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Importance of MR

Marketing management is all about making decisions relating to 4 Ps,

STP and issues like market entry

For any decision-making, information is vital

MR provides managers this info

Marketing Research

The Nature of Marketing Research

Marketing research is one of the principal tools for answering

Without this, managers will go by hunches

Does this happen now?

In God we trust, for the rest we need data

MR Defined

So what is MR?

questions because it:

Links the consumer, customer, and public to the market through

information used to identify and define marketing

Generates, refines, and evaluates marketing actions

Monitors marketing performance

Underlines the understanding of marketing as a process

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MR Defined

Marketing Research Defined

The systematic and objective process of generating information for aid in

making marketing decisions

Note that it is systematic and objective

It is thus different from Marketing Intelligence

What is this?

MR Process

MR Process

Defining the problem

Developing an approach to the problem

Research design

Data Collection

Data analysis

Report Presentation

Feedback and Continue

The Scientific Method

Scientific Method

The way researchers go about using knowledge and evidence to reach

objective conclusions about the real world.

The analysis and interpretation of empirical evidence (facts from

observation or experimentation) to confirm or disprove prior conceptions

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A Summary of the Scientific Method

Applied and Basic Research

Applied Research

Research conducted to address a specific marketing decision for a specific firm or

organization.

Basic Research

Research conducted without a specific decision in mind that usually does not
address the needs of a specific organization.

Marketing Research Examples

Attempts to expand the limits of marketing knowledge in general

Is not aimed at solving a pragmatic problem

Classification of MR

Applied Research:

Basic Research:

Marketing Research

Should McDonalds add Italian pasta dinners to its menu?

Do consumers experience cognitive dissonance in low-involvement

situations?

Problem Identification
Research
Market Potential Res.
Market Share Res.
Market Characteristics Res.
Sales Analysis Res.
Forecasting Res.
Business Trends Res.

Problem Solving Research

Segmentation Res.
Product Res.
Promotion Res.
Pricing Res.
Distribution Res.

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Defining Problem

Defining Problem

Declining market share

Declining market share

Decline in profits

Decline in profits

Symptoms

Causes

Outdated product
New competition
Inappropriate pricing

Inability to gain channel

participation

How to Identify Management Decision

Problem? . . .

Inability to gain channel

participation

Ineffective promotions
Escalation of distribution costs
Lack of product differentiation
Inferior product image

Defining Problem Results in Clear-Cut

Research Objectives

Similar to history taking and analyzing the situation

Symptom Detection

Analysis of the Situation

Exploratory
Research
(Optional)

Problem Definition

Statement of Research Objectives

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Difference? . . .

Difference . . . .
MDP

Management Decision Problem

Vs.

Asks what the decision maker needs

MRP

to do

Marketing Research Problem

Example

Action oriented

Information oriented

Focuses on symptoms

Focuses on the underlying causes

To determine consumer preferences &

Should a new product be

MRP

MDP

introduced?

Should the advertising campaign be

Should the price of a brand be

increased?

Should a new product be

MRP
purchase intentions for the new product

introduced?

changed?

and how it should be obtained

Example
MDP

Asks what information is needed

Should the advertising campaign be

changed?

To determine the effectiveness of the

current advertising campaign

To determine the price elasticity of demand

Should the price of a brand be

& the impact on sales & profit at various

increased?

levels of price changes

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Proper Definition of the Research Problem

An Example

Department Store Project

Management Decision Problem

Marketing Research Problem

Broad Statement

What should be done to improve the patronage of Shoppers Stop?

Specific Components

Department Store Project

Marketing Research Problem

Department Store Project

Specific Research Questions

Determine the relative strengths and weaknesses of Shoppers Stop vis--

What criteria do households use when selecting store?

vis other major competitors with respect to factors that influence store

How do households evaluate Shoppers Stop and competing stores in

patronage

terms of the choice criteria identified in question 1?

Which stores are patronized when shopping for specific product

categories?

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Department Store Project

Specific Research Questions

What is the market share of Shoppers Stop and its competitors for specific

Components of an Approach

Objective/Theoretical Foundations

Analytical Model

Research Questions

Hypotheses

Specification of the Information Needed

product categories?

What is the demographic and psychographic profile of the customers of Shoppers

Stop? Does it differ from the profile of customers of competing stores?

Can store patronage and preference be explained in terms of store evaluations

and customer characteristics?

Role of Theory

Conceptualizing and identifying key variables

Operationalizing key variables

Useful in defining population

Selecting a research design

Guide selection of data analysis strategy & interpretation of results

Development of Research Questions and

Hypotheses
Components of the
Marketing Research Problem
Objective/
Theoretical
Framework

Research Questions

Analytical
Model
Hypotheses

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Research Questions and Hypotheses

Research questions (RQs) are refined statements of the specific

Department Store Project

RQ: Do the customers of Shoppers Stop exhibit store loyalty?

H1: Customers who are store loyal are less knowledgeable about

components of the problem.

the shopping environment.

A hypothesis (H) is an unproven statement or proposition about a factor

or phenomenon that is of interest to the researcher. Often, a

hypothesis is a possible answer to the research question

Research Design

Intro to Research Design

Types of Research Designs

Sources of Error

Types of Research

Summary

H2: Store-loyal customers are more risk-averse than are non-loyal

customers

Intro to Research Design

So what is research design?

Pros & Cons

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Research Design

Research Design

Master plan specifying the methods & procedures for collecting &

Crucial principal of Research Design:

analyzing the needed info

A broad rubric, as it were

What procedures to follow? is answered here

It is very critical

The design of the investigation should stem from the problem

Uncertainty influences the type of research

Research Design

Types of Research Design by Objectives

Descriptive

Correlational

Quasi-experimental

Experimental

Increased
Control
with
Design

Exploratory

Conclusive

Descriptive

Causal or Experimental

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Types of Design

Types of Design

There are 2 types: exploratory and conclusive

Exploratory is to provide further insights into the problem so as to enhance

comprehension

Often used to generate hypotheses

E.g. Meeting industry experts due to falling sales

A few focus groups

The findings are not conclusive used as input in further research

The contours of the MR problem better shaped now

Even when Indian market is slowing down, market for Luxury is increasing? Why?

Types of Design

Descriptive gives lots of information on market characteristics

Causal means a cause and effect relationship

Conclusive research

This is it; hence called conclusive

The objective is to test hypotheses

And help in decision-making

There are two types of conclusive research

Descriptive and Causal

What are they?

Types of Design

Examples would be?

Thus, causality is involved meaning what?

Examples?

Both can be cross-sectional or longitudinal meaning what?

Note: The degree of uncertainty of the research problem determines the
research methodology.

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Research Design

Research Design

EXPLORATORY - DESCRIPTIVE - CAUSAL

EXPLORATORY - DESCRIPTIVE - CAUSAL

Manufacturer of Surgical Masks

Motivation for Research - Loss of Sales and Market Share

EXPLORATORY
RESEARCH

DESCRIPTIVE
RESEARCH

Uncover Why Losing Sales

Prioritize the Problems

Managerial Objective - Increase Company Sales and Profits

1. Poor Fit of Mask

1. Poor Fit of Mask - 45%

Research Objective - Initially ??? (Why Losing Sales and Market Share)

2. Too Costly

2. Too Costly - 12%

3. Itchs or Irritates the skin

3. Itchs or Irritates
the skin - 1%
4. Fogs Glasses - 6%

Types of Research Design - Data

Qualitative

Quantitative

CAUSAL
RESEARCH
Assess if Change in
Marketing Mix will
Accomplish Managerial
Objective
R & D Develops a new
dual material molded
mask
Field Experiment
Offer the Mask to 3 Dealers
and Observe Sales for
3 Months

Qualitative Research

Consists of depth interviews, focus groups, metaphor analysis,

collage research, and projective techniques.

Administered by highly trained interviewer-analysts.

Findings tend to be subjective.

Small sample sizes

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Quantitative Research

Qualitative vs. Quantitative

Both are complementary, not mutually exclusive

Both have their uses

Research methods include experiments, survey techniques, and

Typically, quali first and then quant

observation.

Quali generally more exploratory and quant more conclusive

Descriptive in nature.

Enables marketers to predict consumer behavior.

Findings are descriptive, empirical and generalizable

Qualitative Research Techniques

Focus Group studies

In-depth Interviews

Observation Studies

Ethnographic Research

Projective Techniques

Content Analysis

Experience Maps

Participants Diaries

Social Networking Analysis, etc. .

Should not compete

New shape of Pril bar

Bad odour a problem while washing; Pril added this benefit thru findings from both types

Must use in tandem

Quantitative Techniques

Survey method

Experimental Design

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Experimental Design

An experiment is a research method where certain variables are

manipulated this in turn causes a change in the focal variable of
interest

Thus, change in DV is caused by change in independent variables

What does causality imply?

Change in the focal variable of interest is attributed to varying levels of the

manipulated variables

Focal variable of interest is called Dependent variable

Manipulated variables are called independent variables or treatments

Experimental Design

Experimental Design

When can we say something causes something else? Under what

conditions?

Does advertising cause sales or vice versa?

A Classification of Experimental Design

Experimental Designs

Causality is there when

X1 covaries with Y Concomitant variation

X1 precedes Y

Rule out the effect of x2, x3 ---- xn on Y

Pre-experimental

True
Experimental

Quasi
Experimental

Statistical

One-Shot Case
Study

Pretest-Posttest
Control Group

Time Series

Randomized
Blocks

One Group
Pretest-Posttest

Posttest: Only
Control Group

Multiple Time
Series

Latin Square

Static Group

Solomon FourGroup

Factorial
Design

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Pros and Cons of Experiments

There are several pros with experiments

There is a lot of control internal validity is very high

We can weed out the effects of various other nuisance variables

We can say with a fair amount of certainty that X causes Y

Pros and Cons of Experiments

Intro to Surveys

Errors in survey research

Sampling Issues

Sampling methods

Scaling & Measurement

In survey, what is the case?

Thus, one should do both ideally

Personally, am an experimentalist

E.g. for conjoint analysis for Marriott Hotels

Generalizability to the universe may be hard

Plus, the realism may be lost

Often, is the only one that can be used

Survey Research and Related Issues

Plus it is often cheaper to conduct as well, relative to survey

The biggest con of course is that the external validity is less

Called ecological validity

Believe that the above is overblown

Of course, creativity needs to be there

Definition

Survey is a method of primary data collection based on

communication with a representative sample of individuals (called
respondents)

Different formats of scales

Questionnaire Design

Types of Surveys

Summary

Major problem is survey error

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Sampling

Errors in

The first step is sampling

Census often hard though possible sometimes e.g.?

Survey
Research

Sampling

Sampling

Define the Population

Essentially, two types - Probability and Non-probability sampling

Select Sampling Technique(s)

In probability sampling, each element has a fixed chance of getting

selected

Determine the Sampling Frame

Not so in non-probability sampling where researchers judgment and bias

involved

Determine the Sample Size

Execute the Sampling Process

What are some non-probability and probability sampling techniques that

you are aware of?

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Classification of Sampling Techniques

Sampling Techniques

Non-probability
Sampling Techniques

Convenience
Sampling

Judgmental
Sampling

Simple Random
Sampling

Systematic
Sampling

Probability
Sampling Techniques

Quota
Sampling

Stratified
Sampling

Snowball
Sampling

Cluster
Sampling

Measurement - means assigning numbers or other symbols to

characteristics of objects according to certain pre-specified rules

When to use which type?

Major disadvantage of non-probability sampling is not representative

Similarly for probability, it requires sampling frame

When stratified? When judgmental?

Is there a best type?

Other Sampling
Techniques

Measurement and Scaling

When to Use Which

Measurement and Scaling

Scaling involves creating a continuum upon which measured

objects are located

One-to-one correspondence between the numbers and the characteristics

being measured.

The rules for assigning numbers should be standardized and applied

uniformly.

Rules must not change over objects or time.

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Scale
Nominal

Measurement and Scaling

What are the different types of scales that are there any idea?
Primary

Ordinal

Numbers
Assigned
to Runners

Rank Order
of Winners

Scales of
Measurement

Finish
7

Interval

Ratio

Performance
Rating on a
0 to 10 Scale
Time to
Finish, in
Seconds

Finish
Third
place

Second
place

First
place

8.2

9.1

9.6

15.2

14.1

13.4

Classification of Scaling Techniques

Primary Scales of Measurement

Scaling Techniques
Scale
Nominal

Ordinal

Interval
Ratio

Basic
Characteristics
Numbers identify
& classify objects

Common
Examples
Social Security
nos., numbering
of football players
Nos. indicate the Quality rankings,
relative positions rankings of teams
of objects but not in a tournament
the magnitude of
differences
between them
Differences
Temperature
between objects (Fahrenheit)
Zero point is fixed, Length, weight
ratios of scale
values can be
compared

Marketing
Permissible Statistics
Examples
Descriptive
Inferential
Brand nos., store Percentages,
Chi-square,
types
mode
binomial test
Preference
Percentile,
rankings, market median
position, social
class

Rank-order
correlation,
Friedman
ANOVA

Attitudes,
opinions, index
Age, sales,
income, costs

Productmoment
Coefficient of
variation

Range, mean,
standard
Geometric
mean, harmonic
mean

Noncomparative
Scales

Comparative
Scales

Paired
Comparison

Rank
Order

Constant
Sum

Q-Sort and
Other
Procedures

Likert

Continuous
Itemized
Rating Scales Rating Scales

Semantic
Differential

Stapel

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Questionnaire Design

The questionnaire is at the heart of the data collection effort in survey

Questionnaire Design

So what are some good practices in questionnaire design?

research

Hence, highly crucial

Getting responses is hard enough response rate matters; what is this? What
should it be?

Non-response bias?

Hence, one should never make it hard for ourselves

Bad scaling and questionnaires will make this poorer still

Questionnaire Design

Questionnaire Design

Use questions that test our hypotheses or serve our objectives

Use multiple-item measures meaning? Why? How many items?

No other question is allowed; it will lengthen questionnaire

Why CAT, XAT, JMET, MAT, GMAT----?

When is a really long questionnaire acceptable?

Why is test cricket better than 20-20?

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Questionnaire Design

Do not however sacrifice validity to parsimony meaning?

Use pre-determined scales tested for reliability and validity

Questionnaire Design

Difference between the two?

Questionnaire Design

Questionnaire Design

Reliability is basically consistency

Avoid double-barreled questions meaning and example?

However, reliability is not sufficient for validity, though necessary

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

Such a question is called a double-barreled question, because two or more questions are

One can be consistently wrong

One can think of the dart example

Thus, validity is the extent to which the scale measurement is reflective of the true

combined into one.

phenomenon under study

Pre-existing scales have been tested for both

As a client, you need to ask these sorts of questions

Do not take things lying down

(Incorrect)

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

Do you think Coca-Cola is a refreshing soft drink? (Correct)

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Questionnaire Design

Questionnaire Design

A leading question is one that clues the respondent to what the answer should be, as in the
following:

An alternative that is not explicitly expressed in the

options is an implicit alternative.

Do you think that patriotic Americans should buy imported automobiles when that would put American labor out of
work?

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

_____ Yes

(Incorrect)

_____ No
_____ Don't know

(Incorrect)

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

rather drive?
(Correct)

Do you think that Americans should buy imported automobiles?

_____ Yes
_____ No
_____ Don't know

Questionnaire Design

Order of questioning is important

Qualification questions

Main information questions

General questions

Specific questions

(Correct)

Sample Size

What is the ideal sample size for a study?

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Sample Sizes Used in Marketing Research Studies

Type of Study

Minimum Size Typical Range

Problem identification research

(e.g. market potential)
Problem-solving research (e.g.
pricing)

500

1,000-2,500

200

300-500

Product tests

200

300-500

Test marketing studies

200

300-500

TV, radio, or print advertising (per

commercial or ad tested)
Test-market audits

150

200-300

10 stores

10-20 stores

Focus groups

2 groups

4-12 groups

Types of Surveys

Classification of Survey Methods

So what are the different types of surveys that you know of?

Criteria for Evaluating Survey Methods

Survey
Methods

Response Rate

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

Telephone

Personal

Mail

Electronic

Perceived Anonymity

In-Home

Mall
Intercept

Computer-Assisted
Personal
Interviewing

E-mail

Social Desirability/Sensitive Information

Traditional
Telephone

Computer-Assisted
Telephone
Interviewing

Mail
Interview

Mail
Panel

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

Internet

Social desirability is the tendency of the respondents to give answers that are socially
acceptable, whether or not they are true

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Criteria for Evaluating Survey Methods

Potential for Interviewer Bias

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

Cost

Sampling, measurement & questionnaire design for survey

methods is highly critical

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

Speed

Summary

Can make or break your MR project

As a MR person, be careful

As a client, ask for such info as well

The total cost of administering the survey and collecting the data

Prepare Preliminary Plan of Data Analysis

Data Preparation & Data Analysis

Check Questionnaire
Edit

Data
Preparation

Code
Transcribe
Clean Data

Process

Statistically Adjust the Data

Select Data Analysis Strategy

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Data Preparation Process

Code the responses

Data Preparation Process

Prepare code book

What will you do with missing values?

Data checking

Variable re-specification

Aggregate measure

Dummy variables, etc. .

Check correlation matrix

A Classification of Univariate Techniques

Scale transformation: standardization

A Classification of Multivariate Techniques

Univariate Techniques

Two or More
Samples

Independent
* Two- Group
test
* Z test
* One-Way
ANOVA

Dependence
Technique

Non-numeric Data

Metric Data

* t test
* Z test

Multivariate Techniques

One Sample
* Frequency
* Chi-Square
* K-S
* Runs
* Binomial

Two or More
Samples

Related
* Paired
t test

Independent
* Chi-Square
* Mann-Whitney
* Median
* K-S
* K-W ANOVA

Related
* Sign
* Wilcoxon
* McNemar
* Chi-Square

One Dependent
Variable
* CrossTabulation
* Analysis of
Variance and
Covariance
* Multiple
Regression
* Conjoint
Analysis

More Than One

Dependent
Variable
* Multivariate
Analysis of
Variance and
Covariance
* Canonical
Correlation
* Multiple
Discriminant
Analysis

Interdependence
Technique
Variable
Interdependence
* Factor
Analysis

Interobject
Similarity
* Cluster Analysis
* Multidimensional
Scaling

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A Broad Classification of Hypothesis Tests

A Classification of Hypothesis Testing

Procedures for Examining Differences
Hypothesis Tests

Hypothesis Tests
Non-parametric Tests
(Nonmetric Tests)

Parametric Tests
(Metric Tests)
Tests of
Differences

Tests of
Association

One Sample
* t test
* Z test

Distributions

Means

Proportions

Median/
Rankings

Two or More
Samples

Independent
Samples
* Two-Group t
test
* Z test

Paired
Samples
* Paired
t test

One Sample
* Chi-Square *
K-S
* Runs
* Binomial

Two or More
Samples

Independent
Samples
* Chi-Square
* Mann-Whitney
* Median
* K-S

Paired
Samples
* Sign
* Wilcoxon
* McNemar
* Chi-Square

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