Full MR Notes - Prof. Kombrabail

TYBMS Prof.
Hemant Kombrabail
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MEANING OF MARKETING RESEARCH

The term "Marketing Research" is composed of two words -"Marketing" and "Research".
Marketing
Marketing basically consists of spotting the needs of customers and meeting them in the best
possible manner through appropriate production and distribution activities.
The term marketing refers to buying and selling activities. Exchange/transfer of ownership is the
essence of marketing.
Research
Research means detailed/systematic/comprehensive study of a problem. .
Research is a process involving a series of steps to collect and analyze the information needed for
decision-making in the desired / specific field of inquiry. The term research can be applied to any
field of human activity.
Research means ―studious enquiry" or "thorough, honest and impartial study conducted by trained
men using scientific methods". It means detailed study relating to a particular subject.
The term MR is used extensively in modern marketing management. It acts as a tool for accurate
decision making in marketing of goods and services. It is also useful for studying and solving
different marketing problems faced by business units. . Here, the details (information and data) of
the marketing problem are collected and studied, conclusions are drawn and
suggestions/recommendations are made to solve the problem quickly, correctly and
systematically. In MR/ marketing problem is studied in depth by collecting and analyzing all
relevant information and solutions are suggested to solve the problem relating to consumers,
product, market competition, sales promotion and so on.
MR is a special branch of marketing management. It is comparatively of recent in origin. MR acts

as an investigative arm of a marketing manager. It suggests possible solutions on marketing
problems for the consideration and selection by a marketing manager. It also acts as an important
tool to study buyer behavior, changes in consumer life-styles and consumption patterns, brand
loyalty and forecast market changes.
MR techniques are used by manufacturers/exporters/distributors and service organizations to

collect information on various aspects of marketing. The information collected is analyzed and
used for decision-making in the marketing management. MR facilitates accurate marketing
decisions for consumer satisfaction on the one hand and sales promotion on the other hand. It is
rightly treated as the SOUL of modern marketing management. MR suggests possible solutions
on marketing problems to marketing manager for his consideration and final selection/decision. It
is rightly said that the beginning and end of marketing management is marketing research.
Decisions on each element of the marketing mix-product, price, distribution and promotion-need
marketing research support. Marketing research is primarily used to provide information needed
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TYBMS Prof. Hemant Kombrabail
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to guide marketing decision viz., market mix. It acts as a support system to marketing
management.
DEFINITIONS OF MARKETING RESEARCH:
Let us now, consider some definitions of MR:

(1) The most widely accepted definition of marketing research is given by American Marketing
Association (AMA). The AMA has defined marketing research as "the systematic gathering,
recording and analyzing of data about problems relating to the marketing of goods and
services”
(2) According to Richard D. Crisp: "Marketing research is the systematic, objective and
exhaustive search for and study of the facts relevant to any problem in the field of marketing."
(3) According to Philip Kotler: "Marketing research is systematic problem analysis, model
building and fact-finding for the purpose of improved decision-making and control in the
marketing of goods and services."
(4) Luck, Wales and Taylor have defined marketing research as "the application of scientific
method to the solution of marketing problems"
(5) Green and Tull have defined marketing research as "the systematic and objective search for
and analysis of information relevant to the identification and solution of any problem in the
field of marketing."
(6) British Institute of Management: In 1962, the British Institute of Management defined
marketing research as/ "The objective gathering, recording and analyzing of all facts about
problems relating to the transfer and sales of goods and services from producer to consumer."
FEATURES OF MARKETING RESEARCH:
(a) Marketing research is concerned with systematic gathering, recording and analyzing of
information: In MR, information that is relevant to the marketing problem is collected in a
systematic manner from all available sources. Thereafter, the same is tabulated and recorded for
systematic scrutiny. Such scrutiny will offer certain specific conclusions useful for solving the
marketing problem.
(b) In MR, information is to be collected objectively and accurately: This feature of MR

suggests that the required information needs to be collected objectively. In brief, the information
collected should be accurate, precise, relevant and properly verified. The conclusions drawn and
the remedial measures introduced will be ineffective if the information collected is not reliable.
(c) Marketing research is a tool for solving marketing problems: MR is a means and not the end
in itself. It is a tool in the hands of management for identifying and analyzing marketing
problems. The purpose is to solve them correctly.
CHARACTERISTICS OF MARKETING RESEARCH:

(1) Systematic and continuous process: MR is a continuous process. This is natural as new
marketing problems are bound to come from time to time in the course of marketing of
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goods and services. One type of research is not adequate to resolve all marketing
problems. Similarly, new research projects will have to be undertaken to solve new
marketing problems and challenges. A marketing company faces new marketing problems
from time to time. For facing these problems marketing research activities need to be
conducted on a regular basis. A marketing company has to conduct MR regularly for its
survival & growth in the present dynamic marketing environment.
(2) Wide/comprehensive in scope and application: MR is wide in scope as it deals with all
aspects of marketing of goods and services. It is more than just collecting data on
marketing. Introduction of new products, identification of potential markets, selection of
appropriate selling techniques, study of market competition and consumer preferences,
introduction of suitable advertising strategy and sales promotion measures, are some areas
covered by MR. It plays a role in all the three phases of the management process in
marketing: planning, implementation and evaluation.
(3) Emphasizes on accurate data collection and critical analysis: In MR, required data
should be collected objectively and accurately. The data collected must be reliable. It
should be analyzed in a systematic manner. This will provide comprehensive picture of the
situation and possible solutions.
(4) Offers benefits to sponsoring company and consumers: MR is useful to the sponsoring
company. It raises the turnover and profit of the company. It also raises the competitive
capacity and creates goodwill in the market. It enables a company to introduce consumer-
oriented marketing policies. Consumers also get agreeable goods and more satisfaction
due to MR activities.
(5) Commercial equivalent of military intelligence: MR is the commercial intelligence
activity. It is similar to military intelligence where systematic study is made before taking
any military action. MR acts as the intelligence tool of marketing management.
(6) Tool for managerial decisions: MR acts as a tool in the hands of management for
identifying and analyzing marketing problems and finding out solutions to them. It is an
aid to decision-making. It suggests possible solutions for the consideration and selection
by managers. MR is an aid to judgment and never a substitute for it.
(7) Applied type of research: MR is applied knowledge. It is also called 'decisional research
as it provides specific alternative solutions to deal with a specific marketing problem. It
studies specific marketing problem and suggests alternative solutions and possible
outcome of each alternative. In addition, it is both science and an art. MR is also becoming
highly professional activity.
(8) Reduces the gap between the producers and consumers: MR is an essential supplement
of modern competitive marketing. It is useful for understanding the needs and expectations
of consumers. It reduces the gap between producers and consumers and adjusts the
marketing activities to suit the needs of consumers.
(9) Not an exact science: MR is both science and an art. It collects information and studies
marketing problem in a scientific manner. The information collected is also applied to real
lire problem. However, MR is not an exact science. It only suggests possible solutions and
not the exact solution to marketing manager for consideration and selection. At present,
MR is treated as a professional activity. We have professional agencies (MR agencies or
advertising agencies) dealing with the marketing problems of their clients on commission
basis.
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(10) Use of different methods: MR can be conducted by using different methods. Data can be
collected through survey or by other methods like observation method or experimentation
method. Even computers and internet are used for data collection. The researcher has to
decide the method that is suitable for the conduct of research project. This selection is
important as the use of unsuitable methods affect the quality of research work.
(11) Dynamic character: MR is dynamic in nature. Its scope is fast expanding along with the
new developments in the field of marketing. This is natural as MR is essentially for
dealing with new problems and challenges in the field of marketing. In addition,
developments in other subjects such as economics, statistics, computer science, sociology,
psychology, cultural anthropology and behavioral sciences also bring corresponding
changes in the field of MR. New methods, new techniques, etc., are used while conducting
the research activities. This suggests that MR is a dynamic and progressive subject with
new developments taking place regularly.
(12) Closely connected with marketing information system: Both the concepts are
interrelated. In fact, MR is one component of MIS. Both are useful for solving marketing
problems and for accurate and quick decision-making in the field of marketing.
(13) Phenomenal growth: MR has made a phenomenal growth since its inception. It has
become an important tool in the hands of management (to solve marketing problems)
along with the advent of consumer-oriented philosophy in modern business. The
increasing research budgets of companies are the indicators of its tremendous growth in
recent years.
AIMS AND OBJECTIVES OF MARKETING RESEARCH:

The aims of the marketing research and analysis may be stated as follows:
(1) To study the needs, wants and expectations of consumers.
(2) To find out reactions of consumers to the products of the company.
(3) To evaluate company's sales promotion measures for suitable adjustment and improvement.
(4) To study current marketing problems and opportunities for suitable follow-up actions.
(5) To suggest the introduction of new products, modifications of existing products and to
discover new uses of existing products.
(6) To design and test appropriate packages of company's products and make packaging as
attractive as possible
(7) To study existing pricing, channels of distribution and market competition for suitable
changes, if necessary.
(8) To find out methods for making the products of the company popular and raising its goodwill
and market reputation.
(9) To assess competitive strength and policies.
(10) To estimate potential buying-power in various areas
(11) To know the company's expected share of the market.
(12) To determine the dimensions of the marketing problems, facilitate evaluation of the alternative
solutions of different problems and help in the selection of a right course of action.
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(13) To define the probable market for a specialized product and to report on general market
conditions and tendencies, buying habits, etc.
MARKET RESEARCH V/S MARKETING RESEARCH:
The two terms ―market research" and "marketing research" are used interchangeably though there
is difference in the meaning and scope of the two terms. "Market research" is used as a popular
synonym for "marketing research". Market is a part of marketing and market research is only a
part of marketing research. It covers only a few aspects of marketing. According to Philip Kotler,
the term "market research" is accurate for describing research into the market, its size,
geographical distribution, income and so on. However, it fails to cover the idea of research into
the effects of marketing efforts on the market for which the term "marketing research" is more
accurate. MR is increasingly coming into favor as the term that describes both ideas. Marketing
research need not be treated as pure academic research. It is a type of applied research with
scientific orientation.
Distinction between market research and marketing research
Dimension Market Research Marketing Research

Meaning Market research directly relates to Marketing research is a systematic
market situation i.e. size, location, and comprehensive search/study of
market competition and features different aspects of marketing -
of customers. It provides details including the current marketing
about the market for decision- problems and challenges for
making and policy framing. decision-making & policy framing.
Nature Market research is a branch of Marketing research is one branch of
marketing research. Marketing Information System.
Scope The scope of market research is The scope of marketing research is

limited/restricted to the study of comprehensive & wide as it covers
market or market situation all aspects of marketing.
Type of term Market research is a narrow term Marketing research is a wide/broad

as it relates to one aspect of term as it covers all aspects of
marketing marketing
Objective Market research is undertaken in Marketing research is undertaken in

order to deal with the problems order to study varied types of
and challenges relating to different marketing problems such as product
aspects of market such as line, marketing mix, advertising,
competition, market demand and packaging, branding and so on.
consumer needs
GROWING IMPORTANCE OF MARKETING RESEARCH:
Marketing research has received attention and importance along with the growth of highly
competitive consumer-oriented marketing philosophy. Research activities in different aspects of
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marketing are necessary and useful in such competitive and flexible marketing environment.
Large companies marketing consumer items noted the growing need of MR activities in the
marketing decision-making process. They naturally took initiative in conducting research
activities within the organization itself. This was followed by the formation of specialized
marketing research agencies and advertising agencies for this purpose. This is how professional
orientation was given to MR. Many marketing research departments and agencies were
established after World War II.
MR activity (as we understand today) is comparatively new in the field of marketing. This activity
probably began around 1950s (Modern era of marketing research) and attracted the attention of
companies interested in marketing their products in the national and global markets. However, the
concept of MR got firm roots in the marketing activity after 1910. First time the marketing
research techniques were used by newspapers to predict the election results. However, during the
second decade of 20th century, marketing research emerged as a valuable management tool to
solve marketing problems. In the developed countries, marketing research activity is conducted on
scientific lines. Even in India, large manufacturing companies treat marketing research as an
essential supplement of planning and decision-making in the marketing field. It is treated as an
indispensable tool for profitable and consumer-oriented marketing. The popularity of MR
increased after 1960 due to the introduction of computers in data collection and analysis. In the
early period, marketing research activities were confined to market studies only but in 1950s
research relating to marketing activities was broadened to include all managerial aspects-price,
produce place and promotion. In late 1950's motivational and psychological techniques were
introduced to generate more information on consumers.
Several factors have contributed to the growing importance of marketing research. For example,
due to large-scale production, producers could not have direct contact with the consumers. This
created many problems before producers. For solving all such problems developed due to the gap
between producers and consumer and marketing research activities prove to be useful.
Secondly, the shifting from sellers‘ market to buyers' market made it necessary to have better
understanding about consumer net-expectations. For this, marketing research proved to be useful.
Thirdly, the introduction of computers has contributed to the growth of marketing research
activity.
Fourthly, rapid changes in the business environment, shift to consumer-oriented philosophy in

business are also responsible for growing importance of marketing research.
Finally, the scope of marketing has widened due to population growth and development of rural
markets. MR proved to be useful for dealing with the problems created by national and global
markets. In brief, growing importance of marketing research in the present marketing system is
the net result of various factors and forces available in the present marketing system. At present,
MR activities are undertaken by marketing companies on their own. In addition, marketing
research consultants and agencies provide expert advice to companies on general and specific
marketing problems of their clients.
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Relevance of MR under Globalization:
The business world is fast moving towards globalization in which all countries participate. Every
country has to face competition in the domestic as well as in export marketing. Survival in the
global business is possible through quality improvement, cost reduction and by attracting
consumers through various sales promotion techniques. Here, MR offers helping hand to
companies. It offers suggestions for survival under global competitive environment. In brief, the
importance/relevance of MR is fast growing along with the globalization of business. It is a must
for survival and growth under globalization. Current marketing scenario is different as compared
to traditional one. There is a new trend towards liberalization and globalization. Markets
(domestic as well as foreign) are becoming highly competition. New companies and new products
are entering in the markets. Survival is difficult under the present marketing environment. Here,
MR offers various services. It is, now, a professional activity with new developments in regard to
scope/coverage and techniques. In brief, MR has great relevance in the current marketing scenario
in India as well as in all countries- developed and developing of the world. MR has enormous
capacity to help and guide marketing companies in regard to their marketing problems and
challenges.
FUNCTIONS OF MARKETING RESEARCH:
MR performs five basic functions. These are: Description, evaluation, explanation, prediction and
finally aid in decision-making. These functions are related to the research project undertaken.
Usually, every research study performs all the five functions explained below:
(1) Description: MR provides data and gives information/description of customers who buy the
product. This includes information about their age/sex, education, income and the amount of
money that they are willing to spend on the product. Description of the customers is useful in
order to draw certain conclusions about the customers and their buying behavior. Even
marketing strategies can be decided as per the information available.
(2) Evaluation: MR is useful for understanding the views/reactions of the buyers. This includes
views of consumers on packaging/ advertising/sales promotion measures used. A
manufacturer gets these details as well as the information about his product in comparison
with the products of his competitors. This facilitates evaluation of the marketing policies. For
example, how far the packaging of the product is attractive to consumers or superior as
compared to packaging by competitors and so on.
(3) Explanation: MR gives explanation to certain questions of a manufacturer. It may be related

to decline in sales, retailers negative reaction or resistance of consumers in a particular
marketing area. MR enables a manufacturer to understand why sales are reducing (causes) or
why the response of the retailers is negative or why consumers in a particular region are not
willing to purchase a specific product. Such explanation is important as it enables a
manufacturer to adjust his marketing policies in order to rectify the prevailing unfavorable
situation.
(4) Prediction: MR conducts prediction function. Such predictions may be related to consumers,
market environment/market competition, possible socio-economic changes and so on. This
prediction function enables a manufacturer to understand how much people will spend on the
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specific product in the next year or the fashions that consumers may prefer in the next year.
In addition, prediction about the possible turnover in the years to come is also possible
through suitable marketing research studies. In brief, marketing research is useful for
understanding the marketing environment likely to develop in future. This facilitates proper
adjustment in the marketing policies for the future period. In this sense, the prediction
function is important even when all predictions made through research studies may not prove
to be fully correct. However, the trend indicated can be used for appropriate policy decisions.
(5) Aid in Decision-making: One more function of MR is to facilitate the process of decision-
making in the marketing field. MR guides the manufacturer as regards the manner in which
he can make effective advertising appeal or create incentive among his salesmen/distributors.
It also gives him guidance as regards price fixation and sales promotion techniques that will
be useful for the future period. This function of marketing research is closely related to other
functions that it performs. These functions facilitate reasonably correct decision-making by
marketing managers.
They also suggest the practical utility of MR activities.
MR functions provide feedback (information and guidance) to marketing managers and improve
the quality of their decision-making. This practice is certainly safer as compared to decision-
making on the basis of past experience or intuition. When reality is complex and many facts are
not detectable, intuition is not adequate for decision-making. Similarly, experience is useful but
decisions on experience alone may not be accurate.
Large companies and professional executives prefer to resort to marketing research than
depending on experience. This is because information available is based on real data and is more
reliable/ dependable. This facilitates correct decision-making. Thus, marketing executives should
prefer decisions on the basis of information supplied through marketing research. Such decisions
are likely to be more accurate as they are based on actual market situation.
In brief, the basic function of MR is to support marketing decision-making process. Marketing

research does not provide ready-made decisions or exact solutions on all marketing problems. It
only provides the clues or possible solutions that should be taken into consideration in the
decision-making process. It provides support to skills and abilities of marketing managers.
The different functions of marketing research are supplementary in character. These functions
enable a manufacturer to keep close touch with the marketing situation and enable him to make
suitable changes in his marketing policies and programmers. They also suggest the role marketing
research activity in modern competitive and consumer oriented marketing. Marketing research
functions certainly improve the quality of decision-making by marketing managers.
ADVANTAGES/IMPORTANCE OF MARKETING RESEARCH:

1. Indicates current market trends: Marketing research keeps business unit in touch with the
current market trends and offers guidance for facing market situation with confidence.
2. Pinpoints deficiencies in marketing policies: MR pinpoints the deficiencies as regards
products, pricing, promotion, etc. It gives guidance regarding different aspects of marketing.
They include product development, branding, packaging and advertising.
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3. Explains customer resistance: MR is useful for finding out customer resistance to company's
products. The researcher also suggests remedial measures to deal with the situation. This
makes the products and marketing policies agreeable to consumers.
4. Suggests sales promotion techniques: MR enables a manufacturer to introduce appropriate
sales promotion techniques, select most convenient channel of distribution, suitable pricing
policy for the products and provision of discounts and concessions to dealers. Marketing
research facilitates sales promotion.
5. Offers guidance to marketing executives: MR offers information and guidance to marketing
executives while framing marketing policies. Continuous research enables a company to face
adverse' marketing situation boldly. It acts as an insurance against possible changes in market
environment.
6. Facilitates selection and training of sales force: Marketing research is useful for the
selection and training of staff in the sales organization. It also suggests the incentives that
should be offered for motivation of employees concerned with marketing.
7. Promotes business activities: Marketing research enables a business unit to grow/expand its
activities. It creates goodwill in the market and also enables a business unit to earn high profits
through consumer-oriented marketing policies and programmers.
8. Facilitates appraisal of marketing policies: Research activities enable business executives
to have an appraisal of the present marketing policies in the light of findings of research work.
Suitable adjustments in the policies are also possible as per the suggestions made by the
researchers.
9. Suggests new marketing opportunities: MR suggests new marketing opportunities and the
manner in which they can be exploited fully. It identifies emerging market opportunities.
10. Facilitates inventory study: Marketing research is useful for the evaluation of company‘s
inventory policies and also for the introduction of more efficient ways of managing
inventories including finished goods and raw materials.
11. Provides marketing information: MR provides information on various aspects of marketing.
It suggests relative strengths and weaknesses of the company. On the basis of such
information, marketing executives find it easy to frame policies for the future period. MR
provides information/ guidance and alternative solutions to current marketing problems.
12. Suggests appropriate distribution channels: MR can be used to study the effectiveness of
existing channels of distribution and the need of making suitable changes in the distribution
system.
13. Provides information on product acceptance: Marketing research helps in knowing the
probability of acceptance of the product in its present form. It is also useful for the
introduction of modifications in the existing product line of a firm.
14. Creates progressive outlook: MR generates a progressive and dynamic outlook throughout
the business organization. It promotes systematic thinking and a sense of professionalization
within the company. It also creates enthusiasm among marketing executives. This brings
success and stability to the whole business unit
15. Has wider social significance: MR is of paramount importance from the social angle. It is the
means by which the ultimate consumer literally becomes king of the market place, with his
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desires/ prejudices and every whim transmitted to the producer and distributor. In brief, MR
has wider social significance. It is useful to all parties involved in the process of marketing.
Marketing research need not be treated as a fad. It is one of those fundamental tools that today‘s
marketing manager needs to keep sharpened all the time so that he might be-m a position to
minimize the business or marketing risk.
Limitations of marketing research are as explained below:
(1) Marketing research offers suggestions and not decisions: Marketing research is not a
substitute for decision-making process. It only offers possible suggestions/solutions to
marketing problems. It actually acts as a tool that facilitates decision-making process. It
guides marketing managers in taking balanced, result-oriented and rational decisions. The
suggestions offered by marketing researchers are usually possible/probable solutions but not
the exact solutions.
MR offers predictions but they are not necessarily accurate or perfect. Such predictions should
be taken in the right spirit by the management. It offers information and guidance to
marketing managers but not the final decisions, which are to be taken by managers
themselves.
MR does not provide readymade solutions to marketing problems. It only provides indicators.
It may not provide conclusive information on marketing problems. The marketing managers
have to use available information properly and take appropriate marketing decisions.
The effectiveness of MR depends on the skill of the decision-maker. For this/ various
marketing forces need careful consideration. However all such forces are not covered by
research project undertaken. MR aids managerial decision-making but it cannot replace
judgment and experience of marketing executives/managers.
(2) Marketing research cannot predict accurately: In MR, efforts are being made to estimate
or predict the possible future situation. For this/ certain research studies are undertaken.
However, the results/ conclusions arrived at may not be complete, perfect or accurate. They
predict possible tendencies but not certainties. Future is always uncertain and exact prediction
about the future is just not possible through marketing research. This is because market
environment is ever changing consumer behavior is difficult to estimate correctly and reliable
data for research purpose may not be available. As a result, the decisions taken and policies
framed on the basis of such research studies may not be accurate and useful for solving
current marketing problems.
Marketing research gives guidance to marketing managers through information and

conclusions drawn but such guidance may not be accurate as it is based on the predictions
about future situation. The guidance offered through research activities may prove to be out-
dated at the time of taking current marketing decisions.
(3) MR conclusions are not always dependable: There are many who are skeptics of MR. Their
criticism is that MR conclusions are not dependable. There are examples where the research
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failed to deliver desired results or a product failed even when the research had shown
promising market demand and consumer support. The classical example is that of Coke. Its
MR showed that 68% customers in US liked the taste of the new formula developed by the
Coca-Cola Corporation. However, the New Coke failed and in less than six months of its
launch, the Coke management had to re-launch old Coke under the brand name Coke Classic.
However, this failure of MR was mainly due to conventional approach of researchers.
(4) Not an exact science: Since marketing research plates to consumers, it cannot be accepted as
an exact science. Both quantifiable and non-quantifiable factors have to be assessed with the
help of various techniques available to formulate marketing policies that will help to achieve
maximum sales. The technical part of marketing research comes into operation particularly
while collecting, analyzing, interpreting facts and figures. No amount of sophistication makes
the subject an exact science. Because, as stated earlier, it concerns primarily the consumer as a
human being Study of human behavior precludes absolute mathematical accuracy Probable
trends, at the most can be indicated within predetermined limits. This sets a basic limitation to
marketing research. At the same time, it necessitates a creative and skilled approach to the
conduct of research. In this way, marketing research can contribute immensely to decision-
making in a dynamic market. For accurate judgment, the marketer must be fully aware of the
nature of limitations of marketing research.
(5) Time lag in presentation and implementation: There are other constraints as well that make
for qualified utility of marketing research in decision-making. For example, there is the
limitation of time. Collection of data, their checking as to accuracy and analysis and
presentation often involve considerable time. The formulation of policies and their
implementation as also their subsequent evaluation, which are a necessary follow-up, also take
time. People's tastes and preferences are subject to frequent changes. It is, therefore necessary,
keeping in mind the scope and nature of marketing research, that the projects should be
completed in time to ensure their utility. In this process, at times, as a compromise some
accuracy may have to be sacrificed, but the degree of it can be decided in relation to the
specific circumstances.
(6) Limitations of personnel: Another constraint that is experienced pertains to personnel and its
quality. Trained, well-equipped and well-directed research personnel can improve the quality
and utility of marketing research. In the absence of this, research is likely to be costly and
unreliable. Correct and complete information has to be collected from the respondents
tactfully. The interviewer has to be reasonably aware of the psychological make-up of the
persons that are being interviewed and should be able to analyze their thoughts and reactions.
Apart from this, interviewers may have their own failings and weaknesses. Hence the
training interviewers and investigators is a must. These limitations and constraints can be
overcome or at least their impact can be minimized. To the extent a market researcher is
successful in his task, the value of the findings can be improved. What is most important is
that reliable data should be available on the basis of which production and marketing plans
and programmers can be formulated with a fair degree of accuracy. It is better to be certain
about 50 percent reliable information than do a guesswork, which has more chances of going
wrong.
(7) Difficult to ascribe results: It is also difficult to ascribe results as a direct consequence of
market research. The rupee value received by a firm from marketing research, therefore,
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cannot be measured accurately and completely. This has contributed to an element of
hesitation on the part of organizations to undertake marketing research in many cases,
especially in the developing countries.
(8) A cost-generating operation: Marketing research is expensive. The existence of sellers‘

market or a sheltered market in many developing countries in particular has also been
responsible for an apathetic approach to marketing research. However, with the growth and
development of their economies, the marketing conditions are changing in favor of buyers and
the need for and the value of marketing research are being increasingly recognized by the
enterprises in these countries also. With the communication between the purchaser and the
manufacturer becoming indirect, meagre and unsatisfactory and as a result of competition, the
manufacturer is increasingly becoming anxious to know the magnitude of his sales to
consumers, where they are being effected, the kinds of people buying his goods and their
reactions and responses. All this information is essential to the manufacturer, as this decides
ultimately whether he will survive in the market or not. He can improve his product and
marketing strategy to secure consumer satisfaction and logically profit from these changes.
(9) Marketing research cannot study all marketing problems: Marketing research is rather
very wide in scope. However, it cannot study all marketing problems particularly where it is
difficult to collect relevant data. Similarly, research study is not possible where value
judgments are involved. Even it is not useful for dealing with urgent marketing problems
where quick decisions and follow-up actions are necessary. Thus, all marketing problems are
not researchable and all research problems are not answerable.
MR cannot provide answer to each and every marketing problem. A problem like Profitability
Vs. Consumer satisfaction is difficult to answer with complete accuracy. The present
marketing research techniques have certain limitations. MR fails to offer guidance to
managers while dealing with specific problems. Thus, marketing research cannot study all
marketing problems and do not offer ready-made solutions to all marketing problems faced by
a business unit. It is also argued that very many times, marketing research tends to be
fragmentary in its approach. As a result, it becomes difficult to have an overall perspective in
which a marketing problem is to be viewed and studied.
(10) Resistance by marketing executives: Researchers study marketing problems and offer
information and guidance to marketing executives in their decision-making process. However,
some executives are reluctant to use the solutions suggested by the researchers. They feel that
such extensive use will act as a threat to their personal status. Findings of the research work
may bring them in difficulties if the policy-decisions taken accordingly prove to be wrong.
Marketing executives may also feel that researchers suggest solutions that are academic in
character and lack practical utility. They use guidance and suggestions given by the
researched only when they are compelled to do so. There is absence of meaningful dialogue
between the marketing managers and the marketing research team. As a result/ marketing
researchers get divorced from the main stream of marketing. Such attitude of indifference on
the part of researchers and marketing executives makes marketing research meaningless.
It is necessary to have effective communication between researchers and marketing

executives. Secondly, researchers should try to act as friend and guide of marketing
executives. Marketing executives should also consider the findings of researchers in an
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impartial manner. Such attitude of mutual confidence and understanding is useful for co-
operation between researchers and marketing executives. Conflict between researchers and
executives is always undesirable but do exist in many companies. It is treated as one limitation
of MR activity.
(11) Lengthy and time-consuming activity: MR is a lengthy and time-consuming activity. It

involves various stages/steps, which need to be completed in an orderly manner. It is not
desirable to conduct research work in a haphazard manner. Naturally, the research work takes
longer period for completion and the findings when available may prove to be old and
outdated. Even data collected very soon become old or historical due to fast changing market
environment. As a result, research findings based on them become irrelevant in the changed
situation.
MR is not useful for dealing with urgent marketing problems. Moreover, research work cannot
be conducted overnight and marketing decisions cannot be postponed till the research work is
completed. Thus, urgent/pressing marketing decisions arc usually taken without the support of
research work. In brief, lengthy and time consuming aspect of marketing research reduces its
practical utility and is rightly treated as one limitation of marketing research technique.
(12) Non-availability of qualified staff: For scientific MR, professional marketing researchers
with proper qualifications, training and experience are necessary. Research work is likely to
be incomplete/ unreliable in the absence of such expert staff. Companies find it difficult to
have the services of such expert staff. They find it difficult to pay high salary to professional
consultants. Research activities are conducted in limited areas due to non-availability of
properly qualified staff. Such staff includes statisticians, psychologists, sociologists,
economists and computer experts.
(13) Complexity of the subject: Marketing research fails to give complete and full proof solutions
to management. This is because marketing research itself is not an exact science. It is
concerned with the study of human beings and human behavior is always difficult to predict,
errors in drawing conclusions are possible due to this human element in marketing research
activities. Errors in the research studies are also possible due to uncertainty of human behavior
and also because of non-availability of reliable data.
(14) Changing behavior of consumers: Consumer is the focal point in marketing research.
However, his buying motives are difficult to judge precisely and accurately. This brings some
sort of uncertainty in the conclusions drawn from the research activity. The findings of the
research work (particularly in the case of consumer research) may not prove to be accurate.
(15) Limited practical utility: MR is regarded as an academic exercise. It is often been delinked
from the business strategy. As a result many research reports become "academic" in nature
and are 'filed'. Researchers take more interest in conducting research work rather than in
supplying information and guidance to marketing managers in the decision-making process.
Many research reports are rather bulky and unintelligible due to the use of technical language
and unnecessary details. Such reports are rejected or are not used meaningfully b) marketing
managers. This brings down the practical utility of MR.
(16) Passive nature: MR is passive by its nature. Sometimes, it becomes too superficial and faulty
in business management. Man) conclusions drawn from the marketing research activities may
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be imaginary or not based on realities. Its use and effectiveness largely depend on the ability
of marketing executives to get the most promising results out of it. Marketing research by
itself may not give any benefit. It only shows the way to executives in the decision-making
process.
(17) Fragmentary approach: On many occasions, marketing research tends to be fragmentary in

its approach. It suggests solutions that may be difficult to put into operation. This is because
overall marketing environment is not given adequate attention while suggesting the solution.
Such fragmentary approach is not useful for solving marketing problems in an integrated
manner.
(18) Absence of effective communication: The research activity will be useful and result-oriented
only when there is meaningful dialogue between the marketing management and marketing
research team. However, such dialogue is ineffective in many organizations. This make'
research activity ineffective.
Inspite of the limitations noted above, MR is necessary and useful in marketing management.
SCOPE OF MARKETING RESEARCH / BRANCHES OF MR:
Marketing research is a subject with wide scope. Broadly speaking, it is concerned with the
marketing activities of an enterprise. All activities of a seller-to market his products to consumers
are covered by such research. Marketing research is primarily concerned with "4 Ps" of
marketing mix. These are: Product, Price, Place and Promotion. The scope of marketing
research is comprehensive and is actually widening in recent years. Products research, sales
research, pricing research, brand and package research, promotion research and customer research
arc the usual areas covered by MR. In addition, specialized research activities such as motivation
research, consumer satisfaction research, etc. are also undertaken to meet the specific needs of a
business unit. Additional areas and new methods of conducting research activities are regularly
added within the scope of MR.
In 1973, the American Marketing Association noted that marketing research activities were
undertaken on 36 different topics of 1322 companies interviewed. Even in India, large companies
conduct research activities on many marketing problems. Finally, it may be pointed out that
marketing research is essentially for solving the marketing problems of a business unit. Naturally,
research activities will be adjusted accordingly. This suggests that there is no limit to the areas
covered by marketing research. Everything connected with marketing comes within the scope of
MR.. The branches of MR are as explained below:
1. Product Research:
Product research relates to products that are to be marketed to consumers. It is useful for
introducing new product that will be agreeable to consumers. Product research relates to
various aspects such as design, development and introduction of new products, testing of
existing products, product modification studies and so on.
2. Packaging Research:
Packaging research is a part of product research and is important for making the products
attractive and agreeable to consumers. Packaging is now treated as a tool for sales promotion.
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It attracts the attention of consumers and induces them to purchase products. Constant changes
in the package design are-required for sales promotion. For innovation in the package design/
packaging research is necessary. Packaging research is now treated as an independent branch
of marketing research. Such research is conducted in order to know the impact of packaging.
Branding and packaging normally go together and hence brand research is treated as a part
and parcel of packaging research.
3. Pricing Research:
Pricing research relates to pricing of the product It relates to analysis of pricing policies and
strategies, studies market price trends, fixation of market prices, studies relating to prices
charged by competitors, studies relating to future price trends, price incentives for sales
promotion and provision of price discount and other price concessions to dealers and
consumers.
4. Market Research:
Market research proper relates to analysis of consumer markets, assessment of market trends,
forecasting of business conditions, setting of sales territories and sales quota, sale potentials
studies, studies of wholesale marketing, demography descriptions of customers, market
competition studies, sale-forecasting, estimating demand for new products, analyzing relative
profitability of sales territories and monitoring competitive-marketing activities.
5. Sales Research:
Sales research relates to studies of sales outlets, sales territories and their revision, trends in
sales, sales forecasting, effectiveness of sales force, sales policies and sales performance and
so on.
6. Promotion and Distribution Research:

Promotion research related to assessing effectiveness of the sales force and selling efforts,
testing of media selected, advertising copy and assessing effectiveness of advertising
campaigns. The scope of this area of marketing research also includes the study of channels
of distribution for modification, distribution cost analysis of the physical distribution,
problems relating to warehousing, inventory control and handling of goods.
7. Consumer Research:
It relates to finding out consumers' needs and preference, consumers' purchasing intentions,
consumers' choice of brands, trends in consumer preferences and purchasing patterns
8. Policy Research:
Policy research activity is connected with the evaluation of effectiveness of marketing
policies, sales policies, distribution policies, pricing policies, inventory policies and so on.
Necessary changes in such policies are possible through intensive policy research studies.
9. Advertising Research:
It relates to evaluation of advertising effectiveness, analyzing competitive advertising and
selection of appropriate advertising media.
10. Media Research:

Different media are used for communicating message about the products to prospective
buyers. Media are used for advertising and publicity purpose. Newspapers, radio, TV
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magazines, transport vehicles, etc. are the media used for advertising. Media research relates
to detailed study of different media for selection and use.
11. Motivational Research:

Motivational research is one aspect of consumer research as it deals with consumer behavior.
It studies "Why" aspect of consumer behavior. Consumer research is useful for finding out the
sentiments, buying motives, priorities and inner feelings of consumers. It is a type qualitative
research.
12. International Marketing Research:

International marketing research deals with foreign markets that are attractive and profitable
provided products and marketing activities are adjusted as per the need of foreign markets and
buyers. Such research is useful for exploring profitable foreign markets, for export promotion
and for making suitable modifications in the exportable items. Data collection about foreign
markets, market surveys, etc. are undertaken under international MR. Such research is costly
and time consuming as compared to internal research. However, it is a must in the case of
exporting companies. International MR is also undertaken by export promotion organizations
such as Export Promotion Councils and Commodity Boards.
APPLICATION OF MARKETING RESEARCH
A. TRADITIOMAL APPLICATION OF MARKETIMG RESEARCH

Traditionally, marketing decisions have been divided into 4P's - product, price, promotion and
place decisions.
I. NEW-PRODUCT RESEARCH
New product development is critical to the life of most organizations as they adapt to their
changing environment. Since, by definition, new products contain unfamiliar aspects for the
organization, there will be uncertainty associated with new products. New product can be divided
into four stages
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a. Concept generation
There are two types of concept generation research. They are:
1. Need identification. The emphasis In need research is on identifying unfilled needs in the
market. Marketing research can identify needs in various ways. Some are qualitative and others,
such as segmentation studies can be quantitative. Following are some examples:
i. Perceptual maps, in which products are positioned along the dimensions by which users
perceive and evaluate, can suggest gaps into which new products might fit.
Multidimensional scaling is used to generate these perception gaps.
ii. Social and environment trends can be analyzed.
iii. An approach termed benefit structure analysis has product users identify the benefits desired
and the extent to which the product delivers those benefits, for specific applications. The
result is an identification of benefits sought that current product do not deliver.
iv. Lead user analysis the approach in which instead of just asking users what they have done,
their solutions are collected more formally. Lead users are positioned to benefit
significantly by solving problems associated with these needs. Once a lead user is
identified, the concepts that company or person generates are tested.
2. Concept identification. During the new product development process there is usually a point
where a concept is formed but there is no tangible usable product that can be tested. The concept
should be defined well enough so that it is communicable. There may be simply a verbal
description, or there may be rough ideas for a name, a package, or an advertisement approach.
The role of marketing research at this stage is to determine if the concept warrants further
development and to provide guidance on how it might be improved and refined
b. Product Evaluation and Development
Product evaluation and development, or product testing, is very similar to concept testing, in
terms of both the objectives and the techniques. The aim is still to predict market response to
determine whether or not the product should be carried forward.
1 Use testing - The simplest form of use testing gives users the product and after a reasonable
amount of time asks their reactions their intentions to buy it.
2. Predicting trial -Trial levels (the percentage of a sample of consumers who had purchased the
product at least once within 12 months after launch) were predicted on the basis of three
variables:
 Product class penetration (PCP)
 Promotional expenditure
 Distribution of the product
3. Pretest marketing - Two approaches are used to predict the new brand's market share.
 The first one is based on preference judgments. The preference data are used to predict the
proportion of purchases of the new brand that respondents will make given that the new brand
is in their response set.
 The second approach involves estimating trial and repeat purchase levels based on the
respondent's purchase decisions and intentions-to-buy judgments.
c. Test marketing
Test marketing allows the researcher to test the impact of the total marketing program, with all its
Interdependencies, in a market context as opposed to the artificial, context associated with the
concept and product tests that have been discussed. Test marketing has two primary functions.
 The first is to gain information and experience with the marketing program before making a
total commitment to it.
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 The second is to predict the program's outcome when it is applied to the total
market There are really two types of test markets:
1. Sell-in test markets are cities in which the product is sold just as it would be in a national
launch. In particular the product has to gain distribution space.
2. Controlled distribution scanner markets are cities for which distribution is prearranged and the
purchase of a panel of customers are monitored using scanner data.
Early stages of the product life cycle are sacrificed in the expectation that higher volumes in later
periods will generate sufficiently greater prompts to result in overall profit for the product over its
life
III. DISTRIBUTION RESEARCH
Traditionally, the distribution decisions in marketing strategy involve the number and location of
sales persons, retail outlets, warehouses and the size of discount to be offered The discount to be
offered to the members in the channel of distribution usually is determined by what is being
offered by existing or similar products and also whether the firm wants to follow; a "push1 or a
"pull‖ strategy Marketing research, however, plays an important role in the number and location
in decisions about numbers and locations
a. Warehouse and Retail Location Research
The essential questions to be answered before a location decision is made are "What costs and
delivery times would result if we choose one location over another?"
Simulation of scenarios is used to answer these questions. The simulation can be relatively simple
paper-and-pencil exercise for the location of 3 single warehouse in a limited geographic area. or it
can be a complex, computerized simulation of a warehousing system for a regional or national
market
i. Center of gravity simulation - The center for gravity method of simulation is used to locate a
single warehouse or retail site In this method, the approximate location that will minimize the
distance to customers, weighted by the quantities purchased is determined The more
symmetry there is in customer locations and weights the more nearly the initial calculation
approximates the optimal location The location indicated by the first calculation can be
checked to be determine if it is optimal (or near optimal) by using a "confirming‖ procedure.
If it is not optimal, successive calculations can be made as necessary to ―home in" on the best
location
ii. Computerized simulation models - The concept involved m simulations for this purpose is
quite simple Data that describes the customer characteristics (location of plants, potential
warehouse and retail sites) and distribution costs (costs per mile by volume shipped, fixed and
variable costs of operating each warehouse the effect of shipping delays on and variable costs
of operating each warehouse, the effect of shipping delays on customer demand) are generated
and input into the computer The computer is programmed to simulate various combinations of
numbers and locations of warehouses and to indicate which one(s) gives the lowest total
operating cost Effective results have been achieved by using computer simulations to design
distribution systems
iii. Trade area analysis - Formal models have been developed that can be used to predict the
trading area of a given shopping center or retail outlet based on relative size travel time and
image A variety of other techniques can be used to establish trading areas. An analysis of the
addresses of the credit card customers or license plates of the cars (by plotting the addresses of
the car owners) can provide a useful estimate of the trading area. Check-clearance data can be
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used to supplement this information. The best, but also the most expensive way of establishing
trading area bound Aries is to conduct surveys to determine them
iv. Outlet location research. - Individual companies and, more commonly, chains, financial
institutions with multiple outlets, and franchise operations must decide on the physical
location of their outlets). Three general methods involves plotting the area surrounding the
potential site in terms of residential neighborhood, income levels, and competitive stores.
Regression models have been used for location studies for a variety of retail outlets, including
banks, grocery stores, liquor stores, chain stores and hotels. Data for building the model and
for evaluating new potential locations are obtained through secondary data analysis and
surveys.
b. Number and location of Sales Representatives
How many sales representatives should be in a given territory? There are three general research
methods for answering this question.
 The first, the sales effort approach, is applicable when the product line is first introduced and
there is no operating history to provide sales data.
 The second involves the statistical analysis of sales data and can be used after the sales
program is under way.
 The third involves a field experiment and is also applicable only after the sales program has
begun.
IV. PROMOTION RESEARCH

It focuses on the decision that is commonly made when designing a promotion strategy. The
decision for the promotion part of a marketing strategy can be divided in to (1) Advertising and
(2) Sales promotion. Sales promotion affects the company in the short term, whereas advertising
decisions have long-term effects. Companies spend more time and resources on advertising
research than on sales promotion research because of the greater risk and uncertainty In
advertising research.
1. Advertising research
Most companies concentrate on advertising because advertising decisions arc more costly and
risky than sales promotion decisions. Advertising research typically, involves generating
information for making decisions In the awareness, recognition, preference and purchasing stages.
What separates an effective advertisement from a dud? The criteria will depend, on the brand
involved and its advertising objective. However, following basic categories of responses are used
in advertising research in general and copy testing in particular
a) Advertisement recognition
b) Recall of the commercial and its contents
c) The measure of commercial persuasion and the impact on purchase behavior.
• Purchase behavior
- Coupon stimulating purchasing
- Split-cables tests. Information Resources Inc's (IRI) Behavior Scan is one of several split-cable
testing operations. Behavior Scan monitors the purchases of panel members as well as in-store
information such s special prices, features and displays.
• Tracking studies
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When a campaign is running, its impact often is monitored via a tracking study Periodic sampling
of the target audience provide a time trend of measures of interest. The purpose is to evaluate and
reassess the advertising campaign, and perhaps also to understand why it is or is networking.
Among the measures that often are traced are advertisement awareness, awareness of elements of
the advertisement, brand awareness, beliefs about brand attributes, brand image, occasions of use,
and brand preference. Of particular interest is, knowing how the campaign is affecting the brand,
as opposed to how the advertisement is communicating the message.
• Diagnostics testing
A whole category of advertising research methods is designed primarily not to test the impact of a
total ad but rather to help creative people understand how the parts of the ad contribute to its
impact. Which are weak and how do they interact? Most of these approaches can be applied to
mock-ups of proposed ads as well as finished ads.
• Copy test validity
This test refers to the ability to predict advertising response.
* Budget decision
Arriving at analytical research-based judgments as to the optima! advertising budget Is
surprisingly difficult. However, there are research inputs that can be helpful. Tracking studies that
show advertising is either surpassing or failing to reach communication objectives can suggest
that the budget should be either reduced or increased.
• Media research
In evaluating a particular media alternative, it is necessary to know how many advertising
exposures it will deliver and what will be the characteristics of the audience. A first cut of the
vehicle's value is the cost per thousand (circulation), the advertisement insertion cost divided by
the size of the audience.
2. Sales Promotion Research

There are three major types of sales promotion: consumer promotion, retailer promotion and trade
promotions.
In consumer promotion, manufacturers offer promotions directly to consumers, whereas retail
promotions involve promotions by retailers to consumers. Trade promotions involve
manufacturers offering promotions to retailers or other trade entities. Trade entities can also
promote to each other. For ex ample, a distributor can offer a steep temporary price cut to retailers
in order to sell excess inventory. It is called trade promotions, since the recipient of the promotion
is a marketing intermediary.
Sometimes several manufacturers or several retailers combine in one promotion. These are called
cooperative promotions or promotion partnerships.
B. CONTEMPORARY APPLICATIONS OF MARKETING RESEARCH

1. Competitive Advantage.
The notion that achieving superior performance requires a business to gain and hold an advantage
over competitors is central to contemporary strategic thinking. Businesses seeking advantage are
exhorted to develop distinctive competencies at the lowest delivered cost or to achieve
differentiation through superior value. The assessing competitive advantage can be done in
number of ways. The methods can be broadly classified as market-based and process-based
assessment Market-based assessment is direct comparison with a few target competitors, whereas
process-based assessment is a comparison of the methods employed.
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2. Brand Equity.
Brand equity is defined as a set of assets and liabilities linked to a brand that add to or subtract
from 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/or symbol of the brand. The assets and
liabilities on which brand equity is based will differ from context to context. However, they can
be usefully grouped into five categories:
a) Brand loyalty
b) Name awareness
c) Perceived quality
d) Brand association
e) Other proprietary brand assets: patents, trademarks, channel relationships etc.
3. Customer satisfaction.
The measurement of customer satisfaction and its link to product/service attributes is the vehicle
for developing a market-driven quality approach This approach requires a sequential research
design that uses the results from each research phase to build and enhance the value of subsequent
efforts. During this process, it is imperative to study customers who were lost, to determine why
they left This issue must be addressed early in the system design The steps involved in customer
satisfaction is
a) Define goals and how information will be used
b) Discover what is really important to customers and employees
c) Measure critical needs
d) Act on the information
e) Measure performance overtime
f) Issues in questionnaire design and scaling in satisfaction research
4. Total quality management

TQM Is a process of managing complex changes In the organization with the aim of improving
quality.
The power of measurements is clearly visible in applications of quality function deployment
(QFD), a Japanese import used to make product design better reflect customer requirements. In
QFD. a multifunctional team measures and analyzes in great detail boih customers attitudes and
product attributes. Marketing research plays a crucial role atthis stage of the process. Then the
team creates a visual mtrix in order to find ways to modify product attributes (engineering
characteristics) so as to improve the product on the customer-based measures of product
performance. Along the way, the team must develop a series of measures of several different
types.
C. EMERGING APPLICATION OF MARKETING RESEARCH
1. Database marketing
A database is a customer list to which has been added information about the characteristics and
the transactions of these customers. Businesses use it to cultivate customers - as they seek new
customers.
Need
A database provides the means for research to support decisions. It enables profiling of customers
by searching for prospects who are similar to existing customers. It provides the means for
implementation of profitable programs of repeat business and cross-selling. It assists in marketing
planning and forecasting. Further a database can:
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• Match products or services to customers' wants and needs
• Help select new lists or use new media that ft the profile of existing customers.
• Maximize personalization of all offers to each customer.
• Provide for on going interaction with customers and prospects.
• Pinpoint ideal timing and frequently for promotions
• Measure response and be accountable for results
• Help create the offers most likely to elicit responses from customers
• Help achieve a unique selling proposition (USP), targeted to appeal to your customers
• Integrate direct-response communication with other forms of advertising
• Demonstrate that customers are valuable assets.
Types of database
1. Active customers
2. Inactive customers
3. Inquiries
Benefits of database marketing

a) Customers are easier to retain than acquire. The first reason is that it takes five times the
energy and budget to get new customer a sit does to keep an existing one. Also, a
disproportionately small number of your customers generate a very large proportion of your
income.
b) Determine their "Lifetime Value”. Building a lasting relationship becomes the obvious way to a
prosperous and profitable future.
c) Developing relationships with customers. Understanding your customers' tastes and preferences
on an individual basis is the foundation for relationship marketing. Relationship marketing
combines elements of general advertising. sales promotion, public relations and direct
marketing to create more effective and more effective ways of reaching consumers. It centers
on developing a continuous relation ship with consumers across a family of related products
and services.
2. Relationship marketing
The relationship marketing process incorporates three key elements.
1. Identifying and building a database of current and potential consumers, which records and
cross-references a wide range of demographic, lifestyle and purchase information,
2. Delivering differential messages to these people through established and new media channels
based on the consumers' characteristics and preferences
3. Tracking each relationship to monitor the cost of acquiring the consumer and the lifetime value
of his other purchases.
Reasons for Inaccuracy in Marketing Research

(1) Human behavior is always unpredictable: MR deals with humans who are far more
complex and unpredictable than the subjects of physical sciences. A human being has ability
to think and react. The responses of human beings are different unda1 different situations.
These features of human behavior bring limitations on the findings of MR.. The conclusions
drawn may not be always identical, accurate and reliable. This makes the conclusions less
scientific.
(2) Human behavior is difficult to measure precisely: MR is not fully scientific as human
behavior is difficult to measure accurately Human beings are liable to change in their outlook
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and behavior during the process of experimentation. Moreover, devices for measuring human
behavior are not available. This affects the conclusions drawn in the research work. General
conclusions about human behavior can be given. However, such rough estimates are not
completely scientific. In short, complexity of human behavior puts limitations on MR and
makes it less scientific.
(3) Human beings react differently under test conditions: MR is les^ scientific because human
beings react differently under different conditions or while testing. The human tendency is to
keep the real causes/reactions secret when interviewed for a research purpose. This affects the
quality of results of research project. Such results are not scientific to the fullest extent. It is
always difficult to collect reliable information from the persons selected for interview. It
equally difficult to verify the correctness of the information collected from them. This makes
MR less scientific.
(4) MR cannot be completely objective: MR cannot be completely objective as human beings
cannot be studied in complete isolation This is possible in laboratory work by physical
scientists, as they can shut off all outside influences during the period of experimentation
However an investigator in MR cannot be separated from the society. His attitudes and
interests are bound to affect research findings. This affects the conclusions drawn out of the
MR project.
(5) Human beings cannot be studied in isolation: In MR, it is not possible to study the behavior
of a consumer independently. It needs to be studied along with his personal interests, values,
attitudes and so on. This situation affects the behavior of the consumer and the findings of the
research work. The researcher has to conduct his study openly and has no control over the
external factors. As a result, the findings of marketing researcher are bound to be less
scientific.
(6) Dearth of reliable information: Information serves as the base of MR. The quality of
research work depends on the reliability of information collected. The information collected
in MR may not be accurate or complete. It is possible to draw only rough estimates/
conclusions from such information/data. This makes research conclusions less accurate and
reliable. Sometimes, even the attitude and approach of researchers, investigators, etc. may
make the research work less scientific.
CONSUMER ORIENTATION TO MARKETING RESEARCH:

MR is concerned with all types of marketing problems. They may related to product, price,
distribution, packaging and branding, publicity and sales promotion. All these problems are
required to be studied in the context of consumer and his expectations. In other words, MR in the
present marketing environment is essentially consumer-oriented and| not profit or product
oriented. In MR the consumer and his need, expectations and satisfaction/welfare are given
priority. All marketing aspects are studied in order to give convenience and satisfaction to
consumers. Consumer research is one important branch of MR as all research activities move
around the consumer and his satisfaction.
Consumer orientation to marketing research means making research activities pro-consumer

rather than pro-manufacturer. It also means giving more importance to consumers and their
satisfaction, expectations, needs, etc. and not merely to sales promotion and profit to the
manufacturer. Such orientation is essential as consumer is the center of all marketing activities
and his satisfaction is the base or basic consideration in modern business.
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This consumer orientation to MR is the result of modern concept of marketing, which is basically
different from the traditional concept of marketing. It is consumer-oriented and service-oriented.
It is societal in character. As a result, in the marketing research activities, special attention is now
given to consumers. All research activities are for making marketing useful, agreeable and
acceptable to consumers. This is what is described as consumer orientation of MR. Research
activities are now made pro-consumer rather than pro manufacturer or trader. Even research
techniques and methodologies are adjusted according.
The importance of consumer is now accepted not only in MR but also in all aspects of business
management. In fact, consumer is the most important person in business. He is the king and
should be treated accordingly. All production and marketing activities are for meeting his needs
and also for raising his satisfaction and welfare. He is the cause and purpose of all business
activities. Finally, modern business is not profit-oriented but consumer oriented or service
oriented. All these arguments are equally applicable to MR. In other words, MR activities move
around the consumer and his satisfaction. He is the focus point in all research projects as MR is
essentially for adjusting the marketing activities as per the expectations of consumers. This clearly
suggests the importance of consumers in all MR activities.
Marketing research helps the management to be consumer-oriented in its policies and decisions.
The benefits of MR will not be available if consumer and his needs, conveniences, expectations,
etc. are not given due attention. This suggests that neglect of consumers in any type of research
activity is undesirable and even dangerous. The benefits of marketing research will be available
only when research activities are conducted after due regard to consumer who acts as the center of
all marketing activities. Information available from consumer research can be used as a
foundation for many important marketing decisions.
Finally, it may be noted that there is nothing wrong in making MR activities pro-consumer. In
fact, this trend exists since the early growth of marketing research activities. Consumer is
important in all marketing activities and the same rule is applicable to MR activities. Research
activities without due consideration to consumers may not give expected results. In fact, the
purpose of MR is to find out precisely what the consumer wants and how to make
marketing activities agreeable to consumers in all respects such as product, price, packaging,
promotion j and so on. In brief, MR as a subject has consumer-orientation in all its| aspects.
Consumer/Customer is the cause and purpose of all marketing research activities. How to make
consumers happy and satisfied is the| basic issue before the researchers. At present, all
manufacturing/, marketing companies spend huge money on marketing research. The purpose is
to make marketing activities consumer oriented.
NEED OF MARKETING RESEARCH

The following factors suggest increasing need of MR:
1. Growth and complexity of markets: Markets are no more local in character. They are now
national and even global in character. The marketing activity is becoming increasingly complex
and broader in scope as more firms operate in domestic and global markets Manufacturers find
it difficult to establish close contact with all mark and consumers directly. Similarly, they have
no control on the marketing system once the goods are sold out to middlemen. The marketing
procedures are now, complicated. The market competition is also severe
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This situation creates new problems before the manufacturers, which can be faced effectively
through MR as it acts as a feedback mechanism to ascertain first hand information, reactions,
etc. of consumers and middlemen. Marketing activities can be adjusted accordingly.
2. Wide gap between producers and consumers: Market research is needed as there is a wide
gap between producers and consumers in the present marketing system. Due to mass sc
production and distribution, direct (personal) contact between product and consumers is
practically lost. This creates information gap between producers and consumers. The
middlemen dominate the market] scene. Producers do not get dependable information as
regards nee expectations and reactions of consumers. They are unable to adjust the products,
packaging, prices, etc. as per the needs and requirements consumers.
The problems created due to information gap can be solved Q] through MR as it is possible to
establish contact with consumers a collect first hand information about their needs,
expectations, likes & dislikes, preferences and special features of their behavior. Thus
marketing research enables a manufacturer to make his marketing policies pro-consumers.
Effective communication with consumers is a possible through MR activities. Thus, MR is
needed for removing wide communication gap between producers and consumers.
3. Changes in the composition of population and consumption pattern: In India, many

changes are taking place in composition of population. There is a shift of population from rural
urban areas. There have been considerable changes in the consumption and expenditure
patterns of consumers in India. The incomes of people, in general, are rising. This brings
corresponding increase in the purchasing capacity and buying needs and habits. The rising
prices affecting the lower and middle class consumers and their purchasing power and
purchasing priorities. Similarly, there are considerable changes in the purchasing pattern of
clothing and other consumer items. The demand for consumer durables is fast increasing. The
markets now flooded with consumer durables like TV sets and so on.
Manufacturers are expected to know such qualitative & quantitative changes in the consumer
preferences and their consumption pattern. For achieving this objective, MR activities are
necessary and useful. It is possible to adjust production and marketing operations as per the
information supplied from consumer surveys and market surveys conducted under various MR
projects. In brief, MR is needed for the study of changes in the pattern of consumption and
corresponding adjustment in the marketing planning, policies and strategies.
4. Growing importance of consumers in marketing: Consumers occupy key position in modern

marketing system. They are now well informed about market trends, goods available, consumer
rights and protection available to them through consumer protection acts. The growth of
consumerism has created new challenges before manufacturers and traders. Even growing
customer expectations create situation when manufacturers have to understand such
expectations and adjust the production and marketing policies accordingly. Indifference
towards consumer expectations may lead to loss of business. In the present marketing system,
consumers cannot be taken for granted. Their expectations need special consideration in all
marketing activities. Production needs to be adjusted as per the expectations of consumers.
Marketing research particularly consumer research gives valuable data relating to consumers. It
is possible to use such data fruitfully while framing marketing policies. Thus, marketing
decisions can be made pro-consumer through marketing research activities
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.
5. Shift of competition from price to non-price factors: Cutthroat competition is unavoidable in
the present marketing field. Such competition may be due to various factors such as price,
quality, packaging, advertising and sales promotion techniques. Entry of new competitors
creates new problems in the marketing of goods and services. In addition, market competition
is no more restricted to price factor alone. There are other non-price factors such as packaging,
branding, after-sale service and advertising which create severe market competition. Every
producer has to find out the extent of such non-price competition and the manner in which he
can face it with confidence.
MR is needed as it offers guidance in this regard. A manufacturer can face market competition
even by using certain non-price factors. The shifting of competition from price to non-price
factors has made marketing of consumer goods more complicated and challenging. This
challenge can be faced with confidence by using certain measures suggested through marketing
research.
6. Need of prompt decision-making: In competitive marketing, marketing executives have to

take quick and correct decisions. Companies have to develop and market new products more
quickly than ever before. However, such decisions are always difficult. Moreover, wrong
decisions may bring loss to the organization. For correct decision-making, marketing
executives need reliable data and up-to-date market information. Here, MR comes to the rescue
of marketing managers. Problems in marketing are located, defined analyzed and solved
through MR technique. This suggests its need as tool for decision-making. MR is needed as a
tool for reasonably accurate decision-making in the present highly competitive marketing
system.
7. Problems in the distribution system: Modern distribution system is complex and costly. How
to market goods efficiently and economically is a basic issue in the present marketing system.
Modern production is now possible because of the use of advanced technology. However
efficient distribution is rather difficult. For this, it is necessary to identify new markets, new
consumers, new channels of distribute and new sales promotion techniques. For such
identification, MR needed.
The cost of marketing is fast increasing in modern marketing. The burden of rising marketing
cost is normally passed on to consumers. This creates adverse effects on marketing activities.
In brief, obstacles large scale distribution and rising distribution costs are two problems in the
present marketing system. These problems can be studied & solved through MR activities
relating to products, distribution channel consumers and so on. This suggests the growing need
of MR.
8. Recent developments in science and technology: Science and technology are making rapid
progress. In fact, the impact of such progress touches all aspects of commercial and industrial
activities. Me products are manufactured and brought in the market. Articles with good
demand become old and out-dated within a short period Consumers prefer new/novel articles
in place of old ones. Produce and distributors find it difficult to take decisions due to lack
knowledge about future market trends. Here, marketing research useful as it provides
information about future trends in the markets field and enables marketing managers to take
quick and corn marketing decisions. This suggests the need of marketing research.
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9. Existence of large size enterprises: Modern manufacturing enterprises are large in size. Such
enterprises can work as viable units and make progress only when their products are made
popular with the consumers. Large-scale enterprises need distribution of their products on a
massive scale. Here, MR is useful. It helps the enterprises explore, identify and locate new
consumer markets. It suggests the ways and means for large-scale distribution of goods at the
national/global level. In brief, MR is needed as an essential element of large scale
manufacturing and marketing.
The factors noted above clearly suggest the growing need of MR in | the present consumer-
oriented marketing system. It is needed in order to reduce the risks and uncertainties in the
marketing activity. It supports 1 marketing managers while dealing with the marketing
problems. Marketing research is needed as it acts as a key factor in successful marketing of
goods and services.
ROLE OF MARKETING RESEARCH IN MARKETING MANAGEMENT:
(i) Close relationship between MR and Marketing Management: Marketing management

covers different areas of marketing such as production, packaging, branding, pricing, distribution,
advertising and sales promotion. Marketing research activity is closely integrated with all these
key areas of marketing. It is an integral part of scientific marketing management. This is natural
as marketing research deals with the different marketing problems of a company and offers
guidelines to marketing managers in solving such problems. In brief, marketing research acts as
one useful and reliable tool for framing marketing policies and decision-making in regard to
different aspects of marketing. It plays an important role in marketing management.
MR collects and provides information to marketing managers for decision-making. It studies
certain marketing problems and offers suggestions for solving them. It also acts as the intelligence
wing of marketing management.
Marketing management and marketing research are inter-related activities. In fact, marketing
research cannot exist as a watertight compartment nor has it any existence independent of
marketing management. It must be a part and parcel of the problem-solving process of marketing
management. MR activities in any organization must be directly related to the marketing
problems faced by that organization. This is natural as MR cannot be effective, if it is assigned
some portions of a marketing problem for exploration in a piecemeal manner. It must be supplied
with the full background required to study the whole problem in depth. This will enable the
researcher to provide reasonably accurate solution to the problems faced by the marketing
managers. Similarly, MR will be effective/purposeful, if the research activities are conducted in a
regular and continuous manner and also as per the specific needs of the marketing management.
(ii) Need of effective integration between MR and Marketing Management: Marketing

research needs to be treated as a part and parcel of total marketing management. It has to operate
as a problem-solving tool of marketing management or as an intelligence wing/tool of marketing
management. Similarly, MR should not be conducted merel1 as an academic activity but as a tool
for decision making by the marketing managers. It should facilitate quick and reasonably correct
decision-making by the top-level marketing managers. MR should act as an aid to decision-
making in the marketing management.
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This suggests that there should be effective integration in between marketing management and
marketing research. Both these activities should be effectively co-ordinated. This will ensure
efficient management of marketing activities of a company. There is no scope for any conflict in
between the two as such conflict is undesirable to the company itself. However, on many
occasions, differences of opinion and discord between research department and management are
visible Keane, John G has spelt out the conflicting points of view of the to management and
marketing researchers in the areas of research responsibility, research personnel, budget,
assignments, problem definition, research reporting and use of research.
MR will be effective/purposeful only when there is close c ordination between research and actual
management. Research activities must be necessarily relevant to the marketing problems. Both
(researchers and top-level management) should have a clear understanding and appreciation of
each other's position and role. However, in practice, conflicts are noticed between the top-level
management and the researchers. Such conflicts should be avoided.
(iii) Responsibility of top management for effective integration: The top management should
accept honestly that the researchers have a capacity to study marketing problems and offer
valuable suggestions for solving the marketing problems. In addition, adequate budget provision
and all necessary facilities should be provided to the researcher to investigate marketing problems
minutely and make suitable recommendations. The top management should keep meaningful
communication with the marketing researchers in a continuous manner. The bias attitude towards
them is certainly undesirable. Finally management should avoid too many layers of
communication between top management and researchers. It is also desirable to discuss the
recommendations of researchers with open mind. Such liberal outlook will make MR activities
useful to the marketing management.
The researchers should also adopt open and constructive approach towards the top-level
management. In the research project, attention should be given to the plans and priorities decided
by the top-level management. The researchers should continuously improve the research
methodology and see that their reports and recommendations are easily acceptable to the
management. Delay in the research work should be avoided as top-level management can
consider the recommendations if received in time as the nature of marketing problem changes in
the course of time.
0n some occasions, the management is not convinced about the utility of marketing research. This
may be due to past experience in regard to research activity undertaken. The other reasons for
unfavorable opinions about marketing research include delay in the completion of research work,
heavy expenditure involved, bulky and confusing report and finally recommendations made are
not convincing and practical. The result is that the management forms negative impression about
the very concept of marketing research. The company management fails to understand the
practical utility of research work. It feels that MR is an unnecessary activity and funds should not
be spent on the same. It is as good as waste of money as positive benefits may not available. Such
negative opinion formation is the result of previous experience of the firm. It is a type of criticism
of the researchers who failed to submit promising, result-oriented and practical research report. It
need not be treated as the criticism of marketing research activity itself. The adverse opinions of
companies on marketing research are undesirable and even dangerous to the future growth of MR
activity. Here the responsibility lies on the researchers. They have to conduct research work
honestly and also by taking keen interest in the proposed research project. As a result, the research
report and recommendations 11 be promising and easily acceptable by the management. The
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marcher should prepare the outline of research project properly and place it before the
management in a convincing manner. As a result, the management will be convinced about the
utility of marketing research project and will be willing to spend money on the same. "Many a
times, management is not convinced about the utility of marketing research and discards it as an
unnecessary activity over which no funds should be spent." is possible when the research project
is not prepared and placed properly before the management for consideration and approval.
(iv) Responsibility of researchers for effective integration: The researchers should use their
skills, experience and knowledge while conducting the research activities. Finally, they should
maintain persuasive communication as inadequate/poor communication creates bias attitude on
the part of top-level management. As a result, the recommendations are rejected or not used in
actual practice. In addition, the superiority of the top-level management in the decision-making
process should also be honored. The approach should be to help the management in all possible
ways. Such positive/constructive approach on the part of researchers will enable them to make
purposeful contribution in the field of marketing management.
(v) Present Position: MR is now given more creative role as compared to the conventional role
where it was used just for studying buyer behavior or for the feasibility studies for new products
to be introduced in the market. MR until the mid-1980s, was considered a luxury, which only
multinationals could afford. However, all companies now feel the need of MR due to growing
competition and liberalization. Realizing the contribution that MR makes, more and more
companies in India are now turning to MR.
INTERACTION BETWEEN MANAGEMENT AND MARKETING RESEARCH
Marketing research is a useful tool available at the disposal of management. At all stages of
marketing cycle it can be used. On the other hand in certain quarters misunderstandings have
cropped in about each other. Many organizations feel that marketing research is not at all needed.
On the other hand, marketing researchers point out the lack of appreciation for their work by the
organization.
Some of the organization‘s complaints about marketing researchers are:

1. Research is not problem-oriented. It tends to provide a plethora of facts, not actionable results.
2. Researchers are too involved with techniques, and they appear to be reluctant to get involved in
management problems.
3. Research is slow, vague and of questionable validity.
4. Researchers cannot communicate, they do not understand and they do not talk the language of
management.
Marketing researchers have the following complaints:

1. Management organizations do not include researchers in discussions of basic problems.
Management tends to ask only for specific information about parts of problems.
2. Management pays no more than lip service to research and does not really understand or
appreciate its value.
3. Management does not allow enough time for research. They draw preliminary conclusions
based on early or incomplete results.
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BENEFITS OF MARKETING RESEARCH
General benefits of marketing research are

1. Marketing research has made the job of forecasting and decision making easier by applying
scientific norms.
2. Through this, the changing tastes of the consumers could be identified and the firm can suitably
alter its production pattern or bring a new variety to meet in needs of the consumers.
3. By means of marketing research the type of competition that exists and the ability of the other
manufacturers could be identified.
4. It helps the sales manager to push activities further thereby to enrich the sales as well as to find
new markets and new customers.
5. It tells the management where the company stands in its industry
6. It tells management what the industry trends are & likely to be.
7. It is an essential tool in appraising and improving sales management effectiveness. Specific
activities in this area include measuring variations in territorial sales yield, market share, sales
effectiveness, measuring the effectiveness of individual salesmen and analysis of salesmen's
activities.
8. It is an essential tool in the development and introduction of new products.
9. Supplies data to be used in salesman's and territorial quotas planning.
10. Supplies the facts for fixing the budget.
11. Helps determine the advertising methods that should be used and the angle that should be
employed in the advertising copy.
12. Furnishes facts to convince dealers of the selling possibilities of given articles and to help them
to increase their sales.
13. Predicts the trend of business conditions in given industries and furnishes a basis for promotion
programs.
14. Ascertains the consumer's likes and dislikes.
15. Reports the methods used by the dealers, display, advertising and selling
16. Measures the stock in the dealer's hands.
17. Finds the dealer's reactions to given policies.
18. Furnishes data for fixing dealer's territories and quota.
19. Finds out and tabulates statistics in which the concern is particularly interested.
20. Keeps one informed about the developments in other industries, which may affect the business
of the firm.
21. Measures the purchasing capacity of a given territory.
22. Discovers new uses for the product.
23. Analyzes the cost data that are available in published form.
24. Studies the organization of the concern with a view to suggesting changes or improvements
(A) BENEFITS OF MARKETING RESEARCH TO TOP-LEVEL MANAGEMENT:

Top management is concerned with the decision-making and policy framing at the highest level as
regards production, marketing and so or it is the highest level planning, policymaking and
controlling authority in the organization. The top-level management of a business unit includes
Directors, Managing Director and other top-level marketing executives and other executives. Top-
level management has to take marketing decisions such as fixing short-term and long-term
marketing objective and sales targets, finalizing marketing policies and strategies, evaluating
marketing performance, forecasting sales, allocating resources t marketing activities and selecting
suitable marketing channels. For taking decisions on these matters, reliable and updated data are
requires and the same are provided by the MR department. This is one service that MR
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department provides to top-level management. It facilitates decision-making on marketing issues
by providing necessary information on the marketing and other aspects of business.
The top-level management needs feedback on current marketing environment and the MR
department can provide this quickly. The feedback required in this regard can be provided in a
continuous manner by the research department which studies marketing problems of the company
in a regular and continuous manner. The research department is supposed to supply information to
the top-level management on the following aspects of marketing:
(1) Current business environment (more particularly marketing environment) faced by the
company and the changes likely to take place in the near future.
(2) Trends in consumer behavior, demographic information and consumer needs/expectations.
(3) Changes in consumer purchasing power and data on demand and supply position in the
market.
(4) Trends about market competition and marketing policies of major competitors of the company
and their marketing strategies.
(5) Availability of better/cheaper raw materials and technology for manufacturing superior quality
goods at lower costs.
(6) Feedback on the marketing performance of the company and the challenges that it is facing.
(7) Sales force requirement, recruitment and development.
(8) Marketing opportunities available (domestic and foreign) and the marketing challenges likely
to develop in the near future.
(9) Any other information that the top management is expected to know for correct marketing
decision-making and policy framing.
The top-level management can take reasonably correct decisions in the following marketing areas
with the help of updated feedback available from the marketing research department:
1. Deciding the long term marketing objectives and setting marketing plans, policies and
strategies to achieve marketing objectives.
2. Designing of product or modifications in the existing products.
3. Determining the product line and adjusting the products as per the needs and expectations of
consumers and allocation of resources among various products and marketing activities.
4. Improving the brand or package design, color, etc.
5. Fixing fair pricing of the product.
6. Fixing marketing strategies in order to face the competitors‘ ever-changing market
environment.
7. Selecting suitable channels of distribution for large scale an economical marketing of
company's products.
8. Estimating sales i.e. sales forecasting for adjusting production and marketing activities of the
company.
9. Designing internal mechanism to monitor and evaluate performance of marketing department
and introduction of remedial measures, if required.
In brief, MR is the crucial analytical tool and provides management with vital strategic and
tactical information for decision-making. It guides management in the decision-making process.
However, the final decision is to be taken by the top management. The feedback of Marketing
department certainly plays a positive role in the correct decision making This suggests the
importance and benefits of marketing research to top level management of the company.
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(B) BENEFITS OF MARKETING RESEARCH TO GOVERNMENT:
Marketing research at the government level is conducted by various government departments
concerned with agriculture, industry, commerce, industrial production, exports and imports,
finance, foreign exchange and so on. These departments collect information on various aspects of
national economy. In addition, government companies, public corporations, public sector banks,
RBI/ etc. also collect information about various aspects of national economy.
In India population census, (census survey) crop surveys, surveys of industrial production,
wholesale and retail prices, cost of living index, estimates of imports and exports etc. for the
future period are conducted regularly. In addition, needs of various sectors of the economy are
estimated. Information collected through these sources is used while deciding government
policies, budgets, funds allocation, etc. This suggests how research activities are given adequate
importance attention at the government level. The data collected through census and other surveys
are used while framing economic policies, long term development plans, allocation of resources
and so on.
MR at the government level is useful in the following areas:

(1) Planning and controlling national economy: For planned economic development,
available resources must be allocated in different sectors of the economy in a rational
manner. Nation priorities must be decided clearly. The future needs of the economy must
be estimated properly and arrangements need to be made meet them properly.
Misdirection of resources must be controlled effectively. For such planned economic
development, data on important aspects of the economy need to be collected. For this,
research activities should be undertaken at different levels.
(2) Control on production, distribution and other marketing activities: Government
conducts various marketing activities on a large scale. It conducts production, looks after
distribution and even restricts consumption of certain commodities through its marketing
operations. The government has to bring equitable distribution of goods particularly
essential commodities. Reasonable prices need to be maintained for social good.
Production needs to be adjusted as per the needs of the entire economy. All such
objectives can be achieved through appropriate policies. For the introduction of such
policies, marketing research activities in the form of surveys, estimates and collection of
data are useful. Research studies are also useful for the calculation of needs of the people,
production required, consumption patterns of people and so on.
(3) Control on exports and imports: Exports and imports are usually regulated by the
government through suitable Exim policy. Exports must be adjusted as per the needs of
the economy and also as per the surplus production available. Imports must be allowed to
supplement the internal production. Large-scale imports are also necessary for export
promotion. Proper policy decisions in this regard are necessary and are also visible in the
Exim policy of the government. For framing such policy, adequate data must be available.
This is possible through research activities. Surveys conducted are useful for estimating
surplus production for exports, domestic consumption and imports required to be made. In
brief, appropriate decisions as regards exports and imports can be taken with the help of
data available through MR activities conducted at the government level.
(4) Use of MR in Miscellaneous areas: Marketing research is useful to the government in
many other areas of national economy. Such areas are: production plans (targets) in regard
to consumer goods and industrial goods, foreign exchange requirement for the future
period, regulation of production and prices, equitable distribution of goods and services,
resource allocation and allocation of funds to social service at reasonable prices and so on.
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Census reports arc useful to the government for policy framing and decision-making on
various social services such as facilities of primary education, and allotment of funds for
primary education, provision for sports and recreation facilities, provision for medical
facilities and provision for family planning and welfare facilities.
In brief, marketing research is useful to the government in bringing economic stability and
economic growth. The government can take correct decisions about various aspects of national
economy with the help of the feedback provided by marketing research activities. Finally, it can
solve economic problems and difficulties with the help research activities undertaken at the
government level. This suggests the importance of marketing research at the government level.
(C) BENEFITS OF MR TO ADVERTISING AGENCIES:
Advertising agencies are specialized professional service agencies that offer different services to
their clients as regards advertising and publicity through different media including press, TV and
radio. Such agency performs various functions and offers varied services to its clients by charging
necessary fees. Such services include booking space and time for advertising, preparation of
advertising copy, organizing advertising campaigns of clients, offering guidance to the clients as
regards packaging, branding, product modification and so on. Selection of suitable media for
advertising, copy writing, testing effectiveness of advertising, advertising planning of the clients
are some more functions/services offered by advertising agencies. Some agencies even conduct
marketing research activities on behalf of their clients.
In order to conduct its activities efficiently, an advertising agency needs adequate information and
latest trends as regards advertising and marketing. Such information includes product details,
readership details, details of different advertising media, media rates and so on. Such information
is available from different sources such as data published by newspapers, TV, radio, advertising
magazines and so on.
An advertising agency also needs information as regards new trends and techniques used in
advertising, legal and other restrictions on advertising and publicity in India, details of different
advertising media (i.e./ rates, coverage, audience, popularity of the media, etc.). Information about
market competition, new products available in the markets, advertising campaigns of competitors
of its clients, etc. is also required by an advertising agency. For this, the agency has to conduct
research activities in the field of advertising and marketing.
An advertising agency has to collect and maintain all such information in an orderly manner for
quick reference. It has to collect all useful data from different sources. Data already published on
advertising and allied subjects need to be stored by the agency for ready reference. In addition, the
agency has to conduct research activities in order to collect necessary information useful for the
conduct of its functions. A well-maintained reference library is also necessary in the case of an
advertising agency. Such activities will provide suitable feedback to the agency and the agency
will be able to offer efficient services to its clients. This suggests the importance of MR and MIS
in the case of advertising agencies.
MR supports advertising agencies in regard to advertising activities. It provides reliable and

updated information for correct decision-making on advertising budgeting, media planning,
selection of advertising media for the clients and checking advertising effectiveness. An
advertising agency can arrange advertising campaigns of its clients with the support of data
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available through MR. Finally, an advertising agency can give proper guidance to its clients on
advertising matters with the help of information available through research activities on press,
media, and so on.
(D) BENEFITS OF MARKETING RESEARCH TO WHOLESALERS:
MR is beneficial to wholesalers in the following areas of their business:

(1) Location of business establishment: Every wholesaler has to locate his business
establishment at a convenient place. Location includes location of main office, branches,
warehouses and so on. The cost of marketing will be low if the location is optimum. Here,
researchers undertake a survey of available convenient places and suggest the convenient places
for locating business establishments. Thus, for selection of convenient location, locational survey
is useful.
(2) Selection of sales territory: Every wholesaler has to select promising area for his business.
This selection is important as turnover and profit are related to the sales territory selected. For
such selection, the features of product to be distributed, market demand of different areas,
purchasing capacity of customers, possible increase in demand in future, possible benefits of sales
promotion measures, etc. need to be taken into consideration. Researchers undertake surveys of
different trading areas and suggest the best trading area to the wholesaler.
(3) Reduction of distribution/marketing cost: Every wholesaler will like to reduce the cost of
distribution as his net profit is closely linked with the cost of distribution. This cost includes
expenditure on advertising, services to retailers, discount and credit facilities offered, arrangement
for delivery of goods to retailers and so on. Such distribution cost needs periodical review in order
to check wastage and liberal expenditure on distribution. Reducing distribution cost is difficult
due to market competition but efforts should be made in this regard with the help of experts i.e.
researchers. They suggest ways and means to bring down the cost of distribution without any
adverse effect on total sales.
(4) Decision on number of commodities for distribution: Every wholesaler has to decide the
number of product lines he can handle efficiently. He has to decide the number of items that he
can distribute effectively. Sometimes, marketing of limited items with good demand may be
profitable. Similarly, stocking of different items may prove to be costly. In addition, every
wholesaler has to consider his financial position, manpower available and storage facilities
available while deciding the number of items for the business. Marketing researcher can study all
relevant facts and offer suitable guidance to the wholesaler in this regard.
(5) Storage and handling of goods: Every wholesaler has to maintain adequate stocks for
smooth and regular supply of goods to retailers. Naturally, he has to give attention to storage,
handling and transportation of goods. He has to conduct these activities economically. The
wholesaler can undertake studies in these areas in order to find out ways and means for handling
these activities speedily and economically. For this, research studies are useful.
(6) Miscellaneous benefits to wholesalers: Marketing research is also useful to wholesalers

while dealing with other aspects of marketing. They include cost-profit analysis, stock handling
and delivery procedure, credit recoveries, incentives to retailers for their loyalty, sales promotion
measures and so on.
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In short, MR offers guidance to wholesalers while dealing with their problems and difficulties. It
is useful for the expansion of business and also for raising the margin of profit in the business.
Wholesalers can undertake such research directly by making suitable internal arrangements. They
can even study the published material and use it for the benefit of their business operations. Many
wholesalers do not conduct their own research studies but take advantage of research studies
conducted by others.
(E) BENEFITS OF MARKETING RESEARCH TO CONSUMERS:
Consumers do not conduct MR activities on their own. However, the benefits to all research
activities are available to consumers. In fact, the purpose of MR is to study/understand the needs,
expectations, problems, etc. of consumers and to give maximum possible convenience and
satisfaction to them. This suggests that consumers secure the maximum benefits of research
activities indirectly as all research activities are basically for the benefit and convenience of
consumers.
The benefits of MR to consumers are as noted below:
1. Supply of goods and services as per the needs and expectations of consumers. MR provides
wide choice to consumers. Consumers get wide variety of goods at fair prices due to MR
activities.
2. Suitable adjustments in the products (as per the requirements of consumers) through
product planning, product innovation and product modification.
3. Supply of goods at right place, time and also at the right price.
4. Better return (in terms of convenience, satisfaction and welfare) of the price paid for goods
and services.
5. Protection of the rights of consumers and prompt redressal of complaints relating to price/
quality, use, etc.
6. Availability of new / innovative products as per current socio-economic-cultural needs.
7. Provision of wide variety of goods for the convenience of consumers.
8. Better quality after-sales services.
9. Fair treatment and prevention of exploitation of consumers.
10. Production as per the expectations of consumers.
11. Provision of wide choice to consumers.
(F) BENEFITS OF MR TO SMALL BUSINESSMEN:
In general, MR is useful to all categories of businessmen - small or big. Small businessmen

include small-scale manufacturers, small-scale dealers, retailers and so on. They can adjust their
business policies and \ activities as per the information available from the research activities. They
can take decisions regarding location of business/ sales territory, commodities for manufacturing
or marketing, sales promotion policies, storage of goods, credit policies, pricing policies and so on
with the help of information available through research activities.
A small businessman may not be able to maintain separate research department for the conduct of
research activities. However, he can collect necessary information from census reports, other
financial and marketing reports, etc. published by different agencies. He can even refer to market
reports and other reports on current economic issues and adjust his business policies accordingly.
This is how marketing research is useful to small businessmen in the conduct of all their business
activities properly and with foresight, imagination and vision.
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Small businessmen have to adjust their business policies and activities as per the need of the
situation. Here, they use the research techniques (knowingly or unknowingly). This suggests that
marketing research is useful to large business houses as well as small businessmen. In the case of
small businessmen, the use of MR may not be extensive as in the case of large business houses.
However, small businessmen study market situation as per their business needs, use available
information on market competition, consumer needs, etc. and adjust their business plans, policies
and operations according. This is precisely the manner in which they use marketing research for
their benefit.
Reasons for the Failure of Marketing Research:

1. There is resistance on the part of the business executives to use research, because they think
that research is a threat to their personal status. They also think that marketing research may
expose them adversely.
2. Sometimes, the executives develop their own objectives, which are in conflict with the
organization, and they want research to support their views rather than the views of the
organization.
3. The executives are unable to use specialists effectively. Marketing research presently draws on
a variety of specialists from such disciplines as mathematics, statistics, economics, psychology,
sociology, general semantics, anthropology, etc.
4. Marketing research department is often isolated from key departments.
CHARACTERISTICS OF GOOD MARKETING RESEARCH
The duty of marketing research is to solve the problems of the organization relating to its sales
and related marketing issues. As such it is considered to be a primary tool by several
managements and as a secondary tool by many managements. In spite of its drawback of arriving
at exact results with complete accuracy, corporate world has accepted its relevance. One such
drawback posed against marketing research is its cost-effectiveness. If the tools used are crisp and
less costlier its service could be welcomed by all. For such recognition marketing research must
possess certain characteristics, which are mentioned by Philip Kotler as follows:
1. Scientific method: Competent marketing research is characterized by an attempt to follow the
scientific method, careful observation, formulation of hypotheses, prediction and testing.
2. Research creativity: At its best, marketing research develops innovative ways to solve a
problem.
3. Multiple methods: Competent marketing researchers keep away from over reliance on any one
method, preferring to adopt the method to the problem rather than the other way round. They
also recognize the desirability of the simultaneous gathering of information in different ways to
give greater confidence than any one method would provide.
4. Interdependence of models and data: Competent marketing researchers recognize that the
facts do not speak for themselves but rather derive their meaning from models of the problem.
They attempt to guide their search for information on the basis of causal decision model to help
the executive.
5. Value and cost of information: Competent marketing researchers show concern for measuring
the value of information against its cost. Value/cost is a consideration when the Marketing
Research Department chooses which research projects to conduct, which research designs to
use and whether to gather more information.
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BASIC VS. APPLIED MARKETING RESEARCH:
Research can be divided into two classes viz., basic research and applied research.
(1) Basic Research
Often basic research is called 'theoretical‘ 'pure' or 'fundamental' research. It is not directly
concerned with solving marketing problems. Primarily it aims at improving academic knowledge
about the subject matter. Basic research does not deal with commercial problems but it relates to
fundamental questions concerning the business and allied subjects. Basic research may address
itself to issues like economic and political changes in a country or reasons for changes in lifestyles
in youth.
(2) Applied Research
Applied research directly deals with commercial problems. It tackles the business problems and
attempts to find alternative solutions to the problems. Applied research may relate to locating
reasons for fall in sales or to introduce a new brand of product.
Applied research can be of two types (a) problem-solving research and (b) problem-oriented
research. As the name indicates problem-solving research relates to a specific problem. This
research can be conducted either by the marketing research department of the firm or by an
outside research agency. By contrast problem-oriented research deals with problems that may be
of interest to many firms. This type of research puts into practice the knowledge obtained through
basic research.
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METHODS OF CONDUCTING MARKETING RESEARCH
The methods of conducting marketing research are broadly classified into the following four
categories:
(1) Desk Research: In desk research, the required information for research work is collected from
published and other written sources of information available. Desk research is useful for the
collection of secondary data. Secondary data are already collected for some other purpose but
can be used conveniently by borrowing the same. Desk research is a type of in-house
research.
(2) Field Research/Investigation: In field investigation/survey method, the required information
is collected from the consumers, dealers and others connected with marketing. In addition,
consumers surveys are also conducted for this purpose. The data collected from such field
investigation are called primary data.
(3) Observation Method: In observation method, the required information is collected through
actual physical observation of one or more phenomena under study. This method is also
useful for the collection of primary data.
(4) Experimentation Method: In experimentation method/ the required information is collected
through a small scale experiment under controlled conditions. This method is used for
primary data collection.
The methods of data collection noted above have their special features, advantages and
limitations. The researcher has to select any method convenient to him. Collection of reliable and
authentic data is more important than the specific method used for data collection.
DESK RESEARCH
MEANING AND FEATURES OF DESK RESEARCH:
Desk research means research activity conducted with the help of established information (data)
by different agencies and also by using the information available from the internal sources of the
company. The information published in trade journals, commercial press and data internally
generated by the company are used for the desk research. Thus it is a critical study of published
information (data). Such research is usually conducted within the marketing research department
of the company by the research staff appointed.
Desk research is simple and economical in nature. It saves time and money on research work to a
considerable extent as field investigation for data collection is avoided. However, companies
generally do not depend fully on desk research. They prefer to supplement desk research with
field investigation. Desk research does not involve field work/survey work of any type. Naturally,
desk research is rather easy and quick. It is actually finding out the required information from
published journals, etc. and using it for the study of marketing research problem.
ADVANTAGES/MERITS OF DESK RESEARCH:
(1) Easy and quick: Desk research is easy and quick as required information is available from
different agencies and sources -internal and external. Time in data collection is reduced in
desk research as available data are used for research purpose.
(2) Economical: Desk research is economical as information can be collected easily through
libraries or by paying subscriptions. This reduces the expenditure on research activity.
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(3) Reliable data available: The data available in published form are generally reliable as they
are collected by responsible agencies and institutions. This brings accuracy to the conclusions
drawn through desk research.
(4) Absence of interviewee’s bias: The published data are factual and away from interviewee's
bias. Naturally, the information available is more reliable/dependable.
(5) Convenience: Desk research is convenient as it relieves from the botheration of field
investigation, tabulation, analysis and so on.
(6) Suitable to small firms: Desk research is convenient in the case of small firms and non-profit
organisations.
DISADVANTAGES/LIMITATIONS OF DESK RESEARCH:
(1) May not be exactly as per needs: The published data may not be always reliable and exactly
as per the needs of survey work undertaken. The researcher has to make proper scrutiny
before using published data.
(2) Needs modification: Secondary data need suitable modification before actual use for research
purpose. This is necessary in order to adjust data as per the need of the research work
undertaken.
(3) Testing required: Published data need proper testing through field investigation for
verification of validity and reliability.
(4) Too much dependence undesirable: Too much dependence on published data is undesirable
and even dangerous. The conclusions drawn from such data may not be dependable. Desk
research is not always dependable.
(5) Secondary method: Desk research is a secondary method of MR. The data used in the desk
research are secondary and may not be exactly as per the need of research study.
(6) Lacks practical-orientation: Desk research is like library research work and lacks practical-
orientation.
SOURCES OF PUBLISHED INFORMATION (SECONDARY DATA):

In the desk research, published information is used extensively. Such information is
available from internal and external sources. Normally, information (secondary data) for
desk research is available from the following sources:
(A) External Sources:
External sources are the reports and publications of various agencies including commercial press.
External sources are used when internal records are not adequate or do not provide the required
information readily.
(1) Trade Journals: Trade journals are published regularly for the information and guidance of
business community. They collect and publish commercial information regularly. Some
journals even conduct surveys and publish- the data collected. Companies can subscribe to
suitable journals and use the information published therein. A researcher can even refer to
back issues of known journals for reference purpose. In India, large number of trade journals
are published. They include, "Business Today", "Business India" and so on. Even business
newspapers (e.g.. Economic Times) publish varied information on industrial, financial and
economic matters. Such information can be used for research purpose.
(2) Directories: Trade directories are published by different agencies like chambers of commerce
and trade associations. They supply information in a compact form to researchers for different
purposes.
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(3) Subscription Services / Syndicated Services: Some commercial organisations collect and
supply information on specific subject/subjects regularly to its subscribers. Interested
companies should pay the subscription fees periodically and in return they get required
information in a compact form which can be used for research purpose.
(4) Publications of Trade Associations and Chambers of Commerce: These associations
collect and supply trade information to their members through journals, special reports, annual
reports, booklets and other publications. Sometimes, surveys and special studies are conducted
and the reports are given wide publicity through such publications. These associations
maintain reference libraries for the benefit of their members and researchers where Indian as
well as foreign journals are made available for reference purpose.
(5) Publications of Management and Economic Consultants: Management consultancy
companies collect information on business matters and give publicity to the same. This
information is useful for research purposes. Even the research reports prepared by MR
organisations can be used in the desk research
(6) Publications of Banks and Financial Institutions: Banks, financial institutions, investment
trusts and stock exchanges publish information on financial matters through their annual
reports and other publications. In India, RBI publishes information on all aspects of Indian
economy regularly. Such publications provide reliable statistical information to researchers.
(7) Company Reports: Public limited companies publish their annual reports and financial
statements which contain information about their activities and also about general economic
situation in the country. Such reports can be used for desk research purpose
(8) Specialised Libraries: In cities like Mumbai and Delhi, specialised libraries are available.
They provide whatever information is required by researchers. Even the libraries of foreign
embassies are useful for data collection on commercial matters
(9) Government Publications and Publications of International Organisations: Government
departments, public corporations and other government agencies publish information of varied
nature through their publications. Census reports are also published by the government. Such
reports provide valuable information to researchers. Along with this, international agencies
like IMF, WTO, FAO and other agencies of United Nations publish useful information on
trade, finance and other economic matters. Such information can be used for desk research.
(B) Internal Sources:

Along with external sources of secondary data, internal sources also supply sufficient information
for research purpose. Internal sources are the documents, registers, and records (accounting and
sales force) available within different departments of the organisation itself. Huge internal data
are available within the organisation but in an unorganised manner. Such data need to be
collected and arranged properly before actual use in the research project. Researchers go to
external sources when they are unable to get required data within the organisation itself. Various
departments of the company can provide information in the form of
(1) periodical statements, reports and statistical data.
(2) Past research reports, files, documents and correspondence of the company are also useful for
reference purpose.
(3) sales orders, customer's complaints and sales reports of different areas are useful for
marketing research.
(4) salesmen‘s reports are useful for securing information about market situation.
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INTERNAL V/S EXTERNAL SOURCES OF DATA COLLECTION
Internal Sources External Sources

Meaning Internal sources of data External sources of data
collection means data collection means the use of
collected from the documents data published by external
available with the company agencies.
Use of information Information available from Information available from
internal sources can be used external sources cannot be
directly for research purpose. used directly as it is.
Modifications are not required Modifications as per the
nature of research work are
required.
Examples Purchase records, sales Trade journals, annual
records, periodical sales reports of companies,
reports and annual reports are surveys conducted by press,
the examples of internal census reports etc. are
sources of data collection examples of external sources
of data collection.
Coverage Limited coverage as they Wide coverage as they are
relate to company only. varied in character
Reliability Internal sources are more External sources may not
reliable as they supply supply accurate data.
accurate data. Verification of Naturally, a verification of
data is not required data before actual use is
necessary
Availability Internal sources are easily External sources are not
available and that too without easily available Money is
any extra cost. required to be spent on
them.
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Evaluation of Secondary Data
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ADVANTAGES/MERITS OF PUBLISHED DATA:
(1) Easy and economical availability: Published data are available easily, quickly and
economically.
(2) Extensive availability: Published data are available extensively on all aspects of marketing
and can be used by referring to different sources This enables the researcher to make his
primary data collection more specific and relevant to his study.
(3) Supplementary role: Published data can be used as a good supplement to data collected
through field investigation It supports and fill in the gaps in the primary data used Moreover,
the researcher gets additional information about the problem under study His understanding of
the marketing problem improves.
(4) Facilitates completion of research work: Completion of research project without using
published data is difficult as such data are needed when adequate primary data are not
available Published data bring completeness to the research project.
(5) Facilitates comparison: Secondary data can be used as a basis for comparison with the
primary data collected by the researcher
DISADVANTAGES/LIMITATIONS OF PUBLISHED DATA:

(1) Old and outdated nature: Published data available may be old and outdated. The use of such
data is irrelevant for research purpose. In fact, the utility of secondary data declines
progressively as the period goes.
(2) May not be complete and reliable: Such data may or may not be complete, accurate and
reliable. It is rather difficult to find out the reliability of published data. Moreover, use of
unreliable published data is dangerous for research purpose.
(3) Too much dependence undesirable: It is not desirable to depend too much on the published
data for research purpose as there is always a time gap in between the collection and
publication of such data. Moreover, the deficiencies of published data will be carried forward
in the research project undertaken.
(4) May be of bias nature: The bias of the collecting agencies may be reflected in the research
work or research report when published data are used extensively.
(5) May not be directly adjustable (relevant) to research project undertaken: Secondary data
rarely fit perfectly into the framework of marketing research problem under investigation.
Such data are not exactly as per the need of research project undertaken. The data may not fit
info the needs of investigation.
PRECAUTIONS TO BE TAKEN WHILE USING PUBLISHED DATA:
(1) Published data has certain limitations and should be used in the research work only when
absolutely essential or when available as per the requirement of the research project.
(2) Data published by a reputed and reliable agency should be used for research purpose.
(3) Too much dependence on published data for research purpose should be avoided.
(4) Old and outdated published data should not be used.
(5) To the extent possible verification of published data should be made before actual use in the
research project. Such evaluation avoids the use of unsuitable/unreliable data in the research
work.
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FIELD INVESTIGATION/SURVEY METHOD
MEANING OF FIELD INVESTIGATION/FIELD SURVEY:
In addition to desk research, marketing research can be conducted through field investigation. For
this, field surveys are conducted. They are used for primary data collection in MR. Survey means
a planned attempt to collect required information from a representative sample of the relevant
population. Field investigation means collecting first hand information by actually visiting
markets or meeting consumers and dealers who are directly connected with the marketing
activities. Data collected for the first time through field survey are called primary data. Here, the
data are collected through suitable questionnaire and interviewing a limited number of people (a
sample) selected from a/large group. Customers, traders and suppliers are the major sources
supplying primary data.
The primary data collected are superior to secondary data. Researchers turn to the primary data in
order to overcome the limitations of secondary data which include incompatibility, obsolescence
and bias. Primary data are also necessary when the secondary data are incomplete. Researchers
prefer to use both primary and secondary data for research purpose as depending fully on
secondary data is not fair. Primary data need to be collected from different sources such as
surveys, observation and experimentation.
The primary data are reliable. However, the problem in primary data is its cost, both in terms of
money and time required for collection. In addition, researcher's bias also creeps in. Even with
such limitations, the primary data are important and useful in MR.
Primary data are of two types: (a) Census, and (b) Sample, Census refers to collection of data
from the entire population. In India, population census is taken after every ten years, (the latest
census was taken in 2001). It is a lengthy and costly method. As a substitute to census, sampling
method of data collection is used.
Sample refers to a pie taken from the population. Sample is a small representative of the whole
universe. If the sample size is fair, the conclusions drawn are applicable to the entire universe.
Random sampling is a popular method used for data collection.
Sampling is an integral part of data collected through surveys. Sampling is used to collect primary
data when the sources of data are too many to be exhaustively handled. A sample is only a
representative portion of the universe/population. The sample needs to be decided clearly before
starting the survey work.
Field surveys are conducted extensively for the collection of primary data. Personal interview and
telephone interviews are arranged for field surveys. A survey consists of gathering data by
interviewing limited people. Such survey relates to consumers and other marketing activities.
In survey method, direct communication with consumers/dealers is established and information is

collected from them through questionnaire. Survey method is more effective and reliable as
compared to desk research. According to Tull and Hawkins, "Survey is the systematic gathering
of information from respondents for the purpose of understanding and for predicating some aspect
of the behaviour of the population of interest."
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DESK RESEARCH V/S FIELD RESEARCH:
Desk Research Field

Research/Investigation
Meaning Desk research is the research Field research is the
conducted within the research conducted outside
marketing research the research department.
department of a company. It The information is collected
is like library research work straight from the
consumers, dealers or
markets
Sources used The sources of desk research The sources include
are like trade journals, personal interviews,
government reports, census telephone surveys and
reports and subscription consumer panels. In
service addition, observational and
experimentation methods
are also used
Time and Cost involved Desk research is an easy, Field research is a time-
quick and less expensive. consuming and costly
method of conducting
marketing work
Type of data that is The data collected are based The data collected are
collected/used on published data (secondary primary data and
data) available. The testing conclusions drawn are
by field investigation is based on actual field
absent. investigation and are
accurate and reliable.
Testing is also possible
Position of investigators The data collected are free The data collected and
bias from investigator's bias conclusions drawn may
have interviewer's bias
Nature of method Secondary method of MR. Field research is the oldest
Used to supplement field and primary method of
investigation and other marketing research and is
methods of data collection used extensively even at
present
Data used Desk research uses secondary Field research uses primary
data for research data for research work
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METHODS OF FIELD INVESTIGATION/MARKET SURVEY:
Survey methods are useful for the collection of primary data through interviewing. Field work
calls for a lot of managerial and administrative skills on the part of the research agency. It should
be properly planned and also supervised. The time schedule of field work must be strictly
followed and the responses must be recorded accurately and honestly. Every survey method has
its special features, advantages and limitations. A researcher should select suitable survey method
for his research project and use it in a systematic manner. It is not possible to treat specific survey
method as the best. The researcher has to consider the nature of research project, the type of
information required, funds and time available, etc. and select one or two suitable survey
methods. The use of survey method is essential for the collection of primary data on a marketing
problem under investigation.
Field investigation is one of the most widely used MR methods. Field investigation methods are
important, as they are more accurate and reliable. Here, direct communication is established with
the consumers and information is collected by asking relevant questions. Naturally, the
information collected is accurate, first hand and factual. The conclusions drawn from such data
are more accurate/ reliable.
The rate of response to field investigation is generally positive. Investigators can even collect
additional information through personal interviews. It is not possible to study market situation and
consumer needs by reading published information. In this sense, field research is superior to desk
research.
All companies give special importance to field investigation and use it as a good supplement to
desk research. Market survey/field investigation is normally used if the required data are not
available from the company's internal records or from external published sources. MR will not be
comprehensive, complete and reliable unless field investigation is conducted extensively. In fact,
the quality of research work and its practical utility in decision-making depend on the extent to
which field investigation is carried out. This clearly suggests the importance of field investigation
in MR.
There are four important methods used in field investigation/survey. These survey methods are:
(a) Mail surveys
(b) Telephone surveys
(c) Personal interviews
(d) Panel Research.
(a) MAIL SURVEY

MEANING AND FEATURES OF MAIL SURVEY:
Mail survey (also called mail interview) is one method of data collection through field
investigation. Here, questionnaire is prepared for the collection of specific information required
for research purpose. The questionnaire is sent by post (mail) to potential respondents with a
request to complete the same and return by post to the mailing company/research agency. The
completed questionnaires received are checked and arranged properly. The information given
therein is tabulated and analysed in an impartial manner. Finally, conclusions are drawn for
framing policies and decision-making.
In mail survey, interviewer is not available for asking questions, for guiding respondent and for
noting the information. On some occasions, the questionnaire is published in the newspapers and
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readers are asked to supply information. In addition, copies of questionnaire are supplied to
retailers with a request to collect completed questionnaires from the customers. Even the
questionnaire may be supplied to consumers along with product's package with a request to
supply information. These methods are not used extensively due to poor response from the
consumers. Normally, the questionnaire is posted to the address of the consumer and he is
requested to supply information by answering the questions asked.
Mail/post office is used as a medium for the conduct of survey and hence it is rightly called mail
survey. This method of survey is a complete antithesis of the personal interview. Here, the
interviewers are not involved and naturally away from interviewer's bias. Wide area can be
covered as postal facility exists in the whole country.
National surveys can be conducted through mail survey as contact with large number of
respondents is possible with the medium of post office. Mail survey needs to be planned properly
for positive response from the respondents. Similarly, questionnaire prepared for the collection of
information should be ideal/promising.
Mail survey is economical as compared to personal interview. The respondents are given full
explanation of the purpose of the survey with a request to give necessary co-operation by
supplying required information in the space provided in the questionnaire itself. Stamped
envelopes (reply paid envelopes) are also sent along with the questionnaire for quick response
from the respondents. Care is also taken to see that the respondent remains anonymous. In the
questionnaire, alternate replies are suggested and the respondent has to make tick marks on the
questionnaire itself. This gives convenience in the tabulation work as the use of computers for
tabulation is possible.
Sometimes, small gift is also offered to respondents in order to have positive response from them.
The respondent can study the questionnaire leisurely and give replies independently as per his
desire. Naturally, the replies are given carefully and without pressure/tension. It is possible to
contact respondents from different parts of the country by preparing a comprehensive mailing list.
Mail survey method is now extensively used for marketing research.
ROLE OF QUESTIONNAIRE IN MAIL SURVEY:

In mail survey, questionnaire plays an important role. Naturally, it should be prepared with proper
care. The questions asked should be clear and worded in a simple and clear language. The
questions should be relevant precise and logically arranged.
Lengthy questionnaire should also be avoided in mail survey as respondents may not like to
answer a long questionnaire. Questionnaire should contain "control" questions which indicate the
reliability of the respondent. Finally, questions of personal nature should be avoided. In mail
survey, the response from the respondents largely depends on the quality of questionnaire
prepared and hence special attention should be given to this aspect. In fact, the success of mail
survey mainly depends on the manner in which the questionnaire is drafted.
MERITS OF MAIL SURVEY:

(1) Economical: Mail survey is economical as only postage and printed questionnaire are
required. The cost of survey is limited as interviewers, supervisors, etc. are not required in
mail surveys.
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(2) Wide coverage: In mail survey, wide geographical area can be covered by survey as postal
facilities are available all over the country. Information can be collected from large number of
respondents spread over the whole country by preparing a comprehensive mailing list.
Information can also be collected from those with whom face to face interview is not possible.
(3) Speed in data collection: Mail survey method has a speed. Large number of respondents can
be contacted within a short period and information can be collected from them within a
reasonable time. It is possible to send hundreds of questionnaire within a week and
information will be available from many of them.
(4) Avoids interviewee’s bias: In mail survey method, interviewees bias and errors are
eliminated. Guidance/hints are not given to the respondents. As a result, first hand reliable
information is available for survey purpose. This improves the quality of research work and
the conclusions drawn.
(5) Convenience to respondents: Respondents can answer the questionnaire at their own
convenience. They can supply information even while remaining anonymous. Respondents
are likely to be more thoughtful as they have not to give answers on the spur of the moment.
Thus convenience to respondents is one major advantage of mail survey technique.
(6) More information available: It is possible to collect more information by using both open
ended and close ended questions in the mail survey questionnaire.
(7) Investigators not required: The services of investigators can be dispensed with as personal
contact with the respondents is not required in the case of mail surveys. Expenditure on staff
training and supervision on survey work is also eliminated.
(8) Simple and direct method: Mail survey method of data collection is extremely simple, clear
and direct as only questionnaires are to be sent as per the mailing list prepared. If necessary,
reminder may be sent to the respondents but this expenditure will be limited.
(9) Centralized control: Mail surveys are often conducted from a single office and this brings
centralized control on the whole survey work.
(10) Convenient to medium/small companies: Mail survey method is convenient to small and
medium sized companies. It can be used conveniently for collecting information from
consumers spread over a wide geographical area.
(11) Views of family members available: In mail survey, views of respondents as well as of their
family members are collected as they participate while giving replies. Moreover, as
respondents remain anonymous, they are likely to give honest replies.
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LIMITATIONS OF MAIL SURVEY:
(1) Problem of "No replies": "No replies" is one major disadvantage of mail survey.
Respondents do not take interest in the survey work and do not send the replies. Very few give
positive response to the questionnaire. Others send replies only when reminder is sent. Many
others do not send replies at all. Some others give incomplete response by not answering all
questions asked. Thus, poor response to mail questionnaire (High non-response rate) is one
important disadvantage of mail survey.
(2) Updated mailing list required: For mail survey, up-to-date and comprehensive mailing list
covering cross section of the society is necessary. The researcher may not have such accurate
list of respondents at the state or national level. This affects the area covered by the survey.
(3) Poor response, if questionnaire is defective: Questionnaire acts as a base of mail survey.
The response will be limited if the questionnaire is too lengthy or if it contains difficult and
confusing questions. Sometimes, busy persons ask their assistants to give replies. This affects
the quality of mail survey conducted.
(4) Lacks accuracy of information: In mail survey method the researcher cannot verify the
accuracy of the information given by the respondents as he has no control on the respondents.
There may be inconsistency/ambiguity in the answers given. The researcher has to accept or
reject the information supplied.
(5) Limited use: Mail survey method is of limited use in qualitative study or in causative
research.. For probing psychological motivation, mail survey method is not suitable.
(6) Effects of ambiguous questions: There is a possibility that some questions may not be
understand by large majority of respondents. This may be due to ambiguity in the questions
asked. As a result, the respondents may not give answer or may give answer which may not be
correct or relevant. This affects the final outcome of the survey.
(7) Changes in questions not possible: It is rather impossible to amend the approach or questions
or their wordings once the questionnaire is issued to the respondents. This brings rigidity in
the survey work. Required information about certain aspects of the survey may not be
available if the questions asked are confusing.
(8) Not suitable when quick information is required: Mail survey is not convenient when the
researcher needs information quickly i.e. within two or three days. Mail survey is normally a
time consuming activity. In addition, postal delays are quite common.
(9) Non-verbal responses are not noted: It is not possible to gather non-verbal responses in the
case of mail survey. The benefit of personal observation by the interviewer is also not
available.
(10) Not suitable for spontaneous answers: Mail survey is not suitable when the researcher is
interested in the spontaneous answers from the respondents.
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(b) TELEPHONE SURVEY
MEANING AND FEATURES OF TELEPHONE SURVEY:

Telephone survey/Telephone interview is another method of field investigation. It is a popular
alternative to personal interview. Here telephone is used as a medium of communication as there
is only vocal interface between the interviewer and respondent. In telephone survey method,
telephone is used as an instrument for the collection of information from the respondents. Here/ a
brief interview of the respondent is taken on telephone. The respondent is contacted on phone,
questions are asked on the subject matter of survey and information is collected from him for
further processing. It is a type of oral interview with the respondent who is necessarily a telephone
subscriber.
Telephone survey is a quick and economical method of survey as response is immediate and wide
area can be covered without actual travelling to different places and parties. Telephone survey is
similar to personal interview but personal contact with the respondents is absent. It is used as a
substitute for personal interview. Originally the use of telephone was restricted to monitoring
audiences for radio and TV programmes. Now, telephone is used for collecting information on
marketing problems. Industrial surveys and trade surveys are also conducted by using this
method. Computer-Assisted Telephone Interviewing (CATI) and Direct Computer Interviewing
(DCI) are new developments in the field of telephone surveys.
MERITS OF TELEPHONE SURVEY:

(1) Economical: Telephone survey is economical as compared to personal interview. Moreover,
busy persons like doctors and professionals are available as respondents in the case of
telephone survey.
(2) Quick response: It can be conducted quickly and rapidly. The information is available
quickly. No time is needed for travelling, etc. Prompt answers is one special benefit of
telephone survey.
(3) High speed: There is high speed in telephone survey as large number of interviews can be
completed within one day. It is also possible to use tape records for data recording.
(4) Information available from VIPs: People who are difficult to contact personally are
available for telephone interview. Many busy people are not prepared to grant personal
interview but they are willing for brief conversation on telephone. For such respondents,
telephone survey is convenient.
(5) Simplicity: It is a simple method of conducting MR as information can be collected from a
small office with telephone facility.
(6) Frank response: Experience proves that respondents are more frank (free response) on
telephone interviews and give quick response. They are willing to answer delicate/personal
questions over telephone than personally.
(7) Orderliness: There is orderliness in telephone survey. The questions are arranged logically
and are asked in a planned manner.
(8) Sample selection easy: A list of telephone subscribers can be prepared easily for the purpose
of telephone survey. This means the sample selection is easy.
(9) Secrecy of respondents: Anonymity and confidentially as regards the name of respondent and
information supplied are possible.
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LIMITATIONS OF TELEPHONE SURVEY:
(1) Brief questionnaire required: In telephone interview, the questionnaire must be brief
because lengthy interview with the respondent is not possible. As a result, telephone interview
is useful for collecting limited information on specific points as the length of telephone
interview is always very short. A respondent can close the conversation quickly as per his
desire.
(2) Limited / Brief information available: In telephone interview, the replies given by
respondents are always brief and limited information is given. The communication with the
respondents is oral/verbal. Detailed discussion is not possible. Interview length is limited. This
narrows down the scope of survey. There is time limit for telephone interview. Even visual
aids cannot be used in telephone survey.
(3) Difficult to contact large number of respondents: It is difficult to contact large number of
respondents, as many persons do not have telephone facility. As a result, the coverage of
survey is limited. Similarly, many people may not be willing to talk over telephone. This
restricts the scope of telephone survey.
(4) Non-verbal responses are not available: In this method, observation of respondents is not
possible. As a result, non-verbal responses cannot be seen and noted.
(5) Non-availability of proper sample: In telephone survey, it is difficult to get a representative
sample. It is only the list of telephone subscribers which can used for selecting samples.
(6) Limited coverage of sample: Respondents from remote places cannot be contacted by this
method. Even poorer sections of the society are not covered by telephone survey.
(7) Limited questions: Questions of very personal nature or questions requiring lengthy answers
cannot be asked in telephone interview. This makes the interview incomplete. Bias on the part
of respondent is also possible.
(8) Interviewer’s bias: There is a possibility of interviewer's bias in this survey method.
(9) Difficulty in checking validity of information: It is difficult to check the validity of
information supplied on phone. Even the person on telephone may not be the real respondent.
(c) PERSONAL INTERVIEW

MEANING AND FEATURES OF PERSONAL INTERVIEW:
Personal/face-to-face interview is one popular and extensively used method of primary data
collection for MR. It is probably the oldest method/technique of MR. It consists of a two-way
conversation initiated by the interviewer for obtaining information on specific issues.
Interviewing, in fact, is a social process; it involves an interaction between the two for specific
purpose. It is a purposeful conversation between the interviewer and respondent for specific
purpose. According to C. William Emory, "Personal interviewing is a two-way purpose
conversation initiated by an interviewer to obtain information that is relevant to some research
purpose".
The backbone of personal interview is the questionnaire prepared for specific survey. The
interviewer uses this questionnaire as a base and collects the required information from the
respondents.
For effective and purposeful personal interview, the interviewer needs proper education and
training. He must ask the questions properly and encourage the respondent to supply maximum
possible information. He should also note the additional information, if any, supplied by the
respondent. The interviewer should be aware of the purpose for which the survey is being
conducted.
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The outcome of personal interview largely depends on the ability, maturity and sincerity of the
interviewer. The response from the respondent largely depends on the interest and initiative of the
interviewer and the manner in which the interview is being conducted by the interviewer.
The interviewers general responsibilities are as noted below:

(a) To locate informants.
(b) To translate these contacts into purposeful interviews.
(c) To collect valid and reliable responses.
(d) To record all such responses accurately.
Personal interview method is certainly superior as compared to mail / telephone survey methods
of data collection. There is direct communication in personal interview and the interviewer is in a
position to collect additional information about the subject matter of research project and also
about the respondent. This method is costly and time-consuming but is treated as an ideal method
as it provides maximum possible information from the respondents. As a result, personal
interviewing retains its long held dominance across a wide spectrum of surveys - market, social,
political.
TYPES OF PERSONAL INTERVIEW:

(A) Individual interviewing involves talking with individual persons in their homes or offices or
even on the street.
(1) Structured Interview: In the structured interview, detailed questionnaire is prepared for
the purpose of interview This questionnaire is similar to the questionnaire prepared for mail
survey The interview is taken as per the questionnaire prepared This method brings uniformity
in the survey work Limited choice/freedom is given to respondents while answering questions
Possible answers are given and they have to select one of them
(2) Semi-structured Interview: In the semi-structured interview, the interviewer notes down
the key questions which are to be asked to each respondent He uses these questions supported
by other supplementary questions which he puts forward while interviewing the respondent
The interviewer has to use his skill and knowledge while conducting semi-structured
interview
Semi-structured interview is useful for collecting additional information from the respondents
Freedom is given to the interviewer and interviewee Respondents are encouraged to express
freely
(3) Unstructured Interview: In an unstructured interview, detailed questionnaire is not used
for reference The interviewer believes that the respondent has adequate useful information and
it is his duty to collect that information through conversation This interview is useful only
when the interviewer is properly trained with full knowledge of the nature and purpose of
survey work and has adequate knowledge of human psychology Here, the interviewer and the
respondents are given adequate freedom The interviewer can ask additional questions or can
change the order of questions given for reference
(4) Depth Interview: Depth interview uses techniques of psycho analysis to study in depth
the behaviour of respondent. This method allows the interviewer to collect different views and
opinions of respondent through personal interview. Such interviews are useful for the study of
human behaviour.
The depth interview method relates to behavioural sciences such as sociology and psychology.
It is a clinical psychology method wherein the investigator attempts to get the respondent talk
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freely about certain topics in an informal manner. The term depth interview is used as the
interviewer desires to discover underlying motives/desires of the respondents. Such interviews
are usually undirected and require maturity, skill and experience on the part of the interviewer.
In addition, it is a time consuming interview. Depth interviews are costly and are used for the
group interviews rather than for individual interviews.
In depth interview, the respondent is allowed to say what he knows or feels about the product
or subject matter of discussion. The respondent is assessed (his behaviour or thinking process)
through supplementary questions. Prepared questionnaire is not used by the interviewer but he
is given a list of issues to be covered in the interview.
The questions asked in the depth interview are not identical. Here/ the data collected is
qualitative and not the quantitative one. In depth interview, the respondent is encouraged to
talk freely and the interviewer takes the position of a good listener. He has to find out inner
motives and feelings of the respondents.
(B) Group interviewing consists of inviting a group people together for interview purpose. Group
interview is also called group discussion. Information is collected jointly from them by a
trained moderator. Group interview is a faster technique of interviewing as compared to
individual interview In group interview, a group of 8 to 12 respondents is formed and
information is collected collectively from the whole group It is a non-structured and informal
type of group interviewing and is useful for data collection on human behaviour and
motivation Here, the assumption is that people talk more freely/openly when in groups
Focused Group Interview/Discussion: In the focus group interview the attention of group
members is focused/concentrated on some particular problem/ product/topic and the group
discussion is directly and closely related to the topic/product/problem The group leader
(moderator) has to use his skills etc and see that the discussion do not move away from the
main problem and that necessary information is available from the group The group
discussion is tape recorded or video-taped The required information is collected from the tapes
and conclusions are drawn The group selected for interview/discussion is called focus group
and information is collected from the group as a whole. Though the term focus group
interview is used here, the interviews of group members are not taken as per the usual style.
The whole group is treated as one unit and a specific problem/topic is discussed by the group
as a whole. In this sense, the terms focus group interview and focus group discussion need to
be treated as identical.
Focused interview (discussion) is a type of free interview in which a greater degree of control
is applied to the course of the interview. Here, the interviewer puts a number of related
questions to the respondents and tries to get information on all points at one time. The
attention of the respondent is focused on limited number of inter-related questions. The
respondent is given an opportunity to express his views freely but on limited number of
questions/points. Unnecessary and unwanted discussion during the interview is avoided. The
information and views expressed by the respondent are noted clearly and correctly by the
interviewer. Focused interview is more precise, clear-cut and to the point. It reduces the time
of interview but the information on important points is collected from the respondent.
Focused interview is superior to free interview as unnecessary questions, conversation and

irrelevant information are avoided. Along with this, adequate scope is provided for discussion
on important matters on which the attention of the respondent is to be diverted.
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ADVANTAGES/MERITS OF PERSONAL INTERVIEW:
(1) Flexibility: In personal interview, the interviewer can bring flexibility in his data collection
process. There is closer interaction between the respondent and the interviewer. Questions
can be adjusted as per his need and maximum possible information can be collected. This
makes the survey work purposeful.
(2) Better co-operation from respondents: In personal interview, the interviewer gets better co-
operation from the respondent due to face-to-face communication. Additional questions can
be asked for securing more information. The respondent also speaks freely about his
opinions/views.
(3) Benefit of longer duration interview: Personal interview is usually of a longer duration. The
purpose of survey can be explained and detailed questions are asked thereafter. In the case of
very positive response, supplementary questions can be asked. The information collected is
also reliable as it is first hand information. Even the interviewer can note the family
information such as home atmosphere, education and age of the respondent, through personal
observation during the course of personal interview.
(4) Availability of reliable and detailed information: In personal interview, the information
collected is usually detailed and reliable. Detailed information is also collected through
personal interview as the respondent has enough time to supply the necessary information. It
is possible to seek clarifications on any point on the spot.
(5) Better quality response: In personal interview, the quality of response is always high as
compared to mail survey. Meeting with the respondent is possible on a holiday or with
previous appointment. Once the interview starts, the respondent takes interest and gives
answers to questions placed before him.
(6) Personal questions can be asked: In personal interview, personal questions can be asked
tactfully. Similarly, questions of lengthy answers can also be asked during the interview. This
facilitates collection of adequate information.
(7) Products can be shown/demonstrated before recording response: In personal interview,
products, advertisements, etc. can be shown or demonstrated to the respondents in order to
collect required information. Even visuals aids can be used during the interview.
(8) Suitable when information from limited respondents is to be collected: Personal interview
method is convenient when detailed data need to be collected from a relatively small number
of people. The respondents can be selected properly.
(9) Improves quality of research work: The conclusions drawn from the1 data collected through
personal interview are more accurate. The delta collected can be checked properly.
Moreover, the reactions and attitude of the respondents can also be noted correctly.
(10) Non-verbal responses are observed: Personal interview serves as an opportunity available to
the interviewer to observe respondents non-verbal responses. Facial expressions, body
movements, gestures and voice modulation are clearly visible in personal interview and can
be noted on the interview sheets. Even the spontaneous reactions of respondents can be
noted.
DISADVANTAGES/LIMITATIONS OF PERSONAL INTERVIEW:

(1) Costly: Personal interview is a costly method of survey as the interviewer is required to be
paid travelling and daily allowances. In addition, limited number of interviews are possible
within one day by an interviewer. Supervisors are required to be appointed on the interviewers
for effective control. Thus, it is a costly method.
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(2) Time consuming: Personal interview method of data collection is time-consuming. The
interview time may be of 15 to 30 minutes but the interviewer has to spend time on travelling,
etc. Naturally the survey work takes a longer duration.
(3) Information supplied may not be accurate: The information supplied by the respondents
may not necessarily be accurate as they have to supply information on the spot. The answers
given by the respondents may not be fully supported by facts. The respondent may give
inadequate information due to personal reasons. This is likely to affect the final outcome of
the survey.
(4) Long-term planning required: Personal interview needs long term planning and fixing of
prior appointments with the respondents. The complicated scheduling must be followed
strictly.
(5) Effective supervision on interviewers required: Effective supervision on large number of
interviewers appointed may not be possible due to large geographical area covered by the
survey work. The investigators may not work sincerely if supervision on them is
inadequate/ineffective. Insincere interviewers can produce high level of spoiled work.
(6) Danger of personal bias: There is a danger of personal bias when the interview is conducted
personally. This may be due to wrong selection of samples. It may also arise if the
investigators are dishonest and try to suggest possible answers to the respondents. In brief,
there is a possibility of interviewer bias or respondent bias in the personal interview method.
(7) Possibility of rush interviews: There is a possibility of rush interviews by the interviewers.
This is possible when they are given heavy interview target per day. This is also possible if the
interviewers are paid in proportion to the interviews completed per day. Finally, rush
interviews are possible if the questionnaire is too lengthy. However, this affects the quality of
survey work.
(8) Respondents from cross section of the society may not be available: For personal
interview/people from all sections may not be available. Busy executives, industrialists and
professionals are not easily available as samples for the survey work.
(9) Information supplied may not be recorded properly: Sometimes, information supplied by
the respondents is not recorded properly. The interviewers may record the information after
completing the interview. Mistakes in recording actual replies is possible. This leads to wrong
conclusions in the final research report.
ADVANTAGES/MERITS OF DEPTH INTERVIEW:

(1) Depth interview is useful for finding out consumer motivations, attitudes, feelings and desires
relating to product etc.
(2) The respondents get an opportunity to express freely their desires, motives and feelings.
(3) The interviewer gets deeper insight into the problem under investigation.
(4) Depth interview method do not give factual data but data which relates to human (consumer)
behaviour and human psychology.
(5) Depth interview is convenient when the respondents to be interviewed are few but the
information to be collected is detailed.
DISADVANTAGES/DEMERITS OF DEPTH INTERVIEW:

(1) Depth interview method is costly and time-consuming.
(2) Depth interviews can be conducted properly only by skilled, experienced and matured
interviewers.
(3) Findings of depth interviews cannot be quantified.
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(4) The attitudes, motives and desires expressed under research conditions may change in actual
buying situations. Thus, depth interviews may not give correct answers to all MR problems.
(5) The art of depth interviewing is difficult/complicated and needs proper background of
knowledge and training.
ADVANTAGES OF FOCUS GROUP INTERVIEW / DISCUSSION:

(1) There is saving of time and money as 8 to 12 persons are interviewed at one time.
(2) Focused group interview provides detailed and accurate information from a small group easily
and quickly.
(3) Each member of the group is given an opportunity to participate in the discussion. This gives
different views on one subject to the researcher.
(4) There is stimulation to participants in group interview/discussion. Participants are free to
express their view without fear/pressure.
(5) New ideas are generated in the group discussion and the researcher can use them in his
report/recommendations.
(6) The information available through focus group interview/ discussion relates to one specific
subject and is useful to researcher in his research work undertaken.
(7) Focus groups are now used extensively in MR as they give a direct ―feel‖ of individual
consumers.
DISADVANTAGES OF FOCUS GROUP INTERVIEW / DISCUSSION:

(1) How to encourage participants for free discussion and how to secure their cooperation in the
research work is a big problem in focus group interview technique of data collection.
(2) The views/information available may not be of representative character due to non-
participation of some members.
(3) The benefit of this technique will be available only if the group leader is matured, experienced
and effective communicator.
(4) Members may express views on irrelevant matters or unrelated topics. This leads to wastage of
time and money.
(5) There may be one sided discussion in the group. The benefit of such discussion is limited for
research purpose.
GUIDELINES FOR EFFECTIVE PERSONAL INTERVIEW:

(1) Proper procedure: Personal interview should be arranged by following proper procedure. For
this, the nature and purpose of research project should be finalised first. The information to be
collected from the respondents should be decided clearly. This should be followed by
preparation of suitable questionnaire and selection of samples for the survey.
(2) Prior communication with respondent: The interview should be fixed on telephone
followed by the letter of confirmation in which the purpose of the interview should be made
clear to the respondent.
(3) Proper atmosphere for interview: At the time of interview, the questionnaire should be kept
ready and the interview should be initiated in the straight-forward manner. The questions
which are easy should be asked first. This creates proper atmosphere for the interview and
encourages the respondent to give positive response to the questions asked. The respondent
should be encouraged to speak freely and frankly.
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(4) Proper recording of replies: The information supplied by the respondent should be recorded
in full. Additional information supplied should also be recorded properly. The remarks based
on the observations by the interviewer should also be noted by the interviewer at suitable
places.
(5) Trained interviewers should be appointed: The interviewer should be properly educated
and well trained in the art of interviewing. Adequate and reliable information is available only
when the interview is conducted in an orderly manner.
QUALITIES AND QUALIFICATIONS OF A GOOD FIELD INVESTIGATOR

(INTERVIEWER):
(1) Sound general education: An interviewer needs sound educational background. He should
possess « better than average education. He also needs working knowledge of some
important language spoken in the area in which research work is to be conducted. Education
makes him impressive in his work, approach and outlook.
(2) Pleasing appearance and manners: An interviewer needs impressive personality, pleasing
manners and decent behaviour. He should be well dressed and also needs impressive
appearance. Respondents are strangers. Their co-operation is possible only if an interviewer
creates good impression on them.
(3) Social outlook: An interviewer should be social by nature i.e., adjustable and accommodative
in his approach and outlook. He should be at ease with all types of respondents. An
investigator should not be hot tempered and indecent in his manners and behaviour as
respondents will not be co-operative to such interviewers. He is supposed to show interest in
the attitudes, problems and opinions of respondents. An investigator should be an extrovert.
(4) Sound health and stamina: The job of an interviewer is hard. He has to move from place to
place and speak with different types of respondents. Naturally, he needs sound health and
stamina. He should be able to work hard for many hours and also should be able to do
extensive travelling for survey work In addition, he needs capacity to accept uncertainties of
interviewing life
(5) Inquiring mind: An interviewer needs inquiring mind He needs desire to collect whatever
information required for the survey He should not be satisfied with mere facts or minimum
information He has to probe behind the facts and try to collect maximum possible
information from his respondents For this, he needs inquiring mind
(6) Sharp memory: An interviewer needs sharp memory for recording the information and facts
accurately and completely He has to prepare various statements and reports and for this he
needs sharp memory This brings speed and accuracy in his work
(7) Integrity: An interviewer should be absolutely honest and reliable He should complete his
work regularly as per the schedule decided His integrity plays an important role in the data
collection work He is supposed to collect information by meeting respondents and not on the
basis of guess work He should record the responses correctly and also immediately He
should not do cheating in his field work as this affects the quality of research work
(8) Minute observation: An interviewer should observe even minor points, events and remarks
of his respondents He has to collect data even by accurate observation and for this he needs
the faculty of accurate observation and a conscientious regard for details
(9) Ability to record: An interviewer has to record the information supplied by respondents
precisely, correctly, fully, promptly and without colour or bias Thus, he needs ability to
record information supplied with precision
(10) Ability to communicate: An interviewer should be a good communicator He needs oral
communication skills so that the respondent can easily understand what he (interviewer)
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wants Ability to communicate properly brings positive response from the respondent This
suggests that an interviewer needs the ability to communicate the right information in the
right manner He also needs knowledge of local/regional language for easy communication
with the respondents
(11) Knowledge of business world: An interviewer needs atleast working knowledge of business,
sales, advertising, market competition and so on He should be clear in his mind as regards the
nature and purpose of his survey Marketing research relates to marketing and allied problems
and an interviewer certainly needs adequate knowledge of such problems.
Female interviewers are preferred as compared to male when required information is to be

collected from housewives and female consumers. As a general rule also, women are preferred to
men as interviewers particularly when the research work relates to consumer items. The possible
reasons are:
(1) Women are easily available for interviewing work as the timing is convenient to them.
(2) They are generally honest and sincere in their work. Naturally, errors and cheating in the
fieldwork are limited.
(3) Women interviewers are systematic and decent in their work. This improves the quality of
research work.
(4) The response from the respondents is always encouraging in the case of women interviewers
as compared to male interviewers.
(5) Women interviewers are willing to accept part time job of interviewing. This gives
convenience to them and also to the appointing agency.
(d) PANEL RESEARCH

Panel research is a technique similar to the survey, but with one major difference. In survey
method a fresh sample is selected for every survey work, while in the panel research the same
panel is used again and again for the collection of information. The panel acts as a permanent
sample of respondents and information is collected from them at appropriate intervals through
interviews.
A panel means a sample of respondents who may be individuals, consumers, housewives,

households or firms from whom information about purchasing, buying behaviour, etc. is collected
at regular intervals. The panel members are given diaries. They note details of purchases,
shopping patterns, etc. in which the researcher is interested. Panel members provide feedback to
the researcher for detailed study of the marketing problem under consideration.
Panel research offers certain benefits. For example the buying behaviour of selected consumers
can be studied through panel. The changes in the behaviour can be analysed through panel
research. However, panel research will be effective only when the panel members are co-
operative and provide reliable information when requested. Members of the panel may not find it
convenient to give information again and again. They may treat this as botheration and may not
supply timely and reliable feedback.In spite or such limitations, panel research method is used in
many marketing research projects
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MEANING AND FEATURES OF CONSUMER PANELS:
Consumer panel/profile is one more method of consumer research, a technique of primary data
collection which is similar to survey work. Here, a group of consumers (a permanent sample of
respondents collectively called panel) is selected and their opinions/views/reactions collected. For
this, personal interview or telephone inquiry is made, or the panel members may be asked to
record regularly in the diaries provided their purchases or listening or viewing habits in the case
of radio or TV. The information is collected often and again for the purpose of scrutiny In due
course, it is tabulated for drawing conclusions
The selection of panel members is usually made on the basis of age/ economic status, likes and
dislikes, etc, of consumers and is used for data collection regularly over a long period. It is a
permanent sample of respondents for research work and may include individuals, housewives,
households, dealers or firms from whom information is collected periodically. The panel members
also agree to co-operate by providing their views on different topics from time to time
The other term used for consumer panel is Omnibus Panel It means a fixed sample of respondents
who are interviewed (for information collection) on different variables over a period of time The
information is collected from the respondents on certain matters such as purchases made, price
paid, reactions on the products purchased, shopping behaviour, etc Suitable conclusions are drawn
on the basis of information collected
According to Ronald M. Weiers, "Panels consist of persons, households or business firms who
report their purchasing activities at periodic intervals over time and who are typically selected
based on a combination of their willingness and representativeness". A consumer panel may be
defined as "a group of consumers who voluntarily agreed to be interviewed on the same topic or
on different topics from time to time for data collection regularly and continuously".
Panel method can be used effectively in order to study consumer behaviour under different
situations. It also facilitates continuous study of behaviour of consumers over a particular period
The reactions of consumers to the product, its quality, packaging, advertising, pricing, etc can be
studied continuously through consumer panel method Consumer expectations can be studied with
reasonable accuracy through such panels
Consumer panel method gives reliable information for policy decisions on marketing There is
close communication with the respondents This facilitates a continuous check on the record of
consumer behaviour over a specific period The reactions of consumers are regularly recorded for
policy decisions Some manufacturers supply samples of new products to panel members for
testing. The reactions of members are collected through personal interviews Sometimes, cash
prizes/gifts are given to panel members as incentive and thereby they are induced to give better
co-operation in the survey work For better results, the panel members should be selected with
proper care.
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TYPES OF CONSUMER PANELS
The classification of consumer panels is made on the basis of the type of research being carried
out. The following chart shows the types of consumer panels.
Types of Consumer Panels
Purchase Audience Attitude Dealer Product Testing Retail

Panel Panel Panel Panel Panel Panel Panel
(1) Purchase Panel:
Purchase panel is useful to study the purchasing habits and trends of consumers Such pane] is a
group of selected consumers who are asked to record purchases made by them regularly in the
diaries provided to them Information is collected from the panel members continuously for
detailed analysis
Panel members are expected to keep correct record of their purchases in the diaries specially
provided to them The diaries of consumers are collected periodically for review and for studying
information regarding the items purchased with details like prices, quantities, preferences and so
on This provides information regarding the pattern of purchases and expenditure incurred on
different items In addition to the study of diaries, personal contact is also kept with the panel
members for the collection of additional information from them
The consumers selected for purchase panel are usually housewives and they are asked to write
down every day what they actually buy and to send the diaries periodically for review purpose
The diaries provided are carefully designed for the convenience of panel members
Purchase panels are used by manufacturers, marketing research firms and government
departments Such panels may be formed in the case of consumer items which consumers purchase
frequently and also in large quantities
(2) Audience Panel:

Audience panels are panels designed to provide information regarding media audiences Audience
panels are of listeners/viewers of programmes on radio and TV The panel members are asked to
listen the programmes on TV and radio regularly Their opinions on the programmes are collected
for research purpose
The popularity of programmes or the reactions of viewers can be judged with the help of such
panels Even the effectiveness of radio and TV advertising can be judged through such audience
panels The most famous media audience panel is one which is operated by the A. C. Nielson
Company (USA). In European countries, such audience panels are used extensively to study the
expectations of radio and TV audiences
In India, advertising agencies are using the technique of audience panels for the benefit of their
clients Such panels are used in the case of radio and TV advertising
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(3) Attitude Panel:

Attitude panel is useful for the study of attitude of consumers towards a product/marketing
practice Attitudes are usually studied along with the purchase behaviour of consumers Panel
members are interviewed after a period of three or six months and their attitudes are studied
Findings of such studies are given wide publicity for the benefit of all manufacturers
(4) Dealer Panel:

Dealer panels are useful for collecting information from the dealers in a continuous manner. They
give data on dealer activities including total sales, prices charged, promotional efforts made,
services offered and so on. Data are collected from selected dealers of important commodities
with different brands. Information regarding the popularity of different products, market tends,
sale of goods of specific brand, etc. is easily available from such research study. The relative sales
made by dealers over a period of time indicate the strategic outlets to promote sales.
Dealer panels are also useful for collecting data regarding retail sales, inventories and prices. The
total sales of products and the share of a particular brand, etc., are also available from such dealer
panels. Dealer panels offer valuable guidelines for the selection of suitable outlets for efficient
marketing of products. Dealer panels are formed by manufacturers and information is collected
from the dealers through diaries and also through personal interview. Dealer panels are useful for
framing marketing policies for large-scale distribution of goods/services.
(5) Product Testing Panel:

Product testing panel is useful for testing the utility and other features of the product before
bringing it in the market for large-scale marketing. The panel includes consumers from cross
section of the society. They are given new product to test its use and other features. Their views
are collected through personal interviews after regular intervals. This enables a manufacturer to
judge the extent to which his product is agreeable to consumers. If necessary, certain
modifications are introduced in the product before it is brought in the market on commercial
basis.
Product testing panels are used particularly for pre-testing consumer durables which are costly
and need to be manufactured as per the current needs and expectations of consumers.
(6) Retail Panel:

Retail panel is a panel of retail traders who are willing to give information about their stocks at
regular intervals purely for research purpose Panel members are required to note information
about the sales and stock position and provide the record for study purpose. This enables the
researcher to draw useful conclusions about marketing activities Information is also collected
from panel members through personal interview, In India, the Operations Research Group
(ORG), Baroda conducts retail audit on an extensive scale. It is useful to producers of food items,
drugs, pharmaceuticals and confectionery.
ADVANTAGES OF CONSUMER PANELS:

(1) Supply useful information: Consumer panel gives valuable information to researchers about
the research activity undertaken. The information is supplied regularly and continuously.
Periodical changes in buyer behaviour can be monitored through such panels. The
information collected enables researchers to forecast future behaviour of consumers with
reasonable accuracy.
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(2) Longer interviews are possible: Longer interviews can be held with panel members and
more detailed information can be collected from them.
(3) Reliable data available: The data collected through diaries is more accurate and reliable. It is
recorded by the respondents and the possibility of errors of lapses of memory are reduced
considerably. Panel research is useful for noting behavioural changes of consumers.
(4) Economical method: Consumer panel is an economical method for collecting continuous
information and data. Data on the same subject are collected periodically. This facilitates
suitable changes in the marketing policies of the firm.
(5) Positive response from panel members: The response from the panel members is always
better as they voluntarily agree to participate in the survey work and offer necessary co-
operation.
(6) Facilitates introduction of remedial measures: Consumer panels are useful for product
development, product modification, selection of best channel of distribution and introduction
of suitable packaging which will be attractive and agreeable to consumers.
(7) Continuous supply of information: Consumer panel provides information in a continuous
manner. The information is collected from the same group of persons. This gives idea about
gradual changes in the behaviour of consumers The conclusions drawn through consumer
panels are also accurate and dependable.
(8) Real motives are visible: Consumer panel is useful for finding out the real motives behind the
actions of consumers. Consumer behaviour can be studied more accurately through consumer
panels.
(9) Facilitates product testing: Consumer panels are used to judge different products at one time.
Members are asked to state which products they like most and why. This facilitates product
testing.
DISADVANTAGES/LIMITATIONS OF CONSUMER PANELS:

(1) Biased outlook of panel members: Panel members show biased outlook after they become
members over a long period. This defeats the very purpose of research work as the data
supplied may not be accurate, reliable and factual.
(2) Limited co-operation from panel members: Panel members are cooperative and take
interest in the initial period of survey. Thereafter, their interest goes on reducing and they
supply data indifferently. This is because they do not want to be bothered again and again. As
a result the degree of co-operation between the panel members reduces.
(3) Absence of representative character: A small panel is always unrepresentative in character.
The conclusions drawn with the help of such panel may not be applicable to the whole class of
consumers. Thus, the panel as a sample may not represent the true picture of the whole
population.
(4) Panel members drop gradually: Panel members drop out from time-to-time. Every panel is
subject to a certain amount of mortality. However, selecting new members with the same
characteristics is not easy. The new members selected may be different and this affects the
quality and accuracy of the whole project.
(5) Panel members behave like experts: The members of the panel become sophisticated and
also consider themselves as experts or professional testers. This harms the quality of research
work.
(6) Costly/expensive: Consumer panel research is rather expensive. It requires continuous efforts
to build up and maintain the panel. Giving product for testing or a small gift to large number
of panel members is costly. In India, only large companies like Hindustan Lever Limited do
have consumer panels.
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(f) AUDITS
Audits involve the physical inspection of inventories, sales receipts, shelf facings, prices, and
other aspects of the marketing mix to determine sales market share, relative price, distribution, or
other relevant information
1. Store Audits
The simple accounting arithmetic of
Opening Inventory + Net Purchases (receipts - transfers out / ―returned inventory‖) - Closing
Inventory_______________ _____________________________________
Sales
is the basis for the audit of retail store sales. The most widely used store audit service is the
Nielsen Retail Index, it is based on audits every 30 or 60 days of a large national sample of food,
drug, and mass merchandise stores. The index provides sales data on all the major packaged
goods product lines carried by these stores-foods, pharmaceuticals, drug sundries, tobacco,
beverages, and the like (but not soft goods or durables). Nielsen contracts with the stores to allow
their auditors to conduct the audits and pays for that right by providing them with their own data
plus cash
The clients receive reports on the sales of their own brand and of competitors' brands, the
resulting market shares, prices, shelf facings, in-store promotional activity, stock outs, retailer
inventory and stock turn-around, and local advertising These data are provided for the entire
nation - by region, by size classes of stores, and by chains-versus independents. The data are
available to subscribers on-line via computer as well as in printed reports
2. Product Audits
Product audits, such as Audits and Surveys' National Total Market Index, are similar to store
audits but focus on products rather than store samples. Whereas product audits provide
information similar to that provided by store audits, product audits attempt to cover all the types
of retail outlets that handle a product category. Thus, a product audit for automotive wax would
include grocery stores, mass merchandisers, and drugstores (in this way it is similar to the Nielsen
store audits) In addition, it would include automotive supply houses, filling stations, hardware
stores, and other potential outlets for automotive wax.
3. Retail Distribution Audits

Similar to store audits are retail distribution audits or surveys. These surveys do not measure
inventory or sales; instead, they are observational studies at the retail level. Field agents enter
stores unannounced and without permission They observe and record the brands present, price,
shelf facings, and other relevant data for selected product categories. NRTI (Erhandt-Babic) and
BOS (Burgoyne Inc.) are the suppliers of this type of data.
.
OBSERVATION METHOD
MEANING OF OBSERVATION METHOD:
Observation method (observational research) is one extensively used method of primary data
collection. Observation research means gathering of primary data by observing relevant people,
actions and situations. According to Oxford Dictionary, observation means "accurate watching
and noting of phenomena as they occur in nature with regard to cause and effect or mutual
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relation". It is the classical method of investigation widely practiced by scientists and social
investigators. Here, consumer behaviour is observed directly and conclusions are drawn. As a
result, the defects inherent in direct questioning are avoided.
Observation method is more objective as it is based on accurate watching and noting the details of
behaviour of consumers. It eliminates subjective element encountered with questionnaire method.
Observation means "an act of recognizing and noting/acts a/occurrences." Personal behaviour of
respondents can be observed with the help of observation. A consumer packaged goods marketer
for example, may send his representative to supermarkets and observe shoppers as they look at the
product, examine the packages and make actual buying decisions.
Observation involves recording of events/actions as they take place in the environment. Here, data
are collected by observing consumers involved in an activity in their natural environment.
Consumers are not aware that they are being observed / watched by the observer stationed in the
shop for this purpose. He records his observations about the behaviour of customers without their
knowledge. Naturally, the data collected are accurate and dependable. A consumer may be
observed while purchasing soap or toothpaste at a retail shop.
Observation is also possible while selecting a specific product or brand. Here, the behaviour of the
consumer at a market place is studied in detail. Naturally, co-operation of respondents is not
necessary. It is the observer who takes the notes of things as they happen. In the observation
method, the researcher records "what is happening rather than what has happened or what is
going to happen."
Observation method can be used to study customer movement, customer responses in retail shops,
stock audit in retail stores and sales technique. However, interview may be used as a follow-up to
get additional information. In fact, observation acts as a good supplement to other methods used
for data collection. For instance, customers are observed buying toothpaste or soap in small
packets instead of large packages. They may be asked why they prefer small packages rather than
large packages.
Observation is a process of noting people, objects and occurrences rather than directly asking for
information. For example, instead of asking consumers what brand they buy, the researcher
arranges to observe their behaviour at the sales counter and the way in which they select a
particular brand. In addition, hidden video cameras, one-way mirrors, assessment of wear and tear
of flooring in display areas are some more methods used in mechanical observation. Closed video
monitoring is a common technique used in the observation method of primary data collection.
Scientific observation is always purposeful, economical and immensely useful to researcher. The
observers appointed should be skilled, properly trained and instructed. Such observation of
consumers is possible in the retail shops, co-operative stores and also in the departmental stores
where large number of consumers come frequently.
In the observation method, more stress is on noting, watching and understanding and not on
asking questions. Observation is possible through individual observers (live observation) or
through mechanical devices like audiometer. In personal observation, the researcher poses as a
customer and observes others. In mechanical observation, eye cameras or scanners are used.
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FEATURES OF OBSERVATION METHOD:
(1) Observation means accurate watching and noting. It can be conducted by watching a customer
or by using mechanical devices like eye camera
(2) Observation method is reliable, accurate and scientific. It is useful for the collection of
primary data
(3) Observation is always selective as consumer behaviour relating to specific aspects (relating to
research project) will be studied.
(4) Observation may be physical or mental or both in character.
METHODS OF OBSERVATION:
Methods/Types of observation (as per techniques used, place and purpose) are as explained
below:
(1) Simple Direct Observation: Here, the observer looks and acts like a shopper. The other
regular shoppers do not realise that they are being observed. Thus, the observer studies the
purchase procedure and the behaviour of the customers while they purchase goods. It is a
simple, easy and direct method of observation. The behaviour of a person/customer is
observed as it occurs.
(2) Indirect Observation: Indirect observation is meant to study the past behaviour. This is
possible with the help of past records, films, photographs, etc. Films are frequently used to
study past behaviour of shoppers, etc. In indirect observation, some record of past behaviour
is observed. Here, the behaviour itself is not observed, but its effects are observed. In indirect
observation, the observer looks for physical traces of behaviour or occurrence of an event.
For example, in order to find out liquor consumption in a household, an observer would like
study the empty liquor bottles in the garbage. The success of indirect observation depends on
how best the observer is able to identify physical traces of the problem under study. Direct
observation is very common than indirect observation.
(3) Structured Observation: Here, the purpose of observation is clearly defined and the observer
knows what to observe as regards the consumers who are busy in their shopping work. The
observations to be made are clear to the observer and the observations will be completed
accordingly.
(4) Unstructured Observation: Here, the observer observes whatever he thinks pertinent It is
similar to unstructured questioning The observer is clear about his objectives and he conducts
observation activity accordingly
(5) Mechanical Observation: Here, observation is made with the aid of electro-mechanical
devices. Such observation may be recorded or live A number of mechanical devices for
making observation have been developed Audiometer, eye camera, pupilometric camera,
tape-recorder, VCR, psycho-galvanometer are some such devices used in mechanical
observation Mechanical observation is economical and more accurate as compared to human
observation
(6) Manual / Human Observation: Human observation is done manually Here, human beings
are appointed to observe and record the data It is a simple type of observation by a specially
appointed observer He does observation without the use of electromechanical devices The
human observations are carried out as per the guidelines provided to the investigator
Mechanical observation provides more accuracy However, some special/extra information
can be provided only by a human observer and not by a mechanical device
(7) Disguised Observation (also called Covert Observation): In disguised observation, the
subjects do not know that they are being observed by some specially appointed observer For
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example, disguised observation may be made by the observer by posing himself as one of the
shoppers who are being observed This type of observation is preferred as people (shoppers)
may behave differently when they know that they are being observed Here, the purpose of
observation is not disclosed to the respondents They are also not aware of the fact that they
are being observed for some specific purpose Disguised observation method may be used by
the researcher when he feels that his presence may affect consumer behaviour or may spoil
the whole data collection process An observer, for example, may enter the shop as a regular
customer and may interact with fellow consumers without disclosing ins identity and purpose
of interaction In undisguised observation, the purpose of observation is brought to the notice
of respondents before the commencement of observation
ADVANTAGES/MERITS OF OBSERVATIONAL TECHNIQUE:

(1) Accuracy: Observational techniques are highly accurate They reduce interviewer's bias. A
trained field worker is not likely to exert a bias in any direction of research The information
available from observation is more objective and reliable than available through survey
method.
(2) Factual information available: It provides factual information into new areas of research.
(3) Records events as they occur: In observational method, the events are recorded as they
occur. The researcher is not dependent on the respondent for the supply of correct
information.
(4) Economical: Observational method is economical as preparation of a questionnaire, etc., are
not required.
(5) Objective data available: The data collected by observation method are more objective and
accurate. Here, an attempt is made to avoid biases through memory, lapses, halo effects or
other sources by observing respondents behaviour.
(6) More accuracy in mechanical devices: Mechanical devices can be used to collect facts
which will reduce the cost of data collection and the information collected is also accurate.
(7) Effective method: Observational method is found to be quite effective and useful in
researches related to marketing problems.
LIMITATIONS OF OBSERVATIONAL TECHNIQUE:

(1) Certain elements are missed: Observational method has no capacity to observe attitudes,
motivations and intentions of customers. These elements can be observed only when they are
converted into action. It is also difficult to pinpoint them as human behaviour is the net result
of many drives and urges.
(2) Human errors possible: Observational methods are used by observers who are human beings
and are subject to errors and mistakes. Even highly experienced observers are likely to make
mistakes while observing their respondents.
(3) Purpose is defeated, if secrecy is not maintained: In some observational studies, the
respondent gets the idea that he is participating in a test. He knows that he is being observed.
Such situation will defeat the every purpose of observation.
(4) Costly method under certain situations: Observational method is economical when used for
observing events occurring rapidly. It proves to be costly when the events to be observed do
not occur at rapid intervals. In addition, properly trained observers are required to be
appointed. This makes survey work expensive.
(5) Observer's bias: Field observers bias may creep in and thereby making the observations
faulty. Even faulty observation by the observer may prove to be dangerous.
(6) Limited application: Observation method has limited application. It tells about what actually
happened but it cannot tell as to why it so happened
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(7) Needs support of personal interview: Observation method needs the support of personal
interview in order to understand the motives, attitudes and opinions of individuals/consumers
It is useful as a supplement of personal interview method
EXPERIMENTATION METHOD
MEANING AND FEATURES OF EXPERIMENTATION METHOD:
In scientific inquiry, research is primarily centered on controlled experiments. Experiments are a
special form of survey and/or observation method where respondents are asked questions about
some controlled conditions or their reactions to some controlled conditions are observed In
experiments, the researcher alters the environment and measures the effect of these
alterations/manipulations Experimentation may be defined as "a process where events occur in a
setting at the discretion/option of the researcher and controls are used to identify the sources of
variation in respondent's response " Experimental research is best suited for gathering casual
information It tries to explain cause-and-effect relationships Experimentation method is used
extensively in scientific research and also used in marketing research It is now used in order to
remove one primary weakness of observational method which relates to the influence of
uncontrolled factors Experimentation method is useful for the collection of data which cannot be
collected by survey method or observation method The scope for experimentation is limited in
MR as the ideal experimental conditions of laboratory testing are virtually impossible in the field
of marketing. Marketing relates to human behaviour which is difficult to predict precisely
Experimentation can be undertaken under two types of setting

(a) Field setting
Field experiments are conducted at the market place but the purposes are not known to the
participants in the experiment The investigator sets up the experiment before the subjects begin to
participate There is more realism in this type of experimental method Field experiments are used
rarely due to higher costs and longer time involved Field experiments arc usually conducted in
test marketing in order to find out the acceptability of the new product by consumers For example,
a company may test its new product in the local market before it is produced on a large-scale for
the national market Similarly, a company can find out colour of its new product (e g soap) which
is likely to be most popular after its introduction. In addition, experimentation is extensively used
in the following areas of marketing
i. Product design
ii. Package design
iii. Pricing policies
iv. Distribution policies
v. Promotion policies.
(b) Laboratory setting

Experimentation is also possible under laboratory setting. The laboratory experimentation method
is accurate but laboratory experiments are more artificial due to controlled conditions. Such
experiments may be in the form of calling limited persons, offering them an article (e.g. soft
drink) and asking them about their reactions. The purpose of experiment is made known to the
participants and this makes them conscious. Such laboratory experiments are less costly and
shorter in duration. They also give reasonably accurate results.
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ADVANTAGES OF EXPERIMENTATION METHOD:
(1) Experimentation method of data collection is useful when the problem to be solved is clearly
defined and the dependent or independent variables are clearly marked.
(2) Experimentation method enables the marketers to take quick decision in the marketing field as
the marketing problems are better understood and an insight is available due to
experimentation.
(3) One major benefit of experimentation method is its realism. It enables actual market test and
simulates actual market situation. It suggests remedies which are extremely useful and
effective.
(4) Experimentation method provides unbiased feedback on how the product and marketing
strategy will help the firm penetrate the market.
Experimentation method of MR can be applied most suitably to certain problems like training and
remuneration of salesmen, shelf display arrangements, package designs and advertising copy.
Experimental marketing (test marketing) can be used to study the effect of certain sales promotion
techniques such as premium, brand, package design and colour combination. The use of lengthy
experimental methods is limited in India. This is due to heavy cost involved in them. Many
companies now select smaller towns like Pune or Indore for test marketing. Certain techniques,
such as split-run for evaluating alternative advertising copy are also used to a considerable extent
in India.
LIMITATIONS OF EXPERIMENTATION METHOD:

(1) Experimentation method is costly and time consuming.
(2) It requires the services of trained staff for the conduct of experiments.
(3) Experimental methods suffer from many administration problems.
(4) Controlling the variables in the market selected for experiments (as they may upset the result)
is one major difficulty
(5) The competitors may weaken the test market results through their marketing activities
(6) There is lack of theoretical base to experimentation methods
EXPERIMENTATION AND EXPERIMENTAL DESIGN:

Experimentation
As regards experimentation there is an attempt to measure the effect of one or more variables by
changing the level of some variables and measuring the effects e g / post-testing effectiveness of
an advertising campaign In order to know how well brand of the product is recorded in the mind
of consumers, it is possible to measure brand awareness among a sample of target respondents
This effort would be called experimentation
Experimental Design
Experimental design involves obtaining the proper information within an acceptable accuracy
range for a cost that does not exceed the value of the information. It ensures that each
experimental treatment is used within each classification of test units and each classification of
extraneous forces is applied equally to all test units
Experimental design originated in the field of agricultural research R. A. Fisher made significant
contribution by stating that the practices prevalent for the measurement of output from plots of
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land could not provide unbiased and unambiguous findings Now experimental design is used in
all areas of business
FACTORS AFFECTING EXPERIMENTAL DESIGN:

(1) Element of time: Experimental design is time consuming Planning experimental design takes
lot of time because the researcher has to consider pros and cons of various design available to
him
(2) Commitment of management: Experimental design needs high level of management
commitment If management becomes disheartened with any experiment and it is allowed to
lapse without running its full course or is handled half-heartedly, all efforts will be wasted
(3) Range of variation: Under proper condition, experimental design can indicate the effects of
specific variations in one or more elements of the marketing mix The experiment can be done
with only one variable like price or with multiple variables like colour of packaging, channel
of distribution and sales promotion
(4) Cost and accuracy: Experimental design must balance cost constraints with accuracy.
Accuracy is related to the amount of error We should not assume that the possibility of an
experimental error means that the error will occur The cost of running experimental design
should be less and benefits obtained should be more
(5) Identification of variables: Experimental design uses one or more variables in such a way
that its effect on one or more variables can be measured Hence it becomes necessary to
identify the variables correctly
REQUIREMENTS FOR A GOOD EXPERIMENT
1. Absence of Systematic Error

A good experiment should be free from any systematic error. This is possible if experimental
units receiving one treatment do not differ in a systematic manner from other experimental units
given another treatment. This is achieved by randomization.
2. Precision
A good experiment should have maximum precision. The indicator of precision is the magnitude
of standard error, which should be sufficiently small.
3. Range of Validity
To the extent possible, an experiment should be valid in a wide range of conditions so that the
researcher can have a high degree of confidence in its results. An experimental technique that
gives encouraging results in a certain setting may not give favourable results when conditions are
different.
4. Simplicity
If an experiment is a complicated one, it will be difficult to carry it out properly without the help
of trained and qualified personnel. It is, therefore, desirable for the experiment to have a simple
design, particularly when it is to be performed by relatively unskilled people. Also. it is desirable
to use relatively simple methods in the analysis of data.
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5. The Calculation of Uncertainty
A good experiment should enable the researcher to calculate the uncertainty in the estimates of
treatment differences. This would mean that he should be able to ascertain the statistical
significance of the differences between the treatments.
FACTORS AFFECTING THE SELECTION OF SUITABLE METHOD FOR

MARKETING RESEARCH:
The factors to be considered while selecting the method for marketing research (data collection)
are as explained below:
(1) Nature and objectives of research project: The research project may be local or national in
character It may be related to product, package or consumer behaviour A local survey covers
a small area like one town or one district while a national survey covers wide area and
population Similarly/ the objective of the study and the degree of accuracy required need
special consideration while selecting one or the other method For example, mail survey is
convenient for collecting information from large number of people while personal interview
will be convenient when information is to be collected from limited number of respondents
(2) Type of primary data required: One important factor influencing the selection of method is
the type of primary data required for example, qualitative interview is very convenient
method for collecting information on personal motives while telephone survey is convenient
for collecting facts about radio or TV listening by people. Published data can be used if
population data at the national level are required for research purpose.
(3) Cost consideration of research project: MR is always subject to financial support available
to the project. The method which is suitable to the funds available needs to be selected. For
example, desk research is least expensive, but field investigation is expensive. Similarly,
observation methods are more expensive then the experimental methods. In short, the budget
provision need special consideration while selecting the method of research work.
(4) Time consideration of the project: Some methods of MR or data collection are quick while
others are time-consuming. This factor needs attention while selecting a research method.
Field investigation is time-consuming and should be used when sufficient time is available
for the completion of research project. Thus time available for research work is one major
factor which needs careful consideration while selecting the method for data collection.
(5) Physical resources available: Such resources include personnel and administrative
machinery available with the researcher. For example, if there is shortage of skilled
interviewers, the postal survey method is preferable. Similarly, field investigation method
should be used when a researcher with knowledge of statistics is available. Observation and
experimental methods can be used only when skilled and technically qualified persons are
available.
(6) Approach of the company: The approach of the company behind conducting research work
is one important factor which needs consideration while selecting the research method. For
example, a company conducting consumer-oriented marketing research should try to go as
near to the consumers as possible. For this, personal interviews are suitable. For collecting
general information from the consumers, mail order survey is adequate.
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(7) Availability of machinery for processing information: The data collected need to be
processed properly. An organisation with suitable facilities for processing the information
collected should use field investigation methods. In the absence of such facilities, desk
research is convenient.
(8) Type of sponsoring organisation: A big organisation with independent marketing research
department and well-trained staff can select any direct method for research work. In the
absence of such department, the research work should be given to an outside expert agency
like advertising agency.
(9) Coverage of research project: Some research projects have wide coverage. In other cases/
the samples to be examined may be less but detailed information is required to be collected.
The method needs to be selected accordingly. For example^ if the sample is large and the
information to be obtained is simple/ a postal questionnaire is convenient. Personal interview
is suitable when detailed information is required to be collected from limited respondents.
(10) Research facilities available: The marketing research department can conduct research
work independently only when it has a competent machinery to analyse and interpret the data
for drawing conclusions. In the absence of such machinery, the research project should be
handed over to a competent professional agency.
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RESEARCH DESIGNS
The next step after stating the management problem, research purpose, and research hypotheses
and questions, is to formulate a research design. The starting point for the research design is, in
fact, the research questions and hypotheses that have been so carefully developed. In essence, the
research design answers the question: How are we going to get answers to these research
questions and test these hypotheses? The research design is a plan of action indicating the specific
steps that are necessary to provide answers to those questions, test the hypotheses, and thereby
achieve the research purpose that helps choose among the decision alternatives to solve the
management problem or capitalize on the market opportunity
DEFINITIONS OF RESEARCH DESIGN:

(1) According to David J. Luck and Ronald S. Rubin, "A research design is the determination
and statement of the general research approach or strategy adopted/or the particular project.
It is the heart of planning. If the design adheres to the research objective, it will ensure that
the client's needs will be served."
(2) According to Kerlinger "Research design in the plan, structure and strategy of investigation
conceived so as to obtain answers to research questions and to control variance."
(3) According to Green and Tull "A research design is the specification of methods and
procedures for acquiring the information needed. It is the over-all operational pattern or
framework of the project that stipulates what information is to be collected from which source
by what procedures."
The second definition includes three important terms - plan, structure and strategy. The plan is the
outline of the research scheme on which the researcher is to work. The structure of the research
work is a more specific scheme and the strategy suggests how the research will be carried out i.e.
methods to be used for the collection and analysis of data. In brief, research design is the blueprint
of research. It is the specification of methods and procedures for acquiring the information needed
for solving the problem. Questionnaires, forms and samples for investigation are decided while
framing research design. Finally, the research design enables the researcher to arrive at certain
meaningful conclusions at the end of proposed study.
STEPS IN PLANNING THE RESEARCH DESIGN:

There are four broad steps involved in planning the research design as explained below:
(1) Determining work involved in the project:
The first step in planning research design is determining the work involved in the project-and
designing a workable plan to carry out the research work within specific time limit. The work
involved includes the following:
(a) To formulate the marketing problem
(b) To determine information requirement
(c) To identify information sources
(d) To prepare detailed plan for the execution of research project.
This preliminary step indicates the nature and volume of work involved in the research work.
Various forms require for research work will be decided and finalised. The sample to be selected
for the survey work will also be decided. Staff requirement will also be estimated. Details will be
worked out about their training and supervision on field investigators, etc.
In addition, the questionnaire will be prepared and tested. This is how the researcher will prepare
a blue-print of the research project. According to this blueprint the whole research project will be
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implemented. The researcher gets clear idea of the work involved in the project through such
initial planning of the project. Such planning avoids confusion, misdirection and wastage of time,
money and efforts at later stages of research work. The whole research project moves smoothly
due to initial planning of the research project.
(2) Estimating costs involved:

The second step in planning research design is estimating the costs involved in the research
project. MR projects are costly as the questionnaire is to be prepared in large number of copies,
interviewers are to be appointed for data collection and staff will be required for tabulation and
analysis of data collected. Finally, experts will be required for drawing conclusions and for
writing the research report. The researcher has to estimate the expenditure required for the
execution of the project. The sponsoring organisation will approve the research project and make
suitable budget provision accordingly.
The cost calculation is a complicated job as expenditure on different heads will have to be
estimated accurately. The cost of the project also needs to be viewed from the viewpoint of its
utility in solving the marketing problem. A comprehensive research study for solving
comparatively minor marketing problem will be uneconomical.
(3) Preparing time schedule:

Time factor is important in the execution of the research project. Planning of time schedule is
essential at the initial stage. Time calculation relates to the preparation of questionnaire and its
pre-testing, training of interviewers, actual survey work, tabulation and analysis of data and
finally reports writing. Time requirement of each stage needs to be worked out systematically.
Such study will indicate the time requirement of the whole project. Too long period for the
completion of research work is undesirable as the conclusions and recommendations may become
outdated when actually available. Similarly, time-consuming research projects are not useful for
solving urgent marketing problems faced by a company.
Preparing time schedule is not adequate in research design. In addition, all operations involved in
the research work should be carried out strictly as per time schedule already prepared. If
necessary remedial measures should be adopted in order to avoid any deviation in the time
schedule. This brings certainty as regards the completion of the whole research project in time.
(4) Verifying results:

MR findings need to be dependable to the sponsoring organisation. Researcher may create new
problems before the sponsoring organisation if the research work is conducted in a faulty manner.
Such unreliable study is dangerous as it may create new problems. It is therefore, necessary to
keep effective check on the whole research work during the implementing stage. For this suitable
provisions need to be made in the research design.
After deciding the details of the steps noted above, the background for research design will be
ready. Thereafter, the researcher has to prepare the research design of the whole project. He has to
present the project design to the sponsoring agency or higher authorities for detailed consideration
and approval. The researcher can start the research project (as per design) after securing the
necessary approval to the research design prepared.
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TYPES OF RESEARCH DESIGNS
A research design is like a roadmap—you can see where you currently are, where you want to be
at the completion of your journey, and can determine the best (most efficient and effective) route
to take to get to your destination. We may have to take unforeseen detours along the way, but by
keeping our ultimate objective constantly in mind and using our map we can arrive at our
destination. Our research purpose and objectives suggest which route (design) might be best to get
us where we want to go. but there is more than one way to "get there from here." Choice of
research design is not like solving a problem in algebra where there is only one correct answer
and an infinite number of wrong ones. Choice of research design is more like selecting a
cheesecake recipe—some are better than others but there is no one which is universally accepted
as "best." Successfully completing a research project consists of making those choices that will
fulfill the research purpose and obtain answers to the research questions in an efficient and effec-
tive manner.
Choice of design type is not determined by the nature of the strategic decision faced by the
manager such that we would use research design A whenever we need to evaluate the extent of a
new product opportunity, or design B when deciding on which of two advertising programs to
run. Rather, choice of research design is influenced by a number of variables such as the decision
maker's attitude toward risk, the types of decisions being faced, the size of the research budget,
the decision-making time frame, the nature of the research objectives, and other subtle and not-so-
subtle factors. Much of the choice, however, will depend upon the fundamental objective implied
by the research question:
• To conduct a general exploration of the issue, gain some broad insights into the phenomenon,
and achieve a better "feel" for the subject under investigation (e.g.. What do customers mean by
"good value"?).
• To describe a population, event, or phenomenon in a precise manner where we can attach
numbers to represent the extent to which something occurs or determine the degree two or more
variables covary (e.g., determine the relationship between age and consumption rate).
• To attribute cause and effect relationships among two or more variables so that we can better
understand and predict the outcome of one variable (e.g., sales) when varying another (e.g.,
advertising).
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RESEARCH DESIGN
CONCLUSIVE EXPLORATORY
RESEARCH DESIGN RESEARCH DESIGN
CAUSAL RESEARCH DESCRIPTIVE

RESEARCH
CROSS-SECTIONAL LONGITUDINAL
DESIGN DESIGN
SINGLE CROSS-SECTIONAL MULTIPLE CROSS-SECTIONAL

DESIGN DESIGN
This classification is frequently used and is quite popular. Before we discuss each of these design
types, a cautionary note is in order. Some might think that the research design decision suggests a
choice among the design types. Although there are research situations in which all the research
questions might be answered by doing only one of these types (e.g., a causal research experiment
to determine which of three prices results in the greatest profits), it is more often the case that the
research design might involve more than one of these types performed in some sequence. The
overall research design is intended to indicate exactly how the different design types will be
utilized to get answers to the research questions or test the hypothesis.
A further cautionary note is needed to warn the reader that while it may appear that if sequencing
is done the sequence would be exploratory, descriptive, then causal, that is not always the case.
For example, some companies may do an annual survey of consumers to determine the frequency
with which certain behaviors are performed (e.g., washing dishes by hand) followed by
exploratory research that probes to gain an in-depth understanding of the circumstances
surrounding that behavior (i.e., descriptive then exploratory rather than exploratory then
descriptive). It is not hard to imagine a research design that might sequence as exploratory, then
descriptive, then exploratory again; or causal, then descriptive. It is important to remember that
because a research design is a plan of action to obtain answers to the research questions, it is those
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questions that suggest which design types are necessary and the sequence of conducting those
design types, if a sequence is needed. An example later in this chapter will be used to illustrate
this point. With these cautions in mind we will now discuss the design types in greater detail.
1. Exploratory Research:
A marketing research study may be either exploratory or full scale. Exploratory research is
conducted when the researcher does not know how and why certain phenomenon occurs. Here,
the hypothetical solutions or actions are explored and evaluated by the decision-maker, e.g.
evaluation of quality of service of a bank/hotel/airline. Here, the quality cannot be assessed
directly as tangible features are not available.
The purpose of exploratory research is to know the unknown. Exploratory research determines
fruitful alternatives that the executive would not have perceived. This also narrows down the
scope of the investigation. Exploratory research is undertaken to get the answer to the following
question. "What alternative courses of action might solve the problem and thereby reach the final
objective?" This research is unstructured in character. Exploratory studies are important. They
may provide adequate information on a decision situation or may greatly facilitate the design of
formal research studies.
To explore means to find out or discover. Exploratory research is conducted in order to find out
causes/reasons behind a specific marketing problem. It is the starting point in all types of research
projects. The purpose of exploratory research is to define the marketing problem precisely, collect
required information/data relating to the problem and identify alternative courses of action in
order to deal with the marketing problem. For example, advertising campaign of a company may
not give positive results in terms of sales. The failure of campaign may be due to many possible
causes relating to advertising copy, media selected, faulty pre-testing, faulty illustration give,
wrong timing of ad. campaign or finally inadequate follow-up measures to the ad. campaign. In
the exploratory research, the possible causes will be identified, the most appropriate causes will
be selected, hypothesis will be developed and research activity will be conducted accordingly.
Survey of consumers, retailers, sales executives and sales-force will be useful for exploratory
research. On some occasions, small scale sales survey may provide useful data for exploratory
research.
In exploratory research, the stress/focus is on the discovery of ideas/causes. For example, sales
may be declining for the last six months. Quick study may be conducted to find out the
causes/factors responsible. Such causes will be listed. Here, an exploratory study/research may be
conducted in order to find out the most likely cause so as to introduce suitable remedial measures.
The objective of exploratory research is to generate/discover new ideas. The secondary/published

data can be used for exploratory research as such data are easily available. If the services of
respondents are used (for survey purpose), they should be given full freedom to express
themselves. The same rule should be made applicable to focus groups. Exploratory research is
useful for the study of marketing problems about which sufficient information/details are not
available. Exploratory study needs to be flexible in its approach.
Exploratory Research is used:
 To define the problem more precisely.
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 To identify relevant courses of action i.e. find the most likely alternatives, which are then
turned into hypotheses.
 Isolate key variables and relationships for further examinations.
 Gain insights for developing an approach to a problem.
 Establish priorities for further research.
Once a hypothesis is formulated, research is used to determine if the hypothesis was correct.
Hypothesis is tentative answers to questions that serve as guides for most research projects
Exploratory research may also be involved when the perceived problem is much less general; it is
used to develop the most promising hypotheses. The findings of exploratory research should be
regarded as tentative or as an input to further research. Typically, such research is followed by
further exploratory or conclusive research. The analysis of primary data is qualitative.
In general, exploratory research is meaningful in any situation in which the researcher does not
have enough understanding to proceed with the research project.
2. Conclusive Research Design

Conclusive Research Design is typically more formal and structured than exploratory research. It
is based on large representative samples, and the data obtained are subjected to quantitative
analysis. Conclusive Research is designed to assist (he decision maker in determining, evaluating
and selecting the best course of action to take in a given situation. As shown in the figure
conclusive research designs may be either descriptive or causal and descriptive designs may be
either cross-sectional or longitudinal.
(A) Descriptive Research:

Descriptive research is undertaken when the researcher desires to know the characteristics of
certain groups such as age, sex, occupation, income or education. The objective of descriptive
research is to answer the "who, what, when, where and how" of the subject under
study/investigation.
Descriptive studies are normally factual and simple. However, such studies can be complex,
demanding scientific skill on the part of researcher.
Descriptive studies are well structured. It tends to be rigid and its approach cannot be changed
often and again. In descriptive studies, the researcher has to give adequate thought to framing
research questions and deciding the data to be collected and the procedure to be used for this
purpose. Data collected may prove to be inadequate if the researcher is not careful in the initial
stages of data collection.
Descriptive research designs are used for some definite purpose. Descriptive research cannot
identify cause and effect relationship.
Descriptive research is designed to describe the present situation or the features of a group or
users of a product. In marketing, such research is undertaken to know the characteristics of certain
groups or users of a product such as age, sex education, income etc. Such research studies are
based on secondary data or survey research.
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The major objective or descriptive research is to describe something - usually market
characteristics or functions
A major difference between exploratory and descriptive research is that descriptive research is
characterized by the prior formulation of the hypotheses. Thus, the information needed is clearly
defined. As a result, descriptive research is preplanned and structured. It is typically based on
large representative samples A formal research design specifies the methods for selecting these
sources of information and for collecting data from those sources.
Uses of Descriptive Research:

Descriptive research is conducted for the following reasons
1. To describe the characteristics of relevant groups, such as consumers, salespeople, or
organizations, or market areas. For e.g. we could develop a profile of inc "heavy users"
(frequent shoppers) of prestigious department stores such as Shoppers Stop.
2. To estimate the percentage of units in a specified population exhibiting a certain behavior e.g.
the percentage of heavy users of prestigious department stores who also patronize discount
department stores.
3. To determine the " perceptions of product characteristics. For e.g. how do households perceive
the various department stores in terms of salient factors of the choice criteria?
4. To determine the degree to which marketing variables are associated. For e.g.: to what extent is
shopping at department stores related to eating out?
5. To make specific predictions. For e.g. what will be retail sales of Shoppers stop (specific store)
for fashion clothing (specific product category) in the Mumbai area (specific region)?
6. To collect demographic information of consumers/users of a product under study.
7. For finding out views and attitudes of customers, e.g. how many customers prefer branded
goods or ISI marked goods.
8. Make predictions about future marketing trends, consumer needs or expectations or possible
sales after ‗n‘ years.
9. To discover the relationship between certain variables, e.g. sale of toothpaste among rural
population and urban population or rate of savings among low, middle and higher income
groups.
Descriptive research can be divided into the following two categories:

(a) Cross-sectional studies
Cross-sectional study is a study involving a sample of elements from the population of interest at
a single point of time. It is a study concerned with a sample of elements from a given population.
Such sample may deal with households, dealers, retail stores and other entities. Information/data
on a number of characteristics are collected from the sample elements. Such data are analysed for
drawing conclusions. Cross sectional studies include field studies and surveys.
Field studies are conducted is the life situations such as schools, factories, institutions, etc. Here,
the inter-relations among variables are studied under real setting. The cross-sectional analysis
involves counting the simultaneous occurrence of the variables of interest. Field studies have
certain merits and limitations. The important merit is that such studies are close to real life and
cannot be criticised on the ground that they are away from real settings or are artificial. Filed
studies are also socially significant. However such studies are scientifically inferior to laboratory
and field experiments. There is also lack of precision in the measurement of variables.
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Cross-sectional study is possible through survey. Survey research is wide in scope. Detailed
information can be collected from a sample of large population. This method is also economical
as more information can be collected per unit of cost. The time required for sample survey is also
less than a census-inquiry. However, in survey research, more importance is given to information
collection and not to in-depth analysis. Secondly, survey research needs more time and money
when conducted on a large scale.
(b) Longitudinal studies

Longitudinal studies are based on panel methods and panel data. A panel is a sample of
respondents who are interviewed not only once but thereafter from time to time. Here data to be
collected relate to same variables but the measurements are taken repeatedly. For example,
purchase of grocery products by families/ households at regular intervals. Such data will
reflect/indicate change in the buying behaviour of families/households.
There are many advantages and limitations of panel data. Panel data are suitable when the
researcher undertake detailed analysis. Similarly, panel data are more comprehensive as compared
to data collected from individual families. Finally, panel data collected is more accurate as
compared to data collected through survey. These advantages of pan> data improve the quality of
research findings and conclusions.
There are certain limitations of panel data. For example/ panels used for data collection may not
be representative samples. Panel members may not be co-operative or may leave the panel
membership. As a result, the representative character of the original sample may be adversely
affected. Secondly, panel members may report wrong data. Their interest may reduce gradually
and they may supply information in a casual manner. Their sense of participation/responsibility
may reduce. This will affect the quality of data and also of findings.
(B) Casual Research:

Casual research design is the third type of research design. As the name indicates, casual design
investigates the cause and effect relationship between two or more variables. This design
measures the extent of relationship between the variables. Casual research designs attempt to
specify the nature of functional relationship between two or more variables.
Casual research is useful to show the impact of one variable on the other. For example, price and
market demand relationship or relationship between market competition and sales performance.
Even the positive/negative effect of advertising on sales can be studied through casual research.
The relationship between the casual factors can be studied through casual research. In addition,
the variables which create effect on other variables can be studied in depth through casual
research.
Data for casual research can be collected through field survey with the help of a questionnaire or
by conducting laboratory experiments / controlled experiments. Laboratory experiments are
possible in the case of testing of new products or package design.
The casual research design is based on reasoning. The designs for casual research can be divided
into three categories:
(a) Historical
(b) Survey
(c) Experimental.
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IMPORTANCE / UTILITY OF RESEARCH DESIGN

Research design is important as it prepares proper framework within which the research
work/activity will be actually carried out Research design acts as a blue print for the conduct of
the whole research project. It introduces efficiency in investigation and generates confidence in
the final outcome of the study. Research design gives proper direction and time-table to research
activity. It keeps adequate check on the research work and ensures its completion within certain
time limit. It keeps the whole research project on the right track.
Research design avoids possible errors as regards research problem, information requirement and
so on. It gives practical orientation to the whole research work and make it relevant to the
marketing problems faced by the sponsoring organisation. Finally, it makes the whole research
process compact and result-oriented. A researcher should not go ahead with his research project
unless the research design is planned properly.
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TESTING OF HYPOTHESES
(Parametric or Standard Tests of Hypotheses)
Hypothesis is usually considered as the principal instrument in research. Its main function is to
suggest new experiments and observations. In fact, many experiments arc carried out with the
deliberate object of testing hypotheses. Decision-makers often face situations wherein they are
interested in testing hypotheses on the basis of available information and then take decisions on
the basis of such testing. In social science, where direct knowledge of population parameter(s) is
rare, hypothesis testing is the often-used strategy for deciding whether a sample data offer such
support for a hypothesis that generalization can be made. Thus, hypothesis testing enables us to
make probability statements about population parameters). The hypothesis may not be proved
absolutely, but in practice it is accepted if it has withstood a critical testing. Before we explain
how hypotheses arc tested through different tests meant for the purpose, it will be appropriate to
explain clearly the meaning of a hypothesis and the related concepts for better understanding of
the hypothesis testing techniques.
MEANING OF HYPOTHESIS
Ordinarily, when one talks about hypothesis, one simply means a mere assumption or some
supposition to be proved or disproved. But for a researcher hypothesis is a formal question that he
intends to resolve. Thus a hypothesis may be defined as ―a proposition or a set of propositions set
forth as an explanation for the occurrence of some specified group of phenomena either asserted
merely as a provisional conjecture to guide some investigation or accepted as highly probable in
the light of established facts‖. Quite often a research hypothesis is a predictive statement, capable
of being tested by scientific methods, that relates an independent variable to some dependent
variable. For example, consider statements like the following ones:
"Students who receive counseling will show a greater increase in creativity than students not
receiving counseling" or "the automobile A is performing as well as automobile B”.
These are hypotheses capable of being objectively verified and tested. Thus, we may conclude
that a hypothesis states what we are looking for and it is a proposition that can be put to a test to
determine its validity.
CHARACTERISTICS OF HYPOTHESIS
A hypothesis must possess the following characteristics:
(i) Hypothesis should be clear and precise. If the hypothesis is not clear and precise, the
inferences drawn on its basis cannot be taken as reliable.
(ii) Hypothesis should be capable of being tested. In a swamp of un-testable hypotheses, many a
time the research programs have bogged down. Researcher may do some prior study in
order to make hypothesis a testable one. A hypothesis "is testable if other deductions can be
made from it which, in turn, can be confirmed or disproved by observation."
(iii) Hypothesis should state relationship between variables, if it happens to be a relational
hypothesis
(iv) Hypothesis should be limited in scope and must be specific. A researcher must remember
that narrower hypotheses are generally more testable and he should develop such
hypotheses.
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(v) Researchers should state hypothesis as far as possible in most simple terms so that the same
is easily understandable by all concerned. But one must remember that simplicity of
hypothesis has nothing to do with its significance
(vi) Hypothesis should be consistent with most known facts i e., it must be consistent with a
substantial body of established facts. In other words, it should be one which judges accept as
being the most likely
(vii) Hypothesis should be amenable to testing within a reasonable time. One should not use even
an excellent hypothesis, if the same cannot be tested in reasonable time for one cannot spend
a life-time collecting data to test it
(viii) Hypothesis must explain the facts that gave rise to the need for explanation. This means that
by using the hypothesis plus other known and accepted generalizations, one should be able
to deduce the original problem condition. Thus hypothesis must actually explain what it
claims to explain; it should have empirical reference.
BASIC CONCEPTS CONCERNING TESTING OF HYPOTHESES
Basic concepts in the context of testing of hypotheses need to be explained.

(a) Null hypothesis and alternative hypothesis: In the context of statistical analysis, we often
talk about null hypothesis and alternative hypothesis. If we are to compare method A with method
B about its superiority and if we proceed on the assumption that both methods are equally good,
then this assumption is termed as the null hypothesis. As against this, we may think that the
method A is superior or the method B is inferior, we are then stating what is termed as alternative
hypothesis. The null hypothesis is generally symbolized as H0 and the alternative hypothesis as
Ha. Suppose we want to test the hypothesis that the population mean ( .) is equal to the hypo-
thesized mean ( H0) = 100. Then we would say that the null hypothesis is that the population
mean is equal to the hypothesized mean 100 and symbolically we can express as:
H0: = H0 = 100
If our sample results do not support this null hypothesis, we should conclude that something else
is true. What we conclude rejecting the null hypothesis is known as alternative hypothesis. In
other words, the set of alternatives to the null hypothesis is referred to as the alternative
hypothesis. If we accept H0, then we are rejecting Ha and if we reject H0, then we are accepting
Ha. For H0: = H0 =100, we may consider three possible alternative hypotheses as follows:
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The null hypothesis and the alternative hypothesis are chosen before the sample is drawn (the
researcher must avoid the error of deriving hypotheses from the data that he collects and then
testing the hypotheses from the same data).
In the choice of null hypothesis, the following considerations are usually kept in view:
(1) Alternative hypothesis is usually the one which one wishes to prove and the null hypothesis is
the one which one wishes to disprove. Thus, a null hypothesis represents the hypothesis we
are trying to reject, and 'alternative hypothesis represents all other possibilities.
(2) If the rejection of a certain hypothesis when it is actually true involves great risk, it is taken as
null hypothesis because then the probability of rejecting it when it is true is (the level of
significance) which is chosen very small.
(3) Null hypothesis should always be specific hypothesis i.e., it should not state about or
approximately a certain value.
Generally, in hypothesis testing we proceed on the basis of null hypothesis, keeping the
alternative hypothesis in view. Why so? The answer is that on the assumption that null hypothesis
is true, one can assign the probabilities to different possible sample results, but this cannot be
done if we proceed with the alternative hypothesis. Hence the use of null hypothesis (at times also
known as statistical hypothesis) is quite frequent.
(b) The level of significance: This is a very important concept in the context of hypothesis
testing. It‘s always some percentage (usually 5%), which should be chosen, with great care,
thought and reason. In case we take the significance level at 5 per cent, then this implies that H0
will be rejected when the sampling result (i.e., observed evidence) has a less than 0.05 probability
of occurring if H0 is true. In other words, the 5 per cent level of significance means that researcher
is willing to take as much as a 5 per cent risk of rejecting the null hypothesis when it (Ho) happens
to be true. Thus the significance level is the maximum value of the probability of rejecting H 0
when it is true and is usually determined in advance before testing the hypothesis.
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(c) Decision rule or test of hypothesis: Given a hypothesis Ho and an alternative hypothesis Ha,
we make a rule which is known as decision rule according to which we accept H0 (i.e., reject Ha)
or reject Ho (i.e., accept Ha). For instance, if H0 is that a certain lot is good (there are very few
defective items in it) against Ha that the lot is not good (there are too many defective items in it);
then we must decide the number of items to be tested and the criterion for accepting or rejecting
the hypothesis. We might test 10 items in the lot and plan our decision saying that if there are
none or only 1 defective item among the 10, we will accept Ho otherwise we will reject Ho (or
accept Ha). This sort of basis is known as decision rule.
(d) Type I and Type II errors: In the context of testing of hypotheses, there are basically two
types of errors we can make. We may reject H0 when H0 is true and we may accept H0 when in
fact H0 is not true. The former is known as Type I error and the latter as Type II error. In other
words, Type I error means rejection of hypothesis that should have been accepted and Type II
error means accepting the hypothesis, which should have been rejected. Type I error is denoted by
(alpha) known as a error, also called the level of significance of test; and Type II error-is
denoted by (beta) known as -error. In a tabular form the said two errors can be presented as
follows:
The probability of Type I error is usually determined in advance and is understood as the level of
significance of testing the hypothesis. If type I error is fixed at 5 percent, it means that there are
about 5 chances in 100 that we will reject H0 when H0 is true. We can control Type I error just by
fixing it at a lower level. For instance, if we fix it at 1 per cent, we will say that the maximum
probability of committing Type I error would only be 0.01.
But with a fixed sample size, n, when we try to reduce Type I error, the probability of committing
Type II error increases. Both types of errors cannot be reduced simultaneously. There is a trade-
off between these two types of errors, which means that the probability of making one type of
error can only be reduced if we are willing to increase the probability of making the other type of
error. To deal with this trade-off in business situations, decision-makers decide the appropriate
level of Type I error by examining the costs or penalties attached to both types of errors. If Type I
error involves the time and trouble of reworking a batch of chemicals that should have been
accepted, whereas Type II error means taking a chance that an entire group of users of this
chemical compound will be poisoned, then in such a situation one should prefer a Type I error to a
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Type II error. As a result one must set very high level for Type I error in one's testing technique of
a given hypothesis. Hence, in the testing of hypothesis, one must make all possible effort to strike
an adequate balance between Type I and Type II errors.
(e) Two tailed and One-tailed tests: In the context of hypothesis testing, these two terms are
quite important and must be clearly understood. A two-tailed test rejects the null hypothesis if,
say, the sample mean is significantly higher or lower than the hypothesized value of the mean of
the population. Such a test is appropriate when the null hypothesis is some specified value and the
alternative hypothesis is a value not equal to the specified value of the null hypothesis.
Symbolically, the two-tailed test is appropriate when we have H0: = H0 and Ha: H0 which
may mean H0 or > H0. Thus, in a two-tailed test, there are two rejection regions (also
known as critical regions), one on each tail of the curve which can be illustrated in Figure a:
If the significance level is 5 per cent and the two-tailed test is to be applied, the probability of the
rejection area will be 0.05 (equally split on both tails of the curve as 0.025) and that of the accept-
ance region will be 0.95 as shown in the curve in Fig. a. If we take = 100 and if our sample
mean deviates significantly from 100 in either direction, then we shall reject the null hypothesis;
but if the sample mean does not deviate significantly from , in that case we shall accept the null
hypothesis.
But there are situations when only one-tailed test is considered appropriate. A one-tailed test
would be used when we are to test, say, whether the population mean is cither lower than or
higher than some hypothesized value. For instance, if our H0: = H0 and Ha: H0, Then we
are interested in what is known as left-tailed test (wherein there is one rejection region only on the
left tail) which can be illustrated as in Figure b:
Figure a
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Mathematically we can state:

Acceptance Region A: | Z | < 1.96
Rejection Region R: | Z | 1.96
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Figure b

Acceptance Region A: Z > -1.645
Rejection Region R: Z - 1.645
If our = 100 and if our sample mean deviates significantly from 100 in the lower direction, we
shall reject H0, otherwise we shall accept H0 at a certain level of significance. If the significance
level in the given case is kept at 5%, then the rejection region will be equal to 0.05 of area in the
left tail as has been shown in the above curve.
In case our H0: = H0 and Ha: > H0 we are then interested in what is known as one-tailed test
(right tail) and the rejection region will be on the right tail of the curve as shown below:
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Acceptance Region A: Z < 1.645
Rejection Region R: Z 1.645
If our = 100 and if our sample mean deviates significantly from 100 in the upward direction, we
shall reject H0 otherwise we shall accept the same If in the given case the significance level is
kept at 5% then the rejection region will be equal to 0 05 of area in the right-tail as has been
shown in the above curve
It should always be remembered that accepting H0 on the basis of sample information does not
constitute the proof that H0 is true. We only mean that there is no statistical evidence to reject it,
but we are certainly not saying that H0 is true (although we behave as if H0 is true)
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PROCEDURE FOR HYPOTHESIS TESTING
To test a hypothesis means to tell (on the basis of the data the researcher has collected) whether or
not the hypothesis seems to be valid. In hypothesis testing the main question is: whether to accept
the null hypothesis or not to accept the null hypothesis? Procedure for hypothesis testing refers to
all those steps that we undertake for making a choice between the two actions i.e., rejection and
acceptance of a null hypothesis
The various steps involved in hypothesis testing are stated below:

(i) Making a formal statement: The step consists in making a formal statement of the null
hypothesis (H0) and also of the alternative hypothesis (Ha) This means that hypotheses should
be clearly stated, considering the nature of the research problem For instance, Mr. Mohan of
the Civil Engineering Department wants to test the load bearing capacity of an old bridge
which must be more than 10 tons In that case he can state his hypotheses as under:
Null Hypothesis H0: = 10 tons
Alternative Hypothesis Ha: > 10 tons
Take another example The average score in an aptitude test administered at the national level
is 80 To evaluate a state's education system, the average score of 100 of the state's students
selected on random basis was 75. The state wants to know if there is a significant difference
between the local scores and the national scores. In such a situation the hypotheses may be
stated as under
Null Hypothesis H0: = 80
Alternative Hypothesis Ha: 80
The formulation of hypotheses is an important step, which must be accomplished with due
care in accordance with the object and nature of the problem under consideration It also
indicates whether we should use a one-tailed test or a two-tailed test. If Ha is of the type
greater than (or of the type lesser than), we use a one-tailed test, but when Ha is of the type
"whether greater or smaller", then we use a two-tailed test
(ii) Selecting a significance level: The hypotheses are tested on a pre-determined level of
significance and as such the same should be specified Generally, in practice, either 5% level
or 1% level is adopted for the purpose The factors that affect the level of significance are
(a)the magnitude of the difference between sample means
(b) the size of the samples
(c)the variability of measurements within samples
(d) whether the hypothesis is directional or non-directional (A directional hypothesis is one
which predicts the direction of the difference between, say, means). In brief, the level of
significance must be adequate in the context of the purpose and nature of enquiry.
(iii) Deciding the distribution to use: After deciding the level of significance, the next step in
hypothesis testing is to determine the appropriate sampling distribution The choice generally
remains between normal distribution and the t-distribution. The rules for selecting the correct
distribution are similar to those that we have stated earlier in the context of estimation.
(iv) Selecting a random sample and computing an appropriate value: Another step is to select
a random sample(s) and compute an appropriate value from the sample data concerning the
test statistic utilizing the relevant distribution. In other words, draw a sample to furnish
empirical data.
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(v) Calculation of the probability: One has then to calculate the probability that the sample
result would diverge as widely as it has from expectations, if the null hypothesis were in fact
true
(vi) Comparing the Probability: Yet another step consists in comparing the probability thus
calculated with the specified value for , the significance level If the calculated probability is
equal to or smaller than the value in case of one-tailed test (and /2 in case of two-tailed
test), then reject the null hypothesis (i e, accept the alternative hypothesis), but if the
calculated probability is greater, then accept the null hypothesis. In case we reject H0, We run
a risk of (at most the level of significance) committing an error of Type I, but if we accept
H0, then we run some risk (the size of which cannot be specified as long as the H0 happens to
be vague rather than specific) of committing an error of Type II.
FLOW DIAGRAM FOR HYPOTHESIS TESTING

The above stated general procedure for hypothesis testing can also be depicted in the form of a
flow-chart for better understanding as shown below:
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Tests of Hypotheses
Hypothesis testing helps to decide on the basis of a sample data, whether a hypothesis about the
population is likely to be true or false. Statisticians have developed several tests of hypotheses
(also known as the tests of significance) for the purpose of testing of hypotheses which can be
classified as:
(a) Parametric tests or standard tests of hypotheses
(b) Non-parametric tests or distribution-free test of hypotheses.
Parametric tests usually assume certain properties of the parent population from which we draw
samples. Assumptions like observations come from a normal population, sample size is large,
assumptions about the population parameters like mean, variance, etc., must hold good before
parametric tests can be used. But there are situations when the researcher cannot or does not want
to make such assumptions. In such situations we use statistical methods for testing hypotheses,
which are called non-parametric tests because such tests do not depend on any assumption about
the parameters of the parent population. Besides, most non-parametric tests assume only nominal
or ordinal data, whereas parametric tests require measurement equivalent to at least an interval
scale. As a result, non-parametric tests need more observations than parametric tests to achieve
the same size of Type I and Type II errors.
Important Parametric Tests
The important parametric tests are:
(1) z-test
z-test is based on the normal probability distribution and is used for judging the significance of
several statistical measures, particularly the mean. The relevant test statistic, z, is worked out and
compared with its probable value (to be read from table showing area under normal curve) at a
specified level of significance for judging the significance of the measure concerned. This is a
most frequently used test in research studies. This test is used even when binomial distribution or
t-distribution is applicable on the presumption that such a distribution tends to approximate
normal distribution as ‗n‘ becomes larger z-test is generally used for comparing the mean of a
sample to some hypothesized mean for the population in case of large sample, or when population
variance is known. z-test is also used for judging the significance of difference between means of
two-independent samples in case of large samples, or when population variance is known. z-test is
also used for comparing the sample proportion to a theoretical value of population proportion or
for judging the difference in proportions of two independent samples when ‗n‘ happens to be
large. Besides, this test may be used for judging the significance of median, mode, coefficient of
correlation and several other measures.
(2) t-test
t-test is based on t-distribution and is considered an appropriate test for judging the significance of
a sample mean or for judging the significance of difference between the means of two samples in
case of small sample(s) when population variance is not known (in which case we use variance of
the sample as an estimate of the population variance) In case two samples are related, we use
paired t-test (or what is known as difference test) for judging the significance of the mean of
difference between the two related samples. It can also be used for judging the significance of the
coefficients of simple and partial correlations The relevant test statistic, t, is calculated from the
sample data and then compared with its probable value based on t-distribution (to be read from
the table that gives probable values of t for different levels of significance for different degrees of
freedom) at a specified level of significance for concerning degrees of freedom for accepting or
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rejecting the null hypothesis. It may be noted that t-test applies only in case of small sample(s)
when population variance is unknown.
(3) 2-test or Chi-square test

2
- test is based on chi-square distribution and as a parametric test is used for comparing a sample
variance to a theoretical population variance. As a non-parametric test, it "can be used to
determine if categorical data shows dependency or if two classifications are independent. It can
also be used to make comparisons between theoretical populations and actual data when
categories arc used." Thus, the chi-square test is applicable in large number of problems. The test
is, in fact, a technique through the use of which it is possible for all researchers to (i) test the
goodness of fit (ii) test the significance of association between two attributes, and (iii) test the
homogeneity or the significance of population variance.
(4) F-test.
F-test is based on F-distribution and is used to compare the variance of the two independent
samples. This test is also used in the context of analysis of variance (ANOVA) for judging the
significance of more than two sample means at one and the same time. It is also used for judging
the significance of multiple correlation coefficients. Test statistic, F, is calculated and compared
with its probable value (to be seen in the F-ratio tables for different degrees of freedom for greater
and smaller variances at a specified level of significance) for accepting or rejecting the null
hypothesis.
All these tests are based on the assumption of normality i.e., the source of data is considered to be
normally distributed. In some cases the population may not be normally distributed, yet the tests
will be applicable on account of the fact that we mostly deal with samples and the sampling
distributions closely approach normal distributions.
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SAMPLING
SOME BASIC TERMS
1. Population – In statistical usage the term population is applied to any finite or infinite
collection of individuals. It has displaced the older term universe, which is derived from the
universe of discourse of logic. It is practically synonymous with aggregate and does not
necessarily refer to a collection of living organisms.
2. Census - The complete enumeration of a population or groups at a point in time with respect to
well-defined characteristics such as population, production, traffic on particular roads. In some
connection the term is associated with the data collected rather than the extent of the collection
so that the term Sample Census has a distinct meaning. The partial enumeration resulting from
a failure to cover the whole population, as distinct from a designed sample enquiry, may be
referred to as an 'incomplete census‘.
3. Sample - A part of a population, or a subset from a set of units, which is provided by some
process or other, usually by deliberate selection with the object of investigating the properties
of the parent population or set.
4. Sample survey – A survey, which is carried out using a sampling method i.e. in which a
portion only, and not the whole population, is surveyed.
5. Sampling unit - One of the units into which an aggregate is divided or regarded as divided for
the purposes of sampling, each unit being regarded as individual and indivisible when the
selection is made. The definition of unit may be made on some natural basis, for example,
households, persons, units of product, tickets, etc. 01 on some arbitrary basis, e.g. areas defined
by grid coordinates on a map. In the case of multi-stage sampling the units are different at
different stages of sampling, being 'large' at the first stage and growing progressively smaller
with each stage in the process of selection. The term sample unit is sometimes used in a
synonymous sense.
6. Sampling Frame - A list, map or other specification of the units, which constitute the
available information relating to the population designated for a particular sampling scheme.
There is a frame corresponding to each state of sampling in a multi-stage sampling scheme.
The frame may or may not contain information about the size or other supplementary
information of the units, but it should have enough details so that a unit, if included in the
sample, may be located and taken up for inquiry. The nature of the frame exerts a considerable
influence over the structure of a sample survey. It is rarely perfect, and may be inaccurate,
incomplete, inadequately described, out of date or subject to some degree of duplication.
Reasonable reliability in the frame is a desirable condition for the reliability of a sample survey
based on it. In multi-stage sampling it is sometimes possible to construct the frame at higher
stages during the progress of the sample survey itself For example, certain first stage units may
be selected in the first instance, and then more detailed lists or maps be constructed by
compilation of available information or by direct observation only of the first-stage units
actually selected
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7. Sampling design - A. sample design is a definite plan for obtaining a sample from the
sampling frame. It refers to the technique or the procedure the researcher would adopt in
selecting some sampling units from which inferences about the population is drawn. Sampling
design is determined before any data are collected.
8. Statistic(s) and parameter(s) - A statistic is a characteristic of a sample, whereas a parameter

is a characteristic of a population. Thus, when we work out certain measures such as mean,
median, mode etc from samples, then they are called statistic(s) for they describe the
characteristics of a sample. But when such measures describe the characteristics of a
population, they are known as parameter(s). For instance, the population mean ( ) is a
parameter, whereas the sample mean (X) is a statistic. To obtain the estimate of a parameter
from a statistic constitutes the prime objective of sampling analysis.
9. Sampling error - That part of the difference between a population value and an estimate
thereof, derived from a random sample, which is due to the fact that only a sample of values is
observed, as distinct from errors due to imperfect selection, bias in response or estimation,
errors of observation and recording, etc The totality of sampling errors in all possible samples
of the same size generates the sampling distribution of the statistic which is being used to
estimate the parent value
10. Precision - Precision is the range within which the population average (or other parameter)
will lie in accordance with the reliability specified in the confidence level as a percentage of
the estimate ± or as a numerical quantity. For instance, if the estimate is Rs. 4000 and the
precision desired is ± 4%, then the true value will be no less than Rs. 3840 and no more than
Rs. 4160. This is the range (Rs 3840 to Rs. 4160) within which the true answer should lie. But
if we desire that the estimate should not deviate from the actual value by more than Rs. 200 in
either direction, in that case the range would be Rs. 3800 to Rs. 4200.
11. Confidence level and Significance level - The confidence level or reliability is the expected
percentage of times that the actual value will fall within the stated precision limits. Thus, if we
take a confidence level of 95%, then we mean that there arc 95 chances in 100 (or .95 in 1) that
the sample results represent the true condition of the population within a specified precision
range against 5 chances in 100 (or .05 in 1) that it does not. Precision is the range within which
the answer may vary and still be acceptable; confidence level indicates the likelihood that the
answer will fall within that range, and the significance level indicates the likelihood that the
answer will fall outside that range. We can always remember that if the confidence level is
95%, then the significance level will be (100 — 95) i.e., 5%:, if the confidence level is 99%,
the significance level is (100 — 99) i.e., 1%, and so on. We should also remember that the area
of normal curve within precision limits for the specified confidence level constitutes the
acceptance region and the area of the curve outside these limits in either direction constitutes
the rejection regions.
12. Sampling distribution - We are often concerned with sampling distribution in sampling
analysis. If we take certain number of samples and for each sample compute various statistical
measures such as mean, standard deviation, etc., then we can find that each sample may give its
own value for the statistic under consideration. All such values of a particular statistic, say
mean, together with their relative frequencies will constitute the sampling distribution of the
particular statistic, say mean. Accordingly, we can have sampling distribution of mean, or the
sampling distribution of standard deviation or the sampling distribution of any other statistical
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measure. It may be noted that each item in a sampling distribution is a particular statistic of a
sample. The sampling distribution tends quite closer to the normal distribution if the number of
samples is large. The significance of sampling distribution follows from the fact that the mean
of a sampling distribution is the same as the mean of the universe. Thus, the mean of the
sampling distribution can be taken as the mean of the universe.
13. Bias - Generally, an effect which deprives a statistical result of representativeness by

systematically distorting it, as distinct from a random error which may distort on any one
occasion but balances out on the average
14. Biased sample - A sample obtained by a biased sampling process, that is to say, a process
which incorporates a systematic component of error, as distinct from random error which
balances out on the average Non-random sampling is often, though not inevitably, subject to
bias, particularly when entrusted to subjective judgment on the part of human beings
CENSUS SURVEY AND SAMPLE SURVEY:
Census survey means survey or complete enumeration of population with certain objectives. The
government in India after every ten years conducts such census survey. The entire geographical
area and entire population is covered in census survey. The data collected are tabulated and
published as census report. Such census data are used for different purposes including economic
planning and policy decisions. Census survey is a costly and time-consuming activity and also
needs huge organization and manpower for its orderly conduct. In commercial research, such
census survey is not conducted due to various constraints particularly relating to funds, time and
manpower.
Census implies collection of information from each element of the group or population of interest,
(e.g. Survey of industrial consumers). In many cases, complete enumeration is not possible and
the only alternative available is sampling.
Sample survey is the survey of a small representative part of the population taken up for detailed
scrutiny and study purpose. A sample is a small representative of the whole and conclusions
drawn from such sample are equally applicable to the entire population. Sample survey gives the
benefits of census survey but with less time, expenditure and manpower. It is a better substitute to
census survey. Sample surveys are commonly conducted in marketing research projects and gives
promising results.
A survey which is carried out using a sampling method i.e. using a representative portion of the
whole population is called sample survey which is a short cut alternative to census survey but
gives similar benefits.
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REASONS FOR IMPRACTICALITY OF CENSUS
There are certain reasons that make census impractical or even impossible. The reasons are as
follows:
1. Cost: Cost is an obvious constraint on the determination of whether a census should be taken.
If information is desired on grocery purchase and use behavior (frequencies and amounts of
purchase of each product category, average amount kept at home and the like) and the
population of interest is all households in a country, the cost will preclude a census being
taken. Thus a sample is the only logical way of obtaining new data from a population of this
size.
2. Time: The kind of cost we have just considered is an outlay cost. The time involved in
obtaining information from either a census or a sample involves the possibility of also
incurring an opportunity cost. That is, the decision until information is obtained may result in
smaller gain or a larger loss than would have been the case from making the same decision
earlier. The opportunity to make more (or save more. as the case may be) is, therefore,
foregone.
3- Accuracy: A study using a census, by definition, contains no sampling error. A study using a
sample may involve sampling error in addition to other types of error. Other things being
equal, a census will provide more accurate data than a sample. However it has been argued
that a more accurate estimate of the population of a country could be made from a sample than
from a census. Taking a census of a population on a "mail out - mail back" basis requires that
the names and addresses of almost all households be obtained, census questionnaires mailed,
and interviews conducted of those not responding. The questionnaires are sent to a population
of which only about half have completed high school. The potential for errors in a returned
questionnaire is therefore high.
4. Destructive nature of the measurement: Measurements are sometimes destructive in nature.
When they are, it is apparent that taking a census would usually defeat the purpose of a
measurement. If one were producing firecrackers, electrical fuses, or gas seed, performing a
functional use test on a all products for quality control purposes would not be considered from
an economic standpoint. A sample is then the only practical choice. On the other hand, if the
light bulbs, bicycles, or electrical appliances are to be tested, a 100% sample (census) may be
entirely reasonable.
According to Crisp R. D., the fundamental idea of sampling is that a small number of items or
parts (called a sample) are chosen at random from a large number of items or a whole (called a
universe or population) the sample will tend to have the same characteristics and in
approximately the same proportion as the universe.
FEATURES OF SAMPLING
(1) Sampling is a small representative of the whole. It is an effective alternative to the census
survey.
(2) Sampling reduces the time, efforts and money of the researcher on data collection without any
adverse effect on its quality.
(3) The sampling technique is based on the assumption that random selection of sample from the
universe do possesses the same features and characteristics as that of the universe.
(4) The findings of sample survey are accurate and reliable. The larger sample is better as the
results available are more accurate.
(5) Sampling is used in data collection as well as for different purposes in our daily life.
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(6) The concept of sampling is quite common and popular in marketing research as it helps
researchers to finalize their findings and recommendations within a short period.
FEATURES / ATTRIBUTES OF A GOOD / RELIABLE SAMPLE

(1) Goal-oriented: A sample design should be goal oriented. It is means and should be oriented
to the research objectives and fitted to the survey conditions.
(2) Accurate representative of the universe: A sample should be an accurate representative of
the universe from which it is taken. There are different methods for selecting a sample. It will be
truly representative only when it represents all types of units or groups in the total population in
fair proportions. In brief sample should be selected carefully as improper sampling is a source of
error in the survey.
(3) Proportional: A sample should be proportional. It should be large enough to represent the
universe properly. The sample size should be sufficiently large to provide statistical stability or
reliability. The sample size should give accuracy required for the purpose of particular study.
(4) Random selection: A sample should be selected at random. This means that any item in the
group has a full and equal chance of being selected and included in the sample. This makes the
selected sample truly representative in character.
(5) Economical: A sample should be economical. The objectives of the survey should be
achieved with minimum cost and effort.
(6) Practical: A sample design should be practical. The sample design should be simple i.e. it
should be capable of being understood and followed in the fieldwork.
(7) Actual information provider: A sample should be designed so as to provide actual
information required for the study and also provide an adequate basis for the measurement of its
own reliability.
In brief, a good sample should be truly representative in character. It should be selected at random
and should be adequately proportional. These, in fact, are the attributes of a good sample.
ADVANTAGES OF SAMPLING METHOD:

(1) Saves time and money: Sampling facilitates primary data collection easily / quickly and with
less cost. It is time saving and economical method of survey for data collection.
(2) Provides reliable data: The conclusions drawn from the sample survey are reliable, accurate
and also applicable to the whole population/universe. Sampling has no adverse effect on the
quality of data collected. It gives quality results with lesser volume of work.
(3) Scientific base: The concept of sampling has scientific backing as it is based on the law of
statistical regularity and the law of inertia of large numbers.
(4) Facilitates better supervision on data collection: Sampling method is restricted to limited
number of respondents. Naturally effective monitoring and supervision on the data collection
work is possible. This improves the quality of data collected.
LIMITATIONS OF SAMPLING METHOD:

(1) Findings are not completely accurate: The findings of sampling method are reasonably
accurate but not completely accurate .The findings and conclusions drawn from sample survey
may be comparatively less accurate compared with that available from the census technique in
which the entire population is covered.
(2) Findings may not be reliable: The findings may not be reliable if the sample selected is too
small or is not adequately representative in character. In such cases the conclusions drawn
may be misleading and this may affect the quality of research work.
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(3) Difficulties in the selection of representative sample: There are many practical difficulties
in the selection of representative sample. This may defeat the very purpose of sampling..
(4) Data collection difficult in the case of large sample: Data collection becomes difficult when
large size sample is decided. This also leads to more time and money for data collection.
A sample survey is a better alternative to the census or complete investigation, which is lengthy
and also costly. For example, census reports are published by the Government two or three years
after the collection of data. However, survey reports (based on samples) can be prepared and
published within a few months. Thus, sampling is widely used methodology in MR. It is one vital
element of research design.
STEPS IN SAMPLING PROCESS:

Having looked into the major advantages and limitations of sampling, we now turn to the
sampling process. It is the procedure required right from defining a population to the actual
selection of sample elements. There are seven steps involved in this process.
Step 1: Define the population
It is the aggregate of all the elements defined prior to selection of the sample. It is necessary to
define population in terms of
(i) elements
(ii) sampling units
(iii) extent
(iv) time.
A few examples are given here.
If we were to conduct a survey on the consumption of tea in Gujarat, then these specifications
might be as follows
(i) Element: Housewives
(ii) Sampling units: Households, then housewives
(iii) Extent Gujarat State
(iv) Time January 1-10, 1999
If we were to monitor the sales of a product recently introduced by us, the population might be
(i) Element Our product
(ii) Sampling units Retail outlets, super markets, then our product
(iii) Extent Delhi and New Delhi
(iv) Time January 7-14, 1999
It may be emphasized that all these four specifications must be contained in the designated
population Omission of any of them would render the definition of population incomplete
Step 2 : Identify the sampling frame

Identifying the sampling frame, which could be a telephone directory, a list of blocks and
localities of a city, a map or any other list consisting of all the sampling units. It may be pointed
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out that if the frame is incomplete or otherwise defective, sampling will not be able to overcome
these shortcomings
The question is—How to ensure that the frame is perfect and free from any defect Leslie Kish has
observed that a perfect frame is one where "every element appears on the list separately, once
only once, and nothing else appears on the list" This type of perfect frame would indicate one-to-
one correspondence between frame units and sampling units But such perfect frames are rather
rare Accordingly, one has to use frames with one deficiency or another, but one should ensure that
the frame is not too deficient so as to be given up altogether
This raises a pertinent question -What are the criteria for a suitable frame? In order to examine the
suitability or otherwise of a sampling frame, a number of questions need be asked. These are
1 Does it adequately cover the population to be surveyed?
2 How complete is the frame? Is every unit that should be included represented?
3 Is it accurate? Is the information about each individual unit correct? Does the frame as a whole
contain units, which no longer exist?
4 Is there any duplication? If so, then the probability of selection is disturbed as a unit can enter
the sample more than once
5 Is the frame up-to-date? It could have met all the criteria when compiled but could well be
deficient when it came to be used This could well be true of all frames involving the human
population as change is taking place continuously
6 How convenient is it to use? Is it readily accessible? Is it arranged in a way suitable for
sampling? Can it easily be re-arranged so as to enable us to introduce stratification and to
undertake multi-stage sampling?
These are demanding criteria and it is most unlikely that any frame would meet them all
Nevertheless, they are the factors to be borne in mind whenever we undertake random sampling
In marketing research most of the frames are from census reports, electoral registers, lists of
member units of trade and industry associations, lists of members of professional bodies, lists of
dwelling units maintained by local bodies, returns from an earlier survey and large scale maps.
Step 3: Specify the sampling unit

The sampling unit is the basic unit containing the elements of the target population. The sampling
unit may be different from the element. For example, if one wanted a sample of housewives, it
might be possible to have access to such a sample directly. However, it is easier to select
households as the sampling unit and then interview housewives in each of the households.
As mentioned in the preceding step, the sampling frame should be complete and accurate
otherwise the selection of the sampling unit might be defective. It is necessary to get a further
specification of the sampling unit both in personal interviews and in telephone interviews. Thus,
in personal interviews, a pertinent question is—of the several persons in a household, who should
be interviewed? If interviews were held during office timings when the heads of families and
other employed persons are away, interviewing would under-represent employed persons and
over-represent elderly persons, housewives and the unemployed. In view of these considerations,
it is necessary to have a random process of selection of the adult residents of each household. One
method that could be used for this purpose is to list all the eligible persons living at a particular
address and then select one of them.
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Step 4: Specify the sampling method
It indicates how the sample units are selected. One of the most important decisions in this regard
is to determine which of the two—probability and non-probability sample—is to be chosen.
In case of a probability sample, the probability or chance of every unit in the population being in
the sample is known. Further, the selection of specific units in the sample depends entirely on
chance. No substitution of one unit for another is permissible. This means that no human
judgment is involved in the selection of a sample. In contrast, in a non-probability sample, the
probability of inclusion of any unit in the population in the sample is not known. In addition, the
selection of units within a sample involves human judgment rather than pure chance.
In case of a probability sample, it is possible to measure the sampling error and thereby determine
the degree of precision in the estimates with the help of the theory of probability. This theory also
enables us to consider, from amongst the various possible sample designs, the one that will give
the maximum information per rupee. This is not possible when a non-probability sample is used.
Probability sampling enables us to choose representative sample designs. It also enables us to
estimate the extent to which the results based on such a sample are likely to be different from
what we would have obtained had we covered the population in our study. Conversely, the use of
probability sampling enables us to determine the sample size for a given degree of precision,
indicating that our sample results do not differ by more than a specified amount from those
yielded by a study covering entire population.
Although non-probability sampling does not yield these benefits, on account of its convenience
and economy, it is often preferred to probability sampling. If the researcher is convinced that the
risks involved in the use of a non-probability sample are more than offset by its being relatively
cheap and convenient, his choice should be in favor of non-probability sampling.
There are various types of sample designs that can be covered under the two broad groups,
random or probability samples and non-random or non-probability samples.
Step 5: Determine the sample size

In other words, one has to decide how many elements of the target population are to be chosen.
Step 6: Specify the sampling plan
This means that one should indicate how decisions made so far are to be implemented. For
example, if a survey of households is to be conducted, a sampling plan should define a household,
contain instructions to the interviewer as to how he should take a systematic sample of
households, advise him on what he should do when no one is available on his visit to the
household, and so on. These are some pertinent issues in a sampling survey to which a sampling
plan should provide answers.
Step 7: Select the sample
This is the final step in the sampling process. A good deal of office and fieldwork is involved in
the actual selection of the sampling elements. Most of the problems in this stage are faced by the
interviewer while contacting the sample-respondents.
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SAMPLING METHODS/SAMPLING DESIGNS
Sample designs are different methods used for the conduct of sample survey. Quota sampling,
judgment sampling etc. are the non-probability sample designs while random sampling, area
sampling, etc. are the probability sample designs. In brief, the sample designs are divided into the
following two categories:
(a) Probability Sampling Methods
(b) Non-Probability Sampling Method
Types of Sampling Methods
Probability Sampling Non - Probability Sampling
Convenience Judgment Quota Master Panel

Sampling Sampling Sampling Samples
Samples
Systematic Sampling Multi-Stage

Simple Random Sampling
Sampling
Cluster Sampling Multi-Phase
Sampling
Replicated
Sampling
Stratified Sampling Area Sampling
Sequential
Sampling
(a) Probability/Random Sampling Methods

In the probability sampling methods, the sample units are selected at random. This means the
selection is haphazard/arbitrary. Every member in the universe has equal chance of being selected
as the representative. The fact that any item can be selected is known. The selection of sampling
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item is impartial and independent of the person making the study. There is no scope for any
biased selection of sample units.
Probability sampling methods include random sampling, stratified, cluster, sampling, etc. Such
methods are used extensively in marketing research. These methods provide unbiased
information. The probability sampling methods are objectively designed. However, these methods
are time consuming and also costly for use. Greater statistical competence and time are required
to plan and use probability sampling methods.
(b) Non-probability Sampling Methods

Here, sample units are selected in a non-random manner. The selection may be purposive. It may
be based on the convenience or the judgment of the researcher. The selection is deliberate not
random. Every item is not given a definite chance of being included in the sample. The non-
probability sampling ' methods include convenience sampling, judgment sampling, and quota
sampling. In these methods, the sample is selected in a subjective manner and the decision
regarding sample is taken by the researcher * himself. The sample selected may not be
representative of the universe to be studied. The selection of sample may be influenced by the
subjective consideration of the person connected with research work (researcher).
Non-probability sampling methods are also used in marketing research along with probability
methods. Such methods are sometimes preferred because they cost less per observation, require
less time and need relatively little statistical sophistication in planning the sample design and in
the selection the respondents. Probability sampling methods are more scientific and capable of
yielding more representative samples than non-probability sampling methods. However, there is
no sampling method (probability or non-profitability) that can be considered to be best in all
situations. Any suitable method may be selected and used properly for promising results.
PROBABILITY SAMPLING V/S NON-PROBABILITY SAMPLING

Probability Sampling Non-Probability Sampling
(i) Probability sampling provides (i) Non-Probability sampling
Meaning an equal chance of being does not provide an equal chance
selected in the sample to each of being selected in the sample to
element of the population. each element of the population.
(ii) A probability sample is one, (ii) A non-probability sample is
where the selected units have arbitrarily selected.
some specific chance of being
included in the sample.
Type of method It is a systematic and modern It is a traditional and rather

method of sampling outdated method of sampling.
Selection of The sample is selected by chance The sample is selected by choice

sample or at random
Selection process The selection process is The selection process is, at least
controlled objectively so that the partially, subjective
items will be chosen strictly at
random
Benefit It helps to select a truly The sample selected may or may
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representative sample Here, the not be a true representative of the
selection of sample items is whole population as it is selected
independent of the person as per the convenience of the
making the study (researcher) researcher
Nature of process It is a mechanical and It is a mental
mathematical process process/exercise of the
researcher
(A) PROBABILITY SAMPLING METHODS
(1) SIMPLE RANDOM SAMPLING
Random sampling is one popular and extensively used sampling method In this method, each and
every unit of the population has an equal chance of being selected or included in the sample
Random selection does not mean haphazard selection It is one type of selection in which every
item in the universe has an equal chance of being selected alone with all other items In random
sampling, the complete list of the universe is taken but the selection is made 'at random' from this
list However, some uniform system is used for the selection of sample Random sampling is useful
for the conduct of telephone or mail survey It is an ideal method in the surveys of specialized
nature
The process of randomness does not mean that it is 'haphazard', as a layman may be inclined to
think. What it means is that the process of selecting a sample is independent of human judgment.
To ensure this, there are two methods that are followed when drawing a random sample. These
are: (i) the lottery method and (ii) the use of random numbers.
In the lottery method, each unit of the population is numbered and shown on a chit of paper or
disc. The chits are folded and put in a box from which a sample of the requisite size is to be
drawn. In case discs are used, these are well mixed up before a draw is made so that no particular
unit can be identified before it gets selected. The sample is drawn in the same manner as winning
numbers in a lottery are drawn
In the second method, the tables of random numbers are used. The members of the population
are numbered from 1 to N from which n members are selected. This process is explained below
with the help of an illustration.
Suppose a sample of size 50 is to be selected from a population of 500. First, number the 500
units from 1 to 500, the order being quite immaterial. While numbering the units, ensure that each
unit in the population has uniform digits, in this case, three. Thus, 1st unit would have a three-
digit number 001, 2nd unit 002, 10th unit 010, 11th unit O11, and so on. After the units have been
given three-digit numbers, the table of random numbers is to be used. One may start from the left-
hand top corner of the table of random numbers and proceed systematically down sets of three-
digit columns, rejecting numbers over 500 and those that have occurred earlier.
Using the first thousand numbers from the table of random numbers (an excerpt from the table is
given below), a sample of 50 out of 500 will thus be chosen.
231 055 148 389 117 433 495 367 070 313
092 259 113 455 126 426 062 401 100 488
434 325 211 207 398 225 485 035 171 047
318 263 239 108 379 420 122 441 493 310
032 194 144 337 224 006 068 043 500 222
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Advantages Of Simple Random Sampling Method

(1) Simplicity: Simple random sampling is simplest method of probability sampling and can be
used for different types of surveys
(2) Scientific: This method is scientific as there is equal opportunity to every unit for selection as
sample
(3) Truly representative character: The samples selected by this method are truly representative
in character.
(4) Quality results: Random sampling can be used effectively (for quality results) when the
universe to be studied is small and can be listed accurately (e. g. motor car owners in a city)
Limitations Of Simple Random Sampling Method

(1) Difficult when the universe is very large: In simple random sampling, the whole list of
universe is taken up for selection Obtaining the complete and up-to-date list of the universe is
difficult It is difficult particularly when the universe is very large in number.
(2) Costly: The cost for conducting survey by this sampling method is high as the samples are
selected at random and it is obligatory to contact them and collect the information
(3) May prove inefficient: This method may prove to be statistically inefficient and provide a
larger standard of error than the other types of sampling designs
(4) Administrative difficulties: Random sampling involves administrative difficulties as
regards the selection of sample and follow-up measures for the collection of information
(5) May not be fully represented: The sample selected may not be fully representative as the
selection is from the whole population and not from the groups that constitute the population
(2) STRATIFIED SAMPLING:

In stratified sampling, the units included in the sample constitute roughly the same population in
which they are present in the total population
Stratified sampling is also called proportional random sampling. In this sampling, the population
is first subdivided into certain mutually exclusive groups or strata Such groups may be formed on
the basis of geographical area / size of the household or income After stratification, a random
sample of a given size is selected from each stratum of the total population This is how an attempt
is being made to make the sample more representative in character Here, each of the strata is
represented in the sample in relation to its importance
The following example will make this clear.
Strata income per Population number Sample Sample

month (Rs) of households (Proportionate) (Disproportionate)
(1) (2) (3) (4)
0-500 5,000 50 75
501-1000 4,000 40 20
1001-2000 3,000 30 20
2001-3000 2,000 20 25
3001 + 1,000 10 10
15,000 150 150
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In the above example, the population consists of 15,000 households, divided into five strata on the
basis of monthly income. Column (3) of the table shows the sample, i.e., number of households
selected from each stratum. The sample constitutes one per cent of the population. A sample of
this type, where each stratum has a uniform sampling fraction, is called a proportionate stratified
sampling. If, on the contrary, the strata have variable sampling fractions, the sample is called a
disproportionate stratified sample. The figures given in column (4) of the above table show a
disproportionate stratified sample. It will be seen that the sampling fraction varies from one
stratum to another. Thus, for example, it is 0.015 for the monthly income Rs 0-500 and 0.01 for
the stratum, Rs 3001+.
It may he noted that a stratified random sample with a uniform sample fraction results in greater
precision than a simple random sample. But, this is possible only when the selection within strata
is made on a random basis. Further, a stratified proportionate sample is generally convenient on
account of practical considerations,
There are some other considerations in favor of the stratified random sample. The researcher may
be interested in the results for separate strata rather than for the entire population. A simple
random sample will not show results by strata as it presents only an aggregative picture. Another
consideration is that it may be administratively expedient to split the population into strata. Yet
another consideration is that one can use different procedures for selecting samples from various
strata. If the data are more variable in any particular strata, a larger sampling fraction should be
taken in that stratum. This would result in greater overall precision
This method reduces the sampling error and it is a more accurate and representative sampling
method Naturally, it is treated as an improvement over simple random sampling. It provides
information about different components of the total population Use of stratified sampling also
leads to administrative conveniences In order to use a stratified sample, some information
regarding the population and its strata should be available to the researcher
The process of stratified random sampling differs from simple random sampling In simple random
sampling, sample items are chosen at random from the entire universe while in stratified random
sampling, a separate random sample is chosen from each stratum Stratified random sampling is
used in order to increase the precision of sampling estimates.
(3) SYSTEMATIC RANDOM SAMPLING:

In systematic random sampling method, the units of a population are first listed and the sample is
selected as per a well-defined system. The sample is drawn by selecting every nth item is the
sampling frame, "n" is determined on the basis of the desired size of the sample A number is
drawn at random, usually a number between 1 and 10 is selected For example, we have 50,000
items in the universe and a sample size is decided as 5,000 items In our case 'n' is equal to 10
Naturally, we have to select every 10th item from the universe However, the first item is selected
at random e.g. let us take 3. Such numbers are like 3, 13, 23, 33, 43, etc
Advantages of Systematic Random Sampling

(a) It is a simple and unbiased sampling method.
(b) It ensures speedy selection of sample.
(c) It is more efficient statistically than simple random sampling.
(d) It ensures more representative sample.
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Disadvantages of Systematic Random Sampling
(a) It is time consuming and costly.
(b) It can go wrong if every sample is assumed to be similar
(c) It can create more confusion if the selection of sample is reckless.
(4) CLUSTER SAMPLING:

In cluster sampling, individual units are not selected as sample but are grouped together and are
selected group-wise for inclusion in the sample Thus, groups are selected on random basis as
sample For example, the total universe will be divided into number of groups. Each group
contains equal number of items. The sample will be selected in groups only. Similarly, if one
family is selected as sample, the information will be collected from each member of the family.
Such selection of sample in group form is called cluster sampling.
For example, if a survey is to be undertaken in a city to collect data from individual households,
then, selection of households from all over the city would involve a considerable amount of
fieldwork and consequently, would cost more. Instead, a few localities are first chosen. Then, all
the households in these localities are covered in the sample. Apart from reduction in cost, such a
cluster sample would be desirable in the absence of a suitable sampling frame for the whole
population. If, on the other hand, a sample of individual households from the entire city is to be
chosen, it will be necessary to first undertake the listing of all households. In view of the non-
availability of a satisfactory sampling frame, in the case of cluster sampling, such a listing could
be confined to only a few localities that are to be entirely covered in the sample.
A few points regarding cluster sampling may be noted here. First, "whether or not a particular
aggregate of units should be called a cluster" will depend on the circumstances of each case. In
foregoing example, localities were taken as clusters and households as individual units. In another
case, the households may be taken as a cluster and the members of the households as individual
units. Second, it is not necessary that clusters should always be natural aggregates such as locality
constituencies, schools or classes. Artificial clusters may be formed, as is generally done in area
sampling where grids may be determined on the maps. Third, several levels of clusters may be
used in any one sample design. Thus, in a city survey, localities or wards, streets and households
may be selected in which case localities or wards are the clusters at the first level and streets at the
second level and households would be the units.
Cluster sampling method is less costly as the expenditure on traveling of interviewers is

minimized. It is useful when the researcher desires to study the characteristics of certain
individuals or items of identical nature.
(5) AREA SAMPLING:

Area sampling is a form of multi-stage sampling in which maps, rather than lists or registers, are
used as the sampling frame. This method is more frequently used in those countries that do not
have a satisfactory sampling frame such as population lists
In area sampling, the overall area to be covered in a survey is divided into several smaller areas
within which a random sample is selected Thus, for example, a city map can be used for area
sampling Various blocks can be identified on the map and this can provide a suitable frame The
entire city area can be divided into these blocks which are then numbered and from which a
random sample is finally drawn
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In sampling the blocks, stratification and sampling with probability proportional to a measure of
size are commonly employed. However, stratification in area sampling is based on geographical
considerations Thus, when blocks are identified and numbered on the map, they can be grouped
into some meaningful strata representing the different neighborhoods of the town. The point to
emphasize is that these blocks must be identifiable without any difficulty
On the basis of the blocks thus identified, numbered and assigned to strata, a stratified sample of
dwellings can be selected This can be done in either of two ways First, a sample of dwellings may
be drawn from all the dwellings included in a selected block Second, blocks may be divided into
segments of a more or less equal size, and a sample of these segments can be chosen and finally
all the dwellings from the selected segments may be taken in the sample It will thus be seen that
the second method introduces another stage of sampling, namely, segments
Although the above discussion relates to area sampling with respect to a city or town, the same
approach is applicable to a large area, say, a state or a country, the only difference being that one
or more additional stages of sampling may have to be introduced
Finally, it may be pointed out that area sampling is perhaps the only possibility if a suitable
sampling frame is not available
(6) MULTI-STAGE SAMPLING

Multi-stage sampling, as the name implies, involves the selection of units in more than one stage.
In such a sampling, the population consists of a number of first stage units, called primary
sampling units (PSUs). Each of these PSUs consists of a number of second-stage units. First, a
sample is taken of the PSUs, and then a sample is taken of the second-stage units. This process
continues until the selection of the final sampling units. It may be noted that at each stage of
sampling, a sample can be selected with or without stratification.
An illustration would make the concept of multi-stage sampling clear. Suppose a sample of 5000
urban households from all over the country is to be selected. In such a case, the first stage sample
may involve the selection of districts. Suppose 25 districts out of say 500 districts are selected.
The second stage may involve the selection of cities, say four from each district. Finally, 50
households from each selected city may be chosen. Thus, one would have a sample of 5000 urban
households, arrived at in three stages. It is obvious that the final sampling unit is the household.
In the absence of multi-stage sampling of this type, the process of the selection of 5000 urban
households from all over the country would be extremely difficult. Besides, such a sample would
be very thinly spread over the entire country and if personal interviews are to be conducted for
collecting information, it would be an extremely costly affair. In view of these considerations a
sampling from a widely spread population is generally based on multi-stage.
The number of stages in a multi-stage sampling varies depending on convenience and the
availability of suitable sampling frames at different stages. Often, one or more stages can be
further included in order to reduce cost. Thus, in our earlier example, the final stage of sampling
comprised 50 households from each of the four selected cities. Since this would involve the
selection of households all over the city, it would turn out to be quite expensive and time
consuming if personal interviews are to be conducted. In such a case, it may be advisable to select
two wards or localities in each of the four selected cities and then to select 25 households from
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each of the 2 selected wards or localities. Thus, the cost of interviewing as also the time in
carrying out the survey could be reduced considerably.
It will be seen that an additional stage comprising wards or localities has been introduced here.
Thus the sample has become a four-stage sample –
1st stage – districts
2nd stage – cities
3rd stage – localities
4th stage – households
From the preceding discussion it should be clear that a multi-stage sample results in the
concentration of fieldwork. This in turn, leads to saving time, labor and money. There is another
advantage in its use. Where a suitable sampling frame covering the entire population is not
available, a multi-stage sample can be used.
(7) MULTI-PHASE SAMPLING
A multi phase sample should not be confused with a multi-stage sample The former involves a
design where some information is collected from the entire sample and additional information is
collected from only a part of the original sample Suppose a survey is undertaken to determine the
nature and extent of health facilities available in a city and the general opinion of the people. In
the first phase a general questionnaire can be sent out to ascertain who amongst the respondents
had at one time or other used the hospital services. Then, in the second stage, a comprehensive
questionnaire may be sent to only these respondents to ascertain what they feel about the medical
facilities in the hospitals. This is a two-phase or double sampling.
The main point of distinction between a multi-stage and a multi-phase sampling is that in the
former each successive stage has a different unit of sample whereas in the latter the unit of sample
remains unchanged though additional information is obtained from a sub-sample.
The main advantage of a multi-phase sampling is that it effects economy in time, money and
effort. In our earlier example, if a detailed questionnaire is sent out to a large sample comprising
individuals, they would not be able to provide the necessary information. Second, more time will
be required. Finally, it will be far more expensive to carry out the survey, especially when
personal interviews are involved.
(8) REPLICATED SAMPLING

Replicated sampling implies a sample design in which "two or more sub-samples are drawn and
processed completely independent of each other" It was first introduced by ―Mahalnobis" in 1936,
who used the term inter-penetrating sub-samples.
In replicated sampling, several random sub-samples are selected from the population instead of
one full sample. All the sub-samples have the same design and each one of them is a self-
contained sample of the population. For example, take the case of a random sample of 10
households. This sample may be divided into, say, 10 equal sub-samples to be assigned to 10
interviewers. Thus, each interviewer may be required to collect information from 10 households.
A replicated sample is particularly chosen on account of the convenience it affords in the

calculation of standard error. In many complex sample designs, the calculation of standard error
becomes too laborious. Selecting a replicated sample design can considerably reduce this
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difficulty. However, in modem times when computers are being increasingly used, the ease in
calculating standard error has made it somewhat less important. Apart from this advantage, there
are certain other advantages of replicated sampling. First, if the size of a sample is too large, it
may be advisable to split it up into two or more sub-samples. One sub-sample may be used to get
the advanced results of the survey. Second, replicated sampling can indicate the non-sampling
errors.
However, replicated sampling would not be helpful in undertaking a detailed investigation of bias
as the numbers in the separate sub-samples tend to be small Further, such samples do not reveal
any systematic errors that may be more or less common to all interviewers and the compensating
errors which cancel each other out over an interviewer's assignment.
Apart from the above limitations, replicated samples have other disadvantages If personal
interviews are to be conducted, replicated samples turn out to be costlier Likewise, tabulation
costs would be higher than in the case of a single large sample Finally, replicated samples are
more complex to administer.
(9) SEQUENTIAL SAMPLING

In sequential sampling, a number of samples n1, n2, n3…nx are randomly drawn from the
population It is not at all necessary that each sample should be of the same size Generally, the first
sample is the largest, the second is smaller than the first, the third is smaller than the second, and
so on
A sequential sampling is resorted mainly to bring down the cost and hence the smallest possible
sample is used The desired statistics from first sample, ni, are computed and evaluated If these
statistics do not satisfy the criteria laid down, a second sample is drawn The results of the first and
second samples are added and the statistics are recomputed This process is continued until the
specified criteria are satisfied The criteria are usually a minimum significance level, a minimum
cluster size, or a minimum confidence interval
The main advantage of sequential sampling is that it obviates the need for determining a fixed
sample size before the commencement of the survey
Suppose a firm is to decide whether a new product is to be introduced in the market or not It feels
that if it is able to acquire 15 per cent market share in a country within a year, it should introduce
the new product Further, it feels that if a market share of 10 per cent in a few test markets is
achieved, it would be possible to acquire a 15 per cent market share in the country, say, within a
period of six months Now, when the firm has undertaken test marketing, it actually achieved far
more than 10 per cent, say, 20 per cent, of the market share and that too within three months of
test marketing The firm may be sure to achieve the 15 per cent national market share within one
year even though it may not be possible for it to accurately forecast the test market share at the
end of four months
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(B) NON-PROBABILITY SAMPLING METHODS
(1) CONVENIENCE SAMPLING
In convenience sampling, the convenience of the researcher is given importance while selecting
the sample. The researcher as per his convenience decides inclusion of units in the sample. The
items that are easily accessible or easily measurable are included in the sample. Specific
plan/system/method is not used for the selection of items in sample. As a result bias is likely to
enter into the sample selected.
Interviewing respondents on the street or at the bus stop or at the railway station are the examples
of convenience sampling. In this sense, convenience sampling is also called accidental sampling,
as the respondents in the sample are included merely on account of their being available on the
spot where the survey work is in progress. Convenience sampling is more suitable in exploratory
research, where the focus is mainly on getting new ideas and insights into a given problem.
Advantages of Convenience Sampling
(a) It is profitably used in pre-testing of questionnaires
(b) It keeps the researcher free of tension.
(c) It allows the respondents to answer questions in leisure.
Disadvantages of Convenience Sampling

(a) Sampling could be non-representative of the population e.g., students living in college town
may not represent sample of student community.
(b) Problem of element of chance
(c) It cannot rule out bias of respondents.
(2) QUOTA SAMPLING
Quota sampling is quite frequently used in marketing research. It involves the fixation of certain
quotas, which are to be fulfilled by the interviewers
Suppose in a certain territory we want to conduct a survey of households Their total number is
2,00,000 It is required that a sample of 1 per cent, i.e. 2000 households are to be covered We may
fix certain controls which can be either independent or inter-related These controls are shown in
the following tables
A sample of 2000 households has been chosen, subject to the condition that 1200 of these should
be from rural areas and 800 from the urban areas of the territory Likewise, of the 2000
households, the rich households should number 150, the middle class ones 650 and the remaining
1200 should be
Independent Controls
Rural 1200 Rich 150
Urban 800 Middle class 650
Poor 1200
Total 2000 Total 2000
Inter-related Controls
Rural Urban Total
Rich 100 50 150
Middle class 400 250 650
Poor 700 500 1200
Total 1200 800 2000
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from the poor class These are independent quota controls The second table shows the inter-related
quota controls As can be seen, inter-related quota controls allow less freedom of selection of the
units than that available in the case of independent controls
There are certain advantages in both the schemes Independent controls are much simpler,
especially from the viewpoint of interviewers They are also likely to be cheaper as interviewers
may cover their quotas within a small geographical area In view of this, independent controls may
affect the representativeness of the quota sampling Interrelated quota controls are more
representative though such controls may involve more time and effort on the part of interviewers
Also, they may be costlier than independent quota controls
In view of the non-random element of quota sampling, it has been severely criticized especially
by statisticians, who consider it theoretically weak and unsound There are points both in favor of
and against quota sampling These are given below
Advantages of quota sampling

(a) It is economical as traveling costs can be reduced An interviewer need not travel all over a
town to track down pre-selected respondents However, if numerous controls are employed in
a quota sample, it will become more expensive though it will have less selection bias
(b) It is administratively convenient The labor of selecting a random sample can be avoided by
using quota sampling Also, the problem of non-contacts and call-backs can be dispensed with
altogether
(c) When the field work is to be done quickly, perhaps in order to minimize memory errors, quota
sampling is most appropriate and feasible
(d) It is independent of the existence of sampling frames Wherever a suitable sampling frame is
not available, quota sampling is perhaps the only choice available
Limitations of Quota sampling

1 Since quota sampling is not based on random selection, it is not possible to calculate estimates
of standard errors for the sample results
2 It may not be possible to get a 'representative' sample within the quota as the selection depends
entirely on the mood and convenience of the interviewers
3 Since too much latitude is given to the interviewers, the quality of work suffers if they are not
competent
4 It may be extremely difficult to supervise the control and field investigation under quota
sampling
(3) JUDGEMENT SAMPLING
The main characteristic of judgment sampling is that units or elements in the population are
purposively selected It is because of this that judgment samples are also called purposive samples
Since the process of selection is not based on the random method, a judgment sample is
considered to be non-probability sampling
Occasionally it may be desirable to use judgment sampling Thus, an expert may be asked to select
a sample of 'representative' business firms The reliability of such a sample would depend upon the
judgment of the expert The quota sample, discussed earlier, is in a way a judgment sample where
the actual selection of units within the earlier fixed quota depends on the interviewer
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It may be noted that when a small sample of a few units is to be selected, a judgment sample may
be more suitable as the errors of judgment are likely to be less than the random errors of a
probability sample 16 However, when a large sample is to be selected, the element of bias in the
selection could be quite large m the case of a judgment sample Further, it may be costlier than the
random sampling
(4) MASTER SAMPLES
A master sample is one from which repeated sub-samples can be taken as and when required from
the same area or population This was first used in the United States when the US Master sample
of agriculture was taken In this sampling, the rural area of over 3000 US counties was divided
into segments of about four farms each "After selecting a systematic sample of 1/8 of the
segments, the materials were duplicated and made available, with instruction, at low cost" The
crucial point to note in respect of master samples is that "the actual sample for each new survey is
not selected directly from the entire population but from a frame of segments and dwellings that
was selected earlier from the entire population "
The utility of the samples is limited to a relatively short period for there may be changes in the
population which would distort the representative character of the master samples In view of this,
master samples should be relatively permanent, say, dwellings rather than individuals or
household which frequently undergo changes on account of births, deaths and migration The main
advantage of master samples is that they can be expeditiously selected on account of their
simplicity Another advantage is that they are economical, because the same master frame is used
for drawing samples for several surveys, as a result of which the cost incurred on the preparation
of the master frame is spread over these surveys. Further, on account of this economy in each
survey, one can initially spend more to create a good master frame. Thus, economy may lead to
improved quality in the listing.
(5) PANEL SAMPLES
Panel samples are frequently used in marketing research. In panel samples, the same units or
elements are measured on subsequent occasions. To give an example: Suppose that one is
interested in knowing the change in the consumption pattern of households. A sample of
households is drawn. These households are contacted to gather information on the pattern of
consumption, subsequently, say after a period of six months, the same households are approached
once again and the necessary information on their consumption is obtained. A comparison of the
results of the two sets of data would indicate whether there has been any change, and, if so, to
what extent. In fact, the information is collected on a more or less continuous basis with the help
of panel samples.
Panel samples are extremely convenient and economical and the cost of drawing a second sample
is not incurred. But the main limitation of such samples is that it may be difficult to sustain the
interest of individuals included in the panel for a long period. Many respondents on the panel may
refuse to be interviewed twice or may give poor answers. In either case the quality of the survey
will suffer. Another limiting factor in panel samples is that there may be bias on account of the
continued participation in the panel. It is felt that the individual is conditioned to some extent by
the fact that data on purchases are reported. In such a case the purchase behavior of panel
members may become different from others not covered by the panel. Furthermore, panel samples
may turn out to be more expensive while locating the same sample of respondents after a lapse of,
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say, a year, when some of them might have migrated to other areas. This would involve travel
costs in addition to being difficult.
CHARACTERISTICS OF A GOOD SAMPLE DESIGN

Kish mentions that a good sample design requires the judicious balancing of four broad criteria—
goal orientation, measurability, practicality and economy.
Goal orientation
This suggests that a sample design "should be oriented to the research objectives, tailored to the
survey design, and fitted to the survey conditions" If this is done, it should influence the choice of
the population, the measurement as also the procedure of choosing a sample
Measurability
A sample design should enable the computation of valid estimates of its sampling variability
Normally, this variability is expressed in the form of standard errors in surveys However, this is
possible only in the case of probability sampling In non-probability samples, such as a quota
sample, it is not possible to know the degree of precision of the survey results
Practicality
This implies that the sample design can be followed properly in the survey, as envisaged earlier It
is necessary that complete, correct, practical and clear instructions should be given to the
interviewer so that no mistakes are made in the selection of sampling units and the final selection
in the field is not different from the original sample design Practicality also refers to simplicity of
the design, i.e. it should be capable of being understood and followed in actual operation of the
field work
Economy
Finally, economy implies that the objectives of the survey should be achieved with minimum cost
and effort Survey objectives are generally spelt out in terms of precision, i.e. the inverse of the
variance of survey estimates For a given degree of precision, the sample design should give the
minimum cost Alternatively, for a given per unit cost, the sample design should achieve
maximum precision (minimum variance)
It may be pointed out that these four criteria come into conflict with each other in most of the
cases, and the researcher should carefully balance the conflicting criteria so that he is able to
select a really good sample design As there is no unique method or procedure by which one can
select a good sample, one has to compare several sample designs that can be used in a survey This
means that one has to weigh the pros and cons, the strong and weak points of various sample
designs in respect of these four criteria, before selecting the best possible one
METHODS OF DETERMINING SAMPLE SIZE

There are six methods of determining sample size in market research
1. Unaided Judgment – When no specific method is used to determine sample size it is called
unaided judgment. Such approach when used to arrive at sample size gives no explicit
considerations to either the likely precision of the sample results or the cost of obtaining them
(characteristics in which client should have interest). It is an approach to be avoided
2. All-You-Can-Afford - In this method, a budget for the project is set by some (generally
unspecified) process and after the estimated fixed costs of designing the project, preparing a
questionnaire (if required), analyzing the data & preparing the report are deducted, the
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remainder of the budget is allocated to sampling Dividing this remaining amount by the
estimated cost per sampling gives the sample size
This method concentrates on the cost of the information and is not concerned about its value
Although cost always has to be considered in any systematic approach to sample size
determination, one also needs to give consideration to how much the information provided by
the sample will be worth. This approach produces sample sizes that are larger than required as
well as sizes that are smaller than optimal
3. Required Size Per Cell - This method of determining sample size can be housed on simple
random, stratified random, purposive and quota samples For example, In a study of attitudes
with respect to fast food establishments in a local marketing area it was decided that
information was desired for two occupational groups and for each of the four age groups This
resulted in 2x4 =-8 sample cells. A sample size of 30 was needed per cell for the types of
statistical analyses that were to be conducted. The overall sample size was therefore 8 x 30 =
240.
4 Use of Bayesian Statistical Model - The Bayesian model involves finding the difference
between the expected value of the information to be provided by the sample size and cost of
sample. This difference is known as expected net gain from sampling (ENG) The sample size
with the largest positive ENG is chosen.
The procedure for finding the optimal value of ‗n‘ or the size of sample under this approach is
as under:
01. Find the expected value of the sample information (EVSI) for every possible n
02. Also workout reasonably approximated cost of taking a sample of every possible n,
03. Compare the EVSI and the cost of the sample for every possible n. In other words,
workout the expected net gain (ENG) for every possible n as stated below:
For a given sample size (n): (EVSI) - (Cost of sample) = (ENG)
04. From above step the optimal sample size, that value of n, which maximizes the difference
between the EVSI and the cost of the sample, can be determined
The computation of EVSI for every possible n and then comparing the same with the respective
cost is often a very cumbersome task and is generally feasible with mechanized or computer
help. Hence, this approach although being theoretically optimal is rarely used in practice.
5. Use of Traditional Statistical Model - The formula for traditional statistical model depends
upon the type of sample to be taken and it always incorporates three common variables
 an estimate of the variance in the population from which the sample is to be drawn
 the error from sampling that the researcher will allow
 the desired level of confidence that the actual sampling error will be within the allowable
limits
The statistical models for simple random sampling include estimation of means and estimation of
proportion
SAMPLING ERRORS
Whatever kind of sample is taken and whatever the sample size there will always be error arising
from the sampling process. The extent of such error may be defined as the difference between a
sample result, and the result that would have been achieved by undertaking a complete census.
Such errors arise because particular types of cases are under-represented or over-represented in
the sample compared with the population as a whole. If, for example, the cases are individual
consumers, then the under- or over- representation of the sexes, ages or social classes will affect
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the measurement (and, more importantly, the estimates made from them) of a large number of
variables. Lack of representation in the appropriate quantities may be a product of two factors:
systematic error (or bias) and random error (or variance).
Systematic error
Bias arises when the sampling procedures used bring about over- or under- representation of types
of cases in the sample, which is mostly in the same direction. This may happen because:
• the selection procedures are not random,
• the selection is made from a list that does not cover the population, or uses a procedure that
excludes certain groups,
• non-respondents are not a cross-section of the population.
If the selection procedures are not random then it means that human judgement has entered into
the selection process. For example, interviewers may be asked to choose respondents at some
geographical location or to select households in specified streets. The result is likely to be that
certain kinds of people or households or organizations are excluded from the sample. Thus
choosing respondents in a shopping centre will miss out people who seldom or never go shopping;
the selection of households by an interviewer may result in the omission of flats at the tops of
stairs.
If the Electoral Register is used to select adults aged 16 or over, then, as indicated earlier, 16 and
17 year-olds and many of the 18 year-olds will be missing from the list and will be under-
represented in the final sample. The use of telephone directories will under represent certain social
groups less likely to be in the telephone book (or those who are ex-directory). Duplication in lists,
for example in the Yellow Pages, may result in some over-representation. If we try to estimate
sales of soap from a sample of private households, then all users in institutions of various kinds
will be excluded.
Non-response is a problem for both censuses and samples. For censuses it means that the
enumeration will be incomplete. If large numbers are missing, it would be inappropriate to treat
those successfully contacted as a representative sample'. For samples, it means that estimates
made from the sample will he biased if non-respondents are not themselves representative of the
population. If they are representative, then non-response is not so much of a problem; but it may
still mean that analyses are made on the basis of too small a sample.
Whatever the reason for the systematic error, the effect will be that all samples that could be
drawn from a population will tend to result in the same direction of over- or under-representation.
The average of all these samples will then not be the same as the real population average or
proportion. Thus if we took lots of samples using a procedure that tended to omit working
mothers with young children, then all the samples will manifest such under-representation rather
than some over-representing them and some under-representing them so that the average of all
samples was very close to the real population proportion.
Systematic errors cannot be reduced simply by increasing the sample size. If certain kinds of
people are not being selected, cannot be contacted or are not responding, it will not be 'solved' by
taking a bigger sample. Indeed, some kinds of errors -will increase with more interviewers, more
questionnaires and greater data-processing requirements. All the researcher can do is minimize the
likelihood of bias by using appropriate sample designs. Biases for some variables can be checked,
for example against Census data or data from other sources. Sometimes attempts are made to
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discover the characteristics of non-responders, for example by sending out interviewers to non-
respondents to a postal survey, taking 'late' responders as typical of non-responders, or gaining
demographic data from the results of another survey that the non-responders have taken part in.
Random error
If we took a number of random, unbiased samples from the same population there will almost
certainly be a degree of fluctuation from one sample to another. Over a large number of samples
such errors will tend to cancel out, so that the average of such samples will be close to the real
population value However, we usually take only one sample, and even a sample that has used
unbiased selection procedures will seldom be exactly representative of the population from which
it was drawn. Each sample will, in short, exhibit a degree of error. Such error is often called
'sampling error', 'hut it would he clearer to think of it as 'random sampling error' to distinguish it
from bias (which some statisticians and some textbooks, confusingly, categorize as 'non-sampling'
error).
Unlike bias, which affects the general sample composition and relates to each variable being
measured in unknown ways, random sampling error will differ from variable to variable. The
reason for this is that the extent of such error will depend on two factors:
• the size of the sample - the bigger the sample, the less the random sampling error (but by a
declining amount),
• the variability in the population for that particular variable - a sample used to estimate a
variable that varies widely in the population will show more random sampling error than for a
variable that does not.
These two factors are used as a basis for calculating the likely degree of variability in a sample of
a given size for a particular variable. This, in turn, is used as an input for establishing with a
specified probability the range of accuracy of sample estimates, or that sample findings are only
random sampling fluctuations from a population of cases in which the findings are untrue.
NON-SAMPLING ERRORS
Not all errors in a piece of research are a result of the sampling process Certain kinds of error may
arise even if a complete census is taken. There are four main categories of such error:
• response errors,
• interviewer errors,
• non-response errors,
• processing errors.
Where research is based on asking people questions then response errors may arise where, for one
reason or another, respondents give wrong answers. This may be through dishonesty,
forgetfulness, faulty memories. unwillingness or misunderstanding of the questions being asked.
Many of these errors arise as a result of poor or inadequate questionnaire design putting it the
other way round, the potential for such errors to arise can be minimized by careful design of
question-wording, question formulation and questionnaire layout. In interview surveys, whether
face-to-face or by telephone, interviewers may themselves misunderstand questions or the
instructions for filling them in. they may be dishonest, inaccurate, make mistakes or ask questions
in a non-standard fashion. Interviewer training, along with field supervision and control can, to a
large extent, remove the likelihood of such errors, but they will never be entirely eliminated, and
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there is always the potential for systematic differences between the results obtained by different
interviewers.
In nearly all research there will be missing cases, but in survey research there will always be a
degree of non-response because some people will refuse to he interviewed or to complete a
questionnaire, some will be ineligible because they turn out not to be part of the survey
population, some will terminate the interview or refuse to answer some of the questions, and some
will be non-contactable, for example, because they have moved away, died, or are on holiday at
the time of the survey. Even where a census is attempted, it will often remain incomplete. The
extent of non-response will vary considerably according to the type of research, the topic of the
research, and, where based on face-to-face interviews, on the experience and training of the inter-
viewers. Calculating the amount of non-response can be confusing since some researchers will,
for example, take the proportion of refusals in the sample drawn, others will take refusals and
non-contacts as a proportion of those found eligible, and so on.
Processing errors can arise back at the office, particularly at the stage of entering answers to
questions onto a computerized database via a keyboard and screen. Agencies sometimes validate
these entries by, in effect, entering them twice, and the computer checks to see if the two entries
are identical. Alternatively, some agencies check samples of the entries. It is possible, in addition,
to apply range checks and logical checks.
There are, then, a number of sources of non-sampling error, and it is important to bear these in
mind when interpreting survey results, whether based on a sample or not. The crucial point is that
such errors can arise even if a census is taken.
Total survey error

Any research that is based on addressing questions to people and recording their answers risks
error resulting from the respondents themselves and from interviewers where these are used in
addition to those kinds of error that arise in any research from data handling, and from
inadequacies of sampling. Total survey error is the addition of all these sources of error, both
sampling and non-sampling It is difficult to estimate what the total survey error is in any one
survey, and it will tend to vary from question to question. What is certainly true is that the error
that results from random sampling fluctuations - which is the only kind of error that is taken into
account when confidence intervals are calculated or tests are made against the null hypothesis -
accounts for only a very small proportion of the total survey error.
Errors of various kinds can always be reduced by spending more money, for example, on more
interviewer training and supervision, on random sampling techniques, on pilot testing or on
getting a higher response rate. However, the reduction in error has to be traded off against the
extra cost involved. Furthermore errors are often interrelated so that attempts to reduce one kind
of error may actually increase another, for example, minimizing the non-response errors by
persuading more reluctant respondents may well increase response error Non-sampling errors tend
to be pervasive, not well-behaved and do not decrease - indeed may increase - with the size of the
sample. It is sometimes even difficult to see whether they cause under- or over-estimation of
population characteristics. There is, in addition, the paradox that the more efficient the sample
design is in controlling random sampling fluctuations, the more important in proportion become
bias and non-sampling error.
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CONTROLLING NON-SAMPLING ERRORS
In practice, market research agencies make all reasonable attempts, within the limits imposed by
cost and time constraints, to minimize or at least measure the impact or make some estimate of
non-sampling errors and of bias in the sampling procedure. Thus, as far as response errors are
concerned, agencies may:
• pilot-test questionnaires in order to check for misunderstandings of questions,
• analyse tendencies to overclaim or underclaim for certain kinds of consumer behaviour, for
example, the tendency to underclaim the consumption of alcohol, or to overclaim television
watching,
• use aided-recall techniques (prompted lists) to help respondents remember products that they
may have purchased and forgotten about, or radio programs that they forgot they had listened
to,
• use questioning techniques that minimize the effort respondents need to make.
To minimize interviewer error, agencies will often:

• set rigorous training standards for interviewers,
• monitor the process of interviewing by doing 'back checks' - calling or telephoning respondents
who have already been interviewed to check that the interview was carried out properly, or
sending supervisors to accompany interviewers on a regular sample basis,
• computer analyses may be made of questionnaire errors to identify' interviewers who may need
retraining or reminding of particular points.
To minimize errors resulting from non-response, agencies do one or more- of several things:
• for interview surveys interviewers may be asked to make a specified number of callbacks if the
respondent was not at home on the first call Three or four such callbacks may be made, ideally
at different times and days of the week
• interviewers may make an appointment by telephone with the respondent.
• self-completing questionnaires may be left where no contact has been made
• monetary incentives or gifts may sometimes help to improve the response rate,
• interviewers may get a 'foot-in-the-door' by having respondents comply with some small request
before presenting them with the larger survey,
• non-respondents to a postal survey may be sent interviewers to persuade respondents to
complete the questionnaire, or they may be sent further reminders.
Processing errors will be minimized by careful editing and checking of the questionnaires in
addition to the use of data entry validation procedures.
Market research agencies will try to minimize bias by using carefully constructed sample designs
that use random procedures wherever possible, or by imposing restrictions on interviewer choices
where it is not. These sample designs were described earlier. Biases will still remain, however,
and sometimes these are known. Thus it may be known that there are too many women in the
sample, or too few men aged 20-24, compared with known population proportions. Many
agencies will make corrections to the data to adjust for these biases by 'weighting' them.
In the real world of market research agencies and their clients it is unfortunately true that many
clients do not understand or lack interest in the basics of sampling. In consequence many clients
do not ask for estimates of bias or calculations of random sampling error. At the same time the
agencies feel that to produce calculations, for example of confidence intervals for a large number
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of variables will only add confusion and perhaps distrust of the data. In consequence, sampling
errors are often quietly ignored, and the estimates given are taken to be the 'truth'. Agencies will
instead try to assure their clients that the occurrence and impact of non-sampling errors have been
minimized by:
• demonstrating that the procedures for the collection, analysis and reporting of the results are
'respectable', meticulous and thorough,
• showing that the research design features are such as to minimize sources of error within the
parameters set by time and cost,
• emphasizing the extent of quality control checks that will uncover, correct and minimize the
occurrence of 'mistakes',
• making corrections to the resulting data so that known biases are adjusted for.
Beyond these assurances, clients are sometimes given some indication of the extent of random
sampling error that remains. Clients may be given 'read-off tables for groups of products or types
of variable, based on the 'average' variability for that group or type, given a particular sample size.
Important Sampling Distributions

Some important sampling distributions, which are commonly used, are:
1. Sampling distribution of mean: Sampling distribution of mean refers to the probability
distribution of all the possible means of random samples of a given size that we take from a
population. If samples are taken from a normal population, N ( , ), the sampling
distribution of mean would also be normal with mean x = and standard deviation = /
n , where is the mean of the population, is the standard deviation of the population and
n means the number of items in a sample. But when samplings from a population which is not
normal (may be positively or negatively skewed), even then, as per the central limit theorem,
the sampling distribution of mean tends quite closer to the normal distribution, provided the
number of sample items is large i.e., more than 30. In case we want 'o reduce the sampling
distribution of mean to unit normal distribution i.e., N (0, 1), we can write the normal variate z
x
= for the sampling distribution of mean. This characteristic of the sampling distribution
v/ n
of mean is very useful in several decision situations for accepting or rejection of hypotheses.
(2) Sampling distribution of proportion: Like sampling distribution of mean, we can as well have
a sampling distribution of proportion. This happens in case of statistics of attributes. Assume
that we have worked out the proportion of defective parts in large number of samples, each
with say 100 items, that have been taken from an infinite population and plot a probability
distribution of the said proportions, we obtain what is known as the sampling distribution of
proportion. Usually the statistics of attributes correspond to the conditions of a binomial
distribution that tends to become normal distribution as n becomes larger and larger. If p
represents the proportion of defectives i.e., of successes and q the proportion of non-defectives
i.e., of failures (or q == 1 — p) and if p is treated as a random variable, then the sampling
p q
distribution of proportion of successes has a mean = p with standard deviation =
n
where n is the sample size. Presuming the binomial distribution approximating the normal
distribution for large n, the normal variate of the sampling distribution of proportion
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px - p
z = where px is the sample proportion of successes, can be used for testing of
p´ q
n
hypotheses.
3. Student's t-distribution: When population standard deviation ( ) is not known and the sample
is of a small size (i.e., n 30), we use t distribution for the sampling distribution of mean and
workout t variable as:
n
X- m åi= 1 ( X i - X )2
t= where i.e., the sample standard deviation, t-distribution is also
ss n- 1
n
symmetrical and is very close to the distribution of standard normal variate, z, except for small
values of n. The variable t differs from z in the sense that we use sample standard deviation ( s)
in the calculation of t, whereas we use standard deviation of population ( ,) in the calculation
of z. There is a different t distribution for every possible sample size i.e., for different degrees
of freedom. The degrees of freedom for a sample of size n is n - 1. As the sample size gets
larger, the shape of the t distribution becomes approximately equal to the normal distribution.
In fact for sample sizes of more than 30, the t distribution is so close to the normal distribution
that we can use the normal to approximate the t-distribution. But when n is small, the t-
distribution is far from normal but when n ® ¥ , t-distribution is identical with normal
distribution. The t-distribution tables are available which give the values of t for different
degrees of freedom at various levels of significance. The table value of t for given degrees of
freedom at a certain level of significance is compared with the calculated value of t from the
sample data, and if the latter exceeds, we infer that the null hypothesis cannot be accepted.
4. F distribution: If ( s1)2 and ( s2)2 are the variances of two independent samples of size n1 and n2
respectively taken from two independent normal populations, having the same variance,
2
( X 1i - X 1)
(s n1) = (s n 2) , the ratio F= ( s1) /( s2) , where (s s1) = å
2 2 2 2 2
and
n1 - 1
2
( X 2 i - X 2)
(s s 2) = å
2
has an F distribution with n1 — 1 and n2 — 1 degrees of
n2 - 1
freedom. F ratio is computed in a way that the larger variance is always in the numerator.
Tables have been prepared for F distribution that give value of F for various values of degrees
of freedom for larger as well as smaller variances. The calculated value of F from the sample
data is compared with the corresponding table value of F and if the former exceeds the latter,
then we infer that the null hypothesis of the variances being equal cannot be accepted.
5. Chi-square ( 2) distribution: Chi-square distribution is encountered when we deal with
collections of values that involve adding up squares. Variances of samples require us to add a
collection of squared quantities and thus have distributions that are related to chi-square
distribution. If we take each one of a collection of sample variances, divide them by the known
population variance and multiply these quotients by (n — 1), where n means the number of
items in the sample, we shall obtain a chi-square distribution. Thus, ( )´ (n - 1) would have
s s2
s 2p
the same distribution as chi-square distribution with (n - 1) degrees of freedom. Chi-square

distribution tat not symmetrical and all the values arc positive. One must know the degrees of
freedom for using chi-square distribution. This distribution may also be used for judging the
significance of difference between observed and expected frequencies and also as a test of
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2
goodness of fit. The generalized shape of distribution depends upon the degree of freedom
and the 2 value is worked out as under:
2
k
(Oi - Ei )
2
g = åi= 1 Ei
Tables are there that give the value of 2 for given degree of freedom which may be used with
calculated value of 2 for relevant degree of freedom at a desired level of significance for testing
hypotheses.
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MARKETING INFORMATION SYSTEM (MIS)
MEANING OF MARKETING INFORMATION SYSTEM (MIS)
Companies in India and across the world have been forced recognize and acknowledge - the rising
power of customers (across all classes) and the emerging new generation of competitors. This rise
in customer power has gained prominence especially in the post-liberalization scenario, which is
triggered by the extensive deregulation and the general import duty reduction, leading to cutthroat
competition. Given this scenario, it is no wonder that firms are faced with the task of building up
a database of customers (existing and potential), enhance their product/service offerings
continuously, understand their customers' perceptions of its product and services vis - a - vis that
of their competitors and also to innovate (product and service mix) regularly so as to be able to set
them apart from the rest of the pack. This is no easy job because data may be available in plenty
but it has to be sorted and resorted so to ensure that this data reaches the people who need the
information for decision-making.
Thus has begun the age of information explosion with marketing decision makers and also the
other managers having learned that they need certain kinds of information during regular intervals
of time in order to deal with recurring decisions.
Marketing information system (MIS) is of recent origin and supports marketing decision-making
and marketing planning. It facilitates quick marketing decision-making and thereby raises
marketing excellence. However, MIS is not a substitute for, but an aid to rational decision-
making. Even after collecting all required information, the decisions are to be made by marketing
executives. Information is those cues that make managerial decisions scientific. In brief, MIS is an
essential support system for developing marketing decisions, plans and strategies.
Marketing information includes all facts, estimates, opinions and other data used in marketing
decision-making. A lot of information is generated regularly from within the organization and also
from external sources. Such information can be collected purposefully for planning business
activities and for decision-making. Information is useful to top and middle level management for
planning and control of marketing activities. The marketing manager takes marketing decisions in
the light of the information supplied through MIS. He is like a pilot on the flight desk controlling
aircraft as per the information available through instrument panels. Such information system
provides updated and varied type of information in an uninterrupted manner to a business
organization. In fact, information is the glue that holds organization together. Every organization
needs efficient MIS to effectively manage the information collected. In business organizations,
marketing information managers are appointed and are responsible for creation and dissemination
of marketing information throughout the organization.
The meaning of MIS can be made clear with the help of a simple example of a pilot of an aircraft.
When a pilot is at the controls of his aircraft, he is constantly monitoring its (aircraft's)
performance in relation to air speed/ light and altitude, engine revolutions so that the, flight can
continue safely towards a destination. The task of piloting the plane centers on his receiving
information through the instrument panels on his flight deck. He takes decisions and sees that the
plane moves towards the destination quickly and safely. In many ways managing business or
marketing activity is like piloting an aircraft. In order to achieve marketing objective, correct
decisions must be taken and correct decision-making is possible only when reliable, up-to-date
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and adequate information is made available regularly and promptly. This suggests the meaning
and significance (importance) of MIS.
It may also be noted that information has no value until managers use the information collected to
make better marketing decisions. For this the information gathered through MIS/marketing
intelligence/ marketing research should be distributed promptly to the right marketing managers at
the right time. Developments in information technology have brought a revolution in information
distribution. In many companies, marketing managers have direct access to the information
network at any time and from virtually any location. This is due to advances in computers,
software and telecommunication.
For the purpose of decision-making, marketers generally require three types of information
• Information for the Purpose of Control: In order to ensure effective control, marketers are
interested in having access to weekly sales reports (on sales territories, product-wise etc.), sales-
expense ratios, warehouse inventory reports, etc. Such information will enable the marketer to
know what is happening, what has happened in the past or what changes may be required to be
taken in the future.
• Information for Planning Purpose: This will include economic and sales forecasts,
understanding demographic profiles, estimating social and political shifts
• Information for an ad-hoc Study: This could be information being sought for one-time
decisions or study like - whether a proposed new product is to be introduced? What sort of an
advertisement should for used for a national campaign and so on.
The latter two types of information involve research. If the reports are not fed into the formal
information system and is basically in the possession of the person who was originally seeking the
information, then this may lead to another problem, i.e. another group or department may be
seeking this type of information but in the absence of a formal filing of the research report, may
be unaware that such a study has already been conducted.
This reiterates the fact that an effective Marketing Information System must be such that it is able
to identify, manage and disperse all the above-mentioned three types of information. Moreover,
the information systems will also have an impact on the location and methods of Marketing
Research.
It is to be noted that the Marketing Information System is spoken to be as the same u&
Management Information System. This is because the systems are quite similar with the only
distinction that the former system applies to a system dedicated to the marketing branch of
management, while the latter refers to the whole spectrum of management. As mentioned earlier
MIS can also be termed as an extension of the scope of Marketing Research. A more limited
meaning of a MIS is that of a computerized network which stores and supplies management
information. This means that the co-ordinated efforts of MIS and Marketing Research will enable
the management to take better decisions by supplying data and analytical operation facilities to
the Marketing Research and thereby relieving the latter from routine data and reports.
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DEFINITIONS OF MARKETING INFORMATION SYSTEM:
(1) "A set of procedures and methods for the regular and planned collection, analysis and
presentation of information in making marketing decisions.” – Cox and Good
(2) "A continuing and interacting structure of people, equipment and procedures to gather, sort,
analyze, evaluate, and distribute pertinent, timely and accurate information for use by marketing
decision-makers to improve their marketing planning, execution, and control.” – Philip Kotler
(3) "Marketing information system (MIS) is an ongoing, organized set of procedures and methods
design to generate, analyze, disseminate, store, and retrieve information for use in making
marketing decisions." – William Stanton
(4) "Marketing information system (MIS) consists of people and/or equipment organized to
provide for the continuous, orderly collection and exchange of information – both internal and
external needed in a firm’s decision making activities." – George Kress
FUNCTIONS OF MARKETING INFORMATION SYSTEM:

(1) Assembling of information or relevant marketing data through internal and external
sources Such data act as raw material of MIS
(2) Processing of information viz. editing, tabulating and summarizing the data collected
for the purpose of ready reference and critical analysis In short/ MIS decides the
information needs of the organization and generate and process such information on a
continuing basis
(3) Analyzing the data collected which is essential for drawing conclusions for decision-
making
(4) Storing of data collected viz. filing and indexing of information collected so that it can
be made available for use when required
(5) Evaluating the data viz. finding out accuracy and reliability of the data collected
(6) Disseminating relevant information to decision-makers - Marketing Managers
(7) Updating the information collected periodically by discarding outdated data and
incorporating new data available
(8) Introducing updated information technology in the collection / processing and storing
of the information collected
CHARACTERISTICS OF MIS:
(1) Continuously operated process: Information is a skilled human accomplishment MIS is a
consciously developed technique for the flow of information to the company. It operates
continuously. Regular inflow of information acts as a feedback in decision-making. It is an
ongoing process as new information is added to the old one in a continuous manner. The
information supplied by the MIS should be relevant and pertinent.
(2) Operates with speed and accuracy. Electronically operated data processing technique can be
used to collect and process new information. Computers are now used for raising the
efficiency of MIS. This brings speed and accuracy in the MIS and indirectly in the decision-
making process.
(3) Needs cooperation of departments and executives: Close cooperation and understanding
among functional departments, executives and specialists (computer expert programmer and
system analyst) are essential for purposeful collection and utilization of the market
information. Information collection is important but its actual use in the decision-making
process is more important. For this, cooperation of departments and executives is essential.
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(4) Facilitates prompt and correct decision-making: MIS provides updated information on
various aspects of marketing to managers/ executives. As a result, managers are aware of new
marketing developments taking place. They are also in a position to take prompt decisions
from time to time due to the feedback provided by MIS. It acts as a data bank for the benefit
of marketing managers. MIS stands between the marketing environment and marketing
decision maker. Marketing data flow from the environment to the MIS. The data is processed
and converted into marketing information flow, which goes to the marketer for decision-
making.
(5) Future-oriented: MIS provides information about possible future problems and their
solutions through appropriate marketing decisions. It acts as a preventive mechanism in
marketing management and offers guidance to marketing executives.
(6) Provides continuous information on marketing developments: MIS collects and provides
information on marketing to concerned executives. It goes to right people at the right time. In
other words, it provides right information at the right time to right people for decision-making.
As a result, decision-making process becomes reasonably accurate and quick. MIS usually
provides three types of information to marketing managers. The information could be
recurrent (information supplied on a periodic basis), monitoring (information obtained from
regular scanning of certain sources) and requested (information sought by a marketing
manager
(7) Acts as a link between external environment and internal resources: It provides updated
information about external marketing situation and facilitates suitable adjustment in the
internal resources to face the overall situation effectively.
(8) Operates in a systematic manner: MIS operates in a rational and systematic manner. This is
necessary for quick reference to required information. Proper system in the collection and
storing of information is necessary as varied type of information is now easily available. Such
information needs to be stored after due classification, etc. In brief, MIS needs well-prepared
operational system for raising its utility and efficiency.
(9) Uses modern technologies: Revolutionary changes are taking place in information
technology. New techniques and machines are available for collection, processing and storage
of information. Required information is made available to marketing executives promptly.
MIS is now becoming costly and also needs the services of technically qualified staff
(software experts). MIS is now based on advanced technology. It is a computer-based method
of data collection, processing and storage. Due to the use of computers updated information is
provided to executives easily and quickly.
OBJECTIVES OF MARKETING INFORMATION SYSTEM

Marketing information system is a scientific method of collecting information, arranging them in
order and reporting to suit and feed the organization with information.
1. To gather data and information needed by the organization
2. To supply and maintain the flow of information periodically and continuously.
3. To provide pertinent and relevant data needed by the executives.
Hence Marketing Information System must provide:

1. Desired Information to the Executives: This is possible only by assessing the actual needs of
the executive. Analysis of each executive's decision-making responsibilities should clarify his or
her marketing information requirements; thereby identifying the information outputs that the
marketing information system should provide him or her. The composite of the marketing
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information requirements for entire organization thus identifies the variety and nature of specific
information output that the marketing information system should provide.'
2. Supply Needed Information: It is not dumping information that is not needed or irrelevant. It
is to supply needed information 'Each executive wants complete and accurate information
received on a timely basis yet not provided (routinely) in overwhelmingly and confusingly large
quantities. It is ironic that while organizations generate increasingly massive volumes of data,
many executives continue to voice complaints that available information is too incomplete and not
sufficiently relevant or timely to use as a basis for marketing decisions. The marketing
information system should have the built-in capability of extracting from the data bank timely
items of information relevant for each executive's use in decision-making.
FACTORS JUSTIFYING THE NEED OF MARKETING INFORMATION SYSTEM: The

following points justify the need as well as importance of MIS:
1. Need of correct decision-making: MIS is needed for correct decision-making by marketing
managers. They understand current market situation with the help of such information. If the
information is reliable, the manager can take the final decision quickly and with confidence.
Decisions relating to products, prices, sales promotion measures, channels of distribution, etc.
can be taken by collecting and using the marketing information in a purposeful manner. This
is natural as correct view of total marketing environment is possible only through accurate
MIS.
2. Need of promptness in decision-making: In the present aggressive marketing system, quick
marketing decisions are necessary. Time factor is important in decision-making and all
decisions must be taken quickly as delayed decisions are costly and troublesome to a firm.
Delayed decisions means not taking the benefit of promising marketing opportunities. Support
of reliable and updated information is essential for such quick decision-making. MIS provides
regular feedback, which is a must for decision-making in the present ever-changing business
environment.
A marketing manager can now collect required information while working at a home office, in
a hotel room or an airplane with the use of a laptop computer and phone. He can obtain
information from company databases or from outside information services. He can analyze the
information with the help of statistical packages and models; draw conclusions and
communicate decisions through electronic communications.
3. Growth of consumerism and growing consumer expectations: Consumerism is a growing
force in modern marketing. Consumers are now conscious and oppose their exploitation. Their
resistance is always harmful to marketing companies. It is, therefore, necessary to study their
expectations. For this, MIS is needed. In addition, needs and expectations of consumers
require careful consideration in marketing planning and decision-making. Information about
the needs and grievances of consumers is available through MIS.
4. Complex nature of marketing system: Marketing system has become complex due to
market competition, availability of substitutes, government controls and growth of
consumerism. Long term planning and correct decision-making are required to face the
challenges of current marketing environment. For this, accurate information about complex
marketing environment is required. This is possible through MIS.
5. Growing market competition: Marketing is, now/ highly competitive with different varieties
of products. Competition may be due to price, quality and sales promotion techniques. A
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marketing manager needs accurate and updated information about market competition and
policies of competitors. It is through MIS that information regarding market competition can
be collected, analyzed and used while taking marketing decisions.
6. Information explosion: There is information explosion in the business world due to the use
of new techniques of information collection and dissemination. A firm may not require all
information available from different sources. It is necessary to find out precisely the
information needs of the enterprise and sources that can supply such information.
Accordingly, MIS should be organized.
7. Rapid developments in information technology: Fast changes are taking place in the field
of information technology. Computers, internet, e-commerce, fax, e-mail and other
instruments are used extensively for managing huge information easily, quickly and
economically. A business firm needs efficient MIS in order to use latest information in
marketing management. In short, information serves as the lifeblood of modem marketing
management. Lower level management needs operational information for taking operational
decisions while top-level management needs strategic information for taking strategic policy
decisions. There is a flood of information (information explosion) knocking at the door of the
management and management has to use such information for its survival, stability and
growth. Marketing executives need market information (feedback) for correct decision-
making. Even marketing activities are now becoming complex and broader in scope. These
activities can be conducted in an orderly manner with the support of good MIS. In brief, MIS
is needed for dealing with new marketing problems and challenges effectively.
DESIGNING MARKETING INFORMATION SYSTEM

MIS involves collection, processing, storing, evaluating and supplying information to marketing
mangers for decision-making. A firm needs suitable organizational structure for managing MIS.
Every business unit has to design its own MIS as per its needs - present and future. Attention
should be given to the following aspects/points while designing MIS:
(1) Identify precisely the information needs: The firm has to find out its information needs i.e.
the type of information that it requires for taking marketing decisions. There is information
revolution in the business world. However, all information is not useful to all enterprises. It is
necessary to identify the information needs so as to collect, arrange and store the required
information properly.
(2) Identify the sources of required information: The required information for the enterprise
can be collected from different internal and external sources. The sources that can supply
required information easily and economically are to be identified for actual use in the
information collection process.
(3) Estimate the expenditure required on MIS: In this stage, the firm has to estimate the cost of
collecting and processing the required information. There should be cost-benefit analysis of
MIS. It is a non-productive service activity. Expenditure is required in order to collect,
arrange, process and store the required information. Such expenditure should be minimum as
far as possible. At the same time, required information should be collected and made available
for decision-making.
(4) Collection of information: After deciding the information required and its sources, the next
step is to collect the information from the sources selected. For this, suitable department with
necessary facilities, infrastructure and expert staff should be established. The department has
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to collect and store the information systematically in computers, files, etc. This will enable the
MIS department to supply information to other departments when required.
(5) Processing of information: The next step is data processing in which data are arranged
properly for quick analysis by departments. The updating of data is also necessary in order to
supply latest information to concerned departments. This facilitates reasonably accurate
decision-making by departments.
(6) Creation of information/data bank: With the completion of the steps noted above, there will
be an information bank within the organization. It will have information required by all
departments. The information will be properly processed, arranged and stored for ready
reference. MIS department will maintain effective communication with all other departments
so that information will be supplied to them quickly as per their need for decision-making.
PRECAUTIONS IN USING MIS

1. The firm should not put too much emphasis only on a computerized information system and
lose sight of the importance of human processors.
2. Efforts should be made to ensure the quality of data and not accept all computer output as
gospel because there is an old adage which goes as - "garbage in -garbage out".
3. Specific care be exercised that computer outputs should not be voluminous so as to discourage
use by marketing decision makers.
4. The Marketing Information should be flexible enough to be adjusted according to the specific
use by decision makers and serve all levels of management.
5. When newly establishing and developing a Marketing Information System rather than making
it very sophisticated at the outset itself, it will help if improvising is done by stages.
6. Executives and managers wanting Marketing Information should be properly trained and also
communicate the type of information being sought.
SOURCES OF MARKETING INFORMATION SYSTEM:

In MIS, information is collected, arranged, stored and made available to departments and
managers for decision-making. Information is the base of MIS. Such information is collected from
different sources, which include internal and external.
Internal Sources of Information:

(1) Old statistical records of the company.
(2) Sales invoices and sales statistics
(3) Sales-force reports
(4) Sales Analysis
(5) Production statistics
(6) Profit and Loss statements
(7) Operating Ratios
(a) Gross Margin ratios
(b) Expense Ratios
(c) Net Profit Ratios
(8) Departmental budgets and reports
(9) Old research reports and surveys
(10) Periodical progress reports
(11) Directors' reports and committee reports.
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External Sources of Information:
(1) Trade journals and periodicals
(2) Business press i.e. Economic Times, Financial Express, etc
(3) Census reports and other government publications on business, finance, marketing, exports,
etc.
(4) Publications of trade associations, chambers of commerce and other agencies concerned
with finance, trade, commerce and industry
(5) Publications of RBI/ financial institutions, term lending institutions and government
departments
(6) Publications and survey reports of IMF, World Bank, WTO, FAO/ etc.
(7) Published survey reports and statistical data
(8) Special reports, surveys etc. conducted by marketing research agencies, magazines,
advertising agencies etc.
(9) Publications of stock exchanges, commodity exchanges and export promotion councils
(10) Daily press, reports and information.
(11) Marketing Research
(12) Syndicated services
ADVANTAGES / BENEFITS OF MIS

(1) Provides updated and timely information for decision-making: MIS provides information
about various aspects of marketing. Information acts as a feedback and facilitates correct
decision-making by marketing managers. Likely problems are solved at the initial stage
through suitable preventive measures. Thus, MIS facilitates effective decision making by
marketing executives. It acts as the lifeblood of modern marketing management.
(2) Facilitates monitoring of marketing operations: Data on different aspects of marketing can
be collected and stored through MIS. This facilitates easy and effective monitoring of the
performance of products, markets, sales-force and so on. Thus, continuous monitoring of
marketing operations is possible through MIS.
(3) Raises efficiency of decision-making: Integrated and updated marketing information may not
be available easily and quickly in large companies with many departments. However, separate
arrangement can be made for collection, evaluation and storage of such information on sound
principles through efficient MIS. Thus/! MIS is beneficial as it raises the efficiency of
decision-making process in marketing.
(4) Facilitates quick reference: Easy and quick reference to old information is possible due to
MIS. Computers are now used for easy accessibility of MIS. Quick reference to old
information is possible due to modem computer techniques. Thus, the use of computers
facilitates easy reference to old records and this raises the utility of MIS.
(5) Provides information on changing marketing environment: MIS provides regular
information to marketers about changing marketing environment much before it actually takes
place. Managers can forecast the future trends with the scrutiny of updated information. This
enables managers to prepare marketing plans and strategies for the future period.
(6) Promotes marketing excellence: MIS leads to marketing excellence. It is rightly said that to
manage a business well is to manage its future and to manage the future is to manage
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information. Marketing decisions will be prompt and reasonably accurate when they are based
on dependable information. Thus/ MIS gives the benefit in the form of marketing excellence.
(7) Facilitates tapping of marketing opportunities: MIS facilitates tapping of promising
marketing opportunities and effective defense against marketing problems and threats likely to
develop in the near future. Both benefits bring stability and prosperity to business.
(8) Provides market intelligence: MIS acts as marketing intelligence wing of a marketing firm.
It provides information about new marketing trends likely to develop in future. Such trends
may be related to price trends, consumer expectations, extent of market competition, new
products likely to enter the market and so on. This information is useful for long term
marketing planning.
The advantages (noted above) suggest the importance of MIS. No marketing organization can
function effectively without the support of appropriate information system. The information
system should cover every aspect of marketing - the consumer, the market, the competition and
the environment. The marketing excellence of a firm has a direct ^ relationship with the MIS
operated by it. Marketing excellence is the net result of correct marketing decisions and correct
decisions are possible only when updated and reliable information is supplied promptly by the
information system created within the organization. This briefly suggests the importance of MIS
in business/marketing management.
COMPONENTS OF MARKETING INFORMATION SYSTEM:

The components of MIS are as noted and explained below:
(1) Internal marketing information.
(2) Marketing intelligence.
(3) Marketing research.
(4) Market information analysis.
(1) Internal Marketing Information: This component of MIS provides information from within
the organization itself i.e., through the accounting system on sales, inventories, cost, cash flows,
accounts receivable etc. and old records. Data on sales, turnover, costs, cash flows, accounts
receivable and payable, etc. provide information required for marketing decision making. All such
records are available within the firm and hence these sources are rightly called internal sources of
marketing information. Reference to any old information is possible quickly if the available
information is already stored systematically through computer techniques.
Marketing managers use this internal source fully as the information is available easily and
quickly. Even current marketing information is easily available. For easy availability of internal
information, filing and record keeping system must be efficient.
(2) Marketing Intelligence: The second component of MIS is the marketing intelligence. This
component provides information on external marketing environment. Here, information is
collected from external sources. This component of MIS provides information regarding current
marketing environment and changing conditions in the market. Such information is easily
available through census data, weekly and monthly reports on markets and market news published
in magazines and trade journals, commercial press, reports of trade associations and chambers of
commerce, annual reports of companies and so on. Even reports of salesmen are useful to study
current market trend.
Professional market research agencies publish information on various aspects of marketing and
market trends. Information available from these sources may not be useful in the present form. It
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is necessary to evaluate and arrange the information in a proper order. This enables the marketing
executives to draw conclusions and frame marketing policies accordingly. Market intelligence
acts as a mirror of marketing environment and facilitates appropriate decision-making on
marketing.
(3) Marketing Research: Marketing research is one more component of MIS. In this component,
specific marketing problem of the firm is selected for investigation. Data regarding the problem
are collected, tabulated, analyzed and conclusions are drawn. In addition, suitable policy measures
are recommended in order to solve the problem. Marketing research as a component of MIS
provides information but such information is specific and useful for one specific purpose. MR and
MIS are closely related functions. Both provide updated information for decision-making by
marketing executives. However, MIS and MR are not substitutes of each other.
(4) Market Information Analysis: Information gathered by the company's marketing

intelligence and marketing research systems often requires more detailed analysis. Sometimes,
managers may require more help to use the information to their marketing problems. This help
may include advanced statistical analysis. With support from market information analysis
managers can make better marketing mix decisions, design sales territories and sales-call plans,
select site for retail outlets and forecast new product sales.
ROLE OF MIS IN MODERN BUSINESS:

(1) Essential supplement of business management: The role of MIS in the overall business
management is universally accepted. It is an essential supplement of business management. It
performs various functions and offers useful services and this proves its constructive role in
the modern business management.
(2) Helps in decision-making: Reliable information about all aspects of business is available
through MIS. This suggests that MIS plays an important role in planning and decision-
making.
(3) Provides feedback: MIS provides feedback and this suggests its supportive role in business
management. Managers at all levels need information. They analyze information, draw
conclusions and take reasonably correct decisions. This suggests crucial role of MIS in the
management of business.
(4) Provides accurate and timely information: It is rightly observed that modern business
cannot function efficiently, if the information system at its disposal fails to provide accurate
and timely information. This suggests the importance of information network, which serves as
a key resource in business management.
(5) Provides information on business environment: Business activities are to be adjusted as
per the changes in the business environment. MIS provides information about changes in the
environmental factors and enables managers to take appropriate decision to adjust business
activities as per the need. This is how MIS plays a supportive role in decision-making and
follow-up measures in business management.
Marian Harper Jr. has rightly suggested the importance of MIS. According to him "To manage a
business well is to manage its future, and to manage future is to manage information".
Thus, information management (collection, processing, tabulation, storage and easy reference) is
an integral aspect of total business management. Policies, plans and decisions for .the future
period can be designed accurately with the help of MIS. This suggests the role of information
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system in modern business. Correct understanding of total marketing environment is necessary for
success, progress and prosperity of business. This is possible through MIS. Business can be made
competitive as well as consumer-oriented by using the available market information in an
intelligent manner. In brief, information serves as the life & blood of modern business. MIS plays
a positive role in modern dynamic, competitive and global business.
ESSENTIAL REQUIREMENTS OF A GOOD MARKETING INFORMATION SYSTEM

(1) MIS should be Unified and Centralized: Trn1 MIS introduced should be managed as a
single entity even when the information collected and stored may be varied one. There may be
different information components in every MIS but the components should be integrated for
reference purpose. It should operate as one unit. The MIS of the firm should be at the central
office. The chief of MIS must operate as the consultant, coordinator and controller of all
information components of the MIS. The operating departments of the firm should be free to
use the information but the information management should be centralized.
(2) MIS should be a Decision Support System: MIS is expected to play an important role in
making marketing management more efficient accurate and result-oriented. It should offer
guidance to marketing managers in the decision-making process. The MIS should act as
decision support system. For this, information should be supplied quickly and the information
supplied should be up-to-date. The MIS should help the marketing manager in the selection of
right policy for the benefit of the whole organization. The MIS should not act merely as a data
bank. It should accept more positive role and participate in the decision-making process in a
meaningful manner.
(3) MIS should be Quick and Accurate: The MIS should be user-oriented and also quick. The
information flow should be done accurately and also with speed. This is necessary as there is
information flood in the field of business world. In addition, information should be made
available quickly to managers. Information must move with speed as information supplied late
to the department is not useful in the decision making process. Even marketing opportunities
are lost. This clearly suggests that MIS should be accurate and should move/operate with
speed within the organization.
(4) MIS should be Economical: MIS should be economical as far as possible. This means the
expenditure on running the system should be minimum as the system is not directly
productive. It is a service and supporting function. For such economy in the MIS/ the principle
of selectivity should be introduced in the collection/ processing, storing and supplying
information system. The cost of MIS should not exceed its value. The expenditure of MIS
should be minimum as far as possible. However, cost reduction should not be at the cost of
quality and reliability of information.
(5) MIS should be Selective: MIS should collect information that is absolutely essential and
useful in decision-making process. MIS should not be viewed as a mere courier service
department. It should sort out the information that is really useful to the firm. This is essential
when there is information flood due to the use of electronic media of communication. Thus
information needs of the organization should be assessed and the MIS should operate
accordingly. This avoids wastage of time and money.
(6) MIS should be compatible with the Culture of the Firm: MIS should be adjusted with the
culture and level of sophistication attained by the business organization. The MIS required by
a large firm would be different as compared to one required in a small firm even when both
have to maintain their own MIS. The MIS should be intelligible to the people who have to use
the system frequently. After all. MIS is a means and not the end in self. In brief, the
management should set up a MIS that will cater to the needs of an organization and also offer
operational convenience.
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(7) MIS should provide updated Information: It is necessary to use new techniques for speed
and accuracy in the MIS. Computers, microfilms, etc. should be used for raising the efficiency
of MIS. Communication technology is making rapid progress in recent years. It is desirable to
improve the MIS by using the latest available techniques. Such updating of MIS is useful for
future marketing planning and also for quick, correct and relevant marketing decisions. Thus,
in-built updating arrangement should be incorporated in a good MIS.
(8) MIS should be Flexible: The MIS introduced in an organization should be elastic or
adjustable. It should not be rigid. When the system is flexible, new changes can be
incorporated easily, quickly and smoothly. Moreover, modern techniques can be introduced
for raising the efficiency and accuracy of the system. In brief, flexibility is one essential
requisite of a good MIS.
(9) MIS should use New Techniques: Along with information explosion, information
technology is also making rapid progress. New machines, methods and techniques are being
introduced in the collection, processing and storage of information. New techniques bring
speed, updating and accuracy in the MIS. Managers can use the MIS to the fullest extent only
when the latest techniques such as computer technology and internet service are used in MIS
itself.
(10) MIS should be Future-oriented: The MIS should be forward looking. It should be future
oriented. It should consider the future information needs of the firm and adjust/readjust its
management accordingly. The decisions are to be taken for the future period. For this, the MIS
should be future oriented and not the past oriented.
A SIMPLE MODEL OF MIS

Person needing
Information
Statistical
Models
MIS Facilitator
Analytic
Database
System
Marketing
Mix Models
Computerized Internal Data External Data Adhoc

Search  Invoice data  Government data Research
Capabilities  Sales data  Commercial data
 Inventory data  Industry data
 Payroll data  Miscellaneous data
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The model is inclusive of a facilitator, a database along with analytic software and the capability
to incorporate both continuous (internal and external) as well as one time or ad-hoc data apart
from providing computerized information searches.
"MIS facilitator" is the person(s) or the equipment through which the desired information can be
obtained. This could be a microcomputer or personal computer or a librarian located in the
decision maker‘s office.
The "database" refers to the actual database accessible through the MIS. This will be inclusive of
the usual or routine internal data of the firm as well as the external data regularly flowing into the
firm. The database is also able to provide computerized searches through both government
agencies as well as commercial firms.
The "analytic system" refers to the general software packages that can be used to adjust or
supplement to the basic data. These may comprise of statistical tools like the regression and
analysis of variance models and also marketing mix models. The latter could involve procedures
for separating sales data into different criteria based on the requirement of different decision
makers such as sales - customerwise / territorywise / productwise etc. The MIS should be able to
acknowledge the existence as well as locate where or in which departments / units of the firm
have made use of ad-hoc studies.
A very important element in a MIS is that the system must allow for the timely disbursement of
the desired information to the decision makers.
The "database" refers to the actual database accessible through the MIS. This will be inclusive of
the usual or routine internal data of the firm as well as the external data regularly flowing into the
firm. The database is also able to provide computerized searches through both government
agencies as well as commercial firms.
The "analytic system" refers to the general software packages that can be used to adjust or
supplement to the basic data. These may comprise of statistical tools like the regression and
analysis of variance models and also marketing mix models. The latter could involve procedures
for separating sales data into different criteria based on the requirement of different decision
makers such as sales - customerwise / territorywise / productwise etc. The MIS should be able to
acknowledge the existence as well as locate where or in which departments / units of the firm
have made use of ad-hoc studies.
A very important element in a MIS is that the system must allow for the timely disbursement of
the desired information to the decision makers.
RELATIONSHIP BETWEEN MIS AND MR:

Marketing information system is closely connected with marketing research. In fact, it is one of
the sub-systems included within the scope of MIS. Thus, marketing research is one component of
MIS. MR conducts studies on specific marketing problems and reports its findings to marketing
management. Such studies are undertaken by qualified persons within the company or by an
outside agency. Marketing ' research offers information and guidance to marketing managers
while dealing with specific marketing problems and difficulties.
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Marketing research needs detailed information from different internal sources, which can be used
easily and conveniently through the MIS. Problems relating to consumer behavior, product or
brand preferences, advertising awareness, sales promotion, etc. can be studied with the help of
information available through MIS. In brief, MIS provides data required for different marketing
research projects.
The basic objectives of MIS and MR are identical. Both offer information to marketing executives
and enable them to take quick and correct marketing decisions. Both are interrelated. Large-scale
manufacturing/marketing companies maintain up-to-date MIS and also maintain independent
marketing research department. In addition, both supply ready reference regarding marketing
activities and facilitate correct decision-making in the marketing field.
MR and MIS are closely related functions. The basic purpose of both is to collect relevant
information in order to facilitate marketing ^decisions quickly and correctly. Both these functions
offer guidance to marketing managers in the conduct of their marketing activities. However, MR
generates information but MIS concentrates on the storage and flow of information to marketing
managers for decision-making. Both the functions are interrelated as both the functions aim at
making marketing decisions more effective. In this sense, it is said that MIS is a computer-based
extension of MR.
MR is one vital component of MIS. It provides properly processed information on a specific
marketing problem and guides the marketing manager in finalizing plan to deal with such
problem. The information supplied by the MIS is of a general nature and needs to be analyzed
properly for drawing conclusions and for using the information for taking decisions regarding
marketing activities. This purpose is achieved through MR. Similarly, both functions are treated
as important functions for promoting sales, for promoting consumer satisfaction and finally for
effective planning and decision-making in the field of marketing. Thus MIS and MR are closely
interrelated and complementary concepts. MR is some sort of marketing information system
without any responsibility of decision-making.
MR and MIS are supporting functions as both deal with the management of information. In
addition, they offer guidance to marketing managers in the conduct of their marketing activities.
Along with this, there are some basic points, which indicate the difference between MR and MIS.
For example, the job of MIS is to supply marketing information whereas MR is concerned with
problem analysis. MR uses marketing information but its purpose is problem solving through
appropriate marketing decisions. These points of difference between MR and MIS are as noted
below:
Dimension Marketing Research (MR) Marketing Information

System (MIS)
Meaning MR is "the systematic MIS is "a set of procedures and
gathering, recording and methods used for the regular and
analyzing of data relating to the planned analysis and
marketing of goods and presentation of information for
services". marketing decision making"
Nature of concept MR is a narrow concept as MR MIS is a broad concept. Its
is one of the components of MIS purpose is to collect information
on all aspects of business
Information MR provides precise and MIS provides information on
provided properly analyzed information various aspects of marketing in
regarding a specific marketing order to frame marketing
problem with a view to solving policies and marketing
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that problem decisions.
Purpose The purpose of M.R. is to study The purpose of MIS is to
a specific marketing problem in provide relevant and reliable
depth and to solve it quickly and information to all departments
also in a satisfactory manner and facilitate quick and
reasonably correct decision-
making
Coverage MR collects information relating MIS collects information on
to specific marketing problem various aspects of marketing
under investigation such as products, consumer
needs, market competition and
sales
Operational MR is conducted on problem by MIS is a continuous system and
method problem or project by project information is collected,
basis with each project having a analyzed used and also stored in
starting and ending point a regular and continuous
manner.
Use of computer It is a non-computer based MIS is a computer based process
system. However, computers as computer technology is
may be used while tabulating extensively used while
data or while analyzing the collecting, analyzing and
information collected. storing the information
collected
Type of MR is more past-oriented MIS is more future-oriented
orientation
Organizational Every company may or may not Companies must always make
structure maintain MR department arrangements for the collection
and storage of information
through MIS
Frequency of In M.R. data collection is not In MIS data are collected
data collection continuous but only as per the regularly on different marketing
research projects undertaken. aspects in which the firm
interested.
Sources of data In MR external sources such as In MIS external as well as
used surveys and census reports are internal sources (past records,
used for data collection documents, etc.) are used for
data collection.
MARKETING DECISION SUPPORT SYSTEM

The introduction of computers has facilitated the setting up of MDSS (Marketing Decision
Support System). Such system comprises of collection, storage, analysis and reporting of
marketing data. The difference between MIS and MDSS is that whereas the former is centralized,
the latter is decentralized and allows marketing managers to interact directly with the database.
The systems are generally computerized with one or more models built in.
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CHARACTERISTICS OF A GOOD MDSS
A good MDSS should have the following characteristics
1.Interactive. The process of interaction with the MDSS should be simple and direct. With just a
few commands the user should be able to obtain the results immediately. There should be no
need for a programmer in between.
2. Flexible. A good MDSS should be flexible. It should be able to present the available data in
either discrete or aggregate form. It should satisfy the information needs of the managers in
different hierarchical levels and functions.
3. Discovery oriented, The MDSS should not only assist managers in solving the existing
problems but should also help them to probe for trends and ask new questions. The managers
should be able to discover new patterns and be able to act on them using the MDSS.
4. User friendly. The MDSS should be user friendly. It should be easy for the managers to learn
and use the system. It should not take hours just to figure out what is going on. Most MDSS
packages ere menu driven and are easy to operate.
MDSS has the following components:

(a) Database (data sources, data management)
(b) Display
(c) Statistical analysis
(d) Modeling.
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ATTITUDE MEASUREMENT
MEANING OF ATTITUDE
Attitude means "settled behaviour indicating opinion." Attitude is a subjective and personal
matter. Opinion of a person is the verbal expression of attitude. Attitude is also readiness to
response. Many researchers admit that attitude involves some acceptance or rejection of an issue
or subject matter under study. When an individual responds to a social or business issue, it
indicates an attempt to provide evaluation, which may be in favour or against.
DEFINITION OF ATTITUDE
Attitude has been defined by Gene F. Summers as a predisposition to respond to an idea or object.
In marketing, this refers to the consumers‘ predisposition about the product or . If it is favorable,
then the consumer is likely to purchase the product or service
Attitudes about products or services are composed of three elements
 Beliefs such as the products strength or the economy of the product or service
 Emotional feelings such as likes or dislikes
 Readiness to respond to the product or service i.e. to buy it
These three elements combine together to form an image of the product or service in the mind of
the consumer. When the car manufacturer, the movie producer or the insurance company refers to
the company's image, they are referring to some genera! averages of many individuals‘ attitudes
towards the company
MEANING OF MEASUREMENT
Measurement is "the assignment of numbers to characteristics of objects, persons, states or
events, according to rules." What is measured is not the object, person, state or event but some
characteristic of it. People are not measured, only their age, height, weight, etc. are measured. The
term number given in the definition of measurement are used as symbols to represent certain
characteristics of the object and it does not mean addition, subtraction, division or multiplication.
One important aspect of measurement is the creation of the rules. These rules specify how the
numbers are to be assigned to the characteristics to be measured e.g., "Bata increased its market
share by three percentage points during the last year" is understood by those who know the
measurement rule that is being applied. Those who are not familiar with the rule will not
understand what has been measured. The market share can be based on units sold or sales
turnover in rupees or any other rules.
Measurement in physical sciences like physics, chemistry and biology is easy because they have
physical reality to measure. Behavioural scientists like marketing researchers cannot see or feel
attitudes, perceptions, brand loyalty etc. Hence they must attach numbers in the measurement
process. A chemist can exactly know the chemical content in an antibiotic capsule whereas the
market researcher can only obtain a good measure of intention to purchase.
PROCESS OF MEASUREMENT
(1) Determine the constructs of interest: Constructs refer to constructions. Constructs do not
have tangible reality e.g. we cannot see consumer satisfaction but we can indirectly observe it
asking a series of questions. Other constructs are: brand loyalty, heavy users, competition etc.
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(2) Establish the constructs areas: A construct must identify its conceptual boundaries e.g.,
marketing orientation identifies and satisfies customer needs. It concentrates on the means by
which an organisation can achieve its goals while satisfying those needs.
(3) Setting operational definitions: An operational definition indicates what observable
attributes of the construct will be measured and the process that will be used to attach
numbers to those attributes. An example of operational definitions in a bank can be
constructed as: customer satisfaction, operational efficiency, marketing information systems,
marketing efforts etc.
(4) Collect data to test measures: At this stage data is collected from the target population.
Collecting relevant and dependable data will ensure that the researcher is on the right track
with operational measures.
(5) Retain relevant data: Having collected the data the researcher has to decide which data to
keep and which one to reject. It is a relative exercise. Data thus retained will be of use only
now. If any delay is caused, data can become obsolete.
(6) Establish validity of data: An important exercise for the researcher would be to determine
validity of data. Marketing research is a financial proposition. In order to succeed in correctly
measuring attitude it is important that the data are valid and reliable.
(7) Prepare research report: When the researcher has successfully developed measures that are
reliable and valid, he is now ready to prepare research report which will help to achieve the
objectives of research study. The researcher has to check cause and effect relationship, test
hypothesis, answer research questions and describe the extent to which a population behaves
in a specific manner. In this way the research report will highlight the results of the research.
ATTITUDE MEASUREMENT
Attitude measurement is also commonly referred to as scaling. The measurement techniques can
be divided into
1. Non-Disguised, Non-Structured Techniques
2. Non-Disguised, Structured Techniques
3. Disguised, Non-Structured Techniques
4. Disguised, Structured Techniques
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The following diagram will illustrate the different methods and techniques of measuring attitude
Attitude Measurement
Non-Disguised, Non-Disguised, Disguised, Disguised,

Non-Structured Structured Structured Non-Structured
Techniques Techniques Techniques Techniques
Focused Nominal
Word
Group Scale
Association
Discussion
Ordinal Story
Scale Completion
Interval Sentence
Depth Scale Completion
Interview
Ratio Scale Thematic
Appreciation
Constant Tests
Sum
Scale Cartoon /
Bubble
Mini- Method
groups
Thurstone
Scale Third Person
Techniques
Likert Scale
Fantasy
Scenario
Semantic
Differential
Scale Personification
Multi-
dimensional
Scale Role-playing
NON-DISGUISED, NON-STRUCTURED TECHNIQUES

The essence of these methods is that the purpose of the interview is not a secret and that there is
no fixed structure for conducting the interview.
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Qualitative Research
The most common method of obtaining information about the behavior, attitudes and other
characteristics of people is to ask them. However it is not always possible or desirable to use
direct questioning to obtain information. People may be either unwilling or unable to give answers
to questions they consider to be an invasion of their privacy, that adversely affect their self-
perception or prestige, that are embarrassing that concern motivations that they do not fully
understand or cannot verbalize, or for other reasons. Therefore additional approaches to obtaining
such information may be necessary,
Marketing researchers frequently use depth interviews, Focused Group Interviews, Mini-group
Interviews and Projective techniques when direct questioning is impractical, more costly, or less
accurate. These techniques generally referred to as Qualitative research.
A. Depth interviews
Individual depth interviews typically require 30-45 minutes. The interviewer does not have a
specific set of pre-specified questions that must be asked according to the order imposed by a
questionnaire. Instead, there is freedom to create questions, to probe those responses that appear
relevant and generally to try to develop the best set of data in any way practical. However the
interviewer must follow one rule; one must not consciously try to affect the content of the answers
given by the respondents. The respondent. The respondent must feel free to reply to the various
questions, probes, and other, subtler, ways of encouraging responses in the manner deemed most
appropriate.
 Subject of interest is discussed in detail.
 There is no fixed pattern for eliciting information from the respondents.
 Generally conducted by highly trained interviewers. They must be thorough in probing the
respondents.
 The interviewee is asked about the subject of his choice, coffee, for example. and an attempt is
made to explore the respondents' attitudes in depth by probing extensively into any other areas
which may come up.
 Interviewers have a general series of topics that they will introduce - perhaps such topics as
coffee or sleep, and will introduce them from time to time if the respondent does not bring
them up.
 Tone of the interview is permissive and the respondent's allowed to talk as much as he likes.
 The interviewer must not influence the answers of the respondent.
 The interpretation of the answers is very subjective and knowledge of human behavior is
required to analyze the information received.
Individual depth interviews uses three questioning techniques namely:
1. Laddering involves having respondents identify attributes that distinguish brands by asking
questions. Each distinguishing attribute is then probed to determine why it is important or
meaningful. These reasons are then probed to determine why it is important, and so forth. The
purpose is to uncover the ―network of meanings‖ associated with the product, brand, or
concept.
2. Hidden-issue questioning focuses on individual respondents feelings about sensitive issues.
Analysis on focus on common underlying themes across respondents. These themes can then
be used to guide advertising development
3. Symbolic questioning requires respondents to describe the opposites of the product / activity
of interest or a specific attribute of the product / activity.
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Individual depth interviews have been found to generate more and higher quality ideas on a per
respondent basis than either focus or mini-groups. They are particularly appropriate when:
1. Detailed probes of an individual's behavior, attitude or needs is required;
2. The subject matter under discussion is likely to be of a highly confidential nature (e. g. personal
investment)
3. The subject matter is of an emotionally charged or embarrassing nature
4. Certain strong, socially acceptable norms exist (e.g. baby feeding) and the need to conform in a
group discussion may influence responses
5. Where highly detailed understanding of complicated behavior or decision-making pattern (e.g.
planning the family holiday) are required or the interviews are with professional people or with
people on the subject of their jobs (e.g. finance directors)
B. Focus group discussions (F.G.D’s)

The standard focus group interview in the United States involves 8 and 12 individuals and lasts
about 2 hours. Normally each group is designed to reflect the characteristics of a particular market
segment. The respondents are selected according to the relevant sampling plan and meet at a
central location that generally has facility for taping and/or filming the interviews. In Europe,
focus groups tend to consist of 6 to 8 respondents, vary in length from 1.5 to 4 hours and are often
conducted in the home of the recruiter. Otherwise the interviews are similar.
The discussion itself is ―led‖ by a moderator. The moderator attempts to progress through three
stages during the interview
{1) Establish rapport with the group, structure the rules of group interaction, and set objectives
(2) Provoke intense discussion in the relevant areas
(3) Summarize the groups responses to determine the extent of agreement. In general either the
moderator or a second person prepares a summary of each session after analyzing the
session's transcript
Focus Group Interviews can be applied to:
1. Basic- need studies for product idea creation,
2. New product idea or concept exploration,
3. Product positioning studies.
4. Advertising and communications research.
5. Background studies on consumer's frames or reference,
6. Establishment of consumer vocabulary as a preliminary step in questionnaire development
7. Determination of attitudes and behavior
Advantages
1. Each individual is able to expand and refine their opinions in the interaction with the other
members. This process provides more detailed and accurate information than could be derived
from each separately.
2. A group interview situation is generally more exciting and offers more stimulation to the
participants than the standard depth interviews
3. The security of being in a crowd encourages some members to speak out when they otherwise
would not.
4. As the questions raised by the moderator are addressed to the entire group rather than an
individual the answer contains a degree of spontaneity that is not produced by other techniques.
5. Focus groups can be used successfully with children over five. They are also very useful with
adults in developing countries where literacy rates are low and survey research is difficult.
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6. A final major advantage of focus groups is that executives often observe the interview (from
behind mirrors) or watch films of the interview.
Disadvantages
1. Since focus group interviews last 1.5 to 3 hours and take place at a central location, securing
cooperation from a random sample is difficult.
2. Those who attend group interviews and actively participate in them are likely to be different in
many respects from those who do not.
3. There are chances that participants may go along with the popular opinion (group think) instead
of expressing their own which may be contrary to the popular opinions
4. The presence of a one-way mirror and / or an observer has been found to distort participant's
responses.
5. The moderator can introduce serious biases in the interview by shifting topics too rapidly
verbally or nonverbally encouraging certain answers, failing to cover specific areas and so
forth
6. Focus groups are expensive on a per respondent basis.
C. Mini-groups
Mini-groups consist of a moderator and 4 - 5 respondents rather than the 8 to 12 used in most
focus groups. They are used when the issue being investigated requires more extensive probing
than is possible in a larger group. Mini-groups do not allow the collection of a confidential or
highly sensitive data as might be possible in an individual depth interview. However, they do
allow the researcher to obtain substantially depth of response on the topics that are covered.
Further the intimacy of the small group often allows discussion of quite sensitive issues.
The advantages and disadvantages of mini-groups are similar to those of standard focus groups,
but on a smaller scale
 In principle these interviews are the same as the previous ones, excepting that they are
conducted in groups rather than for individuals
 This method is therefore less expensive and less time consuming than the depth interviews
 This method is advantageous because it gives excellent leads to consumer attitudes that no
other method can give
 Another advantage of this method is that each respondent receives stimulation for responding
from his / her group members and so the interviewer need not prompt the interviewee to
answer
 The disadvantage here is that one or two members could dominate in the group and others
might not get a chance to answer This would again make it an individual effort
DISGUISED, NON-STRUCTURED TECHNIQUES

The essence of these methods is that the interviewee either does not know that his attitude is being
studied or does not know for which company the survey is being done or sometimes he does not
know both. It involves using various vague stimuli to which the respondent is asked to respond In
doing so, it is believed that the respondent reveals several elements of his / her attitude that he
would not have revealed in the face of direct questions.
These tests are not difficult to administer because they are like games played with the respondents
Generally, respondents seem to enjoy the exercise
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Projective Techniques
Projective technique is based on the theory that the description of vague objects requires
interpretation and this can only be based on the individuals own background, attitudes, and values
The more vague or ambiguous the object to be described the more one must reveal of oneself in
order to complete the description
The following general categories of projective techniques are described - association, completion,
construction and expression
I. Word Association Techniques
Association techniques require the subject to respond to the presentation of a stimulus with the
first things that come to mind. The word association technique requires the respondent to give the
first word or thought that comes to mind after researcher presents a word or phrase. In free
association only the first word or thought is required. In successive word association, the
respondent is asked to give a series of words or thoughts that occur after hearing a given word
The respondent is generally read a number of relatively neutral terms to establish the technique
Then the words of interest to the researcher are presented, each separated by several neutral terms
The order of presentation of the key words is randomized to prevent any position or order bias
from affecting the results The most common approach to analyzing the resulting data is to analyze
the frequency with a particular word or category of words given in the response to the word of
interest to the researcher.
Word association techniques are used in testing potential brand names and occasionally for
measuring attitudes about particular products, product attributes, brands, packages or
advertisements.
o One of the oldest and simplest projection techniques

o Respondents are presented with a number or different words. one at a time. After each word.
they are asked to give the first word that comes to mind.
o The assumption here is that through free words, the respondents will indicate their inner
feelings about the subject
o Responses are timed (the time limit is usually 5 seconds) so that those responses that
respondents "reason out are identified and taken into account in the analysis.
o The usual way of constructing such a tests is to choose many stimulating and neutral words.
The words are read out to the respondent one at a time, and the interviewer essentially records
the "first word" association by the respondent.
o Respondents should not be asked to write their responses because then the interviewer will not
know if the responses were spontaneous or whether the respondent took time to think out the
responses.
o An example of such a test is: the word ―oatmeal‖. The first response is "athletes". This means
that the respondent feels that the product is more suited for sportspersons. More words on the
same topic will reveal more about the respondent's attitude about the product
o While analyzing the results of words-association tests, responses are arranged along such lines
as ―favorable–unfavorable‖ and "pleasant-unpleasant".
II. Completion Techniques
This technique requires the respondent to complete an incomplete stimulus. Two types of
completion are of interest to marketing researchers- sentence completion and story completion.
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A. Sentence Completion as the name implies, requires the respondent to complete a sentence In
most sentence completion tests the respondents are asked to complete the sentence with a phrase.
Generally they are told to use the first thought that comes to their mind or "anything that makes
sense". Because the individual is not required directly to associate himself or herself with the
answer conscious or subconscious defenses are more likely to be relaxed and allow a more
revealing answer.
 The respondent is given a number of incomplete sentences and asked to complete them.
 The rule here too, is that respondent must fill in the first thought that comes to mind.
 Responses are timed.
 Here the interviewer gets more information than the word association technique.
 However, it is difficult to disguise the motive of the study from the respondent who is usually
able to diagnose the investigators purpose of study
 For example ― A man who reads Sportstar is ____________‖
 The sentence can be worded in first or third person. No evidence suggests that one of these
approaches could be better than the other.
B. Story Completion is an expanded form of sentence completion. As the name suggests part of a
story is told and the respondent is asked to complete it.
 Respondents are given a half completed story. This is enough to draw their attention to a
particular issue, but the ending is left vague, so that responses can be varied.
 This technique is very versatile and has numerous applications to marketing problems.
 The findings about products/services give companies inputs to determine advertising and
promotional themes and product characteristics
III. Construction Techniques

This technique requires the respondent to produce or construct something, generally a story,
dialogue, or description They are similar to completion techniques except that less or no initial
structure is provided.
A. Cartoon Technique Here cartoons of one or more people, in a particular situation, are
provided to the respondents. One or more of the characters in the cartoon are shown with a
sentence in bubble form above their heads and one of the others is shown with a blank bubble that
the respondent is to fill in. (Instead of having the bubble show replies or comments, it can be
drawn to indicate the unspoken thoughts of one or more of the characters) This device allows the
respondent to avoid any restraints that might be felt against having even a .cartoon character
speak as opposed to think certain thoughts
B. Third Person Techniques This allows the respondent to project attitudes onto some vague
third person This third person is generally an ―average women;" ―a neighbor,‖ ―the guys where
you work", ―most doctors‖ or the like Thus instead of asking the respondent why he or she did
something or what he or she thinks about something the researcher asks what friends, neighbors
or the average person thinks about the issue
C. Thematic Appreciation Test Another useful construction technique, involves using pictures
to elicit stories. These pictures are usually relatively vague so that the respondent must use his or
her imagination to describe what is occurring in the situation.
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 Here the respondent is shown about 20-30 ambiguous pictures and he is asked to spin stones
about them.
 The interviewer may ask questions to help the respondent to think For example "what is
happening here?‖ makes the answer focused towards an action Or which one is the aggressor
makes the respondent think about the picture as one of aggression The reason that respondents
must be asked such prompting questions is that the pictures are very abstract and general and
as such are open to very broad and irreverent interpretations So some amount of focus is
needed to channel respondents thinking.
 Each subject in the picture is a medium through which the respondent projects his/her
feelings, ideas, emotions and attitudes The respondent attributes these feelings to the
characters because he sees in the picture something related to himself.
 Responses differ widely and analysis depends upon the ambiguity of the picture, the extent to
which the respondent is able to guess the conclusions and the vagueness of the support
questions asked by the interviewer
D. Fantasy Scenario It requires the respondent to make up a fantasy about the products or brands
E. Personification The respondent is asked to create a personality for the brands or the products
IV. Expressive Techniques

Role-playing is the only expressive technique utilized to any extent by marketing researchers. In
role-playing the consumer is asked to assume the role or behavior of an object or another person,
such as a sales representative for a particular department store. The role-playing customer can
then be asked to try to sell a given product to a number of different consumers who raise varied
objections The means by which the role player attempts to overcome the objections can reveal a
great deal about his or her attitudes. Another version of the technique involves studying the role-
players attitude on the typee of people who should shop in the store in question.
Limitations
 As projective techniques generally require personal interviews with highly trained
interviewers and interpreters to evaluate the responses, they tend to be very expensive.
 Small sample sizes can increase the probability of substantial sampling error. The reliance on
small samples often has been accompanied by non-profitability selection procedures.
 Some of the projective techniques require the respondents to engage in behavior that may well
be strange to them; this is particularly true for techniques such as role-plays. Thus there is
reason enough to believe that there might be an error in the findings.
 Measurement is also a serious issue with respect to projective techniques. The possibility of
interpreter bias is obvious.
Benfits
 They can uncover information not available through direct questioning or observation.
 They are particularly useful in the exploratory stages of research
 They can generate hypotheses for further testing and provide attribute lists and terms for more
structured techniques such as the semantic differential.
 The results of projective techniques can be used directly for decision- making
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DISGUISED, STRUCTURED TECHNIQUES
The basic premise underlying such tests is that the respondents will reveal their attitudes by the
extent to which their answers to the objective questions vary from the correct answers.
Respondents are given questions that they are unable to correctly. Thus, they are forced to guess
the answers. The direction and extent of these guessing errors is assumed to reveal their attitudes
on the subject. Individuals tend to gather information that supports their supports their attitudes
and therefore the kind and extent of information individuals possess on a given subject indicate
something of their attitude. e.g. Do cornflakes cost more or less per bowl than cereals? Or How
much do you think it costs for hot cereal alone in an bowl of cereal served for breakfast?
NON-DISGUISED, STRUCTUREDTECHNIQUES (SCALING TECHNIQUES / SCALES

OF MEASUREMENT)
The non-structured techniques for attitude studies are primarily of value in exploratory studies
where the researcher is looking for the salient attributes of given products and the important
factors surrounding purchase decisions as seen by the consumer. Structured techniques can
provide a more objective measurement system, one that is more compatible to a scale or yardstick.
The term scaling has been applied to the efforts to measure attitudes objectively.
Measurement consists of assigning numbers to characteristics of objects or events so as to reflect

some aspect of reality. The objective should be to assign numbers so that the properties of the
numbers are the same as the properties of the objects or events that we are measuring. This
implies we have different kinds of numbers e.g., in a class a student may be identified by his roll
number, which is different from his score on the final examination and this is different from his
final rank in the class. Common scales of measurement are:
(1) Nominal Scale

Under nominal scale there is no numerical sanctity. Numbers are used only as labels e.g., if we
want to categorize male and female respondents, nominal scale can be used as 1 for male and 2
for female. Alternatively, females can be labeled as 1 and males as 2 and it would be a valid
nominal scale. Other variables that are covered by nominal scale are: religion, languages (written
and spoken), education, user/non-user category, reading habits, brand preference etc. It is
important to mention that variables needing statistical computations like mean and standard
deviation cannot be done through nominal scale.
(2) Ordinal Scale

 They are the simplest and most widely used attitude measuring scales in marketing research
 They serve to rank respondents/ responses according to some characteristic viz. age of
students or favorability to a brand
 They do not measure the degree of favorability of different rankings. All the scale tells is that
the individual has more , less or same amount of characteristic being measured.
 A set of data is said to be ordinal if the values / observations belonging to it can be ranked (put
in order) to have a rating attached.
 You can count and order but not measure ordinal data.
 The categories for an ordinal set of data have a natural order. Suppose a group of people were
asked to taste varieties of biscuits and classify them on a rating scale of 1 to 5 where 1 would
correspond to strongly dislike and 5 would be strongly like. A rating 3 indicates more
enjoyment than 2. Such data is ordinal.
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 However the distinction between neighboring points on the scale is not necessarily the same.
For instance, the difference in enjoyment expressed by giving a rating of 2 rather than 1 may
be much less than the difference in enjoyment expressed by giving a rating of 4 rather than 3.
 Ordinal scale is ranking scale. It possesses the characteristics of numerical scale and also
indicates the order e.g., there are five executives who are to be ranked as per their annual
income such as.
If the executive with the highest income is given No. 1 and the next to it as No. 2 and so on, the
following order will be determined
The above example is numerical that dealt with the annual income of executives. Ordinal scale
can also be used to find out attributes of a certain product e.g., coffee. Respondents can be asked
questions on attributes like color, flavor, aroma, appearance etc. on a five-point scale:
By asking respondents about their level of acceptability, it is possible to give ranks. Individual
rankings can be combined in order to get collective ranking of the group.
(3) Interval Scale

Interval scale is also known as ratio-scaled data. This method can be used to compute the
commonly used statistical measures such as arithmetic mean, standard deviation and Pearson
correlation coefficient. The attitude of respondents is measured on a scale of 1 to 5 or 1 to 7 or 1
to 10. For example, when a consumer is asked about brand preference on a scale of 1 to 7, it is
called interval scale. It is possible to compute average rating given by all the respondents and also
standard deviation.
 They separate individuals or items by rank order but measure the distance between rank
positions in equal units.
 Such a scale permits the researcher to say that the position 4 is above position 3 on the scale,
and also the distance from position 5 to 4 is same as from 4 to 3.
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 Such a scale however does not permit conclusions that position 6 is twice as strong as position 3
because no zero position has been established
An interval scale is a scale of measurement where the distance between any two adjacent units of
measurement (or intervals) is the same but the zero point is arbitrary. Scores on an interval scale
can be added or subtracted but cannot be meaningfully multiplied or divided e.g. the time interval
between the starts of years 2001 and 2002 is the same as that between 2003 and 2004, namely 365
days The zero point year 1 AD, is arbitrary as time did not begin then. Other examples of Interval
series include the heights of tides, and the measurement of longitude.
(4) Ratio Scale

Ratio scale enjoys the advantages of all the three methods discussed earlier. In addition it
possesses the concept of absolute zero or origin. This makes ratio scale superior to all other
methods. Ratio scale commonly uses physical dimensions like weight height, distance, money
value and population counts. Equal ratio on the ratio scale indicates the equal ratio among the
elements being measured e.g. 9 kg and 45 kg are in the ratio of 1 : 5. If we convert kilogram into
grams, the same ratio will be obtained. Therefore, 9,000 grams and 45,000 grams have the same
ratio of 1 : 5. It thus suggests that one can change over from one unit of measurement to another
by using the relevant conversion factor. Only ratio scale provides the advantage of converting
from one unit of measurement to another.
(5) TheConstant Sum Scale

The constant sum scale requires the respondent to divide a constant sum, generally 10 or 100,
among two or more objects or attributes in order to reflect the respondent‘s relative preference for
each object, the importance of the attribute or the degree to which an object contains each
attribute.
The constant sum scale can be used in two cases
1. For two objects at a time (paired comparison) or
2. More than two objects at a time (quadric comparison)
When rank order / ordinal data is used the researcher has no way of knowing the characteristic
which is of overwhelming importance or of knowing a characteristic which is not of much
importance compared to other characteristic. This can be explained with the following example:
Suppose a sample of respondents from the target market is requested to rank order several
automobile characteristics with 1 being more important. Assume the individual ranks are similar
and produce the following median ranks for each attribute:
Price 1
Economy 2
Dependability 3
Safety 4
Comfort 5
Style 6
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A constant sum measure of the importance of the same attributes could be obtained from the
following procedure - Divide 100 points among the characteristics listed so that the division will
reflect how important each characteristic is to your selection of a new automobile.
Price
Economy
Dependability
Safety
Comfort
Style
Total 100
All the responses to the constant sum scale would be consistent with the rank order results just
described.
A disadvantage could be that occassionally individuals may misassign poibts such that the total is
more than or less than 100. This can be adhusted by dividing each point allocation by the actual
taotal and multiplying it by 100.
(6) Thurstone Scale

Thurstone and Chave in their book "The Measurement of Attitude" have advocated a technique in
attitude measurement. They emphasized collection of large number of statements relating to the
subject matter of inquiry. These statements can be collected through personal experience,
secondary data and discussion with knowledgeable people. The statements should indicate both
favourable and unfavourable attitude. The number of statements should be reasonably large to
accommodate diversified attitude. Thurstone and Chive have given five criteria to select the
statements. They are:
(i) The statements should be brief.
(ii) Feasibility to accept or reject the statement in keeping with the attitude of the respondent.
(iii) Acceptance or rejection should be based on reasoning.
(iv) Ambiguous statements should be avoided.
(v) Statements should include attitude variables that are measurable.
The procedure is as follows

1. Collect a large number (as many as possible, perhaps 100) of statements related to the attitude
in question
2. Have a number of judges ( 20) sort the statements independently into 11 piles that vary from
the most favorable through neutral to most unfavorable statements.
3. Study the frequency distribution of the ratings for each statement and eliminate those
statements that the different judges have assigned to a number of different piles.
4. Determine the scale value of each of the remaining statements – that is the number of the pile
in which the median of the distribution lies.
5. Select one or two statements from each of the eleven piles for the final scale.
6. Separate cards are given to the respondents who are asked to sort these statements into a
number of intervals. Each respondent is given 11 cards, the first card having letter A, the
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second B and so on. The first card with letter ‗A‘ represents most unfavourable attitude and the
last card with letter ‗K‘ represents most favourable attitude. The middle card with letter ‗F‘ is
neutral neither representing favourable nor unfavourable attitude about the subject or event as
shown below:
The advantage of this method is that it is easier to identify the neutral position since there are odd
number pf parameters.
The disavantages of this system are

1. Not widely used in marketing research because of the time consumed during preparation itself
2. The ratings may be influenced by the Judges personal attitude
3. Different individuals can obtain exactly the same score from agreeing with quite different
terms
4. It does not obtain the intensity of agreement with the ratings.
(7) Semantic Differential Scale

This scale was developed by “Osgood‖. This scale is commonly used to compare brands,
determine the effectiveness of advertising, attitude change, evaluation of company image etc.
Semantic differential scale is bipolar one indicating attraction or repulsion from an object. While
framing semantic differential scale it is necessary to consider several factors. A scale is balanced
when either side of the indifferent cue has an equal number of cues e.g. determining quality of
service in a club the following cues can be considered:
o The unique dharateristic of semantic differential scale is the use of bipolar scales to rate any
product company or concept of interest.
o Facilitates comaprison of competitive items
152
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o Each scale consists of two opposing adjectives separated by a continuum of seven segments, as
seen above
o Respondents are given a group of these scales and asked to check the segment that represents
the degree of their opinion of the subject in question
o It is best used for image descriptive purposes and is not recommended for overall attitude
studies
o The method is easy and fast to administer, but it is also sensitive to small differences in
attitude, highly versatile, reliable and generally valid
o The advantage of this method is its simplicity while producing results comparable with those of
the more complex scaling methods
(8) Multidimensional Scaling

This is a data reduction technique. Basically it aims at opening up the hidden structure of a set of
data. It helps us to represent the proximities between objects as in a map. Proximities mean any
set of numbers indicating similarity or differences between pair of objects whereas objects mean
things or events. Multidimensional scaling (MDS) attempts to map the objects in a
multidimensional space in such a way that it reveals degree of similarity or dissimilarity among
them.
Consider for instance that a student seeking admission in medicine offered by some universities
has to consider two dimensions viz., prestigious course and practical content, which can be shown
as:
The student has compared the medical course in ten different universities A to J. Vertical
dimension shows practical content of the medical course whereas horizontal dimension indicates
relative prestige of the course. The points that are close to one another show similarity and the
points that are wide apart indicate that the student has seen medical courses offered by various
universities differently on the basis of two dimensions viz./ prestigious course and practical
content.
153

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TYBMS Prof.

MEANING OF MARKETING RESEARCH

MR is a special branch of marketing management. It is comparatively of recent in origin. MR acts

MR techniques are used by manufacturers/exporters/distributors and service organizations to

DEFINITIONS OF MARKETING RESEARCH:

Let us now, consider some definitions of MR:

FEATURES OF MARKETING RESEARCH:

(b) In MR, information is to be collected objectively and accurately: This feature of MR

CHARACTERISTICS OF MARKETING RESEARCH:

AIMS AND OBJECTIVES OF MARKETING RESEARCH:

MARKET RESEARCH V/S MARKETING RESEARCH:

Distinction between market research and marketing research

Dimension Market Research Marketing Research

Scope The scope of market research is The scope of marketing research is

Type of term Market research is a narrow term Marketing research is a wide/broad

Objective Market research is undertaken in Marketing research is undertaken in

GROWING IMPORTANCE OF MARKETING RESEARCH:

Fourthly, rapid changes in the business environment, shift to consumer-oriented philosophy in

FUNCTIONS OF MARKETING RESEARCH:

(3) Explanation: MR gives explanation to certain questions of a manufacturer. It may be related

They also suggest the practical utility of MR activities.

In brief, the basic function of MR is to support marketing decision-making process. Marketing

ADVANTAGES/IMPORTANCE OF MARKETING RESEARCH:

Limitations of marketing research are as explained below:

Marketing research gives guidance to marketing managers through information and

(8) A cost-generating operation: Marketing research is expensive. The existence of sellers‘

It is necessary to have effective communication between researchers and marketing

(11) Lengthy and time-consuming activity: MR is a lengthy and time-consuming activity. It

(17) Fragmentary approach: On many occasions, marketing research tends to be fragmentary in

SCOPE OF MARKETING RESEARCH / BRANCHES OF MR:

6. Promotion and Distribution Research:

10. Media Research:

11. Motivational Research:

12. International Marketing Research:

APPLICATION OF MARKETING RESEARCH

A. TRADITIOMAL APPLICATION OF MARKETIMG RESEARCH

IV. PROMOTION RESEARCH

2. Sales Promotion Research

B. CONTEMPORARY APPLICATIONS OF MARKETING RESEARCH

4. Total quality management

C. EMERGING APPLICATION OF MARKETING RESEARCH

Benefits of database marketing

Reasons for Inaccuracy in Marketing Research

CONSUMER ORIENTATION TO MARKETING RESEARCH:

Consumer orientation to marketing research means making research activities pro-consumer

NEED OF MARKETING RESEARCH

3. Changes in the composition of population and consumption pattern: In India, many

4. Growing importance of consumers in marketing: Consumers occupy key position in modern

6. Need of prompt decision-making: In competitive marketing, marketing executives have to

ROLE OF MARKETING RESEARCH IN MARKETING MANAGEMENT:

(i) Close relationship between MR and Marketing Management: Marketing management

(ii) Need of effective integration between MR and Marketing Management: Marketing

INTERACTION BETWEEN MANAGEMENT AND MARKETING RESEARCH

Some of the organization‘s complaints about marketing researchers are:

Marketing researchers have the following complaints:

General benefits of marketing research are

(A) BENEFITS OF MARKETING RESEARCH TO TOP-LEVEL MANAGEMENT:

MR at the government level is useful in the following areas:

(C) BENEFITS OF MR TO ADVERTISING AGENCIES:

MR supports advertising agencies in regard to advertising activities. It provides reliable and

(D) BENEFITS OF MARKETING RESEARCH TO WHOLESALERS:

MR is beneficial to wholesalers in the following areas of their business: