Final BRM Text Book

BUSINESS RESEARCH METHODS
Module No.
Module Name
Pg. No
1.
Introduction to Research
2-10
2.
Research Design & Process
11-33
Cases
34-49
3.
Secondary Data
50-62
4.
Primary Data
63-82
Cases
83-88
Measurement Techniques
89-136
Cases
137-156
6.
Qualitative Research
157-186
7.
Sampling
187-206
Cases
207-212
Data Reduction & Data
213-223
5.
8.
Analysis
9.
Cases
224-236
Marketing Research Reports
237-240
Cases
241-242
MODULE 1
(INTRODUCTION TO
RESEARCH)

DEFINITION OF MARKETING REASEARCH
The systematic and objective identification, collection, analysis, dissemination, and use of
information for the purpose of assisting management in decision making related to the
identification and solution of problems (and opportunities) in marketing.
First, marketing research is a systematic. Thus systematic planning is required at all the
stage of marketing research process. The procedures followed at each stage are
methodologically sound, well documented, and, as much as possible, planned in advance.
Marketing research is objective. It attempts to provide accurate information that reflects a
true state of affairs. It should be conducted impartially. Although research is always influenced
by the researchers research philosophy, it should be free from the personal or political biases of
the researcher or the management. The motto of every researcher should be, find it and tell it
like it is.
MARKETING RESEARCH PROCESS

A set of six steps which defines the tasks to accomplished in conducting marketing
research study. These include problem definition, developing an approach to the problem,
research design formulation, field work, data preparation and analysis, and report generation and
presentation.
THE ROLE OF MARKETING RESEARCH

CUSTOMER GROUPS
Consumers
o Employees
o Shareholders
o Suppliers
Controllable
Marketing
Variables
Uncontrollable
environmental
factors
MARKETING
RESEARCH
1. Product
1. Economy
2. Pricing
2. Technology
3. Promotion
3. Competition
4. Distribution
Assessing
providing
marketing
4. Laws and regulation
Information
Information
decision
5. Social and -
Needs
making
cultural factors
6. Political factors
Marketing managers
Market Segmentation
Target market selection
Marketing programs
Performance and control
4

CLASSIFICATION OF MARKETING RESEARCH
I. Problem identification research Research which is undertaken to help identify problems that are not necessarily apparent
on the surface and yet exist or are likely to arise in the future. Examples of problem
identification research include market potential, market share, brand or company image,
market characteristics, sales analysis, short-range forecasting, long-range forecasting, and
business trend research.
II. Problem solving researchResearch undertaken to help solve specific marketing problems. Once a problem or
opportunity has been identified, problem solving research is undertaken to arrive at a
solution. The findings of problem solving research are used in making decisions which will
solve specific marketing problems.
Marketing research
Problem identification
research
Problem solving
research
1. Market Potential Research
1. Segmentation Research
2. Market Share Research
2. Product Research
3. Image Research
3. Pricing Research
4. Market Characteristic Research
4. Promotion Research
5. Sales Analysis Research
5. Distribution Research
6. Forecasting Research
7. Business Trends Research
5

PROBLEM SOLVING RESEARCH
Segmentation Research
Determine bases of segmentation establish market potential and responsiveness for
various segments select target markets and create life style profiles demography, media, and
product image characteristics.
Product ResearchTest concept

Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Control store tests
Pricing ResearchImportance of price in brand selection

Pricing policies
Product line pricing
Price elasticity of demand
Initiating and responding to price changes

Promotional ResearchOptimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Claim substantiation
Evaluation of advertising effectiveness
Distribution ResearchDetermine copy of distribution

Attitudes of channel members
Intensity of wholesale and retail coverage
Channel margins
Location of retail and wholesale outlets

MARKETING RESEARCH SUPPLIERS AND SERVICES
Research Suppliers
Internal
External
Full Service
Syndicated
services
Standardized
services
Customized
services
Limited Service
Internet
services
Field
services
Coding
And
data
entry
service
s
Analytical
services
Data
analysis
services
Branded
product
and
services

Internal suppliers:
Marketing research departments located within a firm.
External suppliers:
Outside marketing research companies hired to supply marketing research services.
Full-service suppliers:
Companies that offer the full range of marketing research activities. Full-service
suppliers offer the entire range of marketing research services, from problem definition,
developing an approach, questionnaire design, sampling, data collection, data analysis, and
interpretation, to report preparation and presentation. The services is provided by these suppliers
can be further broken down in to syndicated services, customized, and internet services.
I.
Syndicated services:
Companies that collect and sell pools of data designed to serve information needs shared
by a number of clients.
II.
Standardized services:
Companies that use standardized procedures to provide marketing research clients.
III. Customized services:

Companies that tailor research procedures to best meet the needs of each client.

IV. Internet services:
Companies specializing in conducting marketing research on the internet.
Limited-service suppliers:
Companies specializing in one or a few phases of the marketing research project.
I.
Field services:
Companies offering their expertise in collecting data for research projects.
II.
Coding and data entry services:

Companies offering their expertise in converting completed surveys or interviews into a
usable data base for conducting statistical analysis.
III. Analytical services:

Companies that provide guidance in the development of the research design.
IV. Data analysis services:

Firms whose primary service is to conduct statistical analysis of quantitative data.
V.
Branded marketing research products:

Specialized data collection and analysis procedures developed to address specific types of
marketing research problems.
10
MODULE 2
(RESEARCH DESIGN &
PROCESS )
11

RESEARCH DESIGN: CLASSIFICATION
Research design may be broadly classified as exploratory or conclusive. A framework or
blueprint for conducting the marketing research project. It specifies the details of the procedures
necessary for obtaining the information needed to structure and/or solve marketing research
problems. Exploratory research Is used in cases when you must define the problem more
precisely, identify relevant courses of action, or gain additional insight before an approach can be
developed. The information needed is only loosely defined at this stage, and the research process
that is adopted is flexible and unstructured. For example, it may consist of personal interviews
with industry experts. The sample, selected to generate maximum insight, is small and nonrepresentative. The primary data are data are qualitative in nature and are analyzed accordingly.
Given these characteristics of the research process, the findings of exploratory research should be
regarded as tentative or as input to further research. Typically, such research is followed by
further exploratory or conclusive research.
Research design formulation

Research Design
Exploratory Research Design
Conclusive Research Design
re
Causal
Research
Descriptive
research
Cross Sectional
Design
Single cross Sectional

design
Longitudinal
Design
Multiple Cross
Sectional Design
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Sometimes, exploratory research, particularly qualitative research, is all the research

that is conducted. In these cases, caution should be exercised in utilizing the findings obtained.
Exploratory research will be discussed in more detail in the next section.
The insight gained from exploratory research might be verified by conclusive
research, as the objective of conclusive research is to test specific hypothesis and examine
specific relationship. This requires that the information needed is clearly specified.
DIFFERENCES BETWEEN EXPLORATORY AND CONCLUSIVE RESEARCH

Exploratory
Objective
To provide insight and understanding.
Conclusive
To test specific hypothesis and examine
relationships.
Characteristics
Information needed is defined only loosely.
Research process is formal and defined.
Research process is flexible and unstructured.
Information is needed is clearly
Sample is small and non-representative.
structured.
Analysis of primary data is qualitative.
Sample is large and representative.

Data analysis is quantitative.
Finding/Result
Tentative
Conclusive
Outcome
Generally followed by further exploratory or
Findings used as input into decision
conclusive research.
making.
Conclusive research is typically more formal and structured then is exploratory research.
It is based on large, representative sample, and the data obtained are subjected to quantitative
analysis. The findings from this research are considered to be conclusive in nature in that they
are used as input in to managerial decision making. Conclusive research designs may be either
descriptive or causal, and descriptive research designs may be either cross sectional or
longitudinal.
13

EXPLORATORY RESERCH
In general, exploratory research is meaningful in any situation in which the researcher
does not have enough understanding to proceed with the research project. Exploratory research is
characterized by flexibility & versatility, with respect to the methods, because formal research
protocols and procedures are not employed. It really involves structured questionnaires, large
samples, and probability sampling plans. Rather, researches are alert to new ideas and insights as
they proceed. Once the new idea or insight is discovered, they may shift their exploration in that
direction. That new direction is pursued until its possibilities are exhausted or another direction
is found.
For this reason, the focus of the investigation may shift constantly as new insights are
discovered. Thus, the creativity and ingenuity of the researcher plays a major role in exploratory
research. Exploratory research can greatly benefit from use of the following methods:
Survey of experts
Pilot surveys
Analysis of secondary data
Qualitative research
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A COMPARISION OF BASIC RESEARCH DESIGN
Exploratory
Objective
Characteristics
Methods
Descriptive
Causal
Discovery of ideas and Describe market
Determine causal
insights.
characteristics or
and effect
function.
relationship.
Flexible, versatile.
Marketed by the prior
Manipulation of one
Often the front end of
formulation of specific
or more independent
total research design.
hypothesis.
variables.
Preplanned and structured
Control of other
design.
mediating variables.
Expert surveys.
Secondary data.
Experiments
Pilot surveys.
Surveys.
Secondary data.
Panels.
Qualitative research.
Observational and
other data.
DESCRIPTIVE RESEARCH
Descriptive research a type of conclusive research which has as its major objective the
description of something usually market characteristics or functions.
1.
To describe the characteristics of relevant groups, such as consumers, salespeople, or

ganizations, or market areas. For example, we could develop a profile of the heavy users
(frequent shoppers) of prestigious department stores.
2.
To estimate the percentage of units in specified population exhibiting a certain behavior;

for example, the percentage of heavy users of prestigious department stores who also
patronize discount department stores.
15

3.
To determine the perceptions of product characteristics. For example, how do

households perceive the various department stores in terms of salient factors of choice
criteria?
4.
To determine the degree to which marketing variables are associated. For example, to
what extent is shopping at department store related are eating out?
5.
To make specific predictions. For example, what will be the retrial sales of specific store
for fashion clothing in the specific region?
Descriptive research, in contrast to exploratory research, is marketed by a clear statement
of the problem, specific hypothesis, and detailed information needs. Other examples of descriptive
studies are:
Market studies, which describe the size of the market, buying power of consumers,
availability of distributors, and consumer profiles.
Market share studies, which determine the proportion of total sales received by a
company and its competitors.
Sales analysis studies, which describe sales by geographic region, product line, type and
size of the account.
Image studies, which determine consumer perceptions of the firm and its products.
Product usage studies, which describe consumption patterns.
Distribution studies, which determine traffic flow patterns and the number and location
of distributers.
Pricing studies, which describe the range and frequency of price changes and probable
consumer response to proposed price changes.
16

Advertising studies, which describe media consumption habits and audience profiles for
specific television programs and magazines.
MAJOR METHODS IN DESCRIPTIVE RESEARCH
Secondary data
Surveys
Panels
Observational and other data
CROSS SECTIONAL DESIGNS

A type of research design involving the collection of information from any given sample of
population elements only once.
They may be either single cross sectional or multiple cross sectional. In single cross
sectional designs only one sample of respondents is drawn from the target population, and
information is obtained from this sample only once. These design is also called as sample survey
research designs. In multiple cross sectional designs, there are two or more samples of
respondents, and information from each sample is obtained once. Often, information from different
sample is obtained at different times.
COHORT ANALYSIS
A multiple cross sectional design consisting of a series of surveys conducted at appropriate
time intervals. The cohort refers to the group of respondents who experience the same event within
the same time interval. For example: a birth (or age) cohort is a group of people who were born
during the same time interval.
Cohort analysis is also used to predict changes in voter opinions during a political
campaign.
17

LONGITUDINAL DESIGN
In longitudinal design, a fixed sample (or samples) of population elements is measured
repeatedly. A longitudinal design differs from a cross - sectional design in that the sample or
samples remain same over the time. In other words, the same respondents are studied over time. In
contrast to the typical cross sectional design, that gives a snapshot of variables of interest at a
single point of time, a longitudinal study provides a series of pictures that give an in-depth view of
the situation and the changes that take place over time. For example, the question, How did the
American people rate the performance of bill Clinton immediately after his second term? would
be addressed a cross sectional design. However, a longitudinal design would be used to address
the question, How did the American people change their view of Clintons performance during
his presidency?
A panel consists of a sample of respondents, generally households that have agreed to
provide information at specified intervals over an extended period. Panels are maintained by
syndicated firms, and panel members are compensated for their participation with gifts, coupons,
information, or cash.
RELATIVE ADVANTAGES & DISADVANTAGES OF LONGITUDINAL AND CROSS

SECTIONAL DESIGNS
A major advantage of longitudinal design over the cross - sectional design is the ability to detect
change as a result of repeated measurement of the same variables on the same sample.
Longitudinal data enable researchers to examine changes in the behavior of individual units
and to link behavioral changes to marketing variables, such as changes in advertising, packaging,
pricing, and distribution. Because the same units are measured repeatedly, variations caused by
changes in the sample are eliminated and even small changes are apparent.
18

Another advantage of panel is that relatively large amounts of data can be collected. Panel
member are usually compensated for their participation, so they are willing to participate in
lengthy and demanding interviews. Yet another advantage is that panel data can be more accurate
then cross sectional data. A typical cross sectional survey requires the respondent to recall past
purchases and behavior; these data can be inaccurate because of memory lapses. Panel data, which
relies on continues recording of purchases in a diary, places less reliance on the respondents
memory.
The main disadvantage of panel is that they may not be representative. Nonrepresentativeness may arise because of:
Refusal to corporate: many individuals or households do not wish to be bothered with
the panel operation and refuse to participate. Consumer panel requiring members to keep a
record of purchases have a cooperation rate of 60 percent or loss.
Mortality: panel members to agree to participate may subsequently drop out they move
away or loss interest. Mortality or attrition rates can be us high us 20 percent per year.
Payment: payment may cause certain types of people to be attracted, making the groups
under preventative of the population.
Another disadvantage of panels is response bias. New panel member are obtain biased in
their initial responses. They tend to increase the behavior being measured, such as food
purchasing. This bias decreases as the respondent overcomes. The novelty of being on the panel,
so it can be reduced by initially excluding the data of new members. Seasoned panel members may
also give biased responses because they believe they are experts or want to look good or give the
right answer. Bias also results from boredom, fatigue, and incomplete diary entries.
19

RELATIVE ADVANTAGES AND DISADVANTAGES OF LONGITUDINAL AND
CROSS SECTIONAL DESIGNS
Evaluation criteria
Cross sectional design
Longitudinal design
Detecting change
Large amount of data collection
Accuracy
Representative sampling
Response bias
CAUSAL RESEARCH
Causal research a type of conclusive research in which the major objective is to obtain
evidence regarding cause-and-effect (causal relationship).
Causal research is appropriate for the following purposes:
To understand which variables are the causes (independent variables) and which
variables are the effects (dependent variables) of a phenomenon.
To determine the nature of the relationship between the causal variables and the effect to
be predicted.
Causal research requires a planned and structured design. Although descriptive research
can determine the degree of association between variables, it is not appropriate for examining
causal relationship. Such an examination requires a causal design, in which the causal or
independent variables are manipulated in a relatively controlled environment. A relatively
controlled environment is one in which the other variables that may affect the dependent variables
are controlled or checked as much as possible. The affect of this manipulation on one or more
dependent variables is then measured to infer causality. The main method of causal research is
experimentation.
20

A researcher to determine whether the presence and helpfulness of seals peoples (causal
variable) will influence the sales of housewares (effect variable). A causal design could be
formulated in which two groups of otherwise comparable housewares departments of a particular
chain are selected. For four weeks, trained sales people are stationed in one group of housewares
departments but not in the other. Sales are monitored for both groups, while controlling for other
variables. a comparison of sales for the two groups will reveal the effect of sales people on
housewares sales in department stores. Alternatively, instead of selecting two groups of stores, the
researcher might select only one set of department stores and carry out this manipulation for to
comparable time periods: salespeople are present in one time period and absent in the other.
A causal study was undertaken to measure the effect of business to business advertising
on the sales of a variety of products as well as to evaluate the effects of ad frequency schedules and
varying media weight. The study involved a participating manufacture, the publishers of the
magazines used in the study, and the tightly controlled stratification of the magazines circulation
into three cells, which were to receive light, medium, and heavy levels of advertising. Four
products in the growth stage of the products life cycle were chosen for advertisement. To obtain
clear sales data on these products, distribution channel restrictions were necessary, so that sales
could be linked to the balanced advertising sales. After the four products and the participating
magazines had been selected, the advertising cells and levels per each product were defined. At the
conclusion of the one-year study, findings supported the hypothesis that more advertising caused
an increase in sales. The study also concluded that if a product is sold through dealers, both dealers
and end users should be targeted for ads.
In this experiment the causal (independent) variable was advertising, which was
manipulated to have three levels: light, medium, and heavy. The effect (dependent) variable was
sales, and the influence of distribution on sales had to be controlled.
21

RELATIONSHIP AMONG EXPLORATORY, DESCRIPTIVE, AND CAUSAL
RESEARCH
A given marketing research project may involve more than one type of research design
and thus serve several purposes. Which combination of research designs to employ depends on
the nature of the problem. We offer the following general guidelines for choosing research
designs:
When little is known about the problem situation, it is desirable to being with exploratory
research. Exploratory research is appropriate when the problem needs to be defined more
precisely, alternative courses of action identified, research question or hypothesis
developed, and key variables isolated and classified as dependent or independent.
Exploratory research is the initial step in the overall research design framework. It
should, in most instances, be followed by descriptive or causal research for example;
hypothesis developed via exploratory research should be statistically tested using
descriptive or causal research.
It is not necessary to being every research design with exploratory research. It depends on
the precision with which the problem has been defined and the researchers degree of
certainty about the approach to the problem. A research design could well begin with
descriptive or causal research. To illustrate, a consumer satisfaction survey conducted
annually need not begin with nor include an exploratory phase.
Although exploratory research is generally the initially step, it need not be. Exploratory
research may follow descriptive or causal research. For example, descriptive or causal
research results in findings that are hard for managers to interpret. Exploratory research
may provide more insights to help understand these findings.
22

RESEARCH DESIGN PROCESS
Steps in the Research Design Process:
Step 1: Define the Research Problem
Step 2: Estimate the Value of the Information
Step 3: Select the Data Collection Approach
Step 4: Select the Measurement Technique
Step 5: Select the Sample
Step 6: Select the Method(s) of Analysis
Step 7: Evaluate the Ethics of the Research
Step 8: Estimate Time and Financial Requirements
Step 9: Prepare the Research Proposal
STEP 1: DEFINE THE RESEARCH PROBLEM

Problem definition is the most critical part of the research process. Research problem
definition involves specifying the information needed by the management.
Research problem definition involves four interrelated steps:
(1). Management problem/opportunity clarification,
(2). Situational analysis and
(3). Specification of information requirements.
23

Management Problem/Opportunity Clarification
The basic goal of problem clarification is to ensure that the decision makers initial
description of the management decision is accurate and reflects the appropriate area of concern
for research. If the wrong management problem is translated into a research problem, the
probability of providing management with useful information is low.
Situational Analysis
The situational analysis focuses on the variables that have produced the stated
management problem or opportunity. It involves giving careful attention to company records;
appropriate secondary sources such as census data, industry sales figures, economic indicators,
and so on; and interviews with knowledgeable individuals both internal and external to the firm.
The persons interviewed will include the manager(s) involved and may include salespersons,
other researchers, trade association officials, professionals, and consumers.
Specification of Information Requirement Define Research Problem and Research

Objectives.
Research cannot provide solutions. Solutions require executive judgment. Research
provides information relevant to the decisions faced by the executive. The output of the problemdefinition process is a clear statement of the information required to assist the decision maker.
24

Categories of Research
There are three general categories of research based on the type of information required.
These three categories are exploratory, descriptive and casual.
Exploratory research is concerned with discovering the general nature of the problem
and the variables that relate to it. Exploratory research is characterized by a high degree of
flexibility, and it tends to rely on secondary data, convenience or judgment samples, small-scale
surveys or simple experiments, case analysis and subjective evaluation of the results.
Descriptive Research is focused on the accurate description of the variables in the
problem model. Consumer profile studies, market-potential studies, product-usage studies,
attitude surveys, scale analysis, media research, and price surveys are examples of descriptive
research. Any source of information can be used in a descriptive study, although most studies of
this nature rely heavily on secondary data sources and survey research.
Casual Research attempts to specify the nature of the functional relationship between two
or more variables in the problem model. For example, studies on the effectiveness of advertising
generally attempt to discover the extent to which advertising causes sales or attitude change.
STEP 2: ESTIMATE THE VALUE OF THE INFORMATION

A decision maker normally approaches a problem with some information. The principle
involved in deciding whether to do more research is that research should be conducted only
when it is expected that the value of the information to be obtained will be greater than the cost
of obtaining it.
25

STEP 3: SELECT THE DATA COLLECTION APPROACH
There are three basic data collection approaches in marketing research:
(1). Secondary data
(2). Survey data
(3). Experimental data
Secondary data were collected for some purpose other than helping to solve the current
problem, whereas primary data are collected expressly to help solve the problem at hand.
Major Data Collection Methods

I. Secondary Research utilization of data that were developed for some purposes
other than helping solve the problem at hand.
Internal secondary data data generated within the organization itself, such as
salesperson call reports, sales invoices, and accounting records.
External secondary data data generated by sources outside the organization,
such as government reports, trade association data, and data collected by
syndicated services.
II. Survey Research systematic collection of information directly from respondents.
Telephone interviews collection of information from respondents via telephone.
Mail interviews collection of information from respondents via mail or similar
techniques.
26

Personal interviews collection of information in a face-to-face situation.
o Home interviews personal interviews in the respondents home or
office.
o Intercept interviews personal interviews in a central location, generally
a shopping mall.
Computer interviews respondents enter data directly into a computer in
response to questions presented on the monitor.
III. Experimental Research the researcher manipulates one or more variables in such
a way that its effect on one or more other variables can be measured.
Laboratory experiments manipulation of the independent variable(s) in an
artificial situation.
o Basic designs consider the impact of only one independent variable.
o Statistical designs consider the impact of more than one independent
variable.
Field experiments manipulation of the independent variable(s) in a natural
situation.
o Basic designs consider the impact of only one independent variable.
Statistical designs consider the impact of more than one independent variable.
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STEP 4: SELECT THE MEASUREMENT TECHNIQUE
There are four basic measurement techniques used in marketing research:
Questionnaires
Attitude scales
Observation
Depth interviews and projective techniques.
Primary Measurement Techniques

Questionnaire a formalized instrument for asking information directly from a
respondent concerning behavior, demographic characteristics, level of knowledge, and/
or attitudes, beliefs, and feelings.
Attitude scales a formalized instrument for eliciting self-reports of beliefs and feeling
concerning an object(s).
o Rating scales require the respondent to place the object being rated at some
point along a numerically valued continuum or in one of a numerically ordered
series of categories.
o Composite scales require the respondent to express a degree of belief
concerning various attributes of the object such that the attitude can be inferred
from the pattern of responses.
o Perceptual maps derive the components or characteristics an individual uses in
comparing similar objects and provide a score for each object on each
characteristic.
o Conjoint analysis derive the value an individual assigns to various attributes of

a product.
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Observation the direct examination of behavior, the results of behavior, or
physiological changes.
Projective Techniques and Depth Interviews designed to gather information that
respondents are either unable or unwilling to provide in response to direct questioning.
o Projective techniques allow respondents to project or express their own feelings
as a characteristic of someone or something else.
o Depth interviews allow individuals to express themselves without any fear of
disapproval, dispute, or advice from the interviewer.
STEP 5: SELECT THE SAMPLE

Most marketing studies involve a sample or subgroup of the total population relevant to
the problem, rather than a census of the entire group.
Primary Considerations in Sampling

Population determine who (or what objects) can provide the required information.
o Sample Frame develop a list of population members.
Sampling Unit determine the basic for drawing the sample (individuals, households,
city blocks, etc).
Sampling Method determine how the sample will be selected.
o Probability members are selected by chance and there is a known chance of
each unit being selected.
o Non-probability members are selected on the basis of convenience or judgment
or by some other means rather than chance.
Sample Size determine how many population members are to be included in the
sample.
Sample Plan develop a method for selecting and contacting the sample members.
o Execution carry out the sampling plan.
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STEP 6: SELECT THE METHOD(S) OF ANALYSIS
Data are useful only after analysis. Data analysis involves converting a series of recorded
observations into descriptive statements and/or inferences about relationships. The types of
analysis that can be conducted depend on the nature of the sampling process, the measurement
instrument, and the data collection method.
It is imperative that the researcher select the analytic techniques prior to collecting the
data. Once the analytic techniques are selected, the researcher should generate fictional responses
(dummy data) to the measurement instrument. These dummy data are then analyzed by the
analytic techniques selected to ensure that the results of this analysis will provide the information
required by the problem at hand.
STEP 7: EVALUATE THE ETHICS OF THE RESEARCH

It is essential that marketing researchers restrict their research activities to practices that
are essentially sound. Ethically sound research considers the interests of the general public, the
respondents, the clients, and the research profession as well as those of the researcher.
STEP 8: ESTIMATE TIME AND FINANCIAL REQUIREMENTS

Once the research design(s) has been devised and checked for ethical soundness, the
researcher must estimate the resource requirements. These requirements can be broken down into
two broad categories: time and financial. Time refers to the time needed to complete the project.
The financial requirement is the monetary representation of personnel time, computer time, and
materials requirements.
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STEP 9: PREPARE THE RESEARCH PROPOSAL
The research design process provides the researcher with a blueprint, or guide, for
conducting and controlling the research project. This blueprint is written in the form of a
research proposal. A written research proposal should precede any research projects.
Elements of the Research Proposal

Executive summary The proposal should begin with a summary of the major points
from each of the other sections, presenting an overview of the entire proposal.
Background The background to the problem, including the environmental contents
should be discussed.
Problem definition / Objective of the research Normally, a statement of the problem
including the specific components should be presented. If this statement has not been
developed (as in the case of problem identification research), the objective of the
marketing research project should be clearly specified.
Approach to the problem At a minimum, a review of the relevant academic and trade
literature should be presented, along with some kind of an analytical model. If research
questions, hypotheses, and factors influencing the research design have been identified,
then these should be included in the proposal.
Research design The research design adopted, whether exploratory, descriptive,
casual, should be specified. Information should be provided on the following
components: (1) kind of information to be obtained, (2) method of administering the
questionnaire (mail, telephone, or personal interviews), (3) scaling techniques, (4) nature
of the questionnaire (type of questions asked, length, average interviewing time), (5)
sampling plan and sample size.
Field work / data collection The proposal should discuss how the data will be
collected and who will collect it. If the field work is to be subcontracted to another
supplier, this should be stated. Control mechanisms to ensure the quality of data collected
should be described.
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Data analysis The kind of data analysis that will be conducted ( simple cross
tabulations, univariate analysis, multivariate analysis) and how the results will be
interpreted should be described.
Reporting The proposal should specify whether intermediate reports will be presented
and at what stages, what will be the form of the final report, and whether a formal
presentation of the results will be made.
Cost and Time The cost of the project and the time schedule, broken down by phases,
should be presented. A CPM or PERT chart might be included. In large projects, a
payment schedule is also worked out in advance.
Appendices Any statistical or other information that is of interest to only a few people
should be contained in appendices.
POTENTIAL ERRORS AFFECTING RESEARCH DESIGNS
Types of Errors
Surrogate Information Error: Surrogate information Error is caused by a variation
between the information
required to solve the problem and the information sought by
the researcher.
Measurement Error: Measurement error is caused by a difference between the
information desired by the researcher and the information provided by the measurement
process.
Experimental Error: Experimental error is caused by a difference between the actual
impact of the independent variable(s) and the impact attributed to the independent
variable(s). Experimental error occurs when the effect of the experimental situation itself
is measured than the effect of the independent variable.
Population Specification Error: Population specification error is caused by a difference
between the populations required to provide the needed information and the population
selected by the researcher. Population specification error is caused by selecting an
inappropriate universe or population from which to collect data.
32
Frame Error: Frame error is caused by a difference between the population as defined
by the researcher and the list of population members used by the researcher. Frame error
is caused by using an inaccurate or incomplete sampling frame.
Sampling Error: Sampling error is caused by the generation of a non-representative
sample by means of a probability sampling method.
Selection Error: Selection error occurs when a non-representative sample is obtained by
non-probability sampling methods.
Non-response Error: Non-response error is caused by (1) a failure to contact all
members of a sample, and/or (2) the failure of some contacted members of the sample to
respond to all or specific parts of the measurement instrument.
33
CASES
34

CASE No. 1
ETHICAL ISSUES IN MARKETING RESEARCH
Below are given some of the situations/cases wherein ethical issues are involved. Identify the
ethical issue in each situation/case and indicate what you would do.
1. A marketing research firm assured its sample respondents that it would conduct an
anonymous survey. As such their identity would remain undisclosed. However, it used an
ultraviolet ink on each questionnaire as a result of which every respondent could be
identified though the identity mark was invisible. Later on when it came to the notice of
someone, the firm justified the use of an ultraviolet ink on the ground that it wanted to
identify defaulting respondents so that it could send them reminders. Some people
sharply reacted to this and said that such a practice was a clear deception as the firm
acted against its explicit assurance to respondents.
2. A marketing research firm has recently taken up a study of some department stores. It has
asked one of its members to visit these stores and pose as a customer and pose and
observe the buying behavior of customers. No one knows that he or she is being observed
by someone.
3. A large manufacturing company dealing in some cosmetic products has its own
marketing research cell. However, it generally uses marketing research as a sales ploy. Its
investigators try to push up the sale of its products to households when they visit them
while conducting a field survey.
4. A marketing research firm does not bother about ethical problems. It uses such date and
research techniques as would produce the findings acceptable to its clients or to justify a
particular decision.
35

5. A study is undertaken by a team of marketing researchers. A survey is planned but it has
been decided that the purpose of research, as also its sponsorship, should not be disclosed
to the respondents. This is because the team of marketing researchers feels that such a
disclosure would influence the respondents to such an extent that the proposed research
would be of no use.
6. An interviewer has been assigned the job of contacting some specific households chosen
in the sample. He visits some households and in respect of others, fills in fictitious data,
which are passed off as genuine. Nobody except the interviewer knows that some data are
fictitious.
7. A marketing research firm accepts an assignment from one of its clients even though it
knows that it would not be possible to submit the report within the stipulated time.
8. A business firm is interested in sponsoring a study with a research firm. It invites
research proposals from four different consultants. It then incorporates the ideas included
in different proposals in one single proposal submitted by the lowest bidder and assigns
him this research study.
9. A project director seeks the permission of the Marketing Research Director to use
ultraviolet ink in pre-coding questionnaires in a mail survey. He points out that although
the letter refers to an anonymous survey where the identity of the respondent would be
undisclosed, he needs the identity of the respondent would be undisclosed, he needs the
identification of the respondent so that cross tabulation of data can be undertaken. The
Marketing Research Director gives him the permission to use ultraviolet ink.
10. An interviewer adopts an unusual practice with a view to getting the cooperation of the
respondent. He assures the respondent that as soon as the survey report is ready, he will
send him the copy of the same. While making such a promise to the respondent, the
interviewer has no intention whatsoever to follow it up.
11. A research firm sometimes uses such devices as giving huge statistical data in appendices
and drafting a report full of technical jargon to give huge an impression that it is perfect
study or that the team engaged in the research is very competent.
36

CASE No. 2
THE MARKET FOR NECKTIES
Neckties have been around in India for the last several decades. Before 1960s, ties were
mostly imported from France, England, Italy and a couple of other countries. It was Zodiac that
gave impetus to the domestic tie industry in the sixties. This was followed by a Delhi-based
small company Zorex Ties Manufacturing Company Pvt. Ltd., in 1965. the ties were sold
under the brand Zorex, which later took the name Bentlay. Zorex has remained the only wellknown player specializing in neckwear. Other companies treat it as an additional item in
menswear market.
Today, the tie market is flooded with a number of brands. Bentlay is facing stiff
competition from new entrants from Korea, Japan and China. There seems to be a shift from
domestic to foreign brands. This is largely on account of liberalization in imports. This trend of
liberal imports is expected to gain further momentum in the years to come. Apart from this
discouraging trend to domestic producers, there has been another unfavorable development in
recent years the onslaught of denim wear and casual wear resulting in the reduced usage of ties.
Bentlay is now thinking seriously to sponsor a comprehensive study on the necktie
market in India. It would like the proposed study to enlighten it on the consumers profile, its
image vis--vis other manufacturers/exporters of ties in India, and the various segments in the tie
market. It would like the study to lay greater emphasis on the market segmentation.
QUESTION
You have been approached for the proposed study. How would you proceed with it,
keeping in mind the three major issues as pointed out by Bentlay?
37

CASE No. 3
THE INDIAN MOTORIST
Some time back, a leading marketing research agency was approached to conduct a
comprehensive survey on the passenger car market in India. The research design used by the
agency is described below:
The study was carried out in 13 large cities of the country. The list of cities covered is
shown in Exhibit 1 of this case. These cities were estimated to account for 51% of the total
population of cars in India. The states represented accounted for 86% of the total sales of cars in
India.
The target for this study included:
Vehicle owners
Potential owners
A total sample of 2600 was proposed by the agency. The break-up according to ownership status
was as follows:
Vehicle Owners
1850
Potential Owners
750
Total
2600
A minimum target of 650 was set of those who own a mid-priced or higher priced car.
Other targets were set according to model owned and its age, so as to match the likely profile of
the car population in India.
The distribution of the sample by city as used by the agency is given in Exhibit 2 of this
case. Respondents were located using a combination of household listings, as well as contacts at
public places such as parking lots, petrol pumps and shopping centers. The agency ensured a
geographical spread within each city covered in the survey.
38

QUESTION
Comment on the research design used by the marketing research agency.
Exhibit 1
List of cities covered in the survey
City
State/State Group
Delhi
Delhi
Ludhiana
Punjab and Haryana
Chandigarh
Punjab and Haryana
Kanpur
Uttar Pradesh
Calcutta
West Bengal
Patna
Bihar
Bombay
Maharashtra
Pune
Maharashtra
Ahmedabad
Gujarat
Madras
Tamil Nadu
Coimbatore
Tamil Nadu
Bangalore
Karnataka
Hyderabad
Andhra Pradesh
39
Exhibit 2
The Distribution of Sample
North
East
West
South
Delhi
400
Ludhiana
150
Chandigarh
150
Kanpur
200
Calcutta
250
Patna
100
Bombay
350
Pune
150
Ahmedabad
200
Madras
200
Bangalore
200
Hyderabad
150
Coimbatore
100
Total
2600
40

CASE No. 4
RESEARCH ON THE YOUNG INDIANS MIND
Young Indians surely knowns their minds. Recently, the music channel MTV
commissioned a study with the primary objective of mapping values, attitudes, lifestyles, music
and music-related preferences. The quantitative study conducted by the Indian Market Research
Bureau (IMRB) covered 2,745 respondents in Mumbai, Delhi, Chennai, Bangalore, Kanpur and
Lucknow between ages of 15 and 34 years. Using a random sampling methodology, they covered
respondents from A, B and C households classified according to their socio-economic standing
with cable and satellite availability and the ability to view any of the available music channels.
Although there has not been much change in the understanding of the young Indian on
the basis of the research conducted last year, there has been a certain firming up of values, says
Sudhanshu Sarronwala, senior vice-president, marketing, research and communications at MTV,
The young India is more clear about what defines him then he was a year ago. Even if he is
saying essentially the same things, he or she is more convinced about them now.
THE SHOPPING SPREE
Young Indians consider it important to be seen as the best buyers, are keen to wear what
suits them irrespective of whether it is in vogue or not. They subcribe to the proposition that
Indians should buy Indian products. Take a look at some of the propositions.
People recognize that I buy only the best: Young respondents overwhelmingly respond in
favour of being seen as the best buyers. Around 64.4% of the respondents are bullish on the idea.
To what may seem as a surprise to some, more class C respondents subscribe to the proposition
than class B and class A respondents. Chennai with 78% is the strongest votary of all the six
metros. Around 65% of women subscribe to the Buy the Best belief as opposed to 61% of
them.
41

I always seek the advice of friends regarding brands and products: Around 52.19% of
respondents look to friends for advice on brand buying. Around 55% men and 49% women
subscribe to the proposition. Class C respondents come out more strongly in favour of the
proposition than class A and B respondents. Youngsters in Mumbai display the most independent
disposition.
I wear what suits me, irrespective of whether its fashionable or not: Around 69% are in
favour of the proposition. Interestingly, Chennai often perceived as being conservative and
traditional comes out strongly in favour of fashion over comfort. Class A respondents display a
more individualistic streak than their B and C counterparts.
Indians should always buy Indian products: Around 52.16% of the respondents agree to
the proposition especially in Kanpur and Lucknow. Class C respondents agree to the proposition
more vehemently than class A and B respondents. The relatively more mellow 25-34 years old
set subscribe to the same more strongly than the 15-24 years old.
THE BIG ISSUES
Life should not be taken too seriously: Around 57.66% of the respondents say yes. A sluggish
economy and political uncertainly not withstanding, young Indians believe in having fun. Here,
Chennai continues to dominate the stereotype, rooting more strongly for the proposition. There
are very few no differences across categories.
One should rebel if someone is being unreasonable: This proposition is supported by
57.46%. Mumbai displays the highest levels of expediency. Kanpur and Lucknow are high on
the inclination to rebel against the injustice factor. Class A and B respondents muster a bigger
fighting spirit than class C respondents.
Job security is more important than money: Not money, nor adventure, it is security and
stability that young Indians look for in their jobs more than anything else. Chennai displays a
stronger materialistic streak than all other metros, rather surprising given its otherwise high
agreement on all issues deemed safe. More female respondents than male and class A and B
respondents than C agreed with the proposition.
42

RIDDING ON RELATIONSHIP
Pre-marital sex is a way of life: It is a far from being a way of life for young Indians in
the nineties. Living in is not yet acceptable and we will marry out of our own choice is the
chorus. Of all the respondents, only 29.33% agree with the proposition. Mumbai, is the most
responsive to the idea. Confirming widely held perceptions, more class A respondents than B and
C are positively disposed towards the proposition. More male respondents than female
respondents are open to the idea with 32% of males and around 22% of females agreeing with
the proposition.
Couples should live together before marriage: Only 31.35% of the respondents are in
favour of the proposition. More class C and B respondents are in favour of the proposition.
Kanpur and Lucknow, in a not so regular display of openness, subscribe more strongly than the
rest of the metros. Around 35% of male and 28% of female respondents agree.
ON PARENTS AND FRIENDS
Young Indians are comfortable viewing parents not only as providers, guides and
philosophers but also as friends and would obey their parents even if it hurt them. More female
respondents maintain a friendly equation with their parents. Mumbaites are relatively the most
muted in their support of the proposition that parents are friends and so are class A
respondents.
Friends are the center of all my activities: More than half the respondents (53.07%) root
in favour of the proposition. The pub capital of the country, Bangalore, with its high number of
college campuses roots most strongly for the idea. Understandably, more 15-24 year old than 2534 year old view life as being friend-centric. More class C respondents than class A and B
subscribe to the idea.
I try to obey my elders even if it hurts: Of the respondents, 65.63% agree with the
proposition. Mumbai, stays true to its individualistic and self-indulgent streak by scoring the
lowest amongst the metros. Bangalore with nearly 80% scores the highest. The class breaks
display hardly any differences, dispelling populations of class A youngsters being more spoilt
and rebellious than their class B and C counterparts.
43

Its ok to take parental help to make it in life: People in Mumbai are the most reluctant in
this regard. Often viewed as being individualistic and self-sufficient, they score the lowest
among all metros confirming popular perceptions. More class C respondents than class A and B
and more 15-24 years old than 24-34 year olds agree with the proposition. Overall, young
Indians are very comfortable viewing parents as providers.
THE SONG AND DANCE TRIP
When it come to entertainment, youngsters are extremely bullish on television, and
construct their ideal music channel around a music mix, 72.25% are in favour of Hindi
film/Hindi pop and regional language music. Hindi film music, both old and new reigns supreme
appealing to all age groups and class groups. Delhities are more bullish on Hindi pop. Regional
language music finds greatest favour down south, more in Chennai than Bangalore. International
music and Indian pop are patronized more by the 15-24 year old segment than the older lot. The
25-34 year old prefer Hindi film music and regional music.
Television is the ultimate entertainment: More than half (55.22%) of the respondents
agree with the proposition. Given the multiplicity of entertainment sources, Mumbai is the least
bullish, while Chennai, Kanpur and Lucknow display the greatest enthusiasm, class C
respondents root more strongly for the proposition than class A and B respondents, access to the
entertainment opportunities in all probability being the deciding factor. Teenagers and young
Indians patronize music channels more than the 25-34 year olds. As expected, class A
respondents are less enthusiastic than class B and C respondents.
Questions for Discussion
What type of research study is this?
What are the limitations of this study?
Which sampling technique is used and Why?
44

CASE No. 5
LOREAL COMES OUT OF ITS NICHE
Just when most of the new multinational cosmetic players are taking a hard look at their
Indian business, the $12 billion French company, LOreal, is slowly and steadily making a
splash.If there is any serious competitor to the established Lakme-Lever it is LOreal, industry
watchers say.
Already, while most of the players have been reworking their India straegy, LOreal with
an estimated turnover of Rs.12 crore has been working to script. A script which has seen it
gradually unfurl a porfolio in the various categories of the Rs.1,300 crare Indian cosmetics
market. From shampoos to skin care to hair colour, it has naw taken competition head on with
Maybelline range of coloured cosmatics.
LOreals India strategy is simple: identify the gaps and plug them.Istead of launching a
clutch of the products at the same time, it gone in for a slow and steady, well-paced portfolio
expansion. After establishing an equity with premium products, it is naw attacking the mass
markets. Says Geoff Skingsley, Managing Director Indelor, the fully-owned subsidiary of the
LOreal group. Our strategy is largely product feature-driven.We are trying to introduce new
products and categories that are already existing in other markets.
In a way, LOreal used niche products to test the market before plunging headlong with
mass based brands. Like after the high priced skincare and haircare brands, the newly launched
Maybelline colour cosmetics is clearly competitively pitched. And this has got competition
worried. After Hindustan Lever, LOreal has the largest portfolio of brands which is making us
very alert to market demands, says a Lakme manager.
Worldwide, the LOreal group has over 900 brands in cosmetics alone. In fact, last year
cosmatics with
brands in haircare, skin care, make-up, suncare, toiletries
and perfumes
accounted for 81.3 per cent, of the turnover. This was followed by producers in pharma 17 per
cent, dermatology 1.1 per cent and others (0.6 per cent).
45

In India, too, cosmetics and toiletries has been their mainstay. This when competitors are
reshuffling porfolios or abandoning the m arket. A few monts ago, the $3.5 billion Benckiser
pulled out of India after slogging it out for four years.Recently, Modi Revlon deserted the
skincare an is reworking its marketing strategy to focus on colour cosmetics.It is also developing
the beauty parlour channel.Delhi-based Oriflame and Avons direct marketing strategy has not
made much of a dent with the customer.Most of these players have realised the need for
differentiated products at different price points to survive in the extremely fragmented Indian
market.
And LOreal hasent been in a great hurry. It has entered India with two of its mainline
umbrella brand--Laboratories Garnier and LOreal Paris. Lancome, another umbrella brand is
being imported and retails at some of the upmarkets stores in Mimbai and Delhi. But the launch
pad was Garniers Ultra Doux shampoo in 1991.
Today , the brand has only a one per cent in the Rs.350 crore shampoo category. This was
followed by the Garniers Synergie skin care range and the Excellence hair colour.
Says Binita Kripalani, Marketing director, Indelor,We decided to get into the skin care
because hair colour is difficult to manufacture and we would have had to import the product
which was no allowed, The foray into skin care helped build the distribution channelss and
establish the LOreal name. Apart from one of two basic moisturisers and a facewash, the
synergie range consisted of differential products like anti-wrinkle cream, day cream and night
wear cream.
By staying clear of the extremely competitive basic category, LOreal evolved-product
focus helped it gain a toe-hold in the Rs.650 crore skin care segment. It did so by launching only
non basic, special-benefit offerings.It concentrated on building entirely new categories according
to the needs that were tapped by continuous research. Says Skingsely,The degree of
persuasiveness required to build new categories based on entirely new products is immense.
46

Although Synergie has been able to garner only three per cent of the Rs.650 crore skin
care market, certain products in the line the wrinkle-free formulation is used by around one-third
of the two million targeted users. Says Skingsley,According to the needs tapped we have
launched a select portfolio of products and our effort is to create product feature-led categories.
There was a distinct need for an age-controlling product aming the 30-plus consumers in
the 12-15 million urban educated women segment.In this Rs. 165 crore niche segment, Lakme is
the market leader with a 32 per cent share.It is followed by synergie at 28 per cent and Ponds at
22 per cent.
Last year LOreal made a foray into the Rs.38 crore hair colour category. Internationally,
hair care accounts for 52 per cent of the entire LOreal portfolio. The Indian hair dye market was
largely dominated by Godrej which had 86 per cent market share and JK Helene Curtiss
Trutone, besides a range of herbal dye from the unorganised sector. Hair dye was perceived as an
undesirable but necessary product with no aspirational or pleasurable associations.
The LOreal strategy for hair colour was similar. Says Kriplain,Our objective was to
change the existing perceptions about hair colour and to expand the segment in India.Earlier hair
colour addressed only those who were greying but we wanted to expand the user-base to those
who used colour for style, Which meant appealing to entirely new users.
To make this happen, booklets and leaflets were given to retailers and around 50 sales
persons spent time educating the retailers about the products and destroying existing myths about
hair colour. Excellence cream and castings is naw available in around 4,000 retail outlets.
Currently the hair colour products have achieved around 11 per cent penetration in the category,
even as Godrej dominates the market with a share of 86 per cent.
47

Realising the opticism over such products and the lack of awareness and research on
category, LOreal decided to tap the influencers.Last year, it set up the salon division and
launched LOreal Professional. World over, the Professional Division was introduced to rope in
the beauty parlours hairdressers. This was not in keeping with their international trend of taking
the professional route before the consumer. Says Tarun Mehra, marketing manager, LOreal
professional,Beauty parlours and hair-dressers are more in touch with our target consumer and
to provide exclusivity of product portfolio we decided to launch separate brands under the
professional division.These products--Majirel,Diacolour and Osmose came under the hair colour,
hair care, perm and cutting categories.
Research conducted by the company reveald that there was a serious need for a technical
traning. So,LOreal decided to cultivate this very important channel through which they could
tap the beauty needs of their target segment, So far, LOreal has around 1,500 hair dressers
which stock its productsMajirel,Diacolour (non-ammonia which it launched recently), Perm
and hair care and Osmose conditioner. Osmose was launched when customers using LOreal
products expressed the need for a hair care shampoo or conditioner.
Having established a presence, LOreal has how positioned Maybelline as a
technologically superior product in the Rs.400 crore colour cosmetics market. Says
Kingsley,Quality aspirations of Indian consumers are same. The sub areas of sub differentiation
are price value perceptions, choice and the retail experience,Adds Sunita Bagard, group product
manager for Maybelline,The price premium is very reasonable given the value provided by each
of the products in the basket. In fact, it is the cheapest of all the new foreing brands and is
today, in the Rs.400 crore colour cosmetic market, Lakme, along with its sub-brands Elle 18 and
Orchids has a 52 per cent share. It is followed by Tips and Toes at seven per cent and Revlon at 3
per cent. In the next three years, LOreal wants to be the number one or two player of its product
categories. And it knows that taking on Lakme Lever is not going to be cakewalk.
48

What research design has been adopted for this study?
Prepare a sample questionnaire which might be used to collect data for this study?
49
MODULE 3
(SECONDARY
DATA)
50
Primary Data: Data originated by the researcher for the specific purpose of addressing the
research problem.
Secondary Data: Data collected for some purpose other than the problem at hand.
A COMPARISION OF PRIMARY AND SECONDARY

Primary Data
Secondary Data
Collection purpose
For the Problem at hand
For other Problems
Collection process
Very involved
Rapid and easy
Collection cost
High
Relatively low
Collection time
Long
Short
Disadvantages of secondary data:

Because secondary data have been collected for purpose other than the problem at hand,
their usefulness to the problem may be limited in several important ways, including relevance
and accuracy. The objectives, nature and methods used to collect the secondary data my not be
appropriate to the present situation. Also, secondary data may not be accurate or they may not be
completely current or dependable.
51
CRITERIA FOR EVALUATING SECONDARY DATA

Criteria
Issues
Remarks
Specifications and
Data collection method
Data should be reliable, valid
Methodology
Response rates
and generalizable to the
Quantity of data
problem at hand.
Sampling Techniques
Sample size
Questionnaire design
Field work
Data analysis
Error and accuracy
Examine errors in approach,
Assess accuracy by comparing
research design, sampling, data
data from different sources.
collection, data analysis, reporting.

Currency
Time lag between collection and
Census data are periodically
publication
updated by syndicated firms.
Frequency of updates
Objective
Why were the data collected?
The objective will determine

the relevance of data.
Nature
Definition of key variables
Reconfigure the data to
Units of measurement
increase their usefulness, if
Categories used
possible.
Relationships examined
Dependability
Expertise, credibility, reputation
Data should be obtained from
and trustworthiness of the source.
an original rather than an

acquired source.
52

CRITERIA FOR EVALUATING SECONDARY DATA
1. Specifications: Methodology Used to Collect the Data
The specifications or the methodology used to collect the data should be critically
examined to identify possible source of bias. Such methodological considerations include
size and nature of sample, response rate and quality, questionnaire design and
administration, procedures used for field work, and data analysis and reporting
procedures. These checks provide information on the reliability and validity of the data
and help determine whether they can be generalized to the problem at hand.
2. Error: Accuracy of Data

The researcher must determine whether the data are accurate enough for the
purpose of the present study. Secondary data can have number of sources of error, or
inaccuracy, including errors in the approach, researcher design, sampling, data collection,
analysis and reporting stages of the project. Moreover, it is difficult to evaluate the
accuracy secondary data, because the researcher did not participate in the research. One
approach is to find multiple sources of data and compare them using standard statistical
procedures.
3. Currency: When the Data Were Collected

Secondary data may not be current, and the lag between data collection and
publication may be long, as in the case with much census data. Moreover, the data may
not be updated frequently enough for the purpose of problem at hand. Marketing research
requires current data; therefore the value of secondary data is diminished as they become
dated.
4. Objective: The Purpose for Which the Data Were Collected

Data are invariably collected with some objective in mind and fundamental
question to ask is, why were the data collected in first place? The objective for
collecting data will ultimately determine the purpose for which that information is
relevant and useful. Data collected with a specific objective in mind may not be
appropriate in another situation.
53

5. Nature: The Content of the Data
The nature, or content, of the data should be examined with the special attention to
the definition of key variables, the units of measurement, categories used, and the
relationships examined. If the key variables have not been defined or are defined in
manner inconsistent with the researchers definition, then the usefulness of the data is
limited. Consider, for example, Secondary data on consumer preferences for TV
programs. To use this information, it is important to know how the preference for
programs was defined. Was it defined in terms of programs watched most often, the one
considered most needed, most enjoyable, most informative or the program of greatest
service to the community?
Likewise, secondary data may be measured in units that may not be appropriate
for the current problem. For example, Income may be measured by individual, family,
household or spending unit and could be gross or net after taxes and deductions. Income
may be classified into categories that are different from research needs. If the researcher
is interested in high income consumers with gross income household incomes of over
$90,000, secondary data with income categories of less then $15,000, $15,001-$35,000,
$35,001-$50,000 and more than $50,000 will not be of much use.
54

6. Dependability: How Dependable Are the Data?
An overall indication of the dependability of data may be obtained by examining
the expertise, credibility, reputation and trustworthiness of the source. This information
may be obtained by checking with others who have used the information provided by
source. Data published to promote sales, to advance specific interests or to carry on
propaganda should be viewed with suspicion. The same may be said of data published
anonymously or in the form which attempts to hide the details of the data collection
methodology and process. It is also pertinent to examine whether the secondary data
came from original source, one that generated the data or an acquired source, one that
procured the data from an original source.
As a general rule, secondary data should be
secured from an original rather than an acquired source. There are at least two reasons for
this rule: First, an original source is the one that specifies the details of data collection
methodology. Second, an original source is likely to be more accurate and complete then
secondary source.
CLASSIFICATION OF SECONDARY DATA
Secondary Data
Internal
Ready to use
External
Requires
further
processing
Published
Materials
Computerised
Databases
Syndicated
Services
55

Internal Data are those generated within the organisation for which the research is being
conducted. This information may be available in a ready-to-use format, such as information
routinely supplied by management decision support system. On the other hand, these data may
exist within the organization but may require considerable processing before they are useful to
the researcher.
External Data, on the other hand, are those generated by sources outside the organization. These
data may exist in the form of published material, on-line databases or information made available
by syndicated services.
INTERNAL SECONDARY DATA

Internal sources should be the starting point in the search for secondary data. Because
most organizations have a wealth of in-house information, some data may be readily available.
Secondary internal data have two significant advantages. They are easily available and
inexpensive. In fact, internal secondary sources are generally the least costly of any source of
marketing research information; yet these data often are not fully exploited.
Database Marketing
Database marketing involves the use of computers to capture and track customer profiles
purchase detail. This secondary information serves as the foundation for marketing programs or
as an internal source of information related to customer behaviour.
To remain competitive, companies have come to realize the importance of providing
customized services and product solutions. To operate at the individual customer level (some
times called micromarketing level) requires an understanding of the significant differences in
various customer groups. Direct mail is the promotional tool that relies most heavily on internal
secondary databases for program design and evaluation. Segmenting a customer base to offer and
measure response to customized promotional messages, product offerings or payment and
pricing packages is the foundation of direct marketing techniques used today in business.
56
PUBLISHED EXTERNAL SECONDARY SOURCES
PULISHED
SECNDARY DATA
General business
sources
Guides
Directories
Indexes
Government
sources
Statistical
data
Census Data
Other
Government
publications
Published external sources may be broadly classified as general business data or

government data. General business sources comprise guides, directories, indexes and statistical
data. Government sources may be broadly categorized as census data and other publications.
General Business Data: Businesses publish a lot of information in the form of books,
periodicals, journals, news papers, magazines, reports and trade literature. This information can
be located by using guides, directories and indexes. Sources are also available for identifying
statistical data.
Guides: guides are an excellent source of standard or recurring information. A guide may help
identify other important sources of directories, trade associations and trade publications. Guides
are one of the first sources a researcher should consult.
57

Directories: Directories are helpful for identifying individuals or organizations that collect
specific data.
Indexes: It is possible to locate information on a particular topic in several different publications

by using an index. Indexes can, therefore, increase the efficiency of the search process.
Non government statistical data: published statistical data of great interest to researchers.
Graphic and statistical analysis can be performed on these data to draw important insights.
COMPUTERIZED DATABASES:
Online Databases: Databases, stored in computers that require a telecommunications network to
access.
Internet Database: Internet database can be accessed, searched and analyzed on the internet. It is
also possible to download data from the internet and store it in the computer or an auxiliary
storage device.
Off-line databases: Databases that is available on diskette or CD-ROM.
SYSNDICATED SOURCES OF SECONDARY DATA

Syndicated Services: Information services offered by marketing research organizations that
provide information from a common database to different firms that subscribes to their services.
58

A CLASSIFICATION OF SYNDICATED SERVICE
Units of
Measurement
Institutions
Households/
Consumer
Mail Diary
Panels
Retailers
Wholesalers
Industrial Firms
Audits
Purchas
e
Electronic
Scanner Services
Surveys
Psychographic
and Lifestyles
Media
General
Advertising
Evaluation
Volume
Tracking Data
Direct
Inquiries
Secondary
Diary Panels
Clipping
Services
Corporate
Reports
Scanner
Secondary
Diary Panels
Diary
with Cable
PanelsTV
SYNDICATED DATA FROM HOSEHOLDS

Surveys: Interviews with a large number of respondents using a predesigned questionnaire.
Psychographics: Quantified psychological profile of individuals.
Lifestyle: A lifestyle may be defined as a distinctive pattern of living that is described by the
activities people engage in, the interest they have and the options they hold of themselves and the
world around them.
59
Type
OVER THE SYNDICATED SERVICES

Characteristics
Advantages
Disadvantages
Uses
Surveys
Surveys conducted at
regular intervals
Most flexible way

of obtaining data;
information on
underlying motives
Interviewer error;
respondent errors
Market segmentation,
advertising theme
selection and advertising
effectiveness
Diary
Purchase Panel
Households provide
specific information
regularly over an
extended period of
time; respondents
asked to record
specific behaviors as
they occur.
Recorded purchase
behavior can be
linked to the
demographic/
psychographic
characteristics.
Lack of
representativeness;
response bias;
maturation.
Forecasting sales, market

share, and trends;
establishing consumer
profiles, brand loyalty and
switching; evaluating test
markets, advertising and
distribution.
Diary Media
Panels
Electronic device
automatically
recording behavior,
supplemented by a
diary.
Same as dairy
purchase panel.
Same as diary
purchase panel.
Establishing advertising
rates; selecting media
program or air time;
establishing viewer
profiles.
Scanner
volume
tracking data
Household purchases
are recorded through
electronic scanners in
supermarkets.
Data reflect actual

purchases; timely
data less expensive.
Price tracking, modeling

and effectiveness of
in-store promotion.
Scanner diary
panels with
Cable TV
Scanner panels of
households that
subscribe to cable
TV.
Audit Service
Verification of
product movement
by examining
physical records or
performing inventory
analysis.
Data reflect actual

purchases; sample
control; ability to
link panel data to
household
characteristics.
Relatively precise
information at the
retail and wholesale
levels.
Data may not be

representative; error in
recording purchases;
difficult to link
purchases to elements
of marketing mix other
than price.
Data may not be
representative; quality
of data limited.
Coverage may be
incomplete; matching
of data on competitive
activity may be
difficult.
Measurement of
consumer sales and
market share, competitive
activity, analyzing
distribution patterns:
tracking of new products.
Promotional mix
analyses, copy testing,
new-product testing,
positioning.
60

Industrial
product
syndicated
services
Data banks on
industrial
establishments
created through
direct inquiries of
companies, clipping
services and
corporate reports.
Important source of
information on
industrial firms,
particularly useful
in initial phase of
the projects.
Data is lacking in
terms of content,
quantity and quality.
Determining market
potential y geographic
area, defining sales
territories, allocating
advertising budget.
Diary Panels
Diary Purchase Panels: A data gathering technique in which respondents record their purchases
in a diary.
Diary panels are samples of respondents who provide specified information at regular
intervals over an extended period of time. These respondents may be organizations, households
or individuals, although household diary panels are most common. The distinguishing feature of
diary panes is that the respondents record specific behavior as they occur in a diary. Panel
members are compensated for their participation with gifts, coupons, information or cash.
Diary media Panels: A data gathering technique comprising samples of respondents whose
television viewing behavior is automatically recorded by electronic devices, supplementing the
purchase information recorded in diary.
Scanner data: Data obtained by passing merchandise over a laser scanner, which reads the UPC
code from the packages.
Volume Tracking Data: Scanner data that provides information on purchases by brand, size,
price and flavor or formulation.
61

Scanner Diary Panels: Scanner data collected from panel members identified by an
identification card allowing each panel members purchases to be stored with respect to the
individual shopper.
Scanner Diary Panels with Cable TV: The combination of a scanner diary panel with
manipulations of the advertising that is being broadcast by cable television companies.
Audit: A data collection process derived from physical records or performing inventory analysis.
Data are collected personally by the researchers or by representatives of the researchers and the
data are based on counts usually of physical objects other than people.
62
MODULE 4
(PRIMARY
DATA)
63

SURVEY METHODS
Survey Method: A structured questionnaire given to a sample of population and designed to
elicit specific information from respondents.
The survey method of obtaining information is based on the questioning of respondents.
Respondents are asked a variety of questions regarding their behavior, intentions, attitudes,
awareness, motivations, and demographic and lifestyle characteristics. These questions may be
asked verbally, in writing, or via computer, and the responses may be obtained in any of these
forms. Typically, the questioning is structured, meaning some standardization is imposed on the
data collection process. In structured data collection, a formal questionnaire is prepared and
the questions are asked in a pre-arranged order; thus the process is also direct. Whether research
is classified as direct or indirect is based on whether the true purpose is known to the
respondents.
Advantages of Survey Method
The questionnaire is simple to administer.
The data obtained are reliable because the responses are limited to the alternatives stated.
The use of fixed-response questions reduces the variability in the result that may be
caused by differenced in interviewers.
Coding, analysis, and interpretation of data are relatively simple.
64

Disadvantages of Survey Method
The respondents may be unable or unwilling to provide the desired information. For
example, consider questions about motivational factors.
Respondents may not be
consciously aware of their motives for choosing specific brands or shopping specific
department stores.
Therefore, they may be unable to provide accurate answers to
questions about their motives.

Respondents may be unwilling to respond if the information requested is sensitive or
personal.
Structured questions and fixed-response alternatives may result in loss of validity for
certain types of data such as beliefs and feelings.
Wording questions properly is not easy.
SURVEY METHODS CLASSIFIED BY MODE OF ADMINISTRATION

Survey Methods
Telephone
Interviewing
Traditional
Telephone
In-Home
Computer Assisted
Telephone Interviewing
Electronic
Interviewing
Mail
Interviewing
Personal
Interviewing
E-mail
Computer-Assisted
Personal
Interviewing
Mall-Intercept
Mail
Internet
Mail Panel
65

A COMPARATIVE EVALUATION OF 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.
The personal
interview; whether conducted in-home or as mall-intercept interview, allows the highest

flexibility if data collection. Because the respondent and the interviewer meet face to face, the
interviewer can administer complex questionnaires, explain and clarify difficult questions and
even utilize unstructured techniques.
The traditional telephone interview, by contrast, allows only moderate flexibility, because
it is more difficult to use unstructured techniques, ask complex questions, or obtain in-depth
answers to open-ended questions over the telephone.
Internet allows somewhat greater
flexibility because the questionnaire is administered in an interactive mode. Because these

modes do not allow for interaction between the interviewer and the respondent, mail surveys,
mail panels, e-mail surveys have low flexibility.
An often-overlooked benefit of Internet survey research is the ease with which an internet
survey can be quickly modified.
For example, early data returns may suggest additional
questions that should be asked. Changing or adding questions on the fly would be nearly
impossible with a mail questionnaire and difficult with personal or telephone questionnaires, but
can be achieved in a matter of minutes with some Internet Survey system.
66

Diversity of Question
The diversity of questions that can be asked in a survey depends on the degree of
interaction, the respondent has with the interviewer and the questionnaire, as well as the
respondents ability to actually see the questions. A wide variety of questions can be asked in a
personal interview because the respondents can see the questionnaire and an interviewer is
present to clarify ambiguities. Thus in-home, mall intercept allow for diversity. In Internet
surveys, multimedia capabilities can be utilized and so the ability to ask a diversity of questions
is moderate to high, despite the absence of an interviewer. In mail surveys, mail panels and email surveys, less diversity is possible. In traditional telephone interviews, the respondent
cannot see the questions while answering and this limits the diversity of questions. For example,
in a telephone interview, one could not ask respondents to rank 15 brands of automobiles in
terms of preference.
Use of Physical Stimuli

Often it is helpful or necessary to use physical stimuli such as the product, a product
prototype, commercials, or promotional displays during the interview.
For the most basic
example, a taste test involves tasting the product. In other cases photographs, maps or other
audio-video cues are helpful. In these cases, personal interviews conducted at central locations
(mall-intercept) are preferable to in-home interviews. Mail surveys and mail panels are moderate
on this dimension, because sometimes it is possible to mail the facilitating aids or even product
samples.
Internet surveys are also moderately suitable.
Because they are web based, the
questionnaires can include multimedia elements such as prototype web pages and
advertisements. The use of physical stimuli is limited in traditional telephone interviews and as
well as in e-mail surveys.
67

Sample Control
Sample control is the ability of the survey mode to reach the units (e.g., individuals,
households) specified in the sample effectively and efficiently. At least in principle, in-home
personal interviews offer the best sample control. It is possible to control which sampling units
are interviewed, who is interviewed, the degree of participation of other members of the
household, and many other aspects of data collection. In practice, to achieve a high degree of
control the in-home researcher has to overcome several problems.
It is difficult to find
respondents at home during the day as most people work outside the home. Also, for safety
reasons, interviewers are reluctant to venture into certain neighborhoods and people have
become cautious of responding to stranger at the door.
Mall-intercept interviews allow only a moderate degree of sample control. While the
interviewer has control over which respondents to intercept, the choice is limited to mall
shoppers and frequent shoppers have a great probability of being included. Also, potential
respondents can intentionally avoid or initiate contact with the interviewer.
Moderate to high sampling control can be achieved with traditional telephone interviews
and telephones offer access to geographically dispersed respondents and hard-to-reach areas.
These procedures depend on sampling frame-a list of population units with their telephone
numbers.
The sampling frames normally used are telephone directories, but telephone
directories are limited in that:

Not everyone has a phone.
Some people have unlisted numbers.
Directories do not reflect new phones in service or recently disconnected phones.
68

Control of the data collection environment
Degree of control a researcher has over the environment in which the respondent answer
the questionnaire is another factor that differentiates the various survey modes.
Personal
interviews conducted at central locations (mall-intercept) offer the greatest degree of

environmental control.
For example, the researcher can set up a special facility for
demonstrating the product. In-home personal interviews offer moderate to high control because
the interviewer is present. Traditional telephone offer moderate control. The interviewer cannot
see the environment in which the interview is being conducted, but he or she can sense the
background conditions and encourage the respondent to be attentive and involved. In mail
surveys, panels, e-mail and internet surveys, the researcher has little control over the
environment.
Control of Field Force

Field force: the field force is interviewers and the supervisors involved in data collection.
The field force consists of interviewers and supervisors involved in data collection.
Because they require no such personnel, mail surveys, mail panels, e-mail and internet surveys
eliminate field force problems. Traditional telephone interviews and mall intercept, all offer
moderate degree of control because the interviews are conducted at a central location, making
supervision relatively simple.
In-home personal interviews are problematic in this respect.
Since many interviewers work in many different locations, continual supervision is impractical.
Quantity of Data
In-home personal interviews allow the researcher to collect a large amount of data. The
social relationship between the interviewer and respondents, as well as the home environment,
motivates the respondent to spend more time in the interview. Less effort is required of the
respondent in a personal interview than in telephone or mail interview. The interviewer records
answers to open-ended questions and provides visual aids to help with lengthy and complex
69

scales. In contrast to in-home interview and mall-intercept provide only moderate amount of
data. Because these interviews are conducted in shopping malls and other central locations, the
respondents time is more limited.
Mail surveys also yield moderate amount of data. Fairly long questionnaires can be used,
because short questionnaires have not been shown to generate a higher response rates than long
ones. The same is to for e-mail and internet surveys, although the internet is a better medium in
this respect. Mail panels, on other hand, can generate large amounts of data because of the
special relationship between the panel members and sponsoring organization.
Traditional telephone interviews result in the most limited quantities of data. They tend
to be shorter than other surveys, because respondents can easily terminate the telephone
conversations at their own discretion.
Response Rate
Response Rate: the percentage of the total attempted interviews that are completed.
Survey response rate is broadly defined as percentage of the total interviews that are
completed. Personal in-home, mall-intercept, and computer-assisted interviews yield the highest
response rate (typically more than 80 percent). Problems caused not-at-homes can often be
resolved by calling back at different times. Telephone interviews, traditional yield response rates
between 60 and 80 percent. These modes also suffer from no-at-homes or no-answers. Higher
response rates are obtained by call backs. Many telephone surveys attempt to call back at least
three times.
Mail surveys have poor response rates.
In a mail survey of randomly selected
respondents, without any pre or post mailing contact, the response rate is typically less than 15
percent. Such low response rate can lead to serious bias (non-response bias) because whether a
person responds to a mail survey is related to his/her interests in a topic. Response rates in mail
panels are typically in the 70-80 percent range, because of assured respondent co-operation.
70

Internet surveys have the poorest response rates, even lower than e-mail surveys. This is
due to the fact that some respondents may have access to e-mail but not to the web, and
accessing the web requires more effort and skill. Furthermore, respondents generally need to be
connected to the internet while completing a web survey; they may not be off-line, as with the email survey. If the respondents are pre-recruited, they have to log on to a Website. Many are
unwilling to undertake this effort.
Perceived anonymity
Perceived anonymity refers to respondents perceptions that their identities will
not be discerned by the interviewer or the researcher. Perceived anonymity of the respondent is
high in mail surveys, mail panels and internet surveys because there is no contract with an
interviewer while responding. It is low in a personal interviews (in-home, mall-intercept) due to
face-to-face contact with the interviewer. Traditional telephone interviews fall in the middle. It
is also moderate with e-mail while there is no contact with the interviewer, respondents know
that their names can be located on the return e-mail.
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. As mail surveys, mail panels and internet surveys do
not involve any social interaction between the interviewer and the respondent, they are least
susceptible to social desirability.
Traditional telephone interviews are moderately good at
avoiding socially desirable responses. They are good for obtaining sensitive information, as the
respondents have the perception that they are not committing to anything in writing over the
telephone. E-mail is only moderately good for controlling social desirability and obtaining
sensitive information given the respondents awareness that their names can be located on the
return e-mail. Personal interviews, whether in-home, mall-intercepts or computer-assisted, are
limited in this respect, although the problem is somewhat mitigated in the case of computerassisted interviews.
71

Potential for Interviewer Bias
An interviewer can bias the results of a survey by the manner in which he/she:
Selects respondents (interviewing somebody else when required to interview the male
head of household).
Asks each questions (omitting questions) and
Records answers (incorrectly or incompletely).
The extent of the interviewers role determines the potential for bias. In-home and mallintercept personal interviews are highly susceptible to interviewer bias. Traditional telephone
interviews are less susceptible, although the potential is still there. For example, with inflection
and tone of voice, interviewers can convey their own attitudes and thereby suggest answers.
Mail surveys, mail panels, e-mail and internet surveys are free of it.
Speed
First, there is the speed with which a questionnaire can be created, distributed to
respondents, and the data returned.
Because printing, mailing and date keying delays are
eliminated; data can be in hand within hours of writing an internet questionnaire. Data are
obtained in electronic form, so statistical analysis software can be programmed to process
standard questionnaires and return statistical summaries and charts automatically. Thus, the
internet is by far the fastest method of obtaining data from a large number of respondents. The
e-mail survey is also fast; although slower than internet since greater time is needed to compile
an e-mail list and data entry is also required.
Traditional telephone interviews are also fast ways of obtaining information. When a
central telephone facility is used, several hundred telephone interviews can be done per day.
Data for even large national surveys can be collected in two weeks or less. Next in speed are
mall-intercept, which reach potential respondents in central locations.
In-home personal
interviews are slower, because there is dead time between interviews while the interviewer
travels to the next respondent. To expedite data collection, interviews can be conducted in
72

different markets or regions simultaneously. Mail surveys are typically the slowest. It usually
takes several weeks to receive completed questionnaires; follow up mailings take even longer.
Mail panels are faster than mail surveys, because little follow up is required.
Cost
For large samples, the cost of internet surveys is the slowest. Printing, mailing, keying
and interviewer costs are eliminated, and the incremental costs per respondent are typically low,
so studies with large number of respondents can be done at substantial savings compared to mail,
telephone or personal surveys. Personal interviews tend to be the most expensive mode of data
collection per completed response.
In general, internet, e-mail, mail surveys, mail panel,
traditional telephone, mall-intercept and personal in-home interviews require progressively larger
field staff and greater supervision and control. Hence, the cost increases in this order. However,
relatively costs depend on the subject of inquiry and the procedures adopted.
73

A COMPARATIVE EVALUATION OF SURVEY METHODS
Criteria
Telephone
Flexibility
Moderate
of data
to high
In-home
High
Mall-
Mail
intercept
surveys
High
Low
E-mail
Internet/web
Low
Moderate to
high
collection
Diversity of
Low
High
High
moderate
Moderate
questions
Use of
Moderate to
high
Low
Moderate
High
Moderate
Low
Moderate
Moderate
Low
Low
Low to
to high
physical
stimuli
Sample
Moderate
Potentially
control
to high
high
Control of
Moderate
Moderate
moderate
High
Low
Low
Low
to high
data
collection
environment
Control of
Moderate
Low
Moderate
High
High
High
Low
High
Moderate
Moderate
Moderate
Moderate
Moderate
High
High
Low
Low
Very low
field force
Quantity of
data
Response
rate
74

Criteria
Perceived
Telephone
In-home
Mall-
Mail
intercept
surveys
E-mail
Internet/web
Moderate
Low
Low
High
Moderate
High
Moderate
High
High
Low
Moderate
Low
High
Low
Low
High
Moderate
High
Moderate
High
High
None
None
None
High
Moderate
Moderate
Low
High
Very high
Low
Low
Low
anonymity
of the
respondent
Social
desirability
Obtaining
sensitive
information
Potential for
interviewer
bias
Speed
to high
Cost
Moderate
High
Moderate
to high
75

EXPERIMENTAL ENVIRONMENT
Experimental environments can be classified according to the level of artificiality or
realism that they contain. Artificiality involves eliciting behaviour from the respondents in a
situation that is different from the normal situation in which that behaviour would occur. Thus, a
taste test in which respondents are brought to a firms product development laboratory, given
three different versions of a soft drink in glasses labelled L, M and P and asked of which
versions, if any, they would like to receive a free carton, contains a high degree of artificiality.
At the other extreme, the three versions could be introduced into a number of
stores or geographic areas accompanied by regular P-O-P displays, advertising and pricing.
Such an experiment is characterized by a high degree of realism.
The first study described represents a laboratory experiment, whereas the second
represents a field experiment. Laboratory experiments are characterized by a relatively high
degree of artificiality. Field experiments have a relatively high level of realism. A given
experiment may fall anywhere along this artificiality-realism continuum.
Those nearer the
artificiality end are termed laboratory experiments and those nearer the realism end are termed
field experiments.
LABORATORY EXPERIMENTS
Laboratory experiments tend to cost substantially less in terms of resources and time than
field experiments. Further, they enable a company to minimize the chance that competitors will
learn of its new ideas. This has led many researchers to utilize laboratory experiments in the
early stages of their research projects when they are concerned with developing one or a limited
number of advertisements or products. Then, if the costs and risks warrant it, these versions are
subjected to further tests in field experiments. Appropriately designed laboratory experiments
are also sometimes used as the final step before market introduction.
76

Applications of Laboratory Experiments
Package Tests: packages must attract attention and convey information and image about the
brand. Eye tracking and other physiological responses are also used to test package designs.
Advertising Tests: the tachistoscope is a slide projector with adjustable projections speeds and
levels of illumination. Ads can be flashed on a screen with exposure times down to a small
fraction of a second with varying levels of light. Ads are tested to determine at which speeds
elements such as the product, brand and headline are recognized.
Another laboratory environment for testing television commercials is to simulate an
exposure on television by showing the commercials with a new television program to a theatre
audience. Pre and post exposure attitudes and/or preferences are measured and the difference is
taken as a measure of the effectiveness of the ad.
Product Tests: laboratory tests are widely used in the early stages of product development.
Various versions of products that can be readily evaluated by consumers such as foods,
beverages and most personal care items are routinely subjected to blind use tests (consumers
rate performance without knowing the brand name) against each other and competitors.
77

FIELD EXPERIMENTS
Field experiments are characterized by a high degree of realism.
The typical manner of
obtaining this realism in marketing studies is to vary the independent variable in the market
place. Unfortunately, field experiments are also characterized by a relative lack of control.
For example, many field experiments require co-operation from wholesalers and/or
retailers. However, this co-operation is often difficult to secure. Retailers who have a policy of
price cutting may refuse to carry a product at the specified price, or they may be reluctant to
assign prime shelf-facings to an untried product.
Control of extraneous variables is even more difficult. Such factors as bad weather,
strikes in pertinent industries and campaigns by competitors are beyond the control of the
researcher. In fact, such events may occur without the researcher becoming aware of them.
This lack of control reduces the replicability or internal validity of field experiments.
However, their real world setting tends to increase their generalizability or external validity.
TEST MARKETING
Test Marketing represents a particular type of field experiment that is often conducted in
conjunction with the development of the new consumer product. Test marketing involved the
duplication of the planned national marketing program for a product in one or more geographical
areas (usually cities). Often, differing levels of marketing mix variable are used in the test
markets to help management isolate the best combination for the national introduction.
The two primary goals of most test market programs are the determination of the market
acceptance of the product and the testing alternative marketing mixes. A major additional value
comes from altering management to unsuspected problems and opportunities associated with the
new product.
There are four basic types of market tests: standard, controlled, electronic, and
simulated.
78

A standard market test is one in which a small sample of market areas usually cities
is selected and the product is sold though regular distribution channels, using one or more
combination of product, price, package and advertising testing.
Advantages of Standard test Markets.
1. High cost of new-product failure coupled with the difficulty of projecting new-product
success (or other marketing mix changes) without standard test markets.
2. Trade (retailer and/or wholesaler) support is also tested. Products or brands that cannot
achieve shelf facing are unlikely to succeed even if consumers find them superior to those
of the competitions.
A standard test market is the only method that measures sales force and trade response on
such key dimensions as:
Time to achieve target distribution levels
Actual versus planned distribution including stockouts
Actual pricing, shelf space allocation, and so forth versus target
Deal level and slotting allowance required to obtain distribution
Sales force involvement and commitment.
Disadvantages of Standard test Markets.

1. Standard market tests take a long time. Not only do most tests run 1218 months, but the
sales post must also spend 2-3 months selling the product through the distribution
channel before the consumer test can begin.
2. In the most test markets only two or three versions of the overall marketing mix are
tested. Thus, the fact that the test versions do not prove successful (in terms of
managements expectation) may not leave a clear-cut basis for eliminating other versions
of total product offering.
3. Firms routinely take direct actions, such as lowering their prices, increasing their
advertising or even buying large quantities of the test product, to disrupt a competitors
test marketing program. This is commonly called jamming.
79

4. Any market test is likely to alert competitors to the existence of the new product and its
planned promotion. This allows to competitors to begin to prepare their own versions of
the product or to prepare the other strategies. In addition, it is often possible for
competitors to gain as much information from the test as the sponsoring firm because
most test cities are included in various store adding or scanning programs, to which many
firms subscribe. An accurate reading of a competitors test market may allow a firm to
match or beat it to the national market.
ControlledStore and Minimarket Tests

In controlledstore and minimarket tests, a market research firm handles all the
warehousing, distribution, pricing, shelves and stocking. The research firm typically pays the
outlets to let it place the product in their stores.
In controlledstore test a few outlets in several areas are utilized. A minimarket test
involves enough outlets to represent a high percentage of the allcommodity sales volume in
modest size city)
In controlledstore tests, media advertisement typically cannot be used because of the
limited distribution if the product. The minimarket test overcomes this problem but increase the
cost and visibility of the test.
These methods offer several important advantages over standard test market. First, it is
difficult for competitors to read the test results since the research company is the only source
of sales data. Second, the tests are somewhat less visible to competitors, though most controlled
stores and minimarkets are actively observed. Third, they are substantially faster since no need to
improve the product through a distribution channel. Finally, they are much less expensive than
standard test markets.
80

Drawback
First, the limited number of stores and/or the small size of the communities involved
make projection of the results difficult. Second, these tests do not allow an estimate of the level
of support the trade will give a product. If wholesalers will not push the product, or if retailers
will not give it shelf space, it will seldom succeed. These tests provide no information on this
critical component. Finally, the fact that the research firms ensure nearoptimal positioning in
each store, no stockouts, adequate shelffacings, correct use of P-O-P materials and so forth
produces a situation very different from that typically encountered during the national
introduction.
Electronic Test Markets

Electronic test markets (ETMs) have become an important part of the test marketing.
ETMs operate like minimarket tests, except that the researcher firm has (1) the ability to collect
ongoing scanner-based sales data from the major food and drug outlets in the area, and (2) a UPS
scanner-based household panel that also has its television viewing monitored electronically.
ETMs are used to test new products and, even more commonly, advertising levels and
themes. They allow relatively precise measurement of individual households purchasing and
television-viewing behaviour. They also provide reasonable control over individual households
television commercial exposure as well as recipient of direct mail ads and coupons. Their
disadvantages are the same as those associated with the minimarket tests, with additional
concerns about the representativeness of the electronic diary market (because the high refusal
rate of those asked to join the panels) and the small size of the towns involved.
81

Simulated test Market
Advantages
STMs are fast, economical, confidential, easily controllable and capable of substantial
geographic spread.
Disadvantages
They do not measure trade, response, competitors reactions or implementation difficulties.
82
CASES
83

CASE No. 6
TASTY FOOD LIMITED
Tasty Food Ltd. is engaged in the manufacture of different food products. Its R and D
Department has recently come out with a new soya bean snack. The main strength of this project
is the highly nutritious value of protein-rich soya beans.
While the R and D Department is happy to have developed a highly nutritious snack
especially useful for children, the company management wants to be certain that the new snack
will have a good market in the country. In order to ensure that the new snack will have a good
market in the country. In order to ensure that the new product is successfully launched in the
market, the Managing Director (MD) is thinking of hiring the professional services of a
Marketing Research Agency (MRA). In consultation with the MRA, the MD decided to convene
a meeting of Marketing Manager (MM), Production Manager (PM) and the MRA, to be
represented by its chief executive. The meeting was held in MDs chamber and it turned out to
be a prolonged session.
A few excerpts from the discussions held in that meeting are given below:
MD: I feel certain that out new Soyabean snack is going to be very successful in the market.
The project is unique in the sense that no soya bean based snack is presently available in the
market. In view of this, test marketing of this product seems rather unnecessary to me. We can
do without it. Moreover, it will save a good deal of time as the new product can be introduced in
the market almost immediately.
PM:
I fully support the views expressed by our MD. Let me emphasize that our R and D
Department has taken considerable pains in developing this new product. It has come through a
long succession of concept and product tests. Test marketing would obviously delay the process
of marketing the product.
MM: Since our new product is going to be our major achievement, it is desirable to have
detailed information about it. It will be to our advantage if we know our consumer target and
their major characteristics.
84

MRA: I know some cases where a new product was regarded as a strong product by the R and
D and the Production Department. But when it was commercially launched, it turned out to be a
failure. The concerned companies learnt a bitter lesson. I am of the opinion that the product in
question must be test marketed to avoid any such disappointment at a later stage.
MD: Suppose we decide to go in for test marketing, what are we going to get from such an
exercise? We must be clear as to what test marketing is expected to do for us.
MRA: The MD has raised a basic question. The company must be clear about the objectives of
test marketing. Are you looking at test marketing to decide whether the new product should be
launched nationally or not? Alternatively, are you looking at it as a rehearsal before an e
extensive launch? This means that you are interested in knowing what is likely to go wrong and
how this can be prevented/improved.
MM: I think both these objective mentioned by MRA are relevant in our cases. In fact, the
results of test marketing will indicate whether we should launch the product nationally or drop it
altogether. I think it is advisable to decide the nature of information to be collected so that the
test marketing can be really helpful to us.
MD: Let us then have test marketing. But before it is undertaken, we must specify our data
requirement. I suggest the MRA and MM should meet and discuss this fully.
QUESTIONS
What data would you collect in the test market?
How would you collect the required data?
How would you analyze the test market data? Be specific.
85

CASE No. 7
THE DENTAL CLINIC
A leading dental clinic with three well-qualified dentists in seriously considering to keep
in touch with its patients as also to promote its business. Normally, the clinic recommends halfyearly check-up to all those who avail its services.
The clinic has got two types of cards as shown below:
Card 1
Dear Patient
It is advisable to have a six-monthly check-up. May 1 remained you that it is time for you
to have a preventive dental examination?
Please ring up the clinic for an early appointment.
Card 2
Dear Patient
As you know, it is advisable for everyone to have a six-monthly dental check-up as a
preventive measure. Dont forget that your teeth are a part of your looks. It is our endeavor not
only to see your smiling face but to ensure that your teeth add grace to your looks. You are
requested to ring up the clinic for an early appointment.
86

The dental clinic has decided to undertake an experiment in this regard. There are four
experimental groups: (i) patients who visited the clinic in January were given Card 1 (to return in
June) and were asked to fill it in their own handwriting; (ii) patients who visited the clinic in
February were given Card 2 (to return in July) and were asked to fill it in their own handwriting;
(iii) patients who visited the clinic in March received Card 1 which was typed out (to return in
August); and (iv) patients who visited the clinic in April received Card 2 which was typed out (to
return in September).
QUESTIONS
Specify the type of experimental design in this case.
Evaluate this experimental design.
An you improve this design? If so, suggest improvements.
87

CASE No. 8
WELCOMGROUP HOTELS
The Welcomgroup owns a chain of 20 hotels located in different parts of the country. In
recent years, it has been expanding the chain by setting up new hotels.
When there were only a few hotels, the Managing Director of the Welcomgroup used to
personally visit them with a view to ensuring that they provided high quality food and service to
their patrons. But now he finds that with so many hotels it is extremely difficult to personally
visit each and every hotel. At the same time, he needs some mechanism to ensure that hotels of
the chain continue to provide high quality service.
The Managing Director has discussed this problem with some senior officials of the
company. As a result of this discussion, he feels that:
Option 1: A suitable questionnaire may be designed and the same may be given to guests during
their stay in the hotels. They may be requested to return the filled-in questionnaire at the
reception counter while leaving the hotels.
Option 2: A suitable questionnaire may be designed and the same may be posted to their homes
soon after they have reached there with the request that these be returned, duly filled in, by post.
Option 3: A trained interviewer may be appointed on a temporary basis. He could visit different
hotels without giving any prior intimation of his visits. In each hotel he visits, he may personally
interview selected guests and seek their opinion on the quality of food and service in that hotel
and their suggestions, if any, for improvement.
Option 4: The services of a marketing research firm may be hired. It may be asked to conduct a
suitable study based on, say, telephone interviews of a random sample of guests from each hotel
and to submit its report to the Managing Director.
QUESTION
Discuss the relative merits of these opinions, indicating which one you would adopt if
you were the Managing Director.
88
MODULE 5
(MEASUREMENT
TECHNIQUES)
89

MEASUREMENT AND SCALING
Measurement
Definition: the assignment of numbers or other symbols to characteristics of objects according
to certain pre-specified rules.
In marketing research, numbers are usually signed for two reasons. First, number permits
statistical analysis of the resulting data. Second, numbers facilitate the communication of
measurement rules and results.
Scaling
Definition: The generation of a continuum on which measured objects are located.
To illustrate, consider a scale for locating consumers according to the characteristic
attitude toward department stores. Each respondent is assigned a number indicating an
unfavorable attitude, (measured as 1), a neutral attitude (measured as 2), or a favorable attitude
(measured as 3).
90

Primary scales of Measurement
There are four primary scales of measurement; nominal, ordinal, interval, and rational.
Scale
Nominal
Basic
Common
Marketing
Permissible
Statistics
Characteristics
Examples
Examples
Descriptive
inferential
Numbers identify
Social security
Brand numbers
Percentages
Chi-square
and classify
numbers,
store types, sex
mode
binomial
objects
numbering of
classification
test
Football
players.
Ordinal
Numbers indicate
Quality
Preference
Percentile,
Rank-order
the relative
rankings,
rankings,
median
correlation
positions of the
ranking of
market position
objects but not
teams
social class
the magnitude
in a
of differences
tournament
between them.
Interval
Difference between
Temperature
Attitudes,
Range,
Product-
objects
(Fahrenheit,
opinions,
mean,
moment
can be compared;
centigrade)
index numbers
standard
correlations
deviation
tests,
zero point is
arbitrary.
regression,
Factor
analysis
Ratio
Zero point is fixed;
Length
Age, Income
Geometric
Coefficient
Ratios of scale
Weight
costs, sales,
mean,
of
market shares
Harmonic
variation
Values can be
computed
mean
91

Nominal Scale
A scale whose numbers serve only as labels or tags for identifying and classifying objects
with a strict one- to- one correspondence between the numbers and the objects.
Each number is assigned to only one object and each object has only one number
assigned to it. In marketing research scales are used for identifying respondents, brands,
attributes, stores, and other objects.
Ordinal scale
A ranking scale in which numbers are assigned to objects to indicate the relative extent to
which some characteristic is possessed. Thus it is possible to determine whether an object has
more or less of a characteristic than some other object.
Thus an ordinal scale indicates relative position, not the magnitude of the differences
between the objects. The object ranked first has more of the characteristic as compared to the
object ranked second, but whether the object ranked second is a close second or a poor second is
not known. Common examples of ordinal scales include quality rankings, rankings of teams in a
tournament, socioeconomic class, and occupational status. In marketing research, ordinal scales
are used to measure relative attitudes, opinions, perceptions and preferences. Measurements of
this type include greater than or less than judgments from the respondents.
92

Interval Scale
A scale in which the numbers are used to rate objects such that numerically equal
distances in the characteristic being measured.
An interval scale contains all the information of an ordinal between any two scale values
is identical to the difference between any other two adjacent values of an interval scale. There is
a constant equal interval between scale values. The difference between 1 and 2 is the same as the
difference between 2 and 3 , which is same as the difference between 5 and 6.A common
example is everyday life is a temperature scale. In marketing research, attitudinal data obtained
from rating scales are often treated as interval data.
Ratio Scale
The highest scale. It allows the researcher to identify or classify objects, rank order the
objects, and compare intervals or differences. It is also meaningful to compute ratios of scale
values.
Thus, in ratio scales we can identify or classify objects, rank the objects, and compare
intervals or differences. It is also meaningful to compute ratios of scale values. Not only is the
difference between 2 and 5 the same as the difference between 14 and 17 , but also 14 is seven
times as large as 2 in an absolute sense. Common examples of ratio scales include height,
weight, age and money. In marketing, sales, costs, market share, and number of customers are
variables measured on a ratio scale.
93

A COMPARISON OF SCALING TECHNIQUES
Scaling Techniques
Non-comparative Scales
Comparative Scales
Paired
Comparison
Rank
Order
Constant
Sum
Verbal
Protocol
Continuous
Rating
Scales
Likert
Semantic
Differential
Itemized
Rating
Scales
Stapel
94

Comparative Scales
One of two types of scaling techniques in which there is direct comparison of stimulus
objects with one another.
Comparative scales involve the direct comparison of stimulus objects. For example,
respondents might be asked whether they prefer Coke or Pepsi. The major benefit of comparative
scaling is that small differences between stimulus objects can be detected. As they compare the
stimulus objects, respondents are focused to choose between them. In addition, respondents
approach the rating task from the same known reference points. Consequently, comparative
scales are easily understood and can be applied easily. Other advantages of these scales are they
involve fewer theoretical assumptions, and they also tend to reduce halo or carryover effects
from one judgment to another. The major disadvantages of comparative scales include the
ordinal nature of the data and the inability to generalize beyond the stimulus objects scaled. For
instance, to compare Thums-Up to Coke and Pepsi, the researcher would have to do a new study.
These disadvantages are substantially overcome by the non-comparative scaling techniques.
Non-comparative scales
One of two types of scaling techniques in which each stimulus object is scaled
independently of the other objects in the stimulus set.
For example, respondents may be asked to evaluate Coke on a 1 to 6 preference scale
(1= not at all preferred; 6= greatly preferred). Similarly evaluations would be obtained for Pepsi
and Thums-Up.
95

COMPARITIVE SCALING TECHNIQUES
Paired Comparison Scaling
A comparative scaling technique in which a respondent is presented with two objects at a
time and asked to select one object in the pair according to some criterion. The data obtained are
ordinal in nature. Paired comparison scaling is useful when the number of brands is limited,
because it requires direct comparisons becomes unwieldy.
Rank- Order Scaling

Definition: A comparative scaling technique in which respondents are presented with several
objects simultaneously and asked to order or rank them according to some criterion.
For example, respondents may be asked to rank brands of toothpaste according to overall
preference. These rankings are typically obtained by asking the respondents to assign a rank of 1
to the most preferred brand, 2 to the second preferred, and so on, until a rank of n is assigned to
the least preferred brand. Like paired comparison, this approach is also comparative in nature,
and it is possible that the respondent may dislike the brand ranked 1 in an absolute sense.
Rank order scaling is commonly used to measure preferences for brands as well as
attributes. Moreover, as compared to paired comparisons, this type scaling process more closely
resembles the shopping environment. It also takes less time and eliminates. Moreover, as
compared to paired comparisons, this type of scaling process more closely resembles the
shopping environment. It also takes less time and eliminates in-transitive responses. If there are n
stimulus objects, only (n-1) scaling decisions need be made in rank order scaling. However, in
paired comparison scaling, [n (n-1)/2] decisions are required. Another advantage is that most
respondents easily understand the instructions for ranking.
The major disadvantage is that this technique produces only ordinal data.
96

Constant Sum Scaling
Definition: A comparative scaling technique in which respondents are required to allocate a
constant sum of units such as points, dollars, chits, stickers, or chips among a set of stimulus
objects with respect to some criterion.
Respondents may be asked to allocate 100 points to attributes of a bathing soap in a way
that reflect the importance they attach to each attribute. 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 points is 100. Hence, the name of the scale. The
main advantage of the constant sum scale is that it allows for fine discrimination among stimulus
objects without requiring too much time. However, it has two primary disadvantages.
Respondents may allocate more or fewer units than those specified. For example, a respondent
may allocate 108 or 94 points. The researcher must modify such data in some way or eliminate
this respondent from analysis. Another potential problem is rounding error if too few units are
used. On the other hand, the use of a large number of units may be too taxing on the respondent
and cause confusion and fatigue.
Verbal Protocol
Definition: A technique used to understand respondents cognitive responses or thought
processes by having them think aloud while completing a task or making a decision.
Protocols have been used to measure consumers cognitive responses in actual shopping
trips as well as in stimulated shopping environment. An interviewer accompanies the respondent
and holds a microphone into which the respondent talks. Protocols, thus collected, have been
used to determine the attributes and cues used in making purchase decisions, product usage
behavior, and the impact of the shopping environment on consumer decisions. Protocol analysis
has also been employed to measure consumer response to advertising. Immediately after seeing
an ad, the respondent is asked to list all the thoughts that came to mind while he or she watched
the ad. The respondent is given a limited amount of time to list the thoughts so as to minimize
the probability of collecting thoughts generated after, rather than during, the message.
97

NONCOMPARITIVE SCALING TECHNIQUES
Non-comparative Scale
One of two types of scaling techniques in which each stimulus object is scaled
independently of the other objects in the stimulus set.
BASIC NONCOMPARATIVE SCALES

Scale
Basic
Examples
Advantages
Disadvantages
Characteristics
Continuous
place a mark on a
Reaction to
Easy to
Scoring can be
Rating scale
continuous line
TV
construct
cumbersome Un- less
commercials
Likert scale
computerized
Degree of
Measurement
Easy to
More time
Agreement on a
of attitudes
construct,
consuming
1(strongly disagree)
administer,
to 5(strongly
and
agree) scale
Understand
Semantic
Seven-point scale
Brand, Product Versatile
Controversy as to whether
Differential
with bipolar labels
and company
the data are Interval
Images
Stapel scale
Unipolar-10 point
Measurement
Easy to
Confusing and
Scale, -5 to +5,
of
construct
difficult to apply
Without a neutral
attitudes and
administered
Point (Zero)
images
over
Telephone
98

Continuous Rating Scale
Also referred to as graphic rating scale, this measurement scale has the respondents rate
the objects by placing a mark at the appropriate position on a line that runs from one extreme of
the criterion variable to the other. The form may vary considerably.
How would you rate Big Bazaar?
Version 1
Probably the worst ---------- -I--------------------------------------- Probably the best
Version 2
Probably the worst-------------I------------------------------------- Probably the best
0
10 20 30 40 50 60 70 80 90 100
Version 3
Very bad
neither good
Very good
Nor bad
Probably the worst-----------I----------------------------------------- Probably the best
0
10 20 30 40 50 60 70 80 90 100
99
Itemized Rating Scale

A measurement scale having numbers and/ or brief descriptions associated with each
category. The categories are ordered in terms of scale position.
Likert Scale
A measurement scale with five response categories ranging from strongly disagree to
strongly agree, which requires the respondents to indicate a degree of agreement or
disagreement with each of a series of statements related to the stimulus objects.
The Likert scale has several advantages. It is easy to construct and administer.
Respondents readily understand how to use the scale, making it suitable for mail, telephone, or
personal interviews.
The major disadvantage of the Likert scale is that it takes longer to complete than other
itemized rating scales, because respondents have to read each statement.
Example:
Likert Scale
Instructions
Listed below are different options about Sears. Please indicate how strongly you agree or
disagree with each by using the following scale:
1= strongly disagree
2= Disagree
3= neither agree nor disagree
4= Agree
5= strongly agree
100

Strongly Disagree Neither Agree nor
Disagree
Sears sells high-quality
Agree
Disagree
Strongly
Agree
2x
2x
I like to shop at Sears
3x
Sears does not offer a
4x
4x
1x
4x
4x
2x
Merchandise
Sears has poor in-store
Service
good mix of different

brands within a
product category
The credit policies at
Sears are terrible
Sears is where
America shops
I do not like the
advertising done by
Sears.
Sears sells a wide
variety of Merchandise
Sears charges fair prices
Semantic Differential
Definition: A seven- point rating scale with end points associated with bipolar labels.
A Semantic Differential Scale for measuring Self Concepts, Person Concepts, and
Product Concepts
101

1. Rugged
:-----:-----:-----:------:------:------:------:------:------:
2. Excitable :-----:-----:-----:------:------:------:------:------:------:
Delicate
Calm
3. Uncomfortable :-----:-----:-----:------:------:------:------:------:------: Comfortable

4. Dominating
----:-----:-----:------:------:------:------:------:------:
Submissive
5. Thrifty
:-----:-----:-----:------:------:------:------:------:------:
Indulgent
6. Pleasant
:-----:-----:-----:------:------:------:------:------:------:
Unpleasant
7. Contemporary:-----:-----:-----:------:------:------:------:------:------:
Noncontemporary
8. Organized
:-----:-----:-----:------:------:------:------:------:------:
Unorganized
9. Rational
:-----:-----:-----:------:------:------:------:------:------:
Emotional
10. Youthful
:-----:-----:-----:------:------:------:------:------:------:
Mature
11. Formal
:-----:-----:-----:------:------:------:------:------:------:
Informal
12. Orthodox
:-----:-----:-----:------:------:------:------:------:------:
Liberal
13. Complex
:-----:-----:-----:------:------:------:------:------:------:
Simple
14. Colorless
:-----:-----:-----:------:------:------:------:------:------:
Colorful
15. Modest
:-----:-----:-----:------:------:------:------:------:------:
Vain
102
Stapel Scale
A scale for measuring attitudes that consists of a single adjective in the middle of an
even-numbered range of values.
DEPARTMENT STORE PATRONAGE PROJECT
Stapel Scale
Instructions
Please evaluate how accurately each word or phrase describes each of the department
stores. Select a plus number for the phrases you think describe the store accurately. The more
accurately you think the phrase describes the store, the lager the plus number you should choose.
You should select a minus number for phrases you think do not describe it accurately. The less
accurately you think the phrase describes the store, the larger the minus number you should
choose. You can select any number, from +5 for phrases you think are very accurate, to -5 for
phrases you think you are very inaccurate.
103

Form
Sears
+5
+5
+4
+4
+3
+3
+2
+2X
+1
+1
High
Poor
Quality
Quality
-1
-1
-2
-2
-3
-3
-4x
-4
-5
-5
The Stapel scales advantages are that it does not require a pretest of the adjectives or
phrases to ensure true bipolarity, and it can be administered over the telephone. However, some
researchers believe the Stapel scale is confusing and difficult to apply. Of the three itemized
rating scales considered, the stapel scale is used least.
104

NON-COMPARATIVE ITEMIZED RATING SCALE DECISIONS
The researcher must make six major decisions when constructing any of these scales.
The number of scale categories to use
Balanced versus unbalanced scale
Odd or even number of categories
Forced versus non-forced choice
The nature and degree of the verbal description
The physical form of the scale
1. Number of Scale Categories

Two conflicting considerations are involved in deciding the number of scale categories.
The greater the number of scale categories, the finer the discrimination among stimulus objects
that is possible. On the other hand, most respondents cannot handle more than a few categories.
Traditional guidelines suggest that the appropriate number of categories should be seven plus or
minus two: between five and nine. Several factors should be taken into account in deciding on
the number of categories.
If the respondents are interested in the scaling task and are knowledgeable about the
objects, the larger number of categories may be employed. On the other hand, if the respondents
are not very knowledgeable or involved with the task, fewer categories should be used. Likewise,
the nature of the objects is also relevant. Some objects do not lend themselves to fine
discrimination, so a small number of categories are sufficient. Another important factor is the
mode of data collection.
105

If telephone interviews are involved, many categories may confuse the respondents.
Likewise, space limitations may restrict the number of categories in mail questionnaires.
2. Balanced versus Unbalanced Scales

In a balanced scale, the numbers of favorable and unfavorable categories are equal; in an
unbalanced scale they are unequal
Balanced Scale
Unbalanced Scale
Jovan Musk for Men is
Jovan Musk for Men is
Extremely good
extremely good
Very good
Very good
Good
Good
Bad
Somewhat good
Very bad
Bad
Extremely bad.
Very bad
Odd or even Number of Categories

With an odd number of categories, the middle scale position is generally designed as
neutral or impartial. The presence, position, and labeling of a neutral category can have a
significant influence on the response. The decision to use an odd or even number of categories
depends on whether some of the respondents may be neutral on the response being measured. If
a neutral or indifferent response is possible from at least some of the respondents, an odd number
of categories should be used. If, on the other hand, the researcher wants to force a response or
believes that no neutral or indifferent response exists, a rating scale with an even number of
categories should be used
106

Forced versus Non forced Scales
On forced rating scales the respondents are forced to express an opinion, because a no
opinion option is not provided. In such a case, respondents without an opinion may mark the
middle scale position. If a sufficient proportion of the respondents do not have opinions on the
topic, marking the middle position will distort measures of central tendency and variance. In
situations in which the respondents are expected to have no opinion, as opposed to simply being
reluctant to disclose it, the accuracy of data may be improved by a non forced scale, which
includes a no opinion category.
Nature and Degree of Verbal Description

The nature and degree of verbal description associated with scale categories varies
considerably and can have an effect on the responses. Scale categories may have verbal,
numerical, or even pictorial descriptions.
Physical Form or Configuration

A number of options are available with respect to scale form or configuration. Scales can
be presented vertically or horizontally. Categories can be expressed by boxes, discrete lines, or
units on a continuum and may or may not have numbers assigned to them. If numerical values
are used, they may be positive, negative, or both.
107

A variety of scale configuration may be employed to measure the gentleness or Rin detergent.
Some examples include:
Rin detergent is:
1. Very harsh ---------------------------------------------------------- Very gentle

2. Very harsh 1
7 Very gentle
3.
Very harsh
Neither harsh nor gentle
4.
Very gentle
--------
--------
Very
Harsh
Harsh
--------
--------
--------
--------
--------
Somewhat Neither Somewhat Gentle
Very
harsh
gentle
harsh
gentle
Nor
Gentle
5.
-3
-2
-1
Very
Neither
Very
Harsh
harsh
gentle
Nor
gentle
gentle
108

QUESTIONNAIRE DESIGN
Questionnaire: a structured technique for data collection consisting of a series of questions,
Written or verbal, to which a respondent replies.
OBJECTIVES OF QUESTIONNAIRE
It has three specific objectives:
It must translate the information 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 co-operate and complete the interview.
A questionnaire must minimize response error.
109

QUESTIONNAIRE DESIGN PROCESS
Specify the information needed
Specify the type of interviewing method
Determine the content of individual questions
Design the questions to overcome the respondents

inability and unwillingness to answer
Decide on the question structure
Determine the question wording
Arrange the questions in proper order
Identify the form & layout
Reproduce the questionnaire
Eliminate the bugs by pre-testing
110

SPECIFY THE INFORMATION NEEDED
The first step in questionnaire design is to specify the information needed. This is also
the first step in the research design process.
It is also important to have a clear idea of the target population. The characteristics of the
respondent group have a great influence on questionnaire design. Questions that are appropriate
for college students may not be appropriate for house wives.
The more diversified the
respondent group, the more difficult it is to design a single questionnaire that is appropriate for
the entire group,
TYPE OF INTERVIEWING METHOD

In personal interviews, respondents see the questionnaire and interact face-to-face with
the interviewer.
Thus lengthy, complex and varied questions can be asked.
In telephone
interviews, the respondents interact with the interviewer, but they do not see the questionnaire.
This limits the type of questions that can be asked to short and simple ones (see the department
store patronage project). Mail questionnaires are self-administered, so the questions must be
simple and detailed instructions must be provided. In computer-assisted interviewing, complex
skip patterns and randomization of questions to eliminate order bias can be easily
accommodated.
Many of the characteristics of e-mail questionnaires have to be simpler.
Questionnaires designed for personal and telephone interviews should be written in a

conversational style.
111

Effect of Interviewing Method on Questionnaire Design
Mail questionnaire
Please rank the following department stores in order of your preference to shop at these
stores. Begin by picking out the one store that you like the 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.
The criterion of preference is entirely up to you. There is no right or wrong answer. Just
try to be consistent.
Store
Rank Order
1. Lord & Taylor
__________
2. Macys
__________
3. Kmart
__________
4. Richs
__________
5. J. C. Penney
__________
6. Neiman-Marcus
__________
7. Target
__________
8. Saks Fifth Avenue
__________
9. Sears
__________
10. Wal-Mart
__________
112

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 10-point scale, where 1 denotes not so preferred and 10
denote greatly preferred. Numbers between 1 and 10 reflect intermediate degrees of preference.
Again, please tell me your preference to shop at... (Read one store at a time)
Store
Not so Preferred
Greatly Preferred
1. Lord & Taylor
10
2. Macys
10
3. Kmart
10
4. Richs
10
5. J. C. Penney
10
6. Neiman-Marcus
10
7. Target
10
8. Saks Fifth Avenue
10
9. Sears
10
10. Wal-Mart
10
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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 the card that has the name of the store
you like the most, that is, your most preferred store for shopping. (Record the store name and
keep this card with you). Now, please examine the remaining 9 cards. Of these remaining 9
stores, what is your most preferred store for shopping? (Repeat this procedure sequentially
until the respondent has only one card left).
<None>
1.
__________
2.
__________
3.
__________
4.
__________
5.
__________
6.
__________
7.
__________
8.
__________
9.
__________
10
__________
10.
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.
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INDIVIDUAL QUESTION CONTENT
Is the Question Necessary?
Every question in a questionnaire should contribute to the information needed or should
serve some specific purpose. If there is no satisfactory use for the data resulting from a question,
that question should be eliminated.
In certain situations, however, questions may be asked that are not directly related to the
information that is needed. It is useful to ask some neutral questions at the beginning of the
questionnaire to establishment involvement and rapport, particularly when the topic of the
questionnaire is sensitive or controversial. Sometimes filler questions are asked to disguise the
purpose or sponsorship of the project. Rather than limiting the questions to the brand of interest,
questions about competing brands may also be included to disguise the sponsorship.
For
example, a survey on personal computers sponsored by IBM may also include filler questions
related to Dell, Compaq and Apple.
Questions unrelated to the immediate problem may
sometimes be included to generate client support for the project. At times, certain questions may
be duplicated for the purpose of assessing reliability or validity.
Are Several Questions Needed Instead of One?
Once we have ascertained that a question is necessary, we must make sure that it is
sufficient to get the desired information. Sometimes, several questions are needed to obtain the
required information in an unambiguous manner. Consider the question,
Do you think Coca-Cola is a very tasty and refreshing soft drink?
(Incorrect)
A yes answer will presumably be clear, but what if the answer is no? Does this
means that the respondent thinks that Coca-Cola is not tasty, that it is not refreshing, or that it is
neither tasty nor refreshing? Such a question is called a double-barreled question, because two
or more questions are combined into one.
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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)
Another example of multiple questions embedded in a single question is the why

question. In the context of the department store study, consider the question,
Why do you shop at Nike Town?
(Incorrect)
The possible answers may include it is more conveniently located than other stores, and
it was recommended by my best friend. Each of these answers relates to a different question
embedded in the why question. The first answer tells that the respondent likes about Nike
Town as compared to other stores and the second answer reveals how the respondent learned
about the Nike Town. The two answers are not comparable and any one answer may not be
sufficient. Complete information may be obtained by asking two separate questions:
What do you like about Nike Town as compared to other stores? and
How did you first happen to shop in Nike Town?
(Correct)
OVERCOMING INABILITY TO ANSWER

Researchers should not assume that respondents can provide accurate or reasonable
answers to all questions. The respondents may not be informed, may not remember, or may be
unable to articulate certain types of responses.
Is the Respondent Informed?
Respondents are often asked about topics on which they are not informed. A husband
may not be informed about monthly expenses for groceries and department store purchases if it
is the wife who makes these purchases and vice versa. Research has shown that respondents will
often answer questions even though they are uninformed.
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Filter Questions: an initial question in a questionnaire that screens potential respondents to
ensure they meet the requirements of the sample.
In situations in which not all respondents are likely to be informed about the topic of
interest, filter questions that measure familiarity, product use and past experience should be
asked before questions about the topics themselves. Filter questions enable the researcher to
filter out the respondents who are not adequately informed.
Can the Respondent Remember?
Many things that we might expect everyone to know are remembered by only a few. Test
this out on yourself. Can you answer the following?
What is the brand name of the shirt you were wearing two weeks ago?
What did you have for lunch a week ago?
What were you doing a month ago at noon?
These questions are incorrect as they exceed the ability of the respondents to remember.
Evidence indicates that consumers are particularly poor at remembering quantities of products
consumed. In situations in which factual data were available for comparison, it was found that
consumer reports of products usage exceeded actual usage by 100 percent or more.
The inability to remember leads to errors of omission, telescoping and creation.
Omission is the inability to recall an event that actually took place. Telescoping takes place
when an individual telescopes or compresses time by remembering an event as occurring more
recently than it actually occurred. For example, a respondent reports three trips to the super
market in the last two weeks when, in fact, one of these trips was made 18 days ago. Creation
error takes place when a respondent remembers an event that did not actually occur.
We tend to remember events that are important or unusual or that occur frequently.
People remember their wedding anniversary and birthday. Likewise, more recent events are
remembered better.
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Research indicates that those questions that do not provide the respondent with cues to
the event and instead rely on unaided recall, can underestimate the actual occurrence of an event.
Can the Respondent Articulate?
Respondents may be unable to articulate certain types of responses. For example, if
asked to describe the atmosphere of the department store they would prefer to patronize, most
respondents may be unable to phrase their answers. On the other hand, if the respondents are
provided with alternative descriptions of store atmosphere, they will be able to indicate the one
they like the best. If the respondents are unable to articulate their responses to a question, they
are likely to ignore that question and refuse to respond to the rest of the questionnaire. Thus
respondents should be given aids, such as pictures, maps and descriptions to help them articulate
their responses.
OVERCOMING UNWILLINGNESS TO ANSWER
Even if respondents are able to answer a particular question, they may be unwilling to do
so, either because too much effort is required, the situation or context may not seem appropriate
for disclosure, no legitimate purpose or need for the information requested is apparent, or the
information requested is sensitive.
Effort Required of the Respondents
Most respondents are unwilling to devote a lot of effort to provide information. Hence,
the researcher should minimize the effort required of the respondents.
Context
Some questions may seem appropriate in certain contexts but not in others. For example,
questions about personal hygiene habits may be appropriate when asked in a survey sponsored
by the American Medical Association, but not in one sponsored by a fast food restaurant.
Respondents are unwilling to respond to questions which they consider to be inappropriate for
the given context.
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Legitimate Purpose
Respondents are also unwilling to divulge information that they do not see as serving a
legitimate purpose. Why should a firm marketing cereals want to know their age, income and
occupation? Explaining why the data are needed can make the request for the information seem
legitimate and increase the respondents willingness to answer.
A statement such as, To
determine how the consumption of cereal and preferences for cereal brands vary among people
of different ages, incomes and occupations, we need information on can make the request for
information seem legitimate.
Sensitive Information
Respondents are unwilling to disclose, at least accurately, sensitive information because
this may cause embarrassment or threaten the respondents prestige or self-image. If pressed for
the answer, respondents may give biased responses, especially during personal interviews.
Sensitive topics include money, family life, personal habits, political and religious beliefs and
involvement in accidents or crime.
Increasing the Willingness of Respondents
Respondents may be encouraged to provide information that they are unwilling to give by
the following techniques:
Place sensitive topics at the end of the questionnaire. By then, initial mistrust has been
overcome, rapport has been created, legitimacy of the project has been established and
respondents are more willing to give information.
Preface the question with a statement that the behavior of interest is common. For
example, before requesting information on credit card debt, say Recent studies show that
most Americans are in debt.
This technique is called the use of counter-biasing
statements.
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CHOOSING QUESTION STRUCTURE
Unstructured Questions: are open ended questions that respondents answer in their own words.
They are also referred to as free response or free answer questions.
Open-ended questions are good as first questions on a topic. They enable the respondents
to express general attitudes and opinions that can help the researcher interpret their responses to
structured questions. Unstructured questions have a much less biasing influence on response
than do structured questions. Respondents are free to express any views. Their comments and
explanations can provide the researcher with rich insights. Hence, unstructured questions are
useful in exploratory research.
A principal disadvantage is that potential for interviewer bias is high. Whether the
interviewers record the answers verbatim or write down only the main points, the data depend on
the skill of the interviewers. Tape recorders should be used if verbatim reporting is important.
Another major disadvantage of unstructured questions is that the coding of responses is
costly and time consuming. The coding procedures required to summarize responses in a format
useful for data analysis and interpretation can be extensive. Implicitly, unstructured or openended questions give extra weight to respondents who are more articulate. Also, unstructured
questions are not very suitable for self-administered questionnaires (mail, e-mail and internet),
because respondents tend to be more brief in writing than in speaking.
Pre-coding can overcome some of the disadvantages of unstructured questions. Expected
responses are recorded in multiple choice formats, although the question is presented to the
respondents as an open-ended question. Based on the respondents reply, the interviewer selects
the appropriate response category. This approach may be satisfactory when the respondent can
easily formulate the response and it is easy to develop pre-coded categories as the response
alternatives are limited.
Structured Questions: specify the set of response alternatives and the response format. A
structured question may be multiple-choice, dichotomous, or a scale.
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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. Consider the
following question.
Do you intend to by a new car within the next six months?
_____
Definitely will not buy
_____
Probably will not buy
_____
Undecided
_____
Probably will buy
_____
Defiantly will buy
The response alternatives should include the set of all possible choices. The general
guideline is to list all alternatives that may be of importance and include an alternative labelled
other (please specify), the response alternatives should be mutually exclusive. Respondents
should also be able to identify one and only one, alternative, unless the researcher specifically
allows two or more choice (for example, please indicate all the brands of soft drinks that you
have consumed in the fast weak). If the response alternatives are numerous, consider using
more than one question to reduce the information processing demands on the respondents.
Order or position biasing is the respondents tendency to check an alternative merely
because it occupies a certain position or is listed in a certain order. Respondents tend to check the
first or last statement in a list, particularly the first. For the list of numbers (quantities or prices)
there is a bias toward the central value of the list. To control for order bias, several forms of the
questionnaire should be prepared with the order in which the alternatives are listed varied from
form to form. Each alternative should appear once in each of the extreme position, once in the
middle, and once somewhere in between.
Multiple-choice questions overcome many of the disadvantages of open-ended questions,
because interviewer bias is reduced and these questions are administered quickly. Also, coding
and processing of data are much less costly and time consuming. In self-administered
questionnaires, respondent cooperation is improved if the majority of the questions are
structured.
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Disadvantages:
Considerable effort is required to design effective multiple-choice questions. Exploratory
research using open-ended questions may be required to determine the appropriate response
alternatives. It is difficult obtain information on alternatives not listed. Even if an Other (please
specify) category is included, respondents tend to choose among the listed alternatives. In
addition, showing respondents the list of possible answers produces biased responses. There is
also the potential for order bias.
Dichotomous Questions. A dichotomous question has only two response alternatives: yes or
not, agree or disagree and so on. Often, the two alternatives of interest are supplemented by a
neutral alternative, such as no option, dont know, both or none. The question asked
before about intentions to buy a new car as a multiple-choice can also be asked as a dichotomous
question.
Do you intend to buy a new car within the next six months?
______ Yes
______ No
______ Dont know
Another issue in the design of dichotomous questions is whether to include a natural
response alternative. If it is not included, respondents are forced to choose between yes and
no even if they feel indifferent. On the other hand, if a natural alternative is included,
respondents can avoid taking a position on the issue, thereby basing the result. We offer the
following guidelines.
If a substantial proportion of the respondents can be expected to be natural, include a
natural alternative. If the proportion of natural respondents is expected to be small, avoid the
natural alternative.
Dichotomous questions are the easiest type of questions to code and analyze. The
response can be influenced by the wording of the questions. To illustrate, the statement
individuals are more to blame than social conditions for crime and lawlessness in this country,
produced agreement from 59.6 percent of the respondents.
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However, on a matched sample that respondent to the opposite statement, social
conditions are more to blame than individuals for crime and lawlessness in this country, 43.2
percent (as opposed to 40.4 percent) agreed. To overcome this problem, the question should be
framed in one way on one-half of the questionnaires and in the opposite way on the other half.
This referred to as the split ballot technique.
Scales.
Do you intend to buy a new car within the next six months?
Definitely
Probably
will not buy
will not
Undecided
Probably
Definitely
will buy
will buy
buy
1
CHOOSING QUESTION WORDING

Question wording is the translation of the desired question content and structure into
words that respondents can clearly and easily understand. Deciding on question wording is
perhaps the most critical and difficult task in developing a questionnaire. If a question is worded
poorly, respondents may refuse to answer it or may answer it incorrectly. The first condition,
known as item non response, can increase the complexity of data analysis. The second condition
leads to response error.
Define the Issue

The question should define the issue being addressed.
Consider the following question:
Which brand of shampoo do you use?
(Incorrect)
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On the surface, this may seem to be a well-defined question, but we may reach a different
conclusion when we examine it under the microscope of who, what, when and where. Who in
this question refers to the respondent. Is not clear, though, whether the researcher is referring to
the brand the respondent uses personally or the brand used by the household. What is the brand
of shampoo.
However, what if more than one brand of shampoo is being used should the respondent
mention the most preferred brand, the brand used most often, the brand used most recently, are
the brand that comes to mind first? When is not clear; does the researcher mean last time, last
week, last month, last tear are ever? As for where, it is implied that the shampoo is used at
home, but it is not started clearly. A better wording for this question would be:
Which brand are 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)
Use Ordinary Words

Ordinary words should be used in a questionnaire and they should match the vocabulary level of
the respondents:
For example, instead of asking,
Do you think the distribution of cold drinks is adequate?
(Incorrect)
Ask,
Do you think soft drinks are readily available when you want to buy them?
(Correct)
Use Unambiguous Words

The words used in a questionnaire should have a single meaning that is known to the
respondents. A number of words that appear to be unambiguous have different meaning in
different people. These include usually, frequently, normally, often, regularly,
occasionally and sometimes. Consider the following question:
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In a typical month, how often do you shop in department stores?
______ Never
______ Occasionally
______ Sometimes
______ Often
______ Regularly
(incorrect)
The answers to this question are fraught with response bias, because the words used to
describe category labels have different meanings for different respondents. Three respondents
whose shop once a month may check three different categories: occasionally sometimes and
often. A much better wording for this question would be the following:
In typical month, how often do you shop in department stores?
______ Less than once
______ 1or 2 times
______ 3 or 4 times
______ More than 4 times
(correct)
Avoid Leading or Biasing Questions

A leading question is one that clues the respondents to what the answer should be.
Do you think that patriotic Americans should buy imported automobiles when that
would put American labour out of work?
_______ Yes
_______ No
_______ Dont know
(Incorrect)
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This question would lead most respondents to a no answer. After all, how can patriotic
Americans put American labour out of work? Therefore, this question would not help
preferences of Americans for imported versus domestic automobiles. A better question would be:
Do you think that Americans should by imported automobiles?
_______ Yes
_______ No
_______ Dont know
(Correct)
Bias may also arise when respondents are given clues about the sponsor of the project.
Respondents tend to respond favourably toward the sponsor. The question Is Colgate your
favourite toothpaste? is likely to bias the responses in favour of Colgate. A more unbiased way
of obtaining this information would be to ask, What is your favourite toothpaste brand?
Likewise, the mention of prestigious or non-prestigious name can bias the response, as in, Do
you agree with American dental association that Colgate is effective in preventing cavities? An
unbiased question would be to ask, Is Colgate effective in preventing cavities?
Avoid Implicit Alternatives

An alternative that is not explicitly expressed in the options is an implicit alternative.
Making an implied alternative explicit may increase the percentage of selecting that alternative,
as in the two following questions.
Do you like to fly when travelling short distances?
(Incorrect)
Do you like to fly when travelling short distances, or would rather drive (Correct)
In this first question, the alternative of driving is only implicit, but in the second question
it is explicit. The first question is likely to yield a greater preference for flying than the second
question.
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Question with implicit alternatives should be avoided unless there are specific reasons for
including them. When the alternatives are close in preference or large in number, the alternatives
at the end of the list have a greater chance of being selected. To overcome this bias, this split
ballot technique should be used to rotate the order in which the alternatives appear.
Avoid Implicit Assumptions

Questions should not be worded so that the answer is dependent on implicit assumption
about what will happen as a consequence.
Avoid Generalizations and Estimates

Question should be specific, not general. Moreover, questions should be worded so that
the respondent does not have to make generalizations or compute estimates. Suppose we were
interested in households annual per capita expenditure and groceries. If we asked respondents
What is the annual per capita expenditure on groceries in your household? (Incorrect)
They would first have to determine the annual expenditure on groceries by multiplying
the monthly expenditure on groceries by 12 or the weekly expenditure by 52. Then they would
have to divide the annual amount by the number of persons in the household. Most respondents
would be unwilling or unable to perform these calculations.
A better way of obtaining the required information would be to ask the respondents to simple
questions:
What is the monthly (or weekly) expenditure are groceries in your household? and
How many members are there in your household?
(Correct)
The researcher can then perform the necessary calculations.
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DETERMINING THE ORDER OF QUESTIONS
Opening Questions
The opening questions can crucial in gaining the confidence and cooperation of
respondents. The opening questions should be interesting, simple and nonthreatening. Questions
that ask respondents for their opinions can be good opening questions, because most people like
to express their opinions.
Type of Information
The type of information obtained in a questionnaire may be classified as:
1. Basic information
2. Classification information
3. Identification information
Basic information relates directly to the research problem. Classification Information,
consisting of socioeconomic and demographic characteristics, is used to classify the respondents
and understand the results. Identification Information includes name, address and telephone
number. Identification information may be obtained for a verity of purpose, including verifying
that the respondents listed were actually interviewed, remitting promised incentives and so on.
As a general guideline, basic information should be of obtained first, followed by classification
and finally, identification information. The basic information is of greatest importance to the
research project and should be obtained first, before we risk alienating the respondents by asking
a series of personal questions.
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Difficult Questions
Difficult questions or questions that are sensitive, embarrassing, complex or dull should
be placed late in the sequence. After report has been established and the respondents become
involved, they are less likely to object to these questions. For example, Income should be the last
question in the classification section and telephone numbers the final item in the identification
section.
Effect on Subsequent Questions

Questions asked early in a sequence can influence the responses to subsequent questions.
As a rule of thumb, general questions should precede the specific questions.
Legal Order
Questions should be asked in a local order. All of the questions that deal with a particular
should be asked before beginning a new topic. Branching questions direct respondents to
different places in the questionnaire based on how they respond to the question at hand. These
questions ensure that all possible contingencies are curved. They also help reduce interviewer
and respondent errors and encourage complete responses.
FORM AND LAYOUT

The format, spacing and positioning of questions can have a significant effect on result.
This is particularly important for self-administered questionnaires. It is a good practice to divide
a questionnaire into several parts. Several parts may be need for questions pertaining to the basic
information.
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The questionnaires themselves should be numbered serially. This facilitates the control of
questionnaires in the field as well as the coding and analysis. Numbering makes it easy to
account for the questionnaires and to determine if any have been lost. A possible exception to
this rule is mail questionnaires. If these are numbered, respondents assume that a give number
identifies a particular respondent. Some respondents may refuse to participate or answer
differently under these conditions.
REPRODUCTION OF THE QUESTIONNAIRE

How a questionnaire
is reproduced for administration can influence the results. For
example, if the questionnaire is reproduced on poor-quality paper or is otherwise shabby in

appearance, the respondents will think the project is unimportant and the quality of response will
be adversely affected. There for the questionnaire should be reproduced on good quality paper
and have a professional appearance.
When a printed questionnaire runs to several pages, it should take the form of a booklet
rather than a number of sheets of paper clipped or stapled together. Booklets are easier for the
interviewer and the respondents to handle and do not come apart with use as do clipped and
stapled papers.
The tendency to crowd questions together to make the questionnaire look shorter should
be avoided. Overcrowded questions with little blank space between them can lead to errors in
data collection and yield shorter and less informative replies. Moreover, over crowding gives the
impression that the questionnaire is complex and can result in lower cooperation and completion
rates. Although shorter questionnaires are more desirable than longer ones, the reduction in size
should not be obtained at the expense of crowding.
The questionnaire should be reproduced in such a way that it is easy to read and answer.
The type should be large and clear. Reading the questionnaire should not impose a strain.
130

PRETESTING
Pretesting refers to the testing of questionnaire on a small sample of respondents in
order to identify and eliminate potential problems. Even the best questionnaire can be
improved by pretesting. As a general rule, a questionnaire should not be used in the field survey
without adequate pretesting. A pretest should be extensive. All aspects of the questionnaire
should be tested, including question content, wording, sequence, form and layout, question
difficulty and instructions.
The respondents in the pretest should be similar to those who will be included in the
actual survey in terms of background characteristics, familiarity with the topic and attitudes and
behaviours of interest. In other words, 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 methods, because interviewers can observe respondents
reaction and attitudes. After the necessary charges have been made, another pretest can be
conducted by mail, telephone, electronic methods, if those methods are to be used in the actual
survey. The latter pretests reveal problems peculiar to the interviewing method. To the extent
possible, a pretest should involve administering the questionnaire in an environment and context
similar to that of the actual survey.
Protocol analysis and debriefing are two commonly used procedures in pretesting. In
protocol analysis, the respondent is asked to think aloud while answering the questionnaire.
Typically, the respondents remarks are tape-recorded and analyzed to determine the reactions
invoked by the different parts of the questionnaire. Debriefing occur after the questionnaire has
been completed. Respondents are told that the questionnaire they just completed was the pretest
and the objective of the pretesting are described to them. They are then asked to describe the
meaning of each question, explain their answers, and to state any problems they encountered
while answering the questionnaire.
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QUESTIONNAIRE DESIGN CHECKLIST
Step 1 Specify the Information Needed
1. Ensure that the information obtained fully addresses all the components of the problem.
Review components of the problem and the approach, particularly the research questions,
hypotheses and characteristics that influence the search design.
2. Prepare a set of dummy tables.
3. Have a clear idea of the target population.
Step 2 Type of Interviewing Method

1. Review the type of interviewing method determined based on various considerations
Step 3 Individual question content

1. Is the question necessary?
2. Are several questions needed instead of one to obtain the required information in an
unambiguous manner?
3. Do not use double-barrelled questions.
Step 4 Overcoming inability and Unwillingness to Answer

1. Is the respondent informed?
2. If respondents are not likely to be informed, filter questions that measure familiarity,
product use and past experience should be asked before questions about the topic
themselves.
3. Can the respondent remember?
4. Avoid errors of omission, telescoping, and creation.
5. Questions that do not provide the respondent with cues can underestimate the occurrence
of an event.
6. Can the respondent articulate?
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7. Minimize the effort required of the respondents.
8. Is the context in which the questions are asked appropriate?
9. Make the request for information seem legitimate.
10. If the information is sensitive:
a. Place sensitive topics at the end of the questionnaire.
b. Preface the question with the statement that the behaviour of interest is common.
c. Ask the question using third-person technique.
d. Hide the question in the group of other questions that the respondents are willing to
answer.
e. Provide response categories rather than asking for specific figures.
f. Use randomized techniques, if appropriate.
Step 5 choosing Questions structure

1. Open-ended are useful in exploratory research and as opening questions.
2. Use structured questions whenever possible.
3. In multiple-choice questions, the response alternatives should include the set of all
possible choices and should be mutually exclusive.
4. In dichotomous questions, if a substantial proportion of the respondents can be expected
to be neutral, include a neutral alternative.
5. Consider the use of the split ballot technique to reduce order bias in dichotomous and
multiple-choice questions.
6. If the response alternatives are numerous, consider using more than one question to
reduce the information processing demands on the respondents.
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Step 6 Choosing Question wording
1. Defining the issue in terms of who, what, why and way (the six Ws).
2. Use ordinary words. Words should match the vocabulary level of the respondents.
3. Avoid ambiguous words: usually, normally, frequently, often, regularly, occasionally,
sometimes, etc.
4. Avoid leading questions that clue the respondent to what the answer should be.
5. Avoid implicit alternatives that are not explicitly expressed in the options.
6. Avoid implicit assumptions.
7. Respondent should not have to make generalizations or compute estimates.
8. Use positive and negative statements.
Step 7 Determine the Order of Questions

1. The opening question should be interesting, simple and nonthreatening.
2. Qualifying questions should serve as the opening question.
3. Basic information should be obtained first, followed by classifying and finally,
identification information.
4. Difficult, sensitive or complex questions should be placed late in the sequence.
5. General questions should precede the specific questions.
6. Questions should be asked in a logical manner.
7. Branching questions should be designed carefully to cover all possible contingencies.
8. The question being branched should be placed as close as possible to the question causing
the branching and the branching questions should be ordered so that the respondent
cannot anticipate what additional information will be required.
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Step 8 Forms and Layout
1. Divide a questionnaire into several parts.
2. Question in each part should be numbered.
3. The questionnaire should be pre-coded.
4. The questionnaire themselves should be numbered serially.
Step 9 Reproduction of the Questionnaire

1. The questionnaire should have a professional appearance.
2. Booklet format should be used for long questionnaire.
3. Each question should be reproduced in a single page (or double-page spread).
4. Vertical response columns should be used.
5. Grids are useful when there are a number of related questions that use the same set of
response categories.
6. The tendency to crowed questions to make the questionnaire look shorter should be
avoided.
7. Directions or instructions for individual questions should be placed as close to the
questions as possible.
Step 10 Pretesting
1. Always pretest
2. All aspects of the questionnaire should be tested, including question content, wording,
sequence, form and layout, question difficulty and instructions.
3. The respondents in the pretest should be similar to those who will be included in the
actual survey.
4.
Begin the pretest by using personal interviews.
5. Pretest should also be conducted by mail, telephone or electronically, if those methods

are to be used in the actual survey.
6. A verity of interviewers should be used for pretests.
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7. The pretest sample size is small, varying from 15 to 30 respondents for the initial testing.
8. Use protocol analysis and debriefing to identify problems.
9. After each significant revision of the questionnaire, another pretest should be conducted
using a different sample of respondents.
10. The responses obtained from the pretest should be coded and analyzed.
136
CASES
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CASE No. 9
THE CONSUMPTION OF FRUIT JUICES
A marketing manager has prepared a tentative list of questions for inclusion in a
questionnaire for a proposed survey on the consumption of fruit juices in a metropolitan city. The
questions are listed below:
1. Do you or any members of your family drink fruit juices?
Yes .
No .
If yes,
2. Is the juice consumed during a meal or between the meals or both?
At meal ..
Between meals ..
Both
3. Do you prefer frozen or fresh juice?

Frozen ..
Fresh ..
4. What advantages, if any, do you believe has fresh juice over frozen juice?
.
.
.
5. What advantages, if any, do you believe has frozen juice over fresh juice?
.
.
.
138

6. What brand or brands of juice do you regularly buy?
.
.
.
7. A list of fresh juices is given below. Indicate which are your families first , second and
third choices:
Orange
Mango
Tomato
Grape
Lime
Carrot
Pineapple
Apple
Other (to be specified)
8. Which brand of juice did you or your family buy last?

.
Dont know .
9. How frequently do you consume fruit juice?
(a) Twice a day or even more
(b) Once a day
(c) Three or four times a week
(d) Occasionally.
139

QUESTIONS
For all the nine questions given in the questionnaire, indicate whether you would like the
question to be included as it is or in a modified form. In case you prefer the latter option,
rewrite the question as you would like it to be asked.
Do you think that some more information needs to be collected on the consumption of
fruit juices? If so, give some additional questions.
140

CASE No. 10
BUSINESS WORLD
Business World, a fortnightly magazine, is published from Bombay. It is brought out by
the management of Anand Bazar Patrika Limited, Calcutta. In accordance with the decision
taken in the annual editorial workshop of Business World held in early May 1986, a
questionnaire was printed in some issues of Business World to know what readers thought of this
magazine. By undertaking a survey of this type, the management hoped to ascertain the strengths
and weaknesses of the magazine. This would enable it to tailor Business World to readers
requirements.
141
Questionnaire
Name
Profession .. Designation ..
Income .
Age City ..
1. Which of these business papers/magazines do you read? (Please Tick)

Regularly
Occasionally
Infrequently
Economic Times
__________
__________
__________
Financial Express
__________
__________
__________
Business Standard
__________
__________
__________
Business World
__________
__________
__________
Fortune India
__________
__________
__________
Update
__________
__________
__________
Others (Specify)
__________
__________
__________
2. My areas of interest are (Please tick one or more)

Corporate and business affairs
(
)
Economic policy/development
Political affairs
People and Lifestyle
Art/Literature
Investments
3. Rank the following magazines on a 1 to 5 scale (5 for very good, 1 for poor) for the
following attributes:
Business Business Up-date Fortune
World
India
India
(1) Timeliness of Information
(2) Depth of Information
(3) Range of information
142

CASE No. 11
CONSUMER SATISFACTION
A company is engaged in the manufacture of washing machines and a few other products.
But, the former accounts for a sizeable proportion of its total production. Of late, the company
has been finding it increasingly difficult to maintain its competitiveness on account of the
availability of washing machines of a number of companies within the affordable price range.
There are 17 brands which together are offering 88 models.
The top management of this company has considered the problem of increasing
competition and declining sales. It is of the opinion that a survey should be conducted to
ascertain the customer satisfaction in respect of its washing machines. However, before
undertaking a detailed survey, it would like to be clear on the concept of consumer satisfaction.
QUESTIONS
How would you identify parameters which can effectively measure consumer
satisfaction?
Construct a suitable scale using the parameters identified in Question 1.
143

CASE No. 12
CONSUMER MEDICAL ATTITUDES
A study was undertaken sometime back to assess attitudes of consumers concerning
health care. The study was conducted using a structured questionnaire which was administered to
1000 persons living in Baroda.
Some of the questions contained in the questionnaire are given in the exhibit (the original
numbers of these questions were different).
QUESTIONS
What type of attitude scale is used in each of these questions?
Would you like to change any of these attitudes scales? If so, indicate the changes that
you would like to make.
144
Exhibit
Selected questions which were contained in a questionnaire on C. M. A.
1. Given below are some characteristics that people look for in a doctor of their
choice. You should rate each characteristic on a scale of 1 to 5 in order of
importance. The characteristic most important to you, should be rated 1, and
the least important should be rated 5.
i. The doctors clinic is close to your residence.
1 2 3 4 5
ii. The doctor has long experience.
1 2 3 4 5
iii. The doctors fee is moderate.
1 2 3 4 5
iv. The doctor is known for his diagnosis.
1 2 3 4 5
v. The doctor is recommended by your friends.
1 2 3 4 5
vi. The doctor is cordial and sympathetic to every patient.
1 2 3 4 5
vii.The doctor is available for consultation without much waiting 1 2 3 4 5

2. Would you say that the quality of health care given by your doctor is:
i.
Excellent
ii.
Good
iii.
Satisfaction
iv.
Poor
v.
Very poor
3. What do you feel about the charges you pay to your doctor? Are they:
i.
Excessive
ii.
Somewhat high
iii.
Reasonable
iv.
Low
145
4. Some statements are given below. Please indicate whether you agree with
these statements. If you strongly agree with a statement, rate it 1; if you agree,
rate it 2; if you are neutral, rate it 3; if you somewhat disagree rate it 4; and if
you strongly disagree, rate it 5.
1. I have full confidence in my doctor.
2 3 4 5
2. My doctor explains my medical problems to me.
2 3 4 5
3. Generally doctors are over paid.
2 3 4 5
2 3 4 5
2 3 4 5
6. Most doctors are responsible persons.
2 3 4 5
7. Doctors should not go on strike for any reason.
2 3 4 5
2 3 4 5
2 3 4 5
2 3 4 5
4. I generally have a thorough physical check-up

once a year.
5. I often watch TV programmes which discuss
health problems.
8. If a patient cannot recover from illness, he should

be allowed to die.
9. I am very particular about my food.
10. In case I have a terminal illness, I would not like my
doctor to tell me.
146

CASE No. 13
QUESTIONNAIRE FOR THE CONSUMERS
This is a consumer-based marketing survey related to the television industry. We would like
to communicate with the consumers and get an idea about the television brands in vogue
currently and the features which make these brands popular with the consumers. So kindly spare
some moments of your precious time to make our survey a success.
1. Does your family own a T.V?
{} Yes
{} No
(a) No. of TVs you have?

_____________________________
2. If yes, what type of TV do you have?
{} Portable
{} Big Size
3. Is it black & white or colored?

{} Black & White
{} Colored
4. Which brand of TV do you have?

_________________________________
5. Approximately for how many years are you been using it?
____________ Yrs.
6. What was the TV priced at?
Rs. ____________
147

7. How you rank your TV in cost?
Very Costly {}
Cheap
Costly
Very Cheap {}
{}
{}
8. Which price-range do you prefer for Colour TVs?

Rs. ____________
9. What was the guarantee/warranty period offered to you by the company?
_____________ Yrs.
10. Did you buy this TV under some special scheme? Give details. { }
11. Is there any after-sale service associated with it?

{} Yes
{} No
12. How would you rank the quality of the services provided?
Very efficient
{}
Moderately inefficient {}
Efficient
{}
Inefficient
{}
Moderately efficient
{}
Very inefficient
{}
Neither efficient nor inefficient {}
148

13. Does your TV have a remote?
14. How do you rate your present TV on the following features:
Colour scheme
Good
Bad
Many
Few
Numbers
High
Low
Full
Small
Low
Channels
Brand
Sound effect
Picture
Woofer system
High
Locking system
Present {}
Absent {}
Present {}
Absent {}
Automatic stabilizer
149

15. What features would you like a TV to have?
1.
4.
2.
5.
3.
6.
16. Would you like to go in for a new TV under the special scheme as offered by some
companies?
Yes {}
No {}
17. State your preference from amongst the following six TV brands with respect to their
features: BPL, Weston, Samsung, Sony, Philips and Akai.
BPL
Weston
Samsung
Sony
Philips
Akai
BPL
Weston
Samsung
Sony
Philips
Akai
150

ADVERTISEMENT RECALL
18. Do you remember having seen any advertisement for TVs recently?
Yes {}
No {}
19. What were the brands advertised? Any other?
QUESTION FOR DISCUSSION

Evaluate the questions on their contents, type, wording, sequence and layout as well as
the type of scale used for measuring attitudes.
151

CASE No. 14
MEMBER SATISFACTION SURVEY OF A.I.M.A
INTRODUCTION
The All India Management Association is conducting a survey to measure the satisfaction level
of its members. Please respond to the following statements, as your opinion is valuable to us.
Kindly send the filled questionnaire back to us as soon as possible. A short summary of the
survey results will also be provided to you on its completion.
Thank you for your cooperation in helping us to improve further.
Name (optional)
__________________________________________________
Membership Number
__________________________________________________
Category of Membership __________________________________________________

Please tick the appropriate
Q.1 (a) I am _________________ with the AIMA membership registering process.
Extremely Satisfied
Satisfied
Dissatisfied
Extremely Dissatisfied
(b) If Dissatisfied:
I am dissatisfied with the membership registering process because ____________
(Tick more than one if applicable).
The application form was difficult to understand and complete.
The processing of an application took a very long time.
There is a communication gap between the members and the membership
department.
152

Any other dissatisfaction regarding the membership process _________________
Suggestions (if any) ________________________________________________
__________________________________________________________________
Q.2 I attach ___________ value to my membership title (i.e. AIMA, FIMA).
Encircle the appropriate:
Low
1
Q.3
High
2
Rank the following services of AIMA from 1 to 7 according to the usefulness /

utility for you.
AIMA News
Indian Management
Evening Lectures
Education Programs
Library and Information
Management
Development
Services
& Training Programs
National events like Annual conversation (NMC, NCYM)
Q.4 (a) I _________ receive the AIMA publications.

Always
Often
Sometimes
Rarely
Never
153

(b) Quality of these publications:
Indian Management
AIMA News
Selection of contents
Selection of contents
Good
Good
Satisfactory
Satisfactory
Not so good
Not so good
Quality of print
Quality of print
Good
Good
Satisfactory
Satisfactory
Not so good
Not so good
(c) The overall quality of these publications has ______________________________

Improved
Deteriorated
Suggestions (if any) _________________________________________________

__________________________________________________________________
Q.5 (a) In my opinion the Management Development and Training Programme are
_________________________________________________________________
Excellent
Good
Satisfactory
Not so good
154

(b) The overall quality of these programs has
Improved
Deteriorated
Suggestions (if any) ___________________________________________________

____________________________________________________________________
Q.6 (a) I feel that most of the evening lectures are _______________________________
Very Interesting
Quite Interesting
Okay
Not at all Interesting
(b) The quality of these lectures has

Improved
Deteriorated

_________________________________________________________________
Q.7 (a) The library and information services are ________________________________

Excellent
Good
Satisfactory
Not so good
(b) These services have _________________________________________________

Improved
Deteriorated

_________________________________________________________________
155

Q.8 (a) I have availed the following services of AIMA ___________________________
(Tick more than one if applicable).
Discounted rate on room tariff of various hotels;
Discounted rate on new membership of the Automobile Association;
Special discount rates on purchase from publishers.
(b) I am ______________ with these services.
Extremely Satisfied
Satisfied
Dissatisfied
Extremely Dissatisfied
Suggestions (if any) _________________________________________________

__________________________________________________________________
Q.9 (a) Are you a member of any other professional association?

Yes
No
(b) If yes, what extra services do they provide other than those provided by AIMA.
___________________________________________________________________
____________________________________________________________________
QUESTION FOR DISCUSSION

Evaluate the questions on their contents, type, wording, sequence and layout as well as
the type of scale used for measuring attitudes.
156
MODULE 6
(QUALITATIVE RESEARCH)
157

QUALITATIVE RESEARCH
MARKETING RESEARCH DATA
Primary
data
Secondary
Data
Quantitative
data
Qualitative
data
Descriptive
Causal
Experimental
Data
Survey
Data
Observational
and other data
158

Qualitative Research: an unstructured, exploratory research methodology based on small
samples that provides insights and understanding of the problem setting.
Quantitative Research: a research methodology that seeks to quantify the data and typically,
applies some form of statistical analysis.
QUALITATIVE V/S QUANTITATIVE RESEARCH

Qualitative Research
Objective
To gain a qualitative understanding To quantify the data and generalize

of
the
underlying
reasons
motivations.
Sample
Quantitative Research
and the results from the sample to the

population of interest.
Small number of non-representative Large
number
of
representative
cases.
cases.
Data collection
Unstructured
Structured
Data analysis
Non-statistical
Statistical
Outcome
Develop an initial understanding
Recommend a final course of action.
159

RATIONALE FOR USING QUALITATIVE RESEARCH
It is not always possible, or desirable to use fully structured or formal methods to obtain
information from respondents. People may be unwilling or unable to answer certain questions.
People are unwilling to give truthful answers to questions that invade their privacy, embarrass
them, or have a negative impact on their ego or status. Examples of such sensitive questions
include: Have you recently purchased drugs for nervous tension? Pills for anxiety?
Second, people may be unable to provide accurate answers to questions that tap their subconscious. The values, emotional drives, and motivations residing at the sub-conscious levels
are disguised from the outer world by rationalization and other ego defenses. For example, a
person may have purchased an expensive sports car to overcome feelings of inferiority.
However, if asked, Why did you purchase this sports car? He may say, I got a great deal, my
old car was falling apart, or I need to impress my customers and clients. In such cases, the
desired information can be best obtained through qualitative research.
CLASSIFICATION OF QUALITATIVE RESEARCH PROCEDURES

Qualitative Research Procedures
Direct (Non-disguised)
Indirect (disguised)
Association Techniques
Completion Techniques
Focus
Groups
Dept
Interviews
Projective
Techniques
Construction Techniques
Expressive Techniques
160

Direct Approach: one type of qualitative research in which the purposes of the project are
disclosed to the respondent or are obvious given the nature of the interview.
A direct approach is not disguised.
The purpose of the project is known to the
respondents or is otherwise obvious to them from the questions asked. Focus interviews and
Depth interviews are the major techniques.
Indirect Approach: a type of qualitative research in which the purposes of the project are
disguised from the respondents.
Projective techniques, the commonly used indirect techniques, consist of association,
completion, construction and expressive techniques.
FOCUS GROUP INTERVIEWS

Focus Group: An interview conducted in an unstructured and natural manner by a trained
moderator among a small group of respondents.
The moderator leads the discussion. The main purpose of focus groups is to gain insights
by listening to a group of people from the appropriate target market talk about issues of interest
to the researcher. The value of the technique lies in the unexpected findings often obtained from
a free-flowing group discussion.
161

CHARACTERISTICS OF FOCUS GROUPS
Group size
8-12
Group composition
Homogenous; respondents prescreened
Physical setting
Relaxed, informal atmosphere
Time duration
1-3 hours
Recording
Use of audio cassettes and video tapes
Moderator
Observational, interpersonal and

communication skills of the moderator.
A focus group generally includes 8 to 12 members. Groups of fewer than 8 are unlikely
to generate the momentum and group dynamics necessary for a successful session. Likewise,
groups of more than 12 may be too crowded and may not be conductive to a cohesive and natural
discussion.
A focus group should be homogenous in terms of demographic and socio-economic
characteristics. Commonalty among group members avoids interactions and conflicts among
group members on side issues.
The participants must have had adequate experience with the object or issue being
discussed.
People who have already participated in numerous focus groups should not be
included. These so called professional respondents are atypical, and their participation leads to
serious validity problems.
The physical setting for the focus group is also important.
A relaxed, informal
atmosphere encourages spontaneous comments. Light refreshments should be served before the
session and made available throughout. Although a focus group may last from one to three
hours, duration of one and one-half to two hours is typical. This period of time is needed to
establish rapport with the participants and explore, in depth, their beliefs, feelings, ideas,
attitudes and insights regarding the topics of concern.
162

Focus group interviews are invariably recorded, often on video tape, for subsequent
replay, transcription and analysis. Videotaping has the advantage of recording facial expressions
and body movements, but it can increase the costs significantly. Frequently, clients observe the
session from an adjacent room using a one-way mirror. Video transmission technology enables
the clients to observe focus group sessions live from a remote location.
The moderator plays a key role in the success of a focus group. The moderator must
establish rapport with the participants, keep the discussion moving forward and probe the
respondents to elicit insights. In addition, the moderator may have a central role in the analysis
and interpretation of the data.
Therefore, the moderator should possess skill, experience,
knowledge of the discussion topic and an understanding of the nature of group dynamics.
Planning and Conducting Focus Groups

Planning begins with an examination of the objectives of the marketing research project.
In most instances, the problem has been defined by this stage and if so, the general statement as
well as the specific components of the problem should be carefully studied. Given the problem
definition, the objectives of the qualitative research should be clearly specified. The objectives
must be specified before conducting any qualitative research, whether focus groups, depth
interviews, or project techniques.
The next step is to develop a detailed list of objectives for the focus group. This may
take the form of a list of questions the researcher would like answered. Then a questionnaire to
screen potential participants is prepared. Typical information obtained from the questionnaire
includes product familiarity and knowledge usage behavior, attitudes towards and previous
participation in focus groups and standard demographic characteristics.
A detailed moderators outline for use during the focus group interview should be
constructed. This involves extensive discussions among the researcher, client and moderator.
Because the moderator must be able to pursue important ideas when they are mentioned by
participants, the moderator must understand the clients business, focus group objectives and
how the finding will be used.
163

After a detailed outline is formulated, participants are recruited and the focus group
interview is conducted. During the interview, the moderator must:
Establish rapport with the group,
State the rules of group interaction,
Set objectives,
Probe the respondents and provoke intense discussion in the relevant areas, and
Attempt to summarize and the groups response to determine the extent of agreement.
Following the group discussion, either the moderator or an analyst reviews and analysis
the results. The analyst not only reports specific comments and findings but also looks for
consistent responses, new ideas, concerns suggested by facial expressions and body language and
other hypotheses that may not have received confirmation from all of the participants.
Because the number of participants is small, frequencies and percentages are not usually
reported in a focus group summary. Instead, reports typically include expressions such as most
participants thought or participants were divided in this issue. Meticulous documentation and
interpretation of the session lays the groundwork for the final step: taking action. This usually
means doing additional research.
The number of focus groups that should be conducted on a single subject depends on:
The nature of issue
The number of distinct market segments
The number of new ideas generated by each successive group
Time and cost.
Resources permitting, one should conduct additional discussion groups until the
moderator can anticipate what will be said. This usually happens after three or four groups are
conducted on the same topic. It is recommended that at least 2 groups be conducted.
164

PROCEDURE FOR PLANNING AND CONDUCTING FOCUS GROUPS
Determine the Objectives of Marketing Research Project and Define the Problem
Specify the Objectives of Qualitative Research
State the Objectives/Questions to be Answered by Focus Groups
Write a Screening Questionnaire
Develop a Moderators Outline
Conduct the Focus Group Interviews
Review Tapes and Analyze the Data
Summarize the Findings and Plan Follow-Up Research or Action
165

ADVANTAGES OF FOCUS GROUPS
Focus groups offer several advantages over other data collection techniques:
Synergism. Putting a group of people together will produce a wider range of information,
insight and ideas than will individual responses secured privately.
Snowballing. A bandwagon effect often operates in a group interview, in that one
persons comment triggers a chain reaction from the other participants.
Stimulation. Usually after a brief introductory period, the respondents want to express
their ideas and expose their feelings as the general level of excitement over the topic
increases in the group.
Security. Because the participants feelings are similar to those of other groups members,
they feel comfortable and are therefore willing to express their ideas and feelings.
Spontaneity. Since participants are not required to answer specific questions, their
responses can be spontaneous and unconventional and should therefore provide an
accurate idea of their views.
Serendipity. Ideas are more likely to arise out of the blue in a group than in an individual
interview.
Specialization. Because a number of participants are involved simultaneously, use of a
highly trained, but expensive, interviewer is justified.
Scientific scrutiny. The group interview allows close scrutiny of the data collection
process, in that observers can witness the session and it can be recorded for later analysis.
Structure. The group interview allows for flexibility in the topics covered and the depth
with which they are treated.
Speed. Because a number of individuals are being interviewed at the same time, data
collection and analysis proceed relatively quickly.
166

DISADVANTAGES OF FOCUS GROUPS
Misuse. Focus groups can be misused and abused by considering the results as conclusive
rather than exploratory.
Misjudge. Focus group results can be more easily misjudged than the results of other data
collection techniques. Focus groups are particularly susceptible to client and researcher
bias.
Moderation. Focus groups are difficult to moderate. Moderators with all the desirable
skills are rare. The quality of the results depends heavily on the skills of then moderator.
Messy. The unstructured nature of the responses makes coding, analysis and
interpretation difficult. Focus group data tend to be messy.
Misrepresentation. Focus group results are not representative of the general population
and are not projectable. Consequently, focus group result should not be the sole bases for
decision making.
APPLICATION OF FOCUS GROUP

Focus groups can be used to address substantive issue such as:
Understanding consumer perceptions, preferences and behavior concerning a product
category.
Obtaining impressions of new product concepts.
Generating new ideas about older products.
Developing creative concepts and copy material for advertisements.
Securing price impressions.
Obtaining preliminary consumer reaction to specific marketing programs.
167

DEPTH INTERVIEWS
Depth Interview: An unstructured, direct, personal interview in which a single respondent is
probed by a highly skilled interviewer to uncover underlying motivations, beliefs, attitudes and
feelings on a topic.
CHARACTERISTICS
Like focus groups, depth interviews are an unstructured and direct way of obtaining
information; unlike focus groups, depth interviews are conducted one on one. Depth interview
may take from 30 minutes to more than one hour.
Although the interviewer attempts to follow a rough outline, the specific wording of the
questions and the order in which they are asked is influenced by the subjects replies. Probing is
of critical importance in obtaining meaningful responses and uncovering hidden issues. Probing
is done by asking questions such as Why do you say that? Thats interesting can you tell me
more? or Would you like to add anything else?
TECHNIQUES
Laddering: A technique for conducting depth interviews in which a line of questioning proceeds
from product characteristics to user characteristics.
Hidden Issue Questioning: A type of depth interview that attempts to locate personal sore spots
related to deeply felt personal concerns.
Symbolic Analysis: A technique for conducting depth interviews in which the symbolic meaning
of objects is analyzed by comparing them with their opposites.
168

The interviewers role is critical to the success of depth interview. The interviewer
should:
Avoid appearing superior and put the respondent at ease
Be detached and objective, yet personable
Ask questions in an informative manner
Not accept brief Yes or No answers
Probe the respondent
ADVANTAGES AND DISADVANTAGES OF DEPTH INTERVIEWS

Depth interviews can uncover greater depth of insights than can focus groups. Also,
depth interviews attribute the responses directly to the respondent, unlike focus groups, in which
it is often difficult to determine which respondent made a particular response. Depth interviews
result in free exchange of information that may not be possible in focus groups because there is
no social pressure to conform to group response.
Depth interviews suffer from many of the disadvantages of focus groups and often a
greater extent. Skilled interviewers capable of conducting depth interviews are expensive and
difficult to find.
The lack of structure makes the results susceptible to the interviewers
influence, and the quality and completeness of the results depend heavily on the interviewers
skills.
The data obtained are difficult to analyze and interpret and the services of skilled
psychologists are typically required for this purpose. The length of the interview combined with
high costs means that the number of depth interviews in a project will be small.
169

APPLICATION OF DEPTH INTERVIEWS
Detailed probing of the respondent (automobile purchase)
Discussion of confidential, sensitive or embarrassing topics (personal finances)
Situations in which strong social norms exist and the respondent may be easily swayed by
group responses (attitude of college students toward sports)
Detailed understanding of complicated behavior (department store shopping)
Interviews with professional people (industrial marketing research)
Interviewers with competitors, who are unlikely to prevail the information in a group
setting (travel agents perceptions of airline package travel programs)
Situations in which the product consumption experience is sensory in nature, affecting
mood states and emotions (perfumes, bath soaps)
PROJECTIVE TECHNIQUES
Projective Technique: an unstructured and indirect form of questioning that encourages the
respondents to project their underlying motivations, beliefs, attitudes or feelings regarding the
issues of concern.
Projective techniques are classified as associations, completion, construction and
expressive.
170

ASSOCIATION TECHNIQUES
In association techniques, an individual is presented with a stimulus and asked to respond
with the first thing that comes to mind.
Word Association is the best known of these
techniques. In word association, respondents are presented with a list of words, one at a time and
asked to respond to each with the first word that comes to mind. The words of interests, called
test words, are interspersed throughout the list, which also contains some neutral or filler, words
to disguise the purpose of the study. The subjects response to each word is recorded verbatim
and response are timed so that respondents who hesitate or reason out (defined as taking longer
than 3 seconds to reply) can be identified. The interviewer, not the respondent, records the
responses. This controls further time required for the respondent to write the responses.
The underlying assumptions of this technique are that association allows a respondents to
reveal their inner feelings about the topic of interest. Responses are analyzed by calculating:
The frequency with which any word is given as a response
The amount of time that elapses before a response is given
The number of respondents who do not respond at all to a test word within reasonable
period of time.
Those who do not respond at all are judged to have an emotional involvement so high
that it blocks a response. It is often possible to classify the associations as favorable, unfavorable
or neutral. An individuals pattern of responses and the details of response are used to determine
the persons underlying attitudes or feelings on the topic of interest.
171

COMPLETION TECHNIQUES
Completion Technique: a projective technique that requires the respondent to complete an
incomplete stimulus situation.
Sentence completion: a projective technique in which respondents are presented with a number
of incomplete sentences and asked to complete them.
Sentence completion is similar to word association. Respondents are given incomplete
sentences and asked to complete them. Sentence completion can provide more information
about the subjects feelings than word association. However, sentence completion is not as
disguised and many respondents may be able to guess the purpose of the study.
A variation of sentence completion is paragraph completion in which the respondent
completes a paragraph beginning with the stimulus phrase. An expanded version of sentence
completion and paragraph completion is story completion.
Story Completion: a projective technique in which the respondents are provided with part of a
story and required to give the conclusion in their own words.
In story completion, respondents are given part of a story enough to direct attention to a
particular topic but not to hint at the ending.
CONSTRUCTION TECHNIQUES
Construction Techniques: a projective technique in which the respondent is required to
construct a response in the form of a story, dialogue or description.
Construction techniques are closely related completion techniques.
Construction
techniques require the respondent to construct a response in the form of a story, dialogue or
description. In a construction technique, the researcher provides less initial structure to the
respondent than in a completion technique.
172

The two main construction techniques:
Picture response
Cartoons
Picture Response Techniques: a projective technique in which the respondent is shown a picture
and asked to tell a story describing it.
The roots of picture response techniques can be treated to the thematic appreciation test
(TAT), which consists of a series of pictures of ordinary as well as unusual events. In some of
these pictures, the persons or objects are clearly depicted, whereas in others they are relatively
vague.
The respondent is asked to tell stories about these pictures.
The respondents
interpretation of the pictures gives indications of that individuals personality.

In marketing research, uses of picture response techniques, respondents are shown a
picture and asked to tell a story describing it. The responses are used to evaluate attitudes
towards the topic and describe the respondents.
Cartoon Tests: cartoon characters are shown in a specific situation related to the problem. The
respondents are asked to indicate the response that one cartoon character might make to the
comment(s) to another character.
The responses indicate the respondents feelings, beliefs and attitudes towards the
situation. Cartoon tests are simpler to administer and analyze than picture response techniques.
173

Expressive Techniques: projective technique in which the respondent is presented with a verbal
or visual situation and asked relate the feelings and attitudes of other people to the situations.
The respondents express not their own feelings or attitudes, but those of others. The two
main expressive techniques are role playing and third-person technique.
Role Playing: respondents are asked to assume the behavior of someone else.
The researcher assumes that the respondents will project their own feeling into the role.
These can then be uncovered by analyzing the responses.
Third-person Techniques: projective technique in which the respondent is presented with a

verbal or visual situation and asked to relate the beliefs and attitudes of a third person to the
situation.
This third person might be a friend, a neighbor, a colleague or a typical person. Again
the researcher assumes that the respondent will reveal personal beliefs and attitudes while
describing the reactions of a third party. Asking the individual to respond in a third person
reduces the social pressure to give an acceptable answer.
ADVANTAGES AND DISADVANTAGES OF PROJECTIVE TECHNIQUES

Projective techniques have a major advantage over unstructured direct techniques (focus
groups and depth interviews). They may elicit responses that subjects would be unwilling or
unable to give if they knew the purpose of the study. At times, in direct questioning, the
respondent may intentionally or un-intentionally misunderstand, misinterpret or mislead the
researcher.
In these cases, projective techniques can increase the validity of responses by
disguising the purpose. This is particularly true when the issue to be addressed are personal,
sensitive or subject to strong social norms.
Projective techniques are also helpful when
underlying motivations beliefs and attitudes are operating at a sub-conscious level.

174

Projective techniques suffer from many of the disadvantages of unstructured directive
techniques but to a greater extent. These techniques generally require personal interview with
highly trained interviewers. Skilled interpreters are also required to analyze the responses.
Hence, they tend to be expensive. Furthermore, there is a serious risk of interpretation bias.
With the exception of word association, all techniques are open-ended making the analyses and
interpretation difficult and subjective.
Some projective techniques, such as role playing, require respondents to engage in
unusual behavior.
In such cases the researcher may assume that respondents who agree to
participate are themselves unusual in some way and therefore not representative of the
population of interest. As a result, it is desirable to compare findings generated by projective
techniques with the finding of the other techniques that permit a more representative sample.
175

A COMPARISON OF FOCUS GROUPS, DEPTH INTERVIEWS AND PROJECTIVE
TECHNIQUES
Criteria
Focus groups
Depth interviews
Projective
techniques
Degree of structure
Relatively high
Relatively medium
Relatively low
Probing of individual respondents
Low
High
Medium
Moderator bias
Relatively
Relatively high
Low to high
medium
Interpretation bias
Relatively low
Relatively medium
Relatively high
Uncovering sub-conscious information
Low
Medium to high
High
Discovering innovative information
High
Medium
Low
Obtaining sensitive information
Low
Medium
High
Involve unusual behavior/questioning
No
To a limited extent
Yes
Overall usefulness
Highly useful
Useful
Somewhat useful
176

APPLICATIONS OF PROJECTIVE TECHNIQUES
Projective techniques are used frequently than are unstructured direct methods (focus
groups and depth interviews). A possible exception may be word association, which is used
commonly to test brand names and occasionally to measure attitudes about particular products,
brands, packages or advertisements.
Projective techniques should be used when the required information cannot be accurately
obtained by direct methods.
Projective techniques should be used for exploratory research to gain initial insights and
understandings.
Given their complexity, projective techniques should not be used naively.
177

OBSERVATIONAL AND PHYSIOLOGICAL MEASURES
OBSERVATION METHODS
Observation involves recording the behavioral patterns of people, objects and events in a
systematic manner to obtain information about the phenomenon of interest. The observer does
not question or communicate with the people being observed. Information may be recorded as
the events occurred or from records of past events. Observational methods may be structured or
unstructured, direct or indirect. Furthermore, observations may be conducted in a natural or
contrived environment.
Structured observation: observation technique in which the researcher clearly defines the
behaviors to be observed and the methods by which they will be measured.
Unstructured observation: observation that involves a researcher monitoring all relevant

phenomenon without specifying the details in advance.
DISGUISED V/S UNDISGUISED OBSERVATION

In disguised observation, the respondents are unaware that they are being observed.
Disguised enable respondents to behave naturally; people tend to behave differently when they
know they are being observed. Disguised may be accomplished by using one way mirror, hidden
cameras or in-conspicuous mechanical devices. Observers may be disguised as shoppers or sales
clerks or in other appropriate roles.
In undisguised observation, the respondents are aware that they are under observation.
For example, they may be aware of the presence of the observer.
178

NATURAL V/S CONTRIVED OBSERVATIONS
Natural observations involve 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.
The advantage of natural observation is that the observed phenomenon will more
accurately reflect the true phenomenon. The disadvantages are the cost of waiting for the
phenomenon to occur and the difficulty of measuring the phenomenon in a natural setting.
OBSERVATION METHODS CLASSIFIED BY MODE OF ADMINISTRATION
Observation Methods
Personal
Observation
Mechanical
Observation
Audit
Content
Analysis
Trace
Analysis
Personal observation: an observational research strategy in which human observers record the
phenomenon being observed as it occurs.
In personal observation, a researcher observes actual behavior as it occurs. The observer
does not attempt to control or manipulate the phenomenon being observed. The observer merely
records what takes place in an natural (example: a store) or a contrived environment (example: a
research facility). For example, a researcher might record traffic counts and observe traffic flows
in a department store. This information could aid in designing store layout and determining
location of individual departments, shelf locations, and merchandising displays.
179

Mechanical observation: an observational research strategy in mechanical devices, rather than
human observers, record the phenomenon being observed.
In mechanical observation, the mechanical devices may or may not require the
respondents direct participation. They are used of continuously recording ongoing behavior for
later analysis.
Of the mechanical devices that do not require the respondents direct participation, the
A.C. Nielsen audimeter is best known.
The audimeter is attached to a television set to
continually record what channel the set is tuned to. Recently, people meters have been
introduced. People meters attempt to measure not only the channels to which a set is tuned but
also who are watching. Other common examples include turnstiles that record the number of
people entering or leaving the building, and traffic counter places across streets to determine the
number of vehicles passing certain locations. On-sight cameras (still, motion picture or video)
are increasingly used by retailers to assess package designs, floor displays and traffic flow
patterns. Technology advances such as the Universal Product Code (UPC) have made a major
impact on mechanical observation. The UPC system together with optical scanners, allow for
mechanized information collection regarding consumer purchases by product category, brand,
store type, price and quantity.
In contrast, many mechanical observation devices do require respondent involvement.
These mechanical devices may be classified into five groups:
Eye-tracking monitors
Pupilometers
Psychogalvanomerers
Voice pitch analyzers
Devices measuring response latency.
180

Eye-tracking equipment, such as oculometers, eye cameras or eye view minuters, records
the gaze movements of the eye. These devices can be used to determine how a respondent reads
an advertisement or views a TV commercial and for how long the respondent looks at various
parts of the stimulus. Such information is directly relevant to assessing advertising effectiveness.
The pupilometer measures changes in the diameter of the pupils of the respondents eyes.
Respondents are asked to look at a screen on which an advertisement or other stimulus is
projected. Image brightness and distance from the respondents eyes are held constant. Changes
in pupil size are interpreted as changes in cognitive (thinking) activity resulting from exposure to
the stimulus. The underlying assumption is that increased pupil size reflects interest and positive
attitudes towards stimulus.
The psycho galvanometer measures galvanic skin response (GSR) or changes in the
electrical resistance of the skin. The respondent is fitted with small electrodes that monitor
electrical resistance and is shown stimuli such as advertisements, packages and slogans. The
theory behind this device is that physiological changes, such as increase perspiration, accompany
emotional reactions. Excitement leads to increased perspiration, which increases the electrical
resistance of the skin. From the strength of the response, the researcher infers the respondents
interest level and attitudes towards the stimuli.
Voice pitch analysis measures emotional reactions through changes in the respondents
voice. Changes in the relative vibration frequency of the human voice that accompany emotional
reaction are measured with audio-adapted computer equipment.
Response latency is the time a respondent takes before answering a question. It
is used a measure of the relative preference for various alternatives. Response time is thought to
be directly related to uncertainty. Therefore, the longer a respondent takes to choose between
two alternatives, the closer the alternatives are in terms of preference. On the other hand, if the
respondent makes a quick decision, one alternative is clearly preferred. With the increased
popularity of computer-assisted data collection, response latency can be recorded accurately and
without the respondents awareness.
181

AUDIT
In an audit, the researcher collects data by examining physical records or performing
inventory analysis. Audits have two distinguishing features. First data are collected personally
by the researcher. Second the data are based on counts, usually of physical objects.
Pantry Audit: type of audit in which the researcher inventories the brands, quantities and
package sizes of products in a consumers home.
Pantry audits greatly audits the problem of untruthfulness or other forms of response bias.
However, obtaining permission to examine consumers pantries can be difficult, and the field
work is expensive. Furthermore, the brands in the pantry do not necessarily reflect the most
preferred brands or the brands purchased most often.
CONTENT ANALYSIS
Content Analysis: the objective, systematic and quantitative description of the manifest content
of a communication.
Content analysis is an appropriate method and the phenomenon to be observe is
communication, rather than behavior or physical objects.
It is defined as the objective,
systematic and quantitative description of the manifest content of a communication. It includes

observation as well as analysis. The unit of analysis may be words (different words or types of
words in the message), 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. Marketing research applications involve observing and analyzing
the content or message of advertisements, newspaper articles, television and radio programs and
so on. For example, the frequency of appearance of black women and members of other
minority groups in mass media has been studied using content analysis. In the department store
patronage project, content analysis may be used to analyze magazine advertisements of the
sponsoring and competing stores to compare their projected images.
182

TRACE ANALSYSIS
Trace analysis: an approach in which data collection is based on physical traces, or evidence, of
past behavior.
An observation method that can be inexpensive if used creatively is trace analysis. The
traces may be left intentionally or unintentionally by the respondents. To illustrate, in the
context of the department store patronage project, store charge card slips are traces that can be
analyzed to examine shoppers store credit usage behavior. Several other innovative applications
of trace analysis have been made in marketing research.
The selective erosion in a museum indexed by the replacement rate was used to
determine the relative popularity of exhibits.
The number of different finger prints on a page was used to gaze 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. Advertisers use the estimates to decide on
which stations to advertise.
The age and conditions of cars in a parking lot were used to assess the affluence of
customers.
The magazines people donated to charity were used to determine peoples favorite
magazines.
Internet visitors leave traces that can be analyzed to examine browsing and usage
behavior as in the following example,
183

Have a cookie
Many users do not realize it, but they have been served a cookie or two while on the
internet. A cookie is not a culinary delight in this case. It is sophisticated means by which a
website can collect information on visitors.
Often this process takes place without the
knowledge of the web surfer.

The cookie is a group of letters and numbers stored in a web surfers browser that identify
the user. Companies and individuals that host websites use cookies to collect marketing research
information on visitors. Cookies follow the traveler through the website and record the pages
accessed by the visitor, and the number of minutes spent on each page. Your name, address,
phone number and access site can be collected by the cookie and saved into a database if the
visitor enters any information. In essence, the cookie collects data on the user during every visit
to the site.
Hotwireds Packet uses cookies to collect information about site traffic. The information
helps marketing personnel at the electronic and print magazine to collect demographics on the
reader. Also, the company can monitor hits on particular topics and gain valuable feedback on
user interest. Data collection is based on visitor behavior. This disguise technique enables
Hotwired to monitor use patterns and to eliminate socially acceptable response bias. Information
collected in this manner has been used to modify editorial content and format to make the
magazine more appealing.
Although trace analysis has been creatively applied, it has limitations. Often the data are
incomplete and several assumptions have to be made in order to analyze them. Current evidence
indicates that it should be used only when no other approach is possible. Moreover, ethical
issues, such as the use of cookies, should be duly addressed.
184
A COMPARATIVE EVALUATION OF OBSERVATION METHODS

Criteria
Mechanical
observation
observation
Low
Low to high
Medium
Audit
Content
Trace
analysis
analysis
High
High
Medium
Low to high
Low
High
High
High
Low to high
High
Medium
Low
High
Low
Low
Medium
Medium
Analysis bias
High
Low to medium
Low
Low
Medium
General
Most
Can be intrusive
Expensive
Limited to
Method
remarks
flexible
communications
of last
Degree of
Personal
structure
Degree of
disguise
Ability to
observe in
natural setting
Observation
bias
resort
185

RELATIVE ADVANTAGES OF OBSERVATION
The greatest advantage of observational methods is that 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. These include behavior
patterns of which they respondent in unaware or is unable to communicate. For example,
information babies toy preferences is best obtained by observing babies at play. Moreover, if the
observed phenomenon occurs frequently or is of short duration, observational methods may cost
less and be faster than survey methods.
RELATIVE DISADVANTAGES OF OBSERVATION

The most serious disadvantage of observation is that the reasons for the observed
behavior may not be determined because little is known about the underlying motives, beliefs,
attitudes and preferences. For example, people observed buying a brand of cereal may or may
not like themselves. They may be purchasing that brand for someone else in the household.
Another limitation of observation is that selective perception (bias in the researchers perception)
can bias the data. In addition, observational data is often time consuming and expensive and it is
difficult to observe certain forms of behavior such as personal activities. Finally, in some cases
the use of observational methods may be unethical, as in monitoring the behavior of people
without their knowledge of consent.
To sum up, observation has the potential to provide valuable information when properly
used. From a practical standpoint, it is best to view observation as a complement to survey
methods, rather than as being in competition with them.
186
MODULE 7
(SAMPLING)
187

SAMPLE OR CENSUS
Population: The aggregate of all the elements, sharing some common set of characteristics,
comprising the universe for the purpose of the marketing research problem.
Census: A complete enumeration of the elements of a population or study objects.
Sample: A subgroup of the elements of the population selected for participation in the study.
Table: Sample versus Census

Conditions Favoring the use of
Sample
Census
Budget
Small
Large
Time available
Short
Long
Population size
Large
Small
Variance in the Characteristic
Small
Large
Cost of sampling errors
Low
High
Cost of non sampling errors
High
Low
Destructive
Non Destructive
Nature of measurement
188

The Sampling Design Process:
Define the Population
Determine the Sampling

Frame
Select Sampling
Technique(s)
Determine the Sample Size
Execute the Sampling

Process
1. Define the target Population
Target Population: The collection of elements or objects that possess the information
sought by the researcher and about which inferences are to be made.
The target population should be defined in terms of elements, sampling units, extent and
time. An element is the object about which or from which the information is desired.
In survey research, the element is usually a respondent. A sampling unit is an
element or a unit containing the element, that is available for selection at some stage of
the sampling process. Suppose that Revlon wanted to assess consumer response to a new
line of lipsticks and wanted to sample females over 18 years of age. It may be possible to
sample females over 18 directly, in which case the sampling unit would be the same as an
element. Alternatively, the sampling unit might be households.
In the latter case, households would be sampled and all females over 18 in each
selected household would be interviewed. Here, the sampling unit and the population
element are different. Extent refers to the geographical boundaries, and the time factor is
time period under consideration.
189

2. Determine the Sampling Frame
A sampling frame is a representation of the elements of a target population. It

consists of a list or a set of directions for identifying the target population. Examples of
sampling frame include the telephone book, an association directory linked to the firms in
an industry, a mailing list purchased from a commercial organization, a city directory, or
a map.
In some instances the discrepancy between the population and the sampling frame
is small enough to ignore. However, in most cases, the researcher should recognize and
treat the sampling frame error. This can be done in at least three ways. One approach is to
redefine the population in terms of the sampling frame. If the telephone book is used as a
sampling frame, the population of the households could be redefined as those with a
correct listing in a telephone book in a given area. Although this approach is simplistic, it
does prevent the researcher from being misled about the actual population being
investigated,
Another way is to account for sampling frame error by screening the respondents
in the data collection phase. The respondents could be screened with respect to
demographic characteristics, familiarity, product usage, and other characteristics to
ensure that they satisfy the criteria for the target population. Screening can eliminate
appropriate elements contained in the sampling frame, but it cannot account for elements
that have been omitted.
190

A Classification of Sampling Techniques
Sampling Techniques
Non-probability Sampling
Techniques
Convenienc
e Sampling
Simple
Random
Sampling
Judgmental
Sampling
Probability Sampling
Techniques
Quota
Sampling
Systematic
sampling
Proportionat
e
Snowball
Sampling
Stratified
Sampling
Cluster
Sampling
Other
Sampling
Techniques
Disproportionat
e
191

Sampling techniques that do not use chance selection procedures. Rather, they rely on the
personal judgment of the researcher.
Non-probability samples may yield good estimates of the population characteristics.

However they do not allow for objective evaluation of the precision of the sample results.
Because there is no way of determining the probability of selecting any particular element for
inclusion in the sample, the estimates obtained are not statistically projectable to the population.
Commonly used non-probability sampling techniques include convenience sampling, judgmental
sampling, quota sampling, and snowball sampling.
A sampling procedure in which each element of the population has a fixed probabilistic
chance of being selected for the sample.
Every potential sample need not have the same probability of selection, but it is possible
to specify the probability of selecting any particular sample of a given size. This requires not
only a precise definition of the target population, but also general specification of the sampling
frame. Because sampling elements are selected by chance, it is possible to determine the
precision of the sample estimates of the characteristics of interest.
NONPROBABILITY SAMPLING TECHNIQUES
Convenience Sampling
A non-probability sampling technique that attempts to obtain a sample of convenient
elements. The selection of sampling units is left primarily to the interviewer.
Examples of convenience sampling include mall-intercept interviews without qualifying the

respondents, tear-out questionnaires included in magazine and people on the street interviews.
192

Advantages:
Convenience sampling is the least expensive and the least time consuming of all the
sampling techniques. The sampling units are accessible, easy to measure, and cooperative.
Limitations:
Many potential sources of selection bias are present, including respondent self-selection.
Convenience samples are not representative of any definable population. Hence, it is not
theoretically meaningful to generalize to any population from a convenience sample, and
convenience samples are not appropriate for marketing research projects involving population
inferences. Convenience samples are not recommended for descriptive or causal research, but
they can be used in exploratory research for generating ideas, insights, or hypotheses.
Convenience samples can be used for focus groups, pretesting questionnaires, or pilot studies.
Judgmental Sampling
A form of convenience sampling in which the population elements are purposively
selected based on the judgment of the researcher.
Common examples include test markets selected to determine the potential of a new
product and department stores selected to test a new merchandising display a system.
Judgmental sampling is low cost, convenient, and quick, yet it does not allow direct
generalizations to a specific population, usually because the population is not explicitly.
Judgmental sampling is subjective and its value depends entirely on the researchers judgment,
expertise, and creativity.
193

Quota Sampling
Quota sampling is a two-stage restricted judgmental sampling. The first stage consists of
developing quotas, of population elements. To develop these quotas, the researcher lists relevant
control characteristics and determines the distribution of these characteristics in the target
population. The relevant control characteristics, which may include sex, age, and race, are
identified on the basis of judgment. Often the quotas are assigned so that the proportion of the
sample elements possessing the control characteristics is the same as the proportion of the
population elements with these characteristics. In other words, the quotas ensure that the
composition of the sample is the same as the composition of the population with respect to the
characteristics of interest. In the second stage, sample elements are selected based on
convenience or judgment. Once the quotas have been assigned, there is considerable freedom in
selecting the elements to be included in the sample. The only requirement is that the elements
selected fit the control characteristics.
Advantages:
Its advantages are the lower costs and greater convenience to the interviewers in selecting
elements for each quota. Under certain conditions, quota sampling obtains results close to those
for conventional probability sampling.
Disadvantages:
If a characteristic that is relevant is overlooked, the quota sample will not be
representative. Relevant control characteristics are often omitted, because there are practical
difficulties associated with including many control characteristics.
The elements within each quota are selected based on convenience or judgment, so many sources
of selection bias are potentially present. The interviewers may go to selected areas where eligible
respondents are more likely to be found. Likewise, they may avoid people who look unfriendly
or are not well-dressed, or those who live in undesirable locations.
194

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. This process
may be carried out in waves by obtaining referrals, thus leading to a snowballing effect. Even
though probability sampling is used to select the initial respondents, the final sample is a nonprobability sample. The referrals will have demographic and psychographic characteristics that
are more similar to the persons referring them than would occur by chance.
Snowball sampling is used in industrial buyer-seller pairs.
The major advantage of snowball sampling is that it substantially increases the likelihood
of locating the desired characteristic in the population. It also results in relatively low sampling
variance and costs.
PROBABILITY SAMPLING TECHNIQUES

Probability sampling techniques vary in terms of sampling efficiency. Sampling
efficiency is a concept that reflects a trade-off between sampling cost and precision. Precision
refers to the level of uncertainty about the characteristic being measured. The greater the
precision, the greater the cost, and most studies require a trade-off. The researcher should strive
for the most efficient sampling design, subject to the budget allocated. The efficiency of a
probability sampling technique may be assessed by comparing it to that of simple random
sampling.
195

Simple Random Sampling (SRS)
A probability sampling technique in which each element in the population has a known
and equal probability of selection. Every element is selected independently of every other
element and the sample is drawn by a random procedure from a sampling frame.
To draw a simple random sample, the researcher first compiles a sampling frame in
which each element is assigned a unique identification number. Then random numbers are
generated to determine which elements to include in the sample. The random numbers may be
generated with a computer routine or a table.
Advantages:
It is easily understood. The sample results may be projected to the target population.
Most approaches to statistical inference assume that the data have been collected by simple
random sampling.
Limitations:
First, it is often difficult to construct a sampling frame that will permit a simple random
sample to be drawn. Second, SRS can result in samples that are very n large and spread over
large geographic areas, thus increasing the time and the cost of data collection. SRS may or may
not result in a representative sample.
Although samples drawn will represent the population well on average, a given simple random
sample may grossly misrepresent the target population. This is more likely if the size of the
sample is small. For these reasons, SRS is not widely used in marketing research.
Systematic Sampling
A probability sampling technique in which the sample is chosen by selecting a random
starting and then picking every ith element in succession from the sampling frame. For example,
there 1,00,000 elements in the population and a sample of 1000 is desired. I n 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 element 23, 123, 223, 323, 423, 523, and so on.
196

Systematic sampling is similar to SRS in that each population has a known and equal
probability of selection. However, it is different from SRS in that only the permissible samples
of size n that can be drawn have a known and equal probability of selection. The remaining
samples of size n have a zero probability of being selected.
Advantages:
Systematic sampling is less costly and easier than SRS, because random selection is done
only once. Moreover, the random numbers do not have to be matched with individual elements
as SRS. Since some lists contain millions of elements, considerable time can be saved. This
reduces the costs of sampling. If information related to the characteristic of interest is available
for the population, systematic sampling can be used to obtain a more representative and reliable
(lower sampling error) sample than SRS. Another relative advantage is that systematic sampling
can even be used without knowledge of the composition (elements) of the sampling frame. For
example, every ith leaving a department store or mall can be intercepted. For these reasons,
systematic sampling is often employed in consumer mail, telephone, and, mall-intercept
interviews.
Stratified Sampling
Stratified sampling is 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. Technically, only SRS should be employed in selecting the elements
from each stratum. In practice, sometimes systematic sampling and other probability sampling
procedures are employed. Stratified sampling differs from quota sampling in that the sample
elements are selected probabilistically rather than based on convenience or judgment. A major
objective of stratified sampling is to increase precision without increasing cost.
197

Cluster Sampling
In cluster sampling, the target population is first divided into mutually exclusive and
collectively exhaustive subpopulations, or clusters. Then random sample of clusters is selected,
based on a probability sampling technique such as SRS. For each selected cluster, either all the
elements included in the sample or a sample of elements is drawn probabilistically. If all the
elements in each cluster are included in the sample, the procedure is called one-stage cluster
sampling. If a sample of elements is drawn probabilistically from each selected cluster, the
procedure is two-stage cluster sampling.
The key distinction between cluster sampling and stratified sampling is that in cluster
sampling only a sample of subpopulations (clusters) is chosen, whereas in stratified sampling all
the subpopulations (Strata) are selected for further sampling. The objectives of the two methods
are also different. The objective of cluster sampling is to increase sampling efficiency by
decreasing costs. The objective of stratified sampling is to increase precision. With respect to
homogeneity and heterogeneity, the criteria for forming clusters are just the opposite of that for
strata.
Elements within the cluster should be as heterogeneous as possible, but clusters

themselves should be as homogeneous as possible. Ideally, each sampling frame is needed only
for those clusters selected for the sample.
A common form of cluster sampling is area sampling, in which the clusters consist of
geographic areas, such as counties, housing tracts, or blocks. If only one level of sampling takes
place in selecting the basic elements (for example, the researcher samples blocks and all the
households within the selected blocks are included in the sample), the design is called singlestage area sampling. If two (or more) levels of sampling take place before the basic elements are
selected (the researcher samples blocks, and then samples households within selected blocks),
the design is called two-stage (or multistage) area sampling. The distinguishing feature of onestage area sample is that all of the households in the selected blocks (or geographic areas) are
included in the sample.
198

STRENGTHS AND WEAKNESSES OF BASIC SAMPLING TECHNIQUES
Techniques
Strengths
Weaknesses
Convenience Sampling
Less expensive, least time
Selection bias, sample
consuming, most convenient.
representative; not
recommended for
descriptive or causal
research
Judgmental Sampling
Low cost, convenient,

Not time consuming.
Quota Sampling
Snowball Sampling
Does not allow

generalization; subjective.
Sample can be controlled for
Selection bias, no assurance
certain characteristic.
of representativeness.
Can estimate rare characteristics.
Time-consuming.
Easily understood; results
Difficult to construct
projectable.
sampling frame; expensive;
Simple Random Sampling(SRS)
lower precision; no
assurance of
representativeness.
Systematic Sampling
Can increase representativeness,
Can decrease
easier to implement than SRS;
representativeness.
sampling frame not necessary.

Stratified Sampling
Includes all important
Difficult to select
subpopulations; precision.
relevant stratification
variables; not feasible
to stratify on many
variables; expensive.
Cluster Sampling
Easy to implement;
Imprecise; difficult to
cost effective.
compute and interpret

results.
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Simple Random Sampling
Select a suitable sampling frame.
Each element is assigned a number from 1-N (population size).
Generate n (sample size) different random numbers between 1 and N. This can be done
using a microcomputer or mainframe software package or using a table of simple random
numbers (Table 1 in Appendix of Statistical Tables). To use Table 1, select the
appropriate number of digits (e.g., if N=100, select three digits). Arbitrarily select a
beginning number. Then proceed either up or down until n different numbers between 1
and N have been selected. Note, discard 0, duplicate numbers, and numbers greater than
N.
The numbers generated denote the elements which should be included in the sample.
Systematic Sampling
Each element is assigned a number from 1 to N (population size).
Determine the sampling interval, i, i=N/n. If i is a fraction, round to the nearest integer.
Select a random number, r, between 1 and i, as explained in simple random sampling.
The elements with the following numbers will comprise the systematic random sample: r,
r+i, r+2i, r+3i, r+4i . r+(n-1)i.
Stratified Sampling
Select the stratification variable(s) and the number of strata, H.
Divide the entire population into H strata. Based on the classification variable, each
element of the population is assigned to one of the H strata.
In each stratum, number the elements from 1 to Nh, (the population size of stratum h).
Determine the sample size of each stratum, nh, based on proportionate or disproportionate
stratified sampling.
200

H
Note, nh = n.
h=1
In each stratum, select a simple random sample of size nh.
Cluster Sampling
We describe the procedure for selecting a two-stage PPS sample, because this
represents the most commonly used general case.
Assign a number from 1 to N, to each element in the population.
Divide the population into C clusters, of which c will be included in the sample.
Calculate the sampling interval i,i=N/c. If i is a fraction, round to the nearest interger.
Select a random number, r, between 1 and i, as explained in simple random sampling.
Identify elements with the following numbers: r, r+i, r+2i, r+3i, r+4i . r+(c-1)i.
Select the clusters that contain the identified elements.
Select the sampling units within each selected cluster based on SRS or systematic
sampling. the number of sampling units selected from each sample cluster is
approximately the same and equal to the n/c.
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CHOOSING NONPRPBABILITY VERSUS PROBABILITY SAMPLING
Conditions Favoring the Use of
Factors
Non-probability sampling
Nature of research
Exploratory
Conclusive
Relative magnitude of
Non-sampling errors are
Sampling errors are larger.
sampling and non- sampling
larger.
errors.
Variability in the population.
Homogeneous (low).
Heterogeneous(high).
Statistical
Unfavorable.
Favorable.
Favorable.
Unfavorable.
considerations
Operational considerations.
Determine the Sample Size

Sample size refers to the number of elements to be included in the study. Determining
the sample size is complex and involves several qualitative and quantitative considerations.
Important qualitative factors in determining the sample size include: (1) The importance of
decision, (2) the nature of the research, (3) the number of variables, (4) the nature of analysis, (5)
sample sizes used in similar studies, (6) incidence rates, (7) completion rates, (8) resource
constraints.
In general, for more important decisions, more information is necessary and the
information should be obtained more precisely. This calls for larger samples, but as the sample
size increases, each unit of information is obtained at a greater cost. The degree of precision may
be measured in terms of standard deviation of the mean. The standard deviation of the mean is
inversely proportional to the square root of the sample size. The larger the sample, the smaller
the gain in precision by increasing the sample size by one unit.
The nature of the research also has an impact on the sample size. For exploratory research
design, such as those using qualitative research, the sample size typically small. For conclusive
research, such as descriptive surveys, larger samples are required. Likewise, if data are being
collected on a large number of variable, larger samples are required.
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If sophisticated analysis of the data using multivariate techniques is required, the sample
size should be large. The same applies if the data are to be analyzed in great detail. Thus, a larger
sample would be required if the data are being analyzed at the subgroup or segment level than if
the analysis is limited to the aggregate or total sample.
Sample size is influenced by the average size of samples in similar studies. These sample
sizes have been determined based on experience and can serve as rough guidelines, particularly
when non-probability sampling techniques are used.
Finally, the sample size decision should be guided by a consideration of the resource
constraints. In any marketing research project, money and time are limited. Other constraints
include the availability of qualified personnel for data collection. The sample size required
should be adjusted for the incidence of eligible respondents and the completion rate.
SAMPLES SIZES USED IN MARKETING RESEARCH STUDIES

Type of study
Minimum
Typical Range
Size
Problem identification research (e.g. Market potential)
500
1,000-2,500
Problem solving research (e.g., pricing)
200
300-500
Product tests
200
300-500
Test marketing studies
200
300-500
TV/radio/print advertising (per commercial or ad test)
150
200-300
Test market audits
10 stores
10-20 stores
Focus groups
6 groups
10-15 groups
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Execute the Sampling Process
Execution of the sampling process requires a detailed specification of how the sampling
design decisions with respect to the population, sampling frame, sampling unit, sampling
technique, and sample size are to be implemented. If households are the sampling unit, and
operational definition of a household is needed. Procedures should be specified for vacant
housing units and for callbacks in case no one is at home.
METHODS OF DETERMINING SAMPLE SIZE

1. Unaided judgement
It is an arbitrary approach of arriving at sample size giving no explicit
consideration to either the likely precision of the sample results or the cost of obtaining
them.
2. All you can afford
In this method, a budget for the project is set and after the estimated fixed costs of
designing the project, preparing a questionnaire, analyzing the data and preparing the
report are deducted the remainder is allocated to sampling.
Dividing this remaining amount by the estimated cost per sampling unit gives the
sample size.
This approach produces sample sizes that are longer than required as well as sizes
that are not optional.
3. Average size for samples for similar studies
The sample sizes reported in several hundred studies are worked out and for
similar studies the same number is chosen.
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4. Required size per cell
Used in simple random, stratified random, purposive and quota sampling.
Depending on the parameters and sub classifications number of cells are arrived
at. Then based on required number per cell sample size can be arrived at.
For example:- in study of profile of under graduates, (PUC 1st year and 2nd year)
among them in different in name groups, 2000 , 2000-4000, 4000-6000, >6000.
Then we have 2 x 4 = 8 cells. If minimum 40 members are required from each
cell the sample size required will be 40 x 8 = 320.
5. Use of a Bayesian Statistical Model
It involves finding the difference between the expected value of the information to
be provided by a sample and the cost of taking the sample for each potential size. The
difference is the expected net gain from sampling (ENGS).
The ample size with the largest positive ENGS is chosen.
6. Use of Traditional Statistical Method

There are various traditional statistical formulas for determining the size of
probability samples.
They are based on three common variables:
An estimate of the variance in the population from which the sample is to
be drawn.
The error from sampling that the researcher will allow, and
The desired level of confidence that the actual sampling error will be
within the allowable limits.
205
n = z2
e2
where: z = Level of significance
= Standard Deviation
e = Permissible error
206
CASES
207

CASE No. 15
THE BOOKSHOP
Bharati, co-owner of The Bookshop, sat at her desk. What we still need, she thought to
herself, are estimates are of demand and market share but, at least we have two weeks to get
them.
Her office was located at the back of the 550 sq.ft. bookshop specializing in quality
paperbacks. The shop carries over 10, 000 titles and sold more than Rs.25lakh worth of books in
1989. Titles were stocked in 18 categories ranging from art, biography and cooking to religion,
sports and travel.
The Bookshop was located in a small shopping area across the road from the university.
It had about 28,000 undergraduate and graduate students majoring in arts, commerce, science
and other professions. The University admissions office predicted that the number of new
students would grow at the rate of about 1 percent per year through the 1990s. There was a large
hospital nearby which was attached to the university as a teaching unit.
The Bookshop did not carry textbooks even though many of its customers were students.
Both Bharati and her partner, Rajan, believed that the largest bookshop in the area had a strong
position in the text book market in terms of price, location and reputation. Two months ago The
Bookshop had also stopped selling classical CDs. Bharati recalled the Rs. 2 lakh or so they had
lost on the venture. Another mistake like that and the bank will be running The Bookshop, she
thought. And, despite what Rajan thinks, the copy service could just be that final mistake.
The idea for a copy service was Rajans. In November, the small coffee shop next door to
The Bookshop (under the same roof) went out of business. Rajan immediately asked the
buildings owner, Mr. Sharma, about the future of the 600 sq. ft space. Upon learning it was
available; he had met with Bharti to discuss his idea for a copy service.
208

It cant but make money, he said. I could work there part-time and the rest of the time
we could hire students. We would call it Copycats and even use a sign with the same kinds of
letters as we use in The Bookshop. I am sure I could ask Mr. Sharma to knock the wall out
between the two stores. We could probably rent most of the coping equipment, so theres not
much risk.
Bharti was not so sure. She had already talked to Mr. Sharma. He wanted a five- year
lease with an option to renew at Rs. 5,000 per month. He had promised to hold the offer open for
two weeks before offering the space to anyone else. Representatives from coping equipment
firms had estimated that charges could run between Rs. 10,000 and Rs. 20,000 per month,
depending on equipment, service and whether the equipment was brought or leased. The copy
service would also incur other fixed costs in terms of electricity and similar charges like interest,
insurance, etc. Furthermore, The Bookshop would have to invest a sizeable sum in fixtures and
stock (and perhaps equipment). Bharti concluded that the service would begin to make a profit
at about 20,000 copies per month under best-case assumptions and at about 60,000 copies per
month under worst case assumptions.
Further, informal investigation had identified three competitors. One was the copy center
located in the university library on campus, about one kilometer away. The second was Tinkos,
a private firm, located on the south side of the campus, over one-and-a half kilometers away. The
third was the facility provided by the Students Association at the University. All the competitors
offered service while-you-wait on several machines. The librarys price was about ten percent
higher than the two existing alternatives, but these two also offered collating, binding and other
services, all on a seven-day-a-week schedule.
Actually, investigations had shown that a fourth major competitor existed in the
university departmental machines scattered throughout the campus. Most faculty and
administrative coping was done on these machines but students were allowed to use them at cost.
In addition, at least 20 self-service machines could be found in the University library and in
nearby shops scattered around the fringes of the campus.
209

Bharti picked up the telephone and dialed her partner. When Rajan answered, Bharti
asked, Rajan have you any idea how many copies a student might make in a season? I mean,
according to my figures, we would break even somewhere between 20,000 and 60,000 copies per
month. I dont know if this is half the market or what.
You know, I have no idea, Rajan answered. I suppose when I was going to University
I probably made 10 copies a month of articles, class notes, old tests and so on.
Same here, Bharti said, but some graduate students must have done that many times
each week. You know, I think we ought to do some marketing research before we go much
further on this. What do you think?
Sure, so long as it doesnt take much time or money. What did you have in mind,
Bharti?
Well, we could easily interview our customers as they leave the store and ask
themselves how many copies theyve made in the past week or so. Of course, we would have to
make sure they were students.
What about telephone survey? Rajan asked. That way we can have a random sample.
We would still ask about the number of copies, but then we would know for sure they were
students.
Or what about interviewing students in the union cafeteria? There are always plenty
there around midday, as I remember, and this might be even quicker.
Im not sure whats the best way to go about it. Why dont I come in this afternoon and
we can talk about it some more?
Good idea, Bharti answered. Between the two of us, we should be able to come up
with something.
210

1. What sources of information should Bharati and Rajan use when planning the market
research study?
2. How should they gather data?
3. What questions should they ask?
4. How should they sample?
211

CASE No. 16
REVIVAL OF THREE STAR HOTEL
A three-star hotel located in Delhi has been experiencing a decline in its occupancy
during the past one year. The management has recently reviewed the problem and is seriously
considering attracting business executives as also to provide adequate facilities for holding
business conferences, workshops, etc.
Since this would involve some renovation of the existing building in addition to new
furniture and equipment, the management realizes it must be cautious in undertaking such an
expenditure.
Since its inception several years ago, the hotel has been maintaining a complete record of
its guests. When a person visits the hotel for the first time, details such as his name, age, sex,
permanent address, purpose of visit and duration of stay along with dates are entered on a card.
All subsequent visits along with the duration of stay are dated and recorded on the same card.
The guest file has expanded tremendously and contains over 8000 cards. The
management wants to make use of this readily available information along with any additional
information necessary in this regard.
Assuming that the management has entrusted you with this job, answer the following
questions:
1. If a sample is to be drawn from the guest file, describe the procedure you would adopt in
each of the following sample designs:
Simple random sampling.
Systematic random sampling.
Stratified random sampling.
Cluster sampling.
2. Which one of these sample designs would you select and why?
3. Specify the nature of data that you would collect from the sample respondents.
212
MODULE 8
(DATA REDUCTION & DATA ANALYSIS)
213

DATA REDUCTION
The steps involved in the reduction of data are:
1. Field controls
2. Editing
3. Coding
4. Transcribing
5. Generating new variables
6. Calculating summarizing statistics
The first five of these steps are concerned with developing a basic data array that is as
complete and as error-free as possible. The last step involves calculation made from the
array.
FIELD CONTROLS
Field controls are procedures designed to minimize errors during the actual collection of
data. These controls involve ensuring that the sampling, data collection and measurement tasks
are carried out as specified.
Sound field controls require both monitoring and validation procedures. Monitoring is
the observation of field work by supervisors or project directors as it occurs. Monitoring is
common in central location telephone interviewing.
Validation involved checking the accuracy of field work after it has been conducted.
Validation is particularly important in survey research where the temptation for interviewer
cheating may be present.
214

Survey research validation involves a supervisor or a separate interviewer re-contacting a
sample of respondents (generally 10-20 percent) from each interviewers list of completed
interviews. The purpose is to ensure that the interview took place and that the respondent was
asked all the questions on the questionnaire. The second objective is achieved by asking the
respondent to verify his or her answers to several questions taken from different parts of the
questionnaire.
EDITING
The responsibility of the editor is to ensure that the data requested are present, readable
and accurate. Unfortunately, many questionnaires are pre-coded and are entered directly into
computer processing with little or no editorial analysis. Although this approach can save time
and money, it often produces less accurate data. Data entry operators must decide what to do
with unclear responses, missing data or inconsistent responses. If the questionnaire is not precoded, clerical assistants may be assigned the task of transcribing questionnaire responses onto
code sheets. Like data entry operators, the assistants are seldom trained to deal with editorial
tasks.
Missing Data
It is very common for a questionnaire to be returned with one or more specific questions
unanswered. This is known as item non-response. The editor must decide what to do about such
missing data. Often it is possible and desirable to use the data as are. That is, the unanswered
questions are assigned a missing data code, perhaps a blank or a -0 and entered into the computer
along with the other observations.
On occasion, the editor can have respondents re-contacted to collect key bits of missing
information.
Alternatively, plug values, values developed in advance to use for missing data,
can be used.
215

Some questionnaires contain more missing data than others. The editor must decide how
much and what types of missing data constitute sufficient grounds for tossing or deleting the
entire questionnaire.
Ambiguous Answers
Many questionnaires contain one or more responses whose meaning is not clear.
However, answers similar to the following will also appear a significant number of times:
I almost never drink carbonated drinks, but when I do I usually have several.
10-15 Cokes and several fruit drinks.
12 if you count mixed drinks.
Other kinds of ambiguities with which editors must deal are illegible responses and
marks between response categories.
Accuracy/Quality
As editors review a series of questionnaires, they should not suspect responses.
Respondents will sometimes rush through questionnaires in an almost random manner. This
tends to produce a number of inconsistent responses such as a high-income category and a lowpaying job category, or unawareness of a brand that is also reported as frequently used.
Questionnaires containing such inconsistencies should be examined carefully and deleted from
the database if it appears that the respondents were haphazard in completing them.
Editors should also be alert for inconsistencies between the responses obtained by
different interviewers. Such inconsistencies may be expected if the interviewers are contacting
different respondent groups, such as in distinct geographic areas.
216

Finally, editors should be alert to individual questions that are frequently left unanswered
or that produce ambiguous responses. Such questions can sometimes be altered to improve
response quality during the interview.
CODING
Establishing Categories
Categories for the answers to multiple-choice or dichotomous questions are established at
the same time the question is formulated.
Open ended questions may also have response categories established at the time they are
formulated. However, it is common to create some or all of the response categories to openended questions after at least some of the questionnaires have been returned.
Since almost all marketing studies are analyzed by computer, each category must be
assigned a numerical value.
It is important that a category be available for every response, which often requires the
use of a catchall category such as other. Likewise, it is important to have a specified
category for non responses or missing data.
Three fairly common category values are assigned for missing data, the most common of
which is the value blank. That is, no value is assigned to missing data. However, this can
cause a problem, as some analytical programs read blanks as zeros. Thus, if the responses to a
question contain both 0 responses and missing data (no response), some analytical programs
will treat the missing data as zeros.
Another common approach to dealing with missing data involves the use of a constant
such as -9 that will not be one of the legitimate response values.
A third approach is to assign the missing data category a value that is one number larger
than the largest response value.
217

Assigning data to categories
After categories have been established and questionnaires or other measuring instruments
have been completed by at least some respondents, the observations must be assigned to
categories.
Many questionnaires, particularly those administered by telephone or personal interview,
are precoded.
That is, appropriate category values and column numbers are listed on the
questionnaires.
Postcoding involves the same procedure as precoding except that it is done after the
questionnaires are received. The advantage of postcoding is that the range of responses to the
open-ended questions are known before category values are assigned and columns reserved.
Coding open-ended responses is difficult and requires sound instructions to ensure
consistency between coders. Because of the complexity involved, a code book, which provides
explicit instructions for coding each variable and indicates the columns o be used for each
response, should be developed.
It is not uncommon to have questionnaires coded independently by two persons to reduce
errors.
Transcription of data
Transcription of data is the process of physically transferring data from the measuring
methods onto magnetic tape or disk, or directly into the computer. Other methods that are
sometimes used include the use of mark-sensed questionnaires and optical scanning. Mark
sensing requires that the answer be recorded by marking it with a special pencil in an area that is
coded for that answer; a machine reads the answer by sensing the area in which it is recorded.
Optical scanning involves direct machine reading of alpha numeric codes and
transcription onto magnetic tape or disk. These methods are usually too expensive and awkward
to use except for very large or repeated studies in which the same collection form is used.
Consumer panels, buyer intention surveys and the Census of Population are examples of
field studies in which automated transcription processes are used.
218

Data entry via a keyboard to magnetic tape or disk or directly into the computer will
normally be used in a marketing survey or experiment.
TABULATION OF FREQUENCY DISTRIBUTIONS AND CALCULATIONS OF

SUMMARIZING STATISTICS FOR EACH VARIABLE
Tabulation of Frequency Distribution

The tabulation process starts with the preparation of the basic data array. As described
earlier, this involves preparing a table comprised of the value for each variable for each sample
unit.
The next steps in the tabulation process are the preparation of one-way and n-way
frequency distributions.
One way frequency distributions

The frequency is simply the number of respondents who provided that particular value.
The percent or relative frequency is the percentage of all respondents who provide a particular
value. The valid percent is the same as the percent except that any non respondents have been
removed from the analysis.
219

Cross Tabulations
Cross tabulations involves constructing a table so that one can see how respondents with
a given value on one variable responded to one or more other variables. Constructing a two-way
cross tabulation involves the following steps:
On the horizontal axis list the value or name for each category of the first variable.
On the vertical axis list the value or name for each category of the second variable.
For each respondent, locate the category on the horizontal axis that corresponds to his or
her response.
Then find the value on the vertical axis that corresponds to his or her response on the
second variable.
Record a 1 in the cell where the two values intersect.
Count the 1s in each cell.
Suppose we are interested in examining the relationships between the choice of money or
product and the brand name of the beverage sample tasted by the respondent. First we would
place the two categories for choice on the horizontal axis and the two brand names on the
vertical axis, to form four cells of a table. The table and the assignment of respondents 1, 4,21,
22, 41, 61 and 67 are shown.
CROSS TABULATION OF SELECTED INDIVIDUAL RESPONDENTS
BRAND
TREATMENT
Money (1)
Product (2)
Total
Bravo
1 22
4 21
Delight
42 67
41 67
Total
220
Summarizing Statistics
There are two major kinds of summarizing statistics. The first provides measures of the
midpoint of the distribution and is known as measures of central tendency. The second gives an
indication of the amount of variation in the data comprising the distribution and is known as
measures of dispersion.
Measures of Central Tendency

The three primary measures of central tendency are the arithmetic mean, the median and
the mode.
The arithmetic mean should be computed only from intervally or ratio scaled data. It is
obtained by adding all the observations and dividing the sum by the number of observations.
When the exact value of each observation is known, this is a simple process. Often, however,
arithmetic means must be calculated from absolute frequency distributions. In these cases, the
midpoint of each category is multiplied by the number of observations in that category, the
resultant category values are summed, and the total is divided by the total number of
observations, or;
x=
where fi = the frequency of the ith class

xi = the midpoint of that class
h = the number of classes
n = the total number of observations
221

The median, which required only ordinal data, is obtained by finding the value below
which 50 percent of the observations lie. If cumulative frequencies were calculated for the data
array, it would be the value for which the cumulative frequency was 50 percent.
The mode, requiring only nominal data, is found by determining the value that appears
most frequently. In a relative frequency distribution, the mode is the class that has the highest
frequency. Data can have more than one mode if two or more values tie for most frequent
appearance.
Measures of Dispersion
The standard deviation, variance and range are common measures of how spread out
the data are. The smaller these three values are, the more compact are the data.
The formula for the standard deviation of a sample calculated from an array of the sample
data is:
S=
S = Sample standard deviation

Xi= the value of the i observation
th
x = the sample mean, and

n = the sample size
222
The variance, the square of the standard deviation, is found by the same formula with the square
root sign removed. The range is equal to the maximum minus minimum value in the data array.
223
CASES
224

CASE NO. 17
BATTERY USERSHIP SURVEY
Sometime back a research organization conducted a survey in India among the users of batteries.
The objective of this survey was to find out their attitudes and opinion towards batteries. The
organization designed a questionnaire to seek information from the head of the household or the
chief wage earner of the family.
Below are given selected questions from the aforesaid questionnaire. These questions
have been given the same numbers here as contained in the questionnaire. Prepare a coding
scheme for the selected questions.
Selected parts of the questionnaire
1. b. Age of Respondent (Years)
16-24
25-34
35-44
45 and above
2. Average Monthly Family Income
Up to Rs
Rs
500
501 1000
Rs 1001 2000
Over Rs 2000
3. Which of the following battery operated equipment do you have in your family?
Torch
Transistor
Others (Specify)
225

1. A few statements on the aspects of Battery X are given below. Can you tell us whether you
agree or disagree with the statements?
Battery X is ideal for use in transistor.
Battery is an ideal torch battery.
Battery X is a leak proof battery.
Battery X is a good looking battery.
10. b. Did you feel certain disadvantages in using Battery X? If yes, what are
they? Any other? Probe.
11. Will you recommend Battery X to your friends for use in equipment?
I will certainly recommend
I may consider recommending
I will not recommend
No opinion.
226

CASE NO. 18
TABULATION AND ANALYSIS OF DATA
Assume that the data sought for have been collected and these are to be properly analyzed.
Design the dummy tables based on the questionnaire and explain how you would use
each of these tables.
Give a detailed plan of analysis of data indicating whether you will undertake uni-variate,
bi-variate or multivariate analysis. Be sure that you make the maximum use of the data. In case
of bi-variate and multivariate analysis (if you decide to use these analysis), specify the
relationships that will be important in this study.
The Quick Airlines Corporation

Passenger Survey
1. Name
: Mr/Mrs/Miss
2. Address:
3. Age
:
18-20 Yrs
20-30 Yrs
30-40 Yrs
40-50 Yrs
50-60 Yrs
60 Yrs or above (
227

4. What are your educational qualifications?
Below High School
High School/Higher Secondary
Graduation
Post-graduation
5. Where did you board this flight?
6. Where will you get off? ..
7. Flight Number .
8. Date .
9. What is the purpose of your taking this flight?
( ) Government
( ) Business
( ) Personal Work
( ) Vacation
( ) Any other (please specify)
10. How many airline trips have you made during the past one year?
None before
( )
13
( )
46
( )
79
( )
10 or above
( )
228

CASE NO. 19
ANALYSIS OF DATA
A company is considering the introduction of a new scheme of health insurance for the
benefit of its employees. However, before taking any final decision, it would like to know the
reaction of its employees. However, before taking any final decision, it would like to know the
reaction of its employees towards this scheme.
Since it has a large number of employees, the company has decided to collect some
information from 50 employees is shown in Exhibit 1. In the table:
1. Respondents are numbered 1 to 50.
2. Col. 2 indicates the new scheme. Respondents were asked to show their preference or
dislike on a five point scale. The values denote the preferences as follows:
Extremely interested
Interested
Indifferent
Not interested
Not at all interested
Sex M: Male; F: Female

3. Marital Status M: Married; S: Single
4. Age in years
5. Education: Four categories:
Below higher secondary
Higher secondary
Graduation
Post-graduation
229

6. Present arrangement. Four categories
Private doctor-own expenses
Government or Corporation Hospitals
Partial reimbursement from an outside agency
Full reimbursement from an outside agency
7. Monthly Income: Four categories

Less than Rs 1000
Rs 1000 Rs 2999
Rs 3000 Rs 4999
Rs 5000
You are now required to analyze the data.
QUESTIONS
1. Divide the sample into two groups: (a) those showing interest in the new scheme and (b)
those who are either indifferent or not interested in the new scheme. Cross-tabulate these
two groups along with education
Higher education graduation and above and
Lower education below graduation.
What is your finding? Is the association statistically significant at the 0.05 level?
2. Perform similar exercise to ascertain association between preference for new scheme and
income level of respondents, taking the first income level in the poor class; second and
third levels in the middle class; and the fourth one in the upper class.
3. If a third category with two groups older respondents (40 years and above) and younger
respondents (below 40 years) is added to the cross-tabulation arrived at in Q.1 above,
does the association undergo any change?
230

CASE NO. 20
REPORT ON ADVERTISING EFFICIENCY
Vinay Hardikar of the Times Research Foundation, Pune, had done a study on
Advertising Efficacy Print versus TV in 1990 91. The study was based on a survey of
consumers in Pune. It was conducted with the help of questionnaire interviews on a random
sample of 300 consumers stratified on the basis of their monthly income as follows:
a. Rs 1500 and above
b. Rs 1501 to Rs 3000
c. Rs 3001 to Rs 5000 and
d. Rs 5001 and above.
The questionnaire was divided into five parts and had 57 questions in all. The study
resulted into as many as 72 statistical tables. Some of these tables are given in Exhibit 1.
QUESTIONS
You are asked to analyze the following tables. Based on your analysis, prepare a short
report, highlighting the major findings. Use suitable graphic devices to make your report
easily understandable and interesting.
231
Exhibit 1
Table 1: Sex of the Respondents
Sex
Frequency %
Male
Female
Total
254
84.67
46
15.33
300
100.00
Table 2: Income of the Respondents

Income
Frequency
Up to Rs 1500
120
40.00
Rs 1500 to Rs 3000
107
35.67
Rs 3000 to Rs 5000
34
11.33
Rs 5000 and above
1.33
N.R.
35
11.67
Total
300
100.00
232
Table 3: Occupation
Occupation
Frequency
Private Service
98
32.67
Govt. Service
44
14.67
Business
93
31.00
Professional
2.67
Self Employed
15
5.00
Student
11
3.67
Housewife
1.67
Retired
2.33
Agriculture
12
4.00
N.R.
2.32
Total
300
100.00
Table 4: Educational Level

Education
Frequency %
Post graduate and above
36
12.00
Matriculation to graduation/diploma
109
36.33
Up to matriculation
143
47.67
N.R.
12
4.00
Total
300
100.00
233

Table 5: Like to Spend on
Item
Food/Clothing/Entertainment
Frequency
252
84.00
Real Estate/Assets
24
8.00
Gold/Stones/Jewels
27
9.00
Vehicles/Appliances
18
6.00
1.67
32
10.67
0.67
300
100.00
VCP/VCR/A.C./Sound system
Travel
N.R.
Total
Table 6: Method of Purchase of Possessions

Method
Frequency
1.67
After seeing Print ads
17
5.67
After seeing TV ads
17
5.67
After seeing other products
57
19.00
After discussing with family
198
66.00
After asking shopkeepers advice
27
9.00
Booked first and delivered later
0.33
Just went out and bought
2.00
N.R.
1.67
300
100.00
After seeing ads
Total
234

Table 7: Reasons for Purchase of Products
Product
Need
Social Occasions
Festival Days
Money to Buy
N.R
Freq.
Freq.
Freq.
Freq.
Product 1
262
87.33
27
1.00
2.00
1.67
0.00
Product 2
293
97.67
5.00
0.67
0.00
0.33
Product 3
201
67.00
15
1.33
49 16.33
1.66
Product 4
214
71.33
9.00
30 10.00
4
1.33
% Freq.
35 11.67
44 14.67
Table 8: Buying Decisions Based on Ads

How Frequently Frequency
Sometimes
75
25.00
Rarely
150
50.00
Never
62
20.67
N.R.
1.66
300
100.00
Total
Table 9: Last Buy Because of Ads

Period
Frequency
1 3 months ago
63
21.00
3 6 months ago
22
7.33
118
39.33
Never
88
28.67
N.R.
11
3.67
Total
300
100.00
6 months 1 year ago
235

Table 10: Buying Decision Based on a Particular Ad
Ad
Frequency
Print
77
25.67
TV
88
29.33
Both
48
16.00
N.R.
87
29.00
Total
300
100.00
Table 11: Recent Change of Brand

Response Frequently %
Yes
104
34.67
No
196
65.33
Total
300 100.00
Table 12: Reason for Change of Brand

Reason
Frequency %
Ads
41 13.67
Experience
37 12.33
Price
2.67
N.R.
18
6.00
Total
104 34.67
236
MODULE 9
(MARKETING
RESEARCH REPORTS)
237

MARKETING RESEARCH REPORTS
Organization of the Report
There is no standard format for all occasions. But a generalized format is given below
which according to the study can be changed.
1. Title page
2. Executive summary
3. Table of contents
4. Introduction
5. Methodology & Limitations
6. Findings
7. Recommendations
8. Bibliography
9. Appendixes
Title page: should identify the topic, for which the report is prepared, the date of the report and
the researcher / s.
Executive Summary: is the most important part of the research report. The objectives, findings,
conclusions and recommendations must be presented in brief. Most of the executives go through
only this part of the report and if required will go into details.
Table of Contents: should contain page numbers of major sections and sub-divisions within the
sections and a list of all appendixes. If numerous tables or charts are used, they should also be
listed on a separate page immediately following the table of contents.
238

Introduction: should contain background material, a clear statement of the research objectives
and on overview of the organization of the report. The first part of the introduction should
contain brief description of management problem and factors that influence it. The next section
should have objectives which will involve management problem and its translation into a
research problem.
Methodology & Limitations: this should not be the major section of the report.
The
methodology used to meet the objectives of the research project, technical details should be
minimized. Where necessary such details should be placed in appendixes. The limitations of the
study should also be pointed out.
Findings: are answers to research objectives. The major portion of the report should be devoted
to the findings which should be organized around the objectives of the study. The findings
should not consist of an endless series of statistical tables.
Instead they should describe in
meaningful terms, what the research found. Summary tables and visual aids (charts, graphs
etc...) should be used to clarify the discussion. Detailed findings are presented in appendixes.
Recommendations: this section should make one or more specific recommendations on each
aspect of the management problem the research was designed to assist in solving.
These
recommendations must be explicitly related to the research findings.

Bibliography: it should contain the sources from which information was collected like books,
magazines, news papers, websites, retailers etc.
Appendixes: those things that will appeal to only a few readers or that they may be needed only
for occasional references should be confined to an appendix.
Details of the sampling plan, detailed statistical tables, copies of questionnaires and
similar things generally will be in appendix.
239

Preparing the Written Research Report
Several facts need to be kept in mind:
Managers are extremely busy
They are less interested in the technical aspects of a research problem
They are not well versed in research techniques and terminology
They prefer interesting reports over dull.
Along with these facts certain other factors should also be looked at. They are given
below:
1. Focus on the audience
2. Focus on the objective of the study
3. Minimize the reporting of the technical aspects of the project (these can be in the
appendixes)
4. Use terminology that matches the vocabulary of the readers
5. Avoid errors in grammar and spelling
6. Develop an interesting writing style
o Key points must stand out
o Break up the text of the report
o Focus on the audience
7. Use visual aids whenever practical
8. Rounding of numbers
240
CASES
241

CASE No. 21
CHILDRENS MAGAZINE
You are working for a consulting organization providing consultancy services in the areas of
marketing and sales. You had been asked to lead the team assigned to conduct a survey in
selected schools regarding the preferences of teenagers regarding the contents of a new
childrens magazine to be launched by a publishing company. The following data has been
collected:
50 schools (10 each in 5 metro cities Delhi, Calcutta, Bombay, Chennai and Bangalore)
were covered under the survey.
8000 children were given pre-designed questionnaires for the survey.
The students were asked to give 5 preferred areas that should be covered by the magazine
and the preferences as reflected by the survey are: Sports: 80%, Current affairs: 65%,
Nature and Wildlife: 60%, Science: 70%, Cartoons: 80%, Quiz: 60%, Stories and Poems:
75%, Government and Politics: 25%, Hobbies: 45%, Academics: 30%, Career
counseling: 48%, Rest of the areas scored less than 10%.
The most preferred categories (first preference) were Stories and Poems(45%), Cartoons
(24%), Sports (16%), Current affairs (10%), and Nature and Wildlife(5%).
To the question Do you think there is a need for a new magazine? 46% said Yes,
20% and 24% said Dont know while 10% did not respond to the question.
Now you have been asked to write a report based on the above data and present it to the
client organization. You are required to work out the following:
Explain the steps you would follow to write the report.
Describe in brief the layout of your report and prepare the table of contents.
Write in brief the executive summary of the report. For making the summary more
realistic you are free to include additional data/feedback (presumably received from the
survey) that you think may be relevant and useful.
Enumerate briefly the factors you will take care of while presenting your report to the
technical team of the client organization.
242

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BUSINESS RESEARCH METHODS

Research Design & Process

Data Reduction & Data

Marketing Research Reports

BUSINESS RESEARCH METHODS

BUSINESS RESEARCH METHODS

MARKETING RESEARCH PROCESS

BUSINESS RESEARCH METHODS

THE ROLE OF MARKETING RESEARCH

4. Laws and regulation

BUSINESS RESEARCH METHODS

1. Market Potential Research

2. Market Share Research

4. Market Characteristic Research

5. Sales Analysis Research

BUSINESS RESEARCH METHODS

Product ResearchTest concept

Pricing ResearchImportance of price in brand selection

BUSINESS RESEARCH METHODS

Distribution ResearchDetermine copy of distribution

BUSINESS RESEARCH METHODS

BUSINESS RESEARCH METHODS

III. Customized services:

BUSINESS RESEARCH METHODS

Coding and data entry services:

III. Analytical services:

IV. Data analysis services:

Branded marketing research products:

BUSINESS RESEARCH METHODS

BUSINESS RESEARCH METHODS

Research design formulation

Exploratory Research Design

Conclusive Research Design

Single cross Sectional

BUSINESS RESEARCH METHODS

Sometimes, exploratory research, particularly qualitative research, is all the research

DIFFERENCES BETWEEN EXPLORATORY AND CONCLUSIVE RESEARCH

To provide insight and understanding.

Information needed is defined only loosely.

Research process is formal and defined.

Research process is flexible and unstructured.

Information is needed is clearly

Sample is small and non-representative.

Analysis of primary data is qualitative.

Sample is large and representative.

Generally followed by further exploratory or

Findings used as input into decision

BUSINESS RESEARCH METHODS

BUSINESS RESEARCH METHODS

Discovery of ideas and Describe market

Marketed by the prior

Often the front end of

total research design.

Preplanned and structured

To describe the characteristics of relevant groups, such as consumers, salespeople, or

To estimate the percentage of units in specified population exhibiting a certain behavior;

BUSINESS RESEARCH METHODS

To determine the perceptions of product characteristics. For example, how do

Product usage studies, which describe consumption patterns.

BUSINESS RESEARCH METHODS

CROSS SECTIONAL DESIGNS

BUSINESS RESEARCH METHODS

RELATIVE ADVANTAGES & DISADVANTAGES OF LONGITUDINAL AND CROSS