MARKETING RESEARCH

GROUP NO- 6 Panchatapa Das

Poonam Yadav

Sandeep Venkata

Vighneshwaran

Vishnu Mahendran

CONTENTS

INTRODUCTION

• Means the existence of problem and its systematic processing, analysis and to find solutions by using an objective and logical approach.

• It is also a systematic design, collection , analysis and reporting of the findings and solutions for the marketing related problems of a company.

RESEARCH DESIGN

“A research design is the specification of methods and procedures for acquiring the information needed to structure or to solve problem. It is the overall operational pattern or framework of the project that stipulates what information is to be collected from which sources and by what procedures.”

Green & Tull

Types of research design

Quantitative Research is used to quantify the problem by way of generating numerical data or data that can be transformed into useable statistics.

It is used to quantify attitudes, opinions, behaviors, and other defined variables – and generalize results from a larger sample population.

Quantitative Research uses measurable data to formulate facts and uncover patterns in research.

Quantitative data collection methods are much more structured than Qualitative data collection methods.

Quantitative data collection methods include various forms of surveys – online surveys, paper surveys, face-to-face interviews, telephone interviews,and systematic observations.

Qualitative Research is used to gain an understanding of underlying reasons, opinions, and motivations.

It provides insights into the problem or helps to develop ideas or hypotheses for potential quantitative research.

Qualitative Research is also used to uncover trends in thought and opinions, and dive deeper into the problem.

Qualitative data collection methods vary using unstructured or semi-structured techniques.

Some common methods include focus groups (group discussions), individual interviews, and participation/observations. The sample size is typically small in compare to quantitative research.

Research designs

Exploratory research designs

Conclusive research designs

Descriptive research

Cross sectional design

Longitudinal design

Causal research designs

• Conducted when the researcher does not know much about the problem and needs additional information or desires new or more recent information .

• Product or brand is new or researcher is studying it for the first time.

• Major applications of exploratory research is to generate hypothesis for the further studies.

•A variety of methods are available to conduct exploratory research

Expert opinions/ individuals with ideas Case Analysis Focus Groups Projective Techniques

• Conclusive research is meant to provide information that is useful in reaching conclusions or decision making.

• The research objectives are accurately defined and so are information needs.

• It relies on both secondary data and primary data.• The purpose of conclusive research is to provide a

reliable or representative picture of the population through the use of a valid research instrument.

• It is classified into descriptive and casual research design.

The research objective in this type of research are generally describing the characteristics of consumer segments.

Descriptive studies can portray buyer perceptions of the brands.

Formal and well structured .Descriptive research design can use one or

more of the following sources of data1.Interrogation of respondent2.Secondary data3.SimulationIt is further classified into cross – sectional and

longitudinal research design.

This generally takes the form of sample of respondents who are studied over a period of time –from a few months to a few years.

It is done through a panel.A panel is sample of respondents chosen

from the target population for the study.This sample could be of

consumers ,retailers or of any other type.One of the advantage of panel is that if a quick check on something is needed , sample selection time can be saved by approaching panel members. disadvantage may be Panels suffer from a selection bias

This is most commonly used in marketing research.

It involves the collection of information from any given sample of population elements only once.

It is important because it provides a quick snapshot of what's going on with the variables of interest for our research problem.

The disadvantage could be that a cross sectional study tends to rely too much on numbers, can be affected by poor quality of interviewers, supervisors and tends to view the population in terms of too many generalizations.

Points of difference Exploratory Conclusive

objective To provide insights and understanding .

To test specific hypothesis and examine relationships.

characteristics 1. Information needed is defined only loosely.

2. Research process is flexible and unstructured.

3. Sample is small and nonrepresentative.

1. Clearly defined2. Formal and

structured.3. Sample is large and

representative.

Findings /results Tentative conclusive

outcome Generally followed by further exploratory or conclusive research.

Findings used as input into decision making.

Causal design is the study of cause and effect relationships between two or more variables.

The fundamental tool used to identify the causal relationship is the experiment.

The objective of an experiment is to measure the effect of explanatory variables or independent variables on a dependent variables while controlling other variables.

Points of difference

Exploratory Descriptive Causal

Objective Discovery of ideas and insights.

Describe market characteristics or functions.

Determine cause and effect relationship.

Characteristics Flexible , versatile.

Marked by the prior formulation of specific hypothesis.

Manipulation of one or more independent variables.

Methods Expert surveys , pilot surveys, secondary data

Secondary data , surveys , panels, observational and other data .

Experiments .

Scaling methods

DEFINITION

Scaling is the process of measuring or ordering entities with respect to quantitative attributes or traits. For example, a scaling technique might involve estimating individuals' levels of extraversion, or the perceived quality of products. Certain methods of scaling permit estimation of magnitudes on a continuum, while other methods provide only for relative ordering of the entities.

TYPES OF SCALES

Marketing research uses the 4 major types of scales:NominalOrdinalIntervalRatio

Nominal scale: A nominal scale is one in which numbers are only used as labels, and have no numerical sanctity.For example:- if we want to categorize male and female respondents, we could useA nominal scale of 1 for male and 2 for female. But 1 and 2 in this case do not represent any order or distance.

ScaleNominal Numbers

Assigned to Runners (7) (4) (8)

Ordinal scale: Ordinal scale variables are ones which have a meaningful order to them.These ranks are not interchangeable, as nominal scale labels are. This is because rank 1means it is ranked higher than rank 2. Ordinal Rank Order

of Winners (1st) (2nd) (3rd)

Interval scale: An interval scale variable can be used to compute the commonly usedStatistical measures such as the average(arithmetic mean), standard deviation, and the Pearson Correlation Coefficient.For example:- attitudes of respondents on a scale of 1 to 5, 1 to 10 can be treated as intervalScales or temperature scale.

Interval Performance Rating on a 0 to 10 Scale

(9.6) (9) (8.2)

Smiling Face Scale Instructions: Please point to the face that shows how much you like the Barbie Doll. If you do not like the Barbie Doll at all, you would point to Face 1. If you liked it very much, you would point to Face 5.

Form:

1 2 3 4 5

The various types of scales used in marketing research fall into two broad categories: comparative and non comparative.

In comparative scaling, the respondent is asked to compare one brand or product against another. In non comparative scaling respondents need only evaluate a single product or brand. Their evaluation is independent of the other product and/or brands which the marketing researcher is studying.

Scaling techniquesComparative scale Non-comparative scale

(1)Paired comparison (1)Continuous rating scale(2)Constant sum (2)Itemized rating scale(3)Rank order ->likert ->semantic differential ->stapel

COMPARATIVE SCALE

Paired comparison As its name implies, in paired comparison scaling, a

respondent is presented with two objects and asked to select one according to some criteria. The data obtained are ordinal in nature.

Table showing the shampoo preferences using paired comparison:-

DOVE SUNSILK PANTENE HEAD & SHOULDERS

CLINIC ALL CLEAR

0 0 1 1 0

0 0 1 0 1

1 0 0 1 1

0 1 0 0 0

1 1 0 1 0

2 2 1 3 2

DOVESUNSILK

PANTENE

HEAD AND SHOULDERS

CLINIC ALL CLEAR

TOTAL

Constant sum In constant sum scaling, respondents allocate a

constant sum of units, such as points, among a set of stimulus objects with respect to some criterion.

Below are the 7 attributes of toilet soap. Please allocate 100 points among the attributes. The more point an attribute receives, the more important the attribute is.

Average responses of three segments

Attribute Segment1

Segment 2 Segment 3

1.Mildness 8 2 4

2.Lather 5 13 24

3.Price 53 17 9

4.Fragrance 9 0 19

5.Packaging 7 5 9

6.Moisturizing 5 3 20

7.Cleaning power 13 60 15

SUM 100 100 100

Rank order scaling In rank order scaling, respondents are

presented with several objects simultaneously and asked to order or rank them according to some criterion.

Rank the various brands of toothpaste in order of preference. No two brands should receive the same rank.

BRAND RANK ORDER

1. Colgate ------------------

2.Close up ------------------

3.Pepsodent ------------------

4.Crest -----------------

5.Macleans -----------------

6.Plus white -----------------

7.Ultra brite -----------------

8.Gleem ----------------

NONCOMPARATIVE SCALING

Continuous Rating Scale In a continuous rating scale, also

referred as graphic rating scale, 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.

Itemized Rating Scales In an itemized rating scale, the respondents are

provided with a scale that has a number or brief description associated with each category and are asked to select one of the limited number of categories, ordered in terms of scale position, that best describes the product, brand, company or product attribute being studied.

Itemized rating scale can be classified into 3 types:- (1) Likert (2) Semantic differential (3) StapelLIKERT SCALE:-Named after its developer, Rensis Likert, the

Likert Scale is a widely used rating scale that requires the respondents to indicate a degree of agreement or disagreement with each of a series of statements about the stimulus objects.

If the price of raw materials fell firms would reduce the price of their food products

Without government regulation the firms would exploit the consumer.

Most food companies are so concerned about making profits they do not care about quality.

The food industry spends a great deal of money making sure that its manufacturing is hygienic.

Food companies should charge the same price for their products throughout the country

Strongly agree

agree

neither

disagree

Strongly disagree

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

SEMANTIC DIFFERENTIAL:- The semantic differential is a seven point rating scale with endpoints associated with bipolar labels that have semantic meaning.

STAPEL:- The Stapel scale, named after its developer, Jan Stapel, is a unipolar rating scale with 10 categories numbered from -5 to +5, without a neutral point (zero).

METHODS OF DATA COLLECTION

Primary MethodsData directly collected by a researcher is known as primary data.

The methods used for collecting primary data may be (A) survey (B) Observation. Cox has distinguished between the two forms of collecting primary data with respect to five criteria which are following.

Secondary MethodsData not originally collected for use in the research project under consideration, but rather for use by some other person or for some other project are termed secondary data.

CHARACTERISTICS

DATA COLLECTION METHOD

SURVEY OBSERVATION

1. TYPES OF INFORMATION SOUGHT

AWARENESS/ ATTITUDE

CURRENT BEHAVIOUR AND

RESULTS

2. CONTROL OVER DATA GATHERING ACTIVITIES

RELATIVELY HIGH

RELATIVELY LOW

3. DATA ACCURCY

RELATIVELY LOW RELATIVELY HIGH

4. TIME FACTOR RELATIVELY HIGH

RELATIVELY LOW

5. PERSONNEL SKILLS REQUIRED

RELATIVELY HIGH

RELATIVELY LOW

PRIMARY DATA

Primary data are those which are collected for the first time.

• It is real time data which are collected by the researcher himself.• This is the process of Collecting and making use of the data.• This Data originated by the researcher specifically to addressthe research problem.

Sources of Primary data

i. Interview Methods a)Depth Interviews

b)Mail Interviews

c)Telephone Interviews

ii. Delphi Technique

iii. Projective Techniques

iv. Focus Group Interviews

v. Questionnaire Methods a)Structured

b)Semi-structured

c)Unstructured

i.) Interview Methods:This is a method whereby a respondent and a researcher can come into direct

contact with each other in some form or the other. The researcher may go from door-to –door for interviews or may contact the respondents at some central place. The technique of interviews provides the researcher with an opportunity to ask the respondents any additional relevant questions. Modern techniques of recording may also used to ensure accuracy ,verification, etc.

(a) Depth interviews:By this method, a researcher continues asking probing questions to secure as much information as possible. His probe, of course ,is conditioned by the response of the respondent.Example:

What make of scooter did you buy? Did you compare different scooters before buying a Bajaj?What has been your experience with it?Is it easy to maintain?Is it reliable on busy roads?Are you satisfied with its performance?Thus, the researcher will continue asking questions till he is satisfied?

(b) Mail Interviews:This is a method whereby a researcher takes

interviews by mailing the questionnaire to respondent.AdvantagesSampling Frame easily developed when mailing lists are available.Not subject to interview bias.Wide distribution possible.

DisadvantagesCannot secure response from illiterates.Cannot control speed of response; long response time.Difficult to change sequence of questions.

(c) Telephone Interviews:This is a method whereby a researcher

questions the respondent on telephone.AdvantagesRelatively low cost.Relatively strong response rate.One of the quickest methods of data collection.

DisadvantagesCannot use visual aids.Does not handle long interviews well in most cases.Subject to some degree of interview bias.

(ii) Delphi Technique:It is a technique whereby a marketing researcher elicits

information by means of discussions with various experts in the fields. Each expert is asked to comment on the different aspects of a problem. Clearly, the success of this technique depends on a proper selection of experts.

(iii) Projective Techniques:Projective techniques play an important role in marketing

research .this group of techniques is based on indirect interviews in collecting data and is useful where data cannot be collected directly. These techniques are helpful in exploring the ‘whys’ of market and consumer behavior . In projective techniques, respondents are requested to interpret the behavior of ‘others’.

The following techniques are called Projective techniques:Thematic apperception test (TAT)Role PlayingCartoon CompletionWord AssociationSentence Completion

(iv) Focus Group Interviews:It is the best known and most of the people jointly participate in an unstructured indirect conducted by a moderator. Here, attempts are made to focus the discussion on the problem areas in a relaxed, on-direct manner. Focus group interviews can be used for a number of different purposes.

AdvantagesIt provides complex and varied data, because the discussion covers different group members.It saves time as well as cost.

DisadvantagesDifficulty in sample selection.Samples are necessarily very small.

SECONDARY DATA

• Secondary data are those that have already been collected by others.• These are usually in journals, periodicals, dailies, research publications, official records etc.• Secondary data may be available in the published or unpublished form. When it is not possible to collect the data by primary method, the investigator go for Secondary method.• This Data collected for some purpose other than the problem at hand.

Types of Secondary DataThere are several ways by which secondary data can be

classified ,which immediately suggest the classification of internal and external source. The following chart provides an overview of these sources.

Sources of secondary

Internal sources External sources

Sales record Credit record Internal record

Advantages of Secondary DataIt is more economical, as the cost of collecting data is saved.Secondary data provides valuable insights and contextual familiarity with the subject matter.Secondary data can be used as a basis for comparison with the primary data that the researcher has just collected.

Disadvantages of Secondary DataThe data available might be too vast and lot of time may be spent going through it.The accuracy of secondary data as well as its reliability would depend on its source.It might not be updated and not of much use in a dynamically changing environment.

DIFFERENCE BETWEEN PRIMARY ANDSECONDARY DATA

Primary data Real time data.

Sure about sources of data.

Help to give results/finding.

Costly and Time consuming process.

Avoid biasness of response data.

More flexible

Secondary data Past data.

Not sure about sources of data.

Refining the problem.

Cheap and less time consuming process.

Response data may be biased.

Less flexible

QUESTIONNAIRE – TYPES OF QUESTIONS, STRUCTURED AND UNSTRUCTURED QUESTIONS, CAUTIONS REGARDING QUESTIONS AND QUESTIONNAIRES.

WHAT IS A QUESTIONNAIRE?

A questionnaire is a set of questions for gathering information from individuals. You can administer questionnaires by mail, telephone, using face-to-face interviews, as handouts, or electronically (i.e., by e- mail or through Web-based questionnaires).

A questionnaire is a series of questions asked to individuals to obtain statistically useful information about a given topic. When properly constructed and responsibly administered, questionnaires become a vital instrument by which statements can be made about specific groups or people or entire populations.

TYPES OF QUESTIONNAIRES AND QUESTIONSQuestionnaires can be paper-based, or electronic.

2.1 Structured questionnaires (Closed Ended Questions)— are based predominantly on closed questions which produce data that can be analyzed quantitatively for patterns and trends. The agenda is entirely predetermined by the evaluator and provides little flexibility for respondents to qualify their answers.A closed question can be answered with either 'yes' or 'no'.

2.1.1 Yes/No Questions 1. Do you have a library membership card?

Yes ( )No ( )

2.1.2 Multiple Choice QuestionsWhat purpose do you visit the library? (Multiple choices) ( ) To read news papers( ) To refer books( ) To borrow and return books( ) To brows Internet2.1.3 Scaled questions - Responses are graded on a continuum (example: rate the appearance of the product on a scale from 1 to 10, with 10 being the most preferred appearance). Examples of types of scales include the Likert scale, semantic differential scale, and rank-order scale.

A likert scale is commonly used in survey research it is often used to measure respondents attitudes by asking the extent to which they agree or disagree with a particular question or statement.

Example: To what extent the information obtained from the web based resources are useful to you? (Likert Scale)

Serial no. extent

1. unsatisfied

2. Somewhat satisfied

3. neutral

4. satisfied

5. Extremely satisfied

Rankings:Please rank the following web based resource usefulness in order of preference (starting from 1 is least preferred and 10 is most preferred).

Sl no. Web based resources

ranking (1……..10)

1. E-book

2. E-journals

3. Discussion forums

4. Databases

2.3 Semi-structured questionnaires (Partially Structured Question) It is a mixed approach. In some situations, you may have a partial list of answer choices, but you may still have some doubt or uncertainty about other possible responses. You can create a partially structured question such as the following:

Example of a Partially Structured Question What purpose do you use web based resources?For research workTo write assignmentsTo improve subject knowledgeFor the purpose of seminar presentation Any other (Please specify): 1.________________

2. ________________

2.2 Unstructured questionnaires (Open-ended)

Non-structured questions, or open-ended questions, are questions where there is no list of answer choices from which to choose. Respondents are simply asked to write their response to a question. Here is an example:An open question is likely to receive a long answer.

Example of a Non-structured Question:-

1.What are the facilities and services do you expect from your library?______________________________________________________________________________________2. What are the benefits for automating a library housekeeping functions?__________________________________________________________________________________________________________________________________________It is best to use non-structured questions when you are exploring new ideas and you don't really know what to expect from the respondents.

2.4 Contingency questions A question that is answered only if the respondent gives a particular response to a previous question. This avoids asking questions of people that do not apply to them.1. Do you have computer knowledge?

Yes ( )No ( )

2. If ‘yes’ how long have you been using?From last 6 months ( ) From last 1 year ( )From last 2 years ( )From last 3-4 years ( )

3. CAUTIONS REGARDING QUESTIONS AND QUESTIONNAIRES CONSTRUCTION

1.Question number2.Order of Questions3.Check the spellings of the question statements 4.Do not use offensive language 5.Avoid double-meaning Questions6.If there are any difficult terms in the questionnaire than do explain them 7.Avoid unnecessary questions 8.Know the academic and mental capacities of the target population 9.If there are certain personal or emotional questions ask them in the middle or at the end10.Don't ask for elaborate answers 11.Use polite language 12.Don't write questions that already contain the answer to the question13.Let the respondents know that their privacy will be ensured

Information needed Method of data collection Sampling method and sample size

Construction of questionnaire and its design

Decide on the content of personal questions

Types of questions

Wording of the questions

Sequence of the questions

Layout of the questionnaire

Pretest of the questionnaire final revised questionnaire

Final revised questionnaire