Session – 1

INTRODUCTION TO SUBJECT
SESSION - 2

Definition of business research

• WHY Business research ???
• Nature and scope of business research
• Features/Characteristics of good research
BUSINESS RESEARCH
• Business research is the systematic and objective process of gathering,
recording, and analyzing data for making business decisions.
• Research helps in rational decision making.
• It is the process and tool needed to reduce risk in managerial decision
making.
• It is a systematic inquiry whose objective is to provide information to solve
managerial problems.
• An organized, systematic, data based, critical, objective, scientific inquiry or
investigation into a specific problem, undertaken with the propose of finding
answers or solutions to it.

• Research information is neither intuitive nor haphazardly gathered.

• Literally, research (re-search) means "search again”

• Business research must be objective, meaning that the information found must be
detached and impersonal rather than biased. (Find “facts”, not “opinions”.)

• Business research is the application of the scientific method in searching for the
truth about business phenomena
Broad Objectives of Research
• To obtain familiarity of a phenomenon.
• To determine the association or independence of an activity.
• To determine the characteristics of an individual or a group of activities and the
frequency of their occurrence.
WHY Business research/ Importance of Business research
1. Business competition:
 Customers
 Products
 Industry competition

2. Business environment
3. Explosive growth and influence of internet
4. More complex decisions
5. Lower cost of data collection
6. Better visualization tools
SESSION - 3
Nature and scope of business research
• Marketing
• Finance
• Production
• Human resource
• Non profit organization
 Characteristics of Good Research

Clearly defined purpose

Detailed research process
Thoroughly planned design
High ethical standards
Limitations addressed
Adequate analysis
Unambiguous presentation
Conclusions justified
Credentials
1-8
Features/Characteristics of good research
1. Purpose must be clearly defined

2. Detailed research process (Good research proposal)

3. Thoroughly planned research design

4. High ethical standards (Free from personal bias)

5. Limitations of research must be revealed

6. Adequate analysis according to decision makers need

7. Unambiguous representation of finding

8. Justification of conclusion

9. Generalisability

10. Reproducible
 Session – 4

Types of research - Fundamental,

Descriptive & Exploratory Research
 Fundamental Research
• Pure research, basic research, or fundamental research is research carried out to increase
understanding of fundamental principles. It is not intended to yield immediate commercial
benefits; pure research can be thought of as arising out of curiosity.

• It can be exploratory, descriptive, or explanatory; however, explanatory research is the most

common.

• Pure research generates new ideas, principles and theories, which may not be immediately
utilized; though are the foundations of modern progress and development in different fields.
Today's computers could not exist without the pure research in mathematics conducted over
a century ago, for which there was no known practical application at that time.
• It is curiosity driven.
• It is multi disciplinary.
 Descriptive Research
• Descriptive research does not fit neatly into the definition of either quantitative or
qualitative research methodologies, but instead it can utilize elements of both, often within
the same study. The term descriptive research refers to the type of research question,
design, and data analysis that will be applied to a given topic.

• Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied.

• However, it does not answer questions about eg: how/when/why the characteristics
occurred, which is done under analytic research.

• The description is used for frequencies, averages and other statistical calculations.
 Exploratory Research
• Exploratory research is a type of research conducted for a problem that has not
been clearly defined.

• “Open Up” the problem and look around.

• Give better understanding of a situation.

• Major emphasis is on gaining idea and insights.

• Develops hypothesis.

• Cannot confirm or reject hypothesis.

• The objective of exploratory research is to identify key issues and key variables.

• Exploratory research is most useful when a decision maker wishes to better

understand a situation and/or identify decision alternatives.
 Session – 5

Types of research - Conclusive,

Historical & Ex Post Facto Research
 Conclusive Research

• As the term suggests, conclusive research is meant to provide information that is

useful in reaching conclusions or decision-making. It tends to be quantitative in
nature, that is to say in the form of numbers that can be quantified and
summarized. It relies on both secondary data, particularly existing databases that
are reanalyzed to shed light on a different problem than the original one for which
they were constituted, and primary research , or data specifically gathered for the
current study.

• The purpose of conclusive research is to provide a reliable or representative

picture of the population through the use of a valid research instrument. In the
case of formal research, it will also test hypothesis.
 Historical Research
• Historical research is the type of research that examines past events or combinations of
events to arrive at an account of what has happened in the past.
Historical research is conducted to
• Uncover the unknown,
• Answer questions,
• Identify the relationship that the past has to the present,
• Record and evaluate accomplishments of individuals, agencies, or institutions,
• Aid in understanding the culture in which we live.
Ex Post Facto Research
• It is an empirical enquiry for situations that have already occurred.
• For example, market failure for any company’s product if studied or
researched later can be categorized as ex-post-facto research.
• Ex post facto design is an experimental study examining how an
independent variable, present prior to the study, affects a dependent
variable.
• Ex post facto study or after-the-fact research is a category of research
design in which the investigation starts after the fact has occurred
without interference from the researcher. The majority of social
research, in contexts in which it is not possible or acceptable to
manipulate the characteristics of human participants, is based on ex
post facto research designs.
SESSION – 6
QUALITATVICE V/S QUANTITATIVE RESEARCH
Difference between Qualitative and Quantitative Research
Parameters Qualitative Research Quantitative Research
Purpose To describe on going process Find the cause and effect relation
or association.

Data Data are represented in narrative or Data are presented in numerical

verbal form. and summarized form.

Sample Size Few Large

Approach Subjective Objective

Data collection Questionnaire, Survey Observation, Interview
method
Contribution Develops theory Test theory
Research Question What ?? When, Where, How Much, Why ?
Facts Biased Un biased
Control Independent Variable is controlled No specific independent variable
and manipulated identified.
Conclusion Have pre determined degree of Are tentative and subject to
certainty change during on going
 Session – 7

RESEARCH PROBLEM
Research Problem
• It refers to some difficulty which a researcher experiences in the context of either a
theoretical or practical situation and wants the solution for the same.

Characteristics of research problem:

1. Problem must be researchable. i.e. it can be investigated through collection and
analysis of data.
2. It must have theoretical or practical significance.
3. Researcher must be interested in problem.

Components of research problem:

1. There must be an individual or group which has some difficulty or problem.
2. There must be some objectives which has to be attained.
3. There must be more than one means/alternatives to solve problem.
4. There must be some doubt in mind of researcher regarding selection of
alternative.
5. There must be some environment in which there is difficulty.
 Why define the Research Problem?

• Defining your destination before beginning a

journey.
• It determines,
– what you will do,
– will it withstand scientific scrutiny,
– how you will do it, and
– what you may achieve!
 How is a research problem selected?

• Researchers interest in a topic

• National or agency priorities
• Urgency of an issue
• Availability of research funds
• Availability of supervision
• SELECTING THE PROBLEM
– The research problem undertaken for study must
be carefully selected.
– The task is a difficult one, although it may not
appear to be so.

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• SELECTING THE PROBLEM
– Subject which is overdone should not be
normally chosen, for it will be a difficult task
to throw any new light in such a case.
– Controversial subject should not become
the choice of an average researcher.
– Too narrow or too vague (fuzzy) problems
should be avoided.
– The subject selected for research should be
familiar and feasible so that the related
research material or sources of research are
within one’s reach.

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• SELECTING THE PROBLEM
– Contact an expert or a professor in the
University who is already engaged in
research.
– Read articles published in current literature
available on the subject and may think how
the techniques and ideas discussed there in
might be applied to the solution of other
problems.
– Discuss with others what he has in mind
concerning a problem. In this way he should
make all possible efforts in selecting a
problem. 27/23
• SELECTING THE PROBLEM
– The importance of the subject, the qualifications and the
training of a researcher, the costs involved, the time factor
• Whether he is well equipped in terms of his background to
carry out the research?
• Whether the study falls within the budget he can afford?
• Whether the necessary cooperation can be obtained from
those who must participate in research as subjects?
– The selection of a problem must be preceded by a preliminary
study. This may not be necessary when the problem requires the
conduct of a research closely similar to one that has already
been done.
• But when the field of inquiry is relatively new and does not
have available a set of well developed techniques, a brief
feasibility study must always be undertaken.

28/23
How To Formulate Research Problem

Statement of Problem in General Way

Understanding Nature of Problem

Surveying Available Literature

Developing Ideas Through Discussion

Rephrasing the Research Problem

• TECHNIQUE IN DEFINING A PROBLEM
– statement of the problem in a general way;
– understanding the nature of the problem;
– surveying the available literature
– developing the ideas through discussions; and
– rephrasing the research problem into a working
proposition.

30/23
• (i) Statement of the problem in a general way:
– the problem should be stated in a broad general
way, keeping in view either some practical concern
or some scientific or intellectual interest.
– In case of social research, it is considered
advisable to do some field observation, some sort
of preliminary survey or what is often called pilot
survey.
– Then the researcher can himself state the problem
or he can seek the guidance of the guide or the
subject expert in accomplishing this task.

31/23
• (ii) Understanding the nature of the problem:
– Understand its origin and nature clearly
– to discuss it with those who first raised it in order
to find out how the problem originally came about
and with what objectives in view
– A discussion with those who have a good
knowledge of the problem concerned or similar
other problems.
– The researcher should also keep in view the
environment within which the problem is to be
studied and understood.

32/23
• (iii) Surveying the available literature:
– All available literature concerning the problem must
necessarily be surveyed and examined
• It will be well-conversant with relevant theories in the
field, reports and records
• To find out what data and other materials -- “Knowing
what data are available often serves to narrow the
problem itself as well as the technique that might be
used.”
• If there are certain gaps in the theories, or whether the
existing theories applicable to the problem under study
are inconsistent with each other, or whether the
findings of the different studies do not follow a pattern
consistent with the theoretical expectations and so on.
• for indicating the type of difficulties that may be
encountered in the present study as also the possible
analytical shortcomings.

33/23
• (iv) Developing the ideas through discussions:
– often produces useful information
– Various new ideas can be developed
– Discuss problem with colleagues and others who have
enough experience in the same area or in working on
similar problems --- known as an experience survey.
– People with rich experience are in a position to
enlighten the researcher on different aspects of his
proposed study and their advice and comments are
usually invaluable to the researcher --- sharpen his
focus of attention on specific aspects within the field.

34/23
• (v) Rephrasing the research problem:
– to rephrase the research problem into a
working proposition
– rephrasing the problem into analytical or
operational terms is not a difficult task
– Through rephrasing, the researcher puts the
research problem in as specific terms as
possible so that it may become operationally
viable and may help in the development of
working hypotheses

35/23
• The following points must also be observed
while defining a research problem:
– (a) Technical terms and words or phrases, with
special meanings used in the statement of the
problem, should be clearly defined
– (b) Basic assumptions or postulates (if any)
relating to the research problem should be clearly
stated

36/23
• Defining a research problem:
– (c) A straight forward statement of the value of
the investigation (i.e., the criteria for the selection
of the problem)
– (d) The suitability of the time-period and the
sources of data available
– (e) The scope of the investigation or the limits
within which the research

37/23
• An example :
• Let us suppose that a research problem in a broad general
way is as follows:
– “Why is productivity in Japan so much higher than in
India”?
– It has a number of ambiguities such as
• What sort of productivity is being referred to?
• With what industries the same is related?
• With what period of time the productivity is being
talked about?
• In view of all such ambiguities the given statement or
the question is much too general to be amenable to
analysis.

38/23
• Rethinking and discussions about the problem may
result in narrowing down the question to:
• Example
– “What factors were responsible for the higher
labour productivity of Japan’s manufacturing
industries during the decade 1971 to 1980 relative
to India’s manufacturing industries?”
• Further rethinking and rephrasing might place the
problem on a still better operational basis as shown
below:
– “To what extent did labour productivity in 1971 to
1980 in Japan exceed that of India in respect of 15
selected manufacturing industries?
– What factors were responsible for the productivity
differentials between the two countries by
industries?”
39/23
• Example:
– With this sort of formulation, the various terms involved
such as ‘labour productivity’, ‘productivity differentials’,
etc. must be explained clearly.
– The researcher must also see that the necessary data are
available.
– In case the data for one or more industries selected are
not available for the concerning time-period, then the said
industry or industries will have to be substituted by other
industry or industries.
– The suitability of the time-period must also be examined.
Thus, all relevant factors must be considered by a
researcher before finally defining a research problem

40/23
• http://www.experiment-resources.com/defining-a-
research-problem.html
– Look at any scientific paper, and you will see the
research problem, written almost like a statement
of intent.
– Defining a research problem is crucial in defining
the quality of the answers, and determines the
exact research method used.
– A quantitative experimental design uses deductive
reasoning to arrive at a testable hypothesis.
– Qualitative research designs use inductive
reasoning to propose a research statement.

41/23
• CHECKLIST FOR TESTING THE FEASIBILITY OF THE RESEARCH
PROBLEM

YES NO

1 Is the problem of current interest? Will the research results have social, educational or scientific value?

2 Will it be possible to apply the results in practice?

3 Does the research contribute to the science of education?

4 Will the research opt new problems and lead to further research?

5 Is the research problem important? Will you be proud of the result?

6 Is there enough scope left within the area of reseach (field of research)?

Can you find an answer to the problem through research? Will you be able to handle the research
7
problem?

8 Will it be pratically possible to undertake the research?

9 Will it be possible for another researcher to repeat the research?

10 Is the research free of any ethical problems and limitations?

42/23
11 Will it have any value?

12 Do you have the necessary knowledge and skills to do the research? Are you qualified to undertake the research?

13 Is the problem important to you and are you motivated to undertake the research?

14 Is the research viable in your situation? Do you have enough time and energy to complete the project?

15 Do you have the necessary funds for the research?

16 Will you be able to complete the project within the time available?

17 Do you have access to the administrative, statistic and computer facilities the research necessitates?

TOTAL:

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The Problem Definition and Approach Development
Process
Tasks Involved

Discussions with Interviews with Secondary Data Qualitative

Decision Makers Experts Analysis Research

Environmental Context of the Problem

Step 1: Problem Definition

Management Decision Problem

Marketing Research Problem

Step 2: Approach to the Problem

Analytical Framework Research Specification of

and Models Questions and Hypotheses Information Needed

Step 3: Research Design

 Beware the Iceberg!

• The Iceberg Principle

– The dangerous part of many marketing problems
is neither visible to nor understood by many
marketing managers.
– “Submerged” parts of the problem must be
understood and including in the research design
for the research to be useful.
 Symptoms vs. Problems
• Microbrewery
• Symptom
– Consumers prefer the taste of competitor’s brand
• PD based on the Symptom
– What type of reformulated taste is needed?
• True Problem
– Old-fashioned package influenced taste
perception
 Symptoms vs. Problems
• Manufacturer of palm-size computers with
Internet access
• Symptom
– Distributors complain prices are too high
• PD based on the Symptom
– Investigate business users to learn how much
prices need to be reduced
• True Problem
– Distributors do not have adequate product
knowledge to communicate product’s value
SESSION - 8
Precautions to be taken in Defining Problem

• The word used for defining a problem should

have a single meaning.
• The statement of the problem must be brief but
comprehensive.
• The assumptions are to be recognized for the
study.
• The problem should have practical importance in
the field of education/business.
• The definition of problem should have certain
rationale.
Types of business problems encountered by
Researchers in Marketing:
• Product identification
• Demand estimation
• Demand – supply analysis
• Product development
• Market Segmentation
• Sales promotion programme
• Packaging
• Design for advertisement
• Buying behavior
• Product Launching.
 Types of business problems encountered by
Researchers in Production:

• Plant location
• Plant layout
• Inventory control
• Work design
• Quality control
• Project management
• Forecasting production
• Capacity planning
• Aggregate planning
• Maintenance management
 Types of business problems encountered by
Researchers in Finance:
• Models fro break-even analysis of multi-product
• Economic evaluation of alternatives
• Capital budgeting
• Ratio analysis
• Balance of payment
• Inflation
• Deflation
• Allocation of all time scares resource i.e. “MONEY”
 Types of business problems encountered by
Researchers in Personnel:
• Manpower planning
• Performance appraisal system
• Conflict management
• Study of organizational climate
• Design for incentive plans
• Leadership styles
• Training methods
• Negotiation and wage management
• Change management
• Labor welfare study
 SESSION - 9
Techniques involved in defining problem
 Techniques involved in defining problem

1. Statement of problem in general way

2. Understanding the nature of problem
3. Surveying the available literature
4. Developing ideas through discussion
5. Rephrasing the research problem
 Session – 10

Case To identify Type of Research

and Problem Statement
 SESSION - 11
Research Design- Introduction,
Meaning and Importance
 Research Design: Definition
• A research design is a framework or blueprint
for conducting the marketing research project.
It details the procedures necessary for
obtaining the information needed to structure
or solve marketing research problems.
 Research Design
• Is a plan for selecting the sources and types of
information used to answer the research
question.
• Is a framework for specifying the relationships
among the study’s variables
• Is a blueprint that outlines each procedure
from the hypothesis to the analysis of data.
 Research Design
The research design will provide information for
tasks such as
• Sample selection and size
• Data collection method
• Instrumentation
• Procedures
• Ethical requirements
• Rejected alternative designs
A Classification of Marketing Research Designs

Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Design Sectional Design
 Exploratory & Conclusive Research Differences

Exploratory Conclusive
Objective: To provide insights and To test specific hypotheses and
understanding. examine relationships.

Character- Information needed is defined Information needed is clearly

istics: only loosely. Research process
is flexible and unstructured.
Sample is small and non-
representative. Analysis of
primary data is qualitative.
defined. Research process is
formal and structured. Sample is
large and representative. Data
analysis is quantitative.

Findings Tentative. Conclusive.

/Results:

Outcome: Generally followed by further Findings used as input into

exploratory or conclusive decision making.
research.
 A Comparison of Basic Research Designs

Exploratory Descriptive Causal

Objective: Discovery of ideas Describe market Determine cause
and insights characteristics or and effect
functions relationships

Characteristics: Flexible, versatile Marked by the prior Manipulation of

formulation of one or more
specific hypotheses independent
variables
Often the front Preplanned and
end of total structured design Control of other
research design mediating
variables
Expert surveys Secondary data
Methods: Pilot surveys Surveys Experiments
Secondary data Panels
Qualitative Observation and
research other data
 SESSION - 12
Important Concepts in Research
Design
 Important Concepts
1. Dependent and Independent Variable
2. Extraneous Variable
3. Control
4. Confounded Relationship
5. Hypothesis
6. Experimental and non-experimental
hypothesis research
7. Experimental and Control Group
 Important Concepts (Continue..)
8. Treatment
9. Experiment
10. Experimental Units
 Concepts
• Independent variables are variables or alternatives that are
manipulated and whose effects are measured and compared,
e.g., price levels.
• Test units are individuals, organizations, or other entities
whose response to the independent variables or treatments is
being examined, e.g., consumers or stores.
• Dependent variables are the variables which measure the
effect of the independent variables on the test units, e.g.,
sales, profits, and market shares.
• Extraneous variables are all variables other than the
independent variables that affect the response of the test
units, e.g., store size, store location, and competitive effort.
 SESSION - 13
Exploratory Research Design
 A Classification of Qualitative Research Procedures

Qualitative Research
Procedures

Direct (Non Indirect

disguised) (Disguised)

Projective
Techniques
Focus Groups Depth Interviews

Association Completion Construction Expressive

Techniques Techniques Techniques Techniques
 Characteristics of Focus Groups
Group Size 8-12

Group Composition Homogeneous, respondents,

prescreened

Physical Setting Relaxed, informal atmosphere

Time Duration 1-3 hours

Recording Use of audiocassettes and videotapes

Moderator Observational, interpersonal, and

communication skills of the moderator
 Key Qualifications of Focus Group Moderators

1. Kindness with firmness: The moderator must combine a disciplined

detachment with understanding empathy so as to generate the
necessary interaction.

2. Permissiveness: The moderator must be permissive yet alert to signs

that the group’s cordiality or purpose is disintegrating.

3. Involvement: The moderator must encourage and stimulate intense

personal involvement.

4. Incomplete understanding: The moderator must encourage

respondents to be more specific about generalized comments by
exhibiting incomplete understanding.
 Key Qualifications of Focus Group Moderators

5. Encouragement: The moderator must encourage unresponsive

members to participate.

6. Flexibility: The moderator must be able to improvise and alter the

planned outline amid the distractions of the group process.

7. Sensitivity: The moderator must be sensitive enough to guide the

group discussion at an intellectual as well as emotional level.
 Advantages of Focus Groups
1. Synergism
2. Snowballing
3. Stimulation
4. Security
5. Spontaneity
6. Serendipity
7. Specialization
8. Scientific scrutiny
9. Structure
10. Speed
 Disadvantages of Focus Groups
1. Misuse
2. Misjudge
3. Moderation
4. Messy
5. Misrepresentation
 SESSION - 14
Descriptive Research Design
 SURVEY METHODS
• It involves a structured questionnaire given to respondents and designed to elicit specific
information.
• It is based on obtaining information by questioning the respondents.
• Questions may be asked verbally, in writing, or via computer.
• It is a structured form of data collection as questions are asked in prearranged order.
• Fixed alternative questions………
• Advantages……..????
• Disadvantages………….???
 A Classification of Survey Methods By Mode Of
Administration

Survey
Methods

Telephone Personal Mail Electronic

In-Home Mall Computer-Assisted Internet

E-mail
Intercept Personal
Interviewing

Traditional Computer-Assisted
Mail Mail
Telephone Telephone
Interview Panel
Interviewing
 Criteria for Evaluating Survey Methods

Flexibility of Data Collection

• The flexibility of data collection is determined primarily by the extent to
which the respondent can interact with the interviewer and the survey
questionnaire.

Diversity of Questions
• The diversity of questions that can be asked in a survey depends upon the
degree of interaction the respondent has with the interviewer and the
questionnaire, as well as the ability to actually see the questions.

Use of Physical Stimuli

• The ability to use physical stimuli such as the product, a product
prototype, commercials, or promotional displays during the interview.
 Criteria for Evaluating Survey Methods

Sample Control
• Sample control is the ability of the survey mode to reach the units
specified in the sample effectively and efficiently.

Control of the Data Collection Environment

• The degree of control a researcher has over the environment in which the
respondent answers the questionnaire.

Control of Field Force

• The ability to control the interviewers and supervisors involved in data
collection.

Quantity of Data
• The ability to collect large amounts of data.
 Criteria for Evaluating Survey Methods

Response Rate
• Survey response rate is broadly defined as the percentage of the total
attempted interviews that are completed.

Perceived Anonymity
• Perceived anonymity refers to the respondents' perceptions that their
identities will not be discerned by the interviewer or the researcher.

Social Desirability/Sensitive Information

• Social desirability is the tendency of the respondents to give answers that
are socially acceptable, whether or not they are true.
 Criteria for Evaluating Survey Methods

Potential for Interviewer Bias

• The extent of the interviewer's role determines the potential
for bias.

Speed
• The total time taken for administering the survey to the entire
sample.

Cost
• The total cost of administering the survey and collecting the
data.
 Observation Methods
Structured versus Unstructured Observation

• For structured observation, the researcher specifies

in detail what is to be observed and how the
measurements are to be recorded, e.g., an auditor
performing inventory analysis in a store.

• In unstructured observation, the observer monitors

all aspects of the phenomenon that seem relevant to
the problem at hand, e.g., observing children playing
with new toys.
 Observation Methods
Disguised versus Undisguised Observation

• In disguised observation, the respondents are

unaware that they are being observed. Disguise may
be accomplished by using one-way mirrors, hidden
cameras, or inconspicuous mechanical devices.
Observers may be disguised as shoppers or sales
clerks.

• In undisguised observation, the respondents are

aware that they are under observation.
 Observation Methods
Natural versus Contrived Observation

• Natural observation involves observing behavior as it

takes places in the environment. For example, one
could observe the behavior of respondents eating
fast food in Burger King.

• In contrived observation, respondents' behavior is

observed in an artificial environment, such as a test
kitchen.
 Observation Methods
Personal Observation

• A researcher observes actual behavior as it

occurs.
• The observer does not attempt to manipulate
the phenomenon being observed but merely
records what takes place.
• For example, a researcher might record traffic
counts and observe traffic flows in a
department store.
 Observation Methods
Mechanical Observation

Do not require respondents' direct participation.

– the AC Nielsen audimeter

– turnstiles that record the number of people entering or

leaving a building.
– On-site cameras (still, motion picture, or video)

– Optical scanners in supermarkets

Do require respondent involvement.

– eye-tracking monitors

– pupilometers
– psychogalvanometers

– voice pitch analyzers

– devices measuring response latency
 Observation Methods
Audit

• The researcher collects data by examining physical

records or performing inventory analysis.
• Data are collected personally by the researcher.
• The data are based upon counts, usually of physical
objects.
• Retail and wholesale audits conducted by marketing
research suppliers were discussed in the context of
syndicated data in Chapter 4
 Observation Methods
Content Analysis

• The objective, systematic, and quantitative

description of the manifest content of a
communication.
• The unit of analysis may be words, characters
(individuals or objects), themes (propositions), space
and time measures (length or duration of the
message), or topics (subject of the message).
• Analytical categories for classifying the units are
developed and the communication is broken down
according to prescribed rules.
 Observation Methods
Trace Analysis
Data collection is based on physical traces, or evidence, of past
behavior.

• The selective erosion of tiles in a museum indexed by the replacement

rate was used to determine the relative popularity of exhibits.
• The number of different fingerprints on a page was used to gauge the
readership of various advertisements in a magazine.
• The position of the radio dials in cars brought in for service was used to
estimate share of listening audience of various radio stations.
• The age and condition of cars in a parking lot were used to assess the
affluence of customers.
• The magazines people donated to charity were used to determine
people's favorite magazines.
• Internet visitors leave traces which can be analyzed to examine browsing
and usage behavior by using cookies.
Relative Advantages of Observation
• They permit measurement of actual behavior rather
than reports of intended or preferred behavior.
• There is no reporting bias, and potential bias caused
by the interviewer and the interviewing process is
eliminated or reduced.
• Certain types of data can be collected only by
observation.
• If the observed phenomenon occurs frequently or is
of short duration, observational methods may be
cheaper and faster than survey methods.
 Relative Disadvantages of Observation

• The reasons for the observed behavior may not be

determined since little is known about the underlying
motives, beliefs, attitudes, and preferences.
• Selective perception (bias in the researcher's perception) can
bias the data.
• Observational data are often time-consuming and expensive,
and it is difficult to observe certain forms of behavior.
• In some cases, the use of observational methods may be
unethical, as in observing people without their knowledge or
consent.

It is best to view observation as a complement to survey

methods, rather than as being in competition with them.
 SESSION – 15, 16, 17, & 18
Experimental/Causal Research Design
Type of Experimental Research Design
 Concept of Causality
A statement such as "X causes Y " will have the
following meaning to an ordinary person and to a
scientist.

____________________________________________________
Ordinary Meaning Scientific Meaning
____________________________________________________
X is the only cause of Y. X is only one of a number of
possible causes of Y.

X must always lead to Y The occurrence of X makes the

(X is a deterministic occurrence of Y more probable
cause of Y). (X is a probabilistic cause of Y).

It is possible to prove We can never prove that X is a

that X is a cause of Y. cause of Y. At best, we can
infer that X is a cause of Y.
 Conditions for Causality
• Concomitant variation is the extent to which a
cause, X, and an effect, Y, occur together or vary
together in the way predicted by the hypothesis
under consideration.
• The time order of occurrence condition states that
the causing event must occur either before or
simultaneously with the effect; it cannot occur
afterwards.
• The absence of other possible causal factors means
that the factor or variable being investigated should
be the only possible causal explanation.
 Experimental Design
An experimental design is a set of procedures
specifying

– the test units and how these units are to be

divided into homogeneous subsamples,
– what independent variables or treatments are to
be manipulated,
– what dependent variables are to be measured,
and
– how the extraneous variables are to be controlled.
 A Classification of Experimental Designs

• Pre-experimental designs do not employ

randomization procedures to control for extraneous
factors: the one-shot case study, the one-group
pretest-posttest design, and the static-group.
• In true experimental designs, the researcher can
randomly assign test units to experimental groups
and treatments to experimental groups: the pretest-
posttest control group design, the posttest-only
control group design, and the Solomon four-group
design.
 A Classification of Experimental Designs

• Quasi-experimental designs result when the

researcher is unable to achieve full manipulation of
scheduling or allocation of treatments to test units
but can still apply part of the apparatus of true
experimentation: time series and multiple time
series designs.
• A statistical design is a series of basic experiments
that allows for statistical control and analysis of
external variables: randomized block design, Latin
square design, and factorial designs.
 A Classification of Experimental Designs
Figure 7.1

Experimental Designs

Pre-experimental True Quasi Statistical

Experimental Experimental

One-Shot Case Pretest-Posttest Time Series Randomized

Study Control Group Blocks

One Group Posttest: Only Multiple Time Latin Square

Pretest-Posttest Control Group Series

Static Group Solomon Four- Factorial

Group Design
 One-Shot Case Study
X 01

• A single group of test units is exposed to a treatment

X.
• A single measurement on the dependent variable is
taken (01).
• There is no random assignment of test units.
• The one-shot case study is more appropriate for
exploratory than for conclusive research.
One-Group Pretest-Posttest Design
01 X 02

• A group of test units is measured twice.

• There is no control group.
• The treatment effect is computed as
02 – 01.
• The validity of this conclusion is questionable
since extraneous variables are largely
uncontrolled.
 Static Group Design
EG: X 01
CG: 02

• A two-group experimental design.

• The experimental group (EG) is exposed to the
treatment, and the control group (CG) is not.
• Measurements on both groups are made only after
the treatment.
• Test units are not assigned at random.
• The treatment effect would be measured as 01 - 02.
 True Experimental Designs:
Pretest-Posttest Control Group Design
EG: R 01 X 02
CG: R 03 04

• Test units are randomly assigned to either the experimental or the control
group.
• A pretreatment measure is taken on each group.
• The treatment effect (TE) is measured as:(02 - 01) - (04 - 03).
• Selection bias is eliminated by randomization.
• The other extraneous effects are controlled as follows:
02 – 01= TE + H + MA + MT + IT + I + SR + MO
04 – 03= H + MA + MT + I + SR + MO
= EV (Extraneous Variables)
• The experimental result is obtained by:
(02 - 01) - (04 - 03) = TE + IT
• Interactive testing effect is not controlled.
 Posttest-Only Control Group
Design
EG : R X 01
CG : R 02

• The treatment effect is obtained by

TE = 01 - 02
• Except for pre-measurement, the
implementation of this design is very similar
to that of the pretest-posttest control group
design.
 Quasi-Experimental Designs:
Time Series Design

01 02 03 04 05 X 06 07 08 09 010

• There is no randomization of test units to

treatments.
• The timing of treatment presentation, as well
as which test units are exposed to the
treatment, may not be within the researcher's
control.
 Multiple Time Series Design
EG : 01 02 03 04 05 X 06 07 08 09 010
CG : 01 02 03 04 05 06 07 08 09 010

• If the control group is carefully selected, this

design can be an improvement over the
simple time series experiment.
• Can test the treatment effect twice: against
the pretreatment measurements in the
experimental group and against the control
group.
 Statistical Designs
Statistical designs consist of a series of basic experiments that
allow for statistical control and analysis of external variables and
offer the following advantages:

– The effects of more than one independent variable can be

measured.
– Specific extraneous variables can be statistically controlled.
– Economical designs can be formulated when each test unit is
measured more than once.

The most common statistical designs are the randomized block

design, the Latin square design, and the factorial design.
 Randomized Block Design
• Is useful when there is only one major
external variable, such as store size, that
might influence the dependent variable.
• The test units are blocked, or grouped, on the
basis of the external variable.
• By blocking, the researcher ensures that the
various experimental and control groups are
matched closely on the external variable.
 Randomized Block Design
Table 7.4

Treatment Groups
Block Store Commercial Commercial Commercial
Number Patronage A B C

1 Heavy A B C
2 Medium A B C
3 Low A B C
4 None A B C
 Latin Square Design
• Allows the researcher to statistically control two noninteracting external
variables as well as to manipulate the independent variable.
• Each external or blocking variable is divided into an equal number of
blocks, or levels.
• The independent variable is also divided into the same number of levels.
• A Latin square is conceptualized as a table (see Table 7.5), with the rows
and columns representing the blocks in the two external variables.
• The levels of the independent variable are assigned to the cells in the
table.
• The assignment rule is that each level of the independent variable should
appear only once in each row and each column, as shown in Table 7.5.
 Latin Square Design
Table 7.5

Interest in the Store

Store Patronage High Medium Low

Heavy B A C
Medium C B A
Low and none A C B
 Limitations of Experimentation
• Experiments can be time consuming, particularly if
the researcher is interested in measuring the long-
term effects.
• Experiments are often expensive. The requirements
of experimental group, control group, and multiple
measurements significantly add to the cost of
research.
• Experiments can be difficult to administer. It may be
impossible to control for the effects of the
extraneous variables, particularly in a field
environment.
• Competitors may deliberately contaminate the
results of a field experiment.
 SESSION – 19
Case To identify Type of Research
Design and its suitability for objectives
 SESSION – 20
PRIMARY V/S SECONDARY DATA
 Primary vs. Secondary Data
• Primary data are originated by a researcher for the
specific purpose of addressing the problem at hand.
The collection of primary data involves all six steps of
the research process.
• Secondary data are data which have already been
collected for purposes other than the problem at
hand. These data can be located quickly and
inexpensively.
 A Comparison of Primary & Secondary Data
Table 4.1

Primary Data Secondary Data

Collection purpose For the problem at hand For other problems

Collection process Very involved Rapid & easy
Collection cost High Relatively low
Collection time Long Short
 Uses of Secondary Data
• Identify the problem
• Better define the problem
• Develop an approach to the problem
• Formulate an appropriate research design (for
example, by identifying the key variables)
• Answer certain research questions and test
some hypotheses
• Interpret primary data more insightfully
 Criteria for Evaluating Secondary Data

• Specifications: Methodology Used to Collect the

Data
• Error: Accuracy of the Data
• Currency: When the Data Were Collected
• Objective(s): The Purpose for Which the Data Were
Collected
• Nature: The Content of the Data
• Dependability: Overall, How Dependable Are the
Data
 Criteria for Evaluating Secondary Data
Table 4.2
Criteria Issues
Specifications & Data collection method, response rate,
Methodology quality & analysis of data, sampling
technique & size, questionnaire
design, fieldwork.
Error & Examine errors in approach,
Accuracy research design, sampling, data
collection & analysis, & reporting.
Currency Time lag between collection &
publication, frequency of updates.
Objective Why were the data collected?
Nature Definition of key variables, units of
measurement, categories used,
relationships examined.
Dependability Expertise, credibility, reputation, &
trustworthiness of the source.
Remarks
Data should be reliable,
valid, & generalizable to the
problem.
Assess accuracy by
comparing data from
different sources.
Census data are updated by
syndicated firms.
The objective determines
the relevance of data.
Reconfigure the data to
increase their usefulness.
Data should be obtained
from an original source.
 A Classification
Fig. 4.1
of Secondary Data

Secondary Data

Internal External

Ready to Requires Published Computerized Syndicated

Use Further Materials Databases Services
Processing
 Internal Secondary Data
Department Store Project
Sales were analyzed to obtain:
• Sales by product line
• Sales by major department (e.g., men's wear, house wares)
• Sales by specific stores
• Sales by geographical region
• Sales by cash versus credit purchases
• Sales in specific time periods
• Sales by size of purchase
• Sales trends in many of these classifications were also
examined.
 A Classification of Published Secondary Sources

Published Secondary
Data

General Business Government

Sources Sources

Guides Directories Indexes Statistical Census Other

Data Data Government
Publications
 A Classification of Computerized Databases

Computerized
Databases

Online Internet Off-Line

Bibliographic Numeric Full-Text Directory Special-

Databases Databases Databases Databases Purpose
Databases
 Published External Secondary Sources
Guides
• An excellent source of standard or recurring information
• Helpful in identifying other important sources of directories, trade
associations, and trade publications
• One of the first sources a researcher should consult

Directories
• Helpful for identifying individuals or organizations that collect specific data
• Examples: Consultants and Consulting Organizations Directory,
Encyclopedia of Associations, FINDEX: The Directory of Market Research
Reports, Studies and Surveys, and Research Services Directory

Indices
• Helpful in locating information on a particular topic in several different
publications
 Classification of Computerized Databases

• Bibliographic databases are composed of citations to

articles.
• Numeric databases contain numerical and statistical
information.
• Full-text databases contain the complete text of the
source documents comprising the database.
• Directory databases provide information on
individuals, organizations, and services.
• Special-purpose databases provide specialized
information.
 Syndicated Services
• Companies that collect and sell common pools of
data of known commercial value designed to serve a
number of clients.
• Syndicated sources can be classified based on the
unit of measurement (households/consumers or
institutions).
• Household/consumer data may be obtained from
surveys, diary panels, or electronic scanner services.
• Institutional data may be obtained from retailers,
wholesalers, or industrial firms.
 SESSION – 21
Methods of Data Collection - Interview
Method, Questionnaire & Schedules
 Personal Interview
• Personal interview method requires a person known as the
interviewer asking questions generally in a face-to-face
contact to the other person or persons.
• (At times the interviewee may also ask certain questions
and the interviewer responds to these, but usually the
interviewer initiates the interview and collects the
information.)
• This sort of interview may be in the form of direct personal
investigation or it may be indirect oral investigation.
 Personal Interview- Advantages
• More information and that too in greater depth can be obtained.
• Interviewer by his own skill can overcome the resistance, if any, of the
respondents; the interview method can be made to yield an almost
perfect sample of the general population.
• There is greater flexibility under this method as the opportunity to
restructure questions is always there, specially in case of unstructured
interviews.
• Observation method can as well be applied to recording verbal answers to
various questions.
• Personal information can as well be obtained easily under this method.
• Samples can be controlled more effectively as there arises no difficulty of
the missing returns; non-response generally remains very low.
• The interviewer can usually control which person(s) will answer the
questions. This is not possible in mailed questionnaire approach. If so
desired, group discussions may also be held.
Personal Interview- Dis Advantages
• It is a very expensive method, specially when large and widely spread
geographical sample is taken.
• There remains the possibility of the bias of interviewer as well as that of
the respondent; there also remains the headache of supervision and
control of interviewers.
• Certain types of respondents such as important officials or executives or
people in high income groups may not be easily approachable under this
method and to that extent the data may prove inadequate.
• This method is relatively more-time-consuming, specially when the
sample is large and recalls upon the respondents are necessary.
• The presence of the interviewer on the spot may over-stimulate the
respondent, sometimes even to the extent that he may give imaginary
information just to make the interview interesting.
• Under the interview method the organisation required for selecting,
training and supervising the field-staff is more complex with formidable
problems.
 Questionnaires
• This method of data collection is quite popular, particularly in
case of big enquiries. It is being adopted by private
individuals, research workers, private and public organisations
and even by governments.
• In this method a questionnaire is sent (usually by post) to the
persons concerned with a request to answer the questions
and return the questionnaire. A questionnaire consists of a
number of questions printed or typed in a definite order on a
form or set of forms.
• The questionnaire is mailed to respondents who are expected
to read and understand the questions and write down the
reply in the space meant
• for the purpose in the questionnaire itself. The respondents
have to answer the questions on their own.
 Questionnaires - Advantages
• There is low cost even when the universe is large and is widely
spread geographically.
• It is free from the bias of the interviewer; answers are in
respondents’ own words.
• Respondents have adequate time to give well thought out
answers.
• Respondents, who are not easily approachable, can also be
reached conveniently.
• Large samples can be made use of and thus the results can be
made more dependable and reliable.
Questionnaires – Dis - Advantages
• Low rate of return of the duly filled in questionnaires; bias
due to no-response is often indeterminate.
• It c an be used only when respondents are educated and
cooperating.
• The control over questionnaire may be lost once it is sent.
• There is inbuilt inflexibility because of the difficulty of
amending the approach once questionnaires have been
dispatched.
• There is also the possibility of ambiguous replies or omission
of replies altogether to certain questions; interpretation of
omissions is difficult.
• It is difficult to know whether willing respondents are truly
representative.
• This method is likely to be the slowest of all.
 Schedules
• This method of data collection is very much like the collection
of data through questionnaire, with little difference which lies
in the fact that schedules (proforma containing a set of
questions) are being filled in by the enumerators who are
specially appointed for the purpose.
• These enumerators along with schedules, go to respondents,
put to them the questions from the proforma in the order the
questions are listed and record the replies in the space meant
for the same in the proforma.
• In certain situations, schedules may be handed over to
respondents and enumerators may help them in recording
their answers to various questions in the said schedules.
• Enumerators explain the aims and objects of the investigation
and also remove the difficulties which any respondent may
feel in understanding the implications of a particular question
or the definition or concept of difficult terms.
 SESSION – 22
Measurement –
Common Measurement Scales Used in
Research
(Exercise)
 LEVELS OF DATA
• Nominal Level of data
• Ordinal Level of data
• Interval Level of data
• Ratio Level of data
 Nominal Level Data
• Nominal items may have numbers assigned to them. This may appear ordinal but
is not -- these are used to simplify capture and referencing.
• Nominal items are usually categorical, in that they belong to a definable
category, such as 'employees'.
• Nominal data are discrete (that is, mutually exclusive) and are classed according
to type or quality.
• The essential point about nominal scales is that they do not imply any ordering
among the responses. For example, when classifying people according to their
favorite color, there is no sense in which green is placed "ahead of" blue.
Responses are merely categorized. Nominal scales embody the lowest level of
measurement.
 Ordinal Level Data
• Items on an ordinal scale are set into some kind of order by their position on the
scale. This may indicate such as temporal position, superiority, etc.
• The order of items is often defined by assigning numbers to them to show their
relative position. Letters or other sequential symbols may also be used as
appropriate.
• Ordinal items are usually categorical, in that they belong to a definable category,
such as '1956 marathon runners'.
• You cannot do arithmetic with ordinal numbers -- they show sequence only.

• Ordinal data provide information about rank or hierarchy, in other words, relative
values. Therefore, it is possible to describe one item as larger or smaller than
another, or as low, medium, or high. However, it is not possible to measure the
differences between ordinal data, because there are no specific numerical
values attached to them. An example of ordinal data is roads ranked as expressway,
main thoroughfare, and secondary road.

Example
• The first, third and fifth person in a race.
• Pay bands in an organization, as denoted by A, B, C and D.
 Interval Level Data
• Interval
• Interval data (also sometimes called integer) is measured along a scale in which
each position is equidistant from one another. This allows for the distance between
two pairs to be equivalent in some way.
• This is often used in psychological experiments that measure attributes along an
arbitrary scale between two extremes.
• Interval data cannot be multiplied or divided.
Example
• My level of happiness, rated from 1 to 10.
• Temperature, in degrees Fahrenheit.
 Ratio Level Data
• In a ratio scale, numbers can be compared as multiples of one another. Thus one
person can be twice as tall as another person. Important also, the number zero has
meaning.
• Thus the difference between a person of 35 and a person 38 is the same as the
difference between people who are 12 and 15. A person can also have an age of
zero.
• Ratio data can be multiplied and divided because not only is the difference
between 1 and 2 the same as between 3 and 4, but also that 4 is twice as much as
2.
• Interval and ratio data measure quantities and hence are quantitative. Because
they can be measured on a scale, they are also called scale data.
Example
• A person's weight
• The number of pizzas I can eat before fainting
 Primary Scales of Measurement
Scale Basic Common Marketing Permissible Statistics
Characteristics Examples Examples Descriptive Inferential
Nominal Numbers identify Social Security Brand nos., store Percentages, Chi-square,
& classify objects nos., numbering types mode binomial test
of football players
Ordinal Nos. indicate the Quality rankings, Preference Percentile, Rank-order
relative positions rankings of teams rankings, market median correlation,
of objects but not in a tournament position, social Friedman
the magnitude of class ANOVA
differences
between them
Interval Differences Temperature Attitudes, Range, mean, Product-
between objects (Fahrenheit) opinions, index standard moment
Ratio Zero point is fixed, Length, weight Age, sales, Geometric Coefficient of
ratios of scale income, costs mean, harmonic variation
values can be mean
compared
 Excercise:
• Identify the following as nominal level, ordinal level, interval level, or ratio level data.

1) Percentage scores on a Math exam.

2) Letter grades on an English essay.

3) Flavors of yogurt.

4) Instructors classified as : Easy, Difficult or Impossible.

5) Employee evaluations classified as : Excellent, Average, Poor.

6) Religions.

7) Political parties.

8) Commuting times to school.

9) Years (AD) of important historical events.

10) Ages (in years) of statistics students.

11) Ice cream flavor preference.

12) Amount of money in savings accounts.

13) Students classified by their reading ability : Above average, Below average, Normal.
 SESSION – 23
Scales
Commonly used scales and factors
affecting selection of scales for
research
(Exercise)
 Measurement and Scaling
Scaling involves creating a continuum upon which measured
objects are located.

Consider an attitude scale from 1 to 100. Each respondent is

assigned a number from 1 to 100, with 1 = Extremely
Unfavorable, and 100 = Extremely Favorable. Measurement is
the actual assignment of a number from 1 to 100 to each
respondent. Scaling is the process of placing the respondents
on a continuum with respect to their attitude toward
department stores.
 A Classification of Scaling
Techniques
Scaling Techniques

Comparative Noncomparative
Scales Scales

Paired Rank Constant Q-Sort and Continuous Itemized

Comparison Order Sum Other Rating Scales Rating
Procedures Scales

Semantic Stapel
Likert
Differential
 A Comparison of Scaling
Techniques
• Comparative scales involve the direct comparison of stimulus
objects. Comparative scale data must be interpreted in
relative terms and have only ordinal or rank order properties.

• In noncomparative scales, each object is scaled

independently of the others in the stimulus set. The resulting
data are generally assumed to be interval or ratio scaled.
 Relative Advantages of Comparative Scales

• Small differences between stimulus objects can be detected.

• Same known reference points for all respondents.
• Easily understood and can be applied.
• Involve fewer theoretical assumptions.
• Tend to reduce halo or carryover effects from one judgment
to another.
 Relative Disadvantages of Comparative Scales

• Ordinal nature of the data

• Inability to generalize beyond the stimulus objects scaled.
 Comparative Scaling Techniques
Paired Comparison Scaling

• A respondent is presented with two objects and asked to

select one according to some criterion.
• The data obtained are ordinal in nature.
• Paired comparison scaling is the most widely used
comparative scaling technique.
• With n brands, [n(n - 1) /2] paired comparisons are required
• Under the assumption of transitivity, it is possible to convert
paired comparison data to a rank order.
 Obtaining Shampoo Preferences
Figure 8.3 Using Paired Comparisons
Instructions: We are going to present you with ten pairs of
shampoo brands. For each pair, please indicate which one of the
two brands of shampoo you would prefer for personal use.
Recording Form: Jhirmack Finesse Vidal Head & Pert
Sassoon Shoulders
Jhirmack 0 0 1 0
Finesse 1a 0 1 0
Vidal Sassoon 1 1 1 1
Head & Shoulders 0 0 0 0
Pert 1 1 0 1
Number of Times 3 2 0 4 1
Preferredb
aA 1 in a particular box means that the brand in that column was preferred over
the brand in the corresponding row. A 0 means that the row brand was
preferred over the column brand. bThe number of times a brand was preferred
is obtained by summing the 1s in each column.
 Paired Comparison Selling
The most common method of taste testing is paired comparison. The
consumer is asked to sample two different products and select the one
with the most appealing taste. The test is done in private and a minimum
of 1,000 responses is considered an adequate sample. A blind taste test
for a soft drink, where imagery, self-perception and brand reputation are
very important factors in the consumer’s purchasing decision, may not
be a good indicator of performance in the marketplace. The introduction
of New Coke illustrates this point. New Coke was heavily favored in
blind paired comparison taste tests, but its introduction was less than
successful, because image plays a major role in the purchase of Coke.

A paired comparison taste

test
 Comparative Scaling Techniques
Rank Order Scaling

• Respondents are presented with several objects

simultaneously and asked to order or rank them according to
some criterion.
• It is possible that the respondent may dislike the brand ranked
1 in an absolute sense.
• Furthermore, rank order scaling also results in ordinal data.
• Only (n - 1) scaling decisions need be made in rank order
scaling.
 Preference for Toothpaste Brands
Using Rank Order Scaling

Instructions: Rank the various brands of toothpaste in order of

preference. Begin by picking out the one brand that you like
most and assign it a number 1. Then find the second most
preferred brand and assign it a number 2. Continue this
procedure until you have ranked all the brands of toothpaste in
order of preference. The least preferred brand should be
assigned a rank of 10.
No two brands should receive the same rank number.
The criterion of preference is entirely up to you. There is no
right or wrong answer. Just try to be consistent.
 Preference for Toothpaste Brands
Using Rank Order Scaling
Form
Brand Rank Order
1. Crest _________
2. Colgate _________
3. Aim _________
4. Gleem _________
5. Macleans _________

6. Ultra Brite _________

7. Close Up _________
8. Pepsodent _________
9. Plus White _________
10. Stripe _________
 Comparative Scaling Techniques
Constant Sum Scaling

• Respondents allocate a constant sum of units, such as 100

points to attributes of a product to reflect their importance.
• If an attribute is unimportant, the respondent assigns it zero
points.
• If an attribute is twice as important as some other attribute, it
receives twice as many points.
• The sum of all the points is 100. Hence, the name of the
scale.
 Importance of Bathing Soap Attributes
Using a Constant Sum Scale

Instructions
On the next slide, there are eight attributes of
bathing soaps. Please allocate 100 points among
the attributes so that your allocation reflects the
relative importance you attach to each attribute.
The more points an attribute receives, the more
important the attribute is. If an attribute is not at all
important, assign it zero points. If an attribute is
twice as important as some other attribute, it
should receive twice as many points.
 Importance of Bathing Soap Attributes
Using a Constant Sum Scale
Form
Average Responses of Three Segments
Attribute Segment I Segment II Segment III
1. Mildness 8 2 4
2. Lather 2 4 17
3. Shrinkage 3 9 7
4. Price 53 17 9
5. Fragrance 9 0 19
6. Packaging 7 5 9
7. Moisturizing 5 3 20
8. Cleaning Power 13 60 15
Sum 100 100 100
 SESSION – 24
Data Preparation
Validation & Editing Techniques,
Coding - Meaning,
Coding Procedures-
Precoding, Post Coding, &
Principles for Coding (Exercise)
Data Preparation Process
Prepare Preliminary Plan of Data Analysis

Check Questionnaire

Edit

Code

Transcribe

Clean Data

Statistically Adjust the Data

Select Data Analysis Strategy

 Questionnaire Checking
A questionnaire returned from the field may be unacceptable
for several reasons.
– Parts of the questionnaire may be incomplete.
– The pattern of responses may indicate that the respondent
did not understand or follow the instructions.
– The responses show little variance.
– One or more pages are missing.
– The questionnaire is received after the preestablished
cutoff date.
– The questionnaire is answered by someone who does not
qualify for participation.
 Editing
Treatment of Unsatisfactory Results
– Returning to the Field – The questionnaires with
unsatisfactory responses may be returned to the field,
where the interviewers recontact the respondents.
– Assigning Missing Values – If returning the questionnaires
to the field is not feasible, the editor may assign missing
values to unsatisfactory responses.
– Discarding Unsatisfactory Respondents – In this
approach, the respondents with unsatisfactory responses
are simply discarded.
 Coding
Coding means assigning a code, usually a number, to each possible
response to each question. The code includes an indication of the
column position (field) and data record it will occupy.

Coding Questions

• Fixed field codes, which mean that the number of records for each
respondent is the same and the same data appear in the same
column(s) for all respondents, are highly desirable.
• If possible, standard codes should be used for missing data. Coding of
structured questions is relatively simple, since the response options
are predetermined.
• In questions that permit a large number of responses, each possible
response option should be assigned a separate column.
 Coding
Guidelines for coding unstructured questions:
• Category codes should be mutually exclusive and collectively
exhaustive.
• Only a few (10% or less) of the responses should fall into the
“other” category.
• Category codes should be assigned for critical issues even if
no one has mentioned them.
• Data should be coded to retain as much detail as possible.
 Codebook
A codebook contains coding instructions and the necessary
information about variables in the data set. A codebook
generally contains the following information:
• column number
• record number
• variable number
• variable name
• question number
• instructions for coding
 Coding Questionnaires
• The respondent code and the record number appear on each
record in the data.
• The first record contains the additional codes: project code,
interviewer code, date and time codes, and validation code.
• It is a good practice to insert blanks between parts.
 Sample Codebook

16-165
 Precoding

16-166
 Coding Open-Ended Questions

16-167
 SESSION – 25 & 26
Data Analysis - Tabulation and
Accepted Principles of Tabulation
Cross Tabulation - Meaning,
Requirement of Cross Tabulation,
Setting up Cross Tabulation,
Determinig Direction of percentages &
Interpretation
 Cross-Tabulation
• While a frequency distribution describes one variable at a
time, a cross-tabulation describes two or more variables
simultaneously.
• Cross-tabulation results in tables that reflect the joint
distribution of two or more variables with a limited number of
categories or distinct values, e.g., Table 15.3.
 Internet Usage Data
Respondent Sex Familiarity Internet Attitude Toward Usage of Internet
Number Usage Internet Technology Shopping Banking
1 1.00 7.00 14.00 7.00 6.00 1.00 1.00
2 2.00 2.00 2.00 3.00 3.00 2.00 2.00
3 2.00 3.00 3.00 4.00 3.00 1.00 2.00
4 2.00 3.00 3.00 7.00 5.00 1.00 2.00
5 1.00 7.00 13.00 7.00 7.00 1.00 1.00
6 2.00 4.00 6.00 5.00 4.00 1.00 2.00
7 2.00 2.00 2.00 4.00 5.00 2.00 2.00
8 2.00 3.00 6.00 5.00 4.00 2.00 2.00
9 2.00 3.00 6.00 6.00 4.00 1.00 2.00
10 1.00 9.00 15.00 7.00 6.00 1.00 2.00
11 2.00 4.00 3.00 4.00 3.00 2.00 2.00
12 2.00 5.00 4.00 6.00 4.00 2.00 2.00
13 1.00 6.00 9.00 6.00 5.00 2.00 1.00
14 1.00 6.00 8.00 3.00 2.00 2.00 2.00
15 1.00 6.00 5.00 5.00 4.00 1.00 2.00
16 2.00 4.00 3.00 4.00 3.00 2.00 2.00
17 1.00 6.00 9.00 5.00 3.00 1.00 1.00
18 1.00 4.00 4.00 5.00 4.00 1.00 2.00
19 1.00 7.00 14.00 6.00 6.00 1.00 1.00
20 2.00 6.00 6.00 6.00 4.00 2.00 2.00
21 1.00 6.00 9.00 4.00 2.00 2.00 2.00
22 1.00 5.00 5.00 5.00 4.00 2.00 1.00
23 2.00 3.00 2.00 4.00 2.00 2.00 2.00
24 1.00 7.00 15.00 6.00 6.00 1.00 1.00
25 2.00 6.00 6.00 5.00 3.00 1.00 2.00
26 1.00 6.00 13.00 6.00 6.00 1.00 1.00
27 2.00 5.00 4.00 5.00 5.00 1.00 1.00
28 2.00 4.00 2.00 3.00 2.00 2.00 2.00
29 1.00 4.00 4.00 5.00 3.00 1.00 2.00
30 1.00 3.00 3.00 7.00 5.00 1.00 2.00
Gender and Internet Usage
Gender

Row
Internet Usage Male Female Total

Light (1) 5 10 15

Heavy (2) 10 5 15

Column Total 15 15
 Two Variables Cross-Tabulation
• Since two variables have been cross classified, percentages
could be computed either column wise, based on column
totals , or row wise, based on row totals.
• The general rule is to compute the percentages in the
direction of the independent variable, across the dependent
variable. The correct way of calculating percentages is as
shown in Table.
Internet Usage by Gender
Gender

Internet Usage Male Female

Light 33.3% 66.7%

Heavy 66.7% 33.3%

Column total 100% 100%

 Gender
Table 15.5
by Internet Usage
Internet Usage

Gender Light Heavy Total

Male 33.3% 66.7% 100.0%

Female 66.7% 33.3% 100.0%

 Introduction of a Third Variable in Cross-Tabulation
Original Two Variables

Some Association No Association

between the Two between the Two
Variables Variables

Introduce a Third Introduce a Third

Variable Variable

Refined Association No Association No Change in Some Association

between the Two between the Two the Initial between the Two
Variables Variables Pattern Variables
 Three Variables Cross-Tabulation
Refine an Initial Relationship
As shown in Figure, the introduction of a third variable can result in four
possibilities:

• As can be seen from Table 15.6, 52% of unmarried respondents fell in the
high-purchase category, as opposed to 31% of the married respondents.
Before concluding that unmarried respondents purchase more fashion
clothing than those who are married, a third variable, the buyer's sex,
was introduced into the analysis.
• As shown in Table 15.7, in the case of females, 60% of the unmarried fall
in the high-purchase category, as compared to 25% of those who are
married. On the other hand, the percentages are much closer for males,
with 40% of the unmarried and 35% of the married falling in the high
purchase category.
• Hence, the introduction of sex (third variable) has refined the relationship
between marital status and purchase of fashion clothing (original
variables). Unmarried respondents are more likely to fall in the high
purchase category than married ones, and this effect is much more
pronounced for females than for males.
Purchase of Fashion Clothing by Marital Status

Purchase of Current Marital Status

Fashion
Clothing Married Unmarried
High 31% 52%
Low 69% 48%
Column 100% 100%
Number of 700 300
respondents
 Purchase of Fashion Clothing by Marital Status

Pur chase of Sex

Fashion Male Female
Clothing Marr ied Not Mar r ied Not
Mar r ied Mar r ied
High 35% 40% 25% 60%

Low 65% 60% 75% 40%

Column 100% 100% 100% 100%

totals
Number of 400 120 300 180
cases
 Cross-Tabulation in Practice
While conducting cross-tabulation analysis in practice, it is useful to
proceed along the following steps.
1. Test the null hypothesis that there is no association between the variables
using the chi-square statistic. If you fail to reject the null hypothesis, then
there is no relationship.
2. If H0 is rejected, then determine the strength of the association using an
appropriate statistic (phi-coefficient, contingency coefficient, Cramer's V,
lambda coefficient, or other statistics), as discussed earlier.
3. If H0 is rejected, interpret the pattern of the relationship by computing the
percentages in the direction of the independent variable, across the
dependent variable.
4. If the variables are treated as ordinal rather than nominal, use tau b, tau
c, or Gamma as the test statistic. If H0 is rejected, then determine the
strength of the association using the magnitude, and the direction of the
relationship using the sign of the test statistic.
 SESSION – 27, 28 & 29
Hypothesis- Meaning,
How to frame Hypothesis,
Types of Hypothesis,
Univariate, Bivariate and Multi Variate
Data Analysis
 Meaning of hypothesis
• Hypothesis is assumed statement which states the probable
outcome of research problems.

• It is a tentative explanation for an observation, phenomenon, or

scientific problem that can be tested by further investigation.
 Importance of Hypothesis
• It supports the research
• It provides the direction to researcher
• It prevents waste of time
• It limits the research to specific area
• It acts as a framework for research
• It suggests which form of research design is
likely to be the most appropriate
• It offers explanations for the relationships
between those variables that can be empirically
tested
• Mainly there are two parts of hypothesis one is null hypothesis and
second is alternative hypothesis.

• Null hypothesis is what we assumed and we are sure about it up to

95% and not sure only 5%. For example, the result of students is
greater than 75 marks, then this assumption is termed as the Null
Hypothesis

• Alternative hypothesis is against what we assumed. For example,

As against the above, the result of students is not greater than 75
marks, we are then stating what is termed as Alternative Hypothesis
 Types of error
• There are two type of errors type I and type II.
A Type I error occurs when we reject a true null hypothesis

Null true Null false

Accept null Correct decision Type II(reject)
Reject null Type I (reject) Correct decision

A Type II error occurs when we don’t reject a false null hypothesis

 Examples of Hypothesis
• Steps for testing hypothesis:
1. Establish the null hypothesis
2. Select an appropriate test
3. Choose level of significance, α
4. Collect the data and calculate test statistic
5. Determine or calculate the critical or tabulated value
6. Compare critical and calculated value
7. Make the decision
 There are different cases to test the hypothesis:

• One tail or two tail test concerning single mean when the variance of
population is know and population is infinite.
Formula Ƶ = X – μ
ϭ √n

• For example, an educator claim that the average IQ of city college

students is no more than 110. to test this claim a sample of 150
students is taken and their average IQ was found to be 111.2 with a
std. dev. Of 7.2 at a 0.01. Test this claim
• Test concern single mean when the variance of population is known
and population is finite.
Formula Ƶ = X – μ
ϭ N-n
√n √ N – 1

• For example, as we discussed in earlier sum suppose the

population is 400 out of them 150 selected as sample then test the
hypothesis.
• Test concerning single mean when the variance of population is
unknown and sample size is known.
• Use Z test if sample size is greater than 30.
Formula Ƶ = X – μ
s √n

• Use T test if the sample size is less than 30.

Formula t = X – μ
s √n
where s= standard deviation of sample
df= n -1
• For example, the following data (in pound), which were selected
randomly from a normally distributed population of values, represent
measurements of a machine part that is supposed to weight, on
average 8.3 pounds.
8.1 8.4 8.3 8.2 8.5 8.6 8.4 8.3 8.4 8.2
8.8 8.2 8.2 8.3 8.1 8.3 8.4 8.5 8.5 8.7
use these data and α= 0.01 to test the hypothesis that the parts are
equal to the average of 8.3 pounds.
• Test concerning difference between two means when the variance of
the population are known.

Formula Z = X1 – X2
ϭ 1 +1
√ n1 n2

• For example, an automobile company is interested in testing the

mileage given by one of the car brands in two different cities,
Mumbai and Delhi. The company surveyed 100 cars owners in
Mumbai and found the average is 12kms per liter. Out of 150 cars
owners in Delhi, the mileage averaged to 12.5 kms per liter. The
standard deviation for mileage of this brand of car is known to be 0.9
kms. Can we state that these two cities give different mileage?
• Test concerning difference between two mean when the variance of
population are unknown and sample size small.

Formula t = x1 – x2
s 1+1
√ n1 n2
df = n1+ n2- 2

• if the sample size is large that means if size is greater than 30 than
use z test.
• For example, here two methods data are given method 1 and
method 2 and test whether both the methods give same
performance. The level of significance is 5%.
method 1 – 50 61 54 60 52 58 55 56 54 53
method 2 – 65 57 60 55 58 59 62 67 56 61
 Introduction to Chi-Square
• Chi-square test can be used when data satisfied four
condition.
• There must be two set of data. One observed and another
expected.
• The two set of data must be based on same sample size.
• Each cell in the data contains the observed or expected
count of five or large.
• The different cell in a row or column must have
categorical variables.
 Techniques of chi-square test

• There are two techniques of chi square testing:-

1. Chi- square test of independence
2. Chi -square test for goodness of fit
 Chi square test of independence
• The chi- square independence test is used to find out
whether there are association between row variable and
column variable in a contingency table constructed
from sample data .
• The null hypothesis is that the variables are not
associated in either words, they are independent. The
alternative hypothesis is that the variable are associated
or dependent.
 Examples
• Type of wristwatches preferred in independence of
person income
• Student preference for faculty is independent for
subject they teach
• Type of beverages preferred is independent of the
gender of customer
 Steps for chi square test of independence

• Step:-1 Decide the hypothesis

Ho: ‘x’ Variable is independent of ‘y’ variable
H1: ‘x’ variable is not independent of ‘y’ variables
• Step:-2 Formula

²=(Observed value-Expected value)²

Expected value

• Step:-3 Find α……?

Degree of freedom=(r-1) (c-1)
where, r=no. of rows
c= no. of columns
 Continued…
•Step:-4 Draw the table & find its Value

Ei fo fe (fo-fe) (fo-fe)² (fo-fe)²/fe

fe=total of row*total of column\total of row and column

• Step:-5 Find critical value seiing the chi-square table

using & Df.
• Step:-6 If cal>critical-reject null hypothesis.
If cal<critical-accept null hypothesis.
 Example

• Use the following contingency table to test

whether variable 1 is independent of variable 2
let α=.01
203 326 529
68 110 178
variable 2
271 436 707
variable 1
 Solution
• Step:1 decide the hypothesis
H0:variable 1 is independent of variable 2
H1:variable 1 is not independent of variable 2
• Step:2 χ²=Σ(fo-fe)²
fe
• Step:3 α= 0.01
Df=(r-1)(c-1)
=(2-1)(2-1)
=1
• Step:4= Critical value= 2.706
 Continued..
•Step 5:
Ei fo fe (fo-fe) (fo-fe)² (fo-fe)²
fe
E11 203 202.77 0.23 0.0529 0.0002
E12 326 326.23 -0.23 0.0529 0.0001
E21 68 68.23 -0.23 0.0529 0.0007
E22 110 109.77 0.23 0.0529 0.0004
0.0016

•Step 6: Decision taking

Calculated value(0.0016) < critical value (2.706)
Null hypothesis is accepted.
So, variable 2 is dependent on variable 1.
 Chi-square test for goodness of fit

• Chi-square test for goodness of fit uses frequency

data from a sample to test hypothesis about the shape
or proportion of a population.
• A goodness of fit test is an inferential procedure used
to determine test whether of frequency distribution
follows a claimed distributions.
• It is used to test whether the Observed frequency are
……………… distribution.
 Chi-Square test for Goodness of fit

• It helps to test whether there if significant

difference between an observed frequency
distribution & theoretical frequency distribution.
• In this manner, we can determine the goodness of
fit test of a theoretical frequency distribution.
• This is also used to analyze probabilities of
multinomial distribution trials along a single
dimension.
 Chi-Square as a test for Goodness of fit

• Formula to compute chi-square goodness-of-fit

test:
²= (fo-fe)²
fe
where;
fo= frequency of observed values
fe= frequency of expected values
 Chi-Square goodness of fit test- Uniform
Distribution

• It referred to as the rectangular distribution, is a

relatively simple continuous distribution in which the
same height, or f(x), is obtained over a range of
values.
• Here, Probabilities are calculated by determining the
area under the curve for a single point.
 Steps for uniform distribution

• Step:-1 Decide the hypothesis

H0: The observed frequency are …………. Distributed.
H1: The observed frequency are not …………….
Distributed.
• Step:-2 Σ(fo-fe)²/fe
• Step:-3 Find α……..?
Df = when it is uniform distribution Df=(n-1)
Df = When it is Poisson distribution Df=(n-2)
  Df = when it is Binomial distribution Df=(n-1)
Df = when it is Normal distribution Df=(n-3)
• Step:-4 Find the critical value from chi-square table.
 Continued…

• Step:-5 Find the expected frequency

No. fo Fe=∑fo/n (fo-fe)²
fe

• Step:-6 If cal>critical-reject null hypothesis.

If cal<critical-accept null hypothesis.
 Example for uniform distribution
• Use the following data & α=0.01 to determine
whether the observed frequencies represents
uniform distribution.
Category Fo
1 19
2 17
3 14
4 18
5 19
6 21
7 18
8 18
 Solution
• Step 1:
Ho: Observed frequencies are uniformly distributed
H1: Observed frequencies are not uniformly distributed
• Step 2: Formula
Σ(fo-fe)²/fe
• Step 3: α=0.01
Df= (8-1)=7
• Step 4:Critical value= 18.475
 Continued
• Step 5:
No. fo fe (fo-fe)²/fe
1 19 18 (144/8) 0.06
2 17 18 0.06
3 14 18 0.89
4 18 18 0
5 19 18 0.06
6 21 18 0.05
7 18 18 0
8 18 18 0
Total 144 1.57
 Continued…

• Step 6: decision
calculated value (1.57)<critical value (18.475)
So, null hypothesis is not rejected.
Observed frequency are uniformly distributed.
 SESSION – 30
Sampling - Introduction, Meaning,
Important terms related to Sampling
 Sampling
 The process of obtaining information from a subset (sample)
of a larger group (population)
 The results for the sample are then used to make estimates
of the larger group
 Faster and cheaper than asking the entire population
 Two keys
1. Selecting the right people
 Have to be selected scientifically so that they are
representative of the population
2. Selecting the right number of the right people
 To minimize sampling errors I.e. choosing the wrong
people by chance
 SAMPLING

• Sample -- contacting a portion of the

population (e.g., 10% or 25%)
– best with a very large population (n)
– easiest with a homogeneous population
• Census -- the entire population
– most useful is the population ("n") is small
– or the cost of making an error is high
 Population Vs.
Sample
Population of Interest

Population Sample

Sample
Parameter Statistic

We measure the sample using statistics in order to

inferences about the population and its parameters.
Characteristics of Good Samples

• Representative

• Accessible

• Low cost
 …this (bad)…

Sample
Population
…or this (VERY bad)…

Sample

Population
 Terminology
Population
The entire group of people of interest from whom the
researcher needs to obtain information.
Element (sampling unit)
one unit from a population
Sampling
The selection of a subset of the population
Sampling Frame
Listing of population from which a sample is chosen
Census
A polling of the entire population
Survey
A polling of the sample
 Terminology
Parameter
 The variable of interest

Statistic
 The information obtained from the sample about the
parameter

Goal
To be able to make inferences about the population
parameter from knowledge of the relevant statistic - to
draw general conclusions about the entire body of units

Critical Assumption
The sample chosen is representative of the population
 Steps in Sampling Process
1.Define the population
2.Identify the sampling frame
3.Select a sampling design or procedure
4.Determine the sample size
5.Draw the sample
 Sample vs. Census
Conditions Favoring the Use of
Type of Study Sample Census

1. Budget Small Large

2. Time available Short Long

3. Population size Large Small

4. Variance in the characteristic Small Large

5. Cost of sampling errors Low High

6. Cost of nonsampling errors High Low

7. Nature of measurement Destructive Nondestructive

8. Attention to individual cases Yes No

 SESSION – 31
Sampling Process
 Sampling Design Process
Define Population

Determine Sampling Frame

Determine Sampling Procedure

Probability Sampling Non-Probability Sampling

Type of Procedure Type of Procedure
Simple Random Sampling Convenience
Stratified Sampling Judgmental
Cluster Sampling Quota

Determine Appropriate
Sample Size

Execute Sampling
Design
 1. Define the Target Population
 It addresses the question “Ideally, who do you
want to survey?” i.e. those who have the
information sought What are their characteristics.
Who should be excluded?
– age, gender, product use, those in industry
– Geographic area
 It involves
– defining population units
– setting population boundaries
– Screening (e.g. security questions, product use )
1. Define the Target Population
The Element ...... individuals
families
seminar groups

sampling Unit…. individuals over 20

families with 2 kids
seminar groups at ”new” university

Extent ............ individuals who have bought “one”

families who eat fast food
seminar groups doing MR

Timing .......... bought over the last seven days

 1. Define the Target
Population

The target population for a toy store

can be defined as all households with
children living in Changa.
What‟s wrong with this definition?
 2. Determine the Sampling
Frame
 Obtaining a “list” of population (how will you reach sample)
 Students who eat at McDonalds?
 young people at random in the street?
 phone book
 students union listing
 University mailing list
 Problems with lists
 omissions
 ineligibles
 duplications
 Procedures
 E.g. individuals who have spent two or more hours on the
internet in the last week
 2. Determine the Sampling
Frame
Select “sample units”
 Individuals
 Household
 Streets
 Telephone numbers
 Companies
 3. Selecting a Sampling Design
 Probability sampling - equal chance of being
included in the sample (random)
– simple random sampling
– systematic sampling
– stratified sampling
– cluster sampling
 Non-probability sampling - - unequal chance of
being included in the sample (non-random)
– convenience sampling
– judgement sampling
– snowball sampling
– quota sampling
 3. Selecting a Sampling Design
Probability Sampling
 An objective procedure in which the probability of
selection is nonzero and is known in advance for
each population unit.
 It is also called random sampling.
 Ensures information is obtained from a
representative sample of the population
 Sampling error can be computed
 Survey results can be projected to the population
 More expensive than non-probability samples
 3. Selecting a Sampling Design
Simple Random Sampling (SRS)
• Population members are selected directly from the
sampling frame
• Equal probability of selection for every member
(sample size/population size)
• 400/10,000 = .04
• Use random number table or random number
generator
 3. Selecting a Sampling Design

Simple Random Sampling

 N = the number of cases in the sampling
frame
 n = the number of cases in the sample
 NCn = the number of combinations
(subsets) of n from N
 f = n/N = the sampling fraction
 SESSION – 32 & 33
Types of Sampling - Probability
Sampling
Types of Sampling - Non Probability
Sampling
 Classification of Sampling
Techniques
Sampling Techniques

Nonprobability Probability
Sampling Techniques Sampling Techniques

Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling

Simple Systematic Stratified Cluster Other Sampling

Random Sampling Sampling Sampling Techniques
Sampling
 Convenience Sampling
Convenience sampling attempts to obtain a sample of
convenient elements. Often, respondents are selected
because they happen to be in the right place at the right time.

– use of students, and members of social organizations

– mall intercept interviews without qualifying the
respondents
– department stores using charge account lists
– “people on the street” interviews
 Judgmental Sampling
Judgmental sampling is a form of convenience sampling in
which the population elements are selected based on the
judgment of the researcher.

– test markets
– purchase engineers selected in industrial marketing
research
– bellwether precincts selected in voting behavior research
– expert witnesses used in court
 Quota Sampling
Quota sampling may be viewed as two-stage restricted judgmental sampling.
– The first stage consists of developing control categories, or quotas, of
population elements.
– In the second stage, sample elements are selected based on convenience
or judgment.

Population Sample
composition composition
Control
Characteristic Percentage Percentage Number
Sex
Male 48 48 480
Female 52 52 520
____ ____ ____
100 100 1000
 Snowball Sampling
In snowball sampling, an initial group of respondents is
selected, usually at random.

– After being interviewed, these respondents are asked to

identify others who belong to the target population of
interest.
– Subsequent respondents are selected based on the
referrals.
 Simple Random Sampling
• Each element in the population has a known and equal
probability of selection.
• Each possible sample of a given size (n) has a known and
equal probability of being the sample actually selected.
• This implies that every element is selected independently of
every other element.
 Systematic Sampling
• The sample is chosen by selecting a random starting point and then
picking every ith element in succession from the sampling frame.
• The sampling interval, i, is determined by dividing the population size N by
the sample size n and rounding to the nearest integer.
• When the ordering of the elements is related to the characteristic of
interest, systematic sampling increases the representativeness of the
sample.
• If the ordering of the elements produces a cyclical pattern, systematic
sampling may decrease the representativeness of the sample.
For example, there are 100,000 elements in the population and a sample
of 1,000 is desired. In this case the sampling interval, i, is 100. A random
number between 1 and 100 is selected. If, for example, this number is 23,
the sample consists of elements 23, 123, 223, 323, 423, 523, and so on.
 Stratified Sampling
• A two-step process in which the population is partitioned into
subpopulations, or strata.
• The strata should be mutually exclusive and collectively
exhaustive in that every population element should be
assigned to one and only one stratum and no population
elements should be omitted.
• Next, elements are selected from each stratum by a random
procedure, usually SRS.
• A major objective of stratified sampling is to increase
precision without increasing cost.
 Stratified Sampling
• The elements within a stratum should be as homogeneous as possible, but
the elements in different strata should be as heterogeneous as possible.
• The stratification variables should also be closely related to the
characteristic of interest.
• Finally, the variables should decrease the cost of the stratification process
by being easy to measure and apply.
• In proportionate stratified sampling, the size of the sample drawn from
each stratum is proportionate to the relative size of that stratum in the
total population.
• In disproportionate stratified sampling, the size of the sample from each
stratum is proportionate to the relative size of that stratum and to the
standard deviation of the distribution of the characteristic of interest
among all the elements in that stratum.
 Cluster Sampling
• The target population is first divided into mutually exclusive and
collectively exhaustive subpopulations, or clusters.
• Then a random sample of clusters is selected, based on a probability
sampling technique such as SRS.
• For each selected cluster, either all the elements are included in the
sample (one-stage) or a sample of elements is drawn probabilistically
(two-stage).
• Elements within a cluster should be as heterogeneous as possible, but
clusters themselves should be as homogeneous as possible. Ideally, each
cluster should be a small-scale representation of the population.
• In probability proportionate to size sampling, the clusters are sampled
with probability proportional to size. In the second stage, the probability
of selecting a sampling unit in a selected cluster varies inversely with the
size of the cluster.
 Types of Cluster Sampling
Cluster Sampling

One-Stage Two-Stage Multistage

Sampling Sampling Sampling

Simple Cluster Probability

Sampling Proportionate
to Size Sampling
 Strengths and Weaknesses of
Basic Sampling Techniques
Technique Strengths
Nonprobability Sampling Least expensive, least
Convenience sampling time-consuming, most
convenient
Judgmental sampling Low cost, convenient,
not time-consuming
Quota sampling Sample can be controlled
for certain characteristics
Snowball sampling Can estimate rare
characteristics
Probability sampling Easily understood,
Simple random sampling results projectable
(SRS)
Systematic sampling Can increase
representativeness,
easier to implement than
SRS, sampling frame not
necessary
Stratified sampling Include all important
subpopulations,
precision
Cluster sampling Easy to implement, cost
effective
Weaknesses
Selection bias, sample not
representative, not recommended for
descriptive or causal research
Does not allow generalization,
subjective
Selection bias, no assurance of
representativeness
Time-consuming
Difficult to construct sampling
frame, expensive, lower precision,
no assurance of representativeness.
Can decrease representativeness
Difficult to select relevant
stratification variables, not feasible to
stratify on many variables, expensive
Imprecise, difficult to compute and
interpret results
 Definitions and Symbols
• Parameter: A parameter is a summary description of a fixed
characteristic or measure of the target population. A parameter
denotes the true value which would be obtained if a census rather
than a sample was undertaken.

• Statistic: A statistic is a summary description of a characteristic or

measure of the sample. The sample statistic is used as an estimate
of the population parameter.

• Finite Population Correction: The finite population correction (fpc)

is a correction for overestimation of the variance of a population
parameter, e.g., a mean or proportion, when the sample size is 10%
or more of the population size.
 Definitions and Symbols
• Precision level: When estimating a population parameter by
using a sample statistic, the precision level is the desired size
of the estimating interval. This is the maximum permissible
difference between the sample statistic and the population
parameter.

• Confidence interval: The confidence interval is the range into

which the true population parameter will fall, assuming a
given level of confidence.

• Confidence level: The confidence level is the probability that

a confidence interval will include the population parameter.
 SESSION – 34 & 35
Sample Size Determination
 Symbols for Population and Sample Variables

Variable Population Sample

_
Mean µ X

Proportion  p

Variance 2 s2

Standard deviation  s

Size N n
_
Standard error of the mean x
_ Sx
Standard error of the proportion p Sp
_
Standardized variate (z) (X-µ)/ (X-X)/S
_
Coefficient of variation (C) /µ S/X
 Sample Size Determination for
Means and Proportions
Steps Means Proportions

1. Specify the level of precision D = $5.00 D = p -  = 0.05

2. Specify the confidence level (CL) CL = 95% CL = 95%

3. Determine the z value associated with CL z value is 1.96 z value is 1.96

4. Determine the standard deviation of the Estimate :  = 55 Estimate :  = 0.64

population

5. Determine the sample size using the n = 2z2/D2 = 465 n = (1-) z2/D2 = 355
formula for the standard error

6. If the sample size represents 10% of the nc = nN/(N+n-1) nc = nN/(N+n-1)

population, apply the finite population
correction
_
= p  zsp
7. If necessary, reestimate the confidence
interval by employing s to estimate 
=   zs-x
8. If precision is specified in relative rather D = Rµ D = R
than absolute terms, determine the sample n = C2z2/R2 n = z2(1-)/(R2)
size by substituting for D.
 Sample Size for Estimating Multiple Parameters
Table 12.3

Variable
Mean Household Monthly Expense On
Department store shopping Clothes Gifts

Confidence level 95% 95% 95%

z value 1.96 1.96 1.96

Precision level (D) $5 $5 $4

Standard deviation of the $55 $40 $30

population ()

Required sample size (n) 465 246 217

 Improving Response Rates
Methods of Improving
Response Rates

Reducing Reducing
Refusals Not-at-Homes

Prior Motivating Incentives Questionnaire Follow-Up Other

Notification Respondents Design Facilitators
and
Administration

Callbacks
 Adjusting for Nonresponse
• Subsampling of Nonrespondents – the researcher contacts a
subsample of the nonrespondents, usually by means of
telephone or personal interviews.
• In replacement, the nonrespondents in the current survey are
replaced with nonrespondents from an earlier, similar survey.
The researcher attempts to contact these nonrespondents
from the earlier survey and administer the current survey
questionnaire to them, possibly by offering a suitable
incentive.
 Adjusting for Nonresponse
• In substitution, the researcher substitutes for nonrespondents other
elements from the sampling frame that are expected to respond. The
sampling frame is divided into subgroups that are internally homogeneous
in terms of respondent characteristics but heterogeneous in terms of
response rates. These subgroups are then used to identify substitutes
who are similar to particular nonrespondents but dissimilar to
respondents already in the sample.
• Subjective Estimates – When it is no longer feasible to increase the
response rate by subsampling, replacement, or substitution, it may be
possible to arrive at subjective estimates of the nature and effect of
nonresponse bias. This involves evaluating the likely effects of
nonresponse based on experience and available information.
• Trend analysis is an attempt to discern a trend between early and late
respondents. This trend is projected to nonrespondents to estimate
where they stand on the characteristic of interest.
 Adjusting for Nonresponse
• Weighting attempts to account for nonresponse by assigning differential
weights to the data depending on the response rates. For example, in a
survey the response rates were 85, 70, and 40%, respectively, for the high-
, medium-, and low income groups. In analyzing the data, these
subgroups are assigned weights inversely proportional to their response
rates. That is, the weights assigned would be (100/85), (100/70), and
(100/40), respectively, for the high-, medium-, and low-income groups.
• Imputation involves imputing, or assigning, the characteristic of interest to
the nonrespondents based on the similarity of the variables available for
both nonrespondents and respondents. For example, a respondent who
does not report brand usage may be imputed the usage of a respondent
with similar demographic characteristics.
 SESSION – 36, 37 & 38
Questionnaire - Steps in Questionnaire
Construction
Points to be considered in Questionnaire
Construction
Practice Questionnaire Construction
(Exercise)
 Questionnaire Definition
• A questionnaire is a formalized set of questions for obtaining
information from respondents.
 Questionnaire Objectives
• It must translate the information needed into a set of specific
questions that the respondents can and will answer.
• A questionnaire must uplift, motivate, and encourage the
respondent to become involved in the interview, to
cooperate, and to complete the interview.
• A questionnaire should minimize response error.
Questionnaire Design Process
Specify the Information Needed

Specify the Type of Interviewing Method

Determine the Content of Individual Questions

Design the Question to Overcome the Respondent‟s Inability and Unwillingness to

Answer

Decide the Question Structure

Determine the Question Wording

Arrange the Questions in Proper Order

Identify the Form and Layout

Reproduce the Questionnaire

Eliminate Bugs by Pre-testing

 Effect of Interviewing Method on
Questionnaire Design

Department Store Project

Mail Questionnaire
• Please rank order the following department stores in order of your preference to
shop at these stores. Begin by picking out the one store that you like most and
assign it a number 1. Then find the second most preferred department store and
assign it a number 2. Continue this procedure until you have ranked all the stores
in order of preference. The least preferred store should be assigned a rank of 10.
No two stores should receive the same rank number.
Store Rank Order

1. Lord & Taylor ____________

2. Macy's ____________
.
.
10. Wal-Mart ____________
 Effect of Interviewing Method on
Questionnaire Design
Telephone Questionnaire
• I will read to you the names of some department stores. Please rate them in terms of
your preference to shop at these stores. Use a ten point scale, where 1 denotes not so
preferred and 10 denotes greatly preferred. Numbers between 1 and 10 reflect
intermediate degrees of preference. Again, please remember that the higher the
number, the greater the degree of preference. Now, please tell me your preference to
shop at .......(READ ONE STORE AT A TIME)

Store Not So Greatly

Preferred Preferred
1. Lord & Taylor 1 2 3 4 5 6 7 8 9 10
2. Macy's 1 2 3 4 5 6 7 8 9 10
.
.
.
10. Wal-Mart 1 2 3 4 5 6 7 8 9 10
 Effect of Interviewing Method on
Questionnaire Design
Personal Questionnaire
• (HAND DEPARTMENT STORE CARDS TO THE RESPONDENT). Here is a set of
department store names, each written on a separate card. Please examine these
cards carefully. (GIVE RESPONDENT TIME). Now, please examine these cards again
and pull out that card which has the name of the store you like the most, i.e., your
most preferred store for shopping. (RECORD THE STORE NAME AND KEEP THIS
CARD WITH YOU). Now, please examine the remaining nine cards. Of these
remaining nine stores, what is your most preferred store for shopping? (REPEAT
THIS PROCEDURE SEQUENTIALLY UNTIL THE RESPONDENT HAS ONLY ONE CARD
LEFT)

Store Rank Name of the Store

1. 1 __________________
2. 2 __________________
.
.
.
10. 10 __________________
 Effect of Interviewing Method on
Questionnaire Design

Electronic Questionnaire
• This question for e-mail and Internet questionnaires will be
very similar to that for the mail questionnaire.
• In all these methods, the questionnaire is self-administered by
the respondent.
 Individual Question Content
Is the Question Necessary?

• If there is no satisfactory use for the data resulting from a

question, that question should be eliminated.
 Individual Question Content
Are Several Questions Needed Instead of One?

• Sometimes, several questions are needed to obtain the

required information in an unambiguous manner. Consider
the question,

“Do you think Coca-Cola is a tasty and refreshing soft

drink?” (Incorrect)

• Such a question is called a double-barreled question, because

two or more questions are combined into one. To obtain the
required information, two distinct questions should be
asked:

“Do you think Coca-Cola is a tasty soft drink?” and

“Do you think Coca-Cola is a refreshing soft drink?”
(Correct)
 Overcoming Inability To Answer
Is the Respondent Informed?

• In situations where not all respondents are likely to be

informed about the topic of interest, filter questions that
measure familiarity and past experience should be asked
before questions about the topics themselves.
• A “don't know” option appears to reduce uninformed
responses without reducing the response rate.
 Overcoming Inability To Answer
Can the Respondent Remember?

How many gallons of soft drinks did you

consume during the last four weeks? (Incorrect)

How often do you consume soft drinks in a

typical week? (Correct)
1. ___ Less than once a week
2. ___ 1 to 3 times per week
3. ___ 4 to 6 times per week
4. ___ 7 or more times per week
 Overcoming Inability To Answer
Can the Respondent Articulate?

• Respondents may be unable to articulate certain types of

responses, e.g., describe the atmosphere of a department
store.
• Respondents should be given aids, such as pictures, maps,
and descriptions to help them articulate their responses.
 Overcoming Unwillingness To Answer
Effort Required of the Respondents

• Most respondents are unwilling to devote a lot of effort to

provide information.
 Overcoming Unwillingness To Answer

Please list all the departments from which you purchased

merchandise on your most recent shopping trip to a department
store. (Incorrect)

In the list that follows, please check all the departments from
which you purchased merchandise on your most recent shopping
trip to a department store.

1. Women's dresses ____

2. Men's apparel ____
3. Children's apparel ____
4. Cosmetics ____
.
.
.
16. Jewelry ____
17. Other (please specify) ____ (Correct)
 Overcoming Unwillingness To Answer

Context
• Respondents are unwilling to respond to questions which they consider to
be inappropriate for the given context.
• The researcher should manipulate the context so that the request for
information seems appropriate.

Legitimate Purpose
• Explaining why the data are needed can make the request for the
information seem legitimate and increase the respondents' willingness to
answer.

Sensitive Information
• Respondents are unwilling to disclose, at least accurately, sensitive
information because this may cause embarrassment or threaten the
respondent's prestige or self-image.
 Overcoming Unwillingness To Answer
Increasing the Willingness of Respondents

• Place sensitive topics at the end of the questionnaire.

• Preface the question with a statement that the behavior of
interest is common.
• Ask the question using the third-person technique: phrase the
question as if it referred to other people.
• Hide the question in a group of other questions which
respondents are willing to answer. The entire list of questions
can then be asked quickly.
• Provide response categories rather than asking for specific
figures.
• Use randomized techniques.
 Choosing Question Structure
Unstructured Questions

• Unstructured questions are open-ended questions that

respondents answer in their own words.

Do you intend to buy a new car within the next six months?
__________________________________
 Choosing Question Structure
Structured Questions

• Structured questions specify the set of response alternatives

and the response format. A structured question may be
multiple-choice, dichotomous, or a scale.
 Choosing Question Structure
Multiple-Choice Questions

• In multiple-choice questions, the researcher provides a choice

of answers and respondents are asked to select one or more
of the alternatives given.

Do you intend to buy a new car within the next six months?
____ Definitely will not buy
____ Probably will not buy
____ Undecided
____ Probably will buy
____ Definitely will buy
____ Other (please specify)
 Choosing Question Structure
Dichotomous Questions

• A dichotomous question has only two response alternatives:

yes or no, agree or disagree, and so on.
• Often, the two alternatives of interest are supplemented by a
neutral alternative, such as “no opinion,” “don't know,”
“both,” or “none.”

Do you intend to buy a new car within the next six months?
_____ Yes
_____ No
_____ Don't know
 Choosing Question Structure
Scales

Do you intend to buy a new car within the next six months?

Definitely ProbablyUndecided ProbablyDefinitely

will not buy will not buy will buy will buy
1 2 3 4 5
 Choosing Question Wording
Define the Issue

• Define the issue in terms of who, what, when, where, why,

and way (the six Ws). Who, what, when, and where are
particularly important.

Which brand of shampoo do you use? (Incorrect)

Which brand or brands of shampoo have you

personally used at home during the last month?
In case of more than one brand, please
list all the brands that apply. (Correct)
Choosing Question Wording
The W's Defining the Question

Who The Respondent

It is not clear whether this question
relates to the individual respondent
or the respondent's total
household.
What The Brand of Shampoo
It is unclear how the respondent is
to answer this question if more
than one brand is used.

When Unclear
The time frame is not specified in
this question. The respondent
could interpret it as meaning the
shampoo used this morning, this
week, or over the past year.
Where At home, at the gym, on the road?
 Choosing Question Wording
Use Ordinary Words

“Do you think the distribution of soft drinks is adequate?”

(Incorrect)

“Do you think soft drinks are readily available when you want to
buy them?” (Correct)
 Choosing Question Wording
Use Unambiguous Words

In a typical month, how often do you shop in department

stores?
_____ Never
_____ Occasionally
_____ Sometimes
_____ Often
_____ Regularly (Incorrect)

In a typical month, how often do you shop in department

stores?
_____ Less than once
_____ 1 or 2 times
_____ 3 or 4 times
_____ More than 4 times (Correct)
 Choosing Question Wording
Avoid Leading or Biasing Questions
• A leading question is one that clues the respondent to what the answer
should be, as in the following:

Do you think that patriotic Indians should buy imported automobiles when
that would put Indian labor out of work?
_____ Yes
_____ No
_____ Don't know
(Incorrect)

Do you think that Indians should buy imported automobiles?

_____ Yes
_____ No
_____ Don't know
(Correct)
 Choosing Question Wording
Avoid Implicit Alternatives

• An alternative that is not explicitly expressed in the options is

an implicit alternative.

1. Do you like to fly when traveling short distances?

(Incorrect)

2. Do you like to fly when traveling short distances, or

would you rather drive?
(Correct)
 Choosing Question Wording
Avoid Implicit Assumptions

• Questions should not be worded so that the answer is

dependent upon implicit assumptions about what will happen
as a consequence.

1. Are you in favor of a balanced budget?

(Incorrect)

2. Are you in favor of a balanced budget if it would result

in an increase in the personal income tax?
(Correct)
 Choosing Question Wording
Avoid Generalizations and Estimates

“What is the annual per capita expenditure on groceries in

your household?” (Incorrect)

“What is the monthly (or weekly) expenditure on groceries in

your household?”

and

“How many members are there in your household?”

(Correct)
 Choosing Question Wording
Dual Statements: Positive and Negative

• Questions that are in the form of statements should be

worded both positively and negatively.
 Determining the Order of
Questions
Opening Questions
• The opening questions should be interesting, simple, and non-
threatening.

Type of Information
• As a general guideline, basic information should be obtained
first, followed by classification, and, finally, identification
information.

Difficult Questions
• Difficult questions or questions which are sensitive,
embarrassing, complex, or dull, should be placed late in the
sequence.
 Determining the Order of
Questions
Effect on Subsequent Questions
• General questions should precede the specific questions
(funnel approach).

Q1: “What considerations are important to you in selecting a

department store?”

Q2: “In selecting a department store, how important is

convenience of location?”
(Correct)
 Determining the Order of
Questions
Logical Order
The following guidelines should be followed for branching
questions:

• The question being branched (the one to which the

respondent is being directed) should be placed as close as
possible to the question causing the branching.
• The branching questions should be ordered so that the
respondents cannot anticipate what additional information
will be required.
Flow Chart for Questionnaire Design
Fig. 10.2
Introduction

Ownership of Store, Bank,

and Other Charge Cards

Purchased Products in a Specific Department

Store during the Last Two Months

Yes No

How was Payment made? Ever Purchased in a

Department Store?

Credit Cash
Yes
Other

No
Store Bank Other
Charge Charge Charge
Card Card Card

Intentions to Use Store, Bank,

and other Charge Cards
 Form and Layout
• Divide a questionnaire into several parts.
• The questions in each part should be numbered, particularly
when branching questions are used.
• The questionnaires should preferably be precoded.
• The questionnaires themselves should be numbered serially.
 Example of a Precoded
Questionnaire

GUJARAT SAMACHAR
A Confidential Survey of Our Subscribers

(Please ignore the numbers alongside the answers. They are only to help us
in data processing.)

1. Considering all the times you pick it up, about how much time, in total, do
you spend reading or looking through a typical issue of GUJARAT
SAMACHAR?

Less than 30 minutes.....................-1 11/2 hours to 1 hour 59 minutes.........-4

30 to 59 minutes............................-2 2 hours to 2 hours 59 minutes...........-5

1 hour to 1 hour 29 minutes..........-3 3 hours or more.................................-6

Reproduction of the Questionnaire
• The questionnaire should be reproduced on good-quality paper and have
a professional appearance.
• Questionnaires should take the form of a booklet rather than a number of
sheets of paper clipped or stapled together.
• Each question should be reproduced on a single page (or double-page
spread).
• Vertical response columns should be used for individual questions.
• Grids are useful when there are a number of related questions which use
the same set of response categories.
• The tendency to crowd questions together to make the questionnaire look
shorter should be avoided.
• Directions or instructions for individual questions should be placed as
close to the questions as possible.
 Pretesting
Pretesting refers to the testing of the questionnaire on a small
sample of respondents to identify and eliminate potential
problems.

• A questionnaire should not be used in the field survey

without adequate pretesting.
• All aspects of the questionnaire should be tested, including
question content, wording, sequence, form and layout,
question difficulty, and instructions.
• The respondents for the pretest and for the actual survey
should be drawn from the same population.
• Pretests are best done by personal interviews, even if the
actual survey is to be conducted by mail, telephone, or
electronic means, because interviewers can observe
respondents' reactions and attitudes.
 Pretesting
• After the necessary changes have been made, another pretest
could be conducted by mail, telephone, or electronic means if
those methods are to be used in the actual survey.
• A variety of interviewers should be used for pretests.
• The pretest sample size varies from 15 to 30 respondents for
each wave.
• Protocol analysis and debriefing are two commonly used
procedures in pretesting.
• Finally, the responses obtained from the pretest should be
coded and analyzed.
 SESSION – 39, 40 & 41
An Overview of Market Research
Product Research
Advertising Research
Market Research
 Objectives of Lecture on Market Research

This lecture should lead you to an understanding of the

uses and abuses of market research. If, in the future, there
is talk of commissioning market research for an NPD
project (or other research you may be working on) you
should be able to:
- evaluate the usefulness (or otherwise) of market
research for the problem you are involved with
- discuss appropriate types of research with confidence
- set yourself realistic expectations regarding the
results/ timing
Structure of Market Research
Lecture

• Spend on Market Research

• Types of Market Research

• Potential Problems
 Market Research vs Marketing Research
(strictly speaking...)

Market Research Researching the immediate competitive

environment of the marketplace, including
customers, competitors, suppliers,
distributors and retailers
Marketing Research Includes all the above plus:
- companies and their strategies for products
and markets
- the wider environment within which the firm
operates (e.g. political, social, etc)
 Market(ing) Research: Definition

The systematic design, collection, analysis and reporting of data and

findings relevant to a specific marketing situation facing the
organisation
 The Ten Most Common Market Research
Activities
Directly
Activity Percentage of companies doing relevant to
activity* NPD

Determination of market characteristics 97

Measurement of market potential 97

Market share analysis 97

Sales analysis 92
Studies of business trends 91
Short range forecasting 89
Competitive product studies 87
Long range forecasting 87

Pricing studies 83

Testing existing products 80

* based on research activities of 599 companies in the US

 Top 10 market research activities

Market Measurement 18%

New Product development/concept testing 14%
Ad or brand awareness monitoring/tracking 13%
Customer Satisfaction (inc Mystery Shopping) 10%
Usage and Attitude Studies 7%
Media Research & evaluation 6%
Advertising developing and pre-testing 5%
Social Surveys for central/local government 4%
Brand/corporate reputation 4%
Omnibus Studies 3%

Source: BMRA
 Market Research Budgets

1 - 2% of company sales = total budget

of this:

50% - 80% 20% - 50%

in-house externally
85% of Fortune 500 1. Syndicated - service
companies have research firms
internal departments
2. Custom research firms
3. Specialty research firms
 External Market Research Firms
Types
1. Syndicated - service research
firms
2. Custom market research firms
3. Specialty line research firms
Description
Data gathered periodically from
customers and distribution channels and
then sold to clients (e.g. A.C. Nielson)
Hired to carry out specific research
projects for clients. The firm conducts the
survey and the results are the property of
one client only (e.g. Research
International)
Firms providing a specialised service to
other market research firms, e.g. a firm
selling field interviewing services (e.g.
Continental Research)
Why Conduct Market Research in New Product
Development?

- The product must appeal to the customer (however widely

defined)
- Timely market research can help you mould the product to the
consumer‟s need/wants
- Market research tend to point out successes and failures before
products are launched “for real”
- As a result, it can save you money and time
 WARNING!

Market Research is about understanding consumer

reactions to the product. Marketing may understand the
consumer best but R&D may well (early on) understand
the product best

Don‟t simply
hand M.R.
over to
marketing!
 Types of Market Research

By Source By Methodology By Objectives

- Primary - Qualitative - Exploratory

- Secondary - Quantitative - Descriptive
- Causal
(or experimental)
 Types of Market Research: By Source

Primary Collection of data specifically for the problem or

project in hand
Secondary Based on data previously collected for purposes
other than the research in hand (e.g. published
articles, government stats, etc)
 Types of Market Research: By Methodology

Qualitative Quantitative

Type of Question Probing Simple

Sample Size Small Large
Information per respondent High Low(ish)
Questioner‟s skill High Low(ish)
Analyst‟s skill High High
Type of analysis Subjective, Objective,
Interpretative Statistical
Ability to replicate Low High
Areas probed Attitudes Choices
Feelings Frequency
Motivations Demographics
Benefits of Qualitative Market Research vs Quantitative

Benefit Comment/Example

Cheaper Smaller sample size

Probes in-depth motivations Allows managers to observe (through

and feelings one way mirror) „real‟ consumer
reaction to the issue - e.g. comments
and associations (e.g. Levis) regarding
a new product fresh from the labs

Often useful precursor Gives the research department a low

to quantitative research cost and timely sense of which
issues to probe in quantitative
research
Qualitative vs Quantitative
Total
Mkt
Quant Qual
Share

Market Measurement 18.4% 20.8% 3.3%

NPD/Concept testing 13.8% 11.6% 27.3%

Ad/brand awareness 12.7% 14.4% 2.2%

tracking
Customer satisfaction 9.7% 10.4% 5.4%
(incl mystery shopping)
Usage and attitude surveys 6.6% 6.0% 10.4%

Source BMRA,
 Types of Market Research: By Objective

• Exploratory Preliminary data needed to develop an idea

further. Eg outline concepts, gather insights,
formulate hypotheses

• Descriptive Describe an element of an ideas precisely. Eg

who is the target market, how large is it, how
will it develop
• Causal Test a cause and effect relationship, e.g. price
elasticity. Done through experiment
 The Market Research Process

1. Defining the 2. Developing 3. Collecting 4. Analysing 5. Presenting

problem and the research the the the findings
objectives plan information information

Steps
Distinguish between Decide on Information is Statistical Overall conclusions
the research type - budget collected manipulation of to be presented
needed e.g. according to the data collected rather than
- data sources
the plan (N.B. (e.g. regression) overwhelming
- exploratory - research or subjective
approaches it is often done statistical
- descriptive analysis of focus methodologies
- research by external
- causal firms) groups
instruments
- sampling plan
- contact methods

Comments
If a problem is The plan needs This phase is Significant Can take various
vaguely defined, to be decided the most costly difference in forms:
the results can upfront but and the most type of analysis - oral presentation
have little flexible enough liable to error according to
- written conclusions
bearing on the to incorporate whether market supported by analysis
key issues changes/ research is
iterations quantitative or - data tables
qualitative
 Potential Problems with Market Research

1. When and how not to do it

2. Problems with research buyers vs suppliers
3. Frequent technical pitfalls
4. Problems with traditional market research
 When and How Not to Conduct Market
Research

Lack of resources

Closed mindset
Research results not
Poor actionable
timing
re:
market
Late timing re: process place
Vague
objectives

Cost outweighs benefit

 When and How Not to Conduct Market
Research
Occasion Comments/Example
Lack of resources If quantitative research is needed, it is not worth
doing unless a statistically significant sample can
be used
Research results not Where psychographic data (for example) is used
actionable which won‟t help the company form firm actions

Closed mindset When research is used only as a rubber stamp of a

preconceived idea
Late timing re: When research results come too late to
process influence the decision

Poor timing re: If a product is in the „decline‟ phase (e.g. records)

marketplace there‟s little point in researching new product
varieties
Vague objectives Market research cannot be helpful unless it is
probing a particular issue
Cost outweighs The expected value of the information should
benefit outweigh the cost of gathering the data
 Problems With Research
Buyers vs Suppliers
Buyer Suppliers

• Narrow concept of research • Variable quality of market

researchers
• Research used tokenistically
• Market researchers not
• Unrealistic view of timeframe sufficiently demanding

• Technical problems
 Problems With Research Buyers vs Suppliers - Detail
Problems with Buyer Problems with Supplier
of Research of Research
- Narrow concept of research - Variable quality of market researchers
• many managers see M.R. as no more • little uniformity of professionalism
than fact-finding across the industry
• they therefore spend little time • many small, poorly qualified
defining the problem or explaining the companies
context
• the results are irrelevant - Market researchers are not sufficiently
demanding
• a vicious circle arises • upfront time often insufficient
- Research used tokenistically
• little contact throughout process
• used to confirm existing views rather
than objective look at marketplace - Technical problems arise e.g.
- Unrealistic view of time frames • problem ill-defined
• often results are expected very rapidly • questionnaires poorly constructed
• research therefore commissioned too
late
• research firms bow to time pressure and
results are sub-optimal
Differing styles
M.R. documents are often phrased in an abstract, tentative way (and rely
on jargon) whilst managers expect concrete, down to earth
recommendations
 Problems with Supplier of Research

• Variable quality of market researchers

– little uniformity of professionalism across the
industry
– many small, poorly qualified companies
• Market researchers are not sufficiently
demanding
– upfront time often insufficient
– little contact throughout process
• Technical problems arise e.g.
– problem ill-defined
 Frequent Technical Pitfalls

1. Poor definition of problem

2. Designing the questionnaire
3. Sample size small
4. Data collection inadequate
 Problems with Traditional Market Research
1. Market research has allowed prominent product failures, and wrong
predictions
2. Markets are increasingly becoming micro-segmented (e.g. sports
shoes aimed at affluent fashion conscious women specifically for
aerobics), so mass market research becomes correspondingly irrelevant
3. It is helpful for improvements, but less so for radical innovations
4. For more accurate targeting it may be advantageous to work with
leading customers within the target group
 Coca Cola Failure: Background and Research

- Early 80s, share losses to Pepsi

- New Product research carried out
• $4m cost
• 200,000 taste tests
• 60% of consumers preferred it in blind tests
- BUT research was narrowly defined
• considered taste not emotions
• dropping Old Coke not mentioned
 U.S. Reaction to Old Coke’s Return

Political Senator David Prior of Arkansas on the

Senate Floor:
“A very meaningful moment in the history
of America, this shows that some national
institutions cannot be changed”
Media ABC interrupted its soap opera, General
Hospital on Wednesday afternoon to
break the news
Economic Coca Cola‟s share price rose to its
highest level in 12 years
 Market Research: Summary

1. Market Research is usually an integral part of understanding

innovations - you ignore it at your peril....
2. But it must be timely, objective and relevant, otherwise it is worse than
useless, leading you down the wrong path
3. So, be involved as far as you can be, especially up front and don‟t let
the jargon deter you!
 SESSION - 49
Interpretation - Meaning, Need & Techniques of
Interpretation
 Interpretation
• Interpretation refers to the task of drawing inferences from
the collected facts after an analytical and/or experimental
study. In fact, it is a search for broader meaning of research
findings.
• The task of interpretation has two major aspects viz., (i) the
effort to establish continuity in research through linking the
results of a given study with those of another, and (ii) the
establishment of some explanatory concepts.
 Why Interpretation
• It is through interpretation that the researcher can well understand the abstract
principle that work beneath his findings. Through this he can link up his findings
with those of other studies, having the same abstract principle, and thereby can
predict about the concrete world of events. Fresh inquiries can test these
predictions later on. This way the continuity in research can be maintained.
• Interpretation leads to the establishment of explanatory concepts that can serve
as a guide for future research studies; it opens new avenues of intellectual
adventure and stimulates the quest for more knowledge.
• Researcher can better appreciate only through interpretation why his findings are
what they are and can make others to understand the real significance of his
research findings.
• The interpretation of the findings of exploratory research study often results into
hypotheses for experimental research and as such interpretation is involved in the
transition from exploratory to experimental research. Since an exploratory study
does not have a hypothesis to start with, the findings of such a study have to be
interpreted on a post-factum basis in which case the interpretation is technically
described as ‘post factum’ interpretation.
 Techniques of Interpretation
• Researcher must give reasonable explanations of the relations which he has found
and he must interpret the lines of relationship in terms of the underlying
processes and must try to find out the thread of uniformity that lies under the
surface layer of his diversified research findings. In fact, this is the technique of
how generalization should be done and concepts be formulated.
• Extraneous information, if collected during the study, must be considered while
interpreting the final results of research study, for it may prove to be a key factor in
understanding the problem under consideration.
• It is advisable, before embarking upon final interpretation, to consult someone
having insight into the study and who is frank and honest and will not hesitate to
point out omissions and errors in logical argumentation. Such a consultation will
result in correct interpretation and, thus, will enhance the utility of research
results.
• Researcher must accomplish the task of interpretation only after considering all
relevant factors affecting the problem to avoid false generalization. He must be in
no hurry while interpreting results, for quite often the conclusions, which appear
to be all right at the beginning, may not at all be accurate.
 Precautions in Interpretation
• At the outset, researcher must invariably satisfy himself that (a) the data
are appropriate, trustworthy and adequate for drawing inferences; (b) the
data reflect good homogeneity; and that (c) proper analysis has been done
through statistical methods.
• The researcher must remain cautious about the errors that can possibly
arise in the process of interpreting results.
• He must always keep in view that the task of interpretation is very much
intertwined with analysis and cannot be distinctly separated. As such he
must take the task of interpretation as a special aspect of analysis and
accordingly must take all those precautions that one usually observes
while going through the process of analysis viz., precautions concerning
the reliability of data, computational checks, validation and comparison of
results.
• He must never lose sight of the fact that his task is not only to make
sensitive observations of relevant occurrences, but also to identify and
disengage the factors that are initially hidden to the eye
 SESSION – 50
Report Writing - Meaning, Need of Report
Writing, Steps in Report Writing
 RESEARCH REPORT

• A research report is:

– a written document or oral presentation based on a
written document that communicates the purpose, scope,
objective(s), hypotheses, methodology, findings,
limitations and finally, recommendations of a research
project to others.
– The last stage of a marketing research process.;
– It is more than a summary of findings; rather it is a record of the
research process.
• The researcher has to convince the client [and others
who may read the report] that the research findings can
be acted on for their own benefit.
334
 Steps in writing Research Report

The usual steps involved in writing report are:

(a) logical analysis of the subject-matter;
(b) preparation of the final outline;
(c) preparation of the rough draft;
(d) rewriting and polishing;
(e) preparation of the final bibliography
(f) writing the final draft.

335
 SESSION –51
Lay Out of Report - Preliminary Pages, Main
Body & End Matter
 Most research reports include the following elements:

I. Title page XI. Research design

II. Letter of transmittal a. Type of research design
b. Information needs
III. Table of contents
c. Data collection from secondary sources
IV. List of tables d. Data collection from primary sources
V. List of graphs e. Scaling techniques
VI. List of appendices f. Questionnaire development and pretesting
g. Sampling techniques
VII. List of exhibits h. Field work
VIII. Executive summary
XII. Data analysis
a. Major findings
a. Methodology
b. Conclusions b. Plan of data analysis
c. Recommendations
XIII. Results
IX. Introduction
a. Background to the XIV. Limitations and caveats
problem XV. Conclusions and recommendations
b. Statement of the problem XVI. Appendix
X. Approach to the problem a. Questionnaires and forms
b. Statistical output
c. Lists

337
 SESSION –52
Types of Report - Technical Report & Popular
Report
 Types of Research Report I

• Any research report contains:

– descriptions on methodology,
– results obtained,
– and recommendations made.
• The basic orientation of a research report depends on
its audience. Before writing the report
– the researcher must know his or her audience;
– he/she may have to make assumptions about the
composition, background and interests of the target
readers.
339
 Types of Research Report II

• Two types of reports:-

– Technical Report: suitable for a target audience of
• researchers, research managers or other people familiar with
and interested in the technicalities such as research design,
sampling methods, statistical details etc.,
– Popular Report: suitable for:
• a more general audience, interested mainly in the research
findings as it is non-technical in nature.
– The writing style is designed to facilitate easy and
rapid reading and understanding of the research
findings and recommendations.
340
REPORT PREPARATION AND PRESENTATION PROCESS

Problem Definition, Data Pre-report

Research Design Analysis
and Methodology Writing
Activities

Interpretation of
Research
findings

Report
Report
Preparation Writing
Activities

Oral
Presentattion

Post
RESEARCH Reading of the
FOLLOW-UP Report by the Report
client Writing

341
 The first step in the process involves..

• the interpretation of the results of data analysis in

light of:
– the marketing research problem investigated,
– and the research design and methodology followed.
• The research report is a means of communication
that can be understood, believed, trusted by
everyone who are likely to be affected by the
research, and acted upon by the decision maker.

342
 Before writing the report…

• the researcher should discuss: the major findings,

conclusions, and recommendations with the key
decision makers.
– necessary to ensure that the report meets the client's
needs and is ultimately accepted.
• The entire marketing research project:
– should be summarized in a single written report or in
several reports addressed to different readers.
– should present the findings in such a way that they can
be used directly as input into decision making.
343
 Oral Presentation

• Generally, an oral presentation supplements

the written report.
• The client should be given adequate time to
read the report.
– If necessary, the researcher should assist the
client in understanding the report,
implementing the findings, undertaking further
research, and evaluating the research process
in retrospect.
344
 Report Format

• No universally accepted standard format or style for

research writing. Different researchers may prepare
their reports differently.
– The personality, background, expertise, and responsibility
of the researcher and those of the decision maker for
whom the report is written interact to give each report a
unique character.
– Report formats are likely to vary with the nature of the
project itself. However, the research report closely
resembles the steps of the marketing research process.

345
 The results...

• may be presented in several chapters of the report.

– For example, a Malaysian researcher conducting a
national survey, may perform the data analysis in
two stages.
• First, he or she may analyze the overall national
sample followed by nine separate analysis for each
of the states.
• The results may then be presented in ten chapters [
one overall plus nine state based] instead of one.

346
 SESSION –53
Mechanics of Writing a Research Report
 Report Writing I
• Effective report writing is an art.
• Some basic points to note in writing a report.
– Readers: The report should take into account the level of
readers' technical sophistication, their interest in the project,
ability to understand as well as the circumstances under which
they will read the report and how they will use it..
– Adherence to study objectives: A research report must show
that the research objectives have been accomplished..
– Easy to follow: The most basic characteristic of a good report is
that it is easy to follow.
• It should be well organized, logically structured, and clearly and
lucidly written. Headings and sub-headings should be used for
different topics and subtopics respectively..

348
 Report Writing II
• Objective: Report writing should always be guided by objectivity.
– Should accurately present the methodology, results, and
conclusions of the project, without slanting the findings to
conform to the expectations of management.
• Selectivity: A researcher must use his or her discretion in deciding
what should be included in the report.
• Concise: A report should be concise. Yet brevity should not be
achieved at the expense of completeness.
• Presentation: The report should be professionally done with
quality paper, good typing, and attractive binding.

349
 Report Writing III

• Visual aids: Key information presented in the text of a research report

should be reinforced with tables, graphs, pictures, maps, and other
visual devices.
• Guidelines for Tables: Statistical tables are a vital part of the report
and deserve special attention.
– Every table should have a number and brief but clear title.
– Basis or unit of measurement should be clearly stated to facilitate
understanding.
– The arrangement of the data item should emphasize the most important
aspect of the data being presented.
– If necessary, explanations, comments etc. should be provided as
footnotes.
– If the table presents secondary data, the source(s) must be cited clearly.

350
 Oral Presentation
• Should be carefully prepared keeping the audience in mind.
• A good presentation does not mean a lengthy presentation.
• Carefully selected visual aids such as graphs, tables, charts,
maps etc. help presentation.
– However, Too many visual aids, particularly statistical tables,
could often be boring and may not serve any purpose.
• During oral presentation, people may seek clarification.
– The speaker must be patient and should not show signs of anger
or frustration. He or she should be natural, establish eye contact
with the audience, and interact with them.
– Body language and descriptive gestures are also quite useful.

351
 SESSION –54
Precautions in Writing Research Report
 Precautions in Writing Research Report
• While determining the length of the report (since research reports
vary greatly in length), one should keep in view the fact that it should
be long enough to cover the subject but short enough to maintain
interest. In fact, report-writing should not be a means to learning
more and more about less and less.

• A research report should not, if this can be avoided, be dull; it should

be such as to sustain reader’s interest.

• Abstract terminology and technical jargon should be avoided in a

research report. The report should be able to convey the matter as
simply as possible. This, in other words, means that report should be
written in an objective style in simple language, avoiding expressions
such as “it seems,” “there may be” and the like.
 Precautions in Writing Research Report (Continue..)
• The layout of the report should be well thought out and must be
appropriate and in accordance with the objective of the research
problem.
• The reports should be free from grammatical mistakes and must be
prepared strictly in accordance with the techniques of composition
of report-writing such as the use of quotations, footnotes,
documentation, proper punctuation and use of abbreviations in
footnotes and the like.
• The report must present the logical analysis of the subject matter. It
must reflect a structure wherein the different pieces of analysis
relating to the research problem fit well.
• A research report should show originality and should necessarily be
an attempt to solve some intellectual problem. It must contribute to
the solution of a problem and must add to the store of knowledge
 Precautions in Writing Research Report (Continue..)
• Appendices should be enlisted in respect of all the technical data in
the report.
• Bibliography of sources consulted is a must for a good report and
must necessarily be given.
• Index is also considered an essential part of a good report and as
such must be prepared and appended at the end.
• Report must be attractive in appearance, neat and clean, whether
typed or printed.
• Calculated confidence limits must be mentioned and the various
constraints experienced in conducting the research study may also
be stated in the report.
• Objective of the study, the nature of the problem, the methods
employed and the analysis techniques adopted must all be clearly
stated in the beginning of the report in the form of introduction.
 SESSION –55
Practise Questionnaire Construction (Exercise)

Prepare a questionnaire on "Factors considered

by Students of I2IM to select telecom operator"
 SESSION –56
Likert Scale Analysis
What is Likert scale?
• It is a psychometric scale commonly involved in research that
employs questionnaires.
• It is the most widely used approach to scaling responses in
survey research.
• Likert scales are a non-comparative scaling technique and are
one-dimensional in nature.
• When responding to a Likert questionnaire item respondents
specify their level of agreement or disagreement on a
symmetric agree-disagree scale for a series of statements.
• Thus, the range captures the intensity of their feelings for a
given item, while the results of analysis of multiple items
reveals a pattern that has scaled properties of the kind Likert
identities
Five – point Likert item

Likert Scale
Difference

Likert item
•Likert item is considered symmetric or
balanced because there are equal amounts
of positive and negative positions.

•Often five ordered response levels are

used, although many psychometricians
advocate using seven or nine level, a recent
empirical study found that a 5 or 7 point
scale.
The format of a typical five-level Likert item

1. Strongly
disagree
2. Disagree
3. Neither agree
nor disagree
4. Agree
5. Strongly agree
 Example:
Q.18.Please measure the following affirmative perceptions about your library OPAC and Web OPAC use .
Codes: 1-strongly disagree, 2- disagree, 3- neutral, 4-agree, 5- strongly agree
S/N Affirmative perception statements Codes
(i) OPAC / Web OPAC was Easier to use than I expected 1 2 3 4 5

(ii) It was Fun to use 1 2 3 4 5

(iii) It was Easy to use 1 2 3 4 5
(iv) It helped me in finding the documents faster 1 2 3 4 5

(v) It is Very difficult to use 1 2 3 4 5

(vi) It is Very confusing to use 1 2 3 4 5
(vii) I found more items than expected 1 2 3 4 5
(viii) I am comfortable with simple search 1 2 3 4 5

(ix) I am comfortable complex/Advance search 1 2 3 4 5

(x) I am comfortable quick search 1 2 3 4 5
(xi) I am comfortable when using OPAC/Web OPAC 1 2 3 4 5
Q.19. Please mark your appreciation towards the use of your library OPAC/Web OPAC.

Codes: 1-strongly disagree, 2- disagree, 3- neutral, 4-agree, 5- strongly agree

S/N Parameters Codes
(i) I access OPAC/Web OPAC stand alone system 1 2 3 4 5

(ii) I access OPAC/Web OPAC library premises 1 2 3 4 5

(iii) It is easy to be familiar with this OPAC/Web OPAC 1 2 3 4 5

(iv) The OPAC/Web OPAC should have more flexible 1 2 3 4 5

interfaces

(v) Library searching will be easier and faster with the Web 1 2 3 4 5
OPAC

(vi) It is easy to read information provided in the Web OPAC 1 2 3 4 5

(vii) A OPAC/Web OPAC search by author is easy 1 2 3 4 5

(viii) A OPAC/ Web OPAC search by call number is easy 1 2 3 4 5

(ix) OPAC/ Web OPAC scanning through a long display 1 2 3 4 5

(forward or backward) is easy

(x) OPAC/ Web OPAC reducing the result when too much is 1 2 3 4 5
retrieved is easy
The format of a typical Seven-level Likert item
 Analysis Methods
Depending on how the Likert scale questions are treated a number
of different analysis methods can be applied

1. Analysis methods used for individual questions (ordinal data)

 Bar charts and dot plots
• Not histograms (data is not continuous)
 Central tendency summarised by median and mode
• Not mean
 Variability summarised by range and interquartile range
• Not standard deviation
 Analysed using non-parametric tests
(difference between the medians of comparable groups)
• Mann- whitney U test
• Wilcoxon signed –rank test
• Kruskal – wallis test
2. When multiple Likert question responses are summed
together (interval data)

 All questions must use the same Likert scale

 Must be a defendable approximation to an interval
scale (i.e. coding indicates magnitude of difference
between items but there is no absolute zero point)
 All items measure are single latent variable (i.e. a
variable that is not directly observed, but rather
inferred from other variables that are observed and
directly measured)
 Analyzed using parametric tests
• Analysis of variance (ANOVA)
3. Analysis methods used when reduced to
nominal level of agree vs. disagree

 Chi –square test

 Cochran Q test
McNemar test
Advantages
• Item analysis increases the degree of
homogeneity or internal consistency in the set of
statements.
• Subjects generally find it easy to respond because
they have a wide range of answers(usually five) to
choose from instead of only two alternative
responses, i.e., agree or disagree.
• No outside group of judges is involved in
selecting statements and giving values to them.
Limitations
• Ties in ranks occur quite frequently.
• The response pattern of an individual is not
revealed.
• A respondent is required to answer all
questions on the scale.
• A problem of interpretation arises with this
type of scale.
• In this scale all statements of a universe are
deemed to be of equal attitude value.
Conclusion
A summated rating scale is a set of attitude statements
all of which subjects respond with degrees of
agreement or disagreement carrying different scores.
These scores are summed or summed and averaged to
yield an individual’s attitude score. The objective is to
avoid the use of only a single statement to represent a
concept and instead to use several statement as
indicators, all representing different facets of the
concept to obtain a more well rounded perspective.