Business Research 2021 and 2019 Solution by Vivek

Q1) Bosch wishes to estimate the demand for dishwashers in India. Please outline your approach
towards this demand estimation.

My approach towards estimating the demand for dishwashers in India would be as follows:

1. Research the market: Look into market reports, industry trends, competitor analysis, and
consumer behaviour patterns related to dishwashers in India.

2. Identify target audience: Determine the target demographic, their needs and preferences, and
their purchasing power.

3. Collect data: Gather data from various sources such as market surveys, sales figures, and
customer feedback.

4. Analyse data: Use statistical techniques like regression analysis and time-series analysis to
understand the relationship between variables that affect demand for dishwashers.

5. Forecast demand: Based on the analysis, make a demand forecast for dishwashers in India for
a specified time period.

6. Validate the forecast: Verify the accuracy of the demand forecast by comparing it with actual
sales data.

7. Review and revise: Regularly review and revise the demand estimation as market conditions
change.
Q2) Your organization is planning to launch a new washing machine in India. Some initial feedback
is required in terms of design elements of the washing machine. As the marketing research head,
you have been asked to pitch in and design a consumer study.

After a discussion with your team, you have decided to use a partial conjoint model for this study.

a) Identify 6 factors and their levels that could be used to create different concepts.
b) Create concept cars that would be used by consumers to rate the different concepts.
c) What are the key outputs that you will obtain from this survey?
d) How is a conjoint methodology different from a direct rating method?

a) 6 factors and their levels that could be used to create different concepts for the washing machine
are:

1. Load capacity (e.g., 6 kg, 7 kg, 8 kg)

2. Type of drum (e.g., stainless steel, plastic)
3. Type of control (e.g., digital display, knobs)
4. Energy efficiency (e.g., 3-star rating, 5-star rating)
5. Program options (e.g., 10 programs, 20 programs)
6. Price (e.g., Rs. 15000, Rs. 20000, Rs. 25000)

b) Concept cars that would be used by consumers to rate the different concepts can be created by
combining the levels of the 6 factors. For example:

• Concept 1: 8 kg capacity, stainless steel drum, digital display, 5-star rating, 10 programs, Rs.
25000
• Concept 2: 6 kg capacity, plastic drum, knobs, 3-star rating, 20 programs, Rs. 15000

c) Key outputs that will be obtained from this survey are:

1. Consumer preferences for the different levels of the 6 factors

2. Importance of each factor to the consumers

3. Consumer preferences for the different concepts created from the 6 factors.

4. Trade-offs that consumers are willing to make between different factors.

d) A conjoint methodology is different from a direct rating method in that a conjoint study captures
how consumers make trade-offs between different factors. In a direct rating method, consumers rate
each factor separately, whereas in a conjoint study, consumers rate different concepts created from
the combination of factors. This provides more information on how consumers weigh the different
factors when making a purchasing decision.
Q3) The marketing manager of Haldiram is very happy with the success of brand extensions that
have been launched recently. He wants to plan for another 5 brand extensions in the next 5 years.
He has commissioned you to identify 8 extension categories that fit the brand. He will then short-
list 5 among those 8. Please define the research problem. Also outline all sources of information
that you will use to deliver a solution.

The research problem is to identify 8 extension categories that fit the brand of Haldiram and align with
the company's brand identity and values.

Sources of information that will be used to deliver a solution include:

1. Company brand identity and values: This information can be obtained through company
websites, marketing materials, and brand guidelines.

2. Market research: This will include gathering data on consumer preferences, spending
patterns, and trends in the food industry. This information can be obtained through surveys,
focus groups, and secondary sources such as industry reports and publications.

3. Competitor analysis: This will include studying the brand extension strategies of competitors
in the food industry and identifying areas of opportunity for Haldiram. This information can
be obtained through company websites, marketing materials, and industry reports.

4. Product portfolio analysis: This will include analysing the current product offerings of Haldiram
and identifying areas for potential brand extension. This information can be obtained through
internal company data and reports.

5. Consumer insights: This will include gathering insights into consumer needs, preferences, and
behaviours related to food and brand extensions. This information can be obtained through
focus groups, in-depth interviews, and surveys.

6. Trends analysis: This will include analysing trends in the food industry, such as changes in
consumer preferences, advancements in technology, and shifts in market demand. This
information can be obtained through secondary sources such as industry reports and
publications.

7. Historical brand extension success: This will include analysing the success of previous brand
extensions launched by Haldiram and identifying areas for improvement. This information can
be obtained through internal company data and reports.
Q4) A producer of a TV film says: “It has been 5 episodes, but the ratings of my program are still low.
What should I do?” Please outline a research design that will include:

a) Defining the research problem

b) Identify research information required to answer this question
c) Sources of information, both primary and secondary.

a) Defining the research problem: The research problem is to determine the reasons for the low ratings
of the TV film after 5 episodes.

b) Research information required: The research should gather information on the following:

1. Understanding of the target audience

2. Perception of the program by the target audience

3. Awareness of the program among the target audience

4. Competitor analysis

5. Factors affecting TV viewing behaviour.

c) Sources of information:

Primary sources:

1. Surveys of the target audience

2. In-depth interviews with the target audience

3. Focus groups with the target audience.

Secondary sources:

1. Television ratings data

2. Competitor program ratings data

3. Industry reports on TV viewing behaviour

4. Social media analysis of the program and its competitors

Q5) An insurance company is reviewing its current policy rates. When originally setting the rate,
they believed that the average claim amount was Rs. 9000. They are concerned that the true mean
is higher than this, because they could potentially lose a lot of money. They randomly select 40
claims and calculate a sample mean of Rs. 9750. Test to check if the insurance company should be
concerned knowing that the standard deviation of all claims is Rs 2500.

To test if the insurance company should be concerned that the true mean is higher than the original
estimate of Rs. 9000, we can perform a hypothesis test. The null hypothesis would be that the true
mean is equal to the original estimate of Rs. 9000, and the alternative hypothesis would be that the
true mean is greater than Rs. 9000.

The test statistic can be calculated as:

z = (9750 - 9000) / (2500 / sqrt(40)) = 3.2

Using a standard normal table and a significance level of 0.05, the critical value for a one-tailed test in
the positive direction is 1.64. Since our calculated z-value of 3.2 is greater than the critical value, we
reject the null hypothesis and conclude that the true mean is indeed greater than Rs. 9000.

Therefore, the insurance company should be concerned that the true mean claim amount is higher
than their original estimate, as there is evidence to suggest that the true mean is indeed higher.
Q6)

Calculated Expected frequency

The expected frequency for row and column is:

Females wearing specs:

9 𝑥 11
= 3.19
31
Females not wearing specs:
9 𝑥 20
= 5.81
31
Males wearing specs:
22 𝑥 11
= 7.81
31
Males not wearing specs:
22 𝑥 20
= 14.19
31

Create a table with the observed and expected frequencies.

Observed Expected
Female wearing specs 4 3.19
Females not wearing specs 5 5.81
Males wearing specs 7 7.81
Males not wearing specs 15 14.19
 Calculate O – E

Observed Expected O-E

Female wearing specs 4 3.19 0.81
Females not wearing specs 5 5.81 -0.81
Males wearing specs 7 7.81 -0.81
Males not wearing specs 15 14.19 0.81

Calculate (𝑶 − 𝑬)𝟐

Observed Expected O-E O-E sq

Female wearing specs 4 3.19 0.81 0.66
Females not wearing specs 5 5.81 -0.81 0.66
Males wearing specs 7 7.81 -0.81 0.66
Males not wearing specs 15 14.19 0.81 0.66

(𝑶−𝑬)𝟐
Calculate
𝑬

Observed Expected O-E O-E sq 〖(O-E)〗^2/E

Female wearing specs 4 3.19 0.81 0.66 0.21
Females not wearing 5 5.81 -0.81 0.66 0.11
specs
Males wearing specs 7 7.81 -0.81 0.66 0.08
Males not wearing 15 14.19 0.81 0.66 0.05
specs

Calculate Χ2

𝑋 2 = 0.21 + 0.11 + 0.08 + 0.005

𝑋 2 = 0.45
Calculate chi-square.

X2=0.09
 For a chi-square test of independence, the df is (number of variable 1 groups − 1) * (number of
variable 2 groups − 1).

Degrees of freedom = 1

Significance level = 0.5

Critical value using chi-square table = 3.84

Compare the chi-square value to the critical value.

x2 = 0.09

Critical value = 3.84

Since X2 (0.09) is lesser than critical value (3.84) then the null hypothesis cannot be rejected and the
variables are considered independent.

Q7) Explain the types and process of conducting packaging research.

Types of Packaging Research:

1. Concept Testing: Evaluating new packaging designs and ideas before launching.

2. Usability Testing: Examining how consumers interact with packaging in real-world scenarios.

3. Material Testing: Testing the physical properties of packaging materials.

4. Shelf-Life Testing: Evaluating the shelf life of packaged products under various conditions.

5. Consumer Research: Gathering feedback from consumers about packaging design,

functionality, and impact on purchasing decisions.

Process of Conducting Packaging Research:

1. Define research objectives and goals.

2. Determine target audience and sample size.

3. Choose appropriate research method (e.g., surveys, focus groups, experimentation).

4. Develop and administer research tools (e.g., questionnaires, prototypes).

5. Collect and analyse data.

6. Present findings and make recommendations for improvement.

Q8) Explain the types and process of conducting pricing research.

Pricing research is the process of collecting and analysing data to determine the optimal price for a
product or service. There are several types of pricing research, including:

1. Conjoint Analysis: A research method where participants are asked to rate different product
features and prices to determine their preferences and trade-offs.

2. Price Elasticity: A research method that examines how changes in price affect consumer
demand for a product or service.

3. Price Sensitivity Measurement: A research method that measures consumer response to

different price points for a product or service.

4. Customer Surveys: A research method where customers are asked about their perceptions
and attitudes towards different prices for a product or service.

5. Competitor Analysis: A research method that examines the prices of similar products or
services offered by competitors.

The process of conducting pricing research typically involves several steps:

1. Define the research objective: Determine the purpose and goals of the pricing research.

2. Develop a research plan: Determine the research method, sample size, and data collection
techniques to be used.

3. Collect data: Use the chosen research method to collect data from customers, competitors,
or other sources.

4. Analyse data: Analyse the data collected to determine consumer preferences and attitudes
towards different price points.

5. Determine the optimal price: Use the insights gained from the data analysis to determine the
optimal price for the product or service.

6. Implement the price: Implement the recommended price and monitor its impact on consumer
behaviour and sales.
Q9) What is U&A research and what is its importance in marketing management?

U&A (Usage and Attitude) research is a type of market research that examines consumer behaviour
and attitudes towards a product or service. The research typically involves surveying consumers about
their usage of a product or service, their level of satisfaction, and their attitudes and perceptions
towards it.

The importance of U&A research in marketing management is as follows:

1. Understanding Consumer Needs: U&A research provides valuable insights into consumer
needs and preferences, allowing marketers to better understand what consumers are looking
for in a product or service.

2. Improving Product Development: The data collected through U&A research can inform
product development and improvement, ensuring that products are designed to meet the
needs and preferences of consumers.

3. Guiding Marketing Strategies: The insights gained from U&A research can be used to develop
effective marketing strategies, such as identifying target markets, determining promotional
strategies, and choosing appropriate distribution channels.

4. Measuring Customer Satisfaction: U&A research allows marketers to measure customer

satisfaction with a product or service and identify areas for improvement.

5. Tracking Market Trends: U&A research provides a window into consumer behaviour and
attitudes over time, allowing marketers to track market trends and adjust their strategies
accordingly.

Q10) Explain different types of sampling methods.

There are several types of sampling methods that can be used in research, including:

1. Simple Random Sampling: A method where each member of the population has an equal
chance of being selected.

2. Systematic Sampling: A method where samples are selected at regular intervals from the
population.

3. Stratified Sampling: A method where the population is divided into subgroups (strata) based
on some characteristic, and a random sample is selected from each stratum.

4. Cluster Sampling: A method where clusters of participants are selected at random and then
all participants within the selected clusters are included in the sample.

5. Convenience Sampling: A method where participants are selected based on their accessibility
or willingness to participate.

6. Multi-Stage Sampling: A method that combines two or more types of sampling methods, such
as stratified sampling followed by simple random sampling.

7. Quota Sampling: A method where the sample is selected based on pre-determined

proportions of certain characteristics in the population.
 8. Purposive Sampling: A method where participants are selected based on specific criteria, such
as those with a particular expertise or experience.

Q11) Explain the advantages and disadvantages of primary and secondary data.

Advantages of primary data:

1. Freshness: The information collected is up-to-date and relevant to the research question.

2. Relevance: The data collected is specifically tailored to the research question and therefore
highly relevant.

3. Control: The researcher has complete control over the data collection process and can ensure
that data is collected in a consistent and accurate manner.

4. Flexibility: The researcher can modify the data collection process if necessary to ensure that
the information being collected is relevant and accurate.

Disadvantages of primary data:

1. Cost: Collecting primary data can be expensive and time-consuming.

2. Bias: The researcher may unconsciously influence the data collection process, leading to
biased results.

3. Expertise: Collecting primary data requires specialized skills and knowledge and may require
the assistance of experts.

Advantages of secondary data:

1. Cost: Collecting secondary data is usually cheaper and less time-consuming than collecting
primary data.

2. Accessibility: Secondary data is often readily available from a variety of sources, such as
government reports, academic journals, and online databases.

3. Historical context: Secondary data provides a historical context for the research question,
allowing for a better understanding of trends and patterns over time.

Disadvantages of secondary data:

1. Relevance: The data collected may not be directly relevant to the research question and may
require additional processing and analysis to make it useful.

2. Quality: The quality of secondary data can be difficult to assess, and the data may be outdated
or inaccurate.

3. Bias: The data may be biased due to the limitations of the data collection method, or the
sources used.
Q12) Explain the process of carrying out consumer satisfaction study.

A consumer satisfaction study is a research method used to evaluate the level of satisfaction of
customers with a product or service. The following steps outline the process of carrying out a
consumer satisfaction study:

1. Define the objectives: Clearly define what you want to measure and what information you
hope to gain from the study.

2. Choose the research method: Choose a research method that is appropriate for the objectives
of the study, such as a survey, focus group, or in-depth interview.

3. Select the sample: Choose a representative sample of consumers to participate in the study.

4. Design the questionnaire or interview questions: Create questions that will measure
consumer satisfaction with the product or service being studied.

5. Collect data: Administer the questionnaire or conduct the interviews with the selected
sample.

6. Analyse the data: Use statistical methods to analyse the data collected and summarize the
results.

7. Interpret the results: Evaluate the results to determine the level of consumer satisfaction with
the product or service and identify areas for improvement.

8. Report the results: Present the findings in a clear and concise manner, including
recommendations for improving consumer satisfaction.

9. Implement changes: Based on the results of the study, implement changes to improve
consumer satisfaction.

10. Monitor progress: Regularly monitor consumer satisfaction levels to ensure that the changes
made have had a positive impact.
Q13) What is demand estimation? What question does marketing have which requires a demand
estimation study? Explain the research process that you would establish to answer these questions.

Demand estimation refers to the process of predicting the quantity of a product or service that
consumers are willing and able to buy at various prices.

A common marketing question that requires demand estimation is: "What is the likely demand for our
product at different price points?"

To answer this question, the research process would involve the following steps:

1. Define the research objectives and target market.

2. Collect data: use secondary data sources (e.g., market reports) and primary data sources (e.g.
surveys, focus groups)

3. Choose an appropriate demand estimation method (e.g., linear regression, log-linear models,
elasticity models)

4. Analyse data and estimate demand at different price points.

5. Validate the results by comparing the estimated demand with actual sales data.

6. Present findings and recommendations to the stakeholders.

Q14) Outline the step-by-step approach you would use for the following:

a) A simple random sample of 150 management students in India

b) A sample of 500 light and heavy consumers of beer from shopping data available from modern
stores.

Simple Random Sample of 150 Management Students in India:

1. Define the population: Management students in India

2. Determine the sample size: 150

3. Create a list of the population: e.g., by using student directories from Indian management
schools.

4. Use a random number generator to select 150 individuals from the list.

5. Contact selected individuals and conduct the survey or gather data.

b) Sample of 500 Light and Heavy Consumers of Beer from Shopping Data:

1. Define the population: shoppers who purchase beer in modern stores.

2. Determine the sample size: 500.

3. Access the shopping data available from modern stores to identify light and heavy beer
consumers
 4. Select 500 light and heavy beer consumers randomly from the shopping data

5. Analyse the data to identify patterns and trends among light and heavy beer consumers.

Q15) What kind of behaviour does a satisfied customer exhibit? What kind of research process
would you employ to measure customer satisfaction?

A satisfied customer typically exhibits positive behaviour such as repeat purchases, positive word-of-
mouth recommendations, and a willingness to pay a premium for the product or service.

To measure customer satisfaction, the following research process can be employed:

1. Define the research objectives and target audience

2. Develop a questionnaire or survey instrument to measure customer satisfaction

3. Administer the survey to a sample of customers (e.g. through online surveys, in-person
interviews, or phone surveys)

4. Analyse the data to identify patterns and trends in customer satisfaction levels

5. Calculate satisfaction scores using statistical techniques (e.g. mean, median, standard
deviation)

6. Present findings and recommendations to the stakeholders.

7. Implement changes to improve customer satisfaction, if necessary, and repeat the process to
monitor progress over time.

Q16) In a brand preference study of 500 consumers, 2600 prefer Brand A, while the rest prefer Brand
B. Is the preference for Brand A significantly different from Brand B?

To determine whether the preference for Brand A is significantly different from Brand B, a statistical
test such as a chi-square test of independence would be appropriate.

The null hypothesis in this case would be that there is no difference in preference between Brand A
and Brand B, and the alternative hypothesis would be that there is a difference.

The chi-square test would compare the observed preference for Brand A and Brand B with the
expected preference if there was no difference in preference. A significant result would indicate that
the preference for Brand A is different from Brand B.
 Q17)

Type of ticket Domestic International Total

First Class 29 22 51
Business class 95 121 216
Economy 518 135 653
Total 642 278 920

Calculated Expected frequency

The expected frequency for row and column is:

First Class DT = 51x642/920 = 35.6

First Class INT = 51x278/920 = 15.41

Business Class DT = 216x642/920 = 150.73

Business Class INT = 216x278/920 = 65.27

Economy DT = 653x642/920 = 455.68

Economy INT = 653x278/920 = 197.32

Observed Expected O-E O-E sq (O-E)^2/E

First Class DT 29 35.6 -6.6 43.56 6
First Class INT 22 15.41 6.59 43.43 2.82
Business Class DT 95 150.73 -55.73 3105.83 20.61
Business Class INT 121 65.27 55.73 3105.83 47.58
Economy DT 518 455.68 62.32 3883.78 8.52
Economy INT 135 197.31 -62.31 3882.54 19.68

Calculate Χ2

X^2= 6+2.82+20.61+47.58+8.52+19.68

X2= 105.21

Calculating Chi square

X2=105.21/920

=0.11

Df= (3-1)*(2-1)=2

Significance level = 0.5

Critical value using chi-square table = 5.991

Compare the chi-square value to the critical value.

x2 = 0.11

Critical value = 5.991

Since X2 is lesser than critical value then the null hypothesis cannot be rejected and the variables
are considered independent.