Collection of Primary Data WN ot 1. Observation 2, Methods of Observation 3. Questionnaire 4, Designing a Questionnaire 5. Choice of Survey Method ‘As was mentioned in the preceding chapter, the marketing researcher should, firs secondary data from various sources and examine the possibility of their use for] cases, he may find the data inadequate or unusable and therefore, he may realize the n first-hand data. As in the case of everyday life, if we want to have first-hand. information or event, we either ask someone who knows about it or we observe it ourselves, same is applicable to marketing research. Thus, the two main methods by whi collected are observation and communication. This chapter is devoted to these OBSERVATION Observation is one of the methods of collecting data. It is used to get both For example, instead of asking respondents about their current behaviour, our observations. Although it is not possible to observe past behaviour, such behaviour. In a way, secondary data reflect the results of the Past occurrences. “In marketing research, the observational method is not use ecially in marketing experimentation, a brief discussion is j - outset, let us go through a few examples indicat ‘Stanad with CamScomerMarketing Research product is out of stock. Likewise, sales are also influenced b A prominently displayed product will receive greater attention of th e against another product displayed in an obscure corner. Here, too, a from observers what sort of display his product is getting in selected stores and with w © In order to ascertain what pri harged by competitors, a manufacturer may observers to go round the stores. : Today, certain mechanical devices are used for observation, for example, the eye-ca pupilometric camera and the motion-picture camera. A device known as the audiometer is to radio sets for recording automatically the station to which the radio-set is tuned. supposed to give an idea of the size of audience for a particular programme. Similarly, of audience watching a particular television programme can be ascertained through n devices, which enable the manufacturer, who has sponsored that programme, analyse Wh has been viewed by a sizeable number or not. Furthermore, he can ascertain the reaction of who actually viewed the programme by interviewing a sample of them. Thus, the obser method in conjunction with interviewing the respondents provides very useful informati direct observational technique enables a researcher/to record behaviour as it occurs. In cont techniques record the data mostly retrospectively on the basis of the respondent's report after th Another merit of direct observation is that it can be used regardless of whether the resp ondent is¥ to report or not. Ina field survey, ifan enumerator comes across an unwilling and hostile respont cannot collect the desired information. But, this problem does not arise at all in the case o observation. Yet another advantage of observation is that it can be used even when it s who are unable to respond such as infants and animals. 3 There are, however, some ations of this method. Firstly, only the current beh ora group of persons can be observed. One is unable to observe the past behaviour nor can one Obs @ person’s future behaviour because the act of observation takes place in the present. Set observation does not help us in gauging a person’s attitude or opinion on a certain subjec knowledge‘of the ‘same. Thirdly, the observational method is very slow and as such, wh number of persons are to be contacted, it becomes unsuitable because of the long time req purpose. “Apart from these inherent limitations of observation, there are certain difficulties too. Difficulties in Observation’ difficulties arise on account of (i) inadequacies of our sense organs, (ii) interdependence « and inference, and (iii) effects of interaction between the observer and the observed. _ The first set of difficulties arises on account of inadequacies of our sense-or; a highly variable, erratic and selective manner.” Several studies, conducted by the perception of a man depends on several factors such as his freshness, i ‘Scamad with CanScamerinterruption. The more favourable the conditions, the n impressions. Further, objects that are large or clear and sot attention of the person. etl ‘Other difficulties arise on account of the interdependence of obs All perception, after the first weeks of life, is compounded of th stored experience. Anything that impinges on our senses conveys a mi that we relate it to what we already know, Observation and inference are in This means that whatever an observer sees he tries to explain or interpret experience. Thus, the observer inference problem is the main difficulty inas draw wrong inferences from observations.* The third set of difficulties crops up because of the effects of interaction observed. This may have two distinct dangers. First, persons being observed may b of the observation and this may influence their normal behaviour. Second, obs: merely because one more person—the observer—is present and people are consci METHODS OF OBSERVATION There are several methods of observation of which any one or a combination Of used by the observer. Thus, there are structured or unstructured methods; dis methods, or observations made in a natural setting or laboratory setting, direct human-mechanical observation. These are briefly discussed below. Structured-unstructured Observation aa / Structured observation is used when the research problem has been formulated precis have been told specifically what is to be observed. They may be given a simple fort observations. Unstructured observation implies that observers are free to: ve W is relevant and important. While structured observations are free from s observations are subject to this limitatio is unstructured. Disguised-undisguised Observation In the case of disguised observation, the subjects do not know that cases, disguised observation may be made by the observer being observed. This type of observation is often pre when they know they are being observ though this apart, it poses an in the dark. i ‘Stanad with CamScomer‘Another way to classify observations is on the basis of their setting, i in field studies are in their natural setting and are, therefore, undertaken in ext Sometimes, an experimental manipulation may be introduced ina field study. Obser setting, on the other hand, enables the observer to control extraneous variables v behaviour of people. Observational studies in laboratory settings have ji studies. They enable the collection of data promptly and economically and in of more objective measurements. Direct-indirect Observation In the case of direct observation, the event or the behaviour of a person is observed as ito indirect observation implies that some record of past behaviour is observed. In other i the behaviour itself is not observed, rather its effects are observed. An observer engaged in ind observation generally looks for physical traces of behaviour or occurrence of an event. Suppose, h interested in knowing about the liquor consumption of a household, he would like for empty Ii bottles in the garbage. Similarly, the observer may seek the permission of the housewife to see pantry. He may carry out a pantry audit to ascertain the consumption of certain types of products. be noted that the success of an indirect observation largely depends on how best the observer is al identify physical traces of the problem under study. Direct observation is farmore common than observation. contrast, /Human-mechanical Observation ‘Another way of classifying observations is whether they are made manually or by machines. the studies in marketing research based on human observation wherein trained observers are to observe and faithfully record their observations. In some cases, mechanical devices such as cameras and audiometers are used for observation. One of the major advantages of electrical devices is that their recordings are free from subjective bias. As against this advantage, such obsen This is because the observer’s power of int may be less valid than human observations. lead to a more valid evaluation of the observation. ca QUESTIONNAIRE The communication method, in effect, is the method of designing questionnaires with av the requisite information. The questionnaires can be classified into four main ; non-disguised, (ii) structured-disguised, (iii) non-structured-non-disguised, disguised. It may be mentioned here that some authors prefer to call the “non-disguised ee as indirect questionnaires. structured questionnaire is a formal list of questions framed so as to get the f ‘asks the questions strictly in accordance with a pre-arranged order. If, f researcher is interested in knowing the amount of expenditure incurred on d ‘Scamad with CanScamer> je. cotton, woollen or synthetic, by different households classified accor ea set of questions seeking this factual information. If the marketing ~ interviewers to collect information on his behalf, the interviewers are exp i order in asking questions as contained in the questionnaire. im ‘A structured questionnaire can be of two types, namely, disguised and non- classification is based on whether the object or purpose of the survey is revealed or undisclo respondent{ Thus, a structured-non-disguised questionnaire is one where the listing of in a prearranged order and where the object of enquiry is revealed to the respondent. Most n research studies use this type of suecionnayita the case of a structured-disguised que: the researcher does not disclose the object of the survey. He feels that if the respondent comes to knc the object of the survey, he may not be objective in’ giving the necessary information and, as such, purpose may be defeated. He is, therefore, very particular not to divulge the purpose of the investigation.) It may be mentioned that in a large majority of cases, it is felt that the respondent should be into confidence and clearly told why the survey is being undertaken, so that he would realise its rele and give the desired information accurately. Questionnaires of this type are known as structut non-disguised questionnaires. It may be pointed out that most of the surveys for marketing research use this type of questionnaire at A non-structured questionnaire is one in which the questions are not structured and the order in which they are to be asked from the respondent is left entirely to the researcher. He asks the questions in the manner in which he deems fit in a particular situation. In fact, he may only have certain points on which he may develop the questions at the time of the actual interview. As it will be seen, a non-structured questionnaire is devoid of rigidity and allows considerable freedom to the researcher is choosing the order as well as the specific content of questions. Normally, unstructured questionnaii are used in exploratory research when some respondents are contacted. It is only subsequently, on th basis of answers received, that a well-structured questionnaire is developed. This is vec los interviewer has a better understanding of the problem on hand only after the exploratory researe Questionnaires of this type can be split into two sub-types. Where the purpose of the enquiry is disel to the respondents, the questionnaires are known as non-structured anid non-disguised while cases, the questionnaires are classified as non-structured and disguised questionnaires. Letus briefly discuss the relative strengths and weaknesses of the different types of questi The structured-non-disguised questionnaire has several advantages. Firstly, it facilit Collection of information in a systematic and orderly manner as the questions have been fo advance. Secondly, since the questions asked by each interviewer happen to be identical an in the same order, the information is generally not vitiated on account of the varying ch the different interviewers. Third, a structured questionnaire calls for a straightfon approach on the part of interviewers. As such, even less qualified interviewers can canvassing such a questionnaire. Fourth, such a questionnaire makes it far easier to edi interpret the data it contains. Finally, a structured questionnaire can be Pre-tested so that suitable modifications can be made in the phraseology of questions or As against these advantages of a structured questionnaire, it suffers from a when the respondent is asked questions concerning personal or motiva the structured—non-disguised questionnaire is n earlier. ‘Scamad with CanScamer“is free to ask probing questions to get at the key motivati type are normally used in depth interviews—a subject to whi questionnaires facilitate the conducting of interviews in an in! to the whole process of interviewing. A point worth emphasisingtis questionnaires, the role of the interviewer becomes far more important a structured questionnaire is used. In view of this, more capable interviewers which raises the cost of the survey. Also, the interviewer needs more unstructured. This also enhances the overall cost of the field survey. Finally, the res while editing and tabulating an unstructured questionnaire. Having discussed the relative strengths and weaknesses of the stru questionnaires, we now turn to the designing of structured questionnaires. | DESIGNING A QUESTIONNAIRE Designing a questionnaire is not as simple a job as it looks at first sight. A marketing res to collect primary data has to be extremely careful in deciding what information is to be many questions are to be formulated, what should be their sequence, what should be €@ch question, and what should be the layout of the questionnaire. All these aspects n time and effort of the marketing researcher. If he is able to develop a questionnaire suite investigation, he will find that his task of collecting the data has become much easier Type of Information fo be Collected While attempting to design a questionnaire, the marketing researcher has to first of information he needs from the survey. He should seriously consider this q considerable repercussion on the usefulness of the survey. For, if he omits to. co time, if he collects information on some issues not directly relevant to his study, total cost of the survey but also increases the time factor. This being the case, the more time than is really necessary. It will also lead to greater inaccuracy as answer many more questions than are strictly necessary and he will, therefc in giving the exact answer. In either case, the marketing researcher Wil situation, he should give serious thought to the specific information to facilitate him if he looks ahead to the analysis stage so that he could en Rabiation as also the statistical methods that are to be used. x # -Crisp* has very lucidly explained the different types of informal ig research, The information could be one or more or eae of information (iv) opi ‘Scamad with CanScamerCollection of Primary Data Factual information is perhaps sought most frequently in marketing question—Do you own a car? is intended to seek such factual informatior d information collected belongs to the second category, namely, quasi facts. Thi information feceived from respondents is not factually corrected tional it may appear ti question in continuation of the earlier one about the ownership of a car, couid be—if'ves buy the car? Here, the respondent may not remember onthe spur 6f the moment, the ‘pought the car. Apart from this, the inaccuracy may originate on account of the desire on the part of respondent to leave a favourable impression on the interviewer. Thus, for example, if a responder asked—Do you eat fruit everyday?, he may say ‘yes’ even when he does not, simply because he \ ‘| to impress Upon the interviewer that he belongs to a well-to-do family and can afford to spend money on fruit on a daily basis. a Regarding factual information, the interviewer has to ensure that the information sought is available with the respondent and that he is willing to part with it. Questioning respondents about the distant past ~ is not good as they will not be able to give an accurate answer. Another point worth nofing'is that the interviewer should ensure that the respondent has understood his question correctly and that he in turn has understood the respondent’s answer correctly. This will avoid miscommunication. it The third category of information sought relates tofawareness| Sometimes, the marketing researcher is interested to know whether the respondent is aware of the existence of a certain product or brand. Such information is particularly sought by a firm soon after it has launched an advertising campaign, to enable it to know if advertising has contributed to the awareness of the respondent. Besides siden determining the increase in penetration could be sought through marketing research. For example, the firm may take up a second study subsequently, more or less on the same lines as its first study, to ascertain how much increase in the penetration has taken place between the two dates. 1 Information is ofien sought on the opinion of the respondent. He is specifically asked, What view he holds ona particular subject? and he is free to opine. Similarly, information on the respondent's attitud ‘on one or more subjects or things is sought. The distinction betieentanhtuday and ‘opinion’ is not very clear “A commonly drawn distinction has been to view an ‘attitude’ as a predisposition to act in a certain way and an ‘opinion’ as a verbalisation of the attitude. However, the distinction between the : two terms gets blurred when the terms are used to predict what the respondent will do. In view of this, some authors have used the terms ‘attitude’ and ‘opinion’ interchangeably. aaa ‘The question on opinion poses some difficulties for the researcher. To begin with, when an: an opinion question is received from the respondent, the researcher is not sure whether the re: is well informed about the subject on which his opinion has been sought. A respondent opinion without knowing the subject at all. This is obviously a great disadvantage and it is di the researcher to verify. Another difficulty is to ascertain the intensity of an opinion, taken care of by suitably phrasing the specific question. We shall revert to this a little later. _ difficulty is that as opinions are many-sided, the same respondent will give different fferent aspects such as social, legal, moral, economic, etc. It will not be evident which viewpoint the respondent has taken. Attitudes are very important as they giv the past, or the likely future behaviour of the respondents. Studies on consumer beh: only when information on attitude is adequately available. Chapter 8 is dev ‘Sealing while chapter 9 is on Attitude Scales. —S ‘Scamad with CanScamer‘Occasionally, the marketing researcher wants to know what at in regard to acertain thing. For example, he may be asked whether he six months, Such an information is normally a statement of intenti Know whether it will be implemented or not. Any information collected un used with great caution otherwise one is likely to arrive at asthe Finally, the marketing researcher at times wants to know Y of the respondent. For example, the respondent owning a car, may be make. He is expected to give one or more reasons in support of his choice: apprehension that the respondent may not come out with genuine reasons. Tt must be emphasised again that the marketing researcher should be clear about the information to be collected. The above classification of the requisite information will facilitate | phrasing the questions in the right form. Viypes of Questions igning of a questionnaire is to decide which types of q din various ways. One way of classification is as fo The second important aspect in the de: are to be used. Questions can be cla * Open-ended questions Dichotomous questions 5% © Multiple-choice questions. ‘An open-ended. or simply ‘open’ or “free answer’ question gives the respondent complete to decide the form, length and detail of the answer. Open questions are preferred whien the: interested in knowing what is uppermost in the mind of the respondent. However, open q certain problems. At the time of the actual interview, it becomes difficult for the interviewer fom down the respondent’s answer verbatim. If the interviewer has to take down the answer alll by hi without any mechanical aid, he is quite likely to miss some vital information contained in the answer. Further, if several interviewers are conducting interviews and each one is recording the to opinion questions according to his understanding, and in his own way, then there is likely tot element of bias in the recorded answers. Another difficulty in respect of open questions is that extremely difficult to compress lengthy answers in a meaningful manner, Such answers may B qualitatively but their quantification becomes extremely difficult, if not impossible, The question has only two answers in the form ‘yes’ or ‘no’, “true” or ‘false’, “use? or “do example of a dichotomous question is: Do you use tobacco in any way? Peemeeetb sig 1K Ue No. i a There cannot be a third answer. However, in some cases, there may be a third ans) come from those who do not want to take a definite stand one way or the other. For following question: ee Do you like to watch movies? Yes Neither like nor dislike ird alternative may be included so as to provide for those \ce or aversion to movies. ‘Scamad with CanScamerCollection of Primary Data It may be pointed out that dichotomous respondents, who have simply to indicate the: questions require the minimum possible time easy to edit, tabulate and interpret, Inthe case of multiple-choice questions, the respondent is offered two or more choices, The mé researcher exhausts all the possible choices and the respondent has to indicate which one is applicable imhis ease. For example, the following is a multiple-choice question: a questions are most convenient or leas it choice from the two possible answers. of the respondents, Also, answers to such questions ar Dit by: ee Which of the following brand/brands do you u: washing clothes? Rin Det » 501 Blur Bar ___, Super 777 Bar ‘Wheel » Bonus __, Swastic_____, Any other (please specify) Obviously, the respondent is likely to take more time to answer a multiple-choice question as compared toa dichotomous one. Also, more time is required in the editing, tabulation and interpretation of data. \. Phrasing of the Questions The next issue in the preparation of a questionnaire is how to phrase the questions. The way in which a question is drafted is very important as a slightly suggestive wording would elicit a very different answer from the respondent. Consider, for example, the following question: Don’t you think that this is a sub-standard product? ‘A question of this type would prompt respondents to answer in the affirmative. Many of them, who do not have a definite opinion about the product, are likely to agree that it is of sub-standard quality. However, if the above question is worded a little differently, the answer is likely to be different. Suppose this question is put as follows: Do you think that this is a sub-standard product? A question of this type is not a suggestive question. It is a straight forward question and respondents are not likely to be prompted to say ‘yes’ as was the case in the earlier question. Itwill be interesting to know that alittle difference in wording makes a good deal of difference in the answers. Payne’ cites an example in this regard. He gives the following three questions and the related affirmative responses: Question 1. Do you think anything should be done to make it easier for people to pay doctor’s or hospital bills? 2. Do you think anything could be done to make it easier for people to pay doctor’s or hospital bills? 3. Do you think anything might be done to make it easier for people to Pay doctor’s or hospital bills? These questions were put to three matched samples of respondents —one only difference was in the use of the words ‘should’, ‘could’, and ‘might changed the percentage of affirmative responses by as much as 19 per cent, the phrasing of questions has to be done with great care so that there Poy, SaneyL, The Ar of Asking Questions, Pinston N.} ‘Scamad with CanScamer112 Marketing Research In order to ensure the appropriate phrasing questions, one should be particular about the following: factors: which 1. Difficult words should be avoided as far as possible. Likewise, technical or special terms an average respondent may not understand, should be excluded, 2. Vague words such as ‘many’, ‘often’, ‘generally’, ‘on the whole’ and reasonably’, should not be used. 3. Lengthy questions should be avoided. Too much verbosity makes questions Tengthy, ands likely to confuse the respondent. the, question—Which of the | One should avoid combining two questions into one, For example, following modes of transport is cheaper and more convenient? (i) Train (it) Bus Tt is quite likely that according to the respondent both the attributes, namely cheapness and convenience may not be applicable to either of the two modes of transport. One may be cheaper <4 while the other may be more convenient. 5. Questions lacking specificity should be avoided or modified suitably so that they become more precise. For example, the question—Are you satisfied with your job?—is not sufficiently specific because it does not provide the necessary frame of reference to the respondent. One may be satisfied, say, from the viewpoint of emoluments but one may not be satisfied with the type or nature of one’s work. These are two distinct aspects which perhaps cannot be taken care of by s one question. 4 Order of Questions 4 f of the researcher is the sequence or order of questions ing, the researcher has to establish some rapport sary that questions asked at the beginning are simple and thereby hel sort, Difficult questions or those on sensitive issues should be relegated tol et, questions of a general type should be asked in the beginning jepth information from the respondents, should beTef the attention Another aspect that should receive to be contained in a questionnair with the respondent, it | in establishing the rapj end of the questionnaire. Furth those which are specialised, needing some in~ the end. i However, care shoul: to answer specialised question: is very lengthy, two or three sets of the same can changed by a scheme of rotation for the sampled units. In such a case, the specialised questions towards the middle of the questionnaire’ inst Since, in the beginnii id be taken to sustain the interest of the respondent until the last so that he s in a normal manner without fatigue and indifference. Ifthe questi be printed where the order of questions can some respondents wot ead of towards its end. How many Questions fo be Asked? The researcher has also to decide how many questions are to be asked. We may add that th questions is not so important as the actual length of the questionnaire. We have just enti that the researcher has to sustain the interest of the respondent until the last moment so ‘can be completed succéssfully and the requisite information ‘obtained. Too Ie would obviously be a disadvantage and the response to it may be quite poor. ile deciding on the number of questions or the length of the questi the respondent’s shoes and imagine how he would reac ‘Scamad with CanScamerThis spies that the document should be set in such a way that it leaves a Rao respondent. It should be neatly printed and the individual pages should not have too n ‘as to appear crowded. Proper spacing between the questions and within a question for. The more important wordings to which the researcher would like to drat e respondent, should be set in bold types or underlined. If itis really a lengthy question should be taken to reduce its size by providing two columns in a page and by using fink ia can be done up to a certain point for too fine a print may cause inconvenience to th questionnaire should have ‘easy looks’ which means that it should be short and p quality paper so that writing with pen or pencil is smooth. ‘Stanad with CamScomerSecondary Data 1. Secondary Data 2, Evaluating Secondary Data 3. Sources of Secondary Data After the research problem in marketing has been identified and selected, the next. requisite data. At this stage, there is much temptation among the researchers to 0 to collect the data. While a field survey may be necessary for data collection, it only when all other sources of data collection have been exhausted. As some author “A good operating rule is to consider a survey akin to a surgery to be used only after all have been exhausted.”' _SECONDARY DATA ‘Any data which have been gathered earlier for some other purpose are the marketing researcher. In contrast, those data which are collected at researcher or by someone else especially for the purpose of the study are known ted by one person may become the secondary data for ano collected every ten years are the primary data with India, but the same statistics used by anyone else would be secondary data with are certain distinct advantages, as also the limitations, of using secondary data. should be fully aware of both the advantages and limitations. 5 Kgs ‘or advantage in the use of secondary data is that itis f ing original data is saved. In the collection of } Fs ‘Stanad with CamScomerforms are to be designed and printed, field the data have been collected, their travelling expenses a sample design is to be selected, data are to be collected and verified for tt finally, all such data are to be tabulated. All these activities would need large be utilised elsewhere if secondary data alone can serve the purpose. Another advantage is that the use of secondary data saves much of the time of the resea This leads to prompt completion of the research project. Search for secondary data is helpful, not only because secondary data may be us because familiarity with such data indicates the deficiencies and gaps. As a result, the res can make his primary data collection more specific and more relevant to his study. As the researcher explores the availability of secondary data relevant to his project, he finds, the process, that his understanding of the problem has improved. He may even have to chi some of his earlier ideas in the light of the secondary data Finally, secondary data can be used as a basis for comparison with the primary data that th researcher has just collected ~ of Secondary Data In practice, one finds that secondary data seldom fit perfectly into the framework of marke research. This is on account of a number of factors. © Theunit in which secondary data are expressed may not be the same as is required in the resea project. For example, the size of firm can be expressed as (i) number of employees, (ii) pai capital employed, (iii) gross sales, (iv) gross or net profit, ete. It is just possible that the measurement used in secondary data is different from the one needed in the research project. that case, secondary data cannot be used. ; Even if the units are the same as those required by the research project, it may just be the that class boundaries are different from those desired. For example, the monthly i households may have a break-up of (i) less than Rs 500, (ii) Rs 501-1000, (iii) Rs 1001-1 (iv) Rs 1501-2000, and (v) Rs 2001+ so far as secondary data are concerned, If the: ‘wants to find, for example, the number of households with a monthly income of Rs 18 some similar figure, he will be at a loss with such secondary data, id One does not always know how accurate the secondary data are. In case the deg inaccuracy is high, the use of such dubious data would undermine the utility ofa In most cases, it is difficult to know with what care secondary data have been tabulated, All the same, in the case of well-established and reputed organisations and non-official, secondary data would be far more accurate and reliable and th ‘without much reservation. a te ‘Scamad with CanScamerweve pe EVALUATING SECONDARY DATA so: nly aa Since the use of secondary data is substantially cheaper than that of primary data, it explore the possibility of using secondary data. In this connection, there are four requ must be met. These are—(i) Availability of secondary data, (ii) Relevance, (iii) Accuracy, a Sufficiency. These requirements are briefly discussed here. © The first and foremost requirement is that secondary data must be available for use. At one may find that secondary data are just not available on a problem at hand. In such cases is no alternative but to take recourse to the collection of j pI Another pre-condition for the use of ‘secondary data is th levance to the marketing Relevance means that the data available must fit the requirements of that problem. This would cover several aspects. First, the unit of measurement should be the same as that in the marketing problem. Second, the concepts used should be the same as are envisaged in the problem. For example, social class, income, employment should have the same definitions. Another pertinent issue is that the data should not be obsolete. Generally, any secondary data would have _ been collected sometime in the past, but they should not be so remote as to make them useless. _ The third requirement is that the data should be accurate. In this connection, one should consult the original source. This would not only enable the researcher to get more comprehensive information but would also indicate the context in which data have been collected, the procedure followed and the extent of care exercised in their collection. $ Finally, the data should be sufficient. If the data are inadequate, then compliance with the preceding a requirements will be in vain The foregoing requirements must be met to avoid an improper use of secondary data. One may go into more specific details. It may be emphasised that the use of secondary data by the marketing researcher imposes an implicit responsibility on him that he has satisfied himself as to their accuracy and reliability. In view of this, he has to be extremely careful when deciding to use any secondary data. To help him take a decision, he has to seek answers to such questions as—What sample design was used for colle data? What questionnaire was used? What was the quality of the field staff which collected the data’ What was the extent of non-responses and how was the problem handled by the organisation? TI are some of the questions which are pertinent while deciding the reliability of secondary information on some of these questions is not readily available, the researcher may have to some time to get it. In the final analysis, it is the reputation of the organisation collecting and such data, and its regularity in their publication, that would carry more weight than an Robert W. Joselyn” suggests a detailed approach for evaluating secondary data a their potential limitations. The approach comprises eight steps as shown in Fig. 6.1. The eight steps are grouped into three categories, namely (i) applicability to t (ii) cost of acquisition, and (iii) accuracy of the data. Under each of these cat questions are sought. Thus, some of the basic questions are—Do Population of interest? Do they apply to the time period of interest? Can the Presented apply? If answers to these and similar other questions are in Samcad why ‘Scamad with CanScamerInternal Salesforce Miscellaneous _ Internal experts, ‘Accounting records reports, evore Non-government Government Publications publications 5 1 { | Regular publications Ad hoc Industry and Universities such as census data, publication trade annual reports of such as associations: ministries, journals such enquiry reports pes as R.B1I. Bulletin ‘Consumer research services Fig, 6.2 Sources of Secondary Data SOURCES OF SECONDARY DATA Secondary data can be obtained internally, i.e. within the firm; or externally, i.e. from one or more outside agencies. Fig 6.2 shows various sources of data. We first discuss internal sources. mi Internal Sources of Secondary Data a good source. Normally, a sales ‘customer, items ordered, quantities ordered, quant Tt often contains information on s “otal amount of sales and the date of sal Eeeaat and warehouse from which the product ‘extremely useful in undertaking 9 dele gala . ic area, sales territory and sales representative it can indicate the level of profits (or loss) for ‘Scamad with CanScamer© Another internal source is in the form of sales force rts. This source can provide a very useful marketing information but somehait Fas remained largely untapped. This is becaus® sales persons may not be giving detailed reports. In order to ensure that this source is more useful, it is necessary to organise the system properly. It should be a simple process of reporting the information. Sales persons may be encouraged to provide accurate and comprehensive information, Some incentive may be given to those who report accurately and adequately. © Another source’of internal data is in the form of miscellaneous reports. Any studies done earlier on marketing problems of the company, special audit, etc. come in this category. Such reports on varying subjects should be properly maintained and easily accessible when required. , Finally, experts working in the company can also be a good source of internal data. Executives working as product managers, marketing research managers, public relations personnel and advertising personnel have specialised knowledge relevant to marketing problems. However, this source is least tapped. A limitation of this source is that information is in the expert's mind and not on paper. The experts can provide useful information or ideas on a given marketing ‘problem whenever a serious discussion is held in a meeting. External Sources of Secondary Deta The external secondary data do not originate in the firm and are obtained from outside sources. It may be noted that secondary data can be collected from the originating sources or from secondary sources. For example, the Office of the Economic Adviser, Government of India, is the “originating source for the data on wholesale prices. In contrast, a publication such as the Reserve Bank of India Bulletin containing some parts of the series of wholesale prices, is a secondary source. Generally, the originating source of external secondary data should be preferred on account of several reasons.’ First, the originating source is more likely to explain the object and procedure of data collection. Second, the originating source is more likely to present all the data,Avhereas a secondary source may presenta part of such data,tlepending on its requirement or convenience, Finally, the originating source would be iiiore accurate fs each additional repeating source of secondary data presents another possible source of error. Ce Despite these advantages of using the originating source of secondary data, many a time secondary sources of secondary data are used. There may be good reasons* for this. First, the secondary source may be(readily available\to the researcher and, as such, it is Convenient to use it if the data sufficiently reliable. At times, he may have to refer to different originating publications and s through numerous pages. The likely improvement in the quality of secondary data may commensurate with the time and effort required for using the originating source. Second, so secondary sources provide secondary data on punched cards or magnetic tape for computer i result of this facility, the researcher may prefer the secondary source, As we are mainly interested in the external sources, the following discussion is agencies which publish data. ‘Scamad with CanScamerGovernment Publications ‘A large bulk of secondary data useful to_a marketing research i _— eS To ave Spe USER er is found in variot iblica © give an idea of the nature of data contaii iodici c Prhof the government publications would be ie ‘ained, periodicity and concepts use not necessary to be exhaustive as this work does stretching the scope of this textbook. Moreoy eases & 's not solely concern Indian statistics. As such, the following discussion provides only som: | reece 'y Some general idea of the nature of data provided by the major oo begin with, the Registrar General of India conducts a population census throughout the country every ten years and brings out demographic data in voluminous reports. These publications provide pethaps the most basic source of information useful to the marketing researcher. The data relate to various characteristics such as the break-up of population by sex, rural urban residenee, age, education and occupation. While it is true that these statistics are available only decennially, they are the most authentic and are often used as the basis for projection for future years. The Central Statistical Organisation (CSO) brings out statistics of national income. Its major publication, “Nati ‘ounts Statistics’, is brought out once a year and contains estimates of national income for several years. The figures are given separately for major economic activities such as agriculture, industry, trade, transport, etc. Besides this, the estimates of saving, capital formation and consumption expenditure, together with national and public sector accounts are given. The CSO also brings out the Statistical Abstract, India, which is an annual publication. It contains all India statistics for various sectors of the economy for a number of years, usually five. As regards industrial statistics, the CSO publishes detailed data on the performance of the industrial sector in its annual publication ‘Annual Survey of Industries.” The data are given on a very comprehensive basis and relate to the number of units in a particular industry, workers and non-workers employed, productive capital employed and its break-up by major categories, number of man-hours worked, total production and its break-up by important product-types, both in physical units and values, expenditure incurred on materials, electricity consumed, and finally, the value-added by ‘manufacture, shown separately as that part which is paid to workers as wages and that which returns to the industry. ‘ The CSO also brings out the Monthly Production of Selected Industries of India, These statisties are on output, and index numbers. y The Die 1: General of Commercial Intelligence, Government of India, brings out from Calcutta, monthly statistics of the foreign trade of India. The statistics are contained in two separate volumes ‘one for the export trade and the other for the import trade. These statistics are compiled on a comprehensive basis, covering a very large number of products and are extremely useful undertaking regionwise, countrywise or productwise studies on the prospects of nie also provide historical data over a long period, thus enabling the researchers to study the ¢ composition of India’s foreign trade over a chosen period. As regards price statistics, there are some index numbers compiled and ine government agencies. Thus, the Wholesale Price Index numbers are construc Economic Adviser, Ministry of Commerce and Industry, Government of In revised from time to time so as to make it representative ofall t 1993-94 as the base year, The products covered are food articles ‘minerals, fuel, power, light and lubricants, various manufactured ‘metal, machinery and transport equipment. Apart from the wh ‘Scamad with CanScamerIndia publishes the All-India. Consumer Price Index numbers for (a) industrial workers, (6) ¥*>am non-manual employees, and (c) agricultural labourers. Some other official publications include the (i) Basic Statistics Relating to the Indian Economy, which is an annual publication of the Planning Commission. It contains data on various aspects of the economy for several years, (ii) Reserve Bank of India Bulletin, which is a monthly journal dealing with all aspects of the economy in general, and currency and finance in particular, (iii) Currency and Finance Report, which is an annual publication brought out by the Reserve Bank of India. Although the main focus is on currency and finance, it contains statistics on almost all major aspects of the economy, (iv) The Economic Survey, which is an annual publication of the Department of Economic Affairs, Ministry of Finance, Government of India. It is published on the eve of the presentation of the national budget and contains a detailed review of the different sectors of the economy. Detailed statistics are also given in the publication, (v) Agricultural Situation in India, which is a monthly journal of the Directorate of Economics and Statistics of the Ministry of Agriculture, Government of India. It contains current statistics and articles on the assessment of the agricultural situation in the country and the states, (vi) The Indian Labour Journal, which is a monthly journal of the Labour Bureau, publishes statistics on price indices, employment, wages and earnings, absenteeism, ete. (vii) The Indian Labour Year Book, which is an annual publication, contains detailed statistics on wages and earnings, cost of living, industrial relations, labour welfare and industrial housing, (viii) State Statistical Abstracts and District Statistical Handbooks, which are published by various State Statistical Bureaux, publish statistical abstracts for their states on the lines of the Statistical Abstract of India, though the scope of the data covered varies from state to state. Another important source is the National Sample Survey (NSS), which was set up by the Government of India in the Ministry of Planning in 1950. The objective of setting up this organisation was to obtain social, economic, demographic, industrial and agricultural statistics on a comprehensive and continuing basis. The NSS has been conducting multi-purpose socio-economic surveys in the form: of rounds. A number of rounds have been completed by the NSS. The programme for each round is decided by the NSS in collaboration with the concerned ministries and state governments. A complete list of the nature of information collected in various rounds along with the code numbers is given at the end of each report to facilitate the reader in referring to a particular report in which he is interested. Apart from the regular rounds, the NSS has conducted ad hoc surveys in collaboration with the concerned central ministries. 7 Non-government Publications Here, we give only broad idea of non-government publications. We start with three major publications that provide a wide variety of marketing information. “a One major source of marketing information is the National Council of Applied Economic Res (NCAER), which is a premier research institution in applied economics in India. The NCAER studies are “The Great Indian Market” (2005) and the Great Indian Middle (2004). GIM is based on NCAER’s all-India survey of 300,000 households across 515 cities i districts conducted annually since 1986 (excepting for 3 years), : The GIM gives information on consumer purchasing patterns and product preferences ‘ Who owns what, where and why? aa ‘© What products are consumers buying? youd ‘Scamad with CanScamer‘ What does the future hold for your market? m oy are preferences likely to change in urban and rural areas by 20107 Where can you source the most recent information on products after cendus 2001? aoe ae thal reutes in GIM. It gives useful eross-matrix, a value-added feature that correlates households ownership of various goods with other inter-linked products. Another feature i the detailed break-up on a wide range of products, 4 oe NCAER’s main strength lies in its capabili i : i i eal dt, is objective analysis and interpretation ee anna nnshol SUMS EERE : Another important source of marketing is the Marketing Whitebook published by Business World. Since 2004 the Marketing whitebook is published each year, the latest one being for 2006. The publication covers a wide variety of marketing data under eight different sections, each of which contains the latest data relating to that section. For example, data on consumer psychographics, emerging consumer markets, product penetration in Indian households, emergence of rural markets, etc. are given in relevant sections. Besides some international comparisons are shown, which haye enhanced the utillity of this publication. In view of its most recent and wide coverage, the publication has become an extremely useful to marketers. Another source of marketing information is the R.K Swamy BBDO Guide to Urban Markets. It provides a rigorous explanatory framework. It covers 784 towns with a population of over 50,000, which account for 77 per cent of India’s urban population. It provides a simple way of indexing market potential across different towns, aggregated into states and regions. It has developed the market intensity index (MID), which is a good indicator of the character of the market. Besides these three major sources of marketing information, there are a number of private organisations which bring out statistics in one form or another on a peridical basis. Of these, various industry and ample, the Indian Cotton Mills Federation brings out statistics trade associations are important. For e: : : tist on the cotton textile industry. Likewise, the annual report of the Bombay Mill Owners’ Association contains the latest statistics on the working of the member units. One major advantage of trade and industry publications is that they give an account of the main problems faced by those industries. i ‘Another source of detailed information on the corporate sector is the stock exchange directories. The Bombay Stock Exchange Directory contains information on financial accounts, key profitability and other ratios of the listed joint stock companies. The Directory has been designed in such ee manner that the latest possible write-up on the listed oor oe ‘a beat i ta one taken out. This ensures efficient updating of the various financial statistics apanies. k A few more cil of Hea several agencies bringing out periodical data may be given here, The Market Research and Statistical Bureau of the Coffee Boar Danae an oe statistics annually. The Coir Board, Cochin, brings out annually its publication ed a Hes pe Exports and Internal Consumption of Coir and Coir Goods’. The Rubber Boat. St publishes the Indian Rubber Statistics annually. The Indian Sugar Mills ee fc he issues the Indian Sugar Year Book, containing detailed statistics. ‘The Steel if ‘ we "Ht (SAIL) publishes statistics for the iron and steel industry in India on @ avant Or ne Woollen Mills Federation, Mumbai, brings out a oe HN Weg ms ‘ It ise it the foregoing brief account non ; : : At akan ssaeaiael cndustrialisation in India, itis 1 ee non-government organisations. This account should be sufficient to in : ‘Seamed i= data is available in the country and that one should explore all s possibility of their use before deciding to opt for primary data. ie Besides the industry associations listed earlier, there are several chambers of co states have them and there are also some at the national level such as the Federati Chambers of Commerce and Industry (FICCI), Associated Chamber of Commerce and India, Indo-American Chamber of Commerce, etc. These chambers or their federations occasionally” bring out memoranda dealing with a specific industry and its problems. Such publications often contain ‘useful statistics though such statistics may be ‘biased’. Care must be exercised to see how far these — Statistics are appropriate and representative. In any case, the chambers of commerce (including their é federations) are an additional source of secondary data which must be tapped. = There are a number of export promotion councils operating in India. Some of these bring out statistics — atregular intervals. The publications of these councils, both statistical and otherwise, are quite authentic and, as such, useful for any studies pertaining to foreign trade. The marketing — researcher who is concerned with any aspect of foreign trade would do well to look up relevant statistics in his chosen field with the concerned export promotion council. ; Finally, a number of organisations (other than stock exchanges) have come up in India in recent years, which provide periodical data on a particular subject to the subscribing companies. These organisations have answered the need for such a paid service, and most of them collect data from. secondary sources, arrange them in their own specified manner and present them to their clients. Of course, a few of them gather data themselves for the client companies. 8 : : Syndicated Services Syndicated services® are provided by certain organisations, which collect and. tabulate marketing information on a continuing basis. Reports based on the marketing information collected by such organisations are sent periodically (weekly, monthly, or quarterly) to clients who are subscribers: Syndicated services are normally designed to suit the requirements of many individuals or firms. Such services are particularly useful in the spheres of TV viewing, magazine readership, and the mo} of consumer goods through retail outlets. Organisations providing syndicated services may. engage themselves in other types of research work for their clients. However, such organisations confine themselves to this activity alone. Syndicated services may be regarded as an ‘intermediate’ source falling between the pri secondary sources. This is because they possess the characteristics of both types of sources. services are based on data collected specifically by the organisation from original sources they are current in nature, the data may be called primary. On the other hand syndicated dat a large number of firms. The data are not meant for use by a particular firm or in a S organisation, It should be obvious that as syndicated information is supplied to @ individuals or firms, its unit cost to the client is much less. If the client has to collect an same information on his own, he will have to incur a considerably greater ure. TI costwise it is a distinct advantage to the client, he does not enjoy any exclusi' information is available to several clients also, ‘Scamad with CanScamer‘When syndicated information is collected from the sam establishments over a period of time, it may be classified as « 7 syndicated service is that it enables the client to measure changes ove sample is taken each time, the syndicated information is ofl eee ; possible. a: ‘Apart from syndicated services, a number of research agencies offer custom their clients. Unlike syndicated services, in customised services, the research: studies on behalf of its clients. An illustrative list of the customised research s Jeading research agency in India is as follows: Consumer Research Services Consumer Research © Usage and attitude studies © Brand image and positioning research * New product development research © Advertising research ve i © Brand tracking studies © Product testing @ Simulated test marketing © Market estimation and forecasting = © Market modelling © Customised panel research = © Motivation research Life style research Concept evaluation Corporate image research ail Strategic research . . . > 1 The list is impressive as it shows a wide variety of research activities. Beside thes consumer research and qualitative research, this research agency handles ad hoc h /h, travel and tourism research, medical marketing than 400 widely diversified projects. ffers to undertake client-specific s other areas such as financial researcl social research. In a typical year it handles more Another leading marketing research agency © following areas: © Behavioural and attitude research . ; : © Test marketing studies * Corporate image studies © Campaign evaluation © Media studies © Opinion surveys © Industrial market It goes to the credit of these agencies that some of the studies pioneering nature, involving the development of appropriate ¢ measurement techniques. They have a large fiel of the country having several years ‘Scamad with CanScamerPublications of International Organizations So far the discussion was confined to national organisations. There are several inte that publish statistics in their respective areas. Some of these organisations publish d with that of other countries, The main advantage of such data is that international drawn, As Appendix Ito the chapter on Export Marketing Research provides a list ofn sources of secondary data, they are not given here. 4 ; ‘Stanad with CamScomer