UNIT-I MARKETING RESEARCH

Meaning of Research
Research means to search for knowledge. It is a scientific and systematic search for information on a
particular issue. It is also called the art of scientific investigation. Research is a purposeful
investigation. It provides a structure for decision making. It provides an analytical framework for the
subject matter of investigation.
Definition of Research
According to Robert Ross, "research is essentially an investigation, a recording and an analysis of
evidence for the purpose of gaining knowledge." It can generally be defined as a systematic method
of finding solutions to problems.
Features of Research
1.It means the discovery of new knowledge
2. Is essentially an investigation
Is related with the solution of a problem
It is based on observation or experimental evidences.
It demands accurate observation or experimentation. In research, the researchers try to find out
answers for unsolved questions.
It should be carefully recorded and reported.
Classification of Research
Research can be classified into two broad categories :
1. Basic Research
2. Applied Research
1.Basic Research : Basic research Basic research is also called fundamental or pure research. As the
name itself refers, Basic Research is of basic nature which is not carried out in response to a
problem. It is more educative, towards understanding the fundamentals and aim at expanding the
knowledge base of an individual or organisation. It does not have any commercial potential.
2. Applied Research: Applied research Applied Research on the other hand is carried out to seek
alternate solutions for a problem at hand. Applied research is done to solve specific, practical
questions; its primary aim is not to gain knowledge. It specifies possible outcomes of each of the
alternatives and its commercial implications. Applied research can further be divided into:
1. Problem-solving research: It involves research oriented towards a crucial problem facing the
organisation which may be issue specific.
Ex: How do we improve the communication skills of our employees?
2.Problem-oriented research: The research is oriented towards a crucial problem facing the
organisation. It is undertaken inside the organisation or by an external
consultant on its behalf. This research is conceptual in nature and newer innovative techniques of
problem-solving are applied.
Ex: How to improve the production yield from machine X using modern techniques?
Meaning of Marketing Research
The Marketing Research is the systematic collection, analysis, and interpretation of data pertaining
to the marketing conditions. The basic reason for carrying out the marketing research is to find out
the change in the consumer behaviour due to the change in the elements of the marketing mix
(product, price, place, promotion).
Definition of Marketing Research
Marketing research is defined numerous ways. Let us consider some important definitions to
understand the meaning of marketing research. According to American Marketing Association
(AMA), "Marketing Research is the systematic gathering, recording and analysing of data about
problems relating to the marketing of goods and services."
According to Philip Kotler, "Marketing research is a systematic problem analysis, model building and
fact finding for the purpose of improved decision-making and control in the marketing of goods and
services."
Objectives of Marketing Research
1. Proper Planning Marketing research enables the planning of sales and other marketing
programmes. The sales forecasts will be made on the basis of data collected from the market and
other activities will be planned by keeping these figures in mind.
2.Controlling Marketing Costs: A systematised approach based on facts collected in marketing
research will help in controlling costs on advertising, selling and distribution.
3. Exploiting New Markets : Marketing research collects information about new areas where the
product can be marketed. The tastes of consumers, the type of products already in the market,
purchasing power of buyers will enable the marketing men to try the new markets.
4.Studying Marketing Competition : Marketing programmes will be successful only if we know the
strength of our competitors. The marketing strategies adopted by the competitors should be
counted to sell the products. Marketing research will be helpful in collecting every information about
the competitors.
5. Studying Impact of External Factors: A number of external factors such as Government Policies,
spending habits, purchasing power of consumers, substitutes available will influence marketing plans
and programmes. The impact of external factors should be regularly analysed with the help of
information collection in marketing research.
6. Studying Consumer Needs : Marketing research aims to ascertain the actual needs of the
consumers for a product which is already put on the market to manufacture a similar but more
suitable product. The failure of a product should also be enquired to help future planning.
medicine
NEEDS AND IMPORTANCE OF MARKET RESEARCH
Marketing research helps company and decision makers as follows:
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 situation.
This market-related data is used to find out :
1. The present and future demand and supply position.
2. The level of competition and steps taken to control it.
3. Market opportunities.
4. The cause of fall in sales level.
5.Evaluates marketing performance : Marketing research helps the company to evaluate its
marketing performance and to take steps to improve it.
Marketing research is used to find out the effect of price, package, brand name, etc. on sales. It is
used to find consumers' reaction towards the company's product. It is used to evaluate the
inventory and pricing policies. It is also used to evaluate the effectiveness of advertising, sales
promotion techniques, channels of distribution, etc.
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 expansions
programs.
It benefits all i.e. it benefits the company, distributor, advertising agency, consumer, government
and the entire society.

NATURE / FEATURES OF MARKETING RESEARCH

1.Wide and comprehensive scope: Marketing research has a very wide scope. It includes product
research, packaging research, pricing research, market research, sales research, etc. It is used to
solve marketing problems and to take marketing decisions. It is used to make marketing policies. It is
also used to introduce new products in the market and to identify new markets. Marketing research
is used to select channels of distribution, in advertising strategy, for sales promotion measures, etc.
2.Systematic and scientific : Marketing research is conducted in a step-by-step manner. It is
conducted in an orderly fashion. Therefore, it is systematic. Marketing research uses scientific
methods. Thus, it is also scientific.
3. Science and art: A Science collects knowledge (data) while an Art uses this knowledge for solving
problems. Marketing research first collects data. It then uses this data for solving marketing
problems. Therefore, it is both, a Science and an Art.
4. Collects and analyzes data: Marketing research gathers data accurately and objectively. It first
collects reliable data and then analyses it systematically and critically.
5.Continuous and dynamic process: The company faces marketing problems throughout the year.
So, Marketing research is conducted continuously. It continuously va del Collects up-to-date data for
solving the marketing problems. Large companies have their own marketing research departments.
They conduct Marketing research continuously throughout the year. Therefore, Marketing research
is a continuous process. It is a dynamic process because it goes on changing. It does not remain static
(the same). It uses new methods and techniques for collecting, recording and analyzing the data.
6.Tool for decision-making: The marketing manager has to take many decisions. For this, he requires
a lot of data. Marketing research provides correct and up-to-date data to the marketing manager.
This helps him to take quick and correct decisions. Therefore, Marketing research is an important
tool for decision-making.
7.Benefits company and consumers: Marketing research is useful to the company in many ways. It
increases the sales and profits of the company. It helps the company to fight competition and boost
its goodwill in the market. It reduces the marketing risks. In short, Marketing research brings success
to the company. It also brings the company closer to the consumers. It gives convenience and
satisfaction to the consumers.
8.Reduces gap between producers and consumers: Marketing research informs producers about the
needs and wants of the consumers. The producers produce goods according to the needs and
demands of the consumers. This brings satisfaction to the consumers and in return producers make
good profits. So, Marketing research reduces the gap between the producers and the consumers.
9. Uses different methods: Marketing research uses three methods for collecting data, viz., Survey
Method, Experiment Method and Observation Method. All three methods are scientific. The
researcher has to use a suitable method for collecting a reliable data.

10. Has few limitations : Marketing research has few limitations too. It is not an exact science. So, it
does not give accurate results. It provides suggestions and not solutions.
It is also a costly and time-consuming process.
SCOPE/BRANCHES/AREAS OF MARKETING RESEARCH
1.Product Research : Product means the goods and services which are sold to the consumers. It
includes consumer products and industrial products. Product research studies the individual
product. It studies the making and marketing of the product. It studies the colour, size, shape,
quality, packaging, brand name and price of the product. It also deals with product modification,
product innovation, product life cycle, etc. The product is modified (changed) as per the needs and
wants of the consumers. Therefore, as the product will not fail in the market.
2.Consumer Research : Consumer is the person who purchases the goods and services. The
consumer is the king in the market. Consumer research studies consumer behaviour. It studies the
consumers needs, wants, likes, dislikes, attitude, age, sex, income, location; buying motives, etc. This
data is used to take decisions about the product, its price, place and promotion.
3.Packaging Research : Packaging research is a part of product research. It studies the package of the
product. It improves the quality of the package. It makes the package more attractive. It makes the
package more convenient for the consumers. It reduces the cost of packaging. It selects a suitable
method for packaging. It also selects suitable packaging material.
4.Pricing Research : Pricing Research studies the pricing of the product. It selects a suitable method
of pricing. It fixes the price for the product. It compares the companies price with the competitor's
price. It also fixes the discount and commission which are given to middlemen. It studies the market
price trends. It also studies the future price trends.
5.Advertising Research: Advertising research studies the advertising of the product. It fixes the
advertising objectives. It also fixes the advertising budget. It decides about the advertising message,
layout, copy, slogan, headline, etc. It selects a suitable media for advertising. It also evaluates the
effectiveness of advertising and other sales promotion techniques.
6.Sales Research : Sales research studies the selling activities of the company. It studies the sales
outlets, sales territories, sales forecasting, sales trends, sales methods, effectiveness of the sales
force, etc.
7.Distribution Research : Distribution research studies the channels of distribution. It selects a
suitable channel for the product. It fixes the channel objectives. It identifies the channel functions
like storage, grading, etc. It evaluates the competitor's channel.
8.Policy Research: Policy research studies the company's policies. It evaluates the effectiveness of
the marketing policies, sales policies, distribution policies, pricing policies, inventory policies, etc.
Necessary changes, if any, are made in these policies.
9.International Marketing Research : International marketing research studies the foreign market. It
collects data about consumers from foreign countries. It collects data about the economic and
political situation of different countries. It also collects data about the foreign competitors. This data
is very useful for the exporters.
10.Motivation Research : Motivation research studies consumers' buying motives. It studies those
factors that motivate consumers to buy a product. It mainly finds out, Why the consumers buy the
product? It also finds out the causes of consumer behaviour in the market.
11. Market Research: Market research studies the markets, market competition, market trends, etc.
It also does sales forecasting. It estimates the demand for new products. It fixes the sales territories
and sales quotas.
12. Media Research : Media research studies various advertising media. The different advertising
media are television (TV), radio, newspapers, magazines, the internet, etc. Media research studies
the merits and demerits of each media. It selects a suitable media for advertising. It does media
planning. It also studies media cost. It helps in sales promotion and to avoid wastage in advertising.
ROLE OF MARKETING RESEARCH IN DECISION MARKET
i)Marketing research helps the marketing manager link the marketing variables with the
environment and the consumers.
ii)The task of marketing research is to provide management with relevant, accurate, reliable, valid
and current information.
iii)Competitive marketing environment and the ever-increasing costs attributed to poor decision
making require that marketing research provide sound information.
iv) 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.
v)Marketing research 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.
vi) On-going marketing research programs provide information on controllable and non controllable
factors and consumers; this information enhances the effectiveness of decisions made by marketing
managers.

RESEARCH PROCESS
Research process refers to various decision stages involved in a research project and the relationship
between those stages. A researcher has to proceed systematically in the already planned direction
with the help of number of step in sequence.
Steps in the Research Process
a.Formulating a research problem: First and foremost step in the research process is the
identification of the correct problem area and the issue which needs to be researched. The more
specific and clear we are in formulation of the research problem, al the better it is as everything that
follows in the successive steps of the research process is greatly influenced by the way the research
problem has been formulated. Hence, this step needs to be analyzed very critically and carefully.
It is extremely important that to formulate the research problem in the light of the financial
resources and time available to ones disposal for the research. Moreover, knowledge and expertise
of the individual conducting the research is also a factor requiring due consideration before
finalization of the problem or issue to be researched.
b.Conceptualizing a research design: The main function of a research design is to make a decision,
depict, give explanation for and explain how you will find answers to your research questions.
Literature review is a very important part of the research process must be done prior finalizing our
conceptual frame work for the research design. The research design sets out the logic of your
enquiry. Although these are not the essential element of research design but important elements of
a research design have been briefly touched upon in the following sub paragraphs;
i) The logistical arrangements that you propose to under-take, during the course of research must be
known at this stage keeping in view the effort available and the finances available for the research
ii) The measurement procedures like questionnaires to be developed or interviews to be conducted
also need clarity
iii) The sampling strategy like random or non random sampling technique or any other method/
technique to be adopted during research should be planned during this step and how should we
analyze the data gathered
iv) The frame of analysis meaning thereby as to how one plans to analyze the data gathered
employing suitable techniques and software should be planned at this stage. Examples for analysis
can be tables, pie charts, excel sheet or some customized analysis software
v)The tentative time-frame required for the conduct of the research in question also requires due
consideration during this step.
c.Constructing an instrument for data collection: The data collection tools are generally in the form
of questionnaires, observation forms or interviews conducted from a sample of people. This indeed
is the first practical step towards the research study. In case of primary data, questionnaires already
developed by the people during earlier studies or custom made new questionnaires to meet
requirement of one's research can be used as an instrument for data collection however in case of
secondary data, the collection of data can be undertaken by developing a form and extracting
relevant data from the existing data available. In order to establish the efficacy of the instrument
developed for data collection; field testing/pre-testing also forms an integral part of instrument
construction.
d.Selecting a sample : The basic aim of selecting a sample and the fundamental principle in sampling
is that a relatively smaller sample can genuinely represent the population under study with
adequate degree of probability. The accuracy of the findings will largely depend on the way the
sample has been selected for research and analysis purposes. For sampling purposes, random /
probability or non random / non sampling designs can be employed. One must know the
applicability of various techniques in different scenarios in order to ascertain its suitability for our
research. As a matter of principle, while sampling two key factors that must be taken care off are:
i) Avoidance of bias in the selection of a sample for the research.
ii) Achieving maximum precision against available resources.
e)Writing a research proposal. This is indeed the Consolidation / compilation of the all the
preparatory work in the form of a report. in a way that provides adequate information about your
research study, for your research supervisor and others. This overall plan, called a research proposal.
It tells the reader about your research problem and how you are planning to investigate it. Broadly, a
research proposal's main function is to detail the operational plan for obtaining answers to your
research questions.
f.Collection of data through your instrument: In this phase one actually collects the data. Collection
of data through any one of the methods like conducting interviews, mailing out a questionnaire,
conduct nominal/focus group discussions or making observations.
g.Processing and displaying data. In this phase the data collected is processed manually or using
software and is subsequently displayed in tabular or graphical form etc. If your study is purely
descriptive, you can write your report on the basis of your notes, manually analyze the contents of
your notes (content analysis), or use a computer u program such as NVivo for this purpose.
h)Writing a research report. Writing the report is the last step of the research process. This report
tells the world what you have done, what you have discovered and what conclusions you have
drawn from your findings. If you are clear about the whole process, you will also be clear about the
way you want to write your report. Your e report should be written in an academic style and be
divided into different chapters and sections.
RESEARCH DESIGN
A research design is a framework or blueprint for conducting the research project. It gives details, of
the procedures necessary for obtaining the information needed to structure or solve research
problems. Although a broad approach to the problem has already been developed, the research
design specifies the details-the nuts and bolts of implementing that approach. A research design lays
the foundation for conducting the project. A good research design will ensure that the business
research project is conducted effectively.
Meaning of Research Design
The research design is a framework or blueprint for conducting the marketing research project. It
specifies the precise details of the procedures necessary for obtaining the required information. It is
important to have a good research design in order to ensure that the marketing research project is
conducted effectively and efficiently.
Definition of Research Design
According to Kerlinger, "research design is the plan, structure and strategy and strategy of
investigation conceived so as to obtain answers to research questions and to control variance"
Research design is in fact the conceptual framework within which the research is conducted.
According to Bernard Philips he research design "as a blue print for the collection, measurement and
analysis of data".
Features of Research Design
a.Neutrality: The results collected in research should be free from bias and neutral. Discuss and get
evaluated your conclusion with experienced multiple individuals and consider those who agree with
your research's results.
b.Reliability: Research design should be able to ensure the standards results by indicating how
research questions can be formed because a researcher will always want the same results every
time, he performs an experiment.
c.Validity: The validity of a research design is used to calculate the expected results and to estimate
the truthfulness of the result. In most cases, researchers opt for their own definition when it comes
to what is considered valid. Therefore, the questionnaire prepared from the research design is
considered valid.
d.Generalization Generalization is one of the most important key characteristics of research design.
The results obtained from the research should be applicable to a population and not just to a limited
sample.
Elements of Research Design
i)Type of data: The type of information to be collected the light marketing research objectives and
type of research (exploratory, descriptive, causal) considered.
ii)Source of Data: The possible source of data (Primary, Secondary Commercial) for securing
information are considered.
iii)Form of Data: It refers to specification of how data are to collected. For example data can be
gathered by observation method, sales audit, interviews with help many qualitative and quantitative
forms of data collection instruments.
iv)Nature of Data Selection and Analysis Plan : relates whether research data are to be collected at
single point or different points of time. The former referred as cross sectional and latter is called
time series data. The issue like sample size, sampling method to be followed are considered here.
The type of analytical techniques to be followed for analysis of data are also considered at this stage.
Components of Research Design
Steps in Research Design Process :
1. Determining sources of data : The first step is to determine the sources of data to be used. The
marketing researcher has to decide whether he has to collect data or depends on exclusively on
secondary data. Some times, the research study is depends on both secondary and primary. Some
times he can depends upon collecting fresh date.
2.Designing data collection forms: Once the decision in favour of collection of primary data is taken,
one has to decide the mode of collection. There are two methods available are
a. Observational method
b. Survey method
Observation method : This method suggests that data are collected through one's observation. If the
researcher is keen observer, with integrity he would be in a position to observe and record data
faithfully and accurately. While the observation method may be suitable incase of some studies,
several things of interest such as attitudes, opinions, motivations and other intangible states of mind
can not observed.
b) Survey method: In marketing research, field surveys are commonly used to primary data form the
respondents. This survey can be 1) personal 2) telephonic 3) by mail 4) by diary.
Personal and mail surveys are more frequently used in India. Telephonic survey is suitable when very
limited information is sought in a short period of time personal interviews are suitable when
detailed information is to be collected. Sometimes a combination of two or more methods could
also be used.
3.Determining sample design and sample size : Another aspect which forms a part of research
process is the sampling plant. When the marketing researcher has decided to carry out a field survey
has to decide where it is to be a simple survey. In almost all cases, a sample survey is undertaken on
account of overwhelming advantages over a census survey.
4.Organizing and conducting the field survey: The next step is to organize and conduct the field
survey. Two important aspects should be looked into interviewing and the supervision of field work.
Interview task is very simple but it very difficult in marketing research. Supervision of field work is
equal important to ensure timely and proper completions of the field survey.
5.Processing and analyzing the collected data : Once the field survey is over and question have been
received the next task is to aggregate -the data in a meaning full manner. A number of tables are
prepared to bring out the main characteristics of the data. The researcher should have a well
thought out frame work for processing and analyzing data, and this should be done prior to the
collection. While designing the research study, the researcher should give adequate thought to the
use of particular analytical techniques.
6. Preparing the research report : Once the data has been tabulated. Interpreted and analyzed, the
marketing researcher is require and to prepare his report embodying the findings of the research
study and recommendations. The research should follow the main principles of writing a report,
some of these principles are objectivity, clarity in the presentation of ideas and use of chart and
diagrams. The essence of a good research report is that it effectively communicates its research
findings.
Errors in Research Design
Broadly speaking the errors are of two types
A) Research Errors
1. Sampling Errors: Frequently marketing research studies are based on samples of people or
products or stores. The result emerging from such studies are then generalized i.e. applied to the
entire population. The study may give a different average than the actual average if the entire
population is covered. This difference between the sample value and the corresponding population
value is known as the sampling error.
2. Non-sampling errors : Non sampling errors as the name implies all those errors which occur in
different states of research except in the selection sampling. A non sampling error can arise right at
the beginning when the problem is defined wrongly. It can also occur in any of the sub sequent
stages such as in designing a question are, non response of the question are in the analysis and
implementation of data etc.
B)Interviewer Error
1. Respondent selection error: This occurs when interviewers select respondents other than those
specified by the sampling designer in a manner in consistent with the sampling design.
2.Questioning error: This denotes errors made in asking questions of the respondents or in not
probing when more information is needed.
3. Recording error: This error occurs on account of interviewer's influence in conducting an interview
or wrong recording by him. By putting emphasis on a certain word or phrase in a questionnaire,
interviewers can influence respondents to answer in a particular way. Interviewers sometimes even.
4.Cheating error: This arises when the interviewer fabricates answers to a part or all of the
interview.
C) Respondent Error
1.Inability error: This results from the respondents inability to provide accurate answers,
respondents may provide inaccurate answers because of unfamiliarity, boredom, faulty recall,
question format, question content and other factors. 2. Unwillingness errors: These arises from the
respondents unwillingness to provide accurate information. Respondents may intentionally mis
report their answers because of a desire to provide socially acceptable answers, avoid
embarrassment or please the interviewer.
Evaluation of Research Design
Constructing an efficient research design requires both artistic creativity and scientific expertise. A
good design is found to be simple, easy to administer and yet flexible. Indeed there is no one perfect
research design for any marketing research study. The criteria of judgement should be its
practicality, completeness on major issues and efficiency with respect to time and money required..
Types of Research Design
A. Exploratory Research Design
B.Conclusive Research Design
Exploratory Research Design
Exploration refers to finding something existing but unknown to us. It is getting information and
getting an idea about the issue. However, the information is not valid for making major decisions.
Exploratory research is used in situations where the issue is not clear. It helps gain additional insights
about the issue (clarifies the problem) and formulate hypotheses (tentative solutions to the problem
on hand). The aim of exploratory research design is to get a better understanding or insights of the
research problem. Exploratory research helps ensure that a rigorous and conclusive study will not
begin with an inadequate understanding of the nature of the business problem. Exploratory research
is undertaken in the following situations.
1. Limited knowledge: There are limited amount of research works discussing the issue and hence
prior knowledge about these studies are limited. The researchers need insights to develop further
research works.
2. Prior to a major research : When a major research is planned to for making policy decisions, a pilot
study in the form of exploratory research is undertaken.
Characteristics of the Exploratory Design
1.Single vs serial research -Exploratory research may be a single research investigation or it may be a
series of informal studies; both methods provide background information. 2.Informal approach -
Researchers must be creative in the choice of information sources. They should explore all
appropriate inexpensive sources before embarking on expensive research of their own. However,
they should still be systematic and careful at all times.
3.Nature of data - Most exploratory research designs provide qualitative data which provides greater
understanding of a concept. In contrast, quantitative data provides precise measurement.
Methods/Classification of Exploratory Research
1) Experience Surveys: In attempting to understand the problems at hand, managers may discuss
issues and ideas with top executives and knowledgeable managers who have had personal
experience in the field. This constitutes an informal experience survey.
2) Secondary Data Analysis: Another economical and quick source of background information is
trade literature in the public library. Searching through such material is exploratory research by
means of secondary data analysis. Basic theoretical research is rarely conducted without extensive
reviews of the literature in the field or similar research. Using secondary data may be equally
important in applied research.
3) Case Studies/Analysis: The purpose of the case study method is to obtain information from one or
a few situations that are similar to the researcher's problem situation.
4)Focus Group: Focus groups are small groups of people brought together and guided by a
moderator throughout unstructured, spontaneous discussion for the purpose of gaining information
relevant to the research objective.
5) Projective Techniques : Projective techniques seek to explore hidden consumer motives for buying
goods & services by asking participants to project themselves into a situation and then to respond to
specific question regarding that situation. Sentence completion, cartoon test, word association etc.
are such type of techniques.
B) Conclusive Research Design
1) Descriptive research: As the name implies, the major objective of descriptive research is to
describe something-usually market characteristics or functions. Descriptive research is undertaken
to obtain answers to questions of who, what, where, when and how. Examples of descriptive studies
are: (1) Market studies, which describe the size of the market, buying power of the consumer's
availability of distributors, and consumer profiles. (2) Market share studies, which determine the
proportion of total sales received by a company and its competitors. -There are two types of
descriptive research: a) Cross-sectional design and b) Longitudinal design.
a) Cross-Sectional Design: The cross-sectional study is the most frequently used descriptive design in
marketing research. Cross-sectional designs involve the collection of information from any given
sample of population elements only once.
In single cross-sectional designs only one sample of respondents is drawn from the target
population, and information is obtained from this sample only once. These designs are also called
sample survey research designs.
In multiple cross sectional designs, there are two or more samples of respondents, and information
from each sample is obtained only once. Often, information from different samples is obtained at
different times.
b) Longitudinal designs : In longitudinal designs, a fixed sample (or samples) of population elements
is measured repeatedly. A longitudinal design differs from a cross sectional design in that the sample
or samples remain the same over time.
Characteristics of Descriptive Research
1. Quantitative research: Descriptive research is a quantitative research method that attempts to
collect quantifiable information to be used for statistical analysis of the population sample. It is an
popular market research tool that allows to collect and describe the nature of the demographic
segment.
2. Uncontrolled variables: In descriptive research, none of the variables are influenced in any way.
This uses observational methods to conduct the research. Hence, the nature of the variables or their
behavior is not in the hands of the researcher.
3. Cross-sectional studies: Descriptive research is generally a cross-sectional study where different
sections belonging to the same group are studied.
4. Basis for further research: The data collected and analyzed from descriptive research can then be
further researched using different research techniques. The data also can help point towards the
types of research methods are to be used for the subsequent research.
Methods of Descriptive Research
1. Observation: There are two methods of observation including in-field and lab observation. In-field
observation requires viewing or recording of an audience in their natural environment. Lab
observation, on the other hand, is driven by the scientific method and audiences undergo
observation in a more controlled test environment.
2. Case Studies: Case studies involve a more in-depth analysis of an individual or smaller audience.
3. Surveys: Likely the most familiar method of descriptive research, surveys involve interviews or
discussions with larger audiences and are often conducted on more specific topics.
2.Casual / Experimental Research Design
Experimental research studies generally require testing of hypothesis for causal relationship
amongst the variables. Naturally, these types of research studies require procedures that should not
only reduce the bias but also lead to inferences about causality. This leads to necessity for
experimental designs. Experimental design develops a framework of experiments based on thumb
rule or statistical procedures.
TYPES OF EXPERIMENT RESEARCH DESIGNS
Experimental Design Symbols
Meaning
O-A formal observation or measurement
X-Exposure to the Experimental Treatment
EG-Experimental Group: Test units exposed to a treatment
CG-Control Group: Test units not exposed to a treatment
R-Random assignment of test units to EG and CG
M-Assignment to a EG or CG are balanced to assure that the EG and CG are roughly equal.
1. Pre-Experimental Designs.
Pre-Experimental Designs are the simplest form of experimental research designs. Pre-experimental
designs have little or no control over extraneous variables. And, these designs do not randomly
assign subjects to different treatments. As a consequence, the results of a test using a pre-
experimental design are difficult to interpret. These designs are often used in testing television
commercials because they are simple and relatively inexpensive.There are three types of pre-
experimental designs: One-Shot Case Studies, One Group Pre-Test Post-Test, and Static Group tests
A.ONE-Shot Case Studies: With a one-shot case study, test units people, test markets, etc.—are
exposed to a treatment. The standard notion for a treatment is the symbol "X." A single
measurement of the dependent variable is taken (O₂). There is no random assignment of test
subjects as there is only one treatment, and there is no control. Here is the standard notation for a
One-Shot Case Study:
X 0₁
B. One Group Pre-Test - Post-Test: With this research design the test unit is measured twice, one
before the test and once after the test. There is still no control group; which is to say, a group not
receiving the treatment. Here is the standard notation for a one group pre-test - post-test study:
One-Group Pre-Test - Post-Test 0₁ X 0₂
C. Static group design- with the static group design there is a control group (CG) in addition to the
Experimental Group (EG). The experimental group is exposed to the d treatment while the control
group is not. Test units, however, are not randomly assigned to the control or experimental groups.
Here is the standard notation for a Static Group study:
EG X 01
CG 02
2.True Experimental Designs
True Experimental Designs are where the market researchers assign test units to treatments at
random. There are three basic types of True Experimental Designs: Post-Test Only Control Group
Design, Pre-Test Post-Test Control Group Design, and Solomon Four Group Design.
A. Post-Test Only Control Group Design: With this research design, test units are randomly assigned
to the experimental and control groups. The experimental group is exposed to the treatment and
then both the experimental and control groups are measured. But, there is only one measurement is
taken. Here is the standard notation for a Post-Test Only study:

Post-Test Only Control Group Design

EG: R X 0₁
CG: R 02
R= Random Assignment
B.Pre-Test - Post-Test Control Group Design: With this research design, test units are randomly
assigned to experimental and control groups. A pre-test measure is
taken from both groups.
Here is the standard notation for a Pre-Test - Post-Test Control Group study:
Pre-Test-Post-Test Control Group Design
EG: R 01 X O2
CG: R 03 04
R= Random Assignment
C.Solomon Four Group Design: The Solomon Four Group Design is a research design that assesses
the impact of pretesting on subsequent measures. [i] It is used when the researcher suspects that
earlier tests influence the results of later tests. With this research design, test units are randomly
allocated to two experimental groups and two control groups. One of the experimental groups and
one of the control groups is measured. Both experimental groups are then exposed to a treatment.
Afterwards, both experimental and control groups are measured. A total of six measurements are
taken. The design aims to account for pre-testing bias and pre-test manipulation interaction bias.
Here is the standard notation for a Solomon Four Group study:
Solomon Four Group Design
EG1 R1 O1 X 03
CG₁ R₂ 0₂ 04
EG₂ R3 X 05
CG₂ R4 06
3. Quasi-Experimental Designs
Quasi-Experimental Designs are used when the researcher creates an artificial environment to
control for extraneous lacks control over when the treatment is administered or assigns test units to
the experimental and control groups in a non-random fashion. There are two basic types of quasi-
experimental designs: Time Series and Multiple Time Series.
A. Time Series: There is no randomization of the test units to the treatments. The timing of the
treatment presentation as well as which test unites are exposed to the treatment may not be within
the researcher's control. Consumer Attitude & Usage panels are an example of quasi-experimental
designs using Time Series.
Here is the standard notation for a Time Series study:
01 02 03 04 05 X 01 02 03 04 010
The advantages of Time Series are that it is easier to interpret the results than a One Group Pre-Test
- Post-Test design because of the many measures it takes.
the Time Series design has two weaknesses. First, researchers cannot control history. Second, given
the repeated measures there is a testing effect on the subjects. Subjects may become more aware of
their shopping habits, which could influence the results of the study.
B. Multiple Time Series: With the Multiple Time Series, the researchers add a control. group to the
research design. The addition of a control group enhances the researchers' ability to discern the
treatment effect.Here is the standard notation for a Multiple Time Series study:
Multiple Time Series Design
EG 01 02 03 04 05 X 01 02 03 04 010
CG 01 02 03 04 05 X 01 02 03 04 010
4. Statistical Designs
Statistical Designs are a collection of basic experimental designs that offer researchers the ability to
statistically control and analyze external variables. Statistical control uses various sophisticated
statistical techniques to exclude the influence of extraneous variables from an analysis.
The most commonly used Statistical Research Designs are the Randomized Block Design, the Latin
Square Design, and the Factorial Design.
A. Randomized Block Design: In a randomized block design, there is only one primary factor under
consideration in the experiment. Similar test subjects are grouped into blocks. Each block is tested
against all treatment levels of the primary factor at random order. This is intended to eliminate
possible influence by other extraneous
B. Latin square design Latin square design is a type of experimental design that can be used to
control sources of extraneous variation or nuisance factors. Latin squares design is an extension of
the randomized complete block design and is employed when a researcher has two sources of
extraneous variation in a research study that he or blak cute she wishes to control or eliminate. This
entry addresses how to set up a study using Latin square design, the advantages and disadvantages
of this design approach, and the analysis of data when using Latin square design.
C. Factorial Design : Factorial designs are a form of true experiment, where multiple factors (the
researcher-controlled independent variables) are manipulated or allowed to vary, and they provide
researchers two main advantages. First, they allow researchers bedea e = b to examine the main
effects of two or more individual independent variables simultaneously. Second, they allow
researchers to detect interactions among variables. An interaction is when the effects of one
variable vary according to the levels of another variable. Such interactions can only be detected
when the variables are examined in combination.
1)The effects of multiple independent variables on the dependent variable can be measured, 2)
Specific extraneous variables can be statistically controlled, and each test unit can be measured
more than once with these economically efficient designs.
RESEARCH PROPOSAL
The research proposal is a written statement of the research design. It always includes a statement
explaining the purpose of the study (research objectives) or a definition of the problem. It
systematically outlines the particular research methodology and details the procedures that will be
utilized at each stage of the research process. Normally a schedule of costs and deadlines will be
included in the research proposal.
A research proposal is intended to convince others that you have a worthwhile research project and
that you have the competence and the work-plan to complete it. Broadly the research proposal must
address the following questions regardless of your research area and the methodology you choose:
What you plan to accomplish, why do you want to do it and how are you going to do it.
Elements of the Research Proposal
1. Executive Summary : a brief statement of the major points from each of the other sections.
The objective is to allow an executive to develop a basic understanding of the proposal
without reading the entire proposal.
2. Background a statement of the management problem and the factors that influence
3. Objectives description of the types of data the research project will generate and how these
data are relevant to the management problem. A statement of the value of the information
should generally be included in this section.
 4. Research Approach: a non technical description of the data-collection method,
measurement instruments, sample, and analytical techniques.
5. Time and Cost Requirements: an explanation of the time and costs required by the planned
methodology accompanied by a PERT chart.
6. Technical Appendixes: any statistical or detailed information in which only one or a few of
the potential readers may be interested.
Types of Research Proposals
1. Internal Research proposal An internal proposal contains memo from the researcher to the
management briefly explaining the problem statement, study objectives, research design and
schedule. Literature review and bibliography are important a small-scale proposal. An executive
summary of proposal mandatory for most proposals.
2.Internal Research proposal External proposals can either solicited unsolicited. Most external
proposals compete against others for contract. But unsolicited proposals don't compete against
others. External proposals should contain the research objectives, design, and qualifications,
scheduled and budget of proposed course action. The proposal should also contain an executive
summary.
Structure/Design of Research Proposal
1. Title: It should be concise and descriptive. It must be informative and catchy. An effective title not
only prick's the readers interest, but also predisposes him/her favourably towards the proposal.
Often titles are stated in terms of functional relationship, because such titles clearly indicate the
independent and dependent variables. The title may need to be revised after completion of writing
of protocol to reflect more closely the sense of the study. qo
2.Abstract: It is a brief summary of approximately 300 words. It should include the main research
question, the rationale for the study, the hypothesis (if any) and the method. Descriptions of the
method may include the design, procedures, the sample and any instruments that will be used. It
should stand on its own, and not refer the reader to points in the project description.
3.Introduction: The introduction provides the readers with the background information. Its purpose
is to establish a framework for the research, so that readers can understand how it relates to other
research. It should answer the question of why the research needs to be done and what will be its
relevance. It puts the proposal in context. The introduction typically begins with a statement of the
research problem in precise and clear terms.hall protect
4.Objectives: Research objectives are the goals to be achieved by conducting the research. They may
be stated as 'general' and 'specific'. The general objective of the research is what is to be
accomplished by the research project, for example, to determine whether or not a new vaccine
should be incorporated in a public health program. The specific objectives relate to the specific
research questions the investigator wants to answer through the proposed study and may be
presented as primary and secondary objectives,
5.Research Questions and/or hypotheses: If you as a researcher know enough to make prediction
concerning what you are studying, then the hypothesis may be formulated. A hypothesis can be
defined as a tentative prediction or explanation of the relationship between two or more variables.
In other words, the hypothesis translates the problem statement into a precise, unambiguous
prediction of expected outcomes. Hypotheses are not meant to be haphazard guesses, but should
reflect the depth of knowledge, imagination and experience of the investigator. In the process of
formulating the hypotheses, all variables relevant to the study must be identified.
A research question poses a relationship between two or more variables but phrases the
relationship as a question; a hypothesis represents a declarative statement of the relations between
two or more variable.
Research Methodology: The method section is very important because it tells your research
Committee how you plan to tackle your research problem. The guiding principle for writing the
Methods section is that it should contain sufficient information for the reader to determine whether
the methodology is sound. Some even argue that a good proposal should contain sufficient details
for another qualified researcher to implement the study.
6.Significance of the study: Indicate how your research will refine, revise or extend existing
knowledge in the area under investigation. How will it benefit the concerned stakeholders? What
could be the larger implications of your research study?
7.Dissemination of the study results: How do you propose to share the findings of your study with
professional peers, practitioners, participants and the funding agency?
8.References: The proposal should end with relevant references on the subject. For web based
search include the date of access for the cited website.
 UNIT-II
SOURCES OF DATA
SOURCES OF DATA
Introduction
The most important aspect of research is data collection. With the help of data, the information can
be presented in such a manner so that the same may be useful for decision making by the managers.
While collecting data, reliability and accuracy should be maintained. In the whole process of
gathering information, the source of data should be taken care of very seriously.
Meaning of Data
Data refers to any group of measurements that happen to interest us. These measurements provide
information the decision maker uses. Data are the foundation of any statistical investigation and the
job of collecting data is the same for a statistician as collecting stone, mortar, cement, bricks etc. is
for a builder.
Types of Data
1. Primary Data: The Primary data will be collected using survey as a mode of data collection. To
conduct surveys separate sets of structured questionnaire would be prepared for Consumer,
Retailers and National Brand.
2.Secondary Data: The secondary data shall be collected from various Publications of Apparel and
Retail Trade Associations like Clothing Manufacturers Association of India, Retailers Association of
India. The facts, figures and statistics on Retail and Brand shall be explored through Books,
Magazines, Journals, Periodicals and internet. The internal store data related to customer loyalty
shall be gathered from various retail stores.
PRIMARY DATA
Primary data is data originated for the first time by the researcher through direct efforts and
experience, specifically for the purpose of addressing his research problem. Also known as the first
hand or raw data. Primary data collection is quite expensive, as the research is conducted by the
organisation or agency itself, which requires resources like
investment and manpower. The data collection is under direct control and supervision of the
investigator. The data can be collected through various methods like surveys, observations, physical
testing, mailed questionnaires, questionnaire filled and sent by enumerators, personal interviews,
telephonic interviews, focus groups, case studies, etc.
Classification of Primary Data
1) Data Classified by their Nature: The nature of data may be classified according to various
categories: Facts, knowledge, opinions, intentions, motivation and behavior.
i)Facts: Facts refer to actuality but they not necessarily are material. The measurable facts can be
measured precisely and definitely. The descriptive facts relating to people may be demographic and
sociological. These characteristics represent the attributes of people, e.g., age, sex, income and level
of education. The sociological data are related to how people are organized in and related to society.
ii) Knowledge: Knowledge refers to what people know. Potential buyers' knowledge and awareness
of products or brands are important data of marketing research. The respondents, awareness and
knowledge are evaluated to get sufficient data for marketing research.
iii)Opinions: Opinions are people's perceptions. What people think or what is in their minds are
called opinions. Their perceptions may or may not be true. Thus, they may be well defined as
attitudes. These are products of mental sets and may be referred to as images.
iv) Intentions: Intentions are acts that are in the minds of people. These are expectations of
behavior, or intentions to indulge in particular marketing behavior.
v) Motivation: Motivation is how to steer and direct people's actions. It is known as the inner state
of mind that energizes activities and moves or directs the behavior of people.
2) Data Classified According to Function: Data are also classified according to their functions. While
planning data, the researchers anticipate the future analysis and synthesis according to their
function. They try to avoid redundant data and collect necessary data. Data according to function
may be causal, payoff, descriptive and classification.
i) Causal Data: Causal data reveal the cause and effect relationship. One hypothesis is measure in
terms of effects. Data required to measure the hypothesis are termed causal data. Such types of
causal data are required in the marketing mix. They are used for experimental purpose in all the
fields of marketing variables.
ii) Payoff Data: The payoffs are resultant data. They are the outcome of certain causal data, i.e.,
results of certain phenomenon. The causal variables are measured in terms of payoff or effects. This
means that payoff data are required to measure the causal variables.
iii) Descriptive Data: There is need of such types of data, which may describe the situation,
statement and facts. Even in the case of experimental data, one variable requires to be controlled
for which descriptive data are used. In such cases, a description of the samples is needed when
drawing conclusions.
iv) Classification Data: In sophistication experimental design the compound data have been classified
to arrive at simple analysis and conclusions. The classification data, i.e., the data classified in relevant
categories are conceivable and may be easily described. The classification data in complex and
multiple groups, i.e., more than one causal variable or rotation of treatments in sub-groups have
functional utility. The sample survey also provides classification data, e.g., according to age, sex,
income, location etc.
Advantages of Primary Data
1)Reliability: The information collected for primary data is more reliable than those collected from
the secondary data because these informations are collected directly from the respondents. So
these carries higher rate of reliability. 2)Availability of a Wide Range of Techniques: There are a lot of
techniques that can be employed, means that all information necessary can be obtained through
using the appropriate techniques, enabling all areas of the research topic to be answered and
investigated thoroughly and effectively.
3) Addresses Specific Research Issues: Carrying-out their own research allows the marketing
organization to address issues specific to their own situation. Primary research is designed to collect
the information the marketer wants to know, and report it in ways that benefit the marketer.
4)Greater Control: Not only does primary research enable the marketer to focus on specific issues, it
also enables the marketer to have a higher level of control over how the information is collected. In
this way the marketer can decide on such issues as size of project (e.g., how many responses),
location of research (e.g., geographic area), and timeframe for completing the project.
5) Efficient Spending for Information: Unlike secondary research, where the marketer may spend for
information that is not needed, primary data collections' focus on issues specific to the researcher
improves the chances that research funds will be spent efficiently.
6) Proprietary Information: Information collected by the marketer using primary research is their
own and is generally not shared with others. Thus, information can be kept hidden from
competitors, and potentially offer an "information advantage" to the company that undertook the
primary research.
Disadvantages of Primary Data
1) Cost: Compared to secondary research, primary data may be very expensive since there is a great
deal of marketer involvement, and the expense in preparing and carrying out research can be high.
2) Time Consuming: To be done correctly primary data collection requires the development and
execution of a research plan. Going from the start-point of deciding to undertake a research project
to the end-point of having results is often much longer than the time it takes to acquire secondary
data.
3) Not Always Feasible: Some research projects, while potentially offering information that could
prove quite valuable, are not within the reach of a marketer. Many are just too large to be carried-
out by all but the largest companies, and some are not feasible at all. For example, it would not be
practical for McDonald's to attempt to interview every customer who visits their stores on a certain
day since doing so would require hiring a huge number of researchers, an unrealistic expense.
Fortunately, there are ways for McDonald's to use other methods (e.g., sampling) to meet their
needs without the need to talk with all customers.
4) Large Volume of Data: Since the data collected by primary methods remains in a bow very large
amount so it becomes very complicated to handle and maintain all the data. Large volumes of data
also create difficulty in the data processing.
5) Reluctancy of Respondents: In many cases, the respondents remain reluctant to give the answers
of the researchers' questions. Sometimes they give such answers which create biasness in the
research.
Sources of Primary Data
The sources of primary data are primary units such as basic experimental units, individuals,
households. Following methods are used to collect data from primary units usually and these
methods depends on the nature of the primary unit. Published data and the data collected in the
past is called secondary data.
Personal Investigation: The researcher conducts the experiment or survey himself/ herself and
collected data from it. The collected data is generally accurate and reliable. This method of
collecting primary data is feasible only in case of small scale laboratory, field experiments or pilot
surveys and is not practicable for large scale experiments and surveys because it take too much
time.
Through Investigators: The trained (experienced) investigators are employed to collect the required
data. In case of surveys, they contact the individuals and fill in the questionnaires after asking the
required information, where a questionnaire is an inquiry form having a number of questions
designed to obtain information from the respondents. This method of collecting data is usually
employed by most of the organizations and its gives reasonably accurate information but it is very
costly and may be time taking too.
Through Questionnaire : The required information (data) is obtained by sending a questionnaire
(printed or soft form) to the selected individuals (respondents) (by mail) who fill in the questionnaire
and return it to the investigator. This method is relatively cheap as compared to "through
investigator" method but non-response rate is very high as most of the respondents don't bother to
fill in the questionnaire and send it back to investigator.
Through Local Sources: The local representatives or agents are asked to send requisite information
who provide the information based upon their own experience. This method is quick but it gives
rough estimates only.
Through Telephone : The information may be obtained by contacting the individuals

on telephone. Its a Quick and provide accurate required information. Through Internet: With the
introduction of information technology, the people may be contacted through internet and the
individuals may be asked to provide the pertinent information. Google survey is widely used as
online method for data collection now a day. There are many paid online survey services too. It is
important to go through the primary data and locate any inconsistent observations before it is given
a statistical treatment.
Methods of Gathering Primary Data

1) Focus Group: A focus group is an interview conducted by a trained moderator in a Non-structured

and natural manner with a small group of respondents. The main purpose of focus group is to gain
insights by listening to a group of people from the appropriate target market talk about issues of
interest to the researcher.
2) Depth Interview: Depth interviews are another method of obtaining qualitative data. Depth
interview is an unstructured, direct, person, is interview in which a single respondent is probed by a
highly skilled interviewer to uncover underlying motivations, beliefs, attitudes and feelings on a
topic.
Application of Depth Interviews
Depth interviews can be effectively employed in special problem situations.
1) Detailed probing of the respondent
2) Discussion of confidential, sensitive or embarrassing topics
3) Detailed understanding of complicated behaviour
4) Interviews with professional people
5) Interviews with competitors, who are unlikely to reveal the information in a group setting
3)Project Techniques : Both focus group and depth interviews are direct approaches in which the
true purpose of the research is disclosed to the respondents or is otherwise obvious to them. A
projective technique is an unstructured, indirect form of questioning that encourages respondents
to project their underlying motivations, beliefs, attitudes or feelings regarding the issues of concern.
The techniques are classified as association, completion, construction and expressive.
Advantages of Projective technique
1) Projective techniques can increase the validity of responses by disguising the purpose
2) It is helpful to motivation
Disdvantages of Projective technique
1) High expensive
2) Time consuming
3) It is very difficult
Applications of Projective technique
1) Projective techniques should be use because the required information cannot be accurately
obtained by direct methods.
2) Projective techniques should be used for exploratory research to gain initial and understanding.
3)Given their complexity projective techniques along with other qualitative techniques, can yield
valuable information.
4) Survey Methods: The survey method involves a structured questionnaire given to respondents
and designed to elicit specific information. Thus this method of obtaining information is based on
the questioning of respondents. Respondents are asked a variety of questions regarding their
behaviour, intentions, attitudes, awareness, motivations and demographic and life-style
characteristics. Systematic collection of information directly from respondents
1) Telephone interview
2) Main interview
3) Personal interview
4) Computer interviews
5)Observation Method : Observation methods are the second type of methodology used in
descriptive research. Observation involves recording the behavioral pattern of people, objects and
events in a systematic manner to obtain information about the phenomenon of interest. The
observation method structured or unstructured, direct or indirect.
6)Experimental Design: The researcher multiplates one or more variables is such a way that its effect
on one or more other variables can be estimated.
a) Laboratory experiments Field experiments
Laboratory Experiment: Manipulation of the independent variables (s) in an artificial situation. Basic
designs consider the impact of only one independent variable, where as statistical designs consider
the impact of more than one independent variable.
b) Field Experiment: Manipulation of the independent variables (s) in a natural situation Basic
designs consider the impact of only one independent variable whereas, statistical designs consider
the impact of more than one independent variable.
SURVEY METHOD OF DATA COLLECTION
In business studies survey method of primary data collection is used in order to test concepts, reflect
attitude of people, establish the level of customer satisfaction, conduct segmentation research and a
set of other purposes. Survey method can be used in both, quantitative, as well as, qualitative
studies.
Meaning of Survey Method
The Survey method is the technique of gathering data by asking questions to people who are
thought to have desired information. A formal list of questionnaire is prepared. Generally a non
disguised approach is used. The respondents are asked questions on their demographic interest
opinion.
Purpose of Survey Method
1.Describing certain aspects or characteristics of population and/or
2. Testing hypotheses about nature of relationships within a population.
Types of Survey Methods
Survey method can be broadly divided into three categories: mail survey, telephone survey and
personal interview. The descriptions of each of these methods are briefly explained on the following
table :
Survey method
1. Mail survey- A written survey that is self-administered
2.Telephone survey - A survey conducted by telephone in which the questions are read to the
respondents
3.Personal interview-A face-to-face interview of the respondent
Advantages of Survey Method

1.Surveys can be conducted faster and cheaper compared to other methods of primary data
collection such as observation and experiments
2. Primary data gathered through surveys are relatively easy to analyse
Disadvantages of Survey Method
1.In some cases, unwillingness or inability of respondents to provide information.
2.Human bias of respondents, i.e. respondents providing inaccurate information.
3.Differences in understanding: it is difficult to formulate questions in such a way that it will mean
exactly same thing to each respondent.
How to overcome the limitations of Survey Method
1. Careful framing and phrasing of questions.
2. Careful control of data gathering by employing specially trained investigators who will observe
carefully report
OBSERVATION
Introduction
Observation, as the name implies, is a way of collecting data through observing. Observation data
collection method is classified as a participatory study, because the researcher has to immerse
herself in the setting where her respondents are, while taking notes and/or recording.
Meaning of Observation
Observation as a data collection method can be structured or unstructured. In structured or
systematic observation, data collection is conducted using specific variables and according to a pre-
defined schedule. Unstructured observation, on the other hand, is conducted in an open and free
manner in a sense that there would be no pre-determined variables or objectives.
features of observation
1.Eye Observation: In an accurate sense, observation involves the use of the eyes rather than the use
of the ears and the voice. An experienced worker never believes in hearsay he only trusts if he has
observed that with his own eyes or if the report is a first hand evidence of his eyes. So it can be said
that observation done with the help of the eyes acts as a most trustworthy medium for making an
observation.
2.Aim: Observations which act on scientific grounds are brought in use by the scientists or the
researchers with some or the other aim to achieve something. Such scientists make their
observations in a very minute and a detailed manner which helps them in achieving specific goals.
These goals can include discovery of something, verification of the hypothesis etc.
3.Planning: The value of an observation in an operation is only if it is done properly - in a planned
manner as, if it is done in a careless sense then the chance of making such an observation again may
come or not. Hence, observation should be carried out in a very phased and a planned manner in
order to get in depth understanding of an activity.
4.Recording: The various operations that we perform and the results that we obtain should be
remembered but a known fact is that memory is very deceptive in nature. With the passage of time
things tend to get out of mind, so it is very important to keep a record of such activities. One very
common method to keep a track of these activities is to write down the various impressions, but
now a days a tape or in some cases a video camera is used for the recording purposes. One of the
major advantages of the recording done by a tape or a video camera is that the chances of going
wrong i.e. committing any mistake are very less or almost negative.
In tape, actual words can be recorded which results in zero chance of committing an error.
5. Physical and mental activity: Sense organs have a very critical role to play in the observation
process. During the observation researcher or an investigator has to use his sense organs for seeing
and hearing things and then has to keep in mind the whole set of observations for an in depth
analysis of the matter later on.
6. Exactness: Observation should be based on standardized tools of research which makes an
observation exact in its nature of working.
7. Direct study: Observation is a very vital scientific method that helps a lot in the collection of the
primary information that is reliable in nature in which direct study of the situation is involved.
Classification of Observation
1.Personal observation - The researcher himself goes to the field and personally observes actual
behaviour as it occurs, and the observer merely records what takes place. The researcher does not
attempt to control or manipulate the phenomenon being observed. This method requires
researcher's efforts and time; if field forces are employed, then the researcher has to train them on
method of observing.
2. Mechanical observation - These are devices used to continually record ongoing behaviour for later
analysis. Closed circuit camera, Toll Plaza Tracking system, Customer Shopping Behaviour Tracing
Equipments and many more to say, are some of the equipments used in the recent times, to trace
the consumer behaviour.
3. Audit - This process involves collection of data by examining physical records or performing
inventory analysis. There are two distinguishing features of an audit: (1) data are collected
personally by the researcher or by representatives of the researcher and (2) the data are based upon
counts, usually of physical objects other than people.
4.Content analysis - It is the objective, systematic, and quantitative description of the manifest
content of a communication. Marketing research applications involve observing and analyzing the
content or message of advertisements, newspaper articles, television and radio programs, can be
considered as
5.Structured Vs. Unstructured observation - Structured observation is appropriate when the
marketing research problem has been clearly defined and the information needed has been
specified. It requires that the researcher specify in detail what is to observed and how the
measurements are to be recorded. Unstructured observation is appropriate when the problem has
yet to be formulated precisely, and flexibility is needed in observation to identify key components of
the problem and to develop
2. Disguised Vs. undisguised observation disguised observation, the respondents are not aware that
they are being observed, whereas in undisguised observation the respondents are aware that they
are under observation. Disguised observation is used when it is felt that the respondents would act
differently under direct observation.

3. Natural Vs. Contrived Observation - Natural observation involves observing behaviour as it

normally takes place in the environment. Contrived observation takes place in an artificial
environment that has been created by the researcher. Natural observations allow the researcher to
observe actual behaviour, but do not allow for inferences on the causes of behaviour. Contrived
observation enables the researcher to control more of the variables that affect behaviour.
Merits or Advantages of Observation
1.Real and true: All data must originate in some experience or perception. As a scientific tool, it may
range from the most casual to the most scientific, involving modern mechanical and electronic
means. It meets the needs of a particular situation. Data collected through observation will be more
reliable than data collected by any other method. Whenever direct observation is possible it must be
pursued, as it is most reliable.
2.Chances of bias are limited : Observation underlies all research. It plays a prominent part in survey
procedure. The general conditions of observation may be controlled by selecting the group, special
form of stimuli and the observers. Moreover, data gathered through observation are immediately
recorded. All these lead to less bias on the part
of observer while conducting the marketing research.
3. Better insight into consumer behaviour: Observation helps to obtain information which
consumers are unwilling or unable to provide. Observation is indispensable for studies on infants
who can neither understand our queries nor express themselves clearly. Observation is the only
appropriate tool for non-cooperative persons who are unwilling to provide data on behaviour
Demerits Or Disadvantages or limitations of observation
1.Lack of competence of the observer: The lack of competence of the may hamper the validity and
reliability of observation. The observer must have a clear perspective of the nature of the consumer
behaviour. He/she should also have a valid frame of reference and a freedom from personal bias.
2. Lack of clarity: The observer tends to see only the things which he wants to see. All human beings
who are exposed to the same situations do not necessarily perceive the same thing. Various
observers observing the same event report details which are influenced by observer's strong
personal interest, emotion, motivation, etc.
An observer must rely on his memory for construction of his observation. In such cases, he should
record his observation immediately after an observation. Thus, the recording, if not proper, defeats
the very purpose of observation.
3. Little control over physical situation : The subject matter of observation may be samples of rarely
occurring behavior. The observer may fail to obtain an adequate sample of data on which he has to
base his conclusions. He has little control over the physical situation. This is particularly true in an
unstructured situation where so many things occur simultaneously and it becomes difficult to attend
to them all.
4.Unmanageable data : The data may be unmanageable. There may be lack of agreement among the
observers. So, huge but not a reliable data may get piled up.

5. Possibility of distortion: There is the possibility of distortion of the phenomena through the very
act of observing. Observation is self interfering. It introduces in itself a bias, the direction and extent
of which is relatively unknown. Such distortion is difficult to eliminate.
INTERVIEW
Interview is one of the popular methods of research data collection. The term interview can be
dissected into two terms as, 'inter' and 'view'. The essence of interview is that one mind tries to read
the other. The interviewer tries to assess the interviewed in terms of the aspects studied or issues
analyzed.
Meaning of Interview
Interview is a systematic source of gathering information directly from the respondents through oral
communication.
Definition of Interview
According to Gary Dessler, "An interview is a procedure designed to obtain information from a
person's oral response to oral inquiries."
According to Thill and Bovee, "An interview is any planned conversation with a specific purpose
involving two or more people".
Classification of Interview
a)Structured and Unstructured: When the questions are asked in a prearranged format, it is called as
a structured interview. Wherein, the interviewer decides in advance as to what is to be asked. At the
time of an interview, the interviewer simply asks questions from the pre-set questionnaire. On the
other hand, when the interviewer formulates and asks questions at the time of interview, it is an
unstructured interview.
Direct and Indirect: Direct interviews are those wherein the interviewer asks questions directly to
the respondent. However, respondents tend to hide information or are unable Joplin by for to
convey the same to the interviewer on account of privacy. Therefore, researchers use indirect
questions to gather information from the respondents. Such interviews are called indirect
interviews.
c) Individual Depth Interviews and Group Interviews : Depth interviews are the personal interviews
wherein each individual is interviewed one at a time. The interviewer is highly experienced and asks
direct and unstructured questions to collect information from the respondents. Usually, it takes 20
to 30 minutes for such an interview. Group interviews or mass interviews on the other hand, involve
a group of respondents interviewed at a time by the interviewer. The group can be of
heterogeneous or homogeneous respondents.
Types of Interviews Methods
1. Personal in-home interview: In this method, the researcher or field data collection executives visit
residences of respondents and ask questions face-to-face in their homes. This method requires more
of field work and costlier and expensive.
2. Mall-intercept personal interview : Respondents are intercepted while they are shopping in a mall,
and then a questionnaire is administered to them by the interviewer. The method may result in poor
quality responses. Since the sampling method falls under the category of convenience, it is difficult
to generalize the findings.
3.Computer-assisted personal interview : Respondents are requested to sit in front of a computer
terminal. She or he answers the questionnaire on the screen by using the keyboard and/or mouse.
4.Telephone interview: It involves phoning a sample of respondents and asking them a series of
questions. It is more appropriate, when the amount of information required is limited and highly
structured. It is one of the quickest methods and consumes less time than other methods.
5. Computer-assisted telephone interview: The computer dials a telephone number, the interviewer
asks the questions on the screen of the computer, and the interviewer records the respondents'
answers directly into the computer. There are computer softwares, which links the responses to a
database directly.
6. Mail interview : In this method, the researchers sends by postal/ mail the questionnaires to pre-
selected potential respondents. The respondents complete and return the questionnaires by return
mail. If an incentive is attached to the filled responses, the respondents may be motivated to answer
promptly. Poor response rate and more time to collect the responses are some of the weakness with
this method.
7.Mail panel : This method consists of a large and nationally representative sample of households
which have agreed to periodically participate in mail questionnaires, product
tests, and telephone surveys conducted by the specific marketing research organization. For such
panel enrolment, the firm has to pay a nominal amount as participation fees.
8. E-mail interview: The survey request and questionnaire is written within the body of the e-mail
message and send to the identified respondents [whose emails have been collected]. The e-mails are
sent out over the Internet.
9. Internet interview : Internet or Web surveys use 'hypertext mark-up language' (HTML), the
language of the Web, and are posted on a Web site. Respondents may be recruited over the Internet
from potential respondent databases maintained by the marketing research firm or they can be
recruited by conventional methods (mail, telephone).
Advantages of Interview Method
1.Easy correction of speech: Any misunderstanding and mistake can be rectified easily in an
interview. Because the interviewer and interviewee physically present before the interview board.
2.Development of relationship: Relation between the interviewer and the interviewee can be
developed through an interview. It increases mutual understanding and co operation between the
parties.
3.Selection of suitable candidate: Suitable candidates can be selected through interview because the
interview can know a lot about the candidate by this process.
4.Collection of primary information: Interviews can help to collect fresh, new and primary
information as needed. 5.Sufficient information: Sufficient information can be collected through the
interview process. Because the interviewer can ask any question to the interviewee.
6.Time-saving: Interview can help to save time to select the best suitable candidate. Within a very
short time communication can be accomplished with the interview.
7.Less costly: It is less costly than other processes of communication. It is very simple, prompt and
low-cost method of communication.

8. Increasing knowledge: Any interview increases the knowledge of both the interviewer and the
interviewee. They can interchange their views and ideas.
9.Explore cause behind the problem: In business, executives need to solve different types of
problems. To explore or to find out the actual reasons behind the problem interview method can be
used.
10.In depth analysis: Through planed interviews detailed information can be collected which enables
proper analysis of a problem. Abstract factors like attitudes, feelings,opinion etc. Can be successfully
evaluated or analyzed through interviews.
11.Solving labor problems: Labour unrest and other disputes are very common in the industries.
Sometimes human resource managers use the interview as a means of reveling actual causes behind
the labour deputes.
12.Flexible: One of the major advantages of interview is feasible. That depends on the situation it
can be framed differently.
Disadvantages of interview method
Incomplete process: Suitable candidate can not be selected by interview only. The written test is
more important than the interview.
No record: In the case of the interview some confusion may be arisen in the future as, there is no
evidence actually that have been discussed at interview.
Lack of attention: Much attention is required for a good interview. But sometimes it is observed that
both the interviewer and the interviewee are less attentive. That is why real information cannot be
collected
Disappointed: Interviewee may be disappointed while she or he faces the interviewer's questions
which are not related to the field. That is why a suitable candidate may be neglected.
expensive Time-consuming: Time constrain is one of the major limitations of the interview Training
of process. Preparation for the interview, taking interviews and interpretation of the responses
required much time, which makes the interview method time-consuming.
Biases of interviewer: Always there is a possibility that the interview process can be influenced by
the biases of the interviewer.
Costly: Generally interview method is expensive.
Inefficiency of the interviewer: Interview is a systematic process of data collection. The success of an
interview depends on the efficiency of the interviewer. This inefficiency of an interviewer can lead to
misleading results.
Not suitable for personal matters: Personal matters may not be revealed by interview method.
DEPTH INTERVIEW
Depth interview is a qualitative research technique which is used to conduct intensive individual
interviews where numbers of respondents are less and research is focused on a specific product,
technique, situation or objective. Companies employ market research firms to employ In-depth
interviews to understand consumer behaviour for a new product or to expand sales of existing
products.
They generally use small samples and also conduct direct one to one personal interviews. A detailed
background is provided by the respondents and elaborate data concerning the respondents
opinions, values, motivation, expression, feeling etc are obtained. Even their non-verbal expressions
are observed. They take long time, therefore lengthy observations are involved.
These are conducted to customize individual responses. The questions will depend on what kind of
answers are given. Even interview climate influences the respondents. The success of interviews
depends on the rapport of the interviewers established with the respondents.
Purpose of Depth Interview
1. Detailed probing of the individual.
2. Discussions on topics considered confidential, sensitive, or embarrassing.
3.Situations where strong social norms exist and the individual may be easily swayed by group
response.
4. Detailed understanding of complicated behaviour.
5. Interviews with professional people.
6.Interviews with competitors who are unlikely to reveal the information in a group setting.
7.Situations where the product consumption experience is sensory in nature affecting mood states
and emotions.
Step in Depth interview process :
i. Planning
ii. Instruments development
iii.Training of the data collectors or the interviewers
iv. Collection of data
v.Analyzing the collected data
vi.Reporting or disseminating the findings of the analyzed data
Advantages of Depth Interview
1.Lot of detail is provided.
2. Information obtained is comparatively more accurate.
3.Personal or intimate topic can also be discussed since the personal rapport is established between
the respondent and the interviewer
Disadvantages of Depth Interview
1.It is difficult to generalize since the interviewers are non-standardized.
2.Since the success depends on the interviewer, there are chances of bias.
3.Data analysis takes a lot of time.
FOCUS GROUP
A focus group is a small group of people. A trained moderator conducts an interview in a non-
structured manner in a natural manner. The moderator's role is to introduce a topic and to
encourage the group to discuss it among themselves. This is suitable for 'Exploratory Research
Designs'.
A focus group is an interview conducted by a trained moderator in a non structured and natural
manner with a small group of respondents. Focus group are the most important qualitative research
procedure.
Characteristics of Focus Groups
1. Group size-8 to 12
2. Group compositions- Homogeneous
3. Physical setting- Relaxed, Informal atmosphere
4. Time duration-1 to 3 hours
5. Recording-Audio Cassettes & Video Tapes
6. Moderator-Observation, Communication skills and interpersonal skills.
Objectives of Focus Group
1.To gather primary information for research project;

2.To help developing questionnaires in terms of survey research;

3.To understand reason behind a particular phenomenon:
4. To see how people interpret certain phenomenon;
5. To test primarily ideas or plan
Steps involved in conducting Focus group
1.Define the problem
2.Select a sample
3.Determine the number of groups necessary(minimum number should be two)
4.Prepare the study mechanics. Arrange the respondents place where the focus group is to be
assembled.
5. Select moderators and brief them.
6. Prepare the focus group material.
7. Conduct the session.
8. Analyze the data and prepare summary report.
Advantages of Focus group
1) it allows people to discuss their true feelings and convictions,
2) it is relatively fast,
3) it is easy to execute and very flexible,
4) it is inexpensive.
Disadvantages of Focus Group
1.group is not representative of the general population
2.There is extreme dependence on the performance of the moderator
3.It is hard to correctly interpret the responses.
4. Coding and analysis is cumbersome.
5. The results are subject to researcher or client bias.
QUESTIONNAIRE
Meaning of Quesstionnaire

A questionnaire is a form prepared and distributed to secure responses to certain questions. It is a

tool for obtaining response to questions by using a form which the respondent fills by himself.
Types of Questionnaire
1. Open question questionnaires. Open questions differ from other types of questions not used in
questionnaires in a way that open questions may produce unexpected results, which can make the
research more original and valuable. However, it is difficult to analyze the results of the findings
when the data is obtained through the questionnaire with open questions.
2. Multiple choice questions. Respondents are offered a set of answers they have to choose from.
The downsize of questionnaire with multiple choice questions is that, if there are too many answers
to choose from, it makes the questionnaire, confusing and boring, and discourages the respondent
to answer the questionnaire.
3.Dichotomous Questions. This type of questions gives two options to respondents yes or no, to
choose from. It is the easiest form of questionnaire for the respondent in
terms of responding it.
4. Scaling Questions. Also referred to as ranking questions, they present an option for respondents
to rank the available answers to the questions on the scale of given range of values. (for example
from 1 to 10).
Classification of Questionnaire
1. Structured - Non disguised :A structured questionnaire is formal list of questions framed so as to
get the facts. The interviewer asks the questions strictly in accordance with a pre-arranged order. A
structured questionnaire can be of two types : 1) Disguised and 2) Non disguised. This classification
is based on the whether the object or purpose of the survey is revealed or undisclosed to the
respondent. Thus, a structured -Non disguised questionnaire is one where the listing of questions is
in a pre arranged order and where the object of equality is revealed to the respondent. Most
marketing research studies use this type of questionnaire. 2.Structured - Disguised: In the case of
this the researcher does not disclose the object of the survey. He feels that if the respondent comes
to know the object of the survey. He may not be objective in giving the necessary information, and
as such it purpose may be defeated.
3. Non structured - non disguised: It is one in which the questions are not structured and the order
in which they re to be asked from the respondent is left entirely to the researcher. He asks the
questions in the manner in which he deems fit in a particular situation. In fact he may only have
certain main points on which he may develop the questions at the time of the actual interview.
4. Non structured - disguised: Normally unstructured questionnaires are used in exploratory
research when some respondents are contacted. Questionnaire of this type can be split in to tow
subtypes, where the purpose of the enquiry is disclosed to the respondents, the questionnaires and
know as non structured and non disguised. While in non structured disguised other cases, the
questionnaires classified as non structured and disguised questionnaires.
Features of Good Questionnarire
1. Valid: A valid questionnaire should ask what it intends to ask, i.e. the questions should be phrased
in such a way that the respondent understands the objective of the question. To achieve this, the
questionnaire should be reviewed by the "content expert" during the pilot test (e.g. if the target
respondent is a diabetic patient, then a diabetic patient should comment whether he understands
the questionnaire). Any uncertainties and queries should be clarified till the question is clearly
understood.
2. Reliable: A reliable questionnaire should yield the same answer if the same question is posed to
the respondent repeatedly in a short span of time. This can be achieved by be performing a "test-
retest", i.e. administer the same questionnaire to the respondent a second time and check for
consistency of the answer. Any discrepancy in the answers could be due to lack of clarity of the
questions and this should be reviewed and le rephrased.
3. Interesting: An interesting questionnaire is more likely to be completed by the respondent and
hence yields a better response rate. This requires the researcher to put some thoughts into asking
questions that are relevant to the respondent and in a logical sequence.
4. Succinct: A succinct questionnaire asks questions that aim to answer only the research objectives.
Any questions beyond the scope of the research should be excluded. It is
common for researchers to "cast the net wider" so that they will collect more data, regardless of
whether these data are important or not. This usually happens when the researcher has not properly
thought through the research objectives. It runs the risk of asking too many questions and the
questionnaire runs into many pages.
Merits of Questionnaire Methods
i) Economical: In comparison to other methods of data collection (observation methods, case study,
interview etc.) the mailed questionnaire method is the cheapest and quickest method. The cost in
this method is only that of getting the questionnaire prepared and the postage expense. There is no
need to visit the respondents personally or continue the study over a long period.
ii) Less skill of administration: The questionnaire method requires less skill to administer than an
interview, observation or case study method of data collection.
iii) Research in wide area: If the informants or the respondents are scattered in large geographical
areas, the Questionnaire method is the only means of research. The other methods of data
collection such as schedule, interview or observation method do not prove to be successful. Even
after spending large amount money, it may not be possible to collect the information quickly but
through questionnaire method, large areas can be covered. Some times certain agencies also
cooperate in the task of dispatches or sending of the questionnaire to the informants.
iv) Time Saving: Besides saving money, questionnaire method saves time. Simultaneously hundreds
of persons are approached through it whereas if they are to be interviewed it may take a long time.
v) More reliable in special cases: This is a method of collecting data in an objective manner through
standardized impersonal questions. The respondents give free, frank and reliable information.
Moreover the informants or respondents are free to give information as and when they want.
Because of this freedom, the information that is provided is more dependable and reliable.
vi) Free from external influence: In questionnaire method, informants or respondents are free from
external influences, as researcher is not present. They provide reliable, valid and meaningful
information based on his knowledge, views and attitudes.
vii) Suitable for special type of responses: The information about certain problems can be best
obtained through this method. For example, the research about marital relations, dreams etc. can
easily be obtained by keeping the name of respondents anonymous.
viii) Less errors: Chances of errors are very low, because the supply of information is given by the
respondent himself. A
ix) Originality: The informants are directly involved in the supply of information, so the method is
more original
x) Uniformity: The impersonal nature of questionnaires ensure uniformity from one measurement
situation to another.
xi) Collection of information relevant to the objective: Through this method, the questionnaires are
framed according to the objective, hence data collection is also accordingly to that objective.
Demerits of Questionnaire Methods
i)Lack of interest: Lack of interest on the part of respondents is very common. The respondents get
disinterested due to large number of questions.
ii) Incomplete response: Some respondents give answers which are so brief that the full meaning is
incomprehensible.
iii) Useless in-depth research problems: If a problem requires deep and long study, it cannot be
studied through this method.
iv) Inelastic: This method is very rigid since no alteration may be introduced.
v) Prejudices and biases of the researcher influences the questions: Since researcher frames the
questions his personal views, prejudices and biases influence the questions instead of becoming
objective and impersonal, he becomes biased and prejudiced.
vi) Poor response and lack of reality: All the informants do not give answers or do not fill the
questionnaire. There is a large percentage of those who do not send back the questionnaire. This
makes the study unreliable.
vii) The incompleteness of the form of questionnaire: Sometimes the questionnaire is itself
incomplete and some of the important aspects about which the information is required are not
given, hence data collected is neither reliable nor helpful for the study.
viii) Lack of personal contact: There is no provision in this method for coming face to face with the
respondent. This may result in manipulation of replies by the respondents.
Methods of Questionnaire
1.Computer questionnaire. Respondents are asked to answer the questionnaire which is sent by
mail. The advantages of the computer questionnaires include their inexpensive price, time-
efficiency, and respondents do not feel pressured, therefore can answer when they have time, giving
more accurate answers. However, the main shortcoming of the mail questionnaires is that
sometimes respondents do not bother answering them and they can just ignore the questionnaire.
2.Telephone questionnaire. Researcher may choose to call potential respondents with the aim of
getting them to answer the questionnaire. The advantage of the telephone
questionnaire is that, it can be completed during the short amount of time. The main disadvantage
of the phone questionnaire is that it is expensive most of the time. Moreover, most people do not
feel comfortable to answer many questions asked through the phone and it is difficult to get sample
group to answer questionnaire over the phone.
3. In-house survey. This type of questionnaire involves the researcher visiting respondents in their
houses or workplaces. The advantage of in-house survey is that more focus towards the questions
can be gained from respondents. However, in house surveys also have a range of disadvantages
which include being time consuming, expensive and respondents may not wish to have the
researcher in their houses or workplaces for various reasons.
4. Mail Questionnaire. This sort of questionnaires involve the researcher to send the questionnaire
list to respondents through post, often attaching pre-paid envelope. Mail questionnaires have an
advantage of providing more accurate answer, because respondents can answer the questionnaire
in their spare time. The disadvantages associated with mail questionnaires include them being
expensive, time consuming and sometimes they end up in the bin put by respondents.
Steps in Design of Questionnaire
Designing a questionnaire is not a simple job as it looks at first sight. A marketing researcher
intending to collect primary data has to be extremely careful in deciding what information is to be
collected. How many questions are to be formulate, what should be their sequence, what should be
the working of each question, and what should be the layout of the questionnaire. The factors
include:
1.Type of information to be collected: While attempting to design a questionnaire, the marketing
researcher has to first as himself what type of information he needs from the survey. He should
seriously consider this question as it will have considerable repercussion on the usefulness of the
survey.
Generally there are different type of information in marketing research. The information could be
one of more following types :
1) Facts
2)Quasifacts
3) Awareness r penetration of information
4) Opinions
5) Attitudes
About the information of questions should be collected for good questionnaire.
2.Types of questions : The second important aspect in the designing of a questionnaire is to be
decided which type of decision are to be used. Question can be classified various types.
1) Open ended questions 2) Dichotomous questions
Do you use tobacco in any way?
Yes - No
There cannot be a third answer. However in some cases, there may be a third answer which may
come from those who do not want to take a definite stand on way or the other.
For example, take the following question
Do you like to watch movies ?
Yes - No
Neither like nor dis like
The third alternative may be included so as to provide for the those respondents who do not have a
positive preference or aversion to movies.
In the case of multiple choice questions, the respondent is offered tow or more choice for example
the following is multiple choice question. Which of the following brand\ brands do you use for
washing clothes ?
Rin -, Det-, 501 Blur Bar -, Super 777 Bar
Wheel-, Bonus-, Swastic-, Any other
The respondent is likely to take more to answer a multiple-choice question as compared to
dichotomous one. Also, more time is required in the editing, tabulation and interpretation of data.
3.Preparation of questionnaire : The next issue in preparation of a questionnaire is how to phrase
the questions. The way in which a question is drafted is very important as a slightly suggestive
wording would elicit a very different answer from the respondent. Consider, for example, the
following question : don't you think that this is a sub standard product who do not have a definite
opinion about the product, are likely to agree that it is of sub standard quality.
4.Order of questions : Another aspect that should receive the attention of the researcher is the
sequence or order of questions to be contained in a questionnaire. Since, in the beginning, the
researcher has to establish some rapport with the respondent, it is necessary that questions asked at
the beginning are simple and thereby helpful in establishing the rapport. Difficult questions or those
on sensitive issues should be relegated to the end of the questionnaire. Further questions of general
type should be asked in the beginning while those which one specialized, needing some in depth
information from the respondents, should de left to the end.
5)How many questions to be asked: The researcher has also decide how many questions one to be
asked. We may add that the number of questions is not so important as the actual length of the
questionnaire. Too lengthy a questionnaire is disadvantage for the respondent. Their opinion and
reaction will be very helpful to marketing researcher.
6) Layout of the questionnaire : Finally, the researcher or some one on his behalf has to decide
about the layout of the questionnaire. This implies that the document should be set in such a way
that it leaves a favourable impression in the mind of the respondent. It should be neatly printed and
the individual pages should not have to many questions so as to appear crowded.
7)Mail questionnaire : So far the discussion was confined to the designed of questionnaire to be
filled in by personal interviews. In fact, the type of questionnaire to be designed depends on the
type of survey. Broadly, there one three types of survey, personal, mail and telephone. As far as the
telephone survey is concerned, it is not commonly used in India. As such personal interview and mail
survey are the only two methods. Since a mail survey need a questionnaire which should have some
additional characteristics, it is necessary for marketing researcher.
8.Pre testing the questionnaire : Once the questionnaire is ready, it should be pre tested of the
questionnaire implies that it is tried out on a few respondents and their reaction to the
questionnaire is observed. It helps the researcher decide whether any changes in question. Content
or the wording of the questions are called for. If so, specific changes that are desirable can also be
ascertained and incorporated in the questionnaire.
Questionnaires for Shampoo Brand
Selection of Shampoo Brand - Questionnaire Design a questionnaire to determine buying behaviour
of urban women in selection a shampoo brand.
Questionnaire Format
1) How would you classify your hair?
a) Natural b) Dry c) Only
2) How often do you buy a Shampoo?
i)Once in a month
ii)Once in 1 - 2 months
iii)Once in 2 - 3 months
iv) Once in 3 - 6 months
v) 6 months and above
3)What is your favorite brand of shampoo?
4)If your favourite brand is not available in retail store will you
a) Try another brand
b) Go to another shop
c)Postpone your purchase
5) What size of shampoo do you normally buy
a)small b) Medium c) Large
6.Please examine the following reasons for choosing your shampoo. Use a five point scale of strongly
agree to disagree
a) Strongly agree d) Disagree
b) Agree c) Neither agree or disagree e) Strongly Disagree
i) It has good fragrance ( )

ii) It gives good lather ( )

iii) It has anti dandruff quality ( )
iv) It is herbal based ( )
v)It suits and conditions your air ( )
vi) If comes in sleek container ( )
vii) It is reasonable priced ( )
viii) It is available in different sizes ( )
7.Do your frequently change your brand of shampoo ?
YES/NO
8. How long have been using your current brand of shampoo
a) Last six months do
b) Last one year
c) Last couple of years.
9.How did you first use it ?
a) A friend suggested
b) Beautician advised
c) I like experimenting
e) Cannot say now
d) Advertisement claims induced me
8.Do you think that lemon, herbal, egg and natural shampoo is actually different in composition.
a) YES b) NO c) CANNOT SAY
9.Please give the following information about your identify.
a) Age b) Occupation c) Family income
 UNIT-III
SECONDARY METHOD OF DATA COLLECTION
The data collection is a process of gathering information from all the relevant sources to find a
solution to the research problem. It helps to evaluate the outcome of the problem. The data
collection methods help a person to conclude a solution for the relevant question. Most of the
organization uses data collection methods to make assumptions about future probabilities and
trends. Once the data is collected, it is necessary to under do the data organisation process.
The main sources of the data collections methods are "Data". A data can be classified into two types,
namely primary data and the secondary data. The primary importance of data collection in any
research or business process is that it helps to determine many significant things about the
company, particularly the performance. So, the data collection process plays an important role in all
the streams. Depends on the type of data, the data collection method is divided into two categories
namely,
Primary Data Collection methods
Secondary Data Collection methods
Secondary data is data collected by someone other than the actual user. It means that the
information is already available, and someone analyses it. The secondary data includes magazines,
newspapers, books, journals etc. It may be either published data or unpublished data.
Features / Characteristics of Secondary Data
1) Data reliability: The secondary data that is to be used should be reliable. The data connection
analysis should be done and questions like who collected the data, what were the sources of the
collected data, when was the data collected and what were the methods used to collect it, what's
the desired level of accuracy achieved and if there any bias by the compiler. These are the primary
questions that need to be answered before using any data. Answering these questions will help to
establish reliability on the secondary data.
2)Suitability of the data : The data should be suitable for the research that is to be conducted
because the data that is suitable for one research may not be necessary is suitable for other
research. This is why the data that is found should be scrutinized properly and should not be used by
the researcher directly.
3) Data sufficiency: If the present problem of the researcher is not answered by the data then it
should be considered as inadequate and should be refrained from using by the researcher. The data
will not be considered sufficient if the scope of the researcher is narrower or wider than the
secondary data that is collected.
Sources of Secondary Data
A) Internal Sources of Secondary Data
B) External Sources of Secondary Data
A) Internal sources can be classified under four broad categories
1) Accounting Records: Accounting records generate a good deal of data. As profits are based sales,
sales invoice is a good source. Normally, a sales invoice includes name of the customer, Address of
the customer, items ordered, quantities ordered, quantities snipped, discounts allowed, price
charged, total Amount of sales and the date of sales. Such Information can be extremely useful in
undertaking a detailed Analysis of sales by product, customer, industry, geographic area, sales
territory and sales representative. A part from this data on advertising expenditure along with the
time period would also be available.
2) Sales Force Reports: This source can provide a very useful marketing information to the company.
It is necessary to organize the system properly. It should be a simple process of reporting the
information. Sales persons may be encouraged to provide accurate and comprehensive. Information
Based on this information some incentives may be given to those who report accurately and
adequately.
3) Miscellaneous Reports: Any study done earlier on marketing problem of the company special
audit etc. come in this category .Such reports on varying subjects should be properly maintained and
easily accessible when required.
4) Internal Experts Reports: Finally, experts working in the company can also be a good source of
internal data. Executives working as product managers, marketing research manager, public
relations, personal and advertising personnel have specialized knowledge relevant to marketing
problems. The experts can provide useful information or ideas on a given marketing problem
whenever a serious discussion shield in a meeting.
B) External Sources of Secondary Data The external sources are as follows:
1) Govt. Publications: A large built of secondary data useful to a marketing researcher is found in
various govt publications. Publications include.
1) Basic statistics relating to the Indian economy
2) RBI bulletin
3) Currency and finance reports
4) The economic survey
5) Agricultural situation in India
6) The Indian labour journal
7) The Indian labour year book
8) State statistical abstracts& district statistical hand books and others.
9) National sample survey (NSS)
10) Central Statistical organization (CSO)
2) Non Govt. Publications : Besides the official agencies, there are a number of private organizations
which bring out statistics in one from to another on a periodical basis. Of these various industry and
trade associations are important
1) Stock exchange directories
2)Marketing research of exports & imports good
3)Financial positions of finance institution
4) Study of foreign market
5) National level information & others
3) Syndicated Services: Syndicated services are provided by certain organization, which collect and
tabulate marketing information on a continuing basis. Reports based on the marketing information
collected by such organizations are sent periodically (weekly, monthly or quarterly) to clients who
are subscribers. Syndicate services are normally designed to suit the requirement of many
individuals or firms. Such services are particularly useful in the spheres of TV viewing, magazine
readership and the movement of consumer goods through retail out lets.
4) Consumer research services :
A.Consumer research :
1) Usage and attitude studies
2) Brand image & positioning research
3) New product development research
4) Advertising research
5) Product testing
6)Test marketing
7) Market estimation & forecasting
8) Market modelling
9) Customized panel research
B.Qualitative Research :
1) Motivation research
2) Life cycle research
3)Concept & valuation
4) Corporate image research
5)Strategic research
C.Marketing Agency services :
1) Behavioral & attitude research
2) Product & packaging studies
3) Test marketing studies
4) Corporate image studies
5) Campaign evaluation
6) Media studies
7) Opinion surveys
8) Industrial market research
5.Publications of International organisations : So far the discussion was confined to national
organization. There are several org's that publish statistic in their respective areas. Some of these
org publish data on India along with that of other countries. The main advantage of such data is that
international comparisons can be drawn. Research international has focused its technical
development on the following SIX areas:
1) Product development
2) Customer care
3) Advertising
4) Employee issues
5) Branding corporate image
6) Idea generation and problem solving.
Precautions of Secondary Data
Suitable Purpose of Investigation: The investigator must ensure that the data are suitable for the
purpose of enquiry.
Inadequate Data: Adequacy of the data is to be judged in the light of the requirements of the survey
as well as the geographical area covered by the available data.
Definition of Units: The investigator must ensure that the definitions of units which are used by him
are the same as in the earlier investigation.
Degree of Accuracy: The investigator should keep in mind the degree accuracy maintained by each
investigator.
Time and Condition of Collection of Facts: It should be ascertained before making use of available
data to which period and conditions, the data was collected.
Comparison: Investigator should keep in mind whether the secondary data' reasonable, consistent
and comparable.
Test Checking: The use of the secondary data must do test checking and see that totals and rates
have been correctly calculated.
Homogeneous Conditions: It is not safe to take published statistics at their face value without
knowing their means, values and limitations.
Evaluation of Secondary Data
1.Availability: It has to be seen that the kind of data you want is available or not. If it is not available
then you have to go for primary data.
2.Relevance: It should be meeting the requirements of the problem. For this we have two criterion :
a.Units of measurement should be the same.
b. Concepts used must be same and currency of data should not be outdated. 3.Accuracy: In order to
find how accurate the data is, the following points must be considered:
a. Specification and methodology used;
b. Margin of error should be examined;
C. The dependability of the source must be seen.
4.Sufficiency: Adequate data should be available. Robert W Joselyn has classified the above
discussion into eight steps. These eigh steps are sub classified into three categories. He has given a
detailed procedure foR evaluating secondary data.
1. Applicability of research objective
2. Cost of acquisition.
3. Accuracy of data.
Benefits of Secondary Data
1.Time Saving: The first advantage of using secondary data has always been the saving of time. Not
enough with this, in the so called Internet Era, this fact is more than evident. In the past, secondary
data collection used to require many hours of tracking on the long libraries corridors. New
technology has revolutionized this world. The process has been simplified. Precise information may
be obtained via search engines. All worth library has digitized its collection so that students and
researchers may perform more advance searches.
2.Accessibility: In the past, secondary data was often confined to libraries or particular institutions.
Internet has especially been revolutionary in this sense. Having a internet connection is frequently
the only requirement to access. A simple click is sometimes more than enough to obtain vast
amount of information. The problem, nevertheless, is now being able to see whether the data is
valid.
3.Saving of money: Strongly connected to the previous advantages is the saving of money. In
general, it is much less expensive than other ways of collecting data. One may analyze larger data
sets like those collected by government surveys with no additional cost.
4.Feasibility: Feasibility is of both longitudinal and international comparative studies. Continuous or
regular surveys such as government censuses or official registers are especially good for such
research purposes.
5.Generating new insights from previous analyses: Reanalyzing data can also lead to unexpected
new discoveries. Returning to the previous example, the World Values Survey Association usually
publishes the so called World Values Survey Books. They are a collection of publications based on
data from the World Values Surveys. Since the database used may be accessible for outsider, you
can analyze the data and come up with new relevant conclusions or simply verify and confirm
previous results.
ADVANTAGES OF SECONDARY DATA
1.Ease of access: There are many advantages to using secondary data. This includes the relative case
of access to many sources of secondary data. In the past secondary data accumulation required
marketers to visit libraries or wait for reports to be shipped by mail. Now with the availability of
online access, secondary data is more openly accessed. This offers convenience and generally
standardized usage methods for all sources of secondary data.
2. Low cost to acquire: The use of secondary data has allowed researchers access to valuable
information for little or no cost to acquire. Therefore, this information is much less expensive than if
the researchers had to carry out the data themselves.
3.Quality: An individual investigator cannot match the quality or size of the firms that obtained much
of the, existing secondary data. The information is gathered by trained personnel specialized in data
collection. Also many organizations may not release their data to individual researcher but may give
it to firms.
4. Availability: These are sometimes available even in those cases where primary investigations are
not possible.
5. Bases for Comparison: They are useful in the case of exploratory researches as they provide
increased understanding of the problem.
6. Generates Feasible Alternatives: Secondary data are very useful in generating viable alternatives
to solve problems. The multiplicity of data sources, research approaches and managerial styles
usually lead to a number of possibilities which should be examined by the researcher.
7.Clarification of data question: The use of secondary data may help the researcher to clarify the
data question. Secondary data is often used prior to primary data to help clarify the data focus.
8. May answer researcher question: The use of secondary data collection is often used to help align
the focus of large scale primary data. When focusing on secondary data, the researcher may realize
that the exact information they were looking to uncover is already available through secondary
sources. This would effectively eliminate the need and expense to carry out their own primary data.
9. Difficulties in conducting primary research: In many cases, the originators of secondary data
include details of how the information was collected. This may include information detailing the
procedures used in data collection and difficulties encountered in conducting the primary data.
Therefore, the detailed difficulties may persuade the researcher to decide that the potential
information obtained is not worth the potential difficulties in conducting the data.
DISADVANTAGES OF SECONDARY DATA
1.Quality of data: There are some disadvantages to using secondary data. The originators of the
primary data are largely self-governed and controlled by the marketer.
2. Not specific to researcher's needs : In many cases, secondary data is not presented in a form that
exactly meets the researcher's needs. Therefore, the researcher needs to rely on secondary data
that is presented and classified in a way that is similar to their needs.
3. Incomplete Information : In many cases, researchers find information that appears valuable and
promising. The researcher may not get the full version of the data to gain the full value of the study.
This is because many data suppliers offer free portions of their data and then charge expensive fees
for their full reports.
4. Not Timely: When using secondary data, one must exercise caution when using dated information
from the past. With companies competing in fast changing industries, an out-of-date data reports
many have little or no relevance to the current market situation.
5.Relevance: The data may not fit into the needs of investigation. There may be difference in the
units of measurement; there may be surrogated data; discrepancy of classes and data may pertain to
some other period of time. 6.Accuracy: It is observed that it is rather difficult to measure the degree
of approximations used in the collection of information as well as the competence of the
investigator in motivating the persons to supply the desired information.
7.Existence of Obsolete Information: Information may be outdated or obsolete.
8. Nondisclosure of Research Findings: All the findings of a research study may not be made public.
9.Seldom Catering to the Need: The available data may not suit the current purpose of research, due
to incompleteness, generalities and so on.
10. Other Limitations
i) There may be difficulties in the identification of the source.
ii)Errors may be there in recording or transferring information from secondary sources.
iii)The facilities or capabilities of the agency that originally collected the data might be questionable.
CRITERIA FOR EVALUATING SECONDARY SOURCES
Reliability: The first criterion of evaluation of secondary data is the reliability of the data. For testing
the reliability of the source and data, the researcher should some queries such as: who has collected
the data; where from the data were collected; is the compiler dependable in regard to honesty,
integrity, experience and training; is the source of the data dependable in regard to accuracy,
adequacy and consistency; are the methods of collection proper and dependable; at what time, the
data were collected; was there a possibility of bias, and prejudice creeping into the mind of the
researcher; what period is covered by the and how for it is relevant for the present study etc.
Adequacy: While evaluating the secondary data it must be observed that data provide the adequate
or sufficient information for the purpose of the enquiry. As pointed out earlier, loo much of data
may prove to be confusing and irrelevant. Similarly, to less of data, also, will not serve the purpose
and give the true picture of the problem understudy. Therefore, the data must be adequate for the
purpose. Whether the data collected from the secondary sources are adequate, or not can be tested
in the light of some quarries such as: what was the geographical area from which the data were
collected; is the area of collection wider or narrower than the area covered under the present study;
what is the period covered by the data; is the period covered by the data commensurate with period
of the problem under study; what was the degree of accuracy achieved with the collected data etc.
Suitability: While evaluating the secondary data it must be observed that the information should be
suitable for the present study. If the data collected are not suitable then it defeats the whole
purpose of the inquiry and lead to erroneous conclusions. The suitability of the data depends up on
the goodwill of the institute.
4. Relevance of the Data: Secondary data should be as per the requirements of the study
undertaken. For this purpose researcher can employ three criterion such as, units of measurement
should be the same, the concept used must be same and the data should not be outdated,
5. Sufficiency: The data available should be sufficient to carry out the research project. The success
and completion of any research project depends upon the sufficiency and availability of the data.
Otherwise it will be misuse of time, energy and resources.
6. Specification: The specification or use of methodology to collect the data should be critically
examined to identify the possible sources bias. The researcher should look into various
methodological considerations such as size and nature of sample, response rate and quality,
questionnaire design and administration, procedure used for field work, data analysis and reporting
procedure. These considerations will help the researcher in establishing the reliability, validity and
accuracy of the data to arrive at the correct conclusions. 7.Accuracy: To establish complete accuracy
of data collected, the researcher should essentially be intelligent, trained and well versed in the field
of enquiry. Ordinarily, if there is a wrong response at any stage in the questionnaire it must be
subsequently followed by similar answer to other questions. A capable researcher will have no
problem in tracing out and removing such discrepancies committed knowingly or unknowingly.
8.Currency: Currency means the data should be related with the current time or it should not be
outdated. Sometimes the time lag between data collection and data publication is long as incase of
census data. This time lag defeats the purpose of the study. The business research requires current
data otherwise the value of secondary data is diminished as it become outdated. The less the time
lag between the data available and the data required the more suitable it is for the research
purpose.
9.Objective: The data are collected with some objective in mind. The objective for collecting data will
ultimately determine the purpose for which that information is relevant and useful. Data collected
with specific objective of one study may not be useful and appropriate for another study.
10.Quality of the Data: The quality of the secondary data may be determined by evaluating the
reputation and working of the institutions from which data is collected. Though the quality of the
data can also be judged by the other factors as well.
11. Content of the Data : The content or nature of the data should be examined by the researcher
with special attention in accordance with the objectives of the study, definitions of key concepts and
variables, the units of measurements and the methods to be used for the analysis and
interpretation. In case the nature of the data is not consistent with these factors then the usefulness
of data is doubtful.
12.Dependability: The dependability of data may be determined by examining the credibility,
goodwill, trustworthiness and expertise of the institution or source of the data. In this context the
previous researches and user of the data can be fruitful source that can provide the valuable input
regarding the dependability of the source and the data.
13.Uniformity of the Data: The different units of measurement in different forms may be used to
express a particular problem under investigation. For example, in studying a problem some may
mention wheat production in quintals and some others in tons. To bring uniformity in data, it is
necessary to bring them into uniform units.
14.Consistency of the Data: While evaluating the data the process of cross checking helps a lot in
detecting the contradictory statements, such as questions concerning the same facts are expressed
under different headings. If the questions are arranged in proper sequence the errors can be traced
out easily. Suppose two questions in the questionnaire are (i) Are you married? And (ii) How many
children do you have? If their answers are given as 'No' and 'Two' respectively, there is no second
opinion that the questionnaire had not been properly filled in.
15.Completeness of the Data: If it is detected that a particular question in the questionnaire has not
been replied, it must be got corrected. If the discrepancy is not rectified the questionnaire should
not be counted. But if the question is not of much significance the investigator should himself fill it
by the most probable answer if possible on the basis of the other questions to avoid any
unnecessary delay in taking up the further processing.
16. Homogeneity of the Data : While using the data the researcher must observe that the data
obtained from a particular or various sources is of homogeneous nature. Homogeneity refers to the
equality or sameness in the sense of taking the things.
SECONDARY SOURCES OF DATA IN INDIAN CONTEXT
Data collection is one the most prominent stages of conducting a research. Data collection methods
require thorough planning and patience on the part of the researcher in order to provide exactly as
per the requirements. In the field of business research, data collection is the primary function that
affects the result of a research to a large extent. It is thus imperative to maintain the accuracy in
order to assure the quality of the research. Data collection companies in India and rest of the world
are in great demand today among organisations for collecting relevant data. These data collection
firms help the organisations in framing important marketing strategies for them by providing vital
statistics related to their target market. Today, data collection companies in India are functioning for
all streams be it small or large businesses, social sciences, or humanities etc.
Secondary Sources of Data in India
1. Various publications of Central, State and local governments: The important official publications
are Statistical Abstract, India-Annual; Monthly Abstract of Statistics (both published by Central
Statistical Organisation); Indian Agricultural Statistics (Annual) (Published by Ministry of Food and
Agriculture); Index Number of Wholesale Prices in India (Weekly) (Published by Ministry of
Commerce and Industry); Reserve Bank of India Bulletin (Monthly) (Published by Reserve Bank of
India).
2. Various publications of foreign governments or of international bodies: The important
publications are publications of international bodies like UNO, FAO, WHO, UNESCO, ILO, Statistical
Year Book (Published by the Statistical Office of the United Nations), Yearbook of Labour Statistics
(Published by ILO, Geneva). The secondary data provided by such publications are authentic, but
along with other things, one must be specially careful about the units in respect of currency, weight
etc. which greatly vary from one country to another.
3.Journals of trade, commerce, economics, engineering etc.: published by responsible trade
associations, Chambers of Commerce provide secondary data in respect of some important items.
Some examples of this kind of publications are "Annual Report of the Chief Inspector of Mines in
India" (issued annually by the office of the Chief Inspector of Mines, Dhanbad) and "Indian Textile
Bulletin (issued monthly by the Textile Commissioner, Bombay).
4. The other sources of secondary data are books: The other sources of secondary data are books,
magazines and newspapers, reports prepared by various universities, historical documents, diaries,
letters, unpublished biographies and autobiographies.
 1

UNIT-IV
MEASUREMENT OF SCALING
The word scale or scaling is generally used for indicating measurements or measuring something. Many
aspects of social phenomena like emotion, attitude, faiths etc. are not measurable directly. They are not
quantitative in nature. In social phenomena there are two types of variables quantitative and
qualitative. Measurement or scaling implies conversion of qualitative data into quantitative data and
then measuring them. Various kinds of statistical measurements are used for this purpose. Scaling is an
attempt to bring about greater accuracy which is desired in both physical and social sciences.
Measurement is the process of assigning numbers or labels to objects, persons, states, Measurement
then, is a procedure used to assign numbers that reflect the amount of an attribute possessed by an
event, person, or object.
Definitions of Measurement
According to S.S.Stevens, Measurement is the assignment of numerals to objects or events according to
rules.
According to Campbell," Measurement is the assignment of numbers to represent
properties.
Objectives of Measurement
A.Reliability: The measurement should be reliable by producing consistent results when certain research
methods are repeated.
B.Validity: An instalment is valid when it measures what it is supposed to measure, but since attitudes
are elusive, validity is not possible.
D. Sensitivity: The measurement should result in identifying changes or differences.
C.Relevance : Facilitates the decision-maker by producing relevant information.
E. Versatility: Versatility or robustness of measurement for various statistical interpretations is a desired
goal, especially for assessing the results validity and for drawing maximum meaning.
Process of Measurement
Step-1: Identify the Concept of Interest: The step of any measurement process begins with concept of
interest we are interested to study. The concept is based on the identification of an appropriate
research objective. It will guide to fix the concepts very closely.
Step 2: Develop a Construct: Once, the concept to be studied is identified researcher has to develop an
accurate and elaborate comprehension of the target construct and needed theoretical background and
supportive factors. The value of specific constructs depends on how useful they are in explaining,
predicting, and controlling phenomena.
Step - 3: Define the Concept Both Constitutively and Operationally: The third and fourth steps in the
research process are to first define the concept constitutively and the operationally. A constitutive (or
theoretical or conceptual) definition defines a concept with other concepts and constructs, establishing
boundaries for the construct under study; it states the central idea or concept under study. All
constructs, to be scientifically useful, must be capable of being used in theories. A constitutively defined
concept should fully distinguish the concept under investigation from all other concepts.
Step-4: Measurement Scales: The next step involves identifying the appropriate scales to measure the
constructs involved in the study. The most common reason for developing scaling is for scoring
purposes. When a participant gives their responses to a set of items, we often would like to assign a
single number that represents that is the person's overall attitude or belief. A scale that is developed for
marking research purpose may have any number of dimensions within it. If we want to measure a
 2

construct, we have to decide whether the construct can be measured well with one number line or
whether it may need more.
Step-5: Reliability and Validity: The next crucial and little bit technical exercise is assessment of the
reliability and validity of the instrument developed for the marketing research
product.
1. Reliability: Is the degree to which measures are free from random error and,
therefore, provide consistent data.
2,Validity: Validity addresses the issue of whether what we try to measure was actually measured
Sources of Variations in Measurement
1. Random Error: Random error is caused by any factors that are uncontrollable and unpredictable, this
will affect measurement of the variables considered for the research.
2. Systematic Error: Systematic error is caused by any factors that systematically affect measurement of
the variable across the sample. Unlike the random sampling error, systematic errors tend to be
consistently either positive or negative; thus, the systematic error is sometimes considered to be bias in
measurement. The sources of systematic error are many respondent, (ii) some factors in the
communication situation, (iii) researcher, (iv) the instrument being used.
Sources of Errors in Measurement
a) Response Error: sometimes the respondent may be reluctant to express strong negative feelings or
they may have very little knowledge about various aspects but he will not admit his ignorance. The
figure, boredom, anxiety etc of the respondents may limit the ability of the respondent to express his
response accurately. In these situations the researcher has to make guesses in interviews. These guesses
may sometimes be erroneous, thus resulting into wrong measurement.
b) Situational Error: situational factors also cause error in measurement. If something happens at the
time of interview which places a strain on the interview that will have serious effects on the response
from the respondent. For example, if somebody is present at the time of interview the respondent may
not reveal facts correctly.
C)Errors Due to Faulty Instruments: Use of complex words, ambiguous meanings, poor printing,
inadequate space for replies etc may result in measurement errors.
Measures to Reduce Measurement Errors
1.Pilot test the marketing research instruments; that is the process of obtaining feedback from a field
study from about 25-50 respondents about how easy or hard the measures; also, you can collect
information about how the testing environment affected their performance.
2. Train field force - if you are gathering data using people to collect the data (as interviewers or
observers), you may make sure that you train them thoroughly so that they are not inadvertently
introducing error.
3. Cross check the data. All data entry for computer analysis should be "double punched” and verified or
at least random verification of a sample portion. This means that either you have to enter the data
twice, which is a costly affair; or you can take randomly few response sheets [questionnaires] and check
the accuracy of data entry.
4. Use appropriate statistical procedures, which can take care of measurement errors. The statistical
procedures are ranging from simple formulas you can apply directly to your data to very complex
modelling procedures [procedures like SEM/ LISREL], for modelling the error and its effects.
5. Use multiple measures of the same construct; however there is a danger of respondents losing
interest.
CONCEPT OF SCALING
A scale is a continuous spectrum or series of categories. The purpose of scaling is to represent, usually
quantitatively, an item's, a person's, or an event's place in the spectrum.
Levels of Measurement
 3

The level of measurement refers to the relationship among the values that are assigned to the attributes
of a variable. There is a hierarchy implied in the level of measurement idea. At lower levels of
measurement, assumptions tend to be less restrictive and data analyses tend to be less sensitive. As the
levels go up, the current level of measurement will include all the characteristics / qualities.
There are typically four levels of measurement.
1. Nominal scale - codes
2.Ordinal scale - ranks
3. Interval scale- rating from high to low
4.Ratio scale percentages.
TYPES OF SCALES
Nominal Scales
A nominal scale partitions data into categories that are mutually exclusive and collectively exhaustive.
This implies that every bit of data will fit into one and only category and all data will fit somewhere in
the scale.
The term nominal means "namelike," implying that the numbers assigned to objects or phenomenon are
naming or classifying but have no true number meaning; the numbers cannot be ordered, added, or
divided. The numbers are simply labels or identification numbers and nothing else.
Ordinal Scales
Maintain the labeling characteristics of Nominal scales plus an ability to order data. Ordinal
measurement is possible when the transitivity postulate can be applied. A postulate is an assumption
that is an essential prerequisite to carrying out an operation or line of thinking. The transitivity postulate
may be described by the notation that "if A' is greater than 'B', and 'B' is greater than A', then A is
greater than "O". Other terms that can be substituted are is preferred to, is stronger than, or precedes.
Example: Please rank the following airlines from 1 to 5 with 1 being the most preferred and 5 being the
least preferred.
Swiss ________________
Air India______________
Air Sri Lanka ________________
Emirates _______________
QANTAS _____________
Ordinal numbers are used strictly to indicate rank order. The number do not indicate absolute
quantities, nor by they imply that the intervals between the numbers are equal.
Interval Scales
Interval Scale contains all the features of ordinal scale with the added dimension that the intervals
between the points on the scale are equal. The concept of temperature is based upon equal intervals.
Market researchers often prefer to use interval scales over ordinal scales because they can measure
how much of a trait one consumer has (or does not have) over another. Interval scales enable a
researcher to discuss differences separating two objects. The scale possess properties of order and
difference but with an arbitrary zero point; for example, Fahrenheit and Centigrade scales. Thus, the
freezing point of water is zero one scale and 32 degree on the other.
Ratio Scales
Ratio Scales Ratio scales have all the powers of those previously discussed as well as a meaningful
absolute zero or origin. A ratio scale reflects the actual amount of a variable. Physical characteristics of a
respondent such as age, weight, or height are examples of ratio-scaled variables. Other ratio scales are
based on area, distance, money values, return rates, population counts, and lapsed periods of time.
Selection of Measurement Scale
 4

1. Study objective: Researchers may have two general study objective viz., to measure the
characteristics of the respondents and to use respondents as judges of the objects or indicants
presented to them.
2. Response form: Three types of measuring scales viz., rating, ranking and categorization can be used.
Rating scale is used when respondents score an object or indicant without making a direct comparison
with another object or attitude. Ranking scales enable to make comparison among two or more
indicants or objects. Categorization enables to put the subjects involved in groups or categories.
3. Degree of preference: Measurement scales may involve preference measurement or non preference
evaluation. In case of preference measurement respondents are asked to choose the object preferred.
In case of non preference evaluation the respondents are asked to make judgments without any
personal preference towards objects or solutions.
4.Data properties: The data properties should also be viewed in case of decisions regarding
measurement scales. The data can be classified as nominal, ordinal, interval and ratio. The statistical
application depends on the assumptions underlying each data type.
5.Number of dimensions: Measurement scales can be uni-dimensional or multidimensional. In case of
uni-dimensional scale only one attribute of the respondent is measured. Multidimensional scaling
recognizes objects as consisting of multiple dimensions.
6.Scale construction: Five construction approaches are available viz., arbitrary, consensus, item analysis,
cumulative and factoring. The researcher should take into consideration of both ie, the type of
measurement and the scale's construction when selecting an appropriate scale.
SCALING TECHNIEQUES/ATTITUDE SCALES
Attitude scales evolve out of a series of short but carefully formulated statements of propositions
dealing with selected aspects of issues, institutions or groups or people under investigation. An
individual reacts verbally with approval or disapproval, to the items on the scale. These reactions
quantify his position on issues under question.
Types of Scaling Techniques
Scaling techniques are broadly classified as comparative and non-comparative. Comparative scales
involve the direct measurement of stimulus objects and data have only ordinal or rank- order properties.
A.Comparative Scales
Comparative scaling procedures - The scales help respondent compare one brand
/product/firm/personality with another brand/product/firm/personality on the selected characteristics
or attributes.
1) Paired Comparisons: In this method the respondent can express his attitude by making a choice
between two objects, say between Coke and Pepsi according to. some criterion. In general, if there are
'n' stimuli to judge, the number of judgements required in a paired comparison is N=n(n-1)/2.
2) Rank Order Scaling : Rank order scaling is commonly used to measure preferences for brands as well
as attributes. In rank order scaling respondents are presented with several objects simultaneously and
asked to rank them according to some criterion.
3) Constant Sum Scaling: Constant sum scaling refers to a comparative scaling technique in which
respondents are required to allocate a constant sum of units such as points, rupees, chits, stickers or
chips among a set of stimulus objects with respect to some criterion. With this ordinal level technique
respondents are given a constant sum of units such as points, money or credits and then asked to
allocate them to various items.
4) Q-Sort Scaling: Q-Sort scaling discriminates among a relatively large number of objects quickly. This
technique uses a rank-order procedure in which objects are sorted into piles based on similarity with
respect to some criterion. For example, respondents are given 100 attitude statements on individual
cards and asked to place them into piles, ranging from "most highly agreed with" to "least agreed with".
 5

The number of objects to be placed in each pile is pre-specified, often to result in a roughly normal
distribution of objects over the whole set.
B) Non comparative scales
Non-comparative scaling procedures. The scales help respondents evaluate a product/brand/ firm/
personality on the selected attributes or characteristics. Their evaluation is independent of the other
product and/or brands.
The Non-comparative scales are:
1.Thurstones Attitude Scale
2. Likert Scale
3. Semantic differential
4. Guttman's scologram analysis
Thurstones Attitude Scale
In 1927 attitude research pioneer L.L Thurstone developed the concept that attitudes vary along
continua and should be measured accordingly. The Construction of Thurstone scale is fairly complex
process that requires two stages.
First stage is a ranking operation, which is performed by the judges who assign values (1 to 11) to
attitudinal statements. The second stage consists of asking respondents to respond to the attitudinal
statements. The procedure for constructing the Thurstone Scale is given as under :
Step-1: Select the issue say religion, democracy, morality, socialism etc. about which people's attitude is
to be measured.
Step-2: Prepare outline indicating the areas of attitude to be measured.
Step-3: Define the dimensions of attitude to be measured.
Step-4: Design and collect 100-150 attitudinal statements from literature, interview etc. covering the
whole range of attitudes from 'most favourable through neutral and to 'least favourable".
Step-5: Assign arbitrary numbers to the statements for identification.
Step-6: Reproduce the statements on uniform individual slip of paper.
Step-7 : Select a panel of 50 or more judges and who are expert in the study of attitudes.
Step-8 : Send the statements to these judges with a request to rate each statement's importance in
reflecting an attitude towards the issue being studied. Ask them to
rate each statement on 11 point (1 to 11) scale.
Step-9: On the basis of the judges' ratings, calculate the median value of their each item.
Step-10: In case the rating of the judges are scattered over the scale, this indicates that even among the
experts, there is no agreement as to the degree to which that statement reflects an attitude towards the
issue in question. Discard such statements. Construct a questionnaire/interview schedule comprising the
selected items.
Step-11: From the remaining statements select items that best reflect attitudes towards various aspects
of the issue. The scale is now ready for administration to the population whose attitudes are to be
measured.
Step-12: Administer the scale to a sample of respondents with instructions to tick the statement with
which they agree.
Step-13: Analyse the results to check on the internal consistency of the statements. In case respondents
who agree with statement say, with the scale value of 2-0 have also checked other statements with
widely differing scale value say 7.0 or 8.0, the statement has to be rejected as an irrelevant one.
Step-14: After eliminating such irrelevant items, the scale is finalised.
Advantages of Thurstones
1.The importance of each statement is determined by judges so it reflects the absolute attitudes of the
respondents.
2.The scale is able to indicate the intensity of people's attitudes.
 6

4.Scale is very simple to administer from the respondent's point of view.

3.The scale works best when only a single attitude is to be measured.
Disadvantages of Thurstones
1.The construction of this scale is time consuming process.
2.This is costly method.
3. This method is rarely used in the marketing research as it is costly and time consuming. The rating
may be influenced by the judge's personal attitude.
5. From historical perspective it is valuable but its current popularity is low.
Likerts Rating Scale
Rensis Likert developed an attitude measur-ement scale, where there are five response categories. The
respondent has to describe how far do they agree or disagree with the statements about the stimulus
objects.
Steps involved in Measuring Attitude on Likert Rating Scale It is an attitude scale, where researchers
design statements of attitudes and then experts assign ranking scale values to each statement. Next, the
respondents respond to the questionnaire of the final selected statements. Once valued scale it is now
losing its popularity in marketing research. It is a very complicated, lengthy and costly measuring scale.
These steps are
Step 1: At the outset, researchers use their field experience, literary knowledge and other sources on
the subject and collect a large number of statements related to the survey subject. The statements
frame two extremely opposite adjectives to describe the direction of a respondent's attitude.
Step 2: A panel of judges is set to select most appropriate statements for the survey on research
problem based on Thurston's five criteria.
The following are the five criteria on which the statements are selected. i) The statement should be
brief, so that the subjects can read whole statement without any discomfort or fatigue.
ii)The statements should be in a manner that they can be accepted or rejected in accordance with
respondent's attitude.
iii) The statements should indicate something regarding the respondents attitude of why they are
accepting or rejecting the statements.
iv) The statements included in the list should belong to the attitude variable which is to be measured.
v) Double-barelled statements should not be included in the list.
Step 3: The judges place the selected ten statements in an order of preference. Each statement is given
a rank based on its media position assigned by the panel.
Step 4: Final selection of statements is then made. Sample of statements whose median

scores are spread evenly from one extreme to the other are taken. The statements so selected
constitute the final scale to be administered to the respondents. The position of each statement on the
scale is same as determined by the judges. After developing the scale the respondents are asked to
check the statements with which they agree. The median value of the checked statement is worked out
to establish or quantify the opinion. The scale thus is used to measure attitude towards varied issues
and is very reliable for measuring a single attitude.
Limitations of the Likert Rating Scale
1.The equal appearing interval scale has been criticized on account of several limitations.
2.It requires large of number of persons to develop such a scale.
3.Developing of such scale is a cumbersome process, which requires considerable effort.
4.To construct such a scale, we need a good deal of time, which sometimes may not be available.
5.It involves large number of statements which may turn respondents into a state of discomfort.
6.There may be a possibility that the values assigned to the statements may be influenced by the
attitudes of the judges.
 7

Since, respondents have freedom to select those statements with which they agree, there is a possibility
of two or more respondents having the same attitude score.
Semantic Differential Scale
In simple terms, the Semantic Differential Scale is a type of survey usually used for psychological
measures. It helps to get to know your audience's approaches and perspectives. A researcher develops a
system of a survey in the way to allow a respondent to express a judgment, using a scale of five to seven
points.
The scale consists of seven equal intervals between extremes of a pair of antonyms. E.g. modern, old
fashioned, reliable, unreliable, best, worst and the like. The respondents mark locations on these scales
that describe their compressions.
Thus, there are three dominant factors in semantic differential scale. One, it is an attitude measuring
scale, two, it involves bipolar adjectives and thirdly, the bipolar adjectives have a semantic meaning. The
scale suits best for research on brand-image, customer satisfaction, consumer perception, stores image,
etc. the scale allows researchers to take averages of the responses and plot a brand profile. It is easy to
construct and efficient in analysing attitudes.

The semantic differential scale is frequently used in measuring attitude in marketing research. It
requires the respondents to rate the attitude object on a number of itemized, seven point rating scales
bounded at each end by one of two bipolar adjectives or phrases. These seven points can also be
expressed from one pole as "extremely", "very", "Somewhat", "neither nor" in positive aspect and leads
the same expression towards the other pole in negative aspect.
 8

The following are the three dominant factors considered by the "Osgood and his associates". While
developing a semantic differential scale.
i)Evaluation Factor: This factor is represented by scales like good-bad kind-cruel and honest-dishonest.
ii)Potency Factor: This factor is repress by scales like strong-weak hard-soft and heavy-light.
iii)Activity Factor: This factor is represented by scales like slow-fast, hot-cold and active-passive. The
following several factors must be considered while formulating a suitable semantic differential scale.
Guttman's Scologram Analysis
If a response approach is taken, that is both stimuli and respondents are scaled, it involves cumulative
scales. Guttman believed that attitude phrases could be ranked such that when respondents answer
positively to a phrase, they also answer positively to other phrases of lower ranks. Let us consider an
easy example of taking stairs. If a person can easily climb stairs up to third floor of a building, he/she can
easily climb the stairs up to 2nd floor and I floor as well.
In Guttman's technique, a table of responses of an individual called scologram is formed.

In the above example, four patterns are possible a shown in the table given below. As per the table, a
respondent with a favourable attitude score should have favourable attitude in all Other lower ranking
statements. Accordingly, scores are given to the respondents.
Scologram
1 2 3 Scores
 9

yes yes yes 3

no Yes yes 2
No no Yes 1
No no no 0

Differences between 'Rating' and 'Ranking' Scales

Ranking of products or brands based on particular characteristics is called ranking scales. The questions
are framed on the attributes of products. Ranking question have advantages of being easily tabulated
and is response gives definite set of items.
The product need to be evenly spaced and have well defined questioned to rate i order is called rating
scale. Rating scale designs in a way, to get information on quantitative attribute. The product need to be
evenly spaced and have well defined question to rate in order Ranking scales are more problematic than
rating scale because it involves comparison, and require attention and mental effort. Ranking technique
does not allow respondent to decide on freely bases it rather force them which leads to issues, such as
measurement are real or not. Allocation of rank will some time be difficult as limit is extent. In ranking
scale, comparison of two objects will do well at time but in actual market situation, it effects the
performance rather make it poor.
Example: Measures Technique for Collecting Attitudinal Data on Sales-force performance of People who
Sell Vaccum Cleaner. Marketing studies have adopted three types of forms of attitude scales. The most
widely used methods are,
a) Semantic differential
b)Likert rating scale
c) Stapel scale
a) Semantic differential : In this method the responses are recorded on a scale of adjectives.
Example Selling vaccum cleaner
Vacuum Cleaner
(x) (1): (3): (2): (4): (5): (y)

Able to sell Not able to sell

The five scale positions are intended to,
i) Extremely x
ii) Slightly or quite x
iii) Neither x nor y
iv) Slightly or quite y
v) Extremely y
b)Likert Scale: In this method the scale position range from salesmen 'ability to sell disability to sell' is
taken. It makes statement or adjective for whatever is being evaluated.
Strong General Moderate Moderate General Strongly
Scale scale scale no-scale no-scale no-scale
Sell Vacuum
Cleaner ---- ---- ---- ---- ----
c) Stopel Scale: A modification of semantic differentia! scale, stapel scaie is a unipolar vertical scale with
ten categories that measures attitudes. The respondents are required to describe their accuracy on
numerical response categories ranging from -5 to +5 without a zero point. A single adjective describing is
placed in the middle of the scale.
Introduction
 10

Reliability and validity are concepts used to evaluate the quality of research. They indicate how well a
method, technique or test measures something. Reliability is about the consistency of a measure, and
validity is about the accuracy of a measure.
There are several general characteristics of measurement that should be considered in order to
determine if an evaluation technique is an effective one. Good tests have these characteristics. There
are two important criteria for ascertain whether the scale developed is good or not. These are reliability
and validity.
Reliability
This Refers to the extent to which a scale produces consistent results if repeated measurements are
made on the characteristic. Thus, the scale is free from random error.
Types of Reliability
Reliability refers to whether or not you get the same answer by using an instrument to measure
something more than once. In simple terms, research reliability is the degree to which research method
produces stable and consistent results.
Research reliability can be divided into three categories :
1. Test-retest reliability relates to the measure of reliability that has been obtained by conducting the
same test more than one time over period of time with the participation of the same sample group.
Example: Employees of ABC Company may be asked to complete the same questionnaire about
employee job satisfaction two times with an interval of one week, so that test results can be compared
to assess stability of scores.
2.Parallel forms reliability relates to a measure that is obtained by conducting assessment of the same
phenomena with the participation of the same sample group via more than one assessment method.
Example: The levels of employee satisfaction of ABC Company may be assessed with questionnaires, in-
depth interviews and focus groups and results can be compared.
3.Inter-rater reliability as the name indicates relates to the measure of sets of results obtained by
different assessors using same methods. Benefits and importance of assessing inter-rater reliability can
be explained by referring to subjectivity of assessments. Example: Levels of employee motivation at ABC
Company can be assessed using relates to the extent of difference between the two assessments.
4.Internal consistency reliability is applied to assess the extent of differences within the test items that
explore the same construct produce similar results. It can be observation method by two different
assessors, and inter-rater reliability represented in two main formats.
a) average inter-item correlation is a specific form of internal consistency that is obtained by applying
the same construct on each item of the test
b) split-half reliability as another type of internal consistency reliability involves all items of a test to be
'spitted in half".
Validity
This Refers to the accuracy of measurement. Validity of a scale may be defined as the extent to which
differences in observed scale scores reflect true differences among objects on the characteristic being
measured, rather than systematic or random errors.
Types of Validity
1. Content validity: In content validity, the researcher has to evaluate the operationalization against the
relevant content domain for the construct he developed. In this approach we start with an assumption
that we have a detailed description of the content domain.
2.Predictive Validity: In predictive validity, we assess the operationalization's ability to predict something
it should theoretically be able to predict. Concurrent Validity : In concurrent validity, we assess the
operationalization's ability to distinguish between groups that it should theoretically be able to
distinguish between
 11

4. Construct Validity: Construct validity refers to the degree to which inferences can legitimately be
made from the operationalizations in your study to the theoretical constructs on which those
operationalizations were based. Like external validity, construct validity is related to generalizing.
Construct validity includes convergent, discriminant, and nomological validity.
1. Convergent Validity: Convergent validity examines the extent to which the scale correlates positively
with other measures of the same construct. Thus, one would correlate the data from the scale with
other scales constructed to measure the construct; if positive correlations were found, convergent
validity is established.
2.Discriminant Validity: Discriminant validity indicates the extent to which a measure does not correlate
with other constructs from which it is supposed to differ. It involves demonstrating a lack of correlation
among differing constructs. Thus, the scale would be used to measure other constructs from which it
should theoretically differ; if negative correlations result, discriminant validity is established.
3. Nomological validity: Nomological validity examines the extent to which the construct correlates in
theoretically predicted ways with measures of different but related constructs. A theoretical model is
formulated that leads to further deductions, tests, and inferences. Gradually, a nomological net is built
in which several constructs are systematically interrelated. Thus, the scale would be incorporated into a
nomological network to test its correlations with other constructs; if the resulting correlations appear in
theoretically predicted way, nomological validity is established.
Differences between Reliability and Validity
Validity: In statistics, the term validity implies utility. It is the most important yardstick that signals the
degree to which research instrument gauges, what it is supposed to measure.
Reliability: Reliability is used to mean the extent to which the measurement tool provides consistent
outcomes if the measurement is repeatedly performed. To assess reliability approaches used
are test-retest, internal consistency methods, and alternative forms.
 Unit 5

Data Analysis

Hypothesis:

Hypothesis is an assumption that is made on the basis some evidence. Hypothesis

is to be formulated in the light of aims, objectives, scope and limitations of the
research study. The hypothesis is to be empirically tested and its findings may
either be accepted or rejected.

The word ‘hypothesis’ was derived from Greek word ‘hypotithemi’ which
means ‘to put under’ or ‘to suppose’. The word hypothesis is a combination of
two words ‘Hypo+Thesis’ where ‘Hypo’ means tentative or subject to verification
and ‘Thesis means a statement based on concepts, theories and past experience
about the solution of the problem. Hypothesis means an assumption or
supposition about the state of affairs of a certain thing or facts or variables or
situation.

Definitions:

1. In the words of Goode and Hutt “ A proposition which can be put to a test
to determine its validity”
2. In the words of Wester “ Hypothesis is a tentative assumption made in
order to draw out and its logical or empirical consequences”.
On the basis of the above definitions the hypothesis is an assumption,
proposition, prediction, or tentative statement made and it is to be tested.

Characteristics of Hypothesis:
1. Validity: Hypothesis must be valid and related to the situation which it is
trying to explain.
2. Conceptual clarity: Hypothesis must be clearly and precisely stated.
3. Testability: A hypothesis must be testable and should not be a
judgement.
4. Specificity: A hypothesis should be specific and explain the relationship
between the variables.
 5. Objectivity: Hypothesis should be free from value judgement.
6. Simplicity: A hypothesis must be simple and require few assumptions
7. Availability of technique: Hypothesis should be related to available
techniques.

Types of Hypothesis:
1. Null Hypothesis (Ho) :Null Hypothesis is Ho : X Bar= μ= 100
X Bar= Hypothesis Mean; M=Population mean
Null hypothesis states that there is no difference between the
population mean and hypothetical ( sample) mean. This is a hypothesis
which states that population mean is equal to 100. This is a hypothesis
which states that population mean and hypothesis mean is equal to 100.
If the calculated value of the test is more than the table value reject null
hypothesis.
2. Alternative Hypothesis (H1):
H1: X Bar ≠μ ≠ 100
H1 can be stated as
1. This is a hypothesis where population mean is not equal to 100. It
may be more than or less than 100.
2. This is a hypothesis where population mean is greater than 100
3. This a hypothesis where population mean is less than 100
The rejection of null hypothesis means, acceptance of alternative
hypothesis.

Testing procedure.

1. Formulate Hypothesis: The researcher undertaking the research starts with

defining the research problem. Once the research problem has been
defined clearly the next step is to state Null and alternative hypothesis.
Null hypothesis is a statement of no difference between any two values to
be compared. The alternative hypothesis is one in which there is difference
between any two values to be compared. The alternative hypothesis is
opposite of null hypothesis and rejection of null hypothesis leads to
acceptance of alternative hypothesis or vice versa.
2. Select desired level of significance: The selection of level of significance
should be made before the collection of data. The level of significance
refers to the degree of significance with which researcher accept or reject
the particular hypothesis. Since, 100% accuracy is not possible in making
the decision over the acceptance or rejection of a hypothesis, the
researcher has to make the decision at a particular level of significance,
which would state the probability of making correct or wrong decision by
accepting or rejecting the hypothesis. The level of significance is denoted
by alpha (α) is the probability attached to a null hypothesis help in taking
decision regarding acceptance or rejection of null hypothesis. The level of
significance is also known as the size of rejection region or the size of
critical region. Generally the level of significance which is applied is 1%;
5%;or 10%.
3. Selection of appropriate statistical Test: The next step is to select the
appropriate statistical test. The various tests available are Z-test, t-test, chi-
square test; F-test.
4. Collect Data: Data is collected, edited, tabulated for the purpose of
analysis. Data will be collected either from the primary sources or
secondary sources or from both.
5. Compute the test statistic: Most commonly computed test statistic are Z-
test; chi – square test(X2); t-test and F-test.
6. Choosing critical value: After computing the test statistic, the researcher
should locate the critical value in the table concerned with the selected
probability distribution for a given level of significance for appropriate
number degrees of freedom. The critical value located is the table value.
Critical values of Z at 1% 5% 10%
2.58 1.96 1.645
7. Compare the test statistic with critical value:
8. Making the decision: Finally, the researcher draw statistical conclusion and
makes the decision. If the calculated test value is more than the Table
value then reject null hypothesis and accept alternative hypothesis.
(Calculated Test value is > Table value reject null hypothesis)
Tests of significance for Large Samples:

The variables are classified into Small and Large sample. A sample with more
than 30 variables is known as large sample. In case when sample size is large i.e.,
(n≥30), Z-test can be used for testing the hypothesis. Z-test is a popular test for
testing the significance of mean and proportion. The critical value at a particular
level of significance can be found by referring to Table Z value.

Z-test for Single Mean (ϭ is known)

When values of n, X bar ,μ and ϭ are given in the problem

Formula

Z = X Bar - μ÷ϭ/√n

Where

X Bar = Mean of the sample

μ = Population mean

ϭ = Standard deviation of the population

n = Number of items in the sample.

Steps involved in doing the problem:

1. Write null hypothesis

2. Write alternative hypothesis
3. Write the given data
4. Write the formula and explain the formula
5. Make the calculation and find out test value
6. Compare calculated test value with the critical value and accept/reject Ho
Problem 1

It is claimed that a random sample of 100 tires with a mean life of 15,269km. is
drawn from a population of tires which has a mean life of 15,200km. and a
standard deviation of 1248 km. Test the validity of this claim.

Solution:

Let us proceed on null hypothesis that the sample of 100 tires has come from a
universe with a mean of 15,200km. and standard deviation of 1248 kms. There is
no difference between sample mean and population.

Data given :

X Bar = 15,269 km.; n=100; μ =15,200 ; ϭ = 1248km.

Formula

Z = X Bar - μ÷ϭ/√n

=15,269 – 15,200÷1248/√100

=69÷1248/10

=69÷124.8

=0.55

Since the calculated value of z which is .55 is less than the table value at 5% level
of significance the difference in X bar and μ is insignificant. The null hypothesis is
accepted.

Problem 2

The mean life of 225 CFL bulbs produced by the company is found to be 1270
hours with a standard deviation of 90 hours. Test the hypothesis that it has a
mean life of 1300 hours. [ Z=5; Test value is much more than the critical value
1.96 at 5% level of significance. Hence reject null hypothesis].

Z – test for testing the difference between two means

When X Bar; Ȳ; ϭ21; ϭ22;n1;n2 are given

Ho : X Bar = Y Bar

H1 : X Bar ≠ Y Bar

Formula

Z = X Bar – Y B+ϭar ÷ Square root of ϭ2X

/n1+ϭ2y/n2

Where

X Bar = Mean of first sample

Y bar = Mean of second sample

Ϭ2x = Variance of the first sample

Ϭ2y = Variance of the second sample

N1 = Size of the first sample

N2 = Size of the second sample

Problem:
A random sample of 1000 employees from Chandigarh shows their mean wages
as Rs47 per week with S.D Rs.28. A random sample of 1500 employees from
Bihar gives a mean wage of Rs49 with S.D of Rs40.per week. Is there significant
difference between mean wages of two cities.

Solution

Ho : There is no significant difference between mean wages between 2 cities.

Ho : X Bar = Y Bar

Given Data:

X Bar = 47; Y Bar = 49; ϭx=28; ϭy= 40; n1=1000; n2 =1500

Formula

Z= X BAR – y BAR ÷ Square root of ϭx2/n1+ϭy2/n2

=47 - 49÷square root of (28)2/1000+(40)2/1500

=-2 ÷ Square root of 784/1000+1600/1500

=-2÷Square root of .784+1.067

= -2÷square root of 1.851

=-2÷1.361

=1.47

Decision : The calculated value of Z is 1.47 which is less than the table value 1.96
at 5% level of significance. Hence null hypothesis is accepted which shows that
there is no significant difference between mean wages of two cities.

Problem:

Electric bulb manufactured by X and y company are given below

 X - Company Y - Company
No. of bulbs used 100 100
Mean life in hours 1300 1248
Standard deviation in 82 93
hours

State whether there is significant difference in the mean life of two makes.

[ Test value= 4.19 which is higher than the table value of 1.96 at 5% level of
significance. The null hypothesis is rejected]

Z test for testing of difference of two proportions: hen two samples are drawn
from the different population having similar universes –

Steps:

1. Formulate Null Hypothesis (Ho) : There is no significant difference between

the proportions of two samples. Ho : p1=p2
2. Calculate p1,p2.. p1=size of sample/n; p2= size of sample/n
3. Calculate po,qo
PO = n1p1+n2p2÷n1+n2
Qo = 1 -po
4. Calculate standard error of the proportions
S.E.(p1 –p2) = Square root of poqo{1/n1+1/n2}

5. z = Difference/S.E = p1-p2÷S.E

6. Decision: Accept null hypothesis if the Z value is less than the table value.

Problem:

A machine has produced 20 defective items in a batch of 500 items. After

repairing= the machine, it produced 3 defective items in a batch of 100 items.
Find out whether there is any improvement in the machine after the repair.
Solution:

1. Null Hypothesis: Ho : There is no significant difference in the production of

defective items before and after repair. Alternatively Ho: p1=p2
2. P1=20/500 = 0.04 ; p2= 3/100 =0.03
3. Po = n1p1+n2p2/n1+n2 = 500 ×0.04+100×0.03÷500+100
=20+3÷600
=0.0383
Qo = 1 –po = 1 -0.0383 =0.9617
4. Calculation of standard error between proportions
S.E (p1-p2) = Square root of poqo{1/n1+1/n2}

= Square root of 0.0383×0.9617{1/500+1/100}

=Square root of 0.0368{0.002+0.01}

= Square root of 0.0368{0.012}

= Square root of 0.0004416

=0.021

5. Apply the rule to calculate Z value

Z = p1 – p2 ÷ S.E (p1 – p2)

=0.04 – 0.03 ÷ 0.021
=0.01 ÷ 0.021
=0.4761
6. Since the calculated value of Z is less than the critical value at 5% level of
significance the null hypothesis is accepted. Hence there is no significant
difference in the production of defective items before and after the repair
of machinery.
Test For Small Samples: A small sample refers to size of sample which is less than
30 (<30). T- test is used in case of small samples.

Assumptions of t-test

1. The population from which sample is drawn is normal.

2. Sample have been drawn at random
3. The population standard deviation is not known
4. Sample size should be small i.e., <30

Properties of t-test:

1. It gives a normal bell shaped curve which is symmetrical.

2. The mean of t-distribution is zere.
3. Its value range between plus infinity and minus infinity.

t-test for testing significance of Mean:

When X Bar, m,n,s are given

Steps:

1. Formulate null hypothesis. Ho: There is no significant difference between

sample mean and population mean. In other words Ho: X Bar =μ=100
H1 : X Bar≠μ≠100
2. Apply t-test
t= X Bar - μ÷s×√n
Where
X Bar = Mean of the sample
μ = The actual mean
S = Standard deviation
N =sample size

Problem:
A sample size of 10 drawn from normal population has a mean as 32 and
the variance as 1.44. Is it reasonable to assume that the mean of
population is 30. The level of significance is 5%.
Solution

1. Null Hypothesis Ho: There is no significant difference between sample

mean and population mean
H1: X Bar ≠ μ≠30
2. Given data X Bar = 32; μ=30;n=10 ;variance = 1.44 i.e., s= √variance =
√1.44=1.2
3. Formula
t= X Bar - μ÷s×√n

t= 32 - 30÷1.2×√10
t= 2/1.2×3.16
t= 1.667×3.16
t= 5.27.
4. The critical value or table value is determined based on degrees of
freedom (V) . V= n-1.The table value of t with 9 degrees of freedom at
5% level of significance is 2.262.
Since the t value is more than table value null hypothesis is rejected.
Hence it can be concluded that the there is significant difference
between sample mean and population mean.

Paired t-test ( test the difference between means of two dependent

sample)
Steps
1. Null hypothesis : There is no significant impact of the
training/treatment/advertisement
2. Calculate đ (difference in d )
3. Calculate d2
4. Calculate đ (đ= sigma d/n)
5. Calculate S ( S= €d2 – (đ)2×n÷n-1
6. t= đ√n/S
Problem
Two laboratories carry out independent research regarding fact
content in ice-cream.
Batch 1 2 3 4 5 6 7 8 9 10
Lab A 7 8 7 3 8 6 9 4 7 8
Lab B 9 8 8 4 7 7 9 6 6 6

Is the testing reliable

Solution
1. If the testing is reliable the mean of the difference must 0. Hence
null hypothesis isđ=0
2. Calculation of d, d2,S
Lab A Lab B d d2
(i) (ii) (ii) –(i)
7 9 +2 4
8 8 0 0
7 8 +1 1
3 4 +1 1
8 7 -1 1
6 7 +1 1
9 9 0 0
4 6 +2 4
7 6 -1 1
8 6 -2 4
N=10 £d=+3 £d2=17

đ = £d/n = 3/10 = 0.3

S= Square root of €d2- (đ)2×n/n-1

= Square root of 17 – (0.3)2×10/10-1
= Square root of 17 -0.09×10/9
Square root of 17 – 0.9/9
= Square root of 16.1/9
 =1.337
3. t= đ√n/S
= 0.3√10/1.337
=0.3×3.16/1.337
=0.3×2.36
=0.708

Decision: The critical value of t when V= 9 at 5% level of significance is 2.26. As

the calculated value of t is less than the critical value of t null hypothesis is
rejected.

Problem:

The sales of a company for six weeks were observed as follows:

Weeks 1st 2nd 3rd 4th 5th 6th

Before 10 11 9 12 8 13
advertisement
After 11 12 8 10 17 12
advertisement

State whether the advertisement had any impact on sales at 5% level of

significance. [ t-table value when V is 5 at 5% level of significance is 2.571]

Solution

STEPS:

1. Formulation of hypothesis: Null Hypothesis Ho : There is no impact of

advertisement on sales. Ho=đ=0.
 2. Table showing calculation of d, đ,d2
Before the adv After the adv d d2
(i) (ii) (ii – id\
10 11 +1 1
11 12 +1 1
9 8 -1 1
12 10 -2 4
8 17 +9 81
13 18 +5 25
n=6 - £d=+13 £d2=113

3. Calculation of đ
đ = £đ/n
=13/6
=2.17
4. Calculation of standard deviation
S.D = Square root of £d2 – (đ)2×n÷n-1
=Square root of 113 – (+2.17)2×6÷6-1
=Square root of 113 – (4.7089)×6÷5
= Square root of 113 – 28.2534 ÷5
= Square root of 84.7466÷5
= Square root of 16.949
=4.12
5. t = đ/s ×√n
= 2.17/4.12×√6
= 0.527×2.45
=1.29
Degree of freedom (V) = n-1 = 6-1 =5
The critical value at 5% level of significance is2.57. Since the t value is less
than the table null hypothesis is accepted.
 Chi – Square Test (×2)
The chi-square test is applied to evaluate the significance of difference
between a set of the observed frequencies and a set of corresponding
expected frequencies of a sample drawn without any assumptions.

X2 = £ ( O – E )2÷E
Where
O = Observed Frequencies
E = Expected Frequencies

Features of chi-square test:

1. It is a non-parametric test
2. It is not symmetric
3. The value of Chi-square test is always positive.
4. The shape of Chi-square curve depends upon degrees of freedom.

Steps:

1. Formulate Null hypothesis

2. Compute (O – E)
3. Compute (O – E)2
4. Compute (O – E )2/E

[
5. Find out £ (O – E)2/E ]
Problem:

Three hundred digits were chosen at random from a set of tables. The
frequencies of the digits are as follows.
Digits 0 1 2 3 4 5 6 7 8 9
Freq 28 29 33 31 26 35 32 30 31 25

Using x2 – test assess the hypothesis that the digits were distributed in equal
numbers in the table. The 5% value of x2 for 9 degrees of freedom is 16.92.

Steps:

1. Formulation of null hypothesis: Both observed and expected frequencies

do not show significant difference.
Calculation of x2
Observed fre Expected fre (O – E) (O – E)2 (O – E )2/E
O E
28 30 -2 4 0.1333
29 30 -1 1 0.0333
33 30 +3 9 0.3000
31 30 +1 1 0.0333
26 30 -4 16 0.5333
35 30 +5 25 0.8333
32 30 +2 4 0.1333
30 30 0 0 0.0000
31 30 +1 1 0.0333
25 30 -5 25 0.8333
Total = 300 300 £(O-E)2/E=
2.864

X2= [ (O-E)2/E ]= 2.864

Decision: Since the calculated value of X2 is much less than the X2 table
value at 9 degrees of freedom ( v = n-1 ) at 5% level of significance, the null
hypothesis is exacted.
Problem:
The number of automobile accidents per week in a certain community were
as follows:
12, 8, 20, 2, 14, 10, 15, 6, 9, 4
Are these frequencies in agreement with the belief that accident
conditions were the same during 10 week period.
Solution:
Steps:
Ho: Given frequencies are consistent with the belief that accident
conditions were the same during 10 week period.
Calculation of X2
Observed fre Expected fre (O-E) (O – E )2 (O – E )2/E
12 10 +2 4 0.4
8 10 -2 4 0.4
20 10 +10 100 10.1
2 10 -8 64 6.4
14 10 +4 16 1.6
10 10 0 0 0.0
15 10 +5 25 2.5
6 10 -4 16 1.6
9 10 -1 1 0.1
4 10 -6 36 3.6
Total= 100 100 £(O – E)2/E=
26.6

X2= £(o-E)2/E = 26.6

Decision: Since the calculated value of X2 is more than the table value the
null hypothesis is rejected. X2 table value for 9 degrees of freedom (V=n-1)
at 5% level of significance is 16.92. Since the calculated of X 2 more than the
table value null hypothesis is rejected.
Problem:
A company is concerned about the problem of labour turnover. The
number of employees who left the company during the past 7 months were
as follows.
Days Jan Feb March April May June July
Frequency 16 24 28 32 18 28 22

Test the goodness of fit at 5% level of significance under the hypothesis

that number of employees left the company are uniformly distributed over
months. {x2 = 8.335}

X2 - Test as homogeneity.: It is extension of Chi – test as independence. It

is applied to know whether two more variables are homogenous with
respect to characterstics.
Steps:
1. Formulate hypothesis.
2. Calculate expected frequencies.
Expected Frequency of Cell A = RT×CT/N
Problem:
From the following data of NHP Limited use x2 test and conclude whether
yoga as stress management technique is effective in managing stress.
Economic High Medium Low Total
condition
Rich 160 300 140 600
Poor 140 100 160 400
Total 300 400 300 1000

Solution:
Ho: There is significant difference between yoga and stress management,.
Calculation of expected frequencies:
Expected Frequency of Cell A : RTXCT/N = 600X300/1000 = 180
Expected Frequency of Cell B : RTXCT/N = 400X300/1000 = 120
Expected Frequency of Cell C : RTXCT/N = 600X400/1000 = 240
Expected Frequency of Cell D : RTXCT/N = 400X400/1000 = 160
Expected Frequency of Cell E : RTXCT/N = 600X300/1000 = 180
Expected Frequency of Cell F : RTXCT/N = 400X300/1000 = 120
 Calculation Of X2
Observed fre Expected fre O - E (O –E)2 (O – E)2/E
160 180 +20 400
140 120 -20 400
300 240 -60 3600
100 160 +60 3600
140 180 +40 1600
160 120 -40 1600
168 168