Question Bank

Questions carrying 3 marks: You should know the explanation of all terms used in the subject for example: (This is only an indicative list and not an exhaustive list 1. Nominal Scale:! discrete classification of data" in which data are neither measured nor ordered but subjects are merely allocated to distinct categories For example" a record of students# course choices constitutes nominal data which could be correlated with school results$ 2. Interval Scale ! scale of measurement of data according to which the differences between values can be %uantified in absolute but not relative terms and for which any &ero is merely arbitrary: for instance" dates are measured on an interval scale since differences can be measured in years" but no sense can be given to a ratio of times$ 3. Ratio Scale ! scale of measurement of data which permits the comparison of differences of values' a scale having a fixed &ero value$ The distances travelled by a projectile" for instance" are measured on a ratio scale since it makes sense to talk of one projectile travelling twice as far as another$ 4. In epen ent !aria"le !n independent variable is the variable that is changed in a scientific experiment$ (ndependent variables are the variables that the experimenter changes to test their dependent variable$ #xamples: ! scientist is testing the effect of light and dark on the behavior of moths by turning a light on and off$ The independent variable is the amount of light and the moth#s reaction is the dependent variable$ ! change in the independent variable directly causes a change in the dependent variable$

$. %epen ent !aria"le The dependent variable is the variable that is being measured in an experiment$ For example" in a study on the effects of tutoring on test scores" the dependent variable would be the participants test scores$ (n a psychology experiment" researchers are looking at how changes in the independent variable cause changes in the dependent variable$

&. Response !aria"le (n a statistical model you have two kinds of variable$ )esponse variables are the *outputs+ of your model$ ,xplanatory variables" on the other hand" are the *inputs+ of your model$ )esponse variables are dependent on the explanatory variables$ ,xplanatory variables are independent of the response variables$ (mage you were trying to formulate a statistical model of your car-s fuel economy$ The *output+ of your model is miles per gallon$ That-s your response variable$ *(nputs+ into your model might be engine capacity" number of cylinders" trye pressure" etc$ These are your explanatory variables$ That is" fuel economy may be" or is" (to be determined by the modeling dependent on engine capacity and.or number of cylinders and.or trye pressure" etc$ '. (pen-en e Question !n open ended %uestion is a %uestion that cannot be answered with a simple yes or no" or with only one or two words" where the person answering the %uestion has to answer it in his" or her own words$ /any open ended %uestions begin with how" what" when" where" why etc" or ask for an opinion$ ! fantastic example is this %uestion$ (t is impossible to answer with a simple yes" or no$ (pen-en e )uestions should begin with words such as 0why0 and 0how0 or phrases such as 01hat do you think about $ $ $0 2pen3ended %uestions should lead student to think analytically and critically$ 4ltimately" a good open3ended %uestion should stir discussion and debate in the classroom sparking enthusiasm and energy in your students$

*. +lose-en e Question ! close -en e )uestion is a %uestion format that limits respondents with a list of answer choices from which they must choose to answer the %uestion$ 5ommonly these type of %uestions are in the form of multiple choices" either with one answer or with check3all3that3apply" but also can be in scale format" where respondent should decide to rate the situation in along the scale continuum" similar to 6ikert %uestions$ ,. -ilot .est ! pilot test is a method that is used to test the design and.or methods and.or instrument before carrying out the research$ (t involves conducting an initial test of data collection instruments and processes to spot and eradicate errors$

1/. 0ikert Scale 4sed mainly in training course evaluations and market surveys" 6ikert scales usually have five potential choices (strongly agree" agree" neutral" disagree" strongly disagree but sometimes go up to ten or more$ The final average score represents overall level of accomplishment or attitude toward the subject matter$ 7amed after its inventor" the 48 organi&ational3behavior psychologist 9r$ )ensis 6ikert (:;<33=: $ 11. Box -lot ! box plot is a graphical rendition of statistical data based on the minimum" first %uartile" median" third %uartile" and maximum$ The term 0box plot0 comes from the fact that the graph looks like a rectangle with lines extending from the top and bottom$ >ecause of the extending lines" this type of graph is sometimes called a box3and3whisker plot$

12. 1alo #22ect The halo effect is a type of cognitive bias in which our overall impression of a person influences how we feel and think about his or her character$ ,ssentially" your overall impression of a person (0?e is nice@0 impacts your evaluations of that person#s specific traits (0?e is also smart@0 $ 2ne great example of the halo effect in action is our overall impression of celebrities$ 8ince we perceive them as attractive" successful" and often likeable" we also tend to see them as intelligent" kind" and funny$

13. Qualitative Researc3 Qualitative research is designed to reveal a target audience-s range of behavior and the perceptions that drive it with reference to specific topics or issues$ (t uses in3depth studies of small groups of people to guide and support the construction of hypotheses$ The results of %ualitative research are descriptive rather than predictive$ Qualitative research methods originated in the social and behavioral sciences: sociology" anthropology and psychology$ Today" %ualitative methods in the field of marketing research include in3depth interviews with individuals" group discussions (from two to ten participants is typical ' diary and journal exercises' and in3context observations$ 8essions may be conducted in person" by telephone" via videoconferencing and via the (nternet$

14. Quantitative Researc3 Quantitative research A including surveys and customer %uestionnaires A can help small firms to improve their products and services by enabling them to make informed decisions

Quantitative research is about asking people for their opinions in a structured way so that you can produce hard facts and statistics to guide you$ To get reliable statistical results" it-s important to survey people in fairly large numbers and to make sure they are a representative sample of your target market$

Questions carr4in5 ' marks:

:$ ,xplain the difference between Qualitative and Quantitative research$

Qualitative Methods Methods include focus groups, in-depth interviews, and reviews of documents for types of themes Primarily inductive process used to formulate theory or hypotheses More subjective: describes a problem or condition from the point of view of those e periencing it #e t-based More in-depth information on a few cases &nstructured or semi-structured response options $o statistical tests (an be valid and reliable: largely depends on skill and rigor of the researcher #ime e penditure lighter on the planning end and heavier during the analysis phase %ess generali)able Quantitative Methods Surveys, structured interviews & observations, and reviews of records or documents for numeric information Primarily deductive process used to test pre-specified concepts, constructs, and hypotheses that make up a theory More objective: provides observed effects !interpreted by researchers" of a program on a problem or condition $umber-based %ess in-depth but more breadth of information across a large number of cases 'i ed response options Statistical tests are used for analysis (an be valid and reliable: largely depends on the measurement device or instrument used #ime e penditure heavier on the planning phase and lighter on the analysis phase More generali)able

B$ ,xplain different types of /easurement 8cales$ .4pes o2 %ata 6 7easurement Scales: Nominal8 (r inal8 Interval an Ratio There are four measurement scales (or types of data : nominal" ordinal" interval and ratio$ These are simply ways to categori&e different types of variables$ This topic is usually discussed in the context of academic teaching and less often in the *real world$+ (f you are brushing up on this concept for a statistics test" thank a psychologist researcher named 8tanley 8tevens for coming up with these terms$ example" as you-ll see below$ These four measurement scales (nominal" ordinal" interval" and ratio are best understood with

Nominal 6et-s start with the easiest one to understand$ 7ominal scales are used for labeling variables" without any%uantitative value$ +7ominal+ scales could simply be called *labels$+ ?ere are some examples" below$ 7otice that all of these scales are mutually exclusive (no overlap and none of them have any numerical significance$ ! good way to remember all of this is that *nominal+ sounds a lot like *name+ and nominal scales are kind of like *names+ or labels$

,xamples of 7ominal 8cales

Note: a sub3type of nominal scale with only two categories (e$g$ male.female is called * ic3otomous$+ (f you are a student" you can use that to impress your teacher$ 5ontinue reading about types of data and measurement scales: nominal" ordinal" interval" and ratioC

(r inal 1ith ordinal scales" it is the order of the values is what-s important and significant" but the differences between each one is not really known$ Take a look at the example below$ (n each case" we know that a DE is better than a D3 or DB" but we don-t knowFand cannot %uantifyFhow much better it is$ Gor example" is the difference between *2H+ and *4nhappy+ the same as the difference between *Iery ?appy+ and *?appyJ+ 1e can-t say$ 2rdinal scales are typically measures of non3numeric concepts like satisfaction" happiness" discomfort" etc$ *2rdinal+ is easy to remember because is sounds like *order+ and that-s the key to remember with *ordinal scales+Fit is the order that matters" but that-s all you really get from these$ !dvanced note: The best way to determine central tendency on a set of ordinal data is to use the mode or median' the mean cannot be defined from an ordinal set$

,xample of 2rdinal 8cales

Interval (nterval scales are numeric scales in which we know not only the order" but also the exact differences between the values$ The classic example of an interval scale is 5elsius temperature because the difference between each value is the same$ Gor example" the difference between K< and L< degrees is a measurable :< degrees" as is the difference between =< and M< degrees$ Time is another good example of an interval scale in which the increments are known" consistent" and measurable$ (nterval scales are nice because the realm of statistical analysis on these datasets opens up$ Gor example" central tendency can be measured by mode" median" or mean' standard deviation can also be calculated$ 6ike the others" you can remember the key points of an *interval scale+ pretty easily$ +(nterval+ itself means *space in between"+ which is the important thing to rememberF interval scales not only tell us about order" but also about the value between each item$ ?ere-s the problem with interval scales: they don-t have a *true &ero$+ Gor example" there is no such thing as *no temperature$+ 1ithout a true &ero" it is impossible to compute ratios$ 1ith interval data" we can add and subtract" but cannot multiply or divide$ 5onfusedJ 2k" consider this: :< degrees N :< degrees O B< degrees$ 7o problem there$ B< degrees is not twice as hot as :< degrees" however" because there is no such thing as *no temperature+ when it comes to the 5elsius scale$ ( hope that makes sense$ >ottom line" interval scales are great" but we cannot calculate ratios" which brings us to our last measurement scaleC

,xample of (nterval 8cale

Ratio )atio scales are the ultimate nirvana when it comes to measurement scales because they tell us about the order" they tell us the exact value between units" !79 they also have an absolute &eroFwhich allows for a wide range of both descriptive and inferential statistics to be applied$ !t the risk of repeating myself" everything above about interval data applies to ratio scales N ratio scales have a clear definition of &ero$ Pood examples of ratio variables include height and weight$ )atio scales provide a wealth of possibilities when it comes to statistical analysis$ These variables can be meaningfully added" subtracted" multiplied" divided (ratios $ 5entral tendency can be measured by mode" median" or mean' measures of dispersion" such as standard deviation and coefficient of variation can also be calculated from ratio scales$ !ds by Iideo Qlayer!d 2ptions

This 9evice Qrovides Two ,xamples of )atio 8cales (height and weight

3$ ,xplain with example conversion of a management %uestion to a research %uestion E$ ,xplain the advantages and disadvantages of primary and secondary data$

9%!9N.9:#S (F -RI79R; R#S#9R+1

.ar5ete Issues are a resse

The organi&ation asking for the research has the complete control on the process and the research is streamlines as far as its objectives and scope is concerned$ )esearching company can be asked to concentrate their efforts to find data regarding specific market rather than concentration on mass market$ %ata interpretation is "etter The collected data can be examined and interpreted by the marketers depending on their needs rather than relying on the interpretation made by collectors of secondary data$ #22icient Spen in5 2or In2ormation 4nlike secondary research where the marketer may spend for information that is not needed" primary data collections- focus on issues specific to the researcher improves the chances that research funds will be spent efficiently$ %ecenc4 o2 %ata 4sually secondary data is not so recent and it may not be specific to the place or situation marketer is targeting$ The researcher can use the irrelevant seeming information for knowing trends or may be able to find some relation with the current scenario$ Thus primary data becomes a more accurate tool since we can use data which is useful for us$ -roprietar4 Issues (nformation collected by using primary research is their own and is generally not shared with others$ Thus" information can be kept hidden from competitors and potentially offer an *information advantage+ to the company that undertook the primary research$ This gives an edge over competitors replying on secondary data$

resses Speci2ic Researc3 Issues

5arrying out their own research allows the marketing organi&ation to address issues specific to their own situation$ Qrimary research is designed to collect the information the marketer wants to know (8tep B and report it in ways that benefit the marketer$ Gor example" while information reported with secondary research may not fit the marketer-s needs (e$g$" different age groupings no such problem exists with primary research since the marketer controls the research design$ :reater +ontrol 7ot only does primary research enable the marketer to focus on specific issues" it also enables the marketer to have a higher level of control over how the information is collected$ (n this way the marketer can decide on such issues as si&e of project (e$g$" how many responses " location of research (e$g$" geographic area and time frame for completing the project$

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1i53 +ost 5ompared to secondary research" primary data may be very expensive since there is a great deal of marketer involvement and the expense in preparing and carrying out research can be high and has to design everything$ .ime +onsumin5 To be done correctly primary data collection re%uires the development and execution of a research plan$ Poing from the start3point of deciding to undertake a research project to the end3point to having results is often much longer than the time it takes to ac%uire secondary data" which can be collected in much lesser time duration$

Inaccurate Fee -"acks (n case the research involves taking feedbacks from the targeted audience" there are high chances that feedback given is not correct$ Geedbacks by their basic nature are usually biased or given just for the sake of it$ 7ore num"er o2 resources is re)uire 6eaving aside cost and time" other resources like human resources and materials too are needed in larger %uantity to do surveys and data collection$

9%!9N.9:#S (F S#+(N%9R; %9.9

#ase o2 9ccess There are many advantages to using secondary research$ This includes the relative ease of access to many sources of secondary data$ (n the past secondary data accumulation re%uired marketers to visit libraries" or wait for reports to be shipped by mail$ 7ow with the availability of online access" secondary research is more openly accessed$ This offers convenience and generally standardi&ed usage methods for all sources of secondary research$ 0o< +ost to 9c)uire The use of secondary data has allowed researchers access to valuable information for little or no cost to ac%uire$ Therefore" this information is much less expensive than if the researchers had to carry out the research themselves$

+lari2ication o2 Researc3 Question The use of secondary research may help the researcher to clarify the research %uestion$ 8econdary research is often used prior to primary research to help clarify the research focus$ 7a4 9ns<er Researc3 Question The use of secondary data collection is often used to help align the focus of large scale primary research$ 1hen focusing on secondary research" the researcher may reali&e that

the exact information they were looking to uncover is already available through secondary sources$ This would effectively eliminate the need and expense to carry out their own primary research$ 7a4 S3o< %i22iculties in +on uctin5 -rimar4 Researc3 (n many cases" the originators of secondary research include details of how the information was collected$ This may include information detailing the procedures used in data collection and difficulties encountered in conducting the primary research$ Therefore" the detailed difficulties may persuade the researcher to decide that the potential information obtained is not worth the potential difficulties in conducting the research$

%IS9%!9N.9:#S (F S#+(N%9R; %9.9

Qualit4 o2 Researc3 There are some disadvantages to using secondary research$ The originators of the primary research are largely self3governed and controlled by the marketer$ Therefore" the secondary research used must be scrutini&ed closely since the origins of the information may be %uestionable$ /oreover" the researcher needs to take sufficient steps to critically evaluate the validity and reliability of the information provided$ Not Speci2ic to Researc3er=s Nee s (n many cases" secondary data is not presented in a form that exactly meets the researcher-s needs$ Therefore" the researcher needs to rely on secondary data that is presented and classified in a way that is similar to their needs$ Incomplete In2ormation (n many cases" researchers find information that appears valuable and promising$ The researcher may not get the full version of the research to gain the full value of the study$ This is because many research suppliers offer free portions of their research and then charge expensive fees for their full reports$

Not .imel4 1hen using secondary research" one must exercise caution when using dated information from the past$ 1ith companies competing in fast changing industries" an out3of3date research reports many have little or no relevance to the current market situation$ $. #xplain t3e i22erence "et<een statistical an non-statistical samplin5 met3o s. 8tatistical sampling is an objective approach using probability to make an inference about the population$ The method will determine the sample si&e and the selection criteria of the sample$ The reliability or confidence level of this type of sampling relates to the number of times per :<< the sample will represent the larger population$ 7on3statistical sampling relies on judgment to determine the sampling method" the sample si&e" and the selection items in the sample$ &. #xplain t3e >Ran om samplin5? met3o usin5 ran om num"er ta"le. The simple random sample is the basic sampling method assumed in statistical methods and computations$ The main benefit of the simple random sample is that each member of the population has an e%ual chance of being chosen$ This means that it guarantees that the sample chosen is representative of the population$ (n turn" the statistical conclusions drawn from analysis of the sample will be valid$ 1hile the name #simple random sample# implies that it is simple" the mathematics of random sampling is actually very complex$ This article" however" will not discuss the details of the mathematics involved$ @sin5 9 Ran om Num"er .a"le /ost statistics books and many research methods books contain a table of random numbers as a part of the appendices$ ! random number table typically contains :<"<<< random digits between < and ; that are arranged in groups of L and displayed in rows$ (n the table" all digits are e%ually probable and the probability of any given digit is unaffected by the digits that precede it$

!fter numbering each member of the population : to 7" determining the population si&e and the sample si&e" the researcher selects a starting point on the random number table$ This is done by closing one-s eyes and pointing randomly on the page$ 1hichever number your finger is touching is the number you start with$ Then" you must choose a direction in which to read (up to down" left to right" or right to left $ 7ext" you select the first n numbers (however many numbers are in your sample whose last R digits are between < and 7$ Gor instance" if 7 is a 3 digit number" then R would be 3$ Qut another way" if your population contained 3L< people" you would use numbers from the table whose last 3 digits were between < and 3L<$ (f the number on the table was B3;LM" you would not use it because the last 3 digits (;LM is greater than 3L<$ You would skip this number and move to the next one$ (f the number is =E3<:" you would use it and you would select the person in the population who is assigned the number 3<:$ You continue this way through the table until you have selected your entire sample$

M$ 9escribe different methods of observation techni%ue =$ ,xplain the process of testing hypothesis using & test$ ;$ 9escribe typical layout of a research report

+onsumer Be3avior 7o els -art II - .3e 1o<ar S3et3 7o el The ?oward 8heth theory of buyer behavior is a sophisticated integration of the various social" psychological and marketing influences on consumer choice into a coherent se%uence of information processing$ (t aims not only to explain consumer behavior in terms of cognitive functioning but to provide an empirically testable depiction of such behavior and its outcomes (?oward :;MM $ 4tili&ing the learning theory thoroughly and systematically" Sohn ?oward came out with the first truly integrative model of buyer behavior$ ?e was the first to introduce the difference between problem solving behavior" limited problem solving and automatic response behavior$ The model is essentially an attempt to explain brand choice behavior over time and therefore specially pertinent to our field$ Gocusing on repeat buying" the model relies on four major components 3

stimulus inputs" hypothetical constructs" response outputs and exogenous variables$ This are the three levels of decision making: :$ Extensive problem solving 3 early stages of decision making in which the buyer has little information about brands and has not yet developed well defined and structured criteria by which to choose among products$ B$ Limited problem solving 3 this is a more advance stage" choice criteria are well defined but the buyer is still undecided about which set of brands will best serve him$ Thus the consumer still experiences uncertainty about which brand is best$
3.

Routinized response behaviour 3 buyers have well defined choice criteria and also have strong predispositions toward the brand$ 6ittle confusion exists in the consumer#s mind and he is ready to purchase a particular brand with little evaluation of alternatives$ The model then borrows from learning concepts to explain brand choice behavior over time as learning takes place and the buyer moves from exclusive to routini&ed problem solving behavior$ ?ere the four major components get involved$ The Input Variables The input variables consist of informational cues about the attributes of a product or brand (i$e$ %uality" price" distinctiveness" service and availability $ This informational cues may be significative if they influence the consumer directly through the brand#s attributes or symbolic if they derive from the same factors as they are portrayed in the mass media and by salespeople" influencing the consumer in a indirect way$ these two sources are commercial" in that they represent the efforts of the firm to build and project these values in the product$ ! third set of informational cues may come from the buyer#s social environment" including the family" reference groups and social class 3 which are influences that are internali&ed by the consumer before they can affect the decision process$

Hypothetical Constructs

?ypothetical constructs have been classified in two groups 3 perceptual constructs and learning constructs$ The first deals with the way the individual perceives and responds to the information from the input variables" accounting for stimulus ambiguity and perceptual bias$ The second deals with the stages from the buyer motives to his satisfaction in a buying situation$ The purchase intention is an outcome of the interplay of buyer motives" choice criteria" brand comprehension" resultant brand attitude and the confidence associated with the purchase decision$ The motives are general or specific goals impelling to action" impinging upon the buyer intention are also the attitudes about the existing brand alternatives in the buyer#s evoked set" which result in an arrangement of an order of preference regarding brands$ >rand comprehension and the degree of confidence that the buyer has about it" choice criteria and buying intentions" converge upon the intention to buy$ !s a feedback component of learning" the model includes another learning construct3satisfaction which refers to the post purchase evaluation and resultant reinforcing of brand comprehension" attitudes etc$ (shown by broken lines in the figure $ Output Variables The five output variables in the right hand portion of the model are buyer#s observable responses to stimulus inputs$ They are arranged in order from !ttention to !ctual Qurchase$ The purchase is the actual" overt act of buying and is the se%uential result of the attention (buyers total response to information intake " the brand comprehension" brand attitude (referring to the evaluation of satisfying potential of the brand and the buyer intention (a verbal statement made in the light of the above externali&ing factors that the preferred brand will be bought the next time the buying is necessitated$ Exogenous Variables The model also includes some exogenous variables which are not defined but are taken as constant$ These influence all or some of the constructs explained above and through them" the output$ 8ome exogenous variables are importance of the purchase" time at the disposal of the buyer" personality traits" financial status etc$

/ost scholars agree that the study of consumer behavior was advanced and given an impetus by ?oward 8heth /odel$ The major advantage and strength of the theory lied in the precision with which a large number of variables have been linked in the working relationships to cover most aspects of the purchase decision and the effective utili&ation of contribution from the behavioral sciences$ The weakness stems from the fact that" there being substantial measurement error" the theory cannot be realistically tested$ The distinction between the exogenous and endogenous variables is not clear cut$ !nd some of these variables do not lend themselves easily to measurement and other defy precise definition$ (n spite all limitations" the model because of its comprehensive coverage of almost all aspects of the purchase decision and operational explanation of the underlying stimuli and responses have given a useful frame of reference for the study of buying decision over time$