MK 0004 Marketing Research Contents Unit 1 An Overview of Marketing Research 1 Unit 2 Research Process and Design 13 Unit 3 Sources of Research Data 40 Unit 4 Measurement Techniques in Marketing Research 77 Unit 5 Sampling and Data Analysis 104 Unit 6 Hypothesis Formation and Testing 124 Unit 7 Techniques of Quantitative Data Analysis 140 Unit 8 Writing a Research Report 147 Unit 9 Ethical Issues in Marketing Research 162 Unit 10 Contemporary Issues in Marketing Research 170 Edition: Fall 2007 BKID – B0798 8 th Nov. 2007
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MK 0004Marketing Research
Contents
Unit 1
An Overview of Marketing Research 1
Unit 2
Research Process and Design 13
Unit 3
Sources of Research Data 40
Unit 4
Measurement Techniques in Marketing Research 77
Unit 5
Sampling and Data Analysis 104
Unit 6
Hypothesis Formation and Testing 124
Unit 7
Techniques of Quantitative Data Analysis 140
Unit 8
Writing a Research Report 147
Unit 9
Ethical Issues in Marketing Research 162
Unit 10
Contemporary Issues in Marketing Research 170
Edition: Fall 2007
BKID – B0798 8th Nov. 2007
Brig. (Dr). R. S. Grewal VSM (Retd.)Pro Vice ChancellorSikkim Manipal University of Health, Medical & Technological Sciences
Board of StudiesMr. Rajen PadukoneMember – Academic Senate, Sikkim Manipal UniversityMs. Vimala Parthasarathy Prof. K. V. VaramballyHOD DirectorConvener Manipal Institute of ManagementDepartment of Management & Commerce ManipalDirectorate of Distance EducationSikkim Manipal UniversityProf. Raj Dorai Mr. JagadeeshIndustry Consultant and Assistant ProfessorVisiting Faculty, IBA, IFIM and BIM, Department of Management &Bangalore Commerce, Directorate of Distance
Education, Sikkim Manipal UniversityMr. Umesh Maiya Mr. R. Ravindra RaoAssistant Professor Senior FacultyDepartment of Management & Commerce Manipal Institute of Management Directorate of Distance Education ManipalSikkim Manipal University
Content Preparation TeamContent Writing and CompilationProf. Xavier V. K.Christ CollegeBangaloreFormat Editing Language EditingMs. Shulagna Sarkar Mr. Radhakrishna RaoLecturer Lecturer in EnglishDept. of Management & Commerce UPMC, UdupiSikkim Manipal University ofHealth, Medical & Technological Sciences (SMU)Manipal – 576 104
Edition: Fall 2007
This book is a distance education module comprising of collection of learning material for our students.
All rights reserved. No part of this work may be reproduced in any form by any means without permission in writing from Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok, Sikkim.
Printed and Published on behalf of Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok, Sikkim by Mr. Rajkumar Mascreen, GM, Manipal Universal Learning Pvt. Ltd., Manipal – 576 104. Printed at Manipal Press Limited, Manipal.
SUBJECT INTRODUCTION
Marketing research is a critical part of such a marketing intelligence system;
it helps to improve management decision making by providing relevant,
accurate, and timely (RAT) information. Every decision poses unique needs
for information, and relevant strategies can be developed based on the
information gathered through marketing research.
In practice, marketing research department’s goal can be grouped into three
major categories: programmatic, selective or evaluative. Programmatic
research is performed to develop marketing options through market
segmentation, market opportunity analysis, or consumer attitude and
product usage studies. Selective research is done to test different decision
alternatives such as new product concept testing, advertising copy testing,
pretest marketing, and test marketing. Evaluative research is carried out to
evaluate performance of programs, including tracking advertising recall,
corporate and brand image studies, and measuring customer satisfaction
with the quality of the product ad service.
The research process consists of stages or steps that guide the project form
its conception through the final analysis, recommendation, and ultimate
action. The research process provides a systematic, planned approach to
the research project and ensures that all aspects of the research project are
consistence with each other. It is especially important that the research
design and implementation be consistent with the research purpose and
objectives. Otherwise, results will not help the client.
Unit 1:
An overview of marketing research
Meaning, Definition, and terminologies
The function of marketing research
Information and decision making
Marketing information systems
Marketing decision support systems
Types of research, areas of research etc
Unit 2:
The research process and design
Steps in research design process
Potential errors affecting the research design
Unit 3:
Sources of research data
Primary data and its types
Secondary data and its types
Commercial surveys, audits and panels
Survey research
Experimentation and experiment environment
Unit 4:
Measurement techniques in marketing research
The concept of measurement
Scales of measurement
Components of measurement
Measurement accuracy
Measurement development
Questionnaire design
Direct response attitude scales
Derived attitude scales
Observation and psychological measures
Unit 5:
Sampling and data analysis
The sampling process
Sample size determination
Unit 6:
Hypothesis and its test
Unit 7:
Issues and techniques of quantitative data analysis
Cross tabulation
Multiple Regression Analysis
Perceptual mapping
Conjoint analysis
Unit 8:
Writing a research report
Preparing the research report and approaches to research report
Preparing oral presentation
Reading research reports
Unit 9:
Ethical issues in marketing research
Corporate Espionage
Unit 10:
Contemporary issues in marketing research
Role of marketing research in industry
Ethical issues- code of conduct, data-protection act
Role of agency and client
Role of in-house researcher
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Unit 1 An Overview of Marketing Research
Structure
1. 1 Introduction: Meaning, Definition, and Terminologies
Objectives
1. 2 The Function of Marketing Research
1.2.1 Situation Analysis
1.2.2 Strategy Development
1.2.3 Market Program Development
1.2.4 Implementation
1. 3 Information and Decision Making
1. 4 Marketing Information Systems
1. 5 Marketing Decision Support Systems
1. 6 Types of research, areas of research
Self Assessment Questions
1. 7 Summary
1. 8 Terminal Question
1. 9 Answers to SAQs and TQs
1.1 Introduction: Meaning Definition and Terminologies
Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational objectives. The
marketing concept requires that customer satisfaction rather than profit
maximization, be the goal of an organisation. In other words, the
organisation should be consumer oriented and should try to understand
consumer’s requirements and satisfy them quickly and efficiently, in ways
that are beneficial to both the consumer and the organisation. This means
that any research organisation should try to obtain information on consumer
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needs and gather marketing intelligence to help satisfy these needs
efficiently.
Marketing research is a critical part of such a marketing intelligence system;
it helps to improve management decision making by providing relevant,
accurate, and timely (RAT) information. Every decision poses unique needs
for information, and relevant strategies can be developed based on the
information gathered through marketing research.
Objectives:
After studying this unit, the student should be able to:
understand the Function of Marketing Research
discuss the information and Decision Making
explain the Situation Analysis
understand Strategy Development
explain Market Program Development
discuss Marketing Information Systems
explain Marketing Decision Support Systems
discuss types of research, areas of research
Definition of Marketing Research
American Marketing Association officially defines marketing research as
follows: Marketing research is the function that links the consumer,
customer, and public to the marketer through information - information used
to identify and define marketing opportunities and problems; generate,
refine, and evaluate marketing actions; monitor marketing performance; and
improve understanding of marketing as a process. Marketing research
specifies the information required to address these issues, designs the
method for collecting information, manages and implements the data
collection process, analyses, and communicates the findings and their
implications.
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This definition highlights the role of marketing research as an id to decision
making. An important feature is the inclusion of the specification ad
interpretation of needed information. Too often, marketing research is
considered narrowly as gathering and analyzing of data for someone to use.
Firms can achieve and sustain a competitive advantage through the creative
use of marketing information. Hence, marketing research is defined as
information input to decisions, not simply the evaluation of decisions that
have been made. Market research alone, however, does not guarantee
success; the intelligent use of market research is likely for business
achievement. A competitive edge is more the result of how information is
used than of who does or does not nave the information.
1.2 The Function of Marketing Research
Marketing decisions involve issues that range from fundamental shifts in the
positioning of a business or the decision to enter a new market to narrow
tactical questions of how best to stock a grocery shelf. The context for these
decisions is the market planning process, which proceeds sequentially
through four stages:
Situation analysis
Strategy development
Marketing program development
Implementation
This is a never-ending process, so the evaluation of past strategic decisions
serves as an input to the situation assessment.
1. 2.1 Situation Analysis
Effective marketing strategies are built on an in-depth understanding of the
market environment of the business, and the specific characteristics of the
market. The micro-environment includes political and regulatory trends,
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economic and social trends, and technological trends. Marketing
researchers tend to focus on those trends that affect the demand for
products and services.
1.2.2 Strategy Development
During the strategy development stage the management team of the
business decides on answers to three critical questions. Marketing research
provides significant help in finding the answers to these questions.
What business should we be in? Specifically, what products or services
should we offer? What technologies will we utilize? Which market segments
should we emphasize? What channels should we use to reach the market?
These questions are compelling in markets that are mature and saturated,
including not only most packaged goods but also household appliances,
automobiles, and services such as banking and air travel. Research
supports this search for niches with large-scale quantitative market studies
that describe buying behaviors, consumer beliefs and attitudes, and
exposure to communication media. Large samples are needed to delineate
the segments, indicate their size, and determine what the people in each
segment are seeking in a product.
What will we compete? The management team has to decide why the
business is better than the competition in serving the needs of the target
segment, and what has to be done to keep it in front. Competitive superiority
is revealed in the market as either differentiation along attributes that are
important to target customers, or the lowest delivered cost position.
Marketing research is essential for getting answers to three key questions
about differentiation: what are the attributes of the product or services that
create value for the customer? Which attributes are most important? How do
we compare to the competition? An understanding of competitive advantage
also requires detailed knowledge of the capabilities, strategies, and
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intentions of present and prospective competitors. Marketing research
contributes here in two ways: identifying the competitive set, and collecting
detailed information about each competitor.
What are the objectives for the business? An objective is a desired
performance result that can be quantified and monitored. There are usually
objectives of revenue growth, market share, and profitability. Increasingly,
firms are adopting objectives for service levels, and customer satisfaction.
Marketing research is needed to establish both the market share and the
level of customer satisfaction.
1.2.3 Marketing Program Development
Programs embrace specific tasks, such as developing a new product or
launching a new advertising campaign. An action program usually focuses
on a single objective in support of one element of the overall business
strategy. This is where the bulk of ongoing marketing research is directed.
Developing the marketing program – representative decisions that draw on
marketing research:
i) Segmentation decisions
Which segment should be the target?
What benefits are most important for each segment?
When geographic area should be entered?
ii) Product decisions
What product features should be included?
How should the price be positioned?
What type of package is preferred by the customers?
iii) Distribution decisions
What type of retailer should be used?
What should be the mark up policy?
Should a few outlets be employed or many?
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iv) Advertising and promotion decisions
What appeals should be used in the advertising?
In which vehicles should the advertising be placed?
What should the budget be?
What sales promotion should be used, and when should it be
scheduled?
v) Personal selling decisions
What customer types have the most potential?
How many sales people are needed?
vi) Price decisions
What price level should be changed?
What sales should e offered during the year?
What response should be made to a competitor’s price?
vii) Branding decisions
What should be the name, symbol, logo and slogan that will be
associated with the product?
What is the position that the brand should adopt vis-à-vis the
competition?
How can brand loyalty be increased?
viii)Customer satisfaction decisions
How should customer satisfaction be measured?
How often should it be measured?
How should customer complaints be handled?
1.2.4 Implementation
The beginning of the implementation phase is signalled by a decision to
proceed with a new program or strategy and by the related commitments to
objectives, budgets, and timetables. At this point, the focus of marketing
research shifts to such questions as:
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i) Did the elements of the marketing program achieve their objectives?
How id sales compare with objectives?
In what areas were sales disappointing? Why?
Were the advertising objectives met?
Did the product achieve its distribution objectives?
Are any supermarkets discounting the product?
ii) Should the marketing program be continued, revised, or expanded?
Are customers satisfied with the product?
Should the product be changed? More features added?
Should the advertising budget be changed?
Is the price appropriate?
For research to be effective at this stage, it is important that specific
measurable objectives be set for all elements of the marketing program.
There should be sales goals by geographic area; distribution goals, perhaps
in terms of the number of stores carrying the product; and advertising goals,
such as achieving certain levels of awareness. The role of marketing
research is to provide measures against these objectives and to provide
more focused studies to determine why results are below or above
expectations.
1.3 Information and Decision Making
The decision whether to conduct marketing research depends on the type
and nature of the information sought. If the information required for decision
making already exists within the organisation in the form of results of a study
conducted for a different problem or in the form of managerial experience
and talents, marketing research is not called for. Under these
circumstances, further research would be redundant and a waste of money.
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1.4 Marketing Information system
An information system is a continuing and interacting structure of people,
equipment and procedures designed to gather, sort, analyze, evaluate and
distribute pertinent, timely and accurate information to decision makers.
While marketing research is concerned mainly with the actual content of the
information and how it is to be generated, the information system is
concerned with managing the flow of data from many different projects and
secondary sources to the managers who will use it. The required databases
organize and store the information and the decision support systems
(DSS) to retrieve the data, transform it into usable information and
disseminate it to users.
Information systems contain three types of information. The first is recurring
day-to-day information, for example, the market and accounting data that
flow into the organisation as a result of market analysis research ad
accounting activities. Automobiles firms use government sources for
monthly data on new cars sales by brand and geographic area. In addition,
surveys are conducted yearly to determine the ages and types of
automobiles currently being driven, the lifestyles of the drivers, their media
habits, and their intentions to replace their cars. The accounting department
submits sales and inventory data for each of its dealers on a continuing
basis to update and supplement the information system.
A second type of information is intelligence relevant to the future strategy of
the business. Automobile firms collect reports about new sources of fuel to
power automobiles. This information might come from scientific meetings,
trade organizations, or perhaps form government reports. It also includes
information from salespersons or dealers about new product tests being
conducted by competitive firms. Intelligence is difficult to develop, because it
usually involves diverse and changing sets of topic and information sources
and is rarely collected systematically.
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A third input to the information system is research studies that are not of a
recurring nature. The potential usefulness of a marketing research study can
be multiplied manifold if the information is accessible instead of filed and
forgotten.
1.5 Marketing Decision Support Systems
Databases have no value if the insights they contain cannot be retrieved. A
decision support system not only allows the manager to interact directly with
the database to retrieve what is wanted, it also provides a modelling function
to help make sense of what has been retrieved.
A common example of a DSS in action is that used by many industrial sales
people – especially those selling products that require significant
customization. The salesperson frequently will be asked whether or not the
price and delivery time of a unique product configuration will meet or exceed
a competitor’s promises. Without leaving the customer’s office, the
salesperson can plug a laptop computer into a phone jack and begin
communicating with a database stored in the company’s main computer
memory. The salesperson types in the product configuration and desired
delivery data, and these requirements are compared to the costs, inventory,
and assembly time contained in the data bank. In a matter of minutes, the
sales person can propose a price and delivery date – and perhaps close the
sales.
Each firm has to develop or adapt a model to support its own decision
problems.
A sales force turnover model, which revealed that the most significant
variable influencing the turnover rate was the level of the appointment fee
that representatives pay for initial materials.
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An order model is that which explains the components of the average order
and isolates the actionable variables such as the size and timing of the
catalogue and the gift incentives.
A procurement model is that which helps determine how much of a new
product to buy, when to purchase it and the risks involved.
1.6 Types of Research, Areas of Research
In practice, marketing research department’s goal can be grouped into three
major categories: programmatic, selective or evaluative.
Programmatic research is performed to develop marketing options through
market segmentation, market opportunity analysis, or consumer attitude and
product usage studies.
Selective research is done to test different decision alternatives such as
new product concept testing, advertising copy testing, pre-test marketing,
and test marketing.
Evaluative research is carried out to evaluate performance of programs,
including tracking advertising recall, corporate and brand image studies, and
measuring customer satisfaction with the quality of the product and service.
Self Assessment Questions I
State whether the following statements are true or false:
1. An information system is a continuing and interacting structure of
people, equipment and procedures designed to gather, sort, analyze,
evaluate and distribute pertinent, timely and accurate information to
decision makers.
2. A decision support system allows the manager to interact directly with
the database to retrieve what is wanted, and provides a modelling
function to help make sense of what has been retrieved.
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3. Marketing research can be grouped into three major categories:
programmatic, selective or evaluative
1.7 Summary
Marketing research is the function that links the consumer, customer, and
public to the marketer through information- information used to identify and
define marketing opportunities and problems; generate refine, and evaluate
marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. Marketing research specifies the
information required to address these issues, designs the method for
collecting information, manages and implements the data collection process,
analyses, and communicates the findings and their implications. The market
planning process, which proceeds sequentially through four stages:
Situation analysis
Strategy development
Marketing program development
Implementation
An information system is a continuing and interacting structure of people,
equipment and procedures designed to gather, sort, analyze, evaluate and
distribute pertinent, timely and accurate information to decision makers. A
decision support system allows the manager to interact directly with the
database to retrieve what is wanted, and provides a modeling function to
help make sense of what has been retrieved. Marketing research can be
grouped into three major categories: programmatic, selective or evaluative
1.8 Terminal Questions
1. Define market research.
2. What are decision support systems?
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3. What are marketing program development?
4. What is strategy development?
5. What is situation analysis?
6. What are the marketing information systems in market research?
7. Explain the functions of marketing research.
8. What are the major questions to be addressed in conducting a marketing
research?
1.9 Answers to SAQs and TQs
SAQs
1. True
2. True
3. True
TQs
1. Section 1.2.
2. Section 1.6
3. Section 1.3.3
4. Section 1.3.2
5. Section 1.3.1
6. Section 1.5
7. Section 1.3
8. Section 1.3.3
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Unit 10 Contemporary Issues in
Marketing Research
Structure
10.1 Introduction: Role of Marketing Research in Industry
Objectives
10.2 Assessing Competitive Advantage
10.3 Market Based Assessment
10.3.1 Market Share
10.3.2 Recall Share
10.3.3 Advertisement Share
10.3.4 R&D Share
10.4 Process Based Assessment
10.4.1 Market Skills Audit
10.4.2 Comparison Relative to Cost
10.4.3 Comparison of Winners vs. Losing Competitors
10.4.4 Brand Equity
10.5 Customer Satisfaction
10.6 Total Quality Management
10.7 Identifying High Leverage Phenomena
10.8 Ethical Issues- Code of Conduct, Data-Protection Act
10.9 Role of Agency and Client
10.10 Role of In-House Researcher
Self Assessment Questions
10.11 Summary
10.12 Terminal Questions
10.13 Answers to SAQs and TQs
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10.1 Introduction: Role of Marketing Research in Industry
To survive in twentieth century, firms must not only provide goods and
services to the customer efficiency but should also possess sustainable
competitive advantage. Hence, there has been a shift of focus in marketing,
from delivering goods and services to consumers (satisfying their needs) to
achieve a competitive advantage. Companies are embracing new tools,
techniques and strategies in order to remain competitive
A strategy that companies have begun to adopt is total quality management
(TQM). To decide on and implement this strategy, mangers require
dramatically different information than they need for making marketing-mix
decisions. Hence, marketing research has to rise to the challenge and
provide managers with requisite information. Moreover, tremendous
advances in the field of statistics and computational capabilities have led
market researchers to adopt more and more sophisticated techniques.
Objectives:
After studying this unit, the students should be able to understand various
researches related to:
Assessing competitive advantage
Market based assessment
Market share
Recall share
Advertisement share
R&D share
Process based assessment
Market skills audit
Comparison relative to cost
Comparison of winners vs. losing competitors
Brand equity
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Customer satisfaction
Total Quality Management
Identifying high leverage phenomena
Ethical issues- code of conduct, data-protection act
Role of agency and client
Role of in-house researcher
10.2 Assessing Competitive Advantage
Assessing competitive advantage can be done in different ways. The
methods can be broadly classified as market based assessment and
process based assessment. Market based assessment is direct comparison
with a few target competitors; whereas, process based assessment is
comparison of the methods employed by the competitors in achieving their
distinctive advantage.
10.3 Market-based Assessment
10.3.1 Market Share
Market share is measured as a percentage of total industry sales over a
specified period. Clearly, there are problems in assessing competitive
advantage using market share. A company’s market share can change
dramatically depending on whether the market is defined as global, a
particular export market, domestic market, regional market ,a city, a
segment of users, or is based on product usage.
The change in market share over time is a vital indicator of competitive
dynamics, particular during the growth stage of a product or market. It
indicates whether the firm is ahead, abreast, or behind the market’s total
growth rate.
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10.3.2 Recall Share
Recall share is the percentage of customers who name the brand when they
are asked to name the first brand that comes to mind when they consider
buying a particular type of product. This indicates the consumer’s top-of-
mind brand awareness and preferences and gives a measure of advantage
to that brand over others in the market.
10.3.3 Advertising Share
Advertising share is the percentage of media space or time a brand has of
the total media share for that industry, often measured simply as dollars
spent on advertising. This is likely to lead to a change in recall share.
Advertising share is another measure of the current competition that a firm
faces
10.3.4 R&D Share
R&D share is a company’s research and development expenditure as a
percentage of total industry R&D expenditures. This is a long-term predictor
of new-product development, improvements in quality, cost reductions, and
hence market share. It is very important measure of future competitiveness
in many high-technology markets. All of these shares can be obtained from
either survey data or secondary data.
10.4 Process-based Assessment
10.4.1 Marketing Skills Audit
Skills are the most distinctive encapsulation of the organization’s way of
doing business. One vehicle for assessing skills is the marketing audit. This
is a comprehensive, systematic, independent, and periodic examination of a
business unit’s marketing environment, objectives, strategies and activities.
The audit should be based on customer orientation or focus on customer
satisfaction as its overriding theme. The audit is simply a marketing
research project whose objective is to critically evaluate the way the firm
performs in its environment.
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10.4.2 Comparison of relative to Cost
Another measure of advantage is a comparison of the firm’s costs versus
those of competitors. The company gains a cost advantage when its
cumulative costs are lower than its competitor’s. Competitors’ costs can be
estimated from public data or interviews with suppliers and distributors.
Secondary data can be used to obtain such a data.
10.4.3 Comparison of Winning vs. Losing Competitors
Key success factors can be inferred by analyzing differences in performance
among competitors. For this approach to yield useful insights, three difficult
questions must be answered. First, which competitors should be included in
the comparison set? Second, which criteria should be used to distinguish
the winners form the losers (e.g. profitability, growth, market share, creation
of markets)? Third, what are the reasons for the differences in performance?
10.4.4 Brand Equity
Brand equity is defined as a set of assets and liabilities linked to a brand
that add to or subtract form the value of a product or service to a company
and/or its customers. The assets or liabilities that underlie brand equity must
be linked to the name and symbol of the brand. They can be grouped into
five categories:
Brand loyalty
Name awareness
Perceived quality
Brand associations in addition to perceived quality
Other proprietary brand assets: patents, trademarks, channel
relationships etc.
10.5 Customer Satisfaction
In recent years, American business has become increasingly committed to
the idea of customer satisfaction and product serve quality. The
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measurement of customer satisfaction and its link to product/service
attributes is the vehicle for developing a market driven approach. Customer
satisfaction research has been around for a long time, but it has become a
fixture at most large corporation only in recent years.
10.6 Total Quality Management
Recent years have witnessed a renewed emphasis on delivering superior
quality products and services to customers. With foreign competition
steadily eating away the profitability and the market shares of Indian
companies, more and more of them are adopting total quality management
(TQM) to become more competitive. TQM is a process of managing
complex changes in the organisation with the aim of improving quality.
10.7 Identifying High-Leverage Phenomena
Ideally, these are causal relationships that describe how controllable
variables such as plant scale, production-run length, and sales costs per
unit.
10.8 Ethical Issues- Code of Conduct, Data-Protection Act
The Code of Ethics of Marketing Research Association
a. Ethics refers to moral principles or values that generally govern the
conduct of an individual or group. Researchers have responsibilities to
their profession, clients, and respondents and must adhere to high
ethical standards to ensure that both the function and information are
not brought into disrepute. The marketing Research association, Inc
(Chicago, Illinois) has instituted a code of ethics of professional Ethics
and Practices for marketing ethical decisions.
b. The code of Professional Ethics and Practices
c. To maintain high standard of competence and integrity in marketing and
survey research.
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d. To maintain the highest level of business and professional conduct and
to comply with Federal State and local laws, regulations and ordinances
applicable to my business practice and those of my company.
e. To exercise all reasonable care to observe the best standards of
objectivity and accuracy in the development, collection, processing and
reporting of marketing and survey research information.
f. To thoroughly instruct and supervise all persons for whose work I am
responsible in accordance with study specifications and general
research techniques.
g. To observe the rights of ownership of all materials received from and /or
developed for clients, and to keep in confidence all research techniques,
data and other information considered confidential by their owners.
h. To make available to clients such details on the research methods and
techniques of an assignment as may be reasonably required for proper
interpretation of the data, providing this reporting does not violate the
confidence of respondents of clients.
i. To promote the trust of the public for marketing and survey research
activities and to avoid any procedure which, misrepresents the activities
of a respondents, the rewards of cooperation or the uses of data.
j. To refrain from referring to membership in this organisation as proof of
competence, since the organisation does not so certify any person or
organisation.
k. To encourage the observance of principles of this code among all
people engaged in marketing and survey research.
10.9 Role of Agency and Client
A respondent who participate in a marketing research project has the ethical
obligation to provide the supplier, and hence the client, with honest and
truthful answers. The respondent could refrain from answering a sensitive
question, but falsifying the answer is ethically improper.
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Any respondent who participates in a research project has the following
rights:
The right to privacy
The right to safety
The right to know the true purpose of the research
The right to the research results
The right to decide which questions to answer
10.10 Role of In-House Researcher
The marketing manager’s essential task is to develop a marketing strategy
that involves combining the marketing mix elements in such a way that they
complement each other and positively influence customer’s value
perceptions and behaviours. This task should be much simpler if all
elements that affect customer’s perceptions of value were under the
manager’s control and if customer reaction to any contemplated change
could be predicted with certainty. However, a number of factors affecting the
success of the marketing effort, including economic, political and legal,
social, natural, technological and competitive environments are beyond the
marketing manager’s control and the behaviour of individual customers is
largely unpredictable.
Self Assessment Questions
State whether the following statements are true or false:
1. Market share is measured as a percentage of total industry sales over a
specified time period.
2. Recall share is the percentage of customers who name the brand when
they are asked to name the first brand that comes to mind when they
consider buying a particular type of product.
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3. Advertising share is the percentage of media space or time a brand has
of the total media share for that industry, often measured simply as
dollars spent on advertising.
4. R&D share is a company’s research and development expenditure as a
percentage of total industry R&D expenditures
10.11 Summary
To survive in twentieth century, firms must not only provide goods and
services to the customer efficiency but should also possess sustainable
competitive advantage. Companies are embracing new tools, techniques
and strategies in order to remain competitive. A strategy that companies
have begun to adopt is total quality management (TQM). Assessing
competitive advantage can be done in different ways. The methods can be
broadly classified as market based assessment and process based
assessment. Market based assessment is direct comparison with a few
target competitors; whereas, process based assessment is comparison of
the methods employed by the competitors in achieving their distinctive
advantage. Market share is measured as a percentage of total industry
sales over a specified time period. The change in market share over time is
a vital indicator of competitive dynamics, particular during the growth stage
of a product or market. It indicates whether the firm is ahead, abreast, or
behind the market’s total growth rate. Recall share is the percentage of
customers who name the brand when they are asked to name the first brand
that comes to mind when they consider buying a particular type of product.
Advertising share is the percentage of media space or time a rand has of
the total media share for that industry, often measured simply as dollars
spent on advertising. R&D share is a company’s research and development
expenditure as a percentage of total industry R&D expenditures. Skills are
the most distinctive encapsulation of the organization’s way of doing
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business. One vehicle for assessing skills is the marketing audit. Another
measure of advantage is a comparison of the firm’s costs versus those of
competitors. Key success factors can be inferred by analyzing differences in
performance among competitors. Brand equity is defined as a set of assets
and liabilities linked to a brand that add to or subtract form the value of a
product or service to a company and/or its customers. They can be grouped
into five categories:
Brand loyalty
Name awareness
Perceived quality
Brand associations in addition to perceived quality
Other proprietary brand assets: patents, trademarks, channel relationships
etc. In recent years, American business has become increasingly committed
to the idea of customer satisfaction and product serve quality. Recent years
have witnessed a renewed emphasis on delivering superior quality products
and services to customers. With foreign competition steadily eating away
the profitability and the market shares of Indian companies, more and more
of them are adopting total quality management (TQM) to become more
competitive.
Ethics refers to moral principles or values that generally govern the conduct
of an individual or group. Researchers have responsibilities to their
profession, clients, and respondents and must adhere to high ethical
standards to ensure that both the function and information are not brought
into disrepute. A respondent who participate in a marketing research project
has the ethical obligation to provide the supplier, and hence the client, with
honest and truthful answers. The marketing manager’s essential task if to
develop a marketing strategy that involves combining the marketing mix
elements in such a way that they complement each other and positively
influence customer’s value perceptions and behaviours.
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10.12 Terminal Questions
1. Explain the Role of Marketing Research in Industry
2. How Competitive Advantage is assessed?
3. What is Market-based Assessment research?
4. How do we find out Brand Equity?
5. What is Customer Satisfaction?
6. What is Total Quality Management?
7. Explain The Code of Ethics of Marketing Research Association
8. What is the role of Agency and Client with respect to marketing research
ethics?
9. What is the role of in-house researcher?
10.13 Answers to SAQs and TQs
SAQs
1. True
2. True
3. True
4. True
TQs
1. Section 10. 1
2. Section 10.3
3. Section 10.3
4. Section 10.4.3
5. Section 10. 5.
6. Section 10.6
7. Section 10.8.
8. Section 10.9.
9. Section 10.10
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References:
1. Gilbert A. Churchill, Dawn Iacobucci, Marketing Research –
Methodological Foundations, Thomson, United States, 2004.
2. John R. Sparks and Shelly D. Hunt, Marketing Researcher Ethical
Sensitivity; Conceptualisation, Measurement and Exploratory Investigation,
Journal of Marketing, pp. 92-109.
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Unit 2 Research Process and Design
Structure
2.1 Introduction: Nature of Research Process
Objectives
2.2 Steps in research design process
2.2.1 Step 1. Research Purpose
2.2.2 Step 2. Research Objectives
2.2.3 Step 3.Estimating the value of information
2.3 Research Design
2.3.1 Needs of research Design
2.3.2 Characteristics of good research design
2.3.3 Important concepts relating to research design
2.3.4 Types of research design
2.3.5 Principles of research design
2.3.6 Important experimental designs
2.3.7 Formal experimental design
2.4 Potential errors affecting the research design
2.4.1 Sampling error
2.4.2 Non-sampling error
2.4.3 Design error
2.4.4 Selection error
2.4.5 Population specific error
2.4.6 Sampling frame error
2.4.7 Surrogate information error
2.4.8 Measurement error
2.4.9 Experimental error
2.4.10 Data analysis error
2.4.11 Administration error
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2.4.12 Questioning error
2.4.13 Recording error
2.4.14 Interference error
2.4.15 Response error
2.4.16 Non-response error
Self assessment Questions
2.5 Summary
2.6 Terminal Question
2.7 Answers to SAQs and TQs
2.1 Introduction: Nature of Research Process
The research process consists of stages or steps that guide the project form
its conception through the final analysis, recommendation, and ultimate
action. The research process provides a systematic, planned approach to
the research project and ensures that all aspects of the research project are
consistent with each other. It is especially important that the research design
and implementation be consistent with the research purpose and objectives.
Otherwise, results will not help the client.
Research studies evolve through a series of steps, each representing the
answer to a key question.
1. Why should we do research? This establishes the research purpose as
seen by the management team that will be using the results. This step
requires the understanding the decisions to be made and the problems
or opportunities to be diagnosed.
2. What research should be done? Here the management purpose is
translated into objectives that tell the researchers exactly what questions
need to be answered by the research study or project.
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3. Is it worth doing research? The decision has to be made here about
whether the value of the information that is likely to be obtained is going
to be greater than the cost of collecting it.
4. How should the research be designed to achieve the research
objectives? Design issues include the choice of research approach –
reliance on secondary data versus conducting a survey or experiment-
and the specifics of how to collect the data.
5. What will we do with the research? Once the data have been collected,
how will it be analysed, interpreted, and used to make recommendations
for action.
Objectives:
After studying this unit, the student should be able to:
explain the Steps in research design process
discuss the Research Design
understand the needs of research Design
explain the characteristics of good research design
discuss the important concepts relating to research design
explain the types of research design
discuss the principles of research design
understand the important experimental designs
understand the formal experimental design
identify the potential errors affecting the research design
2.2 Steps in Marketing Research Design Process
2. 2.1 Step 1- Research Purpose
It is in the best interest of both the researcher and managers paying for the
research to be sure that the research purpose is fully understood. One of
the hallmarks of a competent researcher is the ability to get the heart of the
management problem.
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The research purpose comprises a shared understanding between the
manager and the researcher of:
1. Problems or opportunities to be studied
Which problems or opportunities are anticipated?
What is the scope of the problems and the possible reasons?
2. Decision alternatives to be evaluated
What are the alternatives being studied?
What are the criteria for choosing among the alternatives?
What is the timing or importance of the decision?
3. Users of the research results
Who are the decision makers?
Are there any covet purpose?
Problem or Opportunity Analysis: In analyzing problems or opportunities
to be studied, constant contact with customers to monitor trends is very
important. Research is often motivated by problem or opportunity. The fact
that people are consuming fewer sweets might be a problem or a potential
opportunity for a candy company. Increased leisure time might be viewed as
an opportunity by a recreation oriented organisation. In such cases the
research purpose should specify the problem or opportunity to be explored.
The manager should make sure that real problem is being addressed.
Decision Alternatives: For research to be effective, it must be associated
with a decision. Marketing research is committed to the principle of utility. In
general, if the research is not going to have an effect on decisions, it is an
exercise in futility. The researcher should be always sensitive to the
possibility that either there are no decision alternatives – and therefore no
decision – or that the research findings will not affect the decision, usually
because of resource or organizational constraints. In such circumstances,
the research will have no practical value and probably should not be
conducted.
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Criteria for Choosing among Alternatives: It is essential for the
researcher to know how the decision maker will choose among the available
alternatives. Suppose the product manager is considering three possible
packages redesigning for a health-care product with declining sales. The
following criteria to choose the best of the three alternative packages:
1. Long run sales
2. Trial purchases by users f competing brands
3. Amount of shelf space assigned to the brand
4. Differentiation from competitive packages
5. Brand-name recognition.
Research Users: When the research results will be used to guide internal
problem solving, the researcher must know the objectives and expectations
of the actual decision makers. The bigger the problem, the more difficult this
becomes, for not only are a large number of people likely to be involved, but
the contact person may simply be acting as a liaison whose interpretation of
the problem and the need for research may be second-hand. The major
benefit from making an effort to reach all the decision makers is that the
research purpose is likely to be specified more adequately.
2.2.2 Step 2 – Research Objective
The research objective is a statement, in as precise terminology as possible,
of what information is needed. The research objective should be framed so
that obtaining the information will ensure that the research purpose is
satisfied.
Research objectives have three components. The first is the research
question. It specifies the information the decision maker needs. The second
and the third elements help the researcher make the research question as
specific and precise as possible. The second is the development of
hypotheses that are basically alternative answers to the research questions.
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The research determines which of these alternative answers is correct. It is
not always possible to develop hypothesis, but an effort should be made.
The third is the scope or boundaries of the research.
2.2.3 Step 3 – Estimating the Value of Information
Before a research approach can be selected, it is necessary to have an
estimate of the value of information – that is, the value of obtaining answers
to the research questions. Such an estimate will help determine how much,
if anything, should be spent on the research.
The value will depend on the importance of the decision as noted in the
research purpose, the uncertainty that surrounds it, and the influence of the
research information on the decision. If the decision is highly significant in
terms of the investment required or in terms of its effect on the long- run
success of the organisation, then information may have a high value.
However, uncertainty that is meaningful to the decision also must exist if the
information is to have value. If the outcomes are already known with
certainty, or if the decision will not be affected by the research information,
the information will have no value.
2.3 Research Design
A research design is a logical and systematic plan prepared for directing a
research study. It specifies the objectives of the study, the methodology and
techniques to be adopted for achieving the objectives. It constitutes the blue
print for the collection, measurement and analysis of data. It is the plan,
structure and strategy of investigation conceived so as to obtain answers to
research questions. The plan is the overall scheme or program of research.
A research design is the program that guides the investigator in the process
of collecting, analyzing and interpreting observations. It provides a
systematic plan of procedure for the researcher to follow.
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Selltiz, Jahoda and Destsch and Cook describe, “A research design is the
arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose of with economy in
procedure.”
2.3.1 Needs of Research Design
1) In many a research inquiry, the researcher has no idea as to how
accurate the results of his study ought to be in order to be useful. Where
such is the case, the researcher has to determine how much inaccuracy
may be tolerated. In a quite few cases he may be in a position to know
how much inaccuracy his method of research will produce. In either
case he should design his research if he wants to assure himself of
useful results.
2) In many research projects, the time consumed in trying to ascertain what
the data mean after they have been collected is much greater than the
time taken to design a research which yields data whose meaning is
known as they are collected.
3) The idealized design is concerned with specifying the optimum research
procedure that could be followed where there are no practical
restrictions.
2.3.2 Characteristics of a Good Research Design
1) It is a series of guide posts to keep one going in the right direction.
2) It reduces wastage of time and cost.
3) It encourages coordination and effective organization.
4) It is a tentative plan which undergoes modifications, as
circumstances demand, when the study progresses, new aspects,
new conditions and new relationships come to light and insight into
the study deepens.
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5) It has to be geared to the availability of data and the cooperation of
the informants.
6) It has also to be kept within the manageable limits
2.3.3 Important Concepts relating to Research Design
It is important to be familiar with the important concepts relating to research
design. They are:
1. Dependent and Independent variables: A magnitude that varies is
known as a variable. The concept may assume different quantitative
values, like height, weight, income, etc. Qualitative variables are not
quantifiable in the strictest sense of objectivity. However, the
qualitative phenomena may also be quantified in terms of the presence
or absence of the attribute considered. Phenomena that assume
different values quantitatively even in decimal points are known as
‘continuous variables’. But, all variables need not be continuous.
Values that can be expressed only in integer values are called ‘non-
continuous variables’. In statistical term, they are also known as
‘discrete variable’. For example, age is a continuous variable; where
as the number of children is a non-continuous variable. When changes
in one variable depends upon the changes in one or more other
variables, it is known as a dependent or endogenous variable, and the
variables that cause the changes in the dependent variable are known
as the independent or explanatory or exogenous variables. For
example, if demand depends upon price, then demand is a dependent
variable, while price is the independent variable. And if, more variables
determine demand, like income and prices of substitute commodity,
then demand also depends upon them in addition to the own price.
Then, demand is a dependent variable which is determined by the
independent variables like own price, income and price of substitute.
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2. Extraneous variable: The independent variables which are not
directly related to the purpose of the study but affect the dependent
variable are known as extraneous variables. For instance, assume that
a researcher wants to test the hypothesis that there is relationship
between children’s school performance and their self-concepts, in
which case the latter is an independent variable and the former the
dependent variable. In this context, intelligence may also influence the
school performance. However, since it is not directly related to the
purpose of the study undertaken by the researcher, it would be known
as an extraneous variable. The influence caused by the extraneous
variable on the dependent variable is technically called as an
‘experimental error’. Therefore, a research study should always be
framed in such a manner that the dependent variable that completely
influence the change in the independent variable and any other
extraneous variable or variables.
3. Control: One of the most important features of a good research
design is to minimize the effect of extraneous variable. Technically, the
term control is used when a researcher designs the study in such a
manner that it minimizes the effects of extraneous independent
variables. The term control is used in experimental research to reflect
the restrain in experimental conditions.
4. Confounded relationship: The relationship between dependent and
independent variables is said to be confounded by an extraneous
variable, when the dependent variable is not free from its effects.
5. Research hypotheses: When a prediction or a hypothesized
relationship is tested by adopting scientific methods, it is known as
research hypothesis. The research hypothesis is a predictive
statement which relates a dependent variable and an independent
variable. Generally, a research hypothesis must consist of at least one
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dependent variable and one dependent variable. Whereas, the
relationships that are assumed but not be tested are predictive
statements that are not to be objectively verified are not classified as
research hypotheses.
6. Experimental and non-experimental hypothesis testing research:
when the objective of a research is to test a research hypothesis, it is
known as a hypothesis-testing research. Such research may be in the
nature of experimental design or non-experimental design. A research
in which the independent variable is manipulated is known as
‘experimental hypothesis-testing research’, where as a research in
which the independent variable is no manipulated is termed as ‘non-
experimental hypothesis-testing research’. E.g., assume that a
researcher wants to examine whether family income influences the
social attendance of a group of students, by calculating the coefficient
of correlation between the two variables. Such an example is known
as a non-experimental hypothesis-testing research, because the
independent variable family income is not manipulated. Again assume
that the researcher randomly selects 150 students from a group of
students who pay their school fees regularly and them classifies them
into two sub-groups by randomly including 75 n Group A, whose
parents have regular earning, and 75 in group B, whose parents do not
have regular earning. And that at the end of the study, the researcher
conducts a test on each group in order to examine the effects of
regular earnings of the parents on the school attendance of the
student. Such a study is an example of experimental hypothesis-
testing research, because in this particular study the independent
variable regular earnings of the parents have been manipulated.
7. Experimental and control groups: When a group is exposed to
usual conditions in an experimental hypothesis-testing research, it is
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known as ‘control group’. On the other hand, when the group is
exposed to certain new or special condition, it is known as an
‘experimental group’. In the afore-mentioned example, the Group A
can be called a control group and the Group B an experimental group.
If both the groups A and B are exposed to some special feature, then
both the groups may be called as ‘experimental groups’. A research
design may include only the experimental group or the both
experimental and control groups together.
8. Treatments: Treatments are referred to the different conditions to
which the experimental and control groups are subject to. In the
example considered, the two treatments are the parents with regular
earnings and those with no regular earnings. Likewise, if a research
study attempts to examine through an experiment the comparative
impacts of three different types of fertilizers on the yield of rice crop,
then the three types of fertilizers would be treated as the three
treatments.
9. Experiment: An experiment refers to the process of verifying the truth
of a statistical hypothesis relating to a given research problem. For
instance, experiment may be conducted to examine the yield of a
certain new variety of rice crop developed. Further, Experiments may
be categorized into two types namely, absolute experiment and
comparative experiment. If a researcher wishes to determine the
impact of a chemical fertilizer on the yield of a particular variety of rice
crop, then it is known as absolute experiment. Meanwhile, if the
researcher wishes to determine the impact of chemical fertilizer as
compared to the impact of bio-fertilizer, then the experiment is known
as a comparative experiment.
10. Experiment unit: Experimental units refer to the predetermined plots,
characteristics or the blocks, to which the different treatments are
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applied. It is worth mentioning here that such experimental units must
be selected with great caution.
2.3.4 Types of Research Designs
There are a number of crucial research choices and various writers advance
different classification schemes, some of which are:
1. Experimental, historical and inferential designs (American Marketing
Association).
2. Exploratory, descriptive and causal designs (Selltiz, Jahoda, Deutsch
and Cook).
3. Experimental, and expost facto (Kerlinger)
4. Historical method, and case and clinical studies (Goode and scates)
5. Sample surveys, field studies, experiments in field settings, and
laboratory experiments (Festinger and Katz)
6. Exploratory, descriptive and experimental studies (Body and Westfall)
7. Exploratory, descriptive and casual (Green and Tull)
8. Experimental, ‘quasi-experimental designs’ (Nachmias and Nachmias)
9. True experimental, quasi-experimental and non-experimental designs
(Smith).
10. Experimental, pre-experimental, quasi-experimental designs and
Survey Research (Kidder and Judd).
These different categorizations exist, because ‘research design’ is a
complex concept. In fact, there are different perspectives from which any
given study can be viewed. They are:
1) The degree of formulation of the problem (the study may be
exploratory or formalized)
2) The topical scope-breadth and depth-of the study (a case or a
statistical study)
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3) The research environment: field setting or laboratory (survey,
laboratory experiment)
4) The time dimension (one-time or longitudinal)
5) The mode of data collection (observational or survey)
6) The manipulation of the variables under study (experimental or expost
facto)
7) The nature of the relationship among variables (descriptive or causal)
1. Research design in case of exploratory research studies:
Exploratory research studies are also termed as formulative research
studies. The main purpose of such studies is that of formulating a
problem for more precise investigation or of developing the working
hypotheses from an operational point of view. The major emphasis in
such studies is on the discovery of ideas and insights. As such, the
research design appropriate for such studies must be flexible enough to
provide opportunity for considering different aspects of a problem under
study. Inbuilt flexibility in research design is needed because the
research problem, broadly defined initially, is transformed into one with
more precise meaning in exploratory studies, which in fact may
necessitate changes in the research procedure for gathering relevant
data. Generally, the following three methods in the context of research
design for such studies are talked about:
a. The survey of concerning literature happens to be the most
simple and fruitful method of formulating precisely the research
problem or developing hypotheses. Hypotheses stated by earlier
workers may be reviewed and their usefulness be evaluated as a
basis for further research. It may also be considered whether the
already stated hypotheses suggest new hypotheses. In this way, the
researcher should review and build upon the work already done by
others, but in cases where hypotheses have not yet been
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formulated, his task is to review the available material for deriving
the relevant hypotheses from it.
b. Besides, the bibliographical survey of studies, already made in
one’s area of interest may as well as made by the researcher for
precisely formulating the problem. He should also make an attempt
to apply concepts and theories developed in different research
contexts to the area in which he himself is working. Sometimes, the
works of creative writers also provide a fertile ground for hypotheses
formulation as such may be looked into by the researcher.
c. Experience survey means the survey of people who have had
practical experience with the problem to be studied. The object of
such a survey is to obtain insight into the relationships between
variables and new ideas relating to the research problem. For such a
survey, people who are competent and can contribute new ideas
may be carefully selected as respondents to ensure a representation
of different types of experience. The respondents so selected may
then be interviewed by the investigator. The researcher must
prepare an interview schedule for the systematic questioning of
informants. But, the interview must ensure flexibility in the sense that
the respondents should be allowed to raise issues and questions
which the investigator has not previously considered. Generally, the
experience collecting interview is likely to be long and may last for
few hours. Hence, it is often considered desirable to send a copy of
the questions to be discussed to the respondents well in advance.
This will also give an opportunity to the respondents for doing some
advance thinking over the various issues involved, so that, at the
time of interview, they may be able to contribute effectively. Thus, an
experience survey may enable the researcher to define the problem
more concisely and help in the formulation of the research
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hypotheses. This survey may as well provide information about the
practical possibilities for doing different types of research.
d. Analysis of ‘insight-stimulating’ examples is also a fruitful method
for suggesting hypotheses for research. It is particularly suitable in
areas where there is little experience to serve as a guide. This
method consists of the intensive study of selected instance of the
phenomenon in which one is interested. For this purpose the existing
records may be examined, the unstructured interviewing may take
place, or some other approach may be adopted. Attitude of the
investigator, the intensity of the study and the ability of the
researcher to draw together diverse information into a unified
interpretation are the main features which make this method an
appropriate procedure for evoking insights.
Now, what sorts of examples are to be selected and studied? There
is no clear cut answer to it. Experience indicates that for particular
problems certain types of instances are more appropriate than
others. One can mention few examples of ‘insight-stimulating’ cases
such as the reactions of strangers, the reactions of marginal
individuals, the study of individuals who are in transition from one
stage to another, the reactions of individuals from different social
strata and the like. In general, cases that provide sharp contrasts or
have striking features are considered relatively more useful while
adopting this method of hypotheses formulation.
Thus, in an exploratory or formulative research study, which merely
leads to insights or hypotheses, whatever method or research design
outlined above is adopted, the only thing essential is that it must
continue to remain flexible so that many different facets of a problem
may be considered as and when they arise and come to the notice of
the researcher.
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2. Research design in case of descriptive and diagnostic research
studies: Descriptive research studies are those studies which are
concerned with describing the characteristics of a particular individual, or
of a group, where as diagnostic research studies determine the
frequency with which something occurs or its association with something
else. The studies concerning whether certain variables are associated
are the example of diagnostic research studies. As against this, studies
concerned with specific predictions, with narration of facts and
characteristics concerning individual, group of situation are all examples
of descriptive research studies. Most of the social research comes under
this category. From the point of view of the research design, the
descriptive as well as diagnostic studies share common requirements
and as such we may group together these two types of research studies.
In descriptive as well as in diagnostic studies, the researcher must be
able to define clearly, what he wants to measure and must find adequate
methods for measuring it along with a clear cut definition of population
he wants to study. Since the aim is to obtain complete and accurate
information in the said studies, the procedure to be used must be
carefully planned. The research design must make enough provision for
protection against bias and must maximize reliability. With due concern
for the economical completion of the research study. The design in such
studies must be rigid and not flexible and must focus attention on the
following:
Formulating the objective of the study
Designing the methods of data collection
Selecting the sample
Collecting the data
Processing and analyzing the data
Reporting the findings.
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In a descriptive/diagnostic study, the first step is to specify the objectives
with sufficient precision to ensure that the data collected are relevant. If
this is not done carefully, the study may not provide the desired
information. Then crops up the question of selecting the methods by
which the data are to be obtained. While designing data-collection
procedure, adequate safeguards against bias and unreliability must be
ensured. Which ever method is selected, questions must be well
examined and be made unambiguous; interviewers must be instructed
not to express their own opinion; observers must be trained so that they
uniformly record a given item of behaviour.
More often than not, sample has to be designed. Usually, one or more
forms of probability sampling or what is often described as random
sampling are used. To obtain data free from errors introduced by those
responsible for collecting them, it is necessary to supervise closely the
staff of field workers as they collect and record information. Checks may
be set up to ensure that the data collecting staffs perform their duty
honestly and without prejudice. The data collected must be processed
and analyzed. This includes steps like coding the interview replies,
observations, etc., tabulating the data; and performing several statistical
computations.
Last of all is the question of reporting the findings. This is the task of
communicating the findings to others and the researcher must do it in an
efficient manner.
3. Research design in case of hypothesis-testing research studies:
Hypotheses-testing research studies (generally known as experimental
studies) are those where the researcher tests the hypotheses of causal
relationships between variables. Such studies require procedures that
will not only reduce bias and increase reliability, but will permit drawing
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inferences about causality. Usually experiments meet this requirement.
Hence, when we talk of research design in such studies, we often mean
the design of experiments.
2.3.5 Principles of Experimental Designs
Professor Fisher has enumerated three principles of experimental designs:
1) The principle of replication: The experiment should be repeated. Thus,
each treatment is applied in many experimental units instead of one.
By doing so the statistical accuracy of the experiments is increased.
For example, suppose we are to examine the effect of two varieties of
rice. For this purpose we may divide the field into two parts and grow
one variety in one part and the other variety in the other part. We can
compare the yield of the two parts and draw conclusion on that basis.
But if we are to apply the principle of replication to this experiment,
then we first divide the field into several parts, grow one variety in half
of these parts and the other variety in the remaining parts. We can
collect the data yield of the two varieties and draw conclusion by
comparing the same. The result so obtained will be more reliable in
comparison to the conclusion we draw without applying the principle of
replication. The entire experiment can even be repeated several times
for better results. Consequently replication does not present any
difficulty, but computationally it does. However, it should be
remembered that replication is introduced in order to increase the
precision of a study; that is to say, to increase the accuracy with which
the main effects and interactions can be estimated.
2) The principle of randomization: It provides protection, when we
conduct an experiment, against the effect of extraneous factors by
randomization. In other words, this principle indicates that we should
design or plan the experiment in such a way that the variations caused
by extraneous factors can all be combined under the general heading
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of “chance”. For instance, if we grow one variety of rice, say, in the first
half of the field and the other variety is grown in the other half, then it is
just possible that the soil fertility may be different in the first half in
comparison to the other half. If this is so, our results would not be
realistic. In such a situation, we may assign the variety of rice to be
grown in different parts of the field on the basis of some random
sampling technique i.e., we may apply randomization principle and
protect ourselves against the effects of extraneous factors. As such,
through the application of the principle of randomization, we can have
a better estimate of the experimental error.
3) Principle of local control: It is another important principle of
experimental designs. Under it, the extraneous factors, the known
source of variability, is made to vary deliberately over as wide a range
as necessary and this needs to be done in such a way that the
variability it causes can be measured and hence eliminated from the
experimental error. This means that we should plan the experiment in
a manner that we can perform a two-way analysis of variance, in which
the total variability of the data is divided into three components
attributed to treatments, the extraneous factor and experimental error.
In other words, according to the principle of local control, we first divide
the field into several homogeneous parts, known as blocks, and then
each such block is divided into parts equal to the number of
treatments. Then, the treatments are randomly assigned to these parts
of a block. In general, blocks are the levels at which we hold an
extraneous factors fixed, so that we can measure its contribution to the
variability of the data by means of a two-way analysis of variance. In
brief, through the principle of local control we can eliminate the
variability due to extraneous factors from the experimental error.
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2.3.6 Important Experimental Designs:
Experimental design refers to the framework or structure of an experiment
and as such there are several experimental designs. We can classify
experimental designs into two broad categories, viz., informal experimental
designs and formal experimental designs. Informal experimental designs are
those designs that normally use a less sophisticated form of analysis based
on differences in magnitudes, whereas formal experimental designs offer
relatively more control and use precise statistical procedures for analysis.
Informal experimental designs:
1. Before and after without control design: In such a design, single test
group or area is selected and the dependent variable is measured
before the introduction of the treatment. The treatment is then
introduced and the dependent variable is measured again after the
treatment has been introduced. The effect of the treatment would be
equal to the level of the phenomenon after the treatment minus the level
of the phenomenon before the treatment.
2. After only with control design: In this design two groups or areas (test
and control area) are selected and the treatment is introduced into the
test area only. The dependent variable is then measured in both the
areas at the same time. Treatment impact is assessed by subtracting the
value of the dependent variable in the control area from its value in the
test area.
3. Before and after with control design: In this design two areas are
selected and the dependent variable is measured in both the area for an
identical time-period before the treatment. The treatment is then
introduced into the test area only, and the dependent variable is
measured in both for an identical time-period after the introduction of the
treatment. The treatment effect is determined by subtracting the change
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in the dependent variable in the control area from the change in the
dependent variable in test area.
2.3.7 Formal Experimental Designs
Completely randomized design (CR design): It involves only two
principles viz., the principle of replication and randomization. It is
generally used when experimental areas happen to be homogenous.
Technically, when all the variations due to uncontrolled extraneous
factors are included under the heading of chance variation, we refer to
the design of experiment as CR Design.
Randomized block design (RB design): It is an improvement over the CR
design. In the RB design the principle of local control can be applied
along with the other two principles.
Latin square design (LS design): It is used in agricultural research. The
treatments in a LS design are so allocated among the plots that no
treatment occurs more than once in any one row or column.
Factorial design: It is used in experiments where the effects of varying
more than one factor are to be determined. They are especially
important in several economic and social phenomena where usually a
large number of factors affect a particular problem.
2.4 Potential Errors affecting research design
The usefulness of a research project depends on the overall quality of the
research design and on the data collected and analysed based on the
design. Several potential sources of error can affect the quality of a research
process. The errors can influence the various stages of the research
process and result in inaccurate or useless research findings.
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2.4.1 Sampling Error
Sampling error is the difference between a measure obtained from a sample
representing the population and the true measure that can be obtained only
from the entire population. This error occurs because no sample is a perfect
representation of a given population, unless the sample size equals the
population.
2.4.2 Non-Sampling Error
Non-sampling error includes all other errors associated with a research
project. There may be several different reasons for these errors, which can
be broadly classified into four groups: i) Design errors ii) Administering
errors iii) Response errors and iv) Non-response errors.
2.4.3 Design Error
Design errors, also called researcher-induced errors, are mainly due to
flaws in the research design. There are several different types of design
errors.
2.4.4 Selection Errors
Selection error occurs when a sample obtained through a non-probability
sampling method is not representative of population. For example, if a mail
interviewer interested in shopping habits of the visitors to the mall avoids
interviewing people with children, he or she is inducing a selection error into
the research study.
2.4.5 Population Specific Errors
Population specific error occurs when an inappropriate population is chosen
to obtain data for the research study. For example, if the objective of the
study is to determine what brands of dog food people buy for their pets, and
research draws a sample from a population that consists predominantly of
cat owners, a population specification error is induced into the study.
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2.4.6 Sampling Frame Errors
A sampling frame is directory of population members from which a sample is
selected. A sampling frame error occurs when the sample is drawn from an
inaccurate sampling frame.
2.4.7 Surrogate Information Errors
Surrogate information error is the difference or variation between the
information required for a marketing research study and the information
being sought by the researcher.
2.4.8 Measurement Errors
Measurement error is the difference between the information sought by a
researcher for a study and the information generated by a particular
measurement procedure employed by the researcher. Measurement error
can occur at any state of the measurement process, from the development
of an instrument to the data analysis and interpretation stage.
2.4.9 Experimental Errors
An experiment is designed to determine the existence of any causal
relationship between two variables. Any error caused by the improper
design of the experiment induces an experimental error into the study.
2.4.10 Data Analysis Errors
Data analysis error can occur when data from the questionnaire are coded,
edited, analyzed or interpreted. For example, incorrect coding of data or a
wrong use of a statistical analysis procedure can induce a data analysis
error into the study.
2.4.11 Administering Errors
All errors that occur during administration of a survey instrument to the
respondents are classified as administering errors. They are caused by
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mistakes committed by the person administering the questionnaire. They
may be caused by various factors.
2.4.12 Questioning Errors
This error arises while addressing questions to the respondents. If the
interviewer does not word the question exactly as designed by the
researcher, a questioning error is induced.
2.4.13 Recording Error
This error arises from improperly recording the respondent’s answer. If the
interviewer misinterprets the response or hears it inaccurately, this induces
a recording error into the study.
2.4.14 Interference Error
This error occurs when an interviewer interferes with or fails to follow the
exact procedure while collecting data. For example, if the interviewer
fabricates the responses to a survey, it induces an inference error.
2.4.15 Response Errors
Response errors also called data errors which occur when the respondent –
intentionally or unintentionally – provides inaccurate answers to the survey
questions. This might be due top the respondent’s failing to comprehend the
questions or it may be due to fatigue, boredom, or misinterpretation of the
question.
2.4.16 Non-Response Errors
Non-response errors occur if (i) some members of a sample were not
contacted, and hence their responses were not included in the study; or ii)
some of the members contacted provide an incomplete or no response to
the survey instrument. The primary reason for this error occurring include
the unwillingness of respondents to participate in the study and the inability
of the interviewer to contact the respondents.
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Self Assessment Questions
State whether the following statements are true or false:
1. The research process consists of stages or steps that guide the project
form its conception through the final analysis, recommendation, and
ultimate action.
2. Research studies evolve through a series of steps, each representing
the answer to a key question.
3. Selection error occurs when a sample obtained through a non-
probability sampling method is not representative of population.
4. Population specific error occurs when an inappropriate population is
chosen from which to obtain data for the research study.
5. A sampling frame is directory of population members from which a
sample is selected.
2.5 Summary
The research process consists of stages or steps that guide the project from
its conception through the final analysis, recommendation, and ultimate
action. Research studies evolve through a series of steps, each
representing the answer to a key question. The research objective is a
statement, in as precise terminology as possible, of what information is
needed. The research objective should be framed so that, obtaining the
information will ensure that the research purpose is satisfied. Before a
research approach can be selected, it is necessary to have an estimate of
the value of information that is, the value of obtaining answers to the
research questions. Such an estimate will help determine how much, if
anything, should be spent on the research.
A research design is a logical and systematic plan prepared for directing a
research study.
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In many a research inquiry, the researcher has no idea as to how accurate
the results of his study ought to be in order to be useful. It is important to be
familiar with the important concepts relating to research design. There are
number of crucial research choices, various writers advance different
classification schemes.
Experimental design refers to the framework or structure of an experiment
and as such there are several experimental designs. The usefulness of a
research project depends on the overall quality of the research design and
on the data collected and analysed based on the design.
Sampling error is the difference between a measure obtained from a sample
representing the population and the true measure that can be obtained only
from the entire population. Non-sampling error includes all other errors
associated with a research project. There may be several deferent reasons
for these errors, which can be broadly classified into four groups: i) Design
errors ii) Administering errors iii) Response errors and iv) Non-response
errors.
2.6 Terminal Questions
1. Explain the nature of Research Process
2. What are the steps in Marketing Research Design Process?
3. What is meant by Research Design?
4. What is the need of Research Design?
5. What the potential errors affecting research design?
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2.7 Answers to SAQs and TQs
SAQs
1. True
2. True
3. True
4. True
5. True
TQs
1. Section 2.1
2. Section 2.2.
3. Section 2. 5
4. Section 2.2.2
5. Section 2.6
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Unit 3 Sources of Research Data
Structure
3.1 Introduction: Meaning of Data
Objectives
3.2 Types of Data
3.3 Importance of Data
3.4 Sources of Data
3.4.1 Primary Sources of Data
3.4.2 Secondary Sources of Data
3.4.3 Features of Secondary Sources
3.5 Uses of Secondary Data
3.6 Advantages of Secondary Data
3.7 Disadvantages of Secondary Data
3.8 Evaluation of Secondary Data
3.8.1 Data Pertinence
3.8.2 Data Quality
3.9 Commercial Surveys, Audits and Panels
3.9.1 Personal Interview
3.9.2 Advantages of Personal Interview
3.9.3 Limitations of Personal Interview
3.9.4 Characteristics of Personal Interview
3.9.5 Telephone Interviewing
3.9.6 Advantages of Telephone Interviews
3.9.7 Disadvantages of Telephone Interviews
3.9.8 Group Interview
3.9.9 Advantages of Group Interview
3.9.10 Disadvantages of Group Interview
3.9.11 Mail Survey
3.9.12 Procedures of Mail Survey
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3.9.13 Alternative Mode of Sending Questionnaire
3.9.14 Improving Response Rate in Mail Survey
3.9.15 Advantages of Mail Survey
3.9.16 Disadvantages of Mail Survey
3.9.17 Panel Method
3.9.18 Characteristics of Panel Method
3.9.19 Needs of Panel
3.9.20 Types of Panel
3.9.21 Advantages of Panel
3.9.22 Disadvantages of Panel Study
3.10 Survey Research
3.10.1 Steps Involved in Survey
3.11 Experimentation and Experiment Environment
3.11.1 Planning and Conducting Experiments
3.11.2 Advantages of Experiments
3.11.3 Disadvantages of Experiments
3.11.4 Laboratory Experiments
3.11.5 Field Experiments
3.11.6 Advantages of Field Experiments
3.11.7 Limitations of Field Experiments
Self Assessment Questions
3.12 Summary
3.13 Terminal Questions
3.14 Answers to SAQs and TQs
3.1 Introduction: Meaning of Data
The search for answers to research questions is called collection of data.
Data are facts, and other relevant materials, past and present, serving as
bases for study and analyses. Some examples of data are:
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The types of loans secured by borrowers (for a credit survey)
The items if raw materials required for a product line (Materials
management)
The quantity of each material required for a unit of output.
The sex, age, social class, religion, income level of respondents in a
consumer behaviour study.
The opinions of eligible couples on birth control devices (Family
Planning survey)
The capital expenditure proposals considered by a firm during a year
(Financial Management)
The marks obtained by students of a class in a test on a particulars
subject (performances of students)
The opinions of people on voting in a general election (Opinion poll)
The types of news read by newspaper readers (Readership survey)
The aspirations of management trainees (The emerging Managers in
Indian Enterprises)
The types and frequency of breakdowns occurred in particular brand of
scooter (post purchases Behaviour survey) and so on.
Objectives:
After studying this unit, the students should be able to:
understand the Types of data
discuss the importance of Data
explain the sources of data
explain Commercial surveys, audits and panels
explain Personal Interview, telephone interview, group interview etc
explain Advantages and limitations of the different types of interviews
discuss the Mail survey and procedure of mail survey
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explain Panel method, its characteristics, types, advantages and
disadvantages of panel method
explain Survey research, steps involved in survey
discuss experimentation and experiment environment, planning and
conducting experiments, advantages and disadvantages of experiments
discuss the Laboratory experiments, Field experiments, advantages and
disadvantages of the same
3.2 Types of Data
The data needed for a social science research may be broadly classified
into
a) Data pertaining to human beings,
b) Data relating to organization and
c) Data pertaining to territorial areas.
Personal data or data related to human beings consists of:
1. Demographic and socio-economic characteristics of individuals: Age,
sex, race, social class, religion, martial status, education, occupation
income, family size, location of the household life style etc.