trends.
Such reports are sold to the large corporate or companies whose

products are concerned with these.
A popular name in cool hunting is Viacom’s MTV-television network.
Cool hunting is relatively simpler as compared with the marketing

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

a. Focus groups: Focus group is a very popular attempt in cool
hunting as it provides a direct insight to the thoughts and feelings
of a sample. Cool hunters typically gather a group randomly from
the targeted demographic and place one or two cool hunters
within the group to observe and record the information. It
depends upon the study subject as to what type of method is to be
used for gathering information from the focus group. It may be
about youth culture, lifestyle or comparing brands, understands
the responses of the youth to brands. Participants in focus groups
are generally awarded cash awards or free products in order to
keep their interest in participation.
b. Undercover cool hunters: A cool hunter also may opt to hire a

group leader or a trendsetter to work as a undercover, who gather
the report about the choices, preferences, likings and disliking of
individuals within the group. They are also aware about the
feelings and thoughts of their co group members about particular
products, hence, they can authentically comment on behalf of the
co group.
c. Online cool hunting: There are various methods of research

online; upon completion of a survey the participant gets a prize or
a monetary compensation. Many times cool hunters will enter the
chat rooms and web groups by being a part of the audience and
gather the required information
4.7 Segmentation research

Market segmentation is the division of the market into subgroups
with similar motivations, nature, qualities. It is widely used for
segmenting geographic differences, personality differences,
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demographic differences, techno graphic differences, psychographic

differences, use of product differences, gender differences etc.
Segmentation research can be carried out by three different ways:
(a) Cluster analysis (b) Discriminant analysis (c) Factor analysis
(a) Cluster analysis: Market segmentation usually depends upon

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

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

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

factor analysis and cluster analysis address the interdependency
among the variables.
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Steps of Discriminant analysis:

1. Formulation of the problem.
2. Determining the discriminant function coefficients which results
into highest ratio of group variation.
3. Testing the significance of the discriminant function.
4. Interpreting the results determining the validity of the analysis.
(c) Factor Analysis: Factor analysis is a very popular method to

determine the function of inters dependence. Study of factor analysis
completely focuses on interrelationships without defining the
variables to be dependent or independent. Factor analysis basically
combines variables to create smaller sets of factors. A factor is nothing
but a linear combination of variables. Factor analysis groups different
variables according to their correlation.
Factor loading: A factor loading can be defined as the correlation

between the factors and underlying variables. A factor loading is a
result of factor analysis.
Variable Factor 1 Factor 2 Factor 3

Variable1
Variable 2
Variable3
Sum of squares
For example: As mentioned in above matrix.
Each cell in the matrix represents the correlation between the

variables and the factor associated with the cell. The square of this
correlation represents the proportion of the variation in the variables
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explained by the factors. The sum of the squares of the factors in each
column is called as Eigenvalue.
An eigen-value represents the amount of variance in the original

variables which is associated with the factors.
4.8 Sales forecasting

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

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

launch of new products, divestment decisions, etc.
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Key decisions from the sales forecast derived are:

a. Manpower requirements
b. Promotional mix
c. Investment in production and infrastructure.
Types of forecasts: There are two types of forecasts, Macro and Micro.
Macro forecasting is concerned with forecasting of the total market.
This particular research is about determination of the existing level of
market and future market.
Micro forecasting is concerned about detailed product unit forecasts.

This particular research is about determination of the specific product
market share in a specific industry and the future requirements of the
products.
The selection of the appropriate method for forecasting depends upon

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

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

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

factor because if the high risk is associated with forecast then it
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stands to the reason that the forecast has to be prepared with

maximum possible accuracy. The costs involved with accuracy are
also high, however, for such high risk, business pays for it.
Various methods of forecasting

(A) Subjective methods:
These methods generally rely upon the qualitative judgments from
the experienced professionals, trained and experts from the market.
Their opinions and judgments are straightway transferred into
quantitative estimates of the company product sales.
• Executive opinions method: This is a very popular among the

industry, this calls for a group meeting of experienced
professionals and experts from the industry in a structured forum
with a specific agenda for sales forecasts. Well experienced
managers from the company keep noting different opinions and
views and reconcile them to arrive at quantitative estimates for
future sales.
• Delphi method: The Delphi method is also based on the group
meetings of professionals and experts from the industry, but here
they do not interact face to face, this is done from the individual
feedback independent of each other and through the iteration
process. The advantage of this system is that there is no overlap
of thinking and individual gives his or her judgment based on
personal view and objective thinking.
(B) Objective methods:

(i) Sales forecast using time series projection method: In these
particular methods the demand projections are made from the
historical data and trends.
• Trend projection method: This method involves the extrapolation
of the historical data and sales revenue in the future demands of
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the customer. This method works very well if the business is

stable and is not subjected to sharp up-downs in last few years
and expects to continue on the same track.
• Exponential method: In exponential methods the sales revenue
forecasts are modified by examining the potential changes in the
observed historical data trends, the odd figures are removed from
the data by balancing the total data for proper projections. This
method is useful since it shows the exponential data and sharp
spikes of up and down are removed with a sound reasoning.
• Moving average method: In this particular method simple
arithmetic average is used to forecast the future projections or
forecast. This method is suitable for the type of business which
periodically experienced adjustments in their revenue profile or
structure. However, they return back to their historical cycle over
certain period.
(ii) Sales forecasting using causal methods: Casual methods take a

statistical correlation approach to develop a sales forecast based upon
the cause-effect relationship in a quantitative manner.
Some of the methods are discussed below:

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

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

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

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

sales forecasting does require a lot of subjective judgment as well.
These subjective judgments may not lead a sales forecast to a specific
number since they are based on assumptions. Therefore analyst use a
combination method of subjective and objective forecasting to
estimate the sales for next year.
Method for preparing the sales forecast
Preparing a sales forecast has three stages:

a. Prepare the macro economic forecast: What will happen to the
overall economic activity in the relevant economies in which the
product is sold?
b. Prepare an industry forecast: What will happen to overall sales in
an industry based on the issues that influence the macroeconomic
forecast?
c. Prepare a company sales forecast: Based on what company thinks
about the product about next year, a strategic decision of taking a
growth and how much to increase in the market share.
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4.9 Demand estimation research: The first stage in sale

forecasting process is estimating the demand
The demand can be considered of two types:

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

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

to know the actual related industry sales taking place in the market.
This involves identifying the competitors and their estimated sales
figures. This figure is essential to evaluate the company performance
against the competitors.
Marketing research firms conduct different surveys and then make

their reports available on payments, which is also a useful source of
information to analyses competition. This issue is critical because as a
manufacturer, an industry must know how the market for their
products are growing annually and how their competitors are
performing. Based on this company can evaluate the rate at which
they are growing and decide the future course of action.
Current Company demand = current market demand × current

market share of the company is the standard equation of the
estimation of current demand.
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4.10 Market analysis

A market analysis is a documented investigation of a market that is
used to inform firms’ planning activities, particularly around the
decisions of inventory, purchase, workforce - expansion/contraction,
facility expansion, purchasing of capital machinery, promotional
activities and many other aspects of the company.
Managers are required to make their decisions using market analysis

data and understand how that data was derived. Hence, all managers
are needed to have reasonable understanding of the tools most used
for making sales forecast and analyzing markets.
A larger number of market analysis techniques are related to sales

forecasting, others are more general techniques for analyzing markets.
Market analysis is important in areas such as: Sales forecasting,
market research and marketing strategy. Sales forecasting and market
analysis are complementary to each other.
Market and sales analysis enables a company to identify the areas

where its sales performance has been good or below average. A
systematic and comprehensive sales analysis will be helpful to the
company to boost its sales efforts.
Sales research is a systematic study of issues like current value and

volume of sales, sales potentials, sales forecasting, sales territory
evaluation, measurement of salesman’s work performance and sales
expenditure.
Areas covered under this research:

(a) Market research analysis: It is a part of marketing research which
is undertaken to develop new market potentials, market share
analysis, market segmentation, the nature and extent of competition
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in the market, demand supply position and other characteristics of the

market.
(b) Sales analysis: Sales analysis may be defined as an analysis of

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

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

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

for analyzing the sales performance. For this the individual
sales record is collected from the invoices to find out the value
and volume of sales frequency of buying, payment schedule
and so on. Such analysis enables the company to concentrate on
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a few customers who can give big orders and contribute more
to total sales.
(iv)Sales analysis by size order: Sales are analysed on the basis of

quantity ordered at onetime. Such data can be used to find out
the cost of obtaining and executing an order, to fix up minimum
ordering quantity, to train salesmen, to bring large orders or
closing down sales or certain products in certain areas.
(c) Sales forecasting: Sales forecasting is the third area covered by

sales research. Here, systematic efforts are made to anticipate future
sales of product during prescribed time and in prescribed market and
at a specified price. Reasonably accurate sales forecast are useful for
production planning and other activities relating to sales.
4.11 Summary
Marketing research helps to understand the human behavior and
attributes of human nature which help to understand the consumer
decision of buying any product. The main objective of marketing
research is to analyze the responses of the consumer towards the
product in terms of various features and what benefits consumer
perceives from the products.
Test marketing executes entire marketing plan for the new product on
a pilot level to get a fair idea about performance at every stage of
marketing plan. The results of the pilot launch or test marketing can
be used to make judgments on national level marketing.
When to test market:

a. Time: When new product is ready for launch
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b. Speed: It is required to be tested at a good speed with extra efforts

as by this activity the biggest threat is awakening of the
competitor. Generally, length of the test marketing is any where
between 2 months up to 2 years.
c. Place of test market: It must be ensured that the test marketing be
carried out in similar areas where nation wide strategic decision to
launch is made.
This to get the idea about the responses of the potential consumers.
Retail store audit: It is a technique used to determine the quantitative

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

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

for achieving certain objectives.
Objectives of consumer panel:

(A)To study the brand loyalty of the consumer
(B) To obtain the feedback from the consumer about their tastes,
preferences, expectations, etc.
Opinion polls: In our democratic country like India opinion of a

common man holds adequate importance. Opinions are taken for the
topics like Education, law, politics etc.
Methodology: The methodology involves the following:

a. Sampling criteria
b. Questionnaire
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c. Data tabulation
d. Analysis
e. Interpretation of the data
f. Presentation of the data findings
Cool hunting
A cool hunting firm is a marketing research agency exclusively
operating to conduct research of the youth demographic. It is their job
to make observations and predictions in the changes of new and
existing cultural trends. They then compile the data and prepare the
reports for emerging or declining and changing trends. They also
make predictions about the future trends.
Such reports are sold to the large corporate or companies whose

products are concerned with these.
A popular name in cool hunting is Viacom’s MTV-television network.
Segmentation research
Market segmentation is the division of the market into subgroups
with similar motivations, nature, qualities. It is widely used for
segmenting geographic differences, personality differences,
demographic differences, techno graphic differences, psychographic
differences, use of product differences, gender differences etc.
Segmentation research can be carried out by three different ways:

(a) Cluster analysis (b) Discriminant analysis (c) Factor analysis
Sales Forecasting: An estimate of a company’s sales volume for a

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

a. Manpower requirements
b. Promotional mix
c. Investments in production and infrastructure.
Demand estimation research: The first stage in sale forecasting

process is estimating the demand.
(A)Market demand: This is the estimation of the total requirement of

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

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

a market that is used to inform firms planning activities, particularly
around the decisions of inventory, purchase, workforce - expansion/
contraction, facility expansion, purchasing of capital machinery,
promotional activities and many other aspects of the company.
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1. Suggest which of the following marketing technique can be used
to understand the satisfaction levels for the customers of cyber
café _____________. 
(a) Exploratory research 
(b) Descriptive research 
(c) Consumer Satisfaction research
2. Suggest a technique to be used to understand a response for new

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

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

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

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

_____________. 
(a) Finance department of supply company  
(b) Retail mall  
(c) Opinion poll
7. Opinion polls are observed in any of the following process

_____________. 
(a) During election  
(b) Concept marketing  
(c) Ad tracking
Activities for students:

(a) Explain in brief the concept of test marketing with reference to
(i) Bath soap
(ii) Breakfast cereals
(iii)Branded perfumes new brand
(b) Explain how you will test market APPY FIZZ.
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
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MARKETING MIX RESEARCH
Chapter 5 - Marketing Mix Research
Objectives
After studying this chapter, students can understand how marketing

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

mix, which are called as 4 p’s. It is essential that an over all research
plan involves all the elements of marketing strategy.
5.2 Types of Marketing Research

Marketing mix research: The research in marketing mix is very useful
in deciding where to place the, when to place and how to place the
product.
A framework for the research design was developed by Nigel Bradley

in year 2004. This is very similar to 4P’s of marketing mix.
! Purpose
Population
Procedure
Publication
!  
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These framework discuses 4 stages of the design

(a) Purpose
(b) Population
(c) Procedure
(d) Publication
(a) Purpose: There has to be a specific purpose for the research. The
purpose of the research is to be explained as a problem and then
transform into the hypothesis for the purpose of the research.
The main purpose of the research is the reason why the research is
being done? This term embraces studies to gather marketing
intelligence, where the sales manager’s role is to scan the
environment and gather useful data.
The first step towards it is to create a null hypothesis (H0). This is

usually intended to prove invalid or reject., another hypothesis
created (H1). This is actually our research hypothesis; based on this
hypothesis a researcher can design a research programme to test the
hypothesis. When the results are obtained, they are examined against
the prediction of the null hypothesis. The basic idea is to use this
possible explanation and look for supporting data. One needs to
spend enough time and efforts to formulate the hypothesis. It is
research problem and it guides to carry out the research.
(b) Population: When considering any market the researcher needs to

ask “who is involved in research”.
Who are the players in the market? Who should be contacted for the
investigation and where are those subjects? This area defines the
target, audience, the users and non-users. Who will become the
informant? Should we contact all of them or just few of them?
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Similarly, should we carry out the census or a sample? Should

respondents be selected by probability or non probability method? In
this specific manner researcher decides whom to select as a
respondent and what is the way to get the information from the
respondent. In a nutshell, this part of the MR involves in identifying
the relevant sampling frame.
An important part of primary research is sampling. The researcher

chooses to interview or observe people. Who he or she thinks will
give the information which will solve the research problem. Hence for
choosing an appropriate method, one needs to consider whom to
select and how to select. This applies to qualitative research, with few
people and quantitative research many people. In marketing research,
much emphasis is given on the end user. An expert or a professional
connects between the primary and secondary data. This part is
precisely identified in the sampling frame.
(c) Procedure: This point focuses on how to conduct the research,

whether it is quantitative or qualitative the length of information
desired. The researcher also checks at this stage the ready data
available and then decides upon the methods of collection and
technique for analysis. The best research starts of by looking at the
secondary data, that is the information which already exists.
With the use of technology now days, it is relatively easy to obtain the
data. Internet and advance technology has increased the speed of
information transfer and more importantly the access to the data.
Secondary data is not sufficient to come to conclusions, so primary

data is sought from various sources of information; it is done by
interviewing and observing various people and through various
experiments.
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The two basic sources of information: Internal (Within the

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

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

sensitive information will have no competitive advantage if it is
placed in the public domain. Choices are needed to make on how
publication can take place, like:
(a) Should the written report be created?
(b) Should it be given in a tabular form?
(c) Should it be made in the form of a presentation (PPT)?
(d) Should it be presented directly on site of the results?
There are many readers of the research reports and these audiences
have different expectations from the report. Reporting must be
personalized; writing and presentation style must be customized and
adapted to the user. In case of reports for general public interest like
reports based on health, welfare, transport and consumer report etc.
Researcher must find suitable magazines or publishing domains
which will give maximum exposure. Editors of periodicals regularly
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commissions research for editorial reasons, so as to help enable the

findings to reach the masses.
There are several applications of the MR Mix. The framework

provides a reminder to start a design research and develop a
proposal. This structure also helps to ascertain parameters, besides
providing guidance for the specific aspects of the questionnaire
design, bearing in mind the purpose of the research, type of
respondents, procedures (scales, mode of delivery, show cards), and
publications (production of the final questionnaire). One can also use
MR Mix in sampling; the purpose, population needs to be carefully
analyzed to make sampling decisions; the procedure involves the
selection by quota or other means and publication relates to the
operation of making the sample ready and publication relates to
making the sample ready for the field work.
In desk research projects, 4Ps can be used can be used to evaluate

secondary data why it was conducted? Who was involved? What
research procedures were used? And why it was published? Indeed,
4Ps can be applied to any part of the research. Another application of
MR Mix will follow research, thus, allowing the results to be
organized, besides facilitating evaluation of findings by asking the
key questions about each P. During the presentation, the audience can
pose questions within the framework, thereby, leading to a greater
understanding. Initial use in teaching has been favorable, the frame-
work is very user-friendly to marketing people and it allows the
debate to take place.
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Element Coverage
Purpose Research objectives and sub objectives, aims ,
hypotheses, etc.
Population Who are the participants? Target audience, customers or
players. Users and non users? Respondents? Source of
respondents? Census or sample? Selection by probability
or nonprobability.
Procedure Data collection, data processing, analysis. Secondary or
Primary research? Qualitative or Quantitative? Personal
or by phone or by mail? Questions or observations?
Publication Limited or wide audience? Who should know? Timing
needs? Reporting and presentation needs, written reports,
oral presentations, electronic publication or in mass media
Some of the major techniques are as mentioned below marketing mix

research:
1. Research with respect to 4Ps:
• Product research
• Pricing research
• Distribution research
• Promotional research
★ Product research:
— Concept testing
— Brand name evaluation
— Packaging testing
★ Pricing research
— This involves the research of the consumer’s ability to pay
put, willingness to sacrifice for the value, trend and
necessities.
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★ Distribution research:
— This research is aimed at selecting retail site or warehouse
locations to support the sale.
— Research for suitable marketing channel
— Supply chain: Selection of the appropriate supply chain and
logistics linking the suppliers and customers.
★ Promotional research :
— Investigating the effectiveness of advertising, sampling,
coupons, public relations, sales promotions.
— Media research helps the business in deciding which media
alternative is the most suitable to convey the intended
message to the consumer.
— Promotion: The communication functions of the business
responsible for informing and persuading the buyers.
— Integrated marketing communications: A combination of all
promotional efforts like (advertising, event managing,
personal selling, public relation etc.
5.3 Concept testing

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

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

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

be carried out in future. This effort helps to convert new idea into a
concept. It also forecasts the demand and analyses whether the
product is ready for the launch.
Concept testing is more often used in the concept development to test

the success of a new product idea before it is marketed. Concept
testing and development provide the direction and guidance
necessary to selectively identify and communicate key products or
service benefits, uses, packaging, advertisement, sales approach,
product information distribution and pricing.
It is a process of using qualitative and quantitative techniques to

evaluate consumer response to a product idea before its introduction
to the market. It can also be designed to establish communication and
understanding consumer attitudes towards existing products. These
methods involve the evaluation by a consumer of product concepts
having certain specific benefits. Such as’ A detergent is removing
sticky stains yet it’s giving a pleasant aroma. Such methods are
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known as methods of concept testing and theses tests are performed

during the survey, personal interviews and focus groups etc.
Sometimes’ these methods are also used in combination with
quantitative methods to generate and evaluate product concepts.
The major component of concept testing is generation of the concept.

Advertising professionals generally create such concepts and sell to
industries and in turn they are communicated to consumers for
evaluation purpose. Concepts are tested through popular methods
like market research, consumer survey, etc.
The quantitative component of concept testing is generally offered in

three different categories.
1. Concept evaluation, where concepts representing a product ideas
are presented to the consumer in an audio or visual form and then
quantitatively evaluated on the basis of, consumers indicating
degrees of intentions of purchases, liked hood of trial, etc.
2. Positioning, which is a concept evaluation wherein concepts
positioned in a same functional product class and which are
evaluated together.
3. Product/concept tests, where consumers first evaluate a concept,
then the corresponding product and results are compared.
5.4 Brand equity research

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

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

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

useful to the manufacturer for not only boosting sales but also
maintaining loyalties of consumers in a given brand. A brand image
survey is carried out to understand and collect consumer view- points
towards brands like brand awareness, brand recognition, brand
preference, brand loyalty, etc. It helps to promote sales and assists
consumers in buying branded products. A good brand image is
always an asset to a company and which generates a wealth of brand
loyalty.
The brand image research is important for the following reasons

(a) Brand recognition: This activity is carried out to find out how well
consumers are familiar with the company’s branded product. If
consumers can identify the product on the basis of attributes like
taste, size, shape, etc., the product enjoys good image premium
with the consumers.
(b) Brand preference: Brand image survey helps in finding out the
consumers’ preferences likes and dislikes, attitudes, etc. This data
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is very useful in understanding and creating a favourable image

about the brand.
(c) Brand loyalty: Loyalty signifies the faithfulness of the consumer to
the product and shows the conviction on certain attributes of the
product which makes him/her buy repeatedly for a very long
period. This study also suggests many ways to enhance the brand
loyalty, through advertising, promotions, etc.
(d) Brand awareness: It is necessary to find out how far advertising
and other techniques are useful in creating brand awareness about
a product. Brand image research is normally conducted by
collecting information on the brands of the company.
Brand equity research: This method is an attempt to put a value on

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

1. Brand profiling: In this a brand and its competitors are profiled
against a set of indicators and attributes. The indicators are
usually fixed within the model but attributes may be specific to
the brand.
2. Conversion model: This model makes the estimation of the degree
of strength or weakness an organization has in its customer base
with respect to competition. Financial institutions use this model
in products like credit cards business. This is used to identify
customers of competition they should approach. The products
which could be offered as alternative products, where they can
straight away take it.
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The core measures relate to:

• Cognizance
• Awareness
• Usage
• Loyalty
5.5 Brand Name Testing

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

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

1. Emotional bonding power: While naming a business or
developing a product name, such as brand name It is important to
asses whether the name is connecting anyway with the target
market and can help to establish an emotional bond.
2. Memorizing: Brand name research shows that remembering the
brand name is a real test for a brand. It shows how the brand is
registered in consumer’s mind and how it is affecting. Does the
name has enough power so that it can be remembered when it is
seen for couple of times.
3. Latent association: What are the prose and corns associated with
the brand names? What level of positivity and negativity exists?
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Which barriers are required to overcome the negativity in latent

association?
4. Fit to concept: Selecting the best brand name suiting the most for
type of business, company product or service offered.
5. Ability to pronounce: Brand name research reveals that what
should be easy to pronounce, if the brand name cannot be
pronounced properly, then naturally consumer’s won’t ask for it.
6. Resonant: Does the product name sound right to the consumer? Is
the name sounding powerful?
Five best practices for brand name research:

1. Do not rely upon the focus groups: Company names, product
names and services name that are tested in the focus groups tend
to pick over as familiar names, howevers it cannot guarantee most
preferred name.
2. Obtain the emotional feedback, not just facts and figures:
Company name, product name and service name is usually due to
various emotional reasons. Even in the target market, naming can
be a popularity contest.
3. Look for quality and not the quantity: Brand name researcher
researches large number of corporate names, product names and
service names, etc., and try to establish an association with the
product under research. In this process researcher is pursuing to
establish relation between the name and product. Experience has
shown that best results to obtain the relevant name are obtained
from handful strong names.
4. Test the names with right audience: The new brand must
resonate with the target market.
5. Use the latest brand name research techniques: Popular
companies generally prefer the latest technique of brand name
research to effectively measure factors like emotional boding
power, memorability, latent association and fit to concept etc. 
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5.6 Eye tracking

Eye tracking is a technique used to determine where a person is
looking at.
The concepts underlying eye tracking are very simple: It tracks the
movement of the user’s eyes and note the pupils are focused on
which objects. This allows a researcher to understand from the
observation, where the subject is focused, is whether subject, studying
the features or curious about the operations. However in practice
these measures are difficult to achieve and it needs a high degree of
accuracy in observation and judgment. Now a days researchers are
taking help of sophisticated instruments for tracking, analysis and
interpretation of the same. The equipment used for his purpose is
called as an eye tracker.
Eye movements made during reading and pictorial identification

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

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

target stimulus (commercial, website, magazine advertisement, etc,.)
to a sample of consumers while an eye tracker is used to record the
activity of the eye. The resulting data, thus, measured statistically and
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analyzed. This interpreted graphically defining various visual

patterns. By examination of fixation, pupil dilation, blinks are linked
to behavourial aspects of the subject. Researchers can determine a
great deal of effectiveness of a given product. Some companies
complete this type of the research process internally, there are
organizations which undertake such an activity as project, and they
have professionally trained staff to perform eye tracking services and
analysis.
Eye tracking is a unique method to understand in store or within mall

interaction between consumers and products on the shelf by
collecting new insights about the attention of the consumer on
saliency, interest, and stare path. It also helps to analyze the impact of
packaging, placement of the product in store. Further, it measures
spontaneous reactions and behaviours.
The most prominent field of commercial eye tracking research is web

usability. Traditional techniques are often useful in providing
information on clicking and scrolling patterns, eye tracking offers the
ability to analyze user interaction between clicks. This provides the
valuable insight into which features are most eye catching, which
features are complex to understand or disliked similarly which
features are mostly ignored.
Eye tracking more specifically used for assessment of efficiency,

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

as, commercials, print advertisements, online advertisements,
sponsored programmes. Eye tracking analysis focuses on visibility of
the target product or a logo in the context of the magazine, website,
newspaper or a television event. This allows a researcher to asses in
detail, how often a sample of the consumers fixes his/her eyes on the
target product or a logo. In this way, a researcher can quantify the
success of a campaign in terms of the visual impact.
Application of eye tracking: Package design

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

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

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

(shopper) to look at the projected photographs of supermarket
shelves or print ads as “they would normally do” while their eyes are
being tracked.
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A strong shelf presence for the consumer products is critical in cutting

edge of competition and tough economy. Effective packaging
increases the products chances of being sold. The impressive
packaging allows the product to stand out amongst the other
products. However, company needs to figure out what draws
consumer’s attention, especially even before their product hits the
stores.
Focus groups and interviews are important tools for gathering

consumer opinions; however, research has revealed that consumers
are often unaware of what specifically attracts them to the packaging.
Eye movements provide accurate and objective insight into the minds
of the shoppers, and help determine what visually attaracts them.
Multiple packaging concepts are usually developed before one is

selected. Knowing which design is more likely to attract attention can
better form the final selection that eventually appears on the shelf of
the outlet.
“Eye tracking is a critical tool for understanding which package

design will move the product and which will not” says Aga Bojko,
chief scientist and eye tracking expert for a firm based in Chicago.
“First, we determine how noticeable the product is amongst other

products on the shelf and secondly, we want to identify which
elements of that specific design attract the most attention and tempt
the consumer to buy and which elements are completely missed out
by the consumer.”
For example, let us understand the services provided by the eye

tracking company’ “User centric” based in Chicago:
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To facilitate the process, User centric has introduced a new service

that is eye tracking for package design. This service analyzes the
consumer eye movements to help making better package design. This
analysis in particular helps in developing more noticeable, engaging
and convincing package design. This service enables the businesses to
compare the impact of their package design against their competitors,
and either improves the existing design or choose a different concept
which will be more effective.
According to the User centric, its new service for package design
evaluation provides information on four different dimensions.
• Noticeability: How easily a product can be noticed in a field of
other products?
• Visual engagement: Once noticed, how much more attention would
the product require?
• Which areas of the package draw the most attention? Which areas
are neglected?
• Visual appeal: How does the customer react to the package design?
• Self reported susceptibility to purchase: According to customers,
how often would they make a product purchase decision based on
packaging?
5.7 Conjoint Analysis

It is a statistical technique used in marketing research to determine
how people value different features that make up an individual
product or service.
Conjoint analysis is a popular marketing research technique that

marketers use to determine what features a new product should have
and how it should be priced. Conjoint analysis has become a popular
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method, since it is less expensive and more flexible to address these

issues than concept testing.
The objective of the conjoint analysis is to determine - What

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

relative importance that they place on the product attribute. For
example if asked, which attributes are the most important ones, the
response may be such that all are important. Furthermore, individual
attributes in isolation are perceived differently than in combinations
found in the product. It is not possible for a survey-respondent to list
all the attributes and try and combine them. If the respondent is
presented with different combination of attributes during the survey,
then it may be easier for respondent to visualize and select the
preferred combination. How ever such survey is not practically
possible, as the attributes present in large numbers so will be a very
long list of combinations.
Conjoint analysis is an answer to such complex situation. Conjoint

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

combinations of product attributes in a decreasing order of
preference. Once the ranking is obtained, a computer is used to find
the utilities of different values of each attribute that would result in
the respondent’s order of preference. This method helps a survey in a
particular direction and need not have to consider all the possible
combinations of attributes. The utilities can be determined using a
subset of possible attribute combinations. From these results, one can
predict the desirability of a combination.
Steps in developing conjoint analysis

1. Choose the product attributes, i.e., appearance, size, price, etc.
2. Choose the value for each attribute. For example, attribute size
may have values of 10”, 12”, 15”, etc. 
One needs to be selective in spectrum of values, as more number
of values, lengthier will be the process.
3. Define the products as a combination of the attribute options. The
set of combinations of attributes that will be used will be a subset
of the possible universal products.
4. Choose the form in which the combinations are to be presented to
the respondents. Options may include: verbal presentation,
description by text or pictorial presentation.
5. Decide how the responses will be aggregated as there are three
possible choices.
(i) Individual response.
(ii) Pool of responses into a single utility function
(iii) Define segments of respondents who have similar
preferences.
Select the technique to be used for analysis purpose

The data is processed by statistical software written specifically for
conjoint analysis.
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Conjoint analysis is used basically to evaluate the consumer

preferences. If products are composed of attributes, conjoint analysis
determines which combination of attribute levels are most preferred
by consumers. In this consumers indicate their preferences by ranking
a number of different combinations of attribute levels.
Conjoint analysis assumes that consumers make purchases by

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

between the various possible attribute combinations available. In
conjoint analysis, consumer preferences are dependent variables and
product attributes are independent variables.
Following questions can be answered by using conjoint analysis.

• How important is each product attribute to the consumer?
• Which existing product do the consumers prefer?
• Which product attribute combination is the most preferred one?
• How good will my product do in the present market?
5.8 Correspondence analysis

Market research involves categorical data frequently. Correspondence
analysis characterizes the associations between the levels of two or
more categorical variables by performing weighted principal
component analysis of a contingency table. The result of a
correspondence analysis is a two dimensional graphic representation
of the association between the rows and columns of the table. The plot
represents a point for each row and column of the table. Rows with
similar patterns of counts produce points that are close together.
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Similarly, columns with similar patterns of counts produce points that

are close together.
Simple correspondence analysis analyzes a contingency table made
up of one or more variables from row and column
Following questions can be answered using correspondence analysis:

• Who are my customers?
• Who else can be my customer?
• What new products should I create?
• Who should be targeted by using new products?
5.9 Discrete Choice Modeling

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

• Which combination of attributes is most likely to be chosen by the
consumers?
• Which combination of attributes is least likely to be chosen by the
consumers?
• What is the probability of my product being chosen by the
consumer?
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5.10 Multidimensional scaling

Multidimensional scaling (MDS) analysis takes consumer judgments
of similarity of pairs of products and produces a map of the perceived
relationship among the products. Each consumer evaluates the
similarity of each pair of products. MDS determines the relative
similarity perceived by consumers among all products. The results
enable researcher to identify the products which consumer sees as
similar.
Following are some questions that can be answered by MDS.

• Which products do consumers see as similar to my products?
• Which products do consumers see as different products than my
products?
Multidimensional scaling will give you the ability to view different

aspects of your products and compare the same to your competitor
product. The goal of multidimensional scaling aids to detect
meaningful underlying dimensions that allow the researcher to
explain observed similarities or dissimilarities between investigated
object.
Multidimensional scaling is a set of related statistical techniques often

used in information visualization for exploring the similarities or
dissimilarities in a given data. MDS is special algorithms which starts
with a matrix of item to item similarities and then assign the location
to each item in Ndimensional space, where N is specified. For
sufficiently small N, the resulting locations may be displayed in a
graph or 3D.
Multidimensional scaling (MDS) can be considered to be an

alternative to factor analysis. In general the goal of the analysis is to
detect meaningful underlying dimensions that allow the researcher to
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explain observed similarities between the objects are expressed in the

correlation matrix. With MDS, one may analyze any kind of
similarity or dissimilarity matrix in addition to correlation matrices.
MDS can be said to be a data reduction technique. Its basic objective is

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

multidimensional space such that their relative positions in the space
show the degree of perceived proximity or similarity amongst them.
Importance of MDS
1. MDS helps in the identification of attributes on the basis of which
evaluates the product.
2. MDS enables the positioning of different products or brands on
the basis of their attributes.
3. MDS helps to generate a perceptual map, indicating the location of
the brands on the basis of attributes.
Using MDS technique objects or individuals can be scaled with

minimum information. This type of scaling provides a useful
methodology for portraying subjective judgments of various kinds.
This type of scaling is mostly useful, when all the variables in the
study are to be analyzed simultaneously, and when all such variables
are independent. MDS technique is based on the assumption that
people perceive a set of objects as being more or less similar to one
another on a number of dimensions instead of one. The inter
relationship among the variables in the set can be represented by
geometrical techniques using MDS.
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MDS technique enables the researcher to study the perceptual

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

technique is not very widely used though it may have several
advantages. Many methods under MDS are laborious for data
collection and analysis. This technique is best suitable for the use in
behavourial sciences.
5.11 Multidimensional preference analysis

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

MDPREF.
• Who are my customers?
• Who else should be my customer?
• Which new products should I create?
5.12 Pricing Research

Pricing research is one of the very critical research areas of marketing
research.
There are four main approaches in this domain.

• Gabor-Granger technique.
• Van Westendorp technique.
• Brand price trade-off.
• Conjoint analysis.
Selection of the right technique depends on the problem you are

trying to solve.
Gabor-Granger (Likelihood of purchase pricing): Gabor-Granger

pricing research method is named after the economist who invented
this method in the year 1960. In this method customers are asked
through survey, if they would buy a product at a particular price. The
price is changed and again respondents are asked specifically whether
they can buy or not. From the responses derived the optimum price is
judged and worked out for each individual. By taking a sample of
customers, we can workout what levels of demand would be
expected at each price points across the market as a whole. Using this
estimate of demand, the price elasticity (expected price) can be
calculated and so the optimum price in market can be established.
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The revenue optimum can be different from the profitability

optimum.
Gabor-Granger output:
Optimum Price
!
A weakness of the Gabor- Granger model is that customers may
understate the price they will pay (Sometimes they may overstate).
Gabor-Granger is only used when considering one product in
isolation, where in real life they would be facing multiple choice of
products.
Van Westendorp: This is a more sophisticated variation of Gabor-

Granger model. This model uses the rates each price on a scale from
too cheap to too expensive. The resultant price space determines the
options and helps to decide price tactics. This technique is mostly
used for price positioning study than the price estimation study.
Pricing and conjoint analysis: This technique is most popularly used

for pricing. This is based on the conjoint analysis and considered
more reliable than any other technique. Conjoint is excellent in
understanding how the choices are made and consequently the
importance of price. Conjoint analysis is more technical and advanced
form of research technique and requires a high degree of design skills.
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It is of advantage to the researcher if the research for pricing is

conducted as a part of conjoint study research for product and service
features.
In conjoint analysis customers trade-off price against other product

features. By observing at how customers make decisions, economic
impact of price changes can be assessed as can be balanced - value
positions for price positioning.
5.13 Advertising Research

Any research designed to understand, test and analyse an
advertisement and ad appeal is known as advertising research
In this research data collection methodologies used are as below:

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

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

advertising.
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Types of advertising research: Advertising research can be classified

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

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

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

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

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

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

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

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

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

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

(a) An open coupon with standard premium.
(b) A hidden offer
(c) Split-run technique
An open coupon offer is generally an offer of a free sample product

either free or along with some other product of the firm. This method
is considered to be more accurate measure of the selling power of the
advertisement than unrelated premium.
(C) Local area test: This is a latest technique of testing the

effectiveness of different advertisements in a group of local market
employing different advertisement themes through their effects on
sales or through the ability of advertisements to communicate the
message effectively under normal working condition.
Different advertisements in different markets are collected which are

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

local area test; only thing is they are conducted on a smaller scale.
The methods employed are:

(a) This method is supposed to make use of display materials and
sign boards at a point of sale. Different advertisements
containing different themes are displayed indifferent groups or
stores. The effectiveness of each advertisement then can be
measured by the resulting sales. 
(b) Another method is making an attempt to sell the product from

door to door conveying different messages to the consumers.
The percentage of the successful sales may be on the basis for
measuring the value for each theme. 
(c) Specific method - under this method handbills with coupons are
distributed for offering cash discounts to the consumers. Each
handbill contains different advertisements for the product. The
redemption of the coupons may be the indication of sales
effectiveness of different advertisements.
Post-testing
Post-testing studies provide either periodical or continuous
monitoring of the market, pertaining to brand’s performance which
includes brand awareness, brand preference, product usage and
attitudes.
Some of the post-testing approaches simply track changes over a time,

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

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

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

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

tracked over time. With a longitudinal approach, It may be possible to
go beyond brand awareness, and to isolate the impact of a campaign
on specific behavioral and perceptual dimensions, and to isolate
campaign impact by medium.
Various methods employed under post-techniques:

(i) Inquiry/coupon response method: These two testing methods
are used to study the effects of advertising on the dealers and
consumers. Here, the advertisement contains an offer or an
invitation to the consumers and dealers and this is useful for
judging the effectiveness of the advertisement. 
(ii) Readership survey test: It is an attempt to find out what readers

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

estimate the contents of an advertisement which the
respondents have already seen. The respondents are asked to
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point out the contents of an advertisement which they might

have seen. Sometimes questions are also asked about the
headline, the text and the illustration given in the
advertisement. The purpose is to understand the degree of
impact of advertisement on the reader. 
(iv)Recall testing method: Recall tests are applied to measure the

effectiveness in terms of allocation, interest and impact of
advertisements after they have been launched. In here, the
respondents will be asked the specific questions in order to find
out the extent to which they remember about advertisement. 
(v) Sales test method: Effects of advertisements on the sales

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

television and in the press,
Techniques can be used as follows:

(i) Television: Advertisements can be tested in various ways. A
low cost test can be employed in the beginning which may
involve showing the animated movie to the target audience. An
animated film may have the obvious advantages of low sunk
cost, if at all it is decided to scrap the project or make alteration
in an advertisement. In a later stage, the same test can be carried
out with finished product, although the use of test on the
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finished product is expensive, however it is more realistic. In

both the cases, the advertisement is shown to the audience into
the theatre or so. Respondents are asked not to think about
whether the advertisement is good or bad, but what they
understand from the same, the type of characters displayed in
an ad, the association of the characters, features of the ad, etc.
This research is generally quantitative and also to judge
unanticipated reactions. 
(ii) Press: Advertisement can be tested by including the test

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

tested by laboratory methods such as eye-blink test or pupil
dilation method. However, translating the psychological
responses accurately is a complicated process.
5.14 Copy testing

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

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

very heavily to make an impact on minds, emotions, actions of the
audience favourable towards the product of the company.
Advertising, though very expensive, is vital for the business success.

The advertiser’s main motive for the audience is to see the product or
read information about the product so it may arouse the desire for the
product and action of buying the product is taken to fulfill the desire.
Copy testing is a tool involving procedure where the effectiveness of

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

of the advertising.
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It addresses following questions:

a. Will a proposed copy theme achieve the objectives of advertising?
b. Does this advertising campaign create desired interest levels and
product image?
c. Will the advertisement deliver the right message to the audience?
Copy testing is a very important part of the advertising management.

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

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

effectively an ad will perform based on the analysis of the feedback
gathered from the targeted audience.
Copy testing is used to ensure that advertisement will be well

received; no surprises will be surfaced after ad is released. Copy
testing reduces the chances of ineffective ad which will not be
contributing value to the brand or company image.
Copy testing is usually conducted as a large scale quantitative

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

helps to reduce controversial element around the predictive values of
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quantitative advertising research. It acts as a reliable support for the

ad campaign decision.
Copy testing research answers following questions:

a. What message are we really communicating?
b. Is any one offended by our advertisement?
c. Does our advertisement project the right image?
d. Are they stating the right things?
Features of a good copy testing system:

1. It provides the measurements which are relevant to the objectives
of the advertisement.
2. It provides multiple measurements - because single measurements
are generally inadequate to asses the performance of an
advertisement.
3. It is based on a model of human response to the communication -
the reception of a stimulus, the comprehension of the stimulus and
the response of the stimulus.
4. It provides the control to avoid biasing effects of the exposure
context.
5. It demonstrates the reliability and validity.
5.15 Readership Surveys

The main objective of this research is to provide advertisers,
advertising agencies, and publishers the relevant information for the
efficient use of the press and also provide a basis for the assessment of
other media like cinema, radio, television.
One such survey is the national readership survey (NRS), which

provides information to the media owners, advertisers, etc., about the
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assessment and efficient use of different media for advertising. It

gives more specific information on:
(i) Readership information of all daily newspapers.
(ii) The extent of TV viewership and radio listenership.
(iii)Degree of duplication within the publication and differences
between media.
(iv)The socioeconomic characteristic of the readers, viewers and
listeners.
Readership survey helps to collect data on certain product fields at a

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

following:
(i) Primary and secondary readership
(ii) Place of reading
(iii)Profile of readers
(iv)Extent of business travel and use of business surveys
Viewership survey (TRP SYSTEM): TRP SYSTEM was invented in

order to find out the viewership habits of the TV audience for
different programmes on TV channels. It indicates the popularity of
the TV programme.
TRP Stands for Television Rating Points:

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

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

agencies can select the programmes which are having higher
viewership to place their advertisement.
TRP Pannel Members: Adults from TV owning houses and adults
from non-TV owning houses who watch TV at least once a week.
The viewership surveys (using telephone systems): This includes the

telephonic interviews being conducted by tele caller researchers. The
data is entered in computer immediately and collated for fresh results.
This operation is performed in presence of supervisors on site. The
survey is designed to allow for entire sample and also to allow for
analysis of various subsets of the sample.
5.16 AD TRACKING
Ad tracking is also known as a post-testing or ad effectiveness
tracking in market research. This method monitors a brand’s
performance including brand and advertising awareness, product
trial and usage and attitudes about the brands and their competition.
Depending on the speed of the purchase cycle in the category,

tracking can be done continuously or it can be pulsed, with interviews
conducted in widely spaced waves (every three or six months).
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Interviews can either be conducted with separate or matched samples

of consumers.
Since the researcher has information on when the ads were launched,
the length of each advertising flight, the money spent, and when the
interviews were conducted, the results of ad tracking can provide
information on the effects of advertising.
Purpose of ad tracking: The very purpose of ad tracking is generally

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

investment(ROI) of advertising, and to refine advertising plans,
Sometimes, tracking data are used to provide inputs to marketing mix
models which marketing science statisticians build to estimate the
role of advertising, as compared to pricing distribution and other
market place variables on sales of the brand.
Today, most of the ad tracking studies is conducted via Internet. Some

ad tracking studies are conducted continuously and others are
conducted at significant points (Typically before the ad appearing and
then impact after the disappeared, again after sometime when ad is
running for a while).
Ad tracking typically uses two different approaches although both

have an objective of measuring the effectiveness of the ad. Typically
the respondent is either shown a brief portion of the commercial or
few memorable still images from the TV AD. Other media typically
cued using either branded or un branded visual of the ad.
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Respondents are asked following questions:

(i) Do you recognize this ad? (Measure of recognition)
(ii) Please write the name of the sponsor of this programme (Unaided
awareness measure)
The continuous tracking design analyses advertising awareness over

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

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

Viral marketing research is a subunit of marketing research which
measures and compares the ROI (Return on investment) of
advertising and communication strategies designed to exploit social
networks.
1. The selling effectiveness of specific communications
2. The viral marketing potential of those communications within
specific media (Internet video, texting, print ads, television).
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Viral marketing describes strategies that encourage individuals to

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

social networking potential (SNP). These co-efficients are integrated
with respondent level data measuring the selling effectiveness of
specific communications and the viral marketing potential of those
communications within specific media, For example: Internet video
testing, Television ads etc.
Examples of viral marketing research: A DVD player manufacturer is

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

Measurement of customer satisfaction is the common factor in all
marketing surveys and it is a one major components of marketing
research out of three.
Marketing research studies has three major components:

a. Concept testing
b. Market segmentation
c. Measurement of customer satisfaction.
Measurement of customer satisfaction is required to understand, how

well company’s products are accepted whether it meets the
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expectations of their customers or whether they exceed their

expectations.
Customer expectations are reflected from the various aspects of the

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

(both consumers and business markets).
Customer satisfaction measurement studies tracks the customer

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

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

activities mentioned below:
a. Retention of existing customers
b. Developing new customers
Customer satisfaction measures are very critical for any company

because customer satisfaction is a strong predictor of customer
retention, customer loyalty and opportunity of product repurchase.
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Satisfaction measures involve three important elements for evaluation

of the products or services:
a. Cognitive (thinking/evaluation)
b. Affective( emotional feelings/ like-dislike)
c. Behavourial (current/ future actions).
Customer satisfaction ultimately leads to customer loyalty and

product repurchases Satisfaction measurement questions typically
include:
a. Overall, how satisfied are you with a xyz product? – (An overall
satisfaction measure - emotional element).
b. Would you recommend xyz product to your family and friends?
(Measure of loyalty - affective)
c. How satisfied are you with the taste of xyz? (Attribute
satisfaction measure - affective and cognitive)
d. Do you intend to repurchase xyz? (Behavioural measure)
Satisfaction can influence the post purchase actions such as: word of
mouth communications and repeat purchases.
In marketing management customer satisfaction is considered as

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

and service attributes, benefits, features, and it is moderated by
customer expectations regarding the products or service.
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!
Product Product or Product or
or Service Service Service
Attribute 1 Attribute 2 Attribute 3
Customer Customer
Needs Fulfilled Expectations
Quality, Perceived
Quality,
Reliability, Quality Reliability,
Value, Value,
Function, Function,
Performance Performance
Customer
Satisfaction
!!!!!!!!!!!!Post Purchase Behaviors
Customer Complaints Repurchase

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

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

dissatisfaction is almost close to deep regret or disappointment while
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satisfaction is linked to glad and joyous faces. Many consumers

immediately react on the choice made, “good choice” OR “I am glad
that I bought this product” often, behavioural measures reflect
consumer’s experience and individuals associated with the product
(customer representative) and the intention to repeat that experience.
Leonard Berry in the year 2002 defined ten different dimensions of

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

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

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

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

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

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

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

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

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

product category, For example, mobile phones are continually
evolved. Mobile service providers, in an effort to deal with the desire
to switch to a new technology phones, market rate plans with high
cancellation penalties. The availability of low profile phones with e
mail, camera MP3 and blue tooth technology changes technology
expectations as well as the static and dynamic performance
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expectations of the product. These highly involving products enhance

perceptions of status, ego, and self image and can even invoke fear
when the product is not available.
Interpersonal expectations: This involves the relationship between

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

and ability to solve the problem, ability to communicate giving time
to problems, courtesy, enthusiasm, patience, helpfulness
understanding about the situation, communication skills, customer
perceptions, professionalism of conduct including image and
appearance.
For each of the expectations mentioned above when fulfilled, results

into a customer satisfaction. The perceived quality and value are
always critical factors and they directly influence the decision of
repurchase and loyalty.
Customer satisfaction measurement can help:

• Measure customer approval levels.
• Improves customer retentions
• Gauge interest in new products and service offerings
• Pin point areas of improvement
A consumer satisfaction survey:

• Creates a satisfaction surveys that are user-friendly and action-
oriented.
• Develops relevant and meaningful survey questions based on core
issues.
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• Produces efficient indicators

• Helps in choosing the most appropriate scales for research
• Prioritizes targets
• Identifies and fixes end-user problems
5.19 Mystery shopping

Mystery shopping is a tool used by the marketing research companies
to measure the quality of the retail service or gather specific
information about specific products or service. Mystery shoppers
pose as normal customers, perform a normal task of purchasing
product, asking questions, registering complaints and provide a
detailed report of their experiences.
Origin of mystery is somewhere in 1940, as a way to measure the

company employees integrity. Mystery shopping uses various tools
such as simple questionnaire, audio recording, video recording, etc.,
for the assessments.
Many mystery shopping companies are operating online; they are

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

mystery shopping jointly decides for a survey model and agrees upon
the information needed to be collected and formats of presentations.
These are further drawn into the survey instruments and assignments
that are allocated to shoppers registered with the mystery shopping
company in question.
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Following are some of the common details and information points for
mystery shoppers.
• The date and time of the visit.
• Name of the store and each side visited.
• Number of employees in the stores on entering.
• How long it takes before mystery shopper is greeted.
• Names of the employees (as much as possible).
• How was the greeting! Friendly/unfriendly.
• Questions asked by the shopper to find suitable product.
• The types of the products shown.
• How salesmen are attempting to close sale.
• Whether the employee offer mystery shopper to come to the
stores.
• Cleanliness of the store and presentation of merchandise.
• Speed of service.
• Compliance with company standards relating to company service,
store appearance, etc.
Mystery shoppers are often given instruction to make a transaction

atypical type to make the test of knowledge and service skills of the
employees more stringent or a specific to a particular service
issue( creating a scene on purpose).
2. Consumer satisfaction measurement Research: This area focuses

on domestic surveys., home and store surveys, telephonic
conservations, mail-in questionnaire. Satisfaction level with respect to
product or service is assessed through this research. Concept testing is
an endeavor used to identify early potentially successful products.
Concept testing is carried out before the new product launch hence, it
gives a fair idea about consumer acceptance, costs involved in
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product development and marketing programmes to the

management.
Concept testing addresses several issues. It helps to finalize the

optimum market that the product could be positioned in. It confirms
the suitability of the product concept. Concept testing also lays a
foundation for benchmarking on which future activity can be carried
out. This effort helps in introducing new ideas into the concepts. It
forecasts the demand and analysis whether the product could be
launched or not.
Concept testing also importantly provides guidance and direction, to

selectively identify the channels most suited to communicate new
products to the market. It guides on key benefits which customers
perceive, packaging, advertising, sales approach, product
information, distribution and pricing.
The product concept testing procedure can be done by three different

categories:
1. Concept evaluation, where concept representing products are
presented to the consumer in a visual or verbal form and then
the using quantitative techniques the interests, degree of
purchase intent and likelihood of trial can be evaluated.
2. Positioning of a concept product with the product of the same
functional class where attributes of both the products can be
evaluated together.
3. Product v/s concept test: Wherein consumers first evaluate the
concept and then the corresponding product and then the
results are compared based on the first- hand feedback.
3. Concept testing: This activity is done at a stage when product is

still at an idea level; Product is discussed considering much
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geographical location and with various sets of people to get their

opinions.
4. Positioning research: This research helps a company to understand

how a particular product is compared in the market with the other
similar products in terms of features, benefits, price availability.
5. Brand name surveys: This particular research determines the

recognition of the product in market by its name and how the brand
name in particularly helping to catch the market. This is done for the
purpose of identifying new brand names. Brand name research is
vital when naming a business or choosing a product name.
Researcher needs to understand following important points on which
the brand name tasting is done.
(a) Ease to memorize - This the most important point. This

basically investigates the target market recall the new product
name or service name easily.
(b) Emotional bonding power - While developing the product
name in what best way researcher can connect the target
audience to the brand. The strength of this emotional bonding is
emotional bonding power.
(c) Easy to pronounce - Brand name testing research is reveals that
if the target market is unable to pronounce the brand a name
properly then they wont ask for the product. Therefore the
product name should be easy for pronunciation for the target
audience.
(d) Fitment o the concept - The propose brand name must go with
the product features and company. This research focuses on
fitment of the brand in the market.
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6. Mystery shopping: An employee of a company not known to the

salesperson of the same company indicates that they want to shop for
the same product that company is selling. Entire sales process and
experience is recorded for the evaluation purpose for various reasons
like highlighting benefits, service quality, etc. Many times the same
activity is also performed for the competitor product.
7. Mall or super market service audit: This activity is to determine

the quality and level of service provided by the mall or supermarket.
8. Demand estimation: This popular activity and very significant for

marketing department and also from the company point of view. This
is carried out with a focus of estimating the demand of the product
and the generic of the product.
For e.g. Colgate might find out the demand for fluoride toothpaste
and as well as total market demand for toothpaste market.
9. Buyer Motivations research: This particular research helps to

determine what exactly motivates buyers to make a buy decision.
What is the decision making process buyers follow?
10. Distribution channel audits: This particular research is used to

assess distributors and retailers attitude towards a product, brand or a
company. Specifically, how these intermediaries treating the company
product with respect to the competitors? And what is the level of
confidence they have in company product?
11. Advertisement research: This particular research is used for copy

testing and track the effectiveness of the advertisement. It is measured
by the advertisements ability to get noticed, message transfer and
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contribution to increase the brand value. Most importantly, is it

motivating consumer to buy the product or the service.
12. Ad tracking: This a continuous activity especially with MNCs, to

monitor the performance of the brands, brand preference, and
product usage patterns etc.
13. Commercial eye tracking: This research is analytical type which

assesses the advertisement with respect to advertisement, packaging,
website and perception of the consumer.
14. Brand equity research: This marketing research particularly

highlights the perception of the consumer towards the company
brand. How consumers view a particular brand? What do they
associate with the brand? What are the key traits which describe the
brand promises?
Trademarks and brand names are more than the signs and symbols.
They communicate lot of information. Customers often specify the
product by its brand name while purchasing it. It is of significance to
the manufactures for not only promoting sales but also maintain
interest and loyalty of the customer. The brand equity research is
done to collect consumers views on brands like brand preference,
brand loyalty, brand awareness and brand recognition. A good brand
image is net outcome of these four factors.
(a) Brand recognition - This part of research helps in finding out

how far consumers are familiar to the companies, brands. If
consumers could recognize the product the basis of size, shape,
taste, ets..
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(b) Brand preference - This particular research helps to find out

consumer’s specific preferences such as attitude, likes and
dislikes. This information is useful to create a brand image.
(c) Brand loyalty - Loyalty means consumer in particular when
they need product they only think about one particular brand
and no other product. This particular buying behavior is
observed for the products which remain in the market
consistently for long period. Brand loyalty research helps such
brands to estimate loyalty factor and also helps to make
decision in marketing strategies accordingly.
(d) Brand awareness - This particular research is about judging the
effectiveness of marketing efforts taken by the company. In
totality Brand equity research is the total outcome the research
result comprising of the four factors which we discussed. Brand
equity research has a specific objective of identifying the value
addition areas to increase the strength of the brands. Brand
equity research also correlates with the growth in stock values,
sales, profits, price premium and employee satisfaction.
15. Internet research: This research is particularly internet based.

Basically deals with searching the customer opinions on the Internet,
chat forums, web pages, blogs, social websites.
16. Pricing research: This particular researcher is completely based on

price surveys with an objectives of finding out perception of the
consumer about the price, Value for the price, elasticity of the price,
competitors price, etc.
17. Viral marketing research: A very latest in marketing research. It

refers to the marketing research that is designed to estimate the
probability that a specific communication when passed on through
the social networking websites. This estimates the social networking
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potential (SNP), when combined with the selling to estimate the

return on investments (ROI) on a specific combination of messages
and media.
18. Copy testing: Advertisement research is done to see how well the
advertisement succeeds to attract the consumers a stimulating their
desire. The intended message about the product or an idea has been
received by them or not? Advertisement copy testing is done to
ensure its effectiveness.
19. Readership surveys: The main objective of this research is to

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

order to find out the viewership habits of the TV audience for
different programmes on TV channels. It indicates the popularity of
the TV programme.TRP Stands for Television Rating Points.
TRP survey is managed by Indian market research bureau in 9 major

cities like Mumbai, Kolkata, Delhi, Chennai, Bangaluru etc. The
programme rating of TRP is based upon percentage of panel members
who have viewed a particular TV programme. Generally 1TRP is
equivalent to1% of TV audience. With the help of TRP the ad agencies
can select the appropriate programme to place the suitable ad.
21. Viewership surveys: This includes the telephonic interviews being

conducted by tele caller researchers. The data is entered in computer
immediately and collated for fresh results.
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5.20 Summary
Marketing mix research: The research in marketing mix is very
useful in deciding where to place the, when to place and how to
place the product.
A frame work for the research design was developed by Nigel

Bradley in year 2004. This is very similar to 4Ps of marketing mix.
These framework discuses 4 stages of the design

(a) Purpose (b) Population (c) Procedure (d) Publication
Some of the major techniques are as mentioned below Marketing mix

research:
Research with respect to 4Ps:

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

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

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

the strength of a brand in the market, in the eyes of the consumers,
investors. Growth in the brand equity correlates to the growth in the
stock values, sales, profits, price premium, employee satisfaction etc.
The core measures relate to: Cognizance, Awareness, Usage and

Loyalty
The brand image research is important for the following reasons:
(a) Brand recognition: This activity is carried out to find out how well
consumers are familiar with the company’s branded product. If
consumers can identify the product on the basis of attributes like
taste, size, shape, etc., the product enjoys good image premium
with the consumers.
(b) Brand preference: Brand image survey helps in finding out the
consumer preferences likes and dislikes, attitudes etc. This data is
very useful in understanding and creating a favourable image
about the brand.
(c) Brand Loyalty: Loyalty signifies the faithfulness of the consumer
to the product and shows the conviction on certain attributes of
the product which makes him/her buy repeatedly for a very long
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period. This study also suggests many ways to enhance the brand
loyalty, through advertising, promotions etc.
(d) Brand awareness: It is necessary to find out how far advertising
and other techniques are useful in creating brand awareness about
a product. Brand image research is normally conducted by
collecting information on the brands of the company.
Brand Name Testing: Brand name research is significant when

naming a business or choosing the right product or service. Choosing
an appropriate name is balancing an art and science.
Impact factors associated with this are: Emotional bonding power,
Memorizing, Latent association, Fit to concept, Ability to pronounce,
Resonant.
Eye tracking: Eye tracking is a technique used to determine where a

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

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

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

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

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

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

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

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

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

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

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

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

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

marketing research which measures and compares the ROI (Return on
investment) of advertising and communication strategies designed to
exploit social networks.
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Customer satisfaction measurement studies tracks the customer

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

quantitative market surveys, telephonic surveys, mail surveys, online
surveys etc., such data collected, when consistently repeated over a
period of time, can provide trend information and alarming
situations. This is very useful to guide the new product development
process as well as product advertising and branding strategy
programmes.
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1. Presentment of the research report refers to _____________. 
(a) Publication 
(b) Design  
(c) Purpose
2. Following report is a documented report which informs firm

about investigation of the market activities _____________. 
(a) Sales analysis  
(b) Market analysis  
(c) Exploratory report
3. Customer satisfaction is a largely reflection of _____________. 

(a) Attitude  
(b) Pleasure  
(c) Expectation
4. TRP system is used in following survey _____________. 

(a) Readership survey  
(b) Eye tracking  
(c) Viewership survey
5. Copy testing is a study of _____________. 

(a) Pre-test of ad  
(b) Post-test ad  
(c) Test while ad is on
6. Readership Survey is an assessment for the following media

_____________. 
(a) Cinema  
(b) Television  
(c) Magazines
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7. Gabor-Granger technique is popularly used for following

_____________. 
(a) Ad effectiveness research  
(b) Pricing research  
(c) Brand name research

(a) Discuss the exploratory research method you will use to launch
new android economy model.
(b) Discuss any suitable example of Descriptive Research.
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
211
TYPES OF RESEARCH DESIGNS
Chapter 6 - Types of Research Designs
Objectives
After studying this chapter students will understand the significance

of research design and various types of research design. The first step
in conducting research is to examine the reasons why research is
undertaken. Determining a research objective sets the stage for the
rest of the research plan.
Structure:
6.1 Introduction to Research Design

6.2 Exploratory Research
6.3 Descriptive Design
6.4 Longitudinal Studies
6.5 Cross-sectional Analysis
6.6 Summary
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6.1 Introduction to Research Design

• Purpose of research
• Research design
• Types of research
The first step in conducting research is to examine the reasons while

the research is being undertaken. Determining the research purpose
sets the stage for the research plan with a stake in the outcome of the
research know the general philosophy of the project and also
establishes causes of the research.
Another aspect essential in the study of marketing research is

exploratory research and design. This particular chapter emphasizes
on selection of appropriate research design.
Marketing research serves as foundation of marketing and it is used

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

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

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

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

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

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

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

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

reviewing of available literature, available data, informal discussions
with consumers, employees, management, competitors through
interviews, focus groups and case studies.
The result of a exploratory research are usually not useful for making
decisions but they provide significant insight in given situation which
provide input in making decisions. The data collected and collated
through exploration may lead to suggestions of hypothesis for further
studies or an idea for a conceptual framework.
The exploratory research design being flexible, methods and

questions may change depending on what is found about the research
as it goes along. The results of the study will provide detailed
observations made by the researcher in an orderly manner.
Conclusions can be drawn from the data. Which could be a
hypothesis for further study or it could be a relationship between the
observations or it could be a proposed concept.
This is the purpose of the exploratory research.

Exploratory research is used in following situations;
• To define problems
• To establish research priorities
• To develop hypothesis
• To gain background information.
Sometimes exploratory research is also termed as formularize

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

(b) The experience survey
(c) Analysis of stimulating insight
(a) The study of literature and findings: This is most simple yet cost
effective method used for exploratory research for formulation of
research problem or developing hypothesis. Hypothesis which is
earlier stated can also be reviewed and evaluated on the basis of
exploratory research. The researcher should also apply concepts
or theories evolved from different research in the context of subject
under process.
(b) The experience survey: Experienced people in specific field can
provide valuable inputs in exploratory research. This contribution
holds a special attention as the opinion or the comment coming
from experienced personnel. For example, interviewing general
manager of a shopping mall can provide more accurate
information in less time and less cost.
(c) Analysis of stimulating insight: In this method sample selected
should be honest in providing insight stimulation. The researcher
should realize that this research is volatile and can possibly be
reformed with new information.
The exploratory research, thus, attempts to discover general

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

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

study. All though statistical validity and limitations are few concerns.
However, descriptive research is most significant scientific tool.
A focus of descriptive research is on providing accurate information.

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

speculative or tentative.
Descriptive designs generally results in description of the data.

Whether it is in the form of words, tables, charts and pictures and
whether the data analysis shows statistical relationship or is merely
descriptive and ‘what’ questions invariably lead to descriptive design.
Whatever method is chosen to collect the data, all descriptive designs

have one thing in common they must provide descriptions of the
variables in order to answer the questions.
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The basic difference between exploratory and descriptive research is

in their design itself. Exploratory research follows a less structured
and more flexible format compared to a descriptive research. This
approach works well when marketer have no understanding of the
subject and has no proper research direction. In case of descriptive
research marketer already have basic information and exploratory
research is already completed. To make important decision key
decision makers require accurate data in a structured manner to make
a decision for the company.
There are two types of descriptive research.

1. Longitudinal
2. Cross-sectional Studies.
6.4 Longitudinal Studies

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

sample of respondents interviewed from time to time.
Each family included in this panels, records its purchases from time to
time and number of product variants. Such a data is used to study
changes in buying behavior.
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Advantages
1. It enables the researcher to understand and make a detailed
analysis of a buying behavior for the individuals who have
changed/who have not changed brands. This detailed study helps
to identify a particular segment of population on which
promotional efforts should be focused.
2. It helps in obtaining a more comprehensive data from the
respondents from a panel who have accepted to provide the data
from time to time.
3. This data is more reliable compared to data collected from
surveys.
4. Cost of data collection through panel is much lower compared to
personal interviews.
Longitudinal study is based on observations and conducted over

period of time. Sometimes lasting for many years.
The benefit of longitudinal study is that researcher is able to detect

developments or changes in the characteristics of the target
population at both the group and individual level. As a result, they
can establish sequence of events or trends.
6.5 Cross-sectional studies

Cross-sectional studies is a research method which involves
observations from subset of a population or items at the same time. In
which deferent groups are compared with respect to independent
variables such as IQ and memory. The fundamental deference
between cross-sectional and longitudinal studies is that cross-
sectional studies takes place at single point in time and that a
longitudinal studies involves Studies taken over period of time. Both
are observational studies. Cross-sectional study sample the
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population to make a measurement at a specific time. A special type

of cross-section analysis which tracks individuals experiencing the
same event within the same time or with-in the same interval of time.
This analysis is known as a cohort analysis. Cohort analysis are useful
tools for forecasting long-term product demand.
Advantages
1. Cross-sectional studies measures units from a sample of
population at one point at a time.
2. Online survey is used to collect data for cross-sectional surveys at
a faster speed.
3. Sample surveys are nothing but a cross-sectional studies whose
samples are drawn as representative of specific populations.
Cross-sectional study is only based on observations and researcher

records the information without manipulation. The most important
feature of cross section study is it can be compared with different
population groups at a single point in time. The benefit of cross
section study design is that it allows researcher to compare many
different variable at the same time.
Cross-sectional study may not provide a accurate information about

cause and effect relationship. This is because such study gives a snap
shot of single moment in time. However, things may change after a
snapshot.
6.6 Summary
The first step in conducting research is to examine the reasons while
the research is being undertaken. Determining the research purpose
sets the stage for the research plan with a stake in the outcome of the
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research know the general philosophy of the project and also

establishes causes of the research.
Marketing research serves as foundation of marketing and it is used

to support all marketing decisions. Marketers use research to support
decisions in 5 important ways.
1. Explanation
2. Prediction
3. Monitoring
4. Discovery
5. Testing of hypothesis.
The purpose of any research has to fall in to one of these categories.
Research Design: Includes: - Purpose of research, Research design,

Types of research.
Types of research: Generally the research approach can be classified in

to one of the three categories of the research approach.
1. Exploratory Research
2. Descriptive Research
3. Experimental Research
Exploratory research: This research has primary objective of

developing insight in to the problem. It is the most commonly
unstructured or informal research being undertaken to gain
background information about general nature of the research
problems. Exploratory research is usually conducted when the
researcher does not know much about the problem or needs
additional information or needs more recent information.
223
Descriptive research is a scientific method which involves observing

and describing the behavior of the subject without influencing. This
research is commonly used to identify the cause of something that is
happening. For example, this research could be used as to what age,
group of people are buying a particular brand of chocolates, to
discover how many competitors a company has in a specific region.
224

1. The first step in marketing research is to define the _____________.
(a) Purpose of Research  
(b) Design of Research  
(c) Description of Research
2. A Marketer may suspect a difference in purchasing habits of one

customer from other then he will use following theory to prove the
difference _____________. 
(a) Hypothesis testing  
(b) Discovery technique  
(c) Explanation theory
3. Which of the following document is known as a blueprint used to

guide a research study towards the objectives? 
(a) Planning report  
(b) Itenary of research programme  
(c) Research Design
4. Exploratory Research has a primary objective to develop

_____________ into the problem. 
(a) Insight  
(b) Future vision  
(c) Background information
5. Following Research is carried out find out about a cause of

something that is happening _____________. 
(a) Exploratory Research  
(b) Descriptive Research  
(c) Longitudinal Studies
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6. Cohort analysis is a following type of analysis _____________. 

(a) Conjoint analysis  
(b) Cross-sectional analysis  
(c) Longitudinal analysis
7. Which of the following analysis is known as a time series analysis

that makes the repeated measurements of the same individual? 
(a) Longitudinal analysis  
(b) Cohort analysis  
(c) Conjoint analysis

(a) Prepare a research design to evaluate a service quality of a travel
company. 
(b) Explain each type of research with suitable example.

(i) Exploratory research
(ii) Experimental research
(iii)Descriptive research
226
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
227
QUALITATIVE AND QUANTITATIVE RESEARCH TECHNIQUES
Chapter 7 - Qualitative and Quantitative Research

Techniques
Objectives
After studying this chapter student will be able to understand,

significance of quantitative and qualitative research. A quantitative
research deals in numbers, logic and objectives, whereas a qualitative
research deals in words, images and subjective information.
Qualitative research involves using techniques that attempt to gain an
understanding of the existing attitudes and opinions. Such research
studies do not measure the emotions or opinions, but they may give
an indication of dominant feeling. In quantitative research, there is an
emphasis on understanding rather than the measurement. Such
research centers on words, narratives images and concepts rather than
numerical values.
Structure:
7.1 Introduction
7.2 Quantitative Research Methods
7.3 Qualitative Research Methods
7.4 Summary
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7.1 Introduction
The data collected following a structure and well controlled scientific
research design can yield numerical values that can be analyzed using
statistical methods. Such a analysis proves very relevant and results
drawn from small number of collection points may be used for
determining characteristics of a larger group. Quantitative research
basically deals in numbers, logics and objectives.
Qualitative research deals in words, images and subjects. Qualitative

research involves techniques that attempt to gain a understanding of
the existence of attitudes and opinions. Such research study do not
measure the amount of emotions and opinions but they may give an
indication of dominant feelings. There is an emphasis on
understanding rather than feelings. Qualitative research methods are
less structured and more intensive than standardized questioner-
based interviews. Hence, the resulting data has more depth and
greater richness of the context. Qualitative research methods were
developed to enable researcher to study the social and cultural
phenomena.
7.2 Quantitative Research Methods

The data required in quantitative research is obtained through various
survey methods. This data is collected through respondents through
sample questionnaire and obtain through personal or telephonic
interview or through e-mails. Surveys are carried by trained
investigators working on detailed instructions and strictly adhering to
the predesigned questionnaire and without being manipulated.
Surveys one of the most preferred methods in collecting primary data

in quantitative research.
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The core advantage of the survey method is an investigator can obtain

substantial valuable information from single respondent. Successful
implementation of survey depends on the effective judgment of the
type of survey method is personal (interview or mail questionnaire)
and the interaction between interviewer and the respondents. Surveys
are usually designed to collect variety of information on various
topics. Researcher must have sufficient knowledge of the subject of
research and must be skilled enough to extract information from the
respondent.
Three popular methods of conducting surveys

• Personal interview
• Telephonic interview
• Survey through mail
(A) Personal Interview

Personal interviews are usually classified based on the types of the
respondents and means of contacting them. In the personal interview
the interviewer and the respondents are suppose to interact with each
other. The interview environment is selected based on the type of the
data being sought.
(a) Face to face interview

This type of survey method has been considered as best method,
because various distinct advantages seen in the face to face interaction
between interviewer and the respondent. Following are the distinct
advantages.
• Instant response of the respondent

• Doubts or queries can be clarified on the spot
• Product concept and other stimulating techniques can be
effectively used
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• Modification of the questionnaire depending on the respondent

could be possible
• Smooth interview and flow of valuable information can be
achieved with in familiar and comfortable environment
(b) Shopping center interviews

These interviews are also called as mall intercept service. In this
method, interviewers are positioned at selected locations including
entrances. They randomly approach respondents encourages them in
participation and interview, them. The advantages of this survey are.
• Ample number of respondents are available at shopping centers

with various age mixes
• Sample representatives in shopping mall nearly match population
under study
• Since interviewers don’t need to travel around, the company
saves cost of travel and utilizes time as well
• Interviewers require less training for these surveys
(c) Self administered interviews

Self administered interviews are completely based on observations. In
this method investigators record their observations with their gut
feeling. In this method investigators are not having one to one
communication or one to one interaction. Investigator records the
information purely based on reactions. For example, Indian airlines
are using these techniques about their surveys. Many times a small
questionnaire is designed for consolidating feedbacks is provided to
the airlines passengers. No questions asked or answered and
feedback forms are collected for the investigation purpose.
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The advantage of this method is reduction in the cost of interview. But

the disadvantage is that in case of doubt or query the respondents are
not available to satisfy the query.
(d) Purchase intercepts techniques

This is a combination of in-store observation, in-store interview to
access shopping behavior of the consumers. The investigator casually
intercept, the costumer and makes a quick round of interview asking
a series of short questions for research purpose.
Advantages are
• It offers the fresh data since buyer don’t have to recall
• Investigator doesn’t need to validate, since purchases are made in
front of his eyes
Disadvantages are
• The investigator may have a difficulty in getting across consumer
for survey while he or she is busy making a purchase
• This technique only focuses on purchaser who purchases
however, if a purchaser is influenced by somebody else making a
purchase that information remains questionable. For example, if a
buyer under survey is buying a particular shampoo which is not
really his or her choice but buying for somebody else for
convenience then this information becomes invalid.
It is an investigators job to obtain most genuine information from the

buyer to validate the survey.
(e) Omnibus surveys

These are consolidated surveys carried out by research organizations
for variety of clients. In these surveys from one particular client many
questionnaires are answered in a single appointment. To conduct such
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multilevel interview investigator must have a large experience in

extracting information or applying the recorded information for
different assignments. The questionnaire is designed with a series of
questions on different topics for various clients but from the same
client.
Advantages of this method are

• Total cost per call is divided
• All the steps can be standardized since single point contact for
information
• Many times a receptive respondents helps in providing additional
information useful for other surveys
Advantages and limitations of personal interviews

(a) Personal interviews are preferred when a large amount of
information is required and the nature of questions to be
answered are more complex
(b) Personal interview questionnaire offers a higher degree of
flexibility and also it works on interest created in the respondent.
It is a job of a investigator to arouse a interest of the respondent to
gain more support and valuable information.
(c) In personal interviews more open-ended questions are asked to
obtain useful information.
Limitations
(a) Personal interviews are time consuming and seak prior
appointments for scheduled visits.
(b) Getting right type of the people in the right kind of mood and
getting full co-operation in an interview is a challenging task.
(c) Investigators need to find different ways and means to reach
respondents.
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Confirming different schedules of appointments and managing the

interview within the allotted time is a real task for a investigator.
(B) Telephonic interview

This type of survey requires exceptionally good quality and
communication skill over telephone. This survey is usually carried
out with respondents either being at their offices or houses. The
success of this type of survey depends upon ability of the interviewer.
• Identify and locate useful executive for survey

• Ensures that the individual agrees for telephonic interview and
provides necessary information
• Interviewer should have necessary skills of recording while
interview over the phone is in progress
This method requires a caution while using the data and cross
referencing the data is certainly advisable. A large quantum of
marketing problems could be solved in a faster manner using
telephonic interview technique this is also accepted as a most popular
survey method especially focusing on the cost and no response
parameters. In case of a sample unvailability alternative sample can
be arranged quickly. Typical steps in a telephonic interviews are as
follows.
(a) Selection of a respondent and his contact number

(b) Make a telephone call to the respondent and schedule a
interview call with a respondent.
(c) Try to gain a rapport with target respondent
(d) Make a call to the respondent and get desired information.
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Advantages and limitations of telephonic interviews

Advantages
(a) Most interviews are scheduled and conducted over telephone,
therefore, no time is lost in locating the respondent.
(b) This is a very cost effective method since cost and travelling time
are almost not there resulting in a cost saving.
(c) It may be possible to re-schedule the appointment in case of some
urgencies where by cost per call is nominal. Wide areas can be
covered by using telephone calls. Long distant respondents can be
reached at a minimum cost per call.
(d) Since the telephonic interviews are conducted in absence of face to
face, of it permits the respondents ease and not under any
pressure.
Limitations
(a) These interviews are not not face to face interactions, therefore,
investigator has to completely rely on verbal clues to judge the
reactions and understanding of respondents.
(b) As the interaction with the respondent is not face to face therefore,
product concept or display of sample is not possible which results
in complexity of understanding.
(c) In case of telephonic interview with senior manager or busy
people may attract lot of interruptions in the ongoing calls during
interview and also have time constraint in execution.
(d) There are chances of sample bias in case some samples are not
reachable or they provide inadequate information.
(C) Mail surveys

In the mail survey method questionnaires are mailed to the potential
participants who are expected to complete and return the same by
prepaid envelopes. The data of potential participants are normally
taken from the available database and they are identified as a sample
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from the targeted population. In the mail surveys, investigator has to

keep in mind that very few respondents are prompt in sending the
information and they need to be followed up for sending information.
Sometimes an incentive is required to be offered for obtaining
information. Non response is a very common problem of mail
surveys and thus, investigators are required to anticipate low
response rate and work to solve the problem of obtaining the data.
Advantages and disadvantages of mail surveys

Advantages
(a) The most cost effective method, the only cost needed is of
postage.
(b) More in-depth information can be achieved since the respondent is
not under pressure to respond quickly and respondent gets
enough time to answer questions.
(c) This method is appropriate in seeking answers to the sensitive
issues like living together, disorders, complex relation problems.
However, investigator has to ensure confidentiality of the data
made available.
Limitations
(a) In the absence of the actual interview some questions like who has
really answered the questions and actually by what time the
respondent will send duly filled questionnaire
(b) Mail surveys do not provide clarifications and many times
confusing questions remain unanswered.
(c) There is no control over response time and response rate.
(d) Mail surveys are only possible if respondent complete address is
available and only respondents from available mailing list can be
contacted.
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(D) Survey research through Internet technology

The advent of Internet technologies aided researcher in interviewing
respondents for the purpose of survey research in speedy and cost
effective manner. Online respondent survey or e-mail surveys are the
most common methods under these survey research methods.
Computer-assisted telephonic interviewing (CATI) is developed for
survey purpose. By using this technique sequence of questions are
offered through computer. In this the interviewer has to focus on
recording answers and establishing rapport with the respondents.
E-mail surveys
Today accessing computer and Internet is almost a necessity of
working people, researchers. Not long before started using this
facility developed e-mail service. This method facilitates researcher to
e-mail the questionnaire directly to respondent and obtain their
responses in a quicker manner without having face to face interaction.
Advantages
Extremely quicker method all though not face to face, visuals of the
products can be shared.
• Judgments and reactions can be obtained

• Ample data can be obtained
Limitations
• More complex for respondents who are not computer literate.
• Must have access to the computer to respond
• Data maintained in electronic form only. If lost then contacting
again becomes difficult.
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(E) Retail audits

This is a contemporary method for research. With the help of retail
audit movement of the product and distribution patterns over a retail
outlets in a specific region can be analyzed. The measurement of
product stock movement can be obtained from inventory and sales
register. Thereafter adopting a sampling method over estimated
population, conclusions can be derived.
7.3 Qualitative research methods

Qualitative research methods are less structured and more intensive
than standard questionnaire based interviews. They have more
flexible relationship with the respondents, hence the resultant data
has more depth and greater richness of the context. Qualitative data
sources include observation, interviews, documents, texts and
researcher’s impressions, reactions and interpretations. Qualitative
research generally carried out using two different methods.
1. Based on questioning
2. Based on observations
1. Based on questioning
The qualitative research based on questioning is normally undertaken
by experienced professional investigators. As this involves more cost
and special skills of probing to obtain valuable information. In this
technique following data collection techniques are used:
(A)In-depth interviews
(B) Focus group discussions
(C) Projective techniques
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(A) In-depth interviews

In-depth interviews are one to one conversations without using
questionnaire. The structure of the interview is such that it aims on
subject matter of the research. In-depth interviews are flexible and can
be shaped up depending upon the situation at that time. The
investigator and the respondent share different opinions, perceptions
and experiences and through this process valuable information is
evolved. During such interviews, sensitive issues can also be probed
depending upon the respondents. The best part of this technique is it
can happen anywhere anytime convenient to respondent and
investigator. In today’s time generally such interviews are recorded to
study the customer’s reaction and for a real feedback.
In-depth interviews have many variants like one to one, focus

interview, unstructured interview, creative interview, pared interview
etc. In each case investigator needs to understand the situation
variables, information collected. Based on which research treatment is
given. In-depth are main form of qualitative research in business.
Here an interviewer spends time in one to one interview finding
about particular information and respondent’s opinion. Many times
the researcher pays a visit to respondent’s workplace and gains a feel
and experience about the business which helps in turn, in validating
the information. In some circumstances such as segment related
studies projecting respondents differently becomes necessary to
identify differences between respondents clearly.
Advantages of in-depth interview

1. Discovery of hidden motivation  
It may be able to discover hidden motivation which really
determines consumer behavior through data obtained from in-
depth interview. In turn it acts an input in solving various
marketing problems.
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2. Motivational patterns 
In depth interviews focus on understanding various motivational
patterns with respect to specific brands or products under
investigation.
3. Clinical insight 
It also helps to provide clinical insight to the researchers by way of
which researcher can make major contribution in understanding
consumer behavior.
Limitations of in-depth interview

In-depth interview have following major limitations.
1. Unsystematic nature 
It does not provide a systematic structure for interpretation of the
information.
2. Non quantifiable 
The information obtained is on the basis of judgments and gut
feelings rather it is more subjective. There could be a bias between
the different samples under investigation, allthough same
interview procedures are followed. If the interviewers are not
trained well enough then it will lead to sufficient amount of
confusion.
3. Cannot be generalized 
In case of in-depth interview generalization of the results is
usually not possible, since sample size chosen is very small and
random sampling is not adopted. In- depth interviews are useful
in case of programs and if they are supported with other
supplementary information then it results into valuable data.
(B) Focus group discussions

A group discussion is a conversation between the people sitting
together. The optimal size of focus group is usually taken as 7-8
persons.The group selected is generally homogeneous for the purpose
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of meaningful discussions. In the group discussion one person acts as

a moderator and he is in the command of keeping the track of the
discussion.
A researcher plays an important role of observer and he or she records

the points and valuable information evolved from the discussion for
the purpose of research.
Focus group perhaps the available technique in term of cost and time
to test new concepts, ideas and products. In addition to this various
customer responses to the media as well as opinions about
advertising and packaging can be obtained. Focus group method has
a special significance to detect current trends in the market, consumer
attitude and perceptions as well. Generally in focus group several
customers are brought together and asked to participate in the
discussion expressing their opinions on given topic or asked them to
explore new creative ideas of subjects.
Focus groups are often seen used as tools for acquiring feedback
about new products and services. The information generated from the
discussions can provide valuable inputs about potential market
acceptance of a product.
Sometimes to overcome the drawbacks of the personal interviews

researchers turn personal interviews to focus group discussions. The
power of focus group is in the creating a discussion environment by
the interaction of the participants. The focus groups are often
stimulated for responding to the comments made by group members.
In this manner, in-depth interviews generate a free flow of
information with in the group.
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Conducting focus group is generally is an expensive affair.

Participants definitely require compensation in some way or the
other. In today’s time researchers are using online techniques for
focus group research methods. Video conferencing, online chat rooms
are some of the advance techniques currently used.
Advantages of the focus groups

1. Fast and cheap 
A group discussion saves on time and cost which otherwise would
have been spent on personal interviews. In addition to this
researcher gets comparative opinions on the spot.
2. Brings respondents and the clients closer  
This technique helps respondents and research to spend time
together in a comfortable environment which builds a good
relationships and it further helps in getting information for many
useful projects.
3. Flexibility 
This technique being flexible and discussion takes place within the
group so uncomfortable situations usually don’t arise and
naturally information is exchanged
4. Throws light on generating hypothesis  
In the focus group valuable information is evolved in a less time
which stimulates thinking of a researcher and focus for generating
hypothesis becomes clear.
Limitations
1. Dilution of the topic: In a focus group discussion if a discussion is
going away from the subject matter and moderator is unable to
notice then it becomes fruitless discussion.
2. Data cannot be projected: Since focus group is a discussion and
points are evolved from the discussions therefore there are no
written statements from the participants. Sometimes participants
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do not recollect what they discussed. Therefore, sometimes

discussions are not adequate enough to draw conclusions
3. Biases: In the focus group unfortunately if the difference of
opinion is formed escalating the discussion then the purpose of
the focus group cannot be achieved.
4. Misuse of Data: Many times in the focus group unknowingly,
information not supposed to be disclosed is revealed. This may be.
dangerous element
(C) Projective techniques

Projective techniques are a important tool in the stimulation process.
For example, in group discussion a moderator may have to stimulate
participants who are ineffective in the discussions. Such techniques
are basically based upon principle of confrontation. Moderator must
be smart enough to make less effective respondents talk for the
purpose of gathering information. In many companies such methods
are devised by psychologists and senior people carry out the task.
Projective techniques provide verbal or visual stimulation with an

objective to encourage respondents and to get insight for respondents
and reveal their hidden feelings.
2. Based on observation
Observation is something to do with watching people closely about
what they do. Information which can be obtained from the
observations is like their actions, expressions, reactions to a product
or an event and interactions etc. In the recent past with introduction
of ethnography (Behaviour description technique) and action research
this technique has gained a special importance in the field of
marketing research.
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Researchers apply wide range of techniques for observing consumer

reactions and interactions while using products and services. A core
advantage of this research is that the respondent is unaware of he or
she is being observed. Therefore, their reactions are natural and which
is precise purpose of the research.
In this particular research respondents are performing their acts with

their instincts and not under any influence so the measurement of
responses to any product attributes is at best natural. Similarly direct
observation of consumer behaviour reduces error of judgment
considerably.
A classic example of continuous video taping in Shopper’ Stop or

various malls which is then passed on to researcher to record the
responses and reactions.
Another effective technique is tracking of eye movement by software

of the subject while running through the shelves of malls.
Other Popular forms of observational research include the mystery

shopping to test quality of consumer experience or quality of
consumer service. In foreign markets sometimes cameras are used to
take snapshots of consumer reactions with products and with help of
psychologists they are being researched.
Popular observational research methods are as below:
1. Ethnography: Ethnography is a behaviour description technique. It

describes the behaviour in a most natural manner and makes a
complete observation record of the respondent. This research was
most commonly used in community research, however now it finds
the application in researching consumer behaviour. Ethnography
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traditionally refers to the study by the researcher of the typical

community and their culture. However, ethnography has been
integrated with qualitative research by researcher spending complete
day and time with consumer in malls understanding their buying
behaviour patterns likes and dislikes spending habits etc.
There are many ways of conducting ethnographic research: They may

be short/long-term, consumer/non consumer by nature. Depending
on no. participants as a sample for population under consideration
etc.
2. Participatory observations: In this observational method the

researcher becomes actual part of the event of buying. Wherein
researcher may have interaction with the respondent while purchase
process is on. Researcher has to blend himself within the process and
make observations while extracting the information.
This method requires the researcher to be the active participant The

researchers main aim is to get closest insight to the consumer or
group of consumers and make observations. This research technique
is practiced directly on the floor of the shopping arena and in most
natural and unbiased environment and in routine course with other
methods it may take several months to collect such original
information for analysis. Researcher records all the experiences with a
perspective of the subject of research for future studies and references.
According to Baker and Geer in participant observation, the observer

participates in day to day activity of the people under study in the
covered manner observing things that happened to them, listening to
what questions they ask and understanding their responses to the
information they receive. However, this activity is carried out in the
subjective manner and not to the personal manner. This activity is
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purely observational and judgmental therefore trained and well

experiences research professionals are required to handle these
activities. The success of the research depends upon how naturally the
responses are collected and how they are applied to the research
subject. By experiencing the inner feelings and responses of the
respondent the marketer becomes are of the crucial impact factor
which influence the respondent in a given scenario. This research also
highlights the values and the priorities of the respondent.
7.4 Summary
To summarize, qualitative research methods broadly include group
discussions, in-depth interviews, projective techniques, ethnographic
and participatory observation techniques. In the focus groups, the
technique involves several respondents at the same time. This
emphasizes on outcome of the group interaction when group is
focused on several topics under discussion. Moderator or a leader
records the outcome, sometimes the researcher himself acts as a
moderator. They play a role of observer and a passive role of
moderator. In projective techniques indirect interviews are performed.
These techniques enable respondents to project their view, feelings,
believes on to a third party or getting them indulge in to some
purchasing act. When respondents project certain expressions and
feelings it generates the valuable information about the product of the
service. The researcher in this method sets up a situation for the
respondent by probing them and allowing them to express their own
views through stimulation.
On the other hand, ethnographic research method uses most natural

observation to record the detailed behavior of the research subject.
This comprises of the cultural aspect, day to day living, interactions,
and responses from the respondent over a length of time.
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Participatory research depends upon researcher’s ability to blend and

extract information by becoming an integral part of the event or a
group. In this method the researcher actually becomes a part of event
or a group while observing. It aims to gain insight of the individual or
a group about their behavior and responses in the natural buying
environment.
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1. Which of the following research is based on the questioning and
observations? 
(a) Qualitative  
(b) Quantitative  
(c) Experimental
2. Discovery of hidden motivation is observed in following

technique _____________. 
(a) Based on questioning  
(b) Based on observations  
(c) Based on in-depth interviews.
3. When a homogeneous group with a moderator is discussing

advertisement effectiveness, then it is which technique researcher
is following _____________. 
(a) Projective technique  
(b) Focus group  
(c) Questioning
4. The test in which a respondent is given a word which propagates

response and comes out with meaningful thoughts _____________.
(a) Word association test  
(b) Clinical focus group  
(c) Story completion test
5. The technique used for generating a discussion in informal

interview and forcing purposefully respondent to answer
_____________. 
(a) Thematic appreciation test  
(b) Projective technique  
(c) Focus group discussion
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6. Following study is known as a study of behaviour or a study with

respect to community _____________. 
(a) Grounded theory  
(b) Participatory observation  
(c) Ethnography
7. Following is a research method in which analyst is actually a part

of the group and blends with a group to extract the information
_____________. 
(a) Participatory research  
(b) Experiencing focus group  
(c) Exploratory focus group
Activities for the students:

(a) Explain with suitable examples how you will carry out focus
group interviews?
(b) Plan an ethnographic study for investigating the use of perfumes.
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chapter
Summary
PPT
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CAUSAL AND EXPERIMENTAL RESEARCH
Chapter 8 - Causal and Experimental Research
Objectives
After studying this chapter students will be able to understand, how

causal research is concerned with understanding the connection
between the cause and effect. causal research is often conducted
through the use of controlled experiments to allow for the testing of
cause and effect. It explores the effect of one variable on another.
Students can learn how to conduct a controlled experiment in
laboratory (controlled environment) to obtain the best performance
on causal research
Structure:
8.1 Introduction to Causal Research

8.2 Causality
8.3 Experiment
8.4 Summary
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8.1 Introduction to the causal research

Causal research is usually connected between the cause and the effect.
It is often performed through the controlled experiments of testing the
causes and effects. It explores the effect on one variable with respect
to changes in another variable. The research is used to measure a
specific impact of change based on existing norms and therein helps
researchers to predict hypothetical situations for which a company
needs to make a plan. For example, Arvind Mills currently selling
blue and black colored denim jeans and a company wishes to
introduce a white colored jeans, then for this purpose company needs
to carry out an experiment through causal research in which it may
put on prototype white genes on mannequins displayed in showcase
and study the impact and responses from regular visitors. Based on
feedback of these experiments from various showrooms company
may decide about launching white jeans.
J.S. Mills formulated a set of principals based on logic for causal

research design. causal research design can be divided in to two
categories (i) natural experiments, (ii) controlled experiment. The
main point of discussions between the two is the degree of
intervention or manipulation exercised by the investigator in a given
study. A natural experiment will hardly involve intervention from the
investigator to the extent required for the measurement. However, in
a controlled experiment investigator intervention is to control and
manipulate variables.
8.2 Causality
It is a predictable and demonstrable effect of one variable on other. It
has three main components
(a) Correlation: It refers to the relation between the two variables that
vary in a predictable manner.
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(b) Appropriate time: It is a time considered change from the cause to

effect.
(c) Elimination of extraneous factors: A researcher must be able to
eliminate these factors in experiments as they directly impact the
recorded change. This is required for accuracy of result in the
experiment. For example, in a showroom when white jeans is
displayed, then showroom salesman should not actively promote
the product and allow the natural attention and enquiry from the
buyer to get successful result of the research experiments.
Features of Causality
1. Causal Research explores the effect of one thing on another and
more specifically, the effect of one variable on another.
2. The research is focused to measure the impact of a specific change
happening in one variable corresponding to cause a change in
another variable. To predict the hypothetical scenario, based on
which company can plan.
3. It deals with cause and effect relationship
4. It involves experiments where independent variable is changed to
see how it affects a dependent variable.
Significance of Causal Research

In this research the researcher basically tries to determine the changes
in one variable with respect to caused changes in other variables by
means of a experiment.
Marketers use this method primarily to test hypothesis and make

predictions. Sometimes it is also used for explanatory purpose. In
general in marketing this method is mostly use for the purpose of
testing experiments, such as what might happen to product sales if
changes are made to product design or changes in methods of
advertising or changes in promotional strategies. If causal research is
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performed well, then marketers will be able to accurately able to

forecast what might be beneficial for a company in future
Limitations of Causal Research

1. Field variables can involve many variables out of control of the
experiments, which will result into unanticipated differences.
2. It may be difficult or expensive to gain the cooperation of retailers
or wholesalers to set up the experiment
3. Marketing person is not skilled enough or doesn’t perform the
experiment seriously which will not give accurate results.
4. f there is a bias in the experiment which takes place consciously or
unconsciously then the experiment will not be effective leading to
errors.
8.3 Experiment
Experiment refers to a research design to study the changes in one
variable with respect to changes in another. This is based on study of
cause and effect.
An experiments main objective is to notice the change and measure

the change during the experiment. This outcome of the experiment is
used to draw the conclusions or testing the hypothesis.
Experiment is done by controlling one variable and manipulating the

other variable of interest, thus measuring the change created in the
dependent variable. The researcher is an active participant in the
research process.
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Types of experimental research designs

(a) Experimental design: This is a test I which researcher has a
control over more than one independent variables and
manipulates them.
(b) True experiment design: It is a research where the researcher has a
complete control over the administration of the treatments and
uses an experimental group and a control group together.
(c) Quasi experiment: In these research methods the researcher lacks
a complete control over the scheduling of treatments where
respondents are assigned to the treatment in a non random
manner.
(d) Laboratory experiments: Tests are done in the sterile environment
in which the researcher can control all causal factors. However,
One should understand that although laboratory allows the
control of all factors to the researcher, the laboratory in true sense
does not represent the market. Therefore, generalization of the lab
experiment is always an issue. 
Laboratory experiments are considered mostly for the internal
validity but they may lack external validity. therefore laboratory
experiment are statistically may be correct but generalization to
the market place is questionable.
(e) Field experiments: These are the experiments carried out in the
field outside the laboratory and in actual market environment. A
test marketing of new product is a classic example of such
experiment. This experiment is highly popular amongst the
marketers, as this gives a direct exposure to the market and first-
hand results are obtained. However, in this research there are
many factors which are out of control for the researcher. For
example, a researcher cannot precisely measure the reaction of a
competitor to the test market or the effect on economy or effect on
social trends etc.
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Therefore, field experiments lack certain internal validity components

but it gives the best external validity. The outcome of such an
experiment has two effects
(a) It cannot be assured for statistically going correct
(b) It is more likely to be generalisable to other market situations
Steps in experimental research design

(a) Select and define the problem: The first step is to select and define
the problem clearly in operational terms to understand the
objective of the research.
(b) Nature of the study: The research design should be corresponding
to the study undertaken. Statstical, experimental and comparative
objectives must be designed at this stage for further planning
(c) Sources of the data: The researcher must clearly specify the
sources of the data like library; personal documents, field data,
etc., after selecting the problem.
(d) Techniques of data collection: A suitable technique has to be
adopted for data collection the relative merits of observation and
interview must be considered appropriate for the subject.
For developing a proper experimental research design an adequate

and representative sample needs to be selected. This may be achieved
by drawing a random sample or using a stratified sampling method.
Advantages of experimental methods

(a) The conclusion drawn from the experiments are subject to
verification at any point of time.
(b) The experimental methods help in establishing the cause and
effect relationship more clearly than other methods
(c) The experimental methods are considered to be the best for
accurate predictions.
(d) The experimental methods are universal in applications
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(e) Experimental methods are more precise and accurate since

variable understudy is manipulated leaving others as it is.
(f) Experimental methods is the best method for testing hypothesis in
causal research and hypothesis can also be verified.
Limitations of Experimental methods

(a) Experimental method has limitations in terms of social studies due
to large variety of sample and characteristics. Experiments can be
carried out when the subject is homogeneous such s physical
science where in heterogeneous science it is exactly opposite as no.
of variables are beyond considerations and controls. Therefore, use
of experiments is limited.
(b) It is a strict requirement of the experiment that except one cause
factors all other variables must be strictly unchanged. This is
practically very difficult in social science because of the
complexity of social phenomena and its dynamic nature about
unpredictable human nature.
(c) Human beings which are subject matters of the experiments are
difficult to predict and manipulated. as they work on their own
free will. Their willing cooperation and sincere attitude in
experiment is essential for accurate outcome of experiment. The
lack of interest in experiment from the subject will get the
experiment in wrong direction and results cannot be assured with
this approach.
Experimental Validity
Validity refers to actually measuring, what it attempt to measure.
Validity suggests that the measuring instruments must be free from
any errors
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There are two types of validity of concerns in experimental research:
(a) Internal validity

(b) External validity
(a) Internal validity: It is the causal interference in scientific studies

(b) External validity: This pertains to how well the findings of the
experiments are obtained. It can be tested while generalizing
the findings. In generalization manipulation of a sample beyond
the certain limitations is not possible in the real world
situations.
Following are certain methods to ensure internal and external

validity.
1. Random selection of the subject
2. Random assignment to treatment conditions
3. Matching subjects on relevant variables
8.4 Summary
While summering one can say that causal research is a concern
between cause and effect. It explores the effect of one variable on
another variable. causal research measures the specific change with
the help of controlled and natural experiments. This research allows
market researcher to predict hypothetical scenario – based on which
company can make future plans.
Experimental designs are broadly classified into classical designs and

statistical designs. Classical designs consider the impact of only one
treatment level of an independent variable at a time. On the other
hand statistical design allows for examining the impact of deferent
treatment levels of independent variables. Validity refers to what is
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attempted to be measured in the research. Validity suggests

measuring instrument must be free from substantial error. There are
two types of validities in the experiment, (1) Internal validity and (2)
External validity.
Internal validity is a causal interference in the experiment. Field

experiments have greater external validity, however, they are more
costly, time consuming and complicated to implement besides it
controlling a field experiment is always an issue.
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1. Which of the following research, explores the effect of one variable
on another _____________. 
(a) Experiments 
(b) causal Research  
(c) Correlation 
2. Symmetrical relationship is the one in which _____________. 

(a) Variable A fluctuates with change in Variable B 
(b) Variable B fluctuates with change in Variable A 
(c) Both variables fluctuate together. 
3. Causal research is concerned with _____________. 

(a) Experiments  
(b) Relationships  
(c) Cause and effect 
4. _____________ measures the change in the dependent variable

created by a specific controlled change in another variable 
(a) Scale  
(b) Experiment  
(c) Exposure 
5. Experimental design is a test in which the researcher has a control

over _____________ 
(a) One variable  
(b) Both variables  
(c) All the variables associated 
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6. Following are the studies in which the researcher lacks complete

control over the scheduling treatments _____________. 
(a) Laboratory experiments  
(b) Field experiments  
(c) Quasi experiments 
7. The studies which are conducted in the marketing environment

such as test marketing _____________. 
(a) Quasi experiments  
(b) Field experiments  
(c) Laboratory experiments

1. Select the appropriate experiment for launching Ilyachi flavour tea
in market.
2. What are steps involved in experimental research design.
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chapter
Summary
PPT
MCQ
262
PRIMARY DATA
Chapter 9 - Primary Data
Objectives
Primary data is the data observed or collected directly from first-hand

experience. In primary data collection, the researcher collects the data
on his/her own methods.
After completing this chapter students will be able to understand
• various methods for collecting information.
• understand various techniques of computations
• understand the methods of questioning
Structure
9.1 Primary Research

9.2 Primary Data
9.3 Questionnaire Design
9.4 Attitude Measurement
9.5 Observation method of data collection
9.6 Web-Based primary data collection:
9.7 Summary
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PRIMARY DATA
9.1 Primary Research

Primary data is a data observed or collected directly from respondent
(first-hand experience).
In primary data collection the investigator collects information by

using techniques such as interviews and questionnaires. The core
issue in the primary data is the data collected is unique to you and
your research and until it is published no one has access to it. There
are several methods for primary data collection.
• Questionnaire
• Interviews
• Observation
• Case study
• Diaries
9.2 Primary Data

• Primary data is important for various areas of research. It is the
original valuable information.
• This data is most reliable and valuable and it helps to make quicker
decisions and strategies.
• Primary data has a special significance. It is used as immediate data
in determining the survival of the marketer.
• Popular ways of collecting primary data are: surveys, interviews,
focus groups. These methods allow researcher to establish direst
relationship between companies and potential companies.
• Primary data always provides the latest information.
• Primary data is collected by the researcher focusing to meet the
research objective of the research project.
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PRIMARY DATA
9.3 Questionnaire Design

Questionnaires are economical ways to gather information in a
structured format from potentially large number of respondents.
Often that’s the only feasible way to reach large number of
respondents needed for statistical analysis and drawing of results. A
well designed questionnaire if it is used effectively can gather
valuable information on both the over all performance of the testing
system and specific components of the system. The questionnaire
which includes the demographic questions of the participants, can be
used to correlate performance and satisfaction with a test system
amongst different group of users.
Following are the steps required to design and administer a

questionnaire.
(A)Defining objective of a survey
(B) Writing a questionnaire
(C) Administering the questionnaire
(D)Interpretation of the results
(A) Defining objective of a survey: It is very important to have well

defined objectives before writing the questionnaire. A questionnaire
written without clear goals and the purpose may overlook certain
important issues at the same time may indulge the respondent and
investigator in an irrelevant issues wasting time and energy for both.
Further, the poorly defined questionnaire may lack a logical flow of
information and result, participants may lose their interest.
Consequently, the useful data which was required to be collected may
be compromised. In other words it would not be possible to reach
insightful conclusion if questionnaire has poorly designed questions
and not well defined objectives.
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PRIMARY DATA
(B) Writing the Questionnaire: Once it has been decided what kind of
data is required to be collected process of formulating of the
objectives and investigation procedure are created. At the same time
composition of participatory group is confirmed. The questions are
obviously framed based on the subject matter of the project and
considering the demographic data of the participants.
This is used to correlate response between different groups of people.

It is important to see the consistency of the responses across the
groups. For example if one group of participants is less satisfied with
a test interface then it is likely that interface was designed without fair
consideration.
For example, if one group of participants is noticeably less satisfied

with the other, then the interaction is without fair consideration of
the group needs. This may call for redesigning of the questionnaire.
Sometimes, few questions from the questionnaire are designed
pertaining to only specific kid of respondents; in that case it’s a
wasteful question.
Demographic data is required to be collected in the beginning

questions for the questionnaire, However, it is noticed that sometimes
these questions are scattered around in the questionnaire. When the
demographic data is completed right at the beginning then it also
helps investigator to ask questions accordingly and accurate
information can be obtained.
While writing the questionnaire, it is important to understand what

questions are to be framed to obtain meaningful data.
There are two methods of questions:

(a) Open-ended questions (b) Closed-ended questions
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PRIMARY DATA
(a) Open-ended questions: These questions are elaborative questions

or also called descriptive information questions. In this there are no
predetermined responses. Respondent is supposed to answer in his
own words.
Open-ended questions are good for soliciting the subjective data

because the responses are not tightly defined. This is advantageous
for the survey in a way that many different responses and opinions
can be received through this and resultantly, accurate and focused
data can be generated. In addition to this many suggestions and the
data is automatically generated. Commonly, it is followed to end
questionnaire with specific suggestions from the respondent for
improvements or changes.
Open-ended questions have several disadvantages. They are required

to be read individually and could be understood differently by
different people. As they are not being precise the answer could
deviate from the core subject. As a result irrelevant information flows
and truthful information may be diluted. There is no way to
automatically tabulate and translate them into statistical data. This
method is costly in terms of time and money. This method has a
particular disadvantage of a influence. For example, if interview is
being conducted by a smart and beautiful looking lady then
respondents may act under influence and will not give true
information in terms of actual income, lifestyle, habits, etc. Open-
ended questions require more thoughtful thinking and time to
answer. Therefore, respondents try and avoid such questionnaires.
(b) Closed-ended questions: These types of questions usually are

taken in the form of multiple choice questions. There is no clear
answer to, how many options really should be offered to the closed
ended questions? The standard method is to provide sufficient
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PRIMARY DATA
alternatives. Usually these questions have 3-5 options. For questions

that measures a single variable or opinion odd number of alternatives
should be offered like 3 or 5. This allows a neutral response. For larger
questionnaire which tests opinions on a very large number of items,
there may be longer series of questions to get to know about
behaviour and attitude. Closed ended questions offer many
advantages in terms of time and money. Hard statistical data can be
generated from the information. This format is software-friendly can
easily tabulated, structured and can be used as a database to perform
preliminary analysis. Closed-ended questions can also be used for
tracking over a time by administering the same questionnaire to
different groups of participants. Finally in close ended questions there
is a provision for filteration of data removing irrelevant information.
This is not possible in the open ended questions because there is no
provision for filtration.
Important precautions for writing the questionnaire

The questions may be open or closed ended type, there are several
points that must be considered while writing and interpreting the
questionnaire.
1. Clarity: This is the most concerned area in the questionnaire

because this is the most of the mistakes occur because of unclear
questions. Questions must be clearly defined, concise and explicit.
This is to eliminate the chance that the questions will mean differently
to different people. If the researcher fails to do this then respondents
will be answering questions differently. It is always best to frame the
questions empirically and as much possible and to avoid unnecessary
use of adjective. For example while asking a question about frequency
of usage the same question can be asked in two different
interpretations as given bellow.
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PRIMARY DATA
Question:
How frequently do you use dental floss?
1. Very often
2. Often
3. Sometimes
4. Rarely
5. Never
This same question may be asked with different choices.

1. Everyday or more
2. Two to five times a week
3. Once a week
4. Once a month
5. Never
There are more subtle aspects such as language. Avoid the use of
ethnic or colloquial expressions. That might not be familiar to
respondents. Complex technical terms should be also avoided.
2. Leading questions: A leading question is the one which implies to

a certain type of answer. It is easy to make this mistake not in the
question but in the choice of answers. A closed ended question must
supply choices that not only cover the whole range of responses but
that are also equally distributed throughout the range. All answers
should be equally likely. For example, answer choices could be:
(a) superb
(b) excellent
(c) great f
(d) good
(e) fair
(f) not so good.
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PRIMARY DATA
A less blunt example would be, ‘yes’ or ‘no’ type of question.

Question according to you, is Dell laptop is provided with Cad
interface?
In this case even if the respondent love Dell as favorite laptop if it

cannot be used as best interface Cad software then this question will
definitely have unbiased response.
3. Phrasing: Most adjective, verbs, nouns in English have either

positive or negative effect. Two words may have equivalent meaning
yet one may be complement to other at the same time other meaning
can be insulting. For example, consider two words such as,
(a) Child like
(b) Childish.
The very first word is a affection term and word childish is not a term
liked by most of the people.
A more subtle but less troublesome example can be made with verbs
that have neither strong, negative or positive overtones. For example,
consider the following questions,
1. Do you agree with the government’s plan to oppose new

Telangana state?
2. Do you agree with the government’s plan to curtail development
of new Telangana state?
Here we notice both the questions ask the same thing since they are
asked differently it will produce different data. In this case, it is
impossible to predict the outcome to counter this problem the
questionnaire must have sufficient tracking methods.
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PRIMARY DATA
4. Personal questions: Personal questions of the embarrassing type

should be avoided. The generated data is nothing but trust and care
for your respondent.
5. Hypothetical questions: Hypothetical questions are based on

incomplete and fantasy. For example if you are a president of India
how will you stop corruption?
Such question forces the respondent to think about what he or she

may have never considered. These types of questions do not produce
a relevant and consistent data and it is a waste of question. Never ask
hypothetical questions.
6. Prestige bias: Prestige bias is the tendency for respondents to

answer in a manner which makes them feel better. To be more precise
people may not lie directly, but may try to put a better light on
themselves. For example commonly when people are asked to
respond about their opinion about a political party during election
then they will not have clear opinion and reason to validate the same.
Many times people express what they like or dislike based on special
campaign such as distribution of food and clothes. In this case they do
not consider whether they agree to the policies of political party.
There is very little that can be done to prevent prestige bias. The best
way to deal with prestige bias is to make the questionnaire as private
as possible. In such situations telephonic interviews and mail
questionnaire are the better option. The further away the critical eye
of the researcher more honest are the answers.
(C) Administering the questionnaire: This is the actual step where

the data is being collected. Once the questionnaire is designed and
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PRIMARY DATA
returned, it is put forth to the respondent in the best possible manner

to obtain the responses and record them.
(i) Mode of administration:

Questionnaires can be self administered or filled in by an interviewer.
Self administered questionnaire can be mailed to the respondent, if
correct mailing address is available or delivered personally.
Interviews can either be conducted over telephone or face to face.
Sometimes it is advisable for self administered questionnaire which
provides a greater privacy to the respondent. It is advisable that self
administered questionnaire should be checked with respondent for
completeness and consistency during established contacts. In case of
highly technical or special information it must be validated by a
qualified person. For example engineer or doctor for completeness,
consistency and authenticity of the information. In the case of direct
administration following general rules should be followed,
• Present a question exactly as written in the questionnaire.
• Ask the questions second time and in the same way as the first
occasion as if the respondent has not understood the questions.
• Do not induce certain answers.
All the questions in the questionnaire must be asked and obtained

answers for.
The following aspects must be considered while administering,

• Who will record the answers to the questions: the respondent,
proxy of the respondents such as parents, brother, sister or an
interviewer.
• Method of application: Mail, telephone, e-mail, Internet, personal
interview etc.
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• Length of the time to complete: What is the availability of the time

to the respondent and what is his willingness? (it is always best not
to exceed more than 20 minutes per interview.)
• Knowledge level of the respondent: What level of knowledge is
necessary to complete the questionnaire?
• Open and closed-ended question: Thinking about weather open or
closed ended questions or a combination of both to be used is
essential. Open-ended questions are generally associated with
qualitative research and closed-ended with quantitative research.
• Validation of questionnaire: It is best to determine whether
questionnaire already exists, particularly it has been validated by
professional. Incorporating a standardized questionnaire reduces
complications, obtains accurate data and helps to validate the
information.
• The response variables: Does the question requires ‘yes/no’ answer
or ‘scale from 1 to 10’, etc.. The analyst should be consulted for the
sort of statistical tests he or she intends to carry out.
(D) Interpretation of the result: A questionnaire is a powerful

evaluation tool. A questionnaire always begins with understanding of
the capabilities of a questionnaire and how it can help a research? A
significant amount of care is required in planning and setting
objectives of the questionnaire. Questionnaires are like any scientific
experiments. One forms a hypothesis with help of experiment which
will help to proved or disprove the hypothesis.
Questionnaires are versatile allowing the collection of subjective and

objective data through the use of both open and closed ended
questions. There are many guidelines that must be met before the
questionnaire to be used as a research tool. The core of the guideline is
questionnaire must be understandable and free from bias. In-depth
review and testing is necessary to eliminate mistakes which may
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cause changes in the meaning and interpretation of the research.

When the researcher strictly adheres to the guidelines then
questionnaire becomes a power-full evaluation tool to obtain valuable
research information.
Analysis
The interview-related errors can be reduced through proper training.
During the training interviewers are provided with the subject
information and thorough understanding of the protocols and
purpose of the research. Generally printed manual of guidelines or
written instructions are given on, how to conduct interview? and
how to act in response to different situations? For example, what
should be done if the respondent has not clearly understood the
question?
Trainers normally include interview drills, question answer sessions,

lectures, practical interviews, etc.
During the training sessions the protocols would be discussed in

detail. The trainer should ask questions to the interviewer about the
survey and the protocols. The manuals should cover maximum
possible situations that may arise on the field. How to explain the
question to the respondent? Or how to probe a respondent to get
precise answers? This part is covered in field training program where
the researcher and interviewer make combined calls to appraise
interview methods.
9.4 Attitude Measurement

Attitude is a resultant of number of external and internal factors.
Gene F Summers defines ‘attitude as a predisposition to respond to a
idea or a object’. This refers to the consumer’s predisposition about
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the product or the service. If it is favorable then the consumer is likely

to purchase to product or service. Attitudes about product or services
mainly comprise three elements,
1. Beliefs (product strength, economy of the product)
2. Likes and dislikes.
3. Readiness to buy the product
The above three elements together create an image of the product in

the mind of the consumer. Attitude measurement is commonly
known as scaling.
Attitudes are person’s general evaluation. Many of the questions in

marketing research surveys are focused to measure attitude.
Customer attitude is an important factor for the following reasons,
• Attitude helps to explain the willingness.
• Attitudes do not change much over period of time.
• Attitudes are integral part of consistency of the behavior
• Attitudes are directly related to the preferences.
Issues in the attitude measurement

Attitudes can be measured by using following procedures:
• Self reporting: In this method respondents are asked directly about
their attitudes. Self reporting is the most common technique used
for measurement of attitude
• Observation of behaviour: Assuming that behaviour is result of
attitude, attitudes can be recognized by observing behaviour.
• Indirect technique: This method uses unstructured ways to
measure the attitude. For example, sample test and association of
word test through short questions.
• Performance of objective tasks: It is assumed that individual’s
performance is linked with an attitude. For example, respondent
may be asked to memorized an argument from both sides. He or
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she is likely to do a better job on the arguments that he or she is

impressed upon.
• Physiological behaviour: Respondent’s responses are stimulated in
this method and then subjected to electronic or mechanical
machines to measure the response intensity. In this method
intensity can be measured by machines but it is difficult to confirm
a positive or negative attitude.
• Multiple measures: This methods uses a mix of techniques which
can be used to validate the findings.
The measurement techniques can be divided in the following manner

1. Non disguised-non structured methods 
(i) Focus group discussions 
(ii) In-depth interviews
2. Disguised non structured techniques 

(i) Word association 
(ii) Story completion 
(iii) Sentence completion 
(iv) Pictorial technique and cartoons method
3. Non disguised structured techniques
4. Disguised structure technique 

(i) Ordinary scale 
(ii) Interval scale 
(iii) Ratio scale 
(iv) Graphic rating scale 
(v) Multiple item scale which includes Likert Scale and Thurston
Scale
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1. Non disguised-non structured methods: In these methods there is

no fixed structure for conducting interviews and the purpose of
interview is not secretive.
(i) Focus group discussions:

In this type of interviewing method a discussion is focused on the
subject of research. This kind of interview takes about two hours if
conducted in a structured manner. The interviewer many times plays
a role of moderator and while conducting a discussion skillfully
makes the research related observations. In the latest focus group
interviews entire group discussion is video recorded to make detailed
observations along with expressions and reactions.
Main characteristics of the focus groups are as bellow,

• Conducted in the unstructured manner. Discussions are taking
place through the moderator. Free flow of ideas are encouraged in
the group.
• Usually 8 to 10 members in the group who are target respondents
or the consumers.
• Usually it lasts up to 2 hours, in expensive and time-efficient
method.
• The interactive group discussion is generally led by a moderator.
• Responses can be completely recorded.
• In today’s time using computers and internet technology one can
have online discussions. Chat rooms and net forums are popular
focus group discussions which are conducted online.
• In this kind of discussions group dynamics is useful in developing
new schools of thoughts.
(ii) In-depth interviews

This is a detailed interview method between a respondent and a well
trained researcher. During the session the respondent is encouraged
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to express himself or herself freely about his or her preferences,

interests, attitudes, feelings, activities, moods, opinions, believes and
values with detailed elaborations. In the whole interview the
interviewer is expected to talk less and listen more. In today’s time
video recording made for analyzing various aspects of behaviour like
moods, styles, body language, gestures of the respondent. The
following are important characteristics of the in-depth interviews.
• Interviews bring out rich and most recent information.
• Interviews are flexible.
• In interviews skillful probing is very essential to uncover hidden
issues.
• These can be time consuming and responses could be difficult to
interpret.
• Interviews are expensive, interviewer bias can be easily introduced.
• Repot establishing and obtaining useful information for the subject
of research are two core activities under interview.
• Questions are cascaded in which the interviewer begins
questioning about external environment and social phenomena and
gradually enters in the personal arena to uncover internal attitudes
and feelings.
• A skilled interviewer uses hidden issue questioning in which
interviewer concentrates on deeply felt personal concerns.
• Many times symbolic analysis is used by interviewer in which
deeper symbolic meanings are probed by asking questions about
their opposites.
2. Disguised non structured techniques: In these methods, the

interviewee doesn’t know about his or her attitude is been measured.
This technique uses many different types of stimulation to which the
respondent is asked to respond. In this method the respondent reveals
several elements of attitude which otherwise he wouldn’t have
disclosed in direct questioning. In this method use of projective
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technique is very common, often consumers give their views which

are rational and unconsciously delivered, these methods give rise to
incorrect data, insufficient information. Researcher must be smart
enough to conduct a variety of disguised tests bring out the truth.
Researcher use many methods such as complete the incomplete
statement. Untitled pictures, word association tests, etc., this method
forms an integral part of in-depth and focus interviews. The following
are main characteristics of these techniques:
• These are unstructured and stimulated which encourages the
respondents their underlined motivations, beliefs, attitudes or
feelings.
• They are all indirect techniques that attempt to disguised for the
purpose of research.
Examples of projective techniques

• It says the first word which comes to the mind after hearing a word
only some of the words in the list are test words that the researcher
is interested in and rest are feelers. This method is useful in testing
brand names. Variants include such as change word association and
control word association.
• Sentence completion: In this method respondents are given
incomplete sentences asked to complete them.
• Story completion: In this method respondents are given part of a
story and are asked to complete the same.
• Cartoon test or pictorial test: In this method pictures of cartoon
characters are shown in specific situations and with dialogue
balloons. And one of the dialogue balloons are kept empty to be
filled by the respondent.
• Thematic apperception test: In this method respondents are shown
series of pictures and asked to make-up a story about a picture.
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• Role playing: Respondents are asked to play the role of someone

else and researcher assumes the respondent shall project their own
feelings or behaviors in the role.
• Third person technique: A verbal or visual representation of an
individual and his or her situations is presented to the respondent.
Respondent is asked to relate the attitudes and feelings of that
person. The researcher assumes talking in the presence of third
person which will minimize the social pressure and will behave
with standard response.
• Metaphor analysis: In 1990, a study on consumer research revealed
that non verbal communication is more common and efficient and
people think with the help of images and not the words. The
consumer’s thought process is in the series of images, it is likely
that consumers don’t have enough words to express adequately.
Hence, it is important to represent their images in an alternate non
verbal form. Like pictures, photos, sound, cartoons, animations,
etc., the use of one form of expression or to describe or represent
the feeling about another is called the metaphor. The Zeltman
Metaphor Elicitation techniques (ZMET), the first patented M.R.
tools which realizes on visual images to access consumers deep and
subconscious thoughts about products, services and marketing
strategies.
3. Non disguised structured techniques: Non disguise structure

methods of measuring attitudes include various self rating scales of
the graphic, ranking, multi item types. In general they are simple and
easy to use yet they give good results. The only problem in using such
scale is with their validity that is, do they really measure what they
presume to measure? It is difficult to find standards against which
the validity is measured. The common method has been of comparing
the opinions of the products with respect to their market shares or
with purchases following opinion measurements. These tests tend to
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support the validity of various attitude measures but the co relation is

not really perfect. Price is confusing factor in these validity tests, the
most expensive brand is often considered the best even though many
consumers may not choose to pay the high price.
4. Disguised structure technique: Disguised structured techniques

have many of the advantages of non structure methods. The
disguised structured method will slowly replace non structured
methods as researchers become more imaginative in their use.
Various scales have been made to measure attitude in this method.

The term scaling is applied to attempt the attitude measurement
objectively. Depending upon the attitude to be measured appropriate
scales are designed. Scaling is a technique used for measuring
qualitative responses of the respondents such as feelings, perceptions,
likes, dislikes, interests and preferences.
Most frequently used scales are:

1. Nominal scale.
2. Ordinal scale.
3. Interval scale.
4. Ratio scale.
These four types of scales are popularly used for marketing research.
1. Nominal Scale: This is a very simple scale. It consists of an
assignment of facts to various alternative categories which are usually
exhaustive as well as mutually exclusive. These scales are just
numerical and are least restrictive of all scales.
For example: Credit card numbers, bank account numbers, employee

ID numbers. It is simple widely used when relationship between two
variables are to be studied. In a nominal scale, numbers are no more
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than labels and are used specifically to identify different categories of

responses.
Q.1: May I know your gender?

[ ] Male
[ ] Female
Q.2: How do you maintain inventory of stock items?

[ ] By product category
[ ] At a centralised store
[ ] Department wise separate
[ ] Single warehouse
Q.3: What is a daily turnover of your customers?

[ ] Between 100-200
[ ] Between 200- 300
[ ] Above 300
A two way representation can be made in following manner.

Daily turnover Product Department wise Centralised Single store
category store
100- 200
200- 300
300 Above
2. Ordinal scale: Ordinal scales are simplest attitude measuring scales

used in marketing research. It is more powerful than a nominal scale
in that the numbers posses the rank or order.
Example.1: Rank the following attributes of the hair dryer (1-5), on

their importance in a hair dryer.
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(a) Company name

(b) Functions
(c) Price
(d) Comfort
(e) Design
The most important attribute is ranked on 1 number and the least

important attribute is ranked on number 5. Instead of numbers letters
or symbols can also be used. To rate the ordinary scale. Such scales
make no attempt to measure degree of favorability of different
rankings.
Example.2: If there are 4 different types of raw materials they are to

be ordered on the basis of quality such as Grade A, Grade B, Grade C,
Grade D it can be again done on an ordinal scale.
3. Interval scale: In this method the distance between various

categories is not like nominal, or numbers like in ordinal, are equal in
case of interval scales. The interval scales are also known as termed
scales. An interval scale has arbiter zero point with further numbers
to be place at an intervals
A classic example of this is a Thermometer.
Example.1: How would you rate your current television on following

attributes?
Company name Less Known 1 2 3 4 5 Well known
Functions Few 1 2 3 4 5 Many
Price Low 1 2 3 4 5 High
Design Poor 1 2 3 4 5 Good
Overall Very
Satisfied
satisfaction Dissatisfied
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Such a scale permits the researcher to say that position 5 is above

position 4 and also the distance between 4 and 5 is same as distance
between 3 and 4. The data obtained from interval scale can be used to
calculate the mean score of each attributes of over all respondents.
4. Ratio Scale: Ratio scales are not very widely used in marketing
research in less base items are made available for comparison. In the
above mentioned example, a score of 3 or 4 in one quality does not
mean that the respondent is twice more satisfied than the respondent
who makes score of 2 on a scale.. A ratio scale has a natural zero point
and further numbers are placed at equally appearing intervals. For
example, scales for measuring physical quantities like length, weight
etc.
The ratio scales are very common in physical scenarios. Quantified

responses forming a ratio scale analytically are the most versatile.
Ratio scale possesses all the characteristics of an internal scale, and
the ratios are the numbers on these scales have meaningful
interpretations. Demographic data on a certain description attributes
if, they are obtained through open ended questions, will have ratio
scale properties.
Consider the following questions.

Q.1. What is your annual income before taxes? -----INR
Q.2. How far is Cineplex from your house? ----- KMS.
Answers to these questions have a natural, unambiguous starting

point, namely zero. Since starting point is not chosen arbitrarily,
computing and interpreting ratio makes a sense. For example we can
say that a respondent with an annual income of INR 50,000 earns
twice as much as one with annual income of INR 25,000.
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Self rating scale: A scale is any group of questions or items with a

common theme. An addictive scale(often called a “Likert scale”) is a
set of items where each person gets a score according to how many
questions he answers in a certain direction or in a certain way. The old
school spelling test (9 out of 19 spellings right means that you were a
good speller) is one example. Intelligence, personality and most
attitude scales are of this type. They are additive scales. In intelligence
scale the only possible scores on an item are 1 or 0 (i.e.,‘right’ or
‘wrong’). In attitude scale, it is customary to offer a range of responses
such that a person gets a higher score the more strongly he agrees. A
common scheme is to give:
5 = Strongly Agree
4 = Agree
3 = Not sure
2 = Disagree
1 = Strongly Disagree.
This number system assumes each possible answer spaced along an

equal interval on the continuum.
An important feature of such a scale is that it should consist of equal

proportion of oppositely scored items. Thus, a ‘Strongly Agree’
response on the following two items would get a number 5 in the first
case but number 1 in the second case.
1. All men are equal.
2. Inequality is nature’s law.
In adding up scores on several items it is assumed that all items

basically measure the same thing. Prove of this is needed in the form
of positive co relation between all the items. Infact what is done is that
average response of any person to an item is found out. We want to
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understand if on an average an individual agrees to the statement or

disagrees with them. We can always get such an average by dividing
the total score by number of items. The averaging effect is useful in
the process as it enables to randomize the variability in the individual
items. For examples in the following items an attitude to innovation is
expressed but using ‘innovation’ in different context.
1. I enjoy modern music better than ancient music.

2. Australia tie-up with Great Britain will not help much.
3. The best buildings are those whose architecture is functional
and unique.
4. Best place for woman is in the house.
It is known that answers to all these four answer inter-correlate

significantly and yet they talk about different things. The common
factor in all four statements is old v/s new. If we give one for strongly
agree response on items 1 and 3, and 5 for a response for 2 and 4 then
we are talking of being conservative. In this case one item alone
would not draw the scale. If we take item 4 then it will be affected by
subject’s gender. In item 3, answer might be affected by artistic test. In
item 2 it might be affected by one’s birth place. In case of item 1 it
might be affected by one’s test of music. Thus, by taking an average
we can minimize the effect and we can provide common treatment to
all items held.
Types of self rating scale:

1. Graphic rating scale.
2. Itemize rating scales. 
(a) Likert scale. 
(b) Semantic differential scale. 
(c) Stapel’s scale. 
(d) Multidimensional scale. 
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(e) Thursten’s scale. 

(f) Gutman’s scale/scalogram analysis. 
(g) Q Sort technique.
1. Graphic rating scale

The respondent’s rate the object by placing a mark at appropriate
position on a line that runs from one extreme of a criteria variable to
another
0 1 5 7
(Poor Quality) (Bad Quality) (Neither good nor bad) (Good quality)
This line is known as continuous rating scale. The customer can

occupy any position on scale. In this method we measure the physical
distance from the extreme left position to the response position on the
line; the greater the distance, more favorable attitude towards brand.
Limitation in this method is coding and analysis of data as this

requires substantial amount of time, since we first have to measure
the physical distances on the scale for each respondent.
2. Itemize rating scales

These scales are different from graphic rating scales. They have brief
descriptions associated with each category. They essentially take the
form of multiple category questions. These methods are widely used
in the marketing research.
(a) Likert scale

It was developed by a Rensis Likert. Here the respondents are asked
to express a degree of agreement with each of a series of statement.
Each scale item has 5 response categories ranging from strongly agree
to strongly disagree.
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5 4 3 2 1
(Strongly agree) (Agree) (Indifferent) (Disagree) (Strongly disagree)
-2 -1 0 1 2
Each statement is assigned in numerical score ranging from 1 to 5 and

it can be also scaled -2 to +2. For example if quality of Vadilal’s Ice
cream is poor quality then not good is a negative statement and
strongly agree with this means quality’s not good.
Each degree of agreement is assigned in a numerical score and the

total score of all the respondents is computed by summing-up this
score. This total score of respondents is a specific opinion about a
particular brand.
Likert scale is of ordinal type, which enables one to rank attitudes, but
it does not measure difference between attitudes. While designing a
good Likert scale first a large pool of statements relevant to the
measurement of the attitude has to be generated then removing vague
and non discriminating statements uniform scale is built for
computation. Thus Likert scale is a 5 point scale ranging from strong
agreement to strong disagreement. This method has no judgment
gaps. There fore this method is highly popular in marketing research.
(b) Semantic differential scale

This is a 7 point scale and end points of the scale are associated with
bi-polar labels. By-polar means two opposite streams. Individuals
can score between 1 to 7 or -3 to +3. The profiles are generated after
computing total responses. Two to three products can be analyzed
simultaneously and joining these profiles profile analysis can be
conducted.
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Mean and medium are used for the comparison. This scale helps to
determine overall similarities and overall differentials between objects
under study. In marketing research Symantec Differential Scale is
used to develop image profile, it provides a good basis for comparing
images of two or more items. The main advantage of this scale is it’s
simplicity and it is a less complex method compared to other
methods. The method is easy and fast to administer, but also
sensitive, versatile and reliable.
Suppose a personality of a person needs to be measured the options

given are
(a) Unpleasant/Submissive.
(b) Pleasant/Dominant.
Then semantic differential scale for the above example will look like:
1 2 3 4 5 6 7
Unpleasan
Pleasant
t
Dominan
Submissiv
t
e
(c) Stapel’s scale

It was developed by Jan Stapel. This scale has some distinctive
features.
(i) Each item has only one word, phrase indicating the dimension
it represents.
(ii) Each item has ten response categories.
(iii)Each item has even number of categories.
(iv)The response categories have numerical labels. For example in
the following items, to test quality of soft drink we ask
respondent to rank perceived quality of soft drink from +5 to -5
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and select words which describe the best according to

respondent.
+5
+4
+3
+2
+1
High quality
-1
-2
-3
-4
-5
This scale is known as unipolar rating scale.
(d) Multidimensional scale

It consists of a group of analytical techniques which are used to study
consumer attitude related to perceptions and preferences.
(i) The major attributes of a given class of products perceived by
the consumers in considering the product and by which they
compare the different ranks.
(ii) To study which brand competes directly with each other?
(iii)To find out whether consumers would like a new product with
a combination of new characteristics.
(iv)Ideal combination of product attributes perceived by the
consumer.
(v) Sales and advertising messages and captions may be liked by
consumers, brand perceptions.
This technique is based on integrated efforts of computer hardware

and software. The respondents are asked to create different groups of
brands based on very similar, like similar, not similar and so on. A
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lack of fit brand index is thus calculated by computer programs. The

purpose of this exercise is to identify small dimensions which will
eliminate the stress for the consumer. After the configuration for the
consumer’s preference has been developed the next step is to
determine the specific preference with respect to product under study.
These techniques attempt to identify the product attributes preferred
by the consumer considering their importance to consumer. A
researcher makes effort to measure this relative importance.
This scaling involves unrealistic assumptions that a consumer who

compares different brands would perceive the differences on the basis
of only one attribute. For example what are the attributes for joining
in to MBA program. The responses to this,
(a) To build career in management.
(b) To be a entrepreneur.
(c) To get into marketing research.
There are number of attributes to this, logically one can not base
decision on one attribute only. Therefore when consumers are
choosing between the brands, they base their decision on various
attribute. In practice the perception of the customer involves different
attributes and any one consumer perceive each brand as a composite
of different attributes. Multi dimensional scaling techniques are most
effective whenever we choose from number of alternatives. Such
scaling is widely used in research area such as market segmentation,
product life cycle, advertising selection and vendor evaluation.
The limitation of this scale is it is difficult to pin point the concepts of

similarities and preferences.
(e) Thursten’s scale
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These are also known as equal interval scales. They are generally used
to measure the attitude towards a given concept. For this purpose a
large data in the form of statement is collected which relates to the
concept being measured. The scaling is done along as eleven category
scale in which each category expresses different degree of
favorableness towards the concept. The items are then ranked
according to mean ratings assigned by the researchers and are used to
design a questionnaire. The statements use such wordings that a
person can either agree or disagree with them. The scale is then
administered to different respondents whose scores are computed. A
respondent who disagrees to all the items has a zero score. Thus the
advantage of this scale is it is a interval measurement scale. However,
this is a very time consuming and labour intensive method. They are
commonly used as consumer psychology research and tanning
programs etc.
(f) Gutman’s scale/scalogram analysis

It is based on the idea that items can be arranged along the continuum
in such a manner that a person who agrees with a item or finds a item
acceptable will also agree with or find acceptable all other items
expressing a less extreme position. In this scale, each scale represents
a unique set of responses and total score of every individual is
obtained. This scale takes a lot of time and effort for development.
These scales are commonly used in political science, public opinion,

psychology and research. For example the popular research which
was conducted for advertising in which the subject was whether
children should be part of soft drink promotion ad campaign.
(g) Q-Sort technique

This technique is called discriminative techniques. It is used to
discriminate an object amongst a large group of objects quickly. This
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uses rank order procedures and objects are sorted out on the basis of
similarity and other acceptable criteria. The range of number of
objects to be sorted should be between 50 to 150 approximately to
obtain the best results. For example, if we are considering 8 different
brands of tomato sauce. It can be done on the basis of taste. We can
classify such brands in to tasty, moderate and non tasty. Similarly we
can also classify them based on the price such as low, medium, high.
Then, we can use perception of the people whether they prefer low
price brands, moderate or high. As a result we are classifying number
of objects to be placed in three categories, low, medium or high. Thus,
the Q-Sort technique attempts to classify different objects in terms of
their similarity to attribute under study.
Limitations of attitude measurement:

There are certain limitations to attitude measurement.
• There inability to predict the consumer behavior in future, in
research there is no way to know whether the attitude of the
consumer shall remain the same in the future. They tend to over
look the immediate environment of the consumers who are greatly
influenced and motivated by external factors and environment.
• The relationship between attitude and buying behavior still
remains unexplainable. Liking a product and buying it although
they are connected, however they are still independent issues.
9.5 Observation method of data collection

Wide range of research techniques are used in observing consumer
interaction naturally with their surrounding products and services. A
core advantage of observational research is that often the consumer is
unaware that they are being observed allowing their behavior to be
observed naturally.
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Interviews, intercepts, surveys and focus groups generally produce a

reported data which may be subjected to many sources of errors,
memory shortfalls, unconscious motivations of the respondents.
Direct observations can reduce much of these errors by relying purely
on observed consumer behavior rather than reported data. A classic
example of such keen observation is video recording of consumers in
Shopper’s Stops using advance cameras. The mall management has a
special observation teams where in a structured check list is followed
to record the behaviors such as the rounds that consumer takes,
attention to point of sales, promotions, tracking of eye movements etc.
Popular forms of observational research includes the mystery

shopping to test quality of the consumer experience or quality of
customer service. Only creativity limits types of observational
techniques that can be used to better understand consumer behavior
in certain products or service. When the focus is on actual behavior
than perception observational techniques are really proven to their
reliable performance.
Participant observation: It is one of the common methods for

qualitative data collection. It requires that the researcher becomes a
participant in the experiment. The rile of the researcher as a
participant is observation, making field notes and analyze the field
data. Participant observation often takes several months of intensive
work because the researcher needs to be naturally adapted to the
culture and environment.
Direct observation: In direct observation method direct observer is not

a participant but he is in the process in an unobstructive manner
(observing from the distance). An observer does not interact with the
consumer in any manner so as to inject the bias. The direct
observation is always based on detached perspective. In this method
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technology plays a very useful part for example video recording,

watching through mirrors etc. In this method researcher is completely
focused on direct observations and making notes of natural
responses.
9.6 Web-Based Primary Data Collection

With rapid usage of Internet throughout the world in 1990s and at the
same time increased difficulty of conducting marketing research,
increased cost of conventional research methods many companies
begin to adopt the internet as preferred platform for conducting
marketing research.
In 21st century, most of the people across the world have an access to
the Internet either at home, work, school etc. because of the advent
and wide spread adoption of Internet technology researchers are
becoming more comfortable with it as a platform for online service,
cracking research, focus groups etc.
Internet data collection: Data collection is an elementary step in

marketing research. Sample data collected through the various means
provides valuable information for analyzing behaviors of consumers,
recent trends, potential markets. Traditional methods of data
collection include surveys, interviews, mail questionnaires.
The growth of Internet has revolutionized most of the businesses. It

has also impacted marketing research. Use of Internet has made it
possible for the researcher in getting information in a cheaper, easier
and quicker way than ever before. Sometimes, Internet also allows
gathering of more detailed information than traditional surveys.
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Internet surveys can be done in many different ways. Some of the

common forms of marketing research through Internet surveys are
discussed as below.
1. e-Mail surveys: The e-mail survey is the most basic online search.
e-Mail surveys are very much similar to conventional surveys,
except the questionnaire is sent to the respondent electronically
that is by e-mail. Since the e-mail is sent at once, the respondent
gets sufficient time to think about and response. In other time lost
in transit is completely eliminated. In fact it is very simple and
also no additional tools or software’s are required for the survey. It
is the least expensive method and still the most efficient method.
According to (Macelory,1999), the ideal use for e-mails is for the
internal corporate surveys because the internal tend to follow
instructions better than the external respondents
2. Bulletin boards: Bulletin boards are useful for a Delphi method

(modified) - collecting responses over a time. In this similar to
focus groups, the researcher invites a group of respondents to a
particular website in a specific meeting room, where a topic under
discussions is posted. People can respond to the w\questions and
express their opinions based on comments received or in reply to
the comments. It is a relatively cheaper option but still little
costlier over emails, since the cost of handling the transcripts and
codes is higher and it is also time consuming The 2 biggest
advantages of this system are rapid actions and rich data is
obtained during the discussions.
3. Web HTML: The HTML form-based surveys allow the respondent

to click buttons and boxes, to fill the text boxes and eventually to
submit the informat5ion all at once. The colorful designs such as
graphics, audio-visuals and animations make the survey very
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interesting. In today’s world online surveys are very common and

almost accounting for about 80% of all the surveys.
4. Computer-assisted telephonic interviews or Disk by mail: This is

a new form of online research. This is used as a online survey tool.
This technique allows the individual researcher to construct highly
sophisticated studies for the online environment However, these
tools limit the range options in which the surveys can be
displayed.. Some software’s may limit the questions to be
displayed on the web page, while others may limit the design
flexibility. The researcher has a choice between 2 alternatives.
Another disadvantage of this system is these tools usually cannot
allow controlling the research process.
5. Web customized interactive programming: This is the most

powerful and flexible tool off course this is an expensive tool. With
this researcher can have custom programmed online survey?
Custom programming not only provides all sorts of modern
technical controls such as screening, skip patterns, error checking,
etc., but also many other functions which offer highest level of
flexibility to the researcher. The core benefit of this technique is it
offers flexibility in layout. Unlike fixed form tools, this online
survey tool enables the researcher to flexibly choose many
different designs options such as questions/response styles. Back
rounds and graphics. In addition to this it provides facility such as
live running website for the survey frames., and running
procedures such as file downloads during the surveys(Mclelroy,
1999). However, compared to fixed form tools, custom designed
surveys take longer to programme and prove to be more costly.
6. Downloadable surveys: Another popular online survey method

which are downloaded from the Internet and run on the
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previously installed software by the researcher. This technique

shifts the task of computing from online server to the respondent’s
PC. Once the survey has been downloaded from the internet to the
respondent’s PC, a data file is created which can then be opened
the next time internet is accessed. Custom programmed surveys
can be used for single-use survey. This technique allows a
researcher to have maximum control and flexibitly over all
research techniques. This type of a online survey, assumes that the
respondents have adequate knowledge of computers to install
software correctly and handle the data upload process. The online
research is more costly and time consuming compared to other
forms. This technique is also often used with panels or groups
who regularly communicate with the survey organizers.
7. Web moderated interviews: This is a qualitative form of online

research for example, chat rooms in real time. Sometimes this is
also referred as online focus group, However, there are some
distinctions such as, people in traditional focus groups are
influenced by moderator but in chat rooms control is with people
who have logic and mechanism. The online moderators must
control speedy typists and control the chat rooms. In this method
the biggest advantage is that people from various geographical
can be brought quickly and efficiently together to participate in
the discussion.
8. Data Mining: Data mining is very close to online data collection:

Internet data collection has increased demand for data mining
tools. Data mining can be defined as a class of data base
applications which look for hidden patterns in a group of data
which can be used for predicting future behavior. For example,
data mining software can help retail companies to find customers
with common internet. Data mining software doesn’t only
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presents the data but it also helps to discover relationships

amongst the data. It is very popular in science and mathematics,
however, in the field of marketing it is used for getting useful
information from the websites.
In the recent years data mining is getting a special importance in

marketing research. This due to consumer-centric marketing. The goal
of today’s marketing efforts is to understand the consumer needs in
the best manner. Usually companies are interested in generating the
data such as buying patterns, demographic data, psychological
trends, etc. Entire data generated must be kept as an organized data-
base and this is what exactly achieved by data mining applications.
This detailed information can be used in variety of patterns and used

for different analysis purposes. In the whole process the data keeps on
accumulating and getting stored in a structured manner, this data is
compared with fresh data coming every time and the comparative
data is used by company marketing to create appropriate marketing
plans and helps to focus on targeted customers.
Data mining has a facility of filters and validation which

automatically removes invalid and bogus data from the base. These
provisions are built in the software itself, as a result the erroneous
data doesn’t reach marketing.
Summary of the web-based primary data collection:

• No Interviewers.
• Survey is conducted over Internet.
• This method often supplements other methods for data collection.
• Quick Feedback.
• Technological advantages are improving online survey methods.
• Web-based observation techniques are developed.
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• Considered ethical with user permission.

• Cookies and their use do not hide from users.
9.7 Summary
Primary data is a data observed or collected directly from respondent
(first hand experience).
In primary data collection the investigator collects information by

using techniques such as interviews and questionnaires. The core
issue in the primary data is the data collected is unique to you and
your research and until it is published no one has access to it. There
are several methods for primary data collection.
(a) Questionnaire, (b) Interviews, (c) Observation, (d) Case study, (e)
Diaries
Questionnaire Design: Questionnaires are economical ways to gather

information in a structured format from potentially large number of
respondents. Often that’s the only feasible way to reach large number
of respondents needed for statistical analysis and drawing of results.
A well designed questionnaire if it is used effectively can gather
valuable information on both the overall performance of the testing
system and specific components of the system. The questionnaire
which includes the demographic questions of the participants can be
used to correlate performance and satisfaction with a test system
amongst different group of users.
While writing the questionnaire, it is important to understand what

questions are to be framed to obtain the meaningful data.
There are two methods of questions: (a) Open ended questions (b)
Close ended questions
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Following are the steps required to design and administer a

questionnaire:
Defining objective of a survey (b) writing a questionnaire (c)
administering the questionnaire (d) Interpretation of the results
(a) Open-ended questions: These questions are elaborative questions

or also called descriptive information questions. In this there are
no predetermined responses. Respondent is suppose to answer in
own words.
(b) Closed-ended questions: These types of questions usually are

taken in the form of multiple choice questions. There is no clear
answer to, how many options really should be offered to the close
ended questions? The standard method is to provide sufficient
alternatives. Usually these questions have 3-5 options. For
questions that measures a single variable or opinion odd number
of alternatives should be offered like 3 or 5.
Attitude measurement: Attitude is a resultant of number of external

and internal factors. Gene F Summers defines ‘attitude as a
predisposition to respond to a idea or a object’. This refers to the
consumer’s predisposition about the product or the service. If it is
favorable then the consumer is likely to purchase to product or
service. Attitudes about product or services mainly comprise three
elements,
(1) Beliefs (product strength, economy of the product) (2) Likes and
Dislikes. (3) Readiness to buy the product.
The above three elements together create an image of the product in

the mind of the consumer. Attitude measurement is commonly
known as scaling.
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PRIMARY DATA
Attitudes are person’s general evaluation. May of the questions in

marketing research surveys are focused to measure attitude.
Customer attitude is an important factor for the following reasons,
Attitude helps to explain the willingness, Attitude, do not change

much over period of time, Attitudes are integral part of consistency of
the behavior, Attitudes are directly related to the preferences,
Observation method of data collection: Wide-range of research

techniques are used in observing consumer interaction naturally with
their surrounding products and services. A core advantage of
observational research is that often the consumer is unaware that they
are being observed allowing their behavior to be observed naturally.
Interviews, intercepts, surveys and focus groups generally produce a

reported data which may be subjected to many sources of errors,
memory shortfalls, and unconscious motivations of the respondents.
Direct observations can reduce much of these errors by relying purely
on observed consumer behavior rather than reported data. A classic
example of such keen observation is video recording of consumers in
Shopper’s Stops using advance cameras. The mall management has a
special observation teams where in a structured check list is followed
to record the behaviors such as the rounds that consumer takes,
attention to point of sales, promotions, tracking of eye movements,
etc.
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PRIMARY DATA

1. The data which is directly collected from first-hand experience or
by observations is known as _____________. 
(a) Secondary data  
(b) Primary data  
(c) Database
2. Which amongst the below mentioned is a popular technique to

collect a primary data _____________. 
(a) Questionnaire  
(b) Eye tracking  
(c) Observations
3. The main purpose of questionnaire is _____________. 

(a) Obtain full information of client  
(b) Obtain complete personal detail of respondent  
(c) Meaningful information to the research
4. Following types of questions are used to obtain subjective data

_____________. 
(a) Open-ended questions  
(b) Closed-ended questions  
(c) Casual questions
5. An attitude can be defined as _____________ to respond to an idea

or an object. 
(a) Behavior  
(b) Physiological reaction  
(c) Predisposition
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6. Scaling is a measure of _____________. 

(a) Observations  
(b) Performance  
(c) Attitude
7. One of the following is not true _____________. 

(a) Attitudes can be related to performances 
(b) Attitudes helps to explain how ready one is to do something 
(c) Attitudes change over a time

(a) Collect the primary data during the visit to shopping mall for
Cadbury Silk (taste opinion).
(b) Prepare a questionnaire for observation method data collection in
children garment section.
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
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SAMPLING
Chapter 10 - Sampling
Objectives
Sample is a part of a whole or rest. Sampling helps in determining the

corresponding value of the population and plays a vital role in
marketing.
After studying this chapter, students will be able to understand

• the role of sampling in the research
• various scientific methods of sampling.
• benefits of sampling
Structure:
10.1 Introduction to Sampling

10.2 Defining the Population
10.3 Determination of the Sample Size
10.4 Sampling Methods
10.5 Probability Sampling
10.6 Non-probability
10.7 Sample Size Calculation
10.8 Sampling Errors
10.9 Types of Non Sampling Errors
10.10 Advantages of Sampling
10.11 Disadvantages of Sampling
10.12 Characteristics of Good Sample Design
10.13 Summary
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SAMPLING
10.1 Introduction to Sampling

Sample: Sample is a “part of the whole to show what the rest is like”.
Sampling helps to determine the corresponding value of the

population and plays vital role in marketing research.. Sampling
offers many benefits It saves cost and time since it is less expensive
and less time consuming for study than the entire population study. A
population is a group of individuals, persons, objects or items from
which samples are taken for measurement.
Definition: A ‘sample’ is a finite part of the statistical population

whose properties are studied to gain information about the whole.
When dealing with people, it can be defined as a set of respondents

(people) selected from large population for the purpose of survey.
Definition of Sampling: Sampling is the act, process or technique of

selecting a suitable sample or a representative part of a population for
the purpose of determining parameters of the whole population.
Sampling is done carefully by experienced and qualified

professionals, Therfore the results based on sampling are accurate.
The subjects which are of the nature, i.e., they would destroy after one
single test in that case appropriate sampling is a must to get results
and this is the only way to test such items.
The sampling process involves:

• Defining the population.
• Developing a sample frame.
• Determining sample size.
• Specifying sampling methods
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SAMPLING
The purpose of sampling is to draw conclusions about the

populations from samples. The researcher must use statistical
methods to determine the characteristics of the population by directly
observing a portion of the population.
Sample design: A sample design is a process of forming a sample

structure and developing a plan for analysis and interpretation.
Sample design can be simple or complex depending upon the type of
information and the selection methods used.
Sample design affects the size of the sample and the way in which the
analysis is carried out.
The more accurate information required calls for more complex

design and larger sample size.
The sample design may make use of features of overall population; it

is not a proportional representative, depending upon the necessity a
larger sample could also be drawn.
For example: Selection of a ‘kunabi’ minority population a large

portion of population will be required to be studied.
Many sample designs are built by random selection process. This

justifies the presumption of the sample from the population. Random
selection also helps to guard against sample bias.
10.2 Defining the population

The first step in a good sample design is to understand the population
under study. It is necessary to ensure the clear specifications and clear
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instruction about the population. In addition to this all the elements

of the population must be represented.
The target population is sampled using the sample frame. The units in
the population can be represented by existing information such as:
company list, government registers, payrolls etc. A sampling frame
could also be geographical. One can make use of postal codes for
sample frame.
10.3 Determination of the sample size

In Sample design, sample size is a key factor. One cannot estimate the
exact or precise sample size. Any assumptions about the over all
population based upon the results of sample will have an attached
margin of error.
The amount of variability in the population (the range of different

values or opinions) will also affect the accuracy and the size of the
sample.
Larger is the size of the population, lower portion of the population is

to be used for representation. In fact, it is only when sample size is
above 5 % then formula is required to be applied to calculate the
proper sample size sample size.
How large must be the sample size is always a difficult question.

Sample size depends upon various constraints to the projects. We
know that there is a budget for every project and by thumb rule 50%
amount is spent on data collection and 50% is spent on analysis. This
cost constraint influences the sample size as well as over all design
and data collection process.
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10.4 Sampling methods

Factors influencing the sample size:
1. Specific situation in which the sampling is carried out.
2. Expected level of accuracy and precision.
3. Scope and limitation of research.
4. Time utilized for conducting the research.
5. Features of the population
The researcher can arrive at a decision of correct sample size after

considering the merits and demerits of the population under study.
It is a universal fact that in a single survey it is not possible to cover

the entire population. However the results from the survey carried
out with selected sample from the population are useful for drawing
conclusions.
Sampling is a very important part of the marketing research process.

If a survey is carried out by using an appropriate sampling technique,
then one can assure the accuracy of the generalization to the
population.
Sampling methods: In most surveys, access to the entire population is

almost impossible; however the results from a survey with a carefully
selected sample will reflect extremely closer that would have obtained
from the population.
Sampling is therefore a very important part of the marketing research

process. If a survey has been done by using a proper technique then
one can be sure about the results of the generalization. If there is a
bias in the chance for selection then definitely the results would lead
to inaccuracy.
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SAMPLING
Different types of popular sampling methods are listed as below:

Sampling
Definition Use Limitation
method
Units in the population can be
often found in certain
geographic groups. For Quick and easy;
example: To identify the does not require
Expensive method if
potential customers in a complete
Cluster clusters are large,
company transport, Staff population
sampling Scope for sampling
coming from various places in a information; good
error
city are examined by taking for open
random sample of clusters is interviews.
taken and then all units within
the clusters were examined
Cannot be
extrapolated from
Large amount of the sample to
Convenience It is made for those who are
information can be conclude about the
sampling willing to volunteer
collected quickly population, Chance
of a bias from the
volunteer.
Simple to design For accurate results
This ensures that every and interpret; It it needs a complete
Simple
member from the population can calculate the and accurate
random
has an equal chance of estimation of the population listing;
sampling
selection. sample and however, it may not
sampling error. be practical.
In this it is
relatively easier to
After randomly selecting
extract the sample
starting point from the
than simple This method is costly
Systematic population, between 1 and
random sampling; and also time
sampling ÒnÓ, every nth unit is selected,
It ensures that consuming
where n is equal to population
sample is well
size /sample size.
spread across the
population.
Not random, hence,
To obtain a sample that is still some risk of
'representative' of the overall Quick and easy bias; need to
Quota
population; the population is way of obtaining a understand the
sampling
divided (Stratified) by the most sample population to be able
important variables to identify the basis
of stratification.
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SAMPLING
This method is
This method is highly
effective for
A deliberate choice of a prone to bias;
Judgement providing
sample-(Exactly opposite of samples are often
Sampling illustrative
simple random sampling) small and cannot be
samples or case
extrapolated
studies
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SAMPLING
In marketing research the two essentially most popular methods of

sampling are as below.
1. Probability sampling.
2. Non-Probability sampling.
Features can be compared as below:

Probability sampling Nonprobability sampling
Random sampling Purposive sampling
Systematic sampling Quota sampling
Stratified sampling Simulated sampling
Area sampling Multi segment sampling
Multi stage sampling
10.5 Probability sampling

Probability sampling method is also known as simple random
sampling method. It gives all members of the population an equal
chance of being selected for getting included in the sample and this
does not depends upon the previous events in the selection process.
The selection of an individual does not affect the chance of anyone

else in the population from being selected.
Different types of probability sampling techniques are as below:
Simple random sampling: A simple random sampling sample is

obtained by choosing elementary units in such a way that each unit in
the population has an equal chance of being selected. A simple
random sampling is free from sampling bias. However, using a
random table to choose elementary units is a complex process.
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SAMPLING
Stematic random sampling: If the sample is to be collected by a

person who is not trained in activity, then instruction may be
misinterpreted or selection may happen in improper manner. In such
cases instead of random selection data collection may be simplified as
“selecting a sample every 10th unit or 5oth unit or 100th unit”, after
choosing the first unit randomly. Such a procedure is called a
systematic random sampling.
A systematic random sample can be obtained by selecting one unit on

a random basis and choosing additional elementary units at evenly
spaced intervals until the desired number of units is obtained.
For example, in a class of 100 students you want a sample of 20

students and the names of the students are listed in an alphabetical
order. If we want to use systematic random sampling method for
choosing then, dividing 100 by 20 we get 5 and randomly selecting
any number between 1 to 5 say student number 4 has been selected,
from there we will select every 5th name until we reach last name
from the list. In this way we will obtain the sample of 20 selected
numbers of students.
Stratified sampling: A stratified sample is obtained by independently

selecting a separate simple random sample from each population
stratum(section). A population can be divided into different groups
may be based on their income group or some characteristics etc. For
example. Undergraduate in a group A, Graduate in group B.
Postgraduate in group C etc. These specific groups are referred as a
stratum. One can now randomly select from each stratum a given
number of units based on the proportion. For example we can select
25% from group A 10% from group B and 50% from Group C etc.
Stratification increases the precision without increasing the sample
size. Stratification does not imply any departure from the principal of
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SAMPLING
randomness. It merely denotes that before any selection takes place,

the population is first divided into strata, and then samples are taken
from each stratum randomly. It will be possible to do this only if the
distribution of the population with respect to a specific factor is
known and also as regards to which stratum each member of the
population belongs. For example, in marketing the characteristics
which could be used to stratify the population include: Income, Age,
Gender, Race etc.
Stratification occurs only after selection of the individuals. For

example one wants to stratify sample of individuals in a town by age
then, one could easily get figures of the age distribution. N case there
is no general list available which has a data of age then prior
stratification would not be possible. In such cases proportionate data
should be uses at the stage of the analysis.
Random stratified sampling is a more precise and accurate method of

sampling.
Before stratified sampling designs to be employed below mentioned

key issues must be addressed.
(a) What characteristics are to be used to make subdivisions of the
data or population?
(b) How many strata’s are to be constructed? What is the boundary
of each stratum?
(c) How many observations are required to be taken in each
stratum?
Cluster sample: A cluster sample is obtained by selecting clusters

from the population on the basis of the simple random sampling. The
sample comprises of census of each random cluster selected. For
example a cluster may be a state, village or a school. One may decide
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SAMPLING
to select all elementary schools within the state as a cluster. If you

want to choose 20 elementary schools from Maharashtra. You can use
simple random sampling to select a school, and then every
elementary school selected becomes a part of the cluster. One can
follow the research programme then like interviewing the teachers in
the cluster etc.
Area sample: In this particular method, entire market is divided into

various geographical areas and there after a predetermined stratum is
considered for deciding the elements of sampling.
This method is more popular in Industrial marketing research.

Sometimes it is also used in consumer marketing research where
study for consumption pattern of a specific product is required to be
undertaken.
For example in a typical nationwide survey the area sampling

methodology will divide the nation into metro cities, cities, villages
based on geographical areas. Each of these areas will be further
divided into districts wise stratum.
Multi stage sampling: This is carried out in different stages or phases

and the results of each stage are integrated at the end. Whenever
sampling methodology may consume a lot of time, in such cases
multistage sampling is adopted.
For example, if a survey is to be undertaken at a national level,

sampling and surveying can be conducted in various stages in
different metro cities and at the end of the survey the results of
different sampling can be integrated.
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SAMPLING
10.6 Non-probability sampling

Non-probability sampling procedures are less popular, as they will
contain sampling biases; however in some circumstances such
methods are unavoidable.
In marketing research the most frequently opted method for non

probability sampling is quota sampling. This method is somewhat
similar to cluster sampling. In cluster sampling the key subgroups are
defined, the main difference is that, in quotas the subgroups are set
beforehand usually in proportion to match the population
distribution
For example: in age wise distribution (30% of 18-25 years old, 25% 26
to 38 years old, 20% of 39 to 55 years old) etc. Interviewers then select
the respondents based on the set criterion. The nature of select is such
that only about a proportion of population has a chance of getting
selected in a typical quota sampling method.
The importance of the sampling should not be underestimated, as it

helps to determine to whom the results of your research will be
applicable. It is important to consider appropriate sampling strategy.
Most importantly can you adopt simple random sampling. If you
have no chance of using any random sampling method then should
you be using non-random sampling method?
Non-probability sampling method is more qualitative as compared to

probability sampling method.
Purposive sampling: In this method the sampling elements are

selected on the basis of controllable features that are proportionate to
the total number of cases with which such features appears in the
population.
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Purposive sampling method is used in both consumer and industrial

research. For example, In a market survey of two wheelers’ spark
plug problems linked with TVS brand. If five types of two wheelers
are identified and a sample size of 100 customers is under
consideration, the percentage of selection of sample elements should
be proportionate with the spark plug problem. In other words, if one
particular type of two wheeler has a greater occurrence of problem
with its plug as compared to others, then its sampling element should
be considered proportionately bigger. Therefore total 1000 customers
were to be considered, the sample element of each type should be
proportional to number of problems occurring in their two wheelers
as given below. This how customers with the type of two wheelers
having more severe problems will receive more weightage
proportionately
(a) TVS- Bike 250

(b) TVS- Vego 350
(c) TVS- Scooty 50
(d) TVS-Champ 150
---------------------------
1000
Quota sampling: This is a method of stratified sampling in which a

selection within the strata is non random Selection is left at the
discretion of the interviewer. For example in continuation with the
previous example, we can have two wheelers that are of five years old
as a quota or the basis for selection of sample size, then the survey can
be titled as ‘ Market survey’ to identify the two wheeler spark plug
problem for TVS two wheelers which are five years old.
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SAMPLING
Limitations of quota sampling

1. It is not possible to estimate sampling errors with quota sampling
because of the absence of randomness.
2. The interviewer may fail to secure a representative sample of
respondents in a quota sampling. For example “Those above the
age of 55 are spread over all the age range or cluster around 55
and 56.
3. Social class controls leave a lot to the interviewer’s judgment.
4. Strict control of the field work is more difficult, i.e., have the
interviewer’s placed the respondents in a group where cases are
needed rather than in those which they belong.
Advantages of Quota sampling

1. Quota sampling is less costly. A quota interview on an average
costs less that half of random sampling interview.
2. It is easy to administer. The labour work from random selection
can be avoided also the problems of call backs and no contact can
be eliminated.
3. Quota sampling method is relatively quick as compared to
random sampling during the field work. For example to reduce
memory errors like to obtain the immediate public reaction from
any event, this method is the most suitable method.
4. Quota sampling is independent of sampling frames existence.
Multi phase sampling: In this method information is collected from

the original sample and again is collected from segments of the
original sample. This methodology is very popular in consumer and
industrial marketing research.
For example in survey for Gillette after shave lotion, the original
sample shall consider all males of a particular residential locality
(Called phase sampling) and the second sample (Second phase
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SAMPLING
sampling) shall consists of identification of user and non-user of

Gillette after shave.
Replicating sampling: This method is very useful when comparative

abbreviations are to be used from the same population. For example,
two distinct sales territories will be given to two different sales
personnel for testing and comparing of consumption pattern of Bru
Coffee.
10.7 sample size of Calculation

It is a very common question that how many elements should be
taken as sample? In general, the larger the sample size the more
closely the sample data will match that from the population. In
practice, however, the researcher needs to work out as to how many
responses will give sufficient precision at affordable cost.
The calculation of an appropriate sample size depends upon a

number of factors that are unique to each survey and it is up to the
researcher to make the decision regarding these factors.
The three most important factors:

• What is the budget for the research
• What is the level of accuracy required.
• How confident is the researcher in the results
The increase in accuracy and confidence will always need a larger

sample ad may overshoot the budget. Therefore a researcher always
needs to find the balance between the costs, accuracy and the
confidence level in the sample.
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There are two types of the figures the researcher wishes to estimate in
the marketing research project:
• Mean (mean income, mean height etc.)
• Proportion (percentage of the people)
There are different sample size calculation formulas for each:
★ For a mean calculation formula is: S = (z/e)2
Where
S = the sample size.
z = A number related to the degree of confidence a researcher wishes

to have in the result. 95% confidence is usually accepted figure.
e = The error a researcher is prepared to accept, measured as a

proportion of the standard deviation (accuracy).
The values of z would be 3.05 for 90% confidence, 1.96 for95%

confidences 2.78 for 90% confidence and 1.85 for 80% confidence.
For example imagine that we are estimating the mean income, and
wish to know what sample size to aim for in order to achieve 95%
confidence level in the results.
Assuming that we are prepared to accept the 10% error in the

population the standard deviation (previous research has shown that
in8000 the error of 10% is acceptable), then we would do the
following calculations.
s= (1.96/0.1)2
s= 384.15 equivalent to 385
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SAMPLING
In other words 385 no.s would be required to be sampled to meet the

criterion.
Since we interviewed the sample which is a part of the population

and not the whole population, We have to be prepared to be less
confident than 100% confident so as a result our confidence level is
95% based on the sample size. There is a chance of 5% of measure
outside the limit.
For a Proportion:
The formula for a proportion is different although we are doing the
same thing here.
s= z2 (p(1-p)) / e2
s = sample size
z = the number relating to degree of confidence,
p = an estimate of the proportion of people into the group of

interested population
e = The proportion of the error acceptable to the researcher.
In an example we are attempting to asses the percentage of voters

who will vote for the candidate ‘X’. We assume that we wish to be
99% confident of the result for that we assume z= 2.85 and that we
will allow for errors in the region of +/- 3% (0.03=e), However in
terms of an estimate of the proportion of the population who would
vote for candidate ‘p’, if a previous survey had been carried out, then
we would use the percentage from that survey as an estimate.
However this was the first survey then we would assume that
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SAMPLING
(p=0.05) 50% of the people would vote for candidate ’X’ and 50%
would not vote for him. By choosing 50% as a sample size we would
have a conservative estimate.
In the above example:
s= 2.852 (0.5x0.5)/(0.03)2 = 1,849
This large sample was necessary because we wanted to be 995 sure of

the desired results @ (+/-3% error). It shows that we need to
interview between 1800 to 2000 people.
10.8 Sampling errors

Sampling error comprises the difference between the sample and the
population. In particular it happens due to solely some units getting
selected.
Sampling error makes the sample unrepresentative of its population.
A sampling error is the error caused by observing a sample instead

the whole population. An estimate of a quantity of interest, such as an
average or percentage will generally be subjected to the sampling
error, This happens due to variation from sample to sample. These
variations in the statistical values can theoretically be represented by
sampling errors.. Sampling errors also refers to the random sampling
variations.
The likely size of the sampling error can be controlled by taking a

sufficiently large sample from the population. If the observations are
collected from the random sampling then statistical theory provides
probabilistic estimates of the likely size of the sampling error for a
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SAMPLING
particular estimator. These errors are often expressed as standard

errors.
To reduce the sampling error often requires the increased expenditure

of resources and also the reliability factor required to be monitored.
Of the types of two statistical errors, only sampling errors can be
controlled by exercising care in determining the method of choosing
the sample. The sampling error can be caused by a bias, or by a
chance The chance component (random error) exists no matter how
selection procedures are carefully implemented.
There are two kinds of errors.

1. Sampling error
2. Non-sampling error
There is no research without an error. Errors are never committed

deliberately, but they result in spite of many efforts undertaken to
eliminate them.
Sampling errors occur because of

(a) selection of some units and non selection of some units from the
population.
(b) due to an error of bias or improper size of sample from the
population.
Sampling errors can definitely be controlled by unbiased and random

selection approach.
If probability sampling is used then it may not be completely possible

to eliminate the error but errors can be controlled to a great extent.
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SAMPLING
Adequately large sample size also reduces sampling errors

considerably.
For example, if the sample of 100 American men are measured and
found that all of them are above six feet. It is clear without statistical
proof that this would be highly unrepresentative sample leading to
invalid conclusions. It is obvious because average American male
height is 6 feet. So this becomes an obvious error, however it can be
corrected.
Let us consider wherein an average height is overstated by an inch or

two then it becomes an unobvious error. This becomes a matter of
concern from research perspective.
10.9 Types of Non-Sampling errors

The other main cause of unrepresentative samples is non- sampling
error. This type of error can occur where a sample is being used.
A non-sampling error is an error that results from the manner in

which the observations are made.
The simplest example of non-sampling error is in accurate

measurements caused due to malfunctioning of the instruments or
poor methods. For example, if individual human weights are required
to be measured then replies from the individuals and actually
measured on scale would be different. This will result because people
would have weighed themselves may be on some other scale and it
may not have been calibrated. Responses will not be comparable
unless the persons are weighed physically on a common scale and
under the same circumstances.
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SAMPLING
• A statistical error caused by human error to which a specific

statistical analysis is exposed. These errors can include errors such
as data entry errors, biased questions from questionnaires, biased
processing, biased decision making, in appropriate analysis, false
information provided by the respondents, etc.
• Non-sampling errors are part of total error which can arise during
statistical analysis. The remainder of the total error arises from the
sampling error. Unlike the sampling error increase in the size of the
sample from the population does not have effect on reducing the
error. It is virtually impossible to eliminate non-sampling error
completely
Non sampling errors are caused by

(a) The researcher himself
(b) Data entry operator
(c) Analyst (while analyzing the data)
Total error:
Total error = sampling error + non sampling error

TE = SE + NSE
Sampling error can be certainly estimated, in respect of probability

samples, but not in respect of non-probability samples.
Non-probability sampling errors can be controlled by adopting
following measures.
(a) Appointment of competent and efficient interviewers and data
entry operators.
(b) Designing a good and sturdy control systems during the research
project
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SAMPLING
The estimation of the total error in the research project is very

difficult, however the proportionate and percentage of sampling
error can be obtained. Sampling error can be reduced by increasing
the sample size. Bigger size of sample also increases the cost of the
project. It is always advisable to optimize the total error by optimizing
the sample size and not by increasing the sample size
Types of non-sampling errors

1. Incorrect definition of the research problem: If the research
problem itself is not defined properly then it will lead to non-
sampling error
For e.g., If a research study is pertaining to “small-scale industries”, In

such case the concepts associated to research must be made very clear.
(a) What are the criteria for deciding a small-scale industry?
(b) What is the reference period?
(c) Which geographical area to be covered for the research study?
In case, there is no clarity about questions mentioned above then it

may lead to non-sampling errors.
2. Incorrect population: (a) If the population is not defined properly.

(b) If the population does not suit the objective of the research study.
For e.g., In a research study pertaining to welfare f teachers in an
institution, if the research study only considers the senior or junior
faculty then consideration of the population for the sample would go
wrong resulting into non-sampling error.
3. Defective sampling frame: The sampling frame means the list of

all units comprising the population from which a sample is to be
drawn. If a sampling frame it self is inaccurate or incomplete non-
sampling error is bound to occur.
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SAMPLING
For e.g., nowadays many surveys are conducted over telephone

(telecalling). In such surveys, the respondents with telephone facility
only can be contacted. Several people have disconnected their
landlines due to efficient mobile service, thus non inclusion of the
respondents without telephone line would make the sampling frame
defective.
4. Collection of surrogated information: When the information

received by the researcher is different than the information required
then it is called surrogated information. Such information is a
defective information and it does not help to resolve the research
problem.
For e.g., many times it is assumed that higher price paid will obtain
better quality of service,. In such cases the price taken represents the
quality, however, in reality higher price may not correspond to better
quality.
5. No response error: Practically it may not be possible to collect the

data from each and every respondent included in the sample. In such
cases no response error occurs. For e.g., in the field survey conducted
to obtain the consumption patterns of the respondents the no
response error may occur it there will be a substantial difference
between the consumption patterns of the respondents and non-
respondents.
6. Incorrect response error: If the information collected by the

researcher is incorrect then such error occurs. The researcher proceeds
with the assumption that the respondents would furnish true and fair
information to the best of their knowledge and belief, However, this
assumption may necessarily not hold good in case of some
respondents.
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SAMPLING
For e.g., some respondent may not give true information about their
income, social status of martial status. Even for a researcher to go to
the appropriate source for obtaining correct information becomes
virtually impossible.
7. Experimental error: In a research several times many experiments

are conducted by the researcher. The basic objective of an experiment
could be measurement of impact of one or more independent
variables a dependent variable. Here the researcher assumes all other
conditions to the experiments remains constant.
For e.g., the researcher intends to test the impact of a training

programme on sales executive. During training all the sales
executives are given the same lecture, same training materials and
literatures, still the output from one sale executive will vary from
another sales executive. This may not be only result of grasping or
reproducing the skills learnt during programme, but also prevailing
conditions of the market from each business territory of a sales
executive may vary.
Experimental errors occur from several sources like: History, pre

measurement effects, Interactive effect, selection bias, statistical
regressions, etc.
8. Defective design of a questionnaire error: If the design of a

questionnaire itself is defective, then as a consequence the data
collected would be misleading.
For e.g., if the question from the questionnaire is designed defectively

then respondent would convey a different data and would ultimately
generate a misleading data.
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SAMPLING
9. Interviewer errors: These errors occur because of the interviewers

influence on the respondent while conducting the interview and also
recording incorrectly the response.
Some interviewers dominate the respondents to respond in a typical

manner as a result a true assessment of the question is not achieved
and the purpose of research is defeated.
An interviewer is expected to obtain the information in a most

transparent manner and recording the information accurately.
10. Data processing errors: After collecting the data it needs to be

properly analyzed and interpreted for arriving at conclusions. These
stages are proceeded by a data-coding, data tabulation, data entry, etc.
A this stage error may occur such errors are referred as data
processing errors.
11. Data analysis error: Some times while analyzing the data, there
may be a mathematical error like summation or multiplication or
division etc. Sometimes it may be possible that an analyst may be
applying a wrong statistical for data analysis, such errors are known
as data analysis errors.
12. Data interpretation errors: The researcher at times in order to

support a specific course of action may purposefully misinterpret the
data. At other times such misinterpretation of the data may be
unknowingly or unintentionally also. These errors are known as data
interpretation errors.
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SAMPLING
10.10 Advantages of sampling

1. Economy in operations: Sampling is economical because of its
nature by itself as compared to census survey.
2. Speed in operations: As the total quantum of operations involved
in sampling is less, the results arrived are at a speed. For e.g.,
operations like implementation of field work, data analysis, data
interpretation, etc.
3. Economy in efforts: The efforts could be distributed in sampling
region wise and then reconciled for the results and even at times
the simultaneous activities are carried out. The economy can be
achieved on the whole efforts.
4. Collection of special information: The researcher collects the
information in detail and in-depth. Many times acquired
information is proven to be valuable for other projects also.
5. Quality in operations: These sampling surveys are not like census
surveys which are a long and complicated effort. They being fast
track and relatively small so can be focused well and draw a
qualitative outcome.
10.11 Disadvantages of sampling

1. Non individualistic approach: When the information is required
from each unit of the population such as; business establishment
information then sample survey cannot be used as a tool to obtain
such information, such information cannot be generalized and also
cannot be applied to other samples. In some opinion surveys each
individual may have different opinion so the sample cannot be
generalized. Here every opinion is important for consideration.  
 
For e.g., opinions from the legal authorities, about the new legal
frame work. Opinions from businessmen of different industries for
new government policies or rules etc.
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SAMPLING
2. Occurrence of sampling and non-sampling error: Sampling and

non-sampling errors cannot be completely avoided in a research,
however the researcher takes efforts of minimizing those in the
research
3. Impossibility of checking the omissions: Omissions of certain
units can be checked in census surveys however such omissions
cannot be checked in sample survey.
10.12 Characteristics of a good sample design

Prof. Kish has mentioned as below:
A good sample design requires judicious balancing of four broad
criteria:
(a) Goal orientation
(b) Measurability
(c) Practicality
(d) Economy
(a) Goal orientation:

A sample design should be:
1. Oriented to the research objectives.
2. Tailored to the survey design
3. Fitted to the survey conditions
4. The choice of population
5. The measurement
6. The procedure of choosing a sample.
(b) Measurability:
A sample design should enable the computation of valid estimates of
its sampling variability. Generally such variability is expressed in the
form of standard errors. But unlike non probability samples, this is
possible only in respect of probability.
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SAMPLING
(c) Practicality:
(i) Simplicity of design
(ii) Follow-ups in actual operations of the field work.
It is essential to have complete, correct, practical and clear

instructions to be given to the interviewers. Which eventually lead to
(i) Avoiding the mistakes in selection of the sample units

(ii) Uniformity in the final selection of the sample units on the field
as per the original sample design.
(d) Economy:
It means that the objective of the survey should be achieved with less
effort and less cost. In other words, for a given per unit cost, the
sample design should achieve maximum precision.
10.13 Summary
Definition of Sampling: Sampling is the act, process or technique of
selecting a suitable sample or a representative part of a population for
the purpose of determining parameters of the whole population.
Sampling helps to determine the corresponding value of the

population and plays vital role in marketing research. Sampling offers
many benefits It saves cost and time since it is less expensive and less
time consuming for study than the entire population study. A
population is a group of individuals, persons, objects or items from
which samples are taken for measurement.
Practical consideration in a sample size: There are some practical

considerations that must be kept in mind while determining the
sample size
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SAMPLING
(a) Sample accuracy: It refers to how close a random samples statistics

to a true population’s value it represents. It must be understood
that a sample size is not related to representativeness. It is related
to accuracy. The larger a probability sample is more accurate it
is( Because of less sampling error)
(b) Variable in population: While collecting the sample the issue how
to represent variability in the population would be a major task. It
can be assumed that there is a 50% probability of the sample in
one bracket or the other.
(c) Arriving at a amount of sampling error: This should be decided by

the researcher. Normally a 5% variation is acceptable. However, it
is always related to the level of precision required in decision.
Confidence level required: Normally the research project is expected

to be delivered at 95% confidence.
These are the different criteria; however researcher has to achieve a

balance between all the variables depending upon the requirements.
The fundamental objective of applying different criteria’s is to achieve
a good quality sample design. A researcher has to develop 2 to 3
different sample designs to start with and pick the appropriate one on
the basis of merits and demerits of each
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SAMPLING

1. Sampling helps in determining the _____________ value of the
population. 
(a) Precise value  
(b) Corresponding value  
(c) Complete value
2. The target population is sampled using a _____________. 

(a) Approximation  
(b) Discrete method  
(c) Sampling frame
3. Units in the population can be found in certain geographic area

_____________. 
(a) Convenience sampling  
(b) Quota sampling  
(c) Judgment sampling
4. A random sampling which gives all members equal chance of

getting selected _____________. 
(a) Purposive sampling  
(b) Replicated sampling  
(c) Probability sampling
5. A procedure in which a sample is obtained by independently

selecting a separate simple random sample from each population
stratum_____________. 
(a) Stratified sampling  
(b) Systematic sampling  
(c) Quota sampling
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SAMPLING
6. Which of the following procedure is non-sampling procedure? 

(a) Area sampling  
(b) Multi-stage sampling  
(c) Purposive sampling
7. The difference between sample and population during selection

process is known as _____________. 
(a) Population error  
(b) Sampling error  
(c) Non-sampling error

(a) Discuss in details sampling errors and non-sampling errors.
(b) Write short notes on
(i) Probability sampling
(ii) Non-probability sampling
(iii)Quota sampling
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SAMPLING
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
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DATA ANALYSIS
Chapter 11 - Data Analysis
Objectives
Data analysis is a process of gathering, modeling and transforming

the raw data into useful information
After studying this chapter student will be able to understand

understand
• steps in data analysis
• multiple facets of data analysis
• encompassing diverse techniques of data analysis
• how to convert raw data into a useful information for decision
making
Structure
11.1 Introduction
11.2 Univariate Analysis
11.3 Bivariate Analysis
11.4 Multivariate Analysis
11.5 Simple and Cross Tabulation
11.6 Factor Analysis
11.7 Analysis of Variance (ANOVA)
11.8 Summary
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DATA ANALYSIS
11.1 Introduction
data with the goal of highlighting the useful information, suggesting
conclusions, and supporting the decision making. Data analysis has
multiple approaches, encompassing diverse techniques in different
businesses, science and social science domains.
Data analysis is a critical exercise in analyzing the market. This step

involves a statistical processing after the first step of data collection is
over. Today analysis is carried out by using many advanced softwares
for processing.
Initial data analysis:
The initial data analysis uses description of the data to answer

following questions:
1. What is the quality of the data?
2. What is the quality of the measurements?
3. Is the implementation programme is in line with research design?
4. What are the characteristics of the data sample?
1. The quality of the data: The quality of the data can be assessed in
many ways. The distribution of the variables before data cleaning
is compared with the distribution of variables after data cleaning,
to check the unwanted effects on the data. Secondly data is
checked for missing observations, thirdly extreme observations in
the data are analyzed to check whether they disturb the
distribution.
2. The quality of the measurements: The quality of the
measurement is checked during the initial data analysis, basically
to check if the measuring tools are giving the right kind of
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DATA ANALYSIS
performance. One way to assess the quality of measurement is to

perform an analysis of homogeneity.
3. The implementation of the design: In many cases a check is
required to see whether the randomization procedure has worked.
This can be done by checking whether variables are equally
distributed across the groups. Other ways of checking the
implementations of the design are manipulation checking and the
analysis of no response and dropout.
4. Characteristics of the data sample: In this step, the findings of the
initial data analysis are documented and possible corrective
actions are taken, For instance when the distribution of a variable
is not normal then the data may be needed to be transformed,
further more the decision has to be made in handling the missing
data.
Data acquisition
Data acquisition is the sampling of the real world to generate data
that can be manipulated by a computer. Data acquisition begins with
the physical property of the object under investigation to be
measured. An effective data acquisition system can measure different
properties
For e.g.: The following data analysis situations can be visualized

depending upon the data.
Measurement level Statistical technique Format

Frequencies,
Nominal Tables
proportions
Ordinal Median, Mode, Range Tables
Preferences Ranking Rank
Mean, Standard
Interval-scale Tables
deviation
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DATA ANALYSIS
Three important steps in data analysis

(A)Univariate analysis: This is the first step in data analysis to
examine the distribution of each individual variable.
(B) Bivariate analysis: The second step in data analysis is to describe
the association between pairs of variables.
(C) Multivariate variables: This is the third step in data analysis to
make use of a statistical model called linear regression, to examine
the relationship between the multiple independent variables and
dependent variables. This is to gain insight into casual
relationship.
11.2 Univariate Analysis

The purpose of the Univariate analysis is concerned with the describe
the sample of respondents by providing information about their
answers on each variable. It can be conducted for al variables,
regardless the level of measurement. However, specific statistics
depends on the level of measurement.
Univariate analysis is concerned with the summarization of

individual variables in a given data set. Univariate analysis deals with
one variable at a time as compared with multivariate analysis which
deals with more than one variable at a time.
Univariate analysis explores each variable in a data set, separately. It

looks at the range values, as well as the central tendency of the values.
It describes the patterns of responses to the variable. It describes each
variable independently.
Important tools in Univariate analysis such as frequency distribution,

measures of central tendency, histogram, grouping, etc.
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DATA ANALYSIS
(i) Frequency distribution: This tool relates to the measuring of

frequency of occurrence of a particular response category. For
example: A survey having a sample of 500 ; will have 250 males
and 250 females, Thus the table showing 3 columns- gender/
frequency(25 each) / percentage(50% each) is a typical case of
Univariate analysis. Such an analysis helps the researcher to find
the differences between responses from the respondents.
(ii) Measures of central tendency: This involves three different tools

such as mean, mode, median. All the three are average measures.
Mean: Mean is the arithmetic average of the values received from the
respondents. For example, in a survey of 100 sample students the
mean value of the amount of time spent in library is 2hrs. To compute
parameters such as average miles per kilometers of a car mean should
be used.
Mode: Mode is the value occurring most of the time collected from
the data. This value may have been recorded from 30% of the total
sample size. For example: How much time do you spend in a garage
when your car is under repair In such open-ended questions one
should use mode than using mean.
Median: Median is used when one deals with a variable having

continual properties. For example: when we are dealing with average
age of the sample then median is always used instead of mean or
mode.
Grouping technique: This technique is used when the collected

values are too scattered.
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DATA ANALYSIS
For example: If one needs to draw conclusions on exercising habits of

individuals between age group 20-40 then it will be rather good idea
to make small groups like 21-25,26-30,31-35,and more than 35 years.
Histograms: Histograms are the visual aids used to represent

frequency distribution. Histogram is a group of vertical bars with
each representing a value. In the above mentioned example 4 brackets
will represent 1 bar. Histogram is very user-friendly and can be
understood quickly Histograms are used for interval scales while bar
charts represent continuous variables.
Elements of the Univariate analysis: There are two major elements

of the Univariate analysis
(i) Point estimation
(ii) Interval estimation
(i) Point estimation: The estimate of a population provided by the

single number is known as point estimation. In point estimation a
single statistic is used to provide an estimate of the population
parameter.. Ina point estimation, we find a statistic which may be
used or replace an unknown parameter of the population for all
practical purposes.
(ii) Interval estimation: There are situations where the point

estimation is not desirable and we are interested in finding such
limits with which is a known probability or to a known degree of
reliance, the value of the proportion parameter is expected to lie.
Such a process of estimation is called the interval estimation. Thus,
interval estimation is the range of values used in making
estimation of population parameter. The interval estimation of a
population parameter q is the estimation of the parameter q with
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DATA ANALYSIS
the help of the interval (t-s, t+s) where‘t’ is the sample statistics i.e.
t-s < qt+s.
How to analyze one single variable

1. Raw data: Raw data is a matrix with the variable names heading
the columns and information for each record displayed across rows.
Example: Raw data for a study of diabetes among the city from
Tarachand diabetes clinic.
Selection: (First 10 members)

Report Type of
Area name Severity level
no. diabetes
1 Deccan gymkhana Type A 3
2 Koregaon park Type C 4
3 Kondhwa Type B 1
4 Kondhwa Type A 2
5 Koregaon park Type A 4
6 Deccan gymkhana Type C 3
7 Koregaon park Type B 2
8 Deccan gymkhana Type B 4
9 Kondhwa Type C 3
10 Koregaon park Type A 2
*The Diabetes as one variable is tested against its types and severity in
various areas.
Frequency distribution: Obtaining the frequency distribution of the

data for the variable is done by identifying the lowest and highest
values of the variables, and then putting all the values of the variables
in order from the lowest to highest. Next step is to count the number
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DATA ANALYSIS
of each value of the variable. This is the count of frequency with

which each value occurs in the data set. For example: The variable
“Severity” and corresponding values
Severity level No. of cases with this severity
1 1
2 3
3 3
4 3
Total 10
Grouped data: It decides on whether the data should be converted

into different classes. Various classes can be created by making a
group based on severity.
Mild Between (1-2)

Moderate (3)
Critical (4)
Severity No. of cases

Mild 4
Moderate 3
Critical 3
Total 10
Percentage distribution: Frequencies can also be presented in the form

of percentage distribution
Severity Percentage of severity (%)
1 10
2 30
3 30
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DATA ANALYSIS
4 30
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DATA ANALYSIS
11.3 Bivariate analysis: Bivariate analysis is the simultaneous

analysis of two variables
It is usually undertaken to see if one variable is related to another. For
example: Study of a variable gender and its attitude towards male /
female equality.
Bivariate analysis is concerned with the relationship between pairs of

variables(X,Y) in a data set. The following data analysis situations can
be visualized depending upon the measurement levels and whether
there is any distinction between dependent and independent
variables.
Suppose a researcher wanted to find out if a gender was related to

attitudes towards equality between men and women and measured
each variable at a nominal level
Then the variables are:
Gender: Measured as a male or female.
Attitude: Measured as “in favour of” and “not in favour of”
To test the relationship between gender and attitude, a hypothesis can

be developed based on certain theories.
Formation of attitude is a process based on socialization which starts

at a early age and developed over the years.
In most of the societies males and females are socialized according to

different norms.
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DATA ANALYSIS
The female subculture generally favours positive attitude towards

gender equality, however male subculture stresses on maintaining
male superiority.
The theory of self interest suggests that females are socialized in ways
to acquire more favourable views towards gender equality, therefore,
we designate gender as the independent variable and attitude
towards gender equality as the dependent variable for the analysis.
On the basis, the following hypothesis can be established.
“Mature females have more favourable views towards gender

equality than mature males”
Now, this hypothesis will be tested by construction a two way

bivariate frequency distribution.
Obtaining the two way frequencies:
For this research, imagine that 200 adult men and 200 adult females
were asked whether they were in favour of or they were not in favour
for having the same rights as men. After obtaining the primary data
for all, we carry the Univariate analysis based on the frequency
distribution for each variable. The, we would be ready to proceed for
testing the elationship between two variables by looking at their joint
frequency distribution.
In the beginning we need following frequencies:
Females in favour of gender equality.
Females not in favour of gender equality.
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DATA ANALYSIS
Males in favour of gender equality.
Males not in favour of gender equality.
To find each of these frequencies we would separate respondents by

gender, By segregating all questionnaires for females /males. Next
step is we would further divide them into response wise data, on the
basis of in favour of gender equality/ not in favour of gender
equality, now with these frequencies we can find the percentages of
females and males who gave favourable and unfavourable responses.
The percentage of females who gave favourable responses is 130/200

= 65%
The percentage of females who gave unfavourable responses is

70/200 = 35%
The percentage of males who gave favourable responses is 84/200 =

42%
The percentage of males who gave unfavourable responses is

116/200 =58%
All percentage tables, including bivariate ones, are based on the

reading or comparing the differences among the percentages. In
reading a table, percentages for each combination of the independent
and dependent variables are compared. When differences among the
combination are about 15% to 20% or larger, then there are reasons to
conclude that the independent variables are associated with
dependent variables. In short, we conclude that there is a relationship
between the two variables.
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DATA ANALYSIS
Use of Bivariate analysis

Bivariate analysis is used to test the hypothesis of “association” and
causality is carried out. Association simply refers to the extent to
which it becomes easier to predict a value for the dependent variable
if a case‘s value on the independent variable is known.
Measures of association and statistical significance that are used vary
by the level of measurement of the variables analyzed.
Techniques of Bivariate analysis

(a) Chis-quare test
The chi-square test, written as, written as 2 test is a useful measure of
comparing experimentally obtained results with those expected
theoretically and based on hypothesis. It is used as a test static in
testing a hypothesis that provides a set of theoretical frequencies with
which observed frequencies are compared.
The measure of chi-square enables to find out the degree of

discrepancy between the observed frequencies and theoretical
frequencies. It helps to determine whether the discrepancy is occurred
due to error of sampling or error of chance.
The chi- square is not a parameter as its value is not derived from the
observations in a population. Hence, chi-square test is a non-
parametric test. The chi-square is not concerned with the population
distribution and its observation. The chi-square test was first used by
Carls Pearson. It is defined as below.
The value of the test-statistic is
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DATA ANALYSIS
Where
x2 = Pearson's cumulative test statistic, which asymptotically
approaches a x2 distribution.
O2 = an observed frequency;
E2 = an expected (theoretical) frequency, asserted by the null

hypothesis;
 
= the number of cells in the table.
(Taken from Wikipedia)
(b) Correlation
Correlation may be defined as the tendency of two groups or series of
items to vary together directly or inversely. When two phenomenons
are varying simultaneously in the same direction with the opposite
directions, and the variation in the one is caused by due to variation
in another, then the two phenomenons are said to be correlated.
Whenever there is a definite connection between the two or more
groups then there is said to be a correlation. If the two groups move in
the same direction, correlation is said to be direct. If the two groups
move in the opposite directions then they are said to be inversely
correlated.
(c) Rank correlation

This method of calculating the coefficient of correlation is developed
by spearman.
The calculations in this method are based on the order or the rank of
the items rather than on their actual values, as in the Pearsons
method. Hence the advantage of this method is that, it can be used
when actual values are not known.
351
DATA ANALYSIS
For example: If we need to find the correlation between the honesty

and wisdom of persons , here pearsons formula is not suitable but we
can give ranks to the persons honesty and wisdom and then use spear
mans correlation coefficient formula.
Spearman’s rank correlation coefficient is denoted by R and is given

by following formula:
!
Where:
D = Difference between the rank of each items.
N = The number of pairs of observations
Here, -1 ≤ R ≤ 1
R = 1 : There is a perfect positive correlation.
R = -1 : There is a perfect negative correlation.
R = 0 : There is no correlation.
Merits of rank correlation:

(i) Spearman’s coefficient is easy to understand and easy to calculate
as compared to pearsons coefficient.
(ii) This method can be applied even when the data is qualitative.
(iii)This the only method which can be used when only the order of
items is known and the actual values are not known
Demerits of rank correlation

(i) This method is less accurate than the Pearson’s method, as there is
a loss of information.
(ii) This method cannot be used when the data are grouped.
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DATA ANALYSIS
(iii)The calculation using this method is complex, when the number of

items is large. Thus, the method is not convenient for large
number of items
(d) Regression
Regression analysis is a method that gives a relation by which the
value of a dependent variable can be predicted or estimated.
When the two variables are known to be related, then the relation
between two variables can be established. One of the two variables is
a dependent variable and the other one is independent variable.
In this method one can also study the relation between a dependent
variable and a set of independent variables. Regression analysis is a
mathematical measure of the average relationship between two or
more variables. When only two variables are studied at a time,
independent variable as a predictor and a dependent variable as a
regressed variable. When the relationship between variables is
established and it is plotted: it is a curve. When the curve is a straight
line, then it is a linear regression. When the curve is not a straight line,
then the regression is nonlinear.
Line of regression: If the variables which are highly correlated as

plotted on a graph, then the points lie in a narrow strip. If the strip is
nearly straight, we can draw a straight line, such that the points are
close to it from both the sides. Such a line is called as a line of
variation. It is also called as a line of best fit.
Line of Regression of Y on X
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DATA ANALYSIS
If we minimize the deviations of the points from the line measured

along Y-axis, we get a line which is called the line of regression of Y
on X. Its equation is of the type:
Y = a + bX
From this equation, we can get the value of Y, if value of X is known.
Line of Regression of X on Y:
if we minimize the deviations of the points from the line measured

along X-axis, we get a line which is called the line of regression of X
on Y. Its equation is of the type:
X = a + bY
From this equation, we can get the value of X on Y is known.
Coefficient of Regression (Regression Coefficient):
of the line of regression of Y on X is given by,
!
!
!
The equation can be written as,
!  
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DATA ANALYSIS
Similarly, the equation of the line of regression of X on Y is
!
!
!
The constants bxy and byx and is the equations of the lines of
regressions are called regression coefficient. As there are two lines of
regression, there are two regressions co-efficient.
In the equation, !
Where !
Further !  
355
DATA ANALYSIS
Similarly, the regression coefficient of X on Y is the constant bxy of the

equation
!
Properties of the coefficient of regression:
!
i.e., coefficient of correlation is the geometric mean of the two
coefficients of regression.
(ii) The two coefficients of regression are equal if !
(iii) The two coefficients of regression have the same algebraic sign
i.e.,
356
DATA ANALYSIS
!
(vi) It is not independent of change of scale, i.e., if we change the scale
the coefficient of regression will also change.
11.4 Multivariate analysis

Multivariate analysis is the analysis of the simultaneous relationships
amongst more than 3 variables. In multivariate analysis, the focus
shifts from paired relationships to the simultaneous relationships.
Multi variant analysis was developed considering the advancement in
the computational capabilities of modern computers. However, these
techniques are not always unified in their presentations and selecting
the proper technique for the given problem is a complex decision.
MVA is based on the statistical principal, which involves observation

and analysis of more than one statistical variable at a time. In design
and analysis, the technique is used to perform trade studies across
multiple dimensions while taking in to account the effects of all
variables on the interest of the responses. Multivariate analysis can be
used for following purposes.
357
DATA ANALYSIS
Capability-based design.
• Inverse design, in which any variable can be treated as an
independent variable.
• Analysis of alternative, the selection of concepts to fulfill a
customer need.
• Analysis of concepts with changing scenarios.
• Identification of critical design and co-relation across hierarchical
levels.
Multivariate analysis is a complex process if the researcher’s desires

to include analysis for calculating the effects of variables of a
hierarchical systems. These concerns are often simplified through the
use of surrogate models. Since surrogate model takes the form of the
equation, they can be evaluated quickly. As a result it enables
researcher to perform a large-scale MVA studies.
Techniques of multivariate analysis:

(i) Multiple linear equations: The regression analysis for studding
more than two variables at a time is known as multiple linear
regression.
The multiple linear regression takes the following form:
!
Where, Y=dependent variable which is to be predicted
 
! and xk= ‘k’ known variables on which predictions are to be
based a, ! bk = parameters, the values of which are to be
determined by the methods of least squares.
(ii) Nonlinear regression: If the curve of the regression is not a

straight line, that it is a first degree equation in the variables of x and
y , then it is called nonlinear regression. In this case the, regression
equation will be a functional relation between the variables x and y
358
DATA ANALYSIS
involving the terms in xand y of the degree higher than one i.e.: x2,
x3, xy etc.
(iii) Discriminant analysis: A Discriminant analysis enables the

researcher to classify the persons or the objects into two or more
categories. For example the consumers may be classified as a
extensive or light users. This technique helps to predict the categories
or classes which are mutually exclusive and individuals are likely to
be included.
There are many different types of analysis models:

(a) Clustering system: This particular system assigns objects into
groups (called clusters) so that objects from the same cluster are
similar to each other that object from different clusters.
(b) T-square is a generalization of students statistics used for
multivariate hypothesis testing.
(c) Multivariate analysis of variance (MANOVA): This method
extends the method of analysis of variance to cover situations
where there are more than one dependent variables and where the
dependent variables cannot be combined.
(d) Discriminant function: This type of analysis attempts to establish
a set of variables which can be used to distinguish between two or
more groups.
(e) Regression analysis: This analysis attempts to determine the
linear equation that describes, how some variables respond to
changes in other variable.
(f) Principal component analysis: This analysis attempts to
determine a smaller variable which could elaborate the set.
(g) Redundancy analysis: This is a variant of principal component
analysis in which the variables are a linear combination of a set of
explaining variables.
359
DATA ANALYSIS
(h) Correspondence analysis: This also known as a reciprocal

averaging, this also attempts to determine a smaller set of artificial
variables that could explain the original set.
(i) Linear discriminant analysis (LDA): This analysis computes a
linear predictor from two sets normally distributed data to allow
for classification of new observations.
(j) Logistic regression: This allows regression analysis to estimate
and test the influence of covariates on binary response.
(k) Artificial neural networks: This method is an extension of non-
linear regression multivariate model.
(l) Multidimensional scaling: This analysis covers various
algorithms to determine a set of artificial variables that best
represent the pair-wise distances between data.
(m)Canonical correlation analysis: This method attempts to establish
the relationships between two sets of variables (covariate and
responses).
(n) Recursive partitioning: This creates a hierarchy of decisions that
strives to correctly classify members of the population based on a
dichotomous dependent variable.
11.5 Simple and cross tabulation

When the data are tabulated to one characteristic, it is said to be
simple tabulation or one-way tabulation.
For example: Tabulation of data on population of world classified by

one characteristic like religion is example of simple tabulation.
A cross tabulation (often abbreviated as cross tab) displays the joint

distribution of two or more variables. They are usually presented as a
contingency table in a matrix format. Whereas a frequency
distribution provides the distribution of one variable, a contingency
360
DATA ANALYSIS
table describes the distribution of two or more variables

simultaneously.
Cross tabs are frequently used because:

• They are easy to understand. They appeal to people who do not
want to use more sophisticated measures.
• They can be used with any level of data: nominal, ordinal,
interval, or ratio-cross tabs treat all data alike as if it is nominal.
• A table can provide greater insight than single statistics.
• It solves the problem of empty or sparse cells.
• They are simple to conduct.
Statistics related to cross tabulations
The following list is not comprehensive.
Chi-square: this tests the statistical significance of the cross

tabulations. Chi-squared should not be calculated for percentages.
The cross tabs must be converted back to absolute counts (numbers)
before calculating chi-square. Chi-square is also problematic when
any cell has a joint frequency of less than five.
Contingency coefficient: this tests the strength of association of the

cross tabulations. It is a variant of the phi coefficient that adjusts for
statistical significance. Values range from 0 (no association) to
1(maximum possible association).
Cramer’s V: This tests is the strength of association of cross

tabulations. It is also a variant of the five co-efficient which adjusts the
number of rows and columns.
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DATA ANALYSIS
Lambda coefficient: This tests the strength of association of the cross

tabulations when the variables are measured at the nominal level.
Asymmetric Lambda: This measures the percentage improvement in

predicting the depending variable.
Symmetric Lambda: This measures the percentage improvement

when the prediction is done on both directions.
Phi coefficient: If both variables are nominal and dichotomous, phi

coefficient is a measure of the degree of association between both the
variables. This measure can be interpreted similar to correlation
coefficient in its interpretation. Both the variables are considered to be
positively associated if majority of the data falls along the diagonal
cell.
Simple regression: Simple regression is the least squares estimator of

a linear regression model with a single predictable variable. Simple
linear regression fits a straight line through the set of n points in such
a way that makes the sum of squared residual models (which is,
vertical distances between the points of the data sets and fitted lines)
as small as possible.
This regression is one of the simplest methods in statistics. The fitted

line has the slope which is equal to the correlation between y and x,
corrected by the ratio of the standard deviations (SD) of these
variables.
The intercepts of the fitted line is such that it passes through the
centre of mass (x, y). of the data points.
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DATA ANALYSIS
When the two variables are displayed in a scatter plot and one can be
thought of as a response to the other, the standard practice is to place
the response on the vertical (Y-axis). The names of the variables o the
X – axis and Y- axis vary according to the field of application.
Some of the common applications are:

X- axis Y-axis
Independent Dependent
Predicator Predicted
Carrier Response
Input Output
The association looks like it could be described by the straight line.

There are many ways on can draw the straight line from the data The
point is that the standard procedure must be followed for drawing or
plotting the straight line. This standard procedure is important so that
analyst follow a common methodology for plotting.
The regression equation:

“The data are pairs of independent and dependent variables”
! { ( x y ) : i =1,......, n}
1 1
∧ ∧
The fitted equation is written ! Y =b0 +b1x where ! Y is predicted value
of the response obtained by using the equation. The residuals are the
differences between the observed and predicted values
∧
! yi − y : i =1,... ...., n. They are always calculated as (observed-
predicted) values.
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DATA ANALYSIS
There are two primary reasons for fitting a regression equation to a set
of data, first is to describe the data; second is to predict the response
from the carrier. The rational behind the regression line is calculated
best seen from the point of view of prediction. A line gives a good fit
to a set of data if the points are close to it. Where the points are not
tightly grouped about any line, a line gives a good fit if the points are
closer to it than any other line.
For predictive purposes this means that the predicted values obtained
by using the line should be close to the values that were actually
observed, that is the residual should be small,. Therefore, when
assessing the fit of a line, the vertical distance of the points to the line
is the only distances that matter. Perpendicular distances are not
considered because errors are measured as vertical distances and not
the perpendicular distances.
Muscle Strength
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DATA ANALYSIS
Lean Body Mass

The simple linear regression equation is called the least squares
regression equation.
The name itself suggests that the criterion used to select the best
fitting line, namely that the sum of the squares of the residuals should
be the least. That is the least square regression equation is the line for
2
! ∑$& y − y1 ')
∧
which the sum of squared residuals is a minimum.
% (
It is not necessary to fit a large number of lines by trial and error to
find the best fit. The sum of squared residuals will be minimized by
the line for which.
! b1 = ( 1 ) ( 1 2 ) , b0 = y − b1 x
∑ x −x y − y
∑ ( x1 − x )
When the analysis is performed by a programme then the output will
look like as above. A straight line can be fitted to any set of data. The
formulas for the coefficients of he least square fit are then same as
sample, a population, or any arbitrary batch of numbers. However
regression is usually used to let the analyst generalize from the
sample in hand to the population from which the sample is drawn.
There is a population regression equation.
! β0 + β1 X
! Yi = β0 + β1 X1 + εi
The sample regression equation is an estimate of the population
regression equation. Like any other estimate there is an uncertainty
element is associated with it. The uncertainty is expressed in
confidence bands about the regression lines. They have the same
interpretation that of the standard error of the mean, except the fact
that the uncertainty varies according to the location along the line.
The uncertainty is least at the sample means of the Xs and gets larger
as distance from the mean increases. The regression line is like a
pendulum where it oscillates from the centre.
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DATA ANALYSIS
The distance of the confidence bands from the regression line is:
2
tse
1
+
( x* − x )
! n ∑ ( xi − x ) 2
Where t is the appropriate percentile of the t distribution, Se is the
standard error of the estimate, and x* is the location along the X- axis
where the distance is being calculated. The distance is smallest when
x* = These bands also estimate the population means value of Y for X
=x*
There are also bands for predicting a single response at a particular

value of X. The best estimate is given, once again, by the regression
line. The distance of the prediction bands from the regression line is.
2
ts e 1 + ( x* − x )
! n 2
∑ ( xi − x )
For large samples, this is tse, so that the standard error of the estimate
function is like the standard error around the regression line.
366
DATA ANALYSIS
The regression of X on Y is different from regression of Y on X. If one

wants to predict the lean body mass from the muscle strength, a new
model would be needed. It could not be obtained by taking the
original regression equation for solving the strength problem. The
reason that original scatter plot, is the best equation for predicting
lean body mass, minimizes the errors in horizontal direction rather
than the vertical.
For example
The regression of strength on LBM is
Strength = -13.97+3.016 LBM
(solving for LBM)
LBM= 4.632+0.332(strength)
However, the regression of LBM on strength is
LBM= 14.525+0.252(strength)
!
(On X axis muscle strength and on Y axis Lean body Mass)
367
DATA ANALYSIS
The regression of X on Y is different from the regression of Y on X. If

one wanted to predict lean body mass from muscle strength, a new
model would have to be fitted. It could not be obtained by taking the
original regression equation and solving for the strength. The reason
is that the in terms of the original scatter plot, the best equation for
predicting lean body mass minimizes the errors in the horizontal
direction than the vertical.
Multiple Regressions: The general purpose of the multiple

regressions is to learn more about the relationship between several
independent variables and a dependent variable. For example: A real
estate company might record for each listed property; the attributes
such as: the size of the house (sq.ft. area), number of bedrooms,
locality, the class of people in the neighborhood, etc., according to the
census data and a subjective rating of appeal for the house. Once the
information has been compiled for the various houses, it would be
easy to study how these measures relate to the price for which the
house is sold.
For example, one might think that number of bedrooms is a better

predictor for obtaining a better price or alternatively the
neighborhood or locality may decide on the price premium factor.
Professionals regularly use multiple regression procedures to

determine t equitable compensations. For example one can determine
a number of factors such as “ an amount of responsibility” or a
number of people to supervise that one believes to contribute to the
value of a job. The analysts usually conduct a salary survey with
comparable companies in the market, recording the respective salaries
and responsibilities for different positions. This information can be
used in a multiple regression analysis to build a regression form.
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DATA ANALYSIS
Salary = .5*Resp+.8No_ Super. Once this said regression line has been
determined, the analyst can now easily construct a graph of the
predicted salaries and the actual salaries of job aspirants. Thus the
analyst is able to determine which position is underpaid (below the
regression line) and which position is paid (above regression line) or
paid equitably.
11.6 Factor Analysis

Factor analysis is a statistical method used to describe variability
amongst the observed variables in terms of fewer unobserved
variables called factors. The observed variables are taken as linear
combinations of the factors, and error terms. The information known
about the inter-dependencies can be used to reduce the set of
variables in a dataset. Factor analysis is mostly used in behavioral
science, social science, marketing, operational research etc, where a
large quantity of data is required to be analyzed.
Procedure for factor analysis:

The basic steps are as follows:
(i) Identify the salient attributes, consumer use to evaluate product in
the category.
(ii) Use quantitative marketing research techniques (surveys) to
collect the data from a sample of potential customers concerning
their ratings of all the product attributes.
(iii)Input the data in statistical programme and run the factor analysis
procedure. The computer will give way a set of factors.
(iv)Use these factors to construct maps and other product positioning
devices.
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DATA ANALYSIS
Advantages of factor analysis

(i) Both subjective and objective attributes can be used.
(ii) It is easy to perform, inexpensive and accurate.
(iii)It is based on direct inputs from customers.
(iv)It offers flexibility in naming and various dimensions.
Disadvantages of factor analysis:

(i) Its usefulness depends upon the researcher’s ability to develop a
complete and accurate set of product attributes – if important
attributes are missed out then the procedure can loose the value or
becomes invalid.
(ii) Naming the factors is a complex activity, multiple attributes can be
highly correlated with no obvious reasons.
(iii)Factor analysis will always produce a pattern between variables,
no matter how much random it is.
Factor analysis as a data reduction method:

Suppose, we conduct a study in which we measure a sample height of
100 people in inches and centimeters. Thus, we could have two
variables that measure height. Suppose in future, we are carrying out
a research on food supplements which may have an effect on growth
of height, in that case we may require the data of heights either one or
both.
From the above mentioned study, we understand the necessity for

extrapolation
Suppose we want to measure how people are satisfied with their

lives? We design a questionnaire with various items amongst that we
may ask about their personal hobbies i.e.:
(i) How hard are they pursuing their hobbies in day to day life?
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DATA ANALYSIS
(ii) How satisfied are they with the amount of time they are giving for
their hobbies?
In the above mentioned case, we will find that the responses to both
the questions will be correlated with each other.
In statistics given that the correlation between two items is very high
then we can conclude them as unnecessary.
Combining the two variables into a single factor: One can summarize
the correlation between the two variables in a scatter plot. A
regression line can then be fitted that represents the best summary of
the linear relationship between the variables. We could define a
variable that would approximate the regression line in such a plot.,
then , that variable would capture most of the fundamental nature of
the two items subject scores on the new factor represented by the
regression line, could then be used in future data analysis to represent
the fundamental nature of two items. Here we have reduced the two
variables to one factor and the new factor is actually a linear
combination of the two variables.
Principal component analysis: Combination of two variable factors

into one factor, illustrates the basic idea of factor analysis, or the
principal components analysis. If one extends the two variable
example to multiple variables, then the computations become more
involved, but the basic principal of expressing two or more variables
by a single factor remains same.
11.7 The Analysis of Variance (ANOVA)

The analysis of variance involves measuring differences between the
means, which is described as a variance. The analysis of the variance
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DATA ANALYSIS
goes by the principal that the total variance which exists in the data
can be apportioned to a specific factor by using a formal mathematical
methods. The size of the variance with reference to each factor will
indicate that factor’s influence on the dependent variable.
Analysis of variance is a very flexible statistical technique and with a

modification it can be used to test in various experimental designs.
This technique can be used to analyze the data when the treatments
have been randomly assigned.
The variance (being measured) must be in a metric format.
Example:
The marketing of a company is interested in determining which of the
new packaging will be most effective for the new shampoo. For this
purpose the tests in all three designs will be carried out in five
different cities. This test is to understand the impact of the new
packaging of each design on the sales volume.
Another important factor would be the two major sources of variation

to be considered will be:
(a) Impact of the packaging
(b) Influence on the sales in city
We requires a random design for the computation
Random design showing sales of three different packages in five cities

of India.
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DATA ANALYSIS
1st 2nd 3rd

Test cities Mean
packaging Packaging Packaging
A 40 41 60 47
B 38 29 20 29
C 60 54 78 64
D 28 33 41 34
E 34 33 41 36
Total no. of
200 190 240
cases
Figures are in total no. of cases sold

Treatment means: ! X1 = 40 X2 = 38
! X3 = 48
Overall mean=42
From the Table we see that the 3rd package design was proven to be
successful in terms of the sales. However, can that be considered as a
valid logic, the difference in the sales of three packages shows a real
preference among the buyers for the third package design.
Are we sure that the preferences showed by citizens of that particular

five cities.
Is it not possible that the result in difference in the sales of all three
packaging designs is due to random error and not actual preference of
packaging?
All these doubts can be cleared by hypothesis testing
The two following null hypothesis can be tested:

(a) Each package is equally attractive to all customers in all five cities
373
DATA ANALYSIS
(b) Each package has equally influenced all the customers in all five
cities.
Based on this we can develop a format for random block design and
derive the computing ’F’ ratios.
We derive the sums of various square values, then computed sums of

square values will be displayed on variance table. This will enable us
to compute the ’F’ Values for each source of variation.
SST1 = The sum of squares of treatments (sum of all columns).

= 5 [(40-40)2 + (38-40)2 +(48-40)2] *(5- represents the number of rows)
= 5(0+4+64)
= 340
SSC = Sum of squares of cities (Sum of squares of rows)
= 3[(47-40)2 +(29-40)2+ (64-40)2+(34-40)2+(36-40)2]
(3* represents the number of columns)
= 3(49+121+576+36+16)
= 2394
TSS = Total sum of squares
=(40-42)2 + (41-42)2+ (60-42)2 + (38-42)2…..+ (41-42)2
= 3186
SSR = Residual sum of squares
= TSS-(SSC-SST)
= 3186-(2394+340)
= 452
Now the computed ratio’s for treatments are to be computed to a

tabular ‘F’ values obtained from the table. The value of the ‘F’ will be
based on the degree of freedom in the ratio. Referring our example, in
the case of treatment there are two degrees of freedom in the
numerator and eight degrees of freedom in the denominator. Now for
this combination of and at 0.05 level of significance the ‘F’F value is
4.46.
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DATA ANALYSIS
From the Table mentioned below we can see that the computed value
of ‘F’ (4.46).
This analysis indicates that there was no significant difference

between packages in terms of overall consumer preference.
Thus, it can be stated that the null hypothesis (Each package is

equally attractive to all customers in all five cities). This cannot be
rejected, since there is not enough confirmation to show the difference
in sales among the three packages is not on account of sampling error
or some other variable.
In another case, the computed value of ’F’ for the difference between
cities(10.59) does well exceed the ‘F’ value of 3.84 for 4 and 8 degrees
of freedom at 0.05 level. This indicates that the second null hypothesis
is rejected (Each package has equally influenced all the customers in
all five cities). In other words it can be seen that there are significant
differences between five cities in terms of their acceptance of the
different packages.
This analysis indicates that the difference in sales between packages

was not because of a preference shown by all the consumers, but was
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DATA ANALYSIS
rather due to differences in preferences among the five test cities.
!
11.8 Summary
data with the goal of highlighting the useful information, suggesting
conclusions, and supporting the decision making. Data analysis has
multiple approaches, encompassing diverse techniques in different
businesses, science and social science domains.
The quality of the data can be assessed in many ways. The

distribution of the variables before data cleaning is compared with the
distribution of variables after data cleaning, to check the unwanted
effects on the data. Secondly, data is checked for missing observations,
thirdly extreme observations in the data are analyzed to check
whether they disturb the distribution.
Three important steps in data analysis:

(A)Univariate analysis: This is the first step in data analysis to
examine the distribution of each individual variable.
(B) Bivariate analysis: The second step in data analysis is to describe
the association between pairs of variables.
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DATA ANALYSIS
(C) Multivariate variables: This is the third step in data analysis to

make use of a statistical model called linear regression, to examine
the relationship between the multiple independent variables and
dependent variables. This is to gain insight into casual
relationship.
Chi-square test: The chi-square test, written as, written as2 test is a
useful measure of comparing experimentally obtained results with
those expected theoretically and based on hypothesis. It is used as a
test static in testing a hypothesis that provides a set of theoretical
frequencies with which observed frequencies are compared.
The measure of chi-square enables to find out the degree of

discrepancy between the observed frequencies and theoretical
frequencies. It helps to determine whether the discrepancy occurred
due to error of sampling or error of chance.
Correlation: Correlation may be defined as the tendency of two

groups or series of items to vary together directly or inversely. When
two phenomenons are varying simultaneously in the same direction
with the opposite directions, and the variation in the one is caused by
due to variation in another, then the two phenomenons are said to be
correlated. Whenever there is a definite connection between the two
or more groups then there is said to be a correlation.
If the two groups move in the same direction, correlation is said to be

direct. If the two groups move in the opposite directions then they are
said to be inversely correlated.
Regression analysis: This analysis attempts to determine the linear

equation that describes, how some variables respond to changes in
other variable.
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DATA ANALYSIS
Principal component analysis: This analysis attempts to determine a

smaller variable which could elaborate the set.
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DATA ANALYSIS

1. The process of gathering and transforming data into useful
information is known as _____________. 
(a) Sales analysis  
(b) Sampling  
(c) Data analysis
2. The sampling of the real world to generate data is called as

_____________. 
(a) Physical phenomenon  
(b) Data analysis  
(c) Data acquisition
3. The analysis which is concerned with the description or

summerisation of individual variables in a given
data_____________. 
(a) Bivariate analysis  
(b) Multivariate analysis  
(c) Univariate analysis
4. The estimation of a population parameter given by a single

number is called as 
(a) Point estimation  
(b) Interval estimation  
(c) Frequency distribution
5. Bivariate analysis is _____________. 

(a) The simultaneous analysis of two variables. 
(b) Analysis of one variable with respect to other independently 
(c) Analysis of one variable with respect to many variables
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DATA ANALYSIS
6. Which of the following test is a useful measure of comparing

experimentally obtained results from those theoretically obtained
_____________. 
(a) Chi – square test  
(b) Rank correlation  
(c) Regression
7. Which of the following study is used to make a comparative study

between related phenomenons? 
(a) Correlation  
(b) Regression  
(c) Discriminant analysis

1. What is a multivariate analysis? State its technique
2. What is a factor analysis? State its procedure, advantages and
disadvantages
380
DATA ANALYSIS
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
381
HYPOTHESIS TESTING
Chapter 12 - Hypothesis Testing
Objectives
The researcher always takes effort and time to speculate so as to

emerge with possible answers to the research problem. A hypothesis
is a possible answer to a research question.
After studying this chapter students will be able to understand

• formulation of hypothesis
• testing of hypothesis and its parameters.
• steps in hypothesis testing
• types of different hypothesis tests
Structure
12.1 Introduction.
12.2 Hypothesis Testing
12.3 Application of Hypothesis Tests in Marketing
12.4 Limitations of Hypothesis Testing
12.5 Summary
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HYPOTHESIS TESTING
12.1 Introduction
It is important to make judgment about population mean in
marketing research. This can be done by testing the hypothesized
value of the population mean.
The choice of the probability distribution depends upon:

(a) The purpose of hypothesis testing.
(b) The size of the sample.
(c) If the population’s standard deviation is known, then the sample
size doesn’t really matter. However if the population standard
deviation is not known then sample size is critical.
A hypothesis is a tool of the research based on which the researcher

derives the answers to the research questions. The researcher is
expected to spend time and efforts to speculate the various answers to
the research questions. The answers to the research questions are
evolved out of the research process as the relevant empirical findings
are emerged out from the research and their analysis.
For example the hypothesis could speculate if the sales are down in
the western region then that is because competition running
promotions and heavy marketing campaigns.. Such hypothesis
provides considerable details to a research problem that what could
be the problems in western region which have caused the reduction in
the sales? The most important point in the hypothesis is it suggests
the variables to be included in the research design, in case of
competition.
12.2 Hypothesis testing

A testing of hypothesis could begin with an assumption. The testing
of hypothesis is a procedure that helps in ascertaining the likelihood
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HYPOTHESIS TESTING
of a hypothesized population parameter being correct in making

sample statistics. In testing of hypothesis, a statistics is computed
from a sample drawn from the data and the on the basis of this
statistics, it is observed whether the sample drawn has come from the
population with certain characteristics.
The test of the hypothesis discloses the fact as to whether the

difference between the sample statistics and corresponding
hypothetical population parameter is significant or not significant.
Thus, the test of hypothesis is also known as the test of significance.
The, data from an appropriate sample is collected and the information
obtained from the sample is used to decide as to how likely the
hypothesis – population parameter is correct. The hypothesis
questions are selective questions, which result into the empirical
findings questions, they should be analyzed first for checking
whether necessary information can be generated or not. Considering
the efficacy of the questions the researcher must spend time and
efforts for further research work.
The purpose of hypothesis testing is not about testing the questions

that computed value of the sample statistics., but to make a judgment
about the difference between the sample statistics and hypothesized
population parameter.
For example, in the marketing research the situation arises, where

there is a need to test the assumption regarding certain value of
population mean. To test the assumption’s validity, data from a
sample is gathered and the sample mean and the hypothesized value
of the population mean is calculated. The smaller e the difference is,
greater chance that the value of hypothesized population for the
mean is correct.
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HYPOTHESIS TESTING
Steps in Hypothesis Testing

1. Defining the problem.
2. Stating the null and alternative hypothesis.
3. Selection of the pertinent tests and appropriate probability
distribution
4. Making a suitable choice of the critical value
5. Comparing test statistics with critical value
6. Making a decision.
1. Defining a problem: It leads to the generation of the hypothesis.

The relevant probability distribution is then chosen. The
corresponding critical value is determined from the information
such as, significance of level, degree of freedom and a two-tailed
test etc. The appropriate test statistics is then compared with the
relevant critical value, and if the test statistics fails in the critical
region, the null hypothesis is rejected.
2. Clearly stating the null and alternative hypothesis: The

conventional approach to hypothesis is to set up hypotheses
instead of one, in such a way that if one hypothesis is true then
other one is false. Alternatively if one hypothesis is rejected then
the other hypothesis is automatically proven to be true and
accepted. 
 
These two hypotheses are: 
(a) Null hypothesis 
(b) Alternative Hypothesis 
 
The null hypothesis means invalid hypothesis. 
For example, in case of the mean population (%0) 
H0 = % = %0 Where H0 is the null hypothesis. 
 
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HYPOTHESIS TESTING
The alternative hypothesis can be stated as, Ha ≠ %0 (Ha :

Alternative hypothesis). 
 
The rejection of the null hypothesis will show that the mean of the
population is not %0. This means that the alternative hypothesis is
accepted. It may be possible that there will be more than two
alternative hypotheses. In that case, each on must be tested against
null hypothesis.
3. Choosing a suitable test and appropriate probability

distribution: After stating the null and alternative hypothesis, the
next step is selecting suitable test and appropriate probability
distribution. The choice of the appropriate suitable distribution
depends on the purpose of the hypothesis test. The purpose could
vary from comparing the sample and the population to comparing
two sample characteristics, such as mean, variance, proportion,
etc. 
 
For a given purpose, a particular form of the statistical test may or
may not be appropriate depending on the sample size and the
standard deviation of the population In marketing always large
number of samples is dealt with so as to achieve accurate
conclusions. 
 
Selection of the appropriate criterion for making the decision of
accepting or rejecting the null hypothesis and alternative
hypothesis is our next step. 
 
Commonly used three criteria’s are as below: 
1. The significance level. 
2. The number of degree of freedom 
3. One or two-tailed test.
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HYPOTHESIS TESTING
4. Choosing the critical value: Significance level If the hypothesis is

to be tested at the 10% level of significance, it means the null
hypothesis will be rejected further, if the difference between the
sample statistics and hypothesized parameter of population is so
large that this or a larger difference would occur, on the average of
only 10 samples in 100. In other words assuming the hypothesis to
be true, the significance level indicates the percentage of sample
means which is outside the cut-off limits can also be called as
critical value.
There is nothing called a specific rule for selecting a significance level.

The most commonly chosen levels in research are 1% level, 5% level
and 10% level. Although it may be possible to test the hypothesis at
any of these levels of significance.. It should be clearly understood
that the significance level so selected is also the risk assumed of
rejecting a null hypothesis when it is true. Higher the significance
level used for testing a hypothesis greater the probability of rejecting
a null hypothesis when it is true - This is called TYPE-I ERROR.
Alternatively not rejecting a null hypothesis when it is false it is called

as - TYPE-II ERROR. Whenever a choice of the significance level for a
test of hypothesis is made, there is an inherent trade-off between these
two types of errors. The probability of making one type of error can
be reduced only if the researcher is willing to increase the probability
of making another error.
To deal with this trade-off, researcher may decide the appropriate

level of significance by examining the costs attached with both types
of errors.
Let us consider an example of mineral water in packed bottles:
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HYPOTHESIS TESTING
If we assume the Type-I Error to be true(Rejecting the null hypothesis

when it is true) involves taking time and complex procedure to re test
the batches of packed bottles for contaminations, which should have
been otherwise accepted. But making Type–II Error (Accepting a null
hypothesis knowing it is false). This means taking a chance of
supplying contaminated bottles in market. Obviously in such cases
company will prefer to accept the Type-I Error. Resultantly it will set a
high level of significance in testing.
Ideally a good test of hypothesis must reject a null hypothesis when it

is false.. In other words the probability of accepting a null hypothesis
when it is false should be lowest possible
This also known as a power of hypothesis test.
Thus, the power of the hypothesis test of a null hypothesis is the

probability that it will lead to the rejection of the null hypothesis; that
is, the probability it will result in the conclusion that the phenomenon
exists. The power of hypothesis test depends upon three parameters.
• The significance level of the test.
• The reliability of the sample results
• The effect size.
Degree of freedom (dr): This refers to the number of bits or

unconstrained data used in calculating a sample statistics. Degree of
freedom is traditionally represented as n-k, where ‘n’ is the total
number of information bits available and ‘k’ is the number of linear
constraints or restrictions required when sample statistics are
calculated. In a simple random sample of ‘n’ observations, there are
‘n’ degrees of freedom if no restrictions are placed on the sample. A
sample means has ‘e’ degrees of freedom, since there are no
restrictions applied to the sample while calculating its value.
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HYPOTHESIS TESTING
However there are (n-1) degrees of freedom associated with a sample

variance, because one degree of freedom is lost due to the restrictions
so that it is necessary to calculate mean before calculating the
variance. Therefore the first (n-1) observations in a sample can be
selected freely, but the value must be chosen, in a way that the
constraints of an electrical mean value will be satisfied. In general the
most degree of freedom there are, the greater is the observed
differences in the relationships among variables.
One or Two-Tailed Test: In conducting a one sided hypothesis test,

the researcher determines a particular whether a particular
population parameter is large or small than pre-defined value. In this
case only one critical value and one region of a test statistic is used. In
two-sided hypothesis test, the researcher determines a population
parameter which is within certain upper and lower bands. Depending
on the statistical technique applied one or two critical values may be
used.
Making a Decision: This is a step in hypothesis testing to reach

statistical decision. This involves acceptance or rejection of the null
hypothesis. This will depend on whether the computed values of the
test criteria fall in the region of acceptance or in the region of rejection
at a given level of significance. It should be noted that the statement
of rejecting the hypothesis is stronger as compared to the statement of
accepting the hypothesis. In other words it is much easier to prove
something false than to prove it is true. Thus, when the researcher
says that the null hypothesis is not rejected then it is proven to be
true.
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HYPOTHESIS TESTING
Types of Tests
There are two types of tests:
1. Parametric tests.
2. Non-parametric tests.
The parametric tests assume that the parameters such as mean,

standard deviation etc, exists and they are used in testing a
hypothesis. In some cases, the population may not have a normal
distribution. However a research studies a sample most frequently
used as sample distribution is very close to normal distribution.
The parametric tests commonly used are:

(a) z-test.
(b) t-test.
(c) x-test.
(d) f-test.
these tests are more powerful as compared to non-parametric tests.
There are situation, particularly in marketing research where the

assumptions underline the parametric tests are not valid. This means
there is no assumptions that a particular distribution is valid to a
certain value which is attached to a parameter of the population. In
such cases non-parametric tests are used. Theses tests are also known
as distribution-free tests. There are number of such tests such as chi-
square tests, rank-some test, McNemar test ect.
A major advantage of non-parametric test is that there quick and easy

to use moreover, when data is not accurate there should be proper
application of standard tests of significance. These tests are advisable,
since they are convenient to use and they yield satisfactory results.
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HYPOTHESIS TESTING
The use of non-parametric tests involves a greater risk of accepting a

false hypothesis and thus committing a type-II error. Further, as the
null hypothesis is loosely defined and when it gets rejected, in such a
case the non-parametric tests yields less accurate results as compared
to parametric tests.
12.3 Application of Hypothesis tests in Marketing Research

One-tailed test and two-tailed test: Examples and graphs
 
One-tailed test:
!
Example: MRF-Tyres a tyres manufacturing company in India. It finds
that tyre-life is normally distributed with a mean of about 40,000 kms
and a standard deviation of 3000 kms. Certain changes and
modification in production process will result into a better product
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HYPOTHESIS TESTING
and the company has developed a new product. A sample of new 64

tyres were selected The mean life of these tyres is 41,200 kms.
We want to prove that the new type can be better than the old one?
Problem here is, the company wants to test whether the mean life of
the tyre has increased or not?
The various steps in null hypothesis are:

1. Null hypothesis and alternative hypothesis are:
H0 : % = 40,000 Kms.
H1 : % > 40,000 Kms.
2. The significance level is taken as 0.05, which means that 5 out of

every 100 occasions, there is a risk of being wrong in accepting or
rejecting the hypothesis.
3. The test criteria, Z-test.
4. Computations: Substituting the value of standard deviation as σ

=3000 Kms in the formula.
5. Decision: at 0.05 level of significance, the critical value of Z = ±

1.64.
Figure below mentioned shows that the computed value for Z= 3.2
falls in the rejection region. Thus, the hypothesis that %>40,000 Kms is
accepted and %=40,000 Kms is rejected. In this example, the value of
N (Population size is not given). It is assumed that sample size n is
relatively very small to population size N therefore the finite
population correction factor is not used.
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HYPOTHESIS TESTING
Hence, it is proved that the new type of tyre is significantly better than the
old one.
Example 2: Jumbo ice cream manufacturing pvt ltd sells 500 gms
pack. Periodically, a sample is taken to check whether an average
pack contains 500 gms or not. A sample of 16 packs is taken and the
sample mean is found to be and the estimated standard deviation is
Does the sample mean vary significantly from the intended weight of
500 gms.
In this case we take the null hypothesis that there is no difference

between the sample mean and population mean. Thus, H0 is %= 500
gms. And we have two tail tests. The t statistics is:
This t has a distribution with (16-1) = 15 degrees freedom. Assuming
α, the risk of type-I error0.05 for 15 degrees of freedom, critical value
of t is 2.131.
It can be seen from the figure that the calculated value of t falls within
the rejection region. We therefore reject the null hypothesis and
conclude that a sample mean differs significantly from the population
mean of 500 gms. The company must tighten the controls in packing.
393
HYPOTHESIS TESTING
!
Example 3: A potential wholesaler wants to decide which of the two
brands of CFL bulbs he should buy in bulk. He initially buys 100 units
of each bulb; let’s assume the brands as A and B. After using the bulbs
he realizes that the brand A has a mean life of 1000hours, with a
standard deviation of 30. Brand B has a mean life of1050 hours with a
standard deviation of 50.How can he decide about difference in
quality of the brands.
Let us assume a null hypothesis as both the brands do not differ

significantly in quality.
Null hypothesis: H0: %1= %2
Alternative hypothesis: H1 : %1≠ %2
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HYPOTHESIS TESTING
Assuming α = 0.05, we find that the value of z is ± 1.96. As calculated

value of Z (-8.58) falls in the rejection region, we reject the null
hypothesis and we conclude that both brands differ in quality
significantly from each other.
Chi-square One – Sample test:

This test enables the researcher to determine whether an observed
pattern of frequencies match to an expected pattern. It tests the
goodness of ‘fit’ of the observed distribution in relation to an expected
distribution. At times, the researcher is interested in determining
whether the numbers of responses that fall into various categories
differ from change. If the data are nominally scaled, chi-square test is
applied. When tests undertaken to examine whether the sample data
support the hypothetical distribution, such problems are called tests
of goodness of fit.
The x2 test requires following steps:

1. State the null hypothesis and calculate the number in each
category if the null hypothesis is correct.
2. Determine the level of significance, that is how much risk of the
type-I error the researcher is prepared to take.
3. Calculate x2 as below:
Where:
Oi = Observed frequency in the ith category.
Ei = Expected frequency in the ith category
K= Number of categories.
4. Determine the number of degrees freedom. For the specified level
of significance and the degrees of freedom, find the critical value
of X2.
5. Compare the calculated value of X2 with critical value and
determine the regions of rejection.
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HYPOTHESIS TESTING
Example:
A jumbo ice cream manufacturer is manufacturing mango ice cream
in three different sizes
Large, regular, small. It has been observed the ratio in which the
variety of sizes sell is 3:5:2.
The company wishes to introduce a new strawberry flavor and has

conducted test marketing campaign for the same. The results of the
test marketing show that it has sold 250 large packs, 400 regular packs
and 350 small packs of the new flavor.
The company wants to find out about the consumption pattern of the
new strawberry flavor, that it is different from the mango flavor.
We state the null hypothesis as” The consumption of the new

strawberry flavor is not different than the mango flavor. Now we
calculate the value of X2.
WORK SHEET FOR THE CALCULATION OF CHI- SQUARE TEST

Observed Expected
Pack size (O-E) (O-E)2
frequency frequency
Large 250 300 -50 2,500 8.33

Regular 400 500 -100 10,000 20
Small 350 200 -150 22,500 112.5
X2=140.83
Degree of freedom, 3-1=2. At 5% level of significance the critical value
of X2 for 2 degrees of freedom is 5.991. Since the calculated X2 is more
than the critical value of X2 is more than the critical value of X2, it falls
in the rejection region. We therefore, reject the null hypothesis which
stated that the consumption pattern of new ice cream is not different
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HYPOTHESIS TESTING
from the earlier one. In other words, this shows that new flavor of
strawberry ice cream has a different consumption pattern than mango
flavor.
McNemar test: This test is a modification of chi-square test. It can be

used with nominal and ordinal data both, and even when the samples
are not independent.
This test is known as an ideal test for pre-evaluation and post-

evaluation. Although it is restricted to the examples of 2x2 frequency
tables. This test maybe used to test the effectiveness of a particular
treatment such as an advertising campaign/promotion campaign, etc.
Tests of differences among two or more means, independent samples:
When two or more means of independent samples are involved, the

analysis of variance (ANOVA) is used to test the differences among
the means. It is a effective statistical tool to test the differences
between the means.
To understand (ANOVA) , it is desirable to discuss in two different

parts.
(a) One way classification
(b) Two way and Three way classification.
The null hypothesis is:

H0 : %1= %2= %3…………… %K
The alternative hypothesis is

H1 = All the %i are not equal.
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HYPOTHESIS TESTING
Following steps are involved in calculating the ANOVA:

1. Calculate the variance between the samples.
2. Calculate the variance within the samples.
3. Calculate the ‘F’ ratio
4. Compare the value of F as arrived in (3) above with the critical
value of ‘F’ such a 5% level of significance for the applicable
degree of freedom.
When the calculated value of ‘F’ is less than the table value of ‘F’ , the
difference in the simple means is not significant and the null
hypothesis is accepted. In contrast when the calculated value of ’F’ is
more than the critical value of ’F’, the difference in the sample means
is regarded as a significant and the null hypothesis is rejected.
12.4 Limitations of the tests of hypothesis

1. The test should not be used in a mechanical manner. It should be
kept in view that testing is not decision-making in itself; the tests
only aid in making decisions. There fore proper interpretation of
statistical evidence is important for arriving at a decision.
2. Tests do not explain or elaborate the reasons why a particular

difference exists between the two means of the samples. They
simply indicate whether the difference is due to any fluctuation of
sampling or any other reasons. However, tests do not tell of any
specific reasons.
3. Results from the significance tests depends upon the probabilities,

as such cannot be expressed with full certainty. When a test shows
that a difference is significant, then it is probably not due to
chance.
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HYPOTHESIS TESTING
4. Statistical interferences based on the significance tests cannot be

said to be entirely correct evidences concerning the truth of the
hypothesis. This particularly in the case of small samples where
the probability of drawing erring inferences happens to be higher
for greater reliability, the size of the sample should be adequately
large.
A hypothesis thus, is an assumption or theory that a researcher makes

about some characteristic of the population being investigated. With
the help of testing the researcher determines whether a hypothesis is
valid or invalid. When marketing researcher is examining differences
between the groups, test of a proposition can be used. A researcher
can test a proposition with one sample or test the differences between
when dealing with independent samples.
12.5 Summary
It is important to make judgment about population mean in
marketing research. This can be done by testing the hypothesized
value of the population mean.
A hypothesis is a tool of the research based on which the researcher

derives the answers to the research questions. The researcher is
expected to spend time and efforts to speculate the various answers to
the research questions. The answers to the research questions are
evolved out of the research process as the relevant empirical findings
are emerged out from the research and their analysis.
The choice of the probability distribution depends upon:

(a) The purpose of hypothesis testing.
(b) The size of the sample.
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HYPOTHESIS TESTING
(c) If the population standard deviation is known, then the sample

size doesn’t really matter. However if the population standard
deviation is not known then sample size is critical.
A testing of hypothesis could begin with an assumption. The testing

of hypothesis is a procedure that helps in ascertaining the likelihood
of a hypothesized population parameter being correct in making
sample statistics. In testing of hypothesis, a statistics is computed
from a sample drawn from the data and the on the basis of this
statistics, it is observed whether the sample drawn has come from the
population with certain characteristics.
The choice of the appropriate suitable distribution depends on the

purpose of the hypothesis test. The purpose could vary from
comparing the sample and the population to comparing two sample
characteristics, such as mean, variance, proportion etc.
Assuming the hypothesis to be true, the significance level indicates

the percentage of sample means which is outside the cut-off limits can
also be called as critical value.
One or Two-Tailed Test: In conducting a one sided hypothesis test, the

researcher determines a particular whether a particular population
parameter is large or small than pre-defined value. In this case only
one critical value and one region of a test statistic is used. In two-
sided hypothesis test, the researcher determines a population
parameter which is within certain upper and lower bands. Depending
on the statistical technique applied one or two critical values may be
used.
Making a Decision: This is a step in hypothesis testing to reach

statistical decision. This involves acceptance or rejection of the null
400
HYPOTHESIS TESTING
hypothesis. This will depend on whether the computed values of the

test criteria fall in the region of acceptance or in the region of rejection
at a given level of significance.
Chi square One – Sample test: This test enables the researcher to
determine whether an observed pattern of frequencies match to an
expected pattern. It tests the goodness of ‘fit’ of the observed
distribution in relation to an expected distribution.
McNemar test: This test is a modification of chi-square test. It can be

used with nominal and ordinal data both, and even when the samples
are not independent.
When two or more means of independent samples are involved, the

analysis of variance (ANOVA) is used to test the differences among
the means. It is a effective statistical tool to test the differences
between the means.
401
HYPOTHESIS TESTING

1. A hypothesis begins with _____________. 
(a) Assumption  
(b) Facts  
(c) Decision
2. A hypothesis is called as null hypothesis because of ___________. 

(a) Valid statement  
(b) Invalid statement  
(c) Error
3. Which of the following test is a non parametric test? 

(a) z- test  
(b) t- test  
(c) McNemar test
4. The test ideally suitable for pre-test and post-test evaluation and it
can be either used with either nominal or ordinal data
_____________. 
(a) McNemar test  
(b) Chi-square test  
(c) z- test
5. At times, the researcher is interested in determining whether the

number of responses falls into various categories differ from
change, in such case if the data is nominally scaled then which test
to be applied _____________. 
(a) Chi- square test  
(b) z- test  
(c) t- test
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HYPOTHESIS TESTING
6. The choice of probability distribution depends upon ___________. 

(a) The purpose of hypothesis testing 
(b) Making decisions 
(c) Degree of freedom
7. The higher the significance level used for testing a hypothesis the
greater the probability of rejecting a null hypothesis when it is true
this is called _____________. 
(a) Type I Error  
(b) Type II error  
(c) Trade-off

1. What are various steps in hypothesis testing?
2. Write short notes on
(i) McNemar test
(ii) Chi-square test
(iii)One and two-tailed test
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HYPOTHESIS TESTING
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
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REPORT WRITING
Chapter 13 - Report Writing
Objectives
Researcher communicates the findings of the research in a structured

manner through the report to the management.
After studying this chapter students will be able to understand

• preparation of a quality report
• fundamentals of good report
• different types of reports
• structure of reports
• precautions to be taken while preparing report.
Structure
13.1 Introduction
13.2 Fundamentals of Good Research Report
13.3 Characteristics of a Research Report
13.4 Types of Research Reports
13.5 Structure of Report
13.6 Precautions to be Taken While Writing a Report
13.7 Summary
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REPORT WRITING
13.1 Introduction
A research report is used by the researcher to convey the results of the
study in a detailed manner. The report presented enables the reader to
understand the data in a most comprehensive manner and it is
validated with conclusions.
The research report is a formal account of the research process and its
outcome. The purpose of the research is to communicate the outcome
of the research project meaningfully. A report clearly explains what
was done? How it was done? And why it was done?
The aim and objective of the report is to give a true and clear picture
about the entire study.
13.2 Fundamentals of good research report

After the entire market research work is completed including the
analysis, next step is to prepare a report.
Guidelines to write a good report

The report must begin with powerful headline and a good opening
summary. If the report fails to get attention from the reader then the
entire purpose gets defeated. A qualitative writing of summary which
provides the essence of the project must be incorporated.
It should be remembered that if the report does not convey the facts
then it will not be read in a manner it should have been read, and as a
result the necessary actions will not be taken. Eventually the company
will not receive the benefits from the project.
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A researcher must ensure that he or she is grabbing the attention

constantly in the report. The data provided and structure of the data
must convey the genuineness and reveal the facts.
1. Keep the report logically organized: The report should be

presented in a clear and logical manner. The researcher has to
think from the readers perspective, i.e., what am I looking from
this report?
2. Keep the report moving: Creating the dynamic flow of
information in the research report is absolutely essential for
maximum reading. It should exhibit the logical chain of points
linked with each others in a sequential way. The points mentioned
should not be repeated and the flow of information should be
smooth. 
 
The researcher must highlight the points of special significance, so
that they are not missed out. Supporting quantitative data must be
presented where ever necessary to validate the statements made. 
 
Making each section of the report adequately long enough to keep
up the momentum. It should not be too lengthy or too short
(insufficient).
3. Maintain the simplicity: The researcher should try to keep the

simple and logical language for the report. The phrases and
technical words used should be corresponding to the information
delivered. The intended thought of the researcher must be well
projected from the writing; the whole idea is not about only
writing a report but delivering the information so as to take
necessary action. 
 
The researcher should avoid inserting the ideas which are
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underdeveloped or he has read somewhere, it may create

confusions. 
 
Four important points to maintain the simplicity of the report: 
(a) Use more precise word choices 
(b) Eliminate unnecessary complex words 
(d) Avoid unnecessary repetitions 
(e) Make use of adequate pictures or figures
4. Keep the report authentic: The reader when he picks up the

report is already cynical about it and has plenty of questions in
mind for which he is searching for some answers. The report
should go on building trust and belief while reading. If the report
starts building cloud of disbelief then it will lead a reader towards
becoming suspicious about the information, then methodology
and finally the findings.
5. Purpose of the report: The researcher must keep in mind the

intended audience to the report before he starts drafting the
report.
6. Overall approach: The researcher should take a top to bottom

approach to writing the report. This can proceed in three different
stages as below. 
1. Writing the section outline (header). 
2. The subsection outline 
3. Paragraph level outline
The flow of points may be indicated by bullets for better clarity. The
researcher should think about in advance at which stage to insert
pictures/figures/tables, etc., within the paragraph.
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Another important point during outlining the paragraph is the

terminologies going to be used, for instances, names of various
protocols, algorithms or steps in the solutions and mathematical
expressions etc.
13.3 Characteristics of a good report

The quality of the report is judged from the following mentioned
characteristics.
(a) A good quality report displays the originality and it is necessary to

validate the new information generated.
(b) A good report must provide precise information and must be to
the point.
(c) The language used must be plain and simple without use of
complex or elegant words. It should be an understandable, logical
and exact presentation.
(d) It should be written in a impersonal style.
(e) It should be neat and tidy. Illustrations must be given wherever
necessary.
(f) A report must be objective.
(g) The report must not be vague and off the points. It must avoid the
ambiguous terms.
(h) The ideas mentioned must be pragmatic and logical
(i) It should be written from the audience perspective and not
because researcher thinks about it.
(j) The report must have adequate length so as to cover all necessary
aspects and hold interest and attention necessary.
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13.4 Types of Research Reports

The research reports are broadly classified between oral reports and
research reports.
Oral reports: An oral report is the one where the findings of the
report are conveyed orally. The oral report must be presented by the
researcher who has excellent speech-making. In oral report the style
of delivery language used and knowledge about project are extremely
important.
An oral presentation is effective when policy recommendations are to

be made and discussions are likely to take place. However, there are
some disadvantages of an oral report such as it lacks display of charts,
diagrams, or graphs. The receiver finds difficult to understand
complex data.
While making an oral report presentation the researcher must take

into consideration the nature of audience-technical expertise,
experience, level of operations and interests etc. The purpose of the
information should be informative, persuasive convenient or
recommend, etc.
The oral presentation must be in a simple elaborative language

showing logical flow of information from point to point. There should
not be a parallax between points. It should not have large gaps
between sentences. Optimum use of visual aids, distribution of
handouts prior to presentations should be made.
Researcher must present a summary of discussions at the end of the

presentation.
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Written reports: The written reports are categorized based on various

bases depending on the objectives of the reports.
Written reports can be classified on the basis as below:

• Nature or the purpose of the report – Routine reports, special
reports
• On the basis of the time frame; daily, weekly, monthly, quarterly,
half yearly, annual report, etc.
• On the basis of the subject of the report – Environment, economics,
social, etc.
• On the basis of the physical forms such as short report, memo,
letter, review evaluation, examination, etc.
• On the basis of function – Information (subjective/analytical).
• On the basis of origin – private, semi government, government,
NGOs etc.
Technical Report: The technical report gives a comprehensive

coverage of the research objectives and hypothesis, method
employed, assumptions of the studies and its findings. It is oriented
to experts/technocrats/scientists in the research discipline.
Non-technical Report: It is in contrast with technical report and

primarily aimed at non-technical persons such as administrators,
accountants, human resources, sales and marketing. The findings and
conclusions drawn and their practical implications are more focused
than methodology used. It is written in a contemporary language,
often the use of pictures, cartoons is done to express a point. The
emphasis is on persuasive presentation.
Interim Report: The term interim means time between the events.
These types of report are generally made when the data collection
procedure is extremely long and time consuming. Especially, when
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there is a long span of time between data collection and presentation

of findings. It enables to keep up the interest of the reader when
reporting intermediate progress of the study. The report facilitates
taking some action without waiting for full report to be generated. It
prevents any misunderstanding regarding the waiting period
involved. At times the reviews of interim report also help as input in
making final report.
Summary Report: This is a short and concise report from the common
man’s perspective. It indicates the essence of project and
methodology. It is short enough to be published in news-papers and
magazines. It mainly focuses on problem area, objectives and
information about findings and suggestions.
Research Abstract: it is synopsis or a short summery of a technical

report. It is most commonly prepared by PHD students. The
examination board uses this to understand the subject matter and
scope of study. It contains a brief statement of the problem, objectives
of the study, method and technique used and overview of the report.
It is a potential indicator of the qualitative aspect of the project.
To write a effective report it is essential to plan a content well.
13.5 Structure of the report

A research report generally consists of three parts-
(A)The preliminary section.
(B) The main body of the project.
(C) The reference material.
The student should note that these are guidelines and not the set
rules.
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(A) The preliminary section

(i) Title and abstract: These are the most read parts of any report. This
brings the attention of the reader to the project. The title should be
precise and should reflect what the researcher has done and should
make a primary impact on the reader.
The abstract should be short (To the max up to 300 words). The
abstract should show the essence of the report. Readers normally
make decision on further reading of the report based on the abstract.
It normally contains details as mentioned below.
• Main motivation.
• Main design points
• Methodology
The title page should have following details:

• Name of the topic
• The relationship of the report to the organization
• The name of the author
• The name of the organization to whom it is submitted
• The date for presentation
1. Preface: Preface should be started with a brief introduction. It may

include reasons why, in the first place the topic was selected by the
researcher. Preface should also contain the objectives of the research,
sources of data used for the study.
2. Introduction: Most reports actual start with introduction section.

This section should be able to answer following questions:
(a) What is the research problem? What is the background for
the research?
(b) Problem statement?
(c) Why it is important to solve the problem?
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(d) What is the current status?

(e) What are the challenges in solving the problems?
(f) How did the researcher attempt to resolve the problem?
(g) What were the results and findings of the research?
(h) The researcher’s contribution to the research project.
The brief introduction is a short and comprehensive presentation of

the rest of the report.
3. Acknowledgements: Acknowledgments are written to thank those

who have helped researcher for various reasons
4. Table of contents: Table of contents provides an outline of the

contents of the report. The table of contents appears after the
acknowledgments. It contains the list of titles of chapters and their
reference numbers, followed by the page number on which the
chapter begins. Reference no. to subheads can be put by separating
them using semi-colons or dashes.
(B) The main body of the report: It is also commonly known as a

text of the report
This is the heart of the report. And probably the largest section in the
report. The data should be described fully. It must be analyzed in
details and all the evidence resulting from the analysis should be
presented. Every relevant evidence should be supported by logical
reasoning and empirical facts. Data should be organized
systematically and presented under appropriate heading and
subheadings.
• Problem statement: The researcher must start writing a text by
mentioning problem statement in the beginning, followed by the
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nature and importance of the problem with specific questions to be

answered or hypothesis should be tested.
• Objective of the study: A research project is carried out due to
specific need. The researcher therefore must mention the purpose of
conducting a research.
• Review of literature: It is necessary to present a brief review of the
relevant past work. A brief summary indicating the nature and
scope of the present study and variation from the previous work
already done must be specified.
• Scope of the study: The research report must indicate the scope of
the study pointing out the extent of coverage.
• Justification for the present study: The significance of the problem
and the contribution researcher is expected to make and its
practical importance should be specifically indicated.
• Conceptual framework: The various concepts used in the research
are required to be explained. Definitions and important terms must
be elaborated and justified. The development of the concept and
pertaining investigation must be elaborated well.
• Methodology adopted: It describes the research design used, data
collection methods employed, sampling design and details of the
fieldwork.
• Limitations of the study: This is a very important point. The report
must point out limitations of research project and study. All
research designs have limitations like sampling error, non-
availability of data, etc.
• Technical section: This is the most important part of main body of
report. This involves, different sections which deal with various
aspects of problem. This section of the report is more problem
specific and suggestions for the organizations. This section is
generally lengthy with many subsections. Most vital and problem
specific information flows through this section. Therefore, the
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researcher must make sure the sequential flow of information to the

reader.
• Results: This is part of the technical section but still holds specific
information therefore it is treated as a separate section. The results
are usually presented in the form of tables and graphs. It is
important on the researcher’s part to explain tables and graphs. If
the researcher is presenting many results, in that case it is advisable
to summarize them in the form of points for better understanding.
• Conclusions: It consists of the summary, conclusions, suggestions
and recommendations. Findings are statements of actual
information based on data analysis. Conclusions are answers to the
questions or acceptance/rejection of the proposed hypothesis.
Suggestions are given at the end of report
(C) Reference:
(i) Bibliography: this is a list of documents, books, periodicals,
websites, referrals and manuscripts etc., these are various data
sources from where researcher has sought the useful
information for the project.
(ii) Glossary: It contains explanation of definition of complex or
technical terms used in this project.
(iii)Appendices: This is used for additional or supplementary
information which is not there in the main text. This comprises
of complex tables, raw original data, questionnaire and field
interview forms. This also covers documents such as
instructions to the surveyors, specimen sheet of statistical tests,
etc.
(iv)Index: Index may be either subject index or author index. The
index should be prepared in alphabetical manner. Index should
provide reference to all important points discussed in the
report.
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(v) Future work: This section in some cases is combined with

conclusion section. In this section researcher states the aspects
of problems which were not covered under this project and
possibility of further extensions.
13.6 Precautions to be taken while preparing a research report

(a) A research report should not be uninteresting. It should sustain
the reader’s interest till end.
(b) Report should be long enough to cover complete subject matter at

the same time it shouldn’t be very lengthy.
(c) A report should display originality and should necessarily be an

attempt to solve marketing research problem. It must contribute to
solutions to a problem and must add knowledge to the researcher.
A report should be free from grammatical mistakes.
(d) A report should be able to convey the matter in a simplest manner.

It should be written in simple language and objective style.
(e) The nature of the problem, study objective, methodology and

analysis techniques adopted, clearly stated in an introduction.
(f) A report must be neat and clean. The layout of the report should
be well thought and must be appropriate in accordance with
research objectives.
(g) Appendices should be enlisted with respect to all relevant

technical data in the report. Bibliography of sources must be given
at the end of the project.
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(h) A report must provide the findings in ready manner, if reader

wishes to quickly jump on the findings. For these purpose
statistical tables, graphs, chats etc are to be used to display various
findings.
(i) Confidence limits and various constraints to the project must be

stated in the report.
(j) The report must also state the policy implications relating to the
problem under consideration. It is usually desirable if the report
makes a forecast of probable future of subject matter.
13.7 Summary
A research report is used by the researcher to convey the results of the
study in a detailed manner. The report presented enables the reader to
understand the data in a most comprehensive manner and it is
validated with conclusions.
The research report is a formal account of the research process and its
outcome. The purpose of the research is to communicate the outcome
of the research project meaningfully. A report clearly explains what
was done? How it was done? And why it was done?
A key thing to keep in minds that, the report is written to be read by

someone else. After the relevant data is analyzed and conclusions are
reached that is when the researcher has his findings ready and he
tables in the form of report in front of the management. The report
writing must be done in a clear and precise manner so that the
chances of misunderstanding can be minimized if not totally
eliminated.
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1. A research report does not perform one of the functions mentioned
below _____________. 
(a) It provides factual information 
(b) It helps further research activities in the area of research 
(c) A report is completely secret and not for sharing information
2. The significant thing which a researcher right in the beginning of

the report is to have _____________. 
(a) A powerful title 
(b) Attractive presentation 
(c) Highlighting benefits in top page
3. The report which facilitates taking some action without waiting

for full report _____________. 
(a) Summary report  
(b) Technical report  
(c) Interim report
4. The technical report is focused to address primarily

_____________. 
(a) Finance department  
(b) General management  
(c) Technical experts/ Scientists
5. A synopsis or a short summary of the report is called as

_____________. 
(a) Research article  
(b) Publication  
(c) Abstract
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6. Which of the below mentioned does not constitute structure of the

report _____________. 
(a) Preliminary section  
(b) Main body of the text  
(c) Research articles
7. The exact coverage of the project report is described in

_____________. 
(a) Review of literature  
(b) Conceptual framework  
(c) Scope of Study

1. Explain and discuss various types of research reports?
2. Describe the layout of a research report?
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
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MARKETING INFORMATION SYSTEM
Chapter 14 - Marketing Information System
Objectives
Marketing information system plays a very significant role in

marketing research. This system not only helps in building databases,
It also helps in enhancing the product quality, modifying product
features and improving service quality.

• Meaning and significance of Marketing information system
• Functions of MIS
• Utility of MIS
• Role of MIS in Marketing Department and Decision support
system.
Structure
14.1 Introduction
14.2 Meaning and definition of MIS
14.3 Need for marketing information system
14.4 Concept of marketing information system
14.5 Marketing intelligence system
14.6 Summary
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14.1 Introduction
Since the beginning of 21st centaury companies across the world have
been forced to acknowledge the growing powers of customers and the
steep increase in competition, which is as a result of globalization.
This has made most of the companies to seriously think about a
strategy which will help to retain existing customers and keep the
companies informed about potential customers, market trends,
marketing environment etc.
Under these circumstances building data bases of customers,

consumer behavior research, customer perception; knowing
information about all these areas became inevitable.
Marketing information system plays a very significant role in

marketing research. This system not only helps in building databases,
It also helps in enhancing the product quality, modifying product
features and improving service quality.
The data available to the company in many formats and unorganized

manner, also it receives information from various sources in many
different formats. This information coming from various places needs
to be organized and must be maintained in a structured manner, so it
can be put to use.
MIS ensures that the data is sorted or segregated in a proper manner

and systematically preserved so it can be used by people of the
organization to make necessary decisions.
This has become a necessity, as changing times and business

environment calls for accurate and speedy supply of information to
make quick decisions in marketing.
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In this particular chapter we start by explain the meaning and

definition of MIS, followed by concept of MIS and discuss the same in
details.
14.2 Meaning and Definition of MIS

A simple definition of MIS is “Management information system is the
one that supports managerial decision making by supplying relevant
information whenever it is required.”
This definition suggests that a substantial business data is stored in

the MIS-Department, and it is continuously updated. This data is
supplied to the managers when they need to make necessary
decisions.
Another definition made by George kress: “A Marketing information

system consists of people and/or Equipments, organized to provide
for the continuous, orderly collection and exchange of information
(internal and external) needed for making decisions in company’s
various activities.”
Today, with an emergence of internet and advancement in

information technology, there is a real information explosion similarly
the advancements are happening in data management systems,
speedy data transfers, data mining techniques etc. Such a huge
quantity of data made available and modern technology available to
manage the same, if not incorporated correctly then the entire sources
available and facilities will go futile. Therefore the MIS department
functions completely focused in obtaining data and storing them in a
manner which can be made easily available to the users of it.
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In the decision making process generally the data is required for three
different purposes.
(a) Planning: This information includes the data of the type, forecasts,
sales records, economic data, and demographic profiles, social and
political information etc.
(b) Information for – control: In order to ensure effective control in
the market, Marketers are interested in having access to weekly
reports, competitor activity reports, inventory reports; such
information will help a marketer to know the happenings in
business and market.
(c) Information for creating records: In order to create a record for
product performance, territory sales trends, sales representative
records, analysis of product feature acceptances, distributor
performance records.etc. This information is purely for the
purpose of research and analysis, providing inputs to the senior
management in making decisions.
This reiterates the fact that an effective marketing information system

must be such that it is able to identify, manage, and supply the
information in all above types as and when desired.
In many companies the systems may consists only sales analysis data,
which tracks the product from manufacturer through the distribution
chain. In other companies it may include information about the
consumers and effects of marketing variables on the consumption of
the product.
Research has demonstrated that images help shape a person’s

behaviour towards companies. This image will influence a person’s
inclination to buy the company’s product, pay attention to or believe
its communications, speak favorably of it to others, purchase or
recommend its products etc. Small exploratory studies are frequently
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conducted to develop hypothesis which may be test later on a larger

scale. (Taken from news letter of Crompton greaves)
14.3 The need of marketing information system

It is beyond doubt that every organization requires a continuous and
updated flow of information for making accurate and timely
marketing decisions.
Following are the advantages of having a marketing information

system:
• A system or a framework facilitates the conversion of the raw data
into meaning information.
• The marketers’ needs to evaluate the information made available in
a structured format to interpret them and make necessary valuable
decisions.
• When a system is established then it becomes possible for a
marketer or a top management to retrieve the information as and
when desired.
• A marketing system also help to classify the information according
to the purpose such as; planning recording forecasting etc. It can
also be classified it terms of- products, consumers, competition,
field force, sales volume etc.
It helps in organizing and obtaining the information an indicative

pattern, ensuring covering all activities such as smooth operations,
volumes trends past performances
Limitations of MIS
• The company should not put to much emphasis on computerized
data generation. Human interface and face to face dialogs are also
important.
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• To ensure the data generated out from the system is verified and
cross checked, manually checking system still hold as decisions are
required to be taken.
• Sometimes voluminous data are generated from the computer, data
which hold no connection is transferred to respective authorities
therefore manual control is sometimes necessary to be incorporated.
• Having flexible information to be supplied to all departments
becomes a task. Information required for every department will be
different from there own perspective.
• Continuous updating of system and also at the same time feeding
the information to all the departments is quite a task to managers.
• It is required to train the users of information on protocols of
obtaining the information and rules of communication etc.
• Information
!
(George kress model of MIS)
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14.4 Concept of marketing information (MIS) System

As illustrated in the above mentioned figure- is a concept of
marketing information system. The main components of the system
are as below:
(a) Internal reports.
(b) Marketing intelligence
(c) Analytics
(a) Internal reports: This refers to the internal reporting and

accounting system on issues such as sales, orders, invoices etc.
(b) Marketing intelligence system: This system provides all the
information about the relevant developments in the marketing
environment.
(c) Analytics: This refers to the software and computational advance
systems, techniques for analyzing data and problems statistically
as well creating data management systems.
The various activities carried out by MIS include: Discovery of information,

collection, collation interpretation, validation of data, filtration, storage of
data, transmission and dumping etc.
Various capabilities desired by MIS of a company:

• System should be well equipped for storage and retrieving of data.
• It should be able to generate standard and ad-hoc reports.
• *It should be able to provide formatted analysis reports.
• It should be able to demonstrate high quality graphics.
• It should be able to integrate all the major functional components of
MIS system.
The main focus of marketing information system is to provide the

information (internal and external) useful in making the marketing
decision and solving the marketing existing problems.
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The external information in MIS SHOULD INCLUDE: Information

regarding- target markets, Marketing channels, Competition,
Marketing environment etc.
Since the marketing managers decision making ability entirely

depends upon information to be received from MIS and marketing
research. Bothe the departments are needed to be flexible and efficient
to provide necessary inputs.MIS is also connected to corporate
strategic planning in a way for projecting future businesses and
providing direction to the company.
Factors responsible for effective MIS:

• Centralized system with access to information: All the information
points and components of activity are required to be unified and
centralized information system. The entire system should be
managed as a single window operation. This will ensure that whom
so ever within the firm wants to access the confidential and vital
information can get only authorized access to the data through the
system.
• Decision support system (DSS): The authorized personnel using the
system should be involved in some sort of decision making and
should have the right (authorization to obtain the information).
Thus the MIS will aid in marketing decision and also act as a
control function in decision support system.
• Compatibility with business environment of the firm: The system
should be such that it suits the needs of the firm on account of time,
usability and updation. The MIS shouldn’t be complex and
operational protocol must be flexible and user friendly, at eh same
time the system should be fully secured.
• Flexible, economical and efficient: The system must be cost effective
that is the operating cost should not exceed value of information.
The system should be designed in the manner, so that it can be
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altered in accordance with changing needs of the firm. The system

should be user oriented that understands the user’s needs and
quickly making the data available in the requested format.
Being selective and functionally supportive: The system must be

intelligent to evaluate the requirement of information received from
various sources and should be able to compile a data and process it
further. The system should be intelligent to highlight unnecessary
data and must have the provisions for separation, filtration, and
alteration in the data. The effective functioning of the system must
have a professionally experienced and qualified manager and
technical support backup to make sure smooth running operation.
14.5 Marketing intelligence systems

Marketing intelligence is a integral part of MIS and also marketing
research department. Marketing intelligence is responsible for
generating information of what is happening in the market. In the
marketing function of a company having a good marketing
intelligence is absolutely necessary. Marketing intelligence basically
provides information on changes in market condition, customer
desires, customer requirements, competition strategies and activities
and it uncovers unseen opportunities. Marketing intelligence can be
said to be the eyes and ears of the company. Sometimes marketing
intelligence is referred as surveillance unit. It aids marketing
department in making effective and timely decisions.
Marketing intelligence system consists of two vital components.

• Customer intelligence
• Competitor intelligence
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Customer intelligence: This refers to a system for providing useful

information on customers. This system focuses on customer profiles,
customer preferences, customer history, past trends, loyalties. It also
incorporates personal and demographic data base including
consumer behavior, buying habits, changes in the taste etc. such
information is very helpful on working out advertising and
promotional strategies. Such information is generally collected by
field sales person and authenticated by sales managers.
Competitor intelligence: This system works on core principle of

‘SWOT’. This system provides all round information on strengths and
weaknesses of the competitor. This system is completely focused on
strategies and tactics adopted by competitor. It keeps track of
competitors brand loyalty, brand equity and researches on rezones
behind competitors, customer’s loyalty.
The entire information collected through marketing intelligence

together with marketing information system (MIS) help in building
up a valuable information base. Based on which important marketing
decisions could be taken. Thus marketing intelligence system is a
system which keeps the user continuously inform about the
information from market and competition activities.
14.6 Summary
Marketing information system is very vital department of the firm in
today’s extremely competitive environment. Marketing information
system comprises of people, network and equipments to provide
smooth, continuous exchange of information (internal and external
needed in firms decision making process). Marketing decision makers
require authentic information for planning, controlling and research.
The user of MIS must be trained on system usage and should be able
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to make use of information for making valuable decisions. Every firm

has different needs of market information accordingly the MIS needs
to be designed and also one needs to be consider the suitability of MIS
to its users.
Marketing information system continuously keeps a track of customer

preferences and competition activities, and it communicate back to
the marketing decision makers.
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1. Marketing information supports top management in making
decisions through _____________. 
(a) Supplying necessary relevant information in an organized
manner 
(b) Providing primary and secondary data 
(c) Planning information for future
2. Customer intelligence is referred to 

(a) Vital customer information 
(b) Vital competitor information 
(c) Market information
3. Marketing information system continuously keeps a track of

_____________ and it communicates back to the marketing
decision makers.  
(a) Raw material price fluctuations 
(b) Customer preferences and competition activities 
(c) Latest in advertising techniques
4. The authorized personnel using _____________ system should be

involved in some sort of decision making and should have the
right (authorization to obtain the information). 
(a) Management information System 
(b) Decision support system 
(c) Marketing Research system
5. This refers to the software and computational advance systems,

techniques for analyzing data and problems statistically as well
creating data management systems. 
(a) MIS  
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(b) DSS  
(c) ANALYTICS
6. This refers to the internal reporting and accounting system on

issues such as sales, orders, invoices etc. 
(a) Management Report 
(b) Inventory Report 
(c) Internal Report
7. This system provides all round information on strengths and

weaknesses of the competitor. This system is completely focused
on strategies and tactics adopted by competitor. 
(a) Competitor information intelligence 
(b) Management information system 
(c) Market Analysis.
Activities for Students:

1. Design a market intelligence system for a new ice-cream
manufacturer.
2. Discuss a marketing intelligence system(MIS) using a schematic
diagram.
434
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
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MARKETING RESEARCH

! Prin. L.N. Welingkar Institute of Management Development & Research

Program Design and Advisory Team

Prof. B.N. Chatterjee Mr. Manish Pitke

Prof. Kanu Doshi Prof. B.N. Chatterjee

Prof. Dr. V.H. Iyer Mr. Smitesh Bhosale

Prof. B.N. Chatterjee Prof. Vineel Bhurke

Prof. Venkat lyer Dr. Pravin Kumar Agrawal

Prof. Dr. Pradeep Pendse Mrs. Margaret Vas

Prof. Sandeep Kelkar Mr. Anuj Pandey

Prof. Dr. Swapna Pradhan Course Editor

Prof. Bijoy B. Bhattacharyya Prof. B.N. Chatterjee

Mr. P.M. Bendre Course Coordinators

Mr. Ajay Prabhu Ms. Kirti Sampat

Mr. A.S. Pillai Mr. Kishor Tamhankar

COPYRIGHT © by Prin. L.N. Welingkar Institute of Management Development & Research.

NOT FOR SALE. FOR PRIVATE CIRCULATION ONLY.

1st Edition (May, 2014) 2nd Edition June 2015)

After studying this chapter you will be able to understand

Marketers often complain that they lack enough marketing

The information needed by marketing managers comes from three

1. Internal company information

circumstances, businesses often need to undertake speciﬁc studies to

The task of marketing research (MR) is to provide management with

Marketing managers make numerous strategic and tactical decisions

Traditionally, marketing researchers were responsible for providing

The DECIDE model conceptualizes managerial decision making as a

The Evolution of Marketing Research (MR)

practices in web data collection, such as click-through and exit rates.

In the new millennium, as the Internet continued to develop and

Having access to web data did not automatically provide companies

As information around the world became more accessible, increased

Today, Marketing Research has adapted to innovations in technology

This demand is driving marketing researchers to develop new

As personal mobile devices become more capable and widespread,

1.2 MEANING AND DEFINITION OF MARKETING

"Marketing research is the function that links the consumer,

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

Thus, marketing research may also be described as the systematic and

1.3 NATURE AND SCOPE OF MARKETING RESEARCH

• Consumer marketing research, and

Or, alternatively, by methodological approach:

• Qualitative marketing research, and

Consumer marketing research is a form of applied sociology that

First, marketing research is systematic. Thus, systematic planning is

Marketing research uses the scientiﬁc method in that data are

Marketing research is objective. It attempts to provide accurate

Organizations engage in marketing research for two reasons: (1) to

Problem identiﬁcation research is undertaken to help identify

problem. For example, the ﬁndings of problem solving research are

The Stanford Research Institute, on the other hand, conducts an

Standardized services are research studies conducted for different

Customized services offer a wide variety of marketing research

Limited-service suppliers specialize in one or a few phases of the

organizations maintain extensive interviewing facilities across the

• Coding and data entry services include editing completed

1.4 SIGNIFICANCE OF MARKETING RESEARCH

The importance of marketing research in management extends to

Toying with a new product idea, wanting to boost up your sales or

The need and importance of marketing research are depicted below.

! Need and Importance of Marketing Research

1. Marketing Research (MR) provides valuable data.

2. It studies provides data about consumer behaviour.

3. It helps to select suitable sales promotional techniques.