Professional Documents
Culture Documents
SCOPE
Marketing research is the function that links the consumer with the organization
through information and involves a systematic and objective search and analysis of
information that can be used for evolving some marketing decisions. The function
of marketing research is to look at the particular decision area where research
results are used.
Sales Analysis: Sales analysis considers types of consumers that constitute the
potential market, size and location of the market, growth and concentration of the
market over a certain period of time, purchase habits of key market segments, the
consumers preference to buy some particular brands.
Sales Methods and Polices: Marketing research studies focus their attention to
evaluate the effectiveness of the present distribution system likely to be used in
establishing or revising sales territory boundary, compensation to sales forces,
physical distribution and analysis of cost of distribution cost.
Product Management: Every marketer tries to formally or informally utilize
information to manage the existing and new products and examines market
feedback about competitive offerings. Marketing research studies have been
conducted to monitor the performance of the test brand launched in the selected
market.
Significance
Market Information
Customer Needs
Competitor Analysis
Limitations
Marketing Research (MR) is not an exact science though it uses the techniques of
science. Thus, the results and conclusions drawn upon by using MR are not very
accurate.
The results of MR are very vague as MR is carried out on consumers, suppliers,
intermediaries, etc. who are humans. Humans have a tendency to behave artificially
when they know that they are being observed. Thus, the consumers and respondents
upon whom the research is carried behave artificially when they are aware that
their attitudes, beliefs, views, etc are being observed.
MR is not a complete solution to any marketing issue as there are many dominant
variables between research conclusions and market response.
MR is not free from bias. The research conclusions cannot be verified. The
reproduction of the same project on the same class of respondents give different
research results.
Inappropriate training to researchers can lead to misapprehension of questions to be
asked for data collection.
Cont
Many business executives and researchers have ambiguity about the research problem
and its objectives. They have limited experience of the notion of the decision-making
process. This leads to carelessness in research and researchers are not able to do
anything real.
There is less interaction between the MR department and the main research executives.
The research department is in segregation. This all makes research ineffective.
MR faces time constraint. The firms are required to maintain a balance between the
requirement for having a broader perspective of customer needs and the need for quick
decision making so as to have competitive advantage.
Huge cost is involved in MR as collection and processing of data can be costly. Many
firms do not have the proficiency to carry wide surveys for collecting primary data, and
might not also able to hire specialized market experts and research agencies to collect
primary data. Thus, in that case, they go for obtaining secondary data that is cheaper to
obtain.
MR is conducted in open marketplace where numerous variables act on research
settings.
Ethics in Marketing
Research
Objectivity in Interpretation
purposely withholding information
changes in wording from original survey
Overstating of findings
Integrity in Data Collection
false data
failure to abide by agreed-upon data
collection procedures
Cont
MIS
Introduction
Marketing was the first functional area
to exhibit an interest in MIS
The marketing information system has
three subsystems; the accounting
information system, marketing research,
and marketing intelligence
Functional information systems: the
conceptual systems should be "mirror
images" of the physical systems
Manufacturing
information
system
Finance
information
system
Human resource
information
system
Information
resource
information
system
Marketing
function
Manufacturing
function
Finance
function
Human
resources
function
Information
Services
function
Marketing intelligence
Internal
marketing
information
Environment
Firm
Marketing communications
Data Bank
Statistical
Bank
MKIS
Model
Bank
Display
unit
Marketing
Manager
Marketing Intelligence
Marketing Intelligence (MI) is the
information relevant to a companys
markets, gathered and analyzed
specifically for the purpose of
accurate and confident decisionmaking in determining market
opportunity, market penetration
strategy, and market development
metrics. - wikipedia
Terminology of Marketing
Research
Research Problem
Purpose
The purpose of a problem statement is to:
Introduce the reader to the importance of the topic being studied. The
reader is oriented to the significance of the study and the research
questions or hypotheses to follow.
Place the problem into a particular context that defines the parameters of
what is to be investigated.
Provide the framework for reporting the results and indicates what is
probably necessary to conduct the study and explain how the findings will
present this information.
There are four general conceptualizations of a research problem in the social sciences:
Casuist Research Problem -- this type of problem relates to the determination of
right and wrong in questions of conduct or conscience by analyzing moral
dilemmas through the application of general rules and the careful distinction of
special cases.
Descriptive Research Problem -- typically asks the question, "what is...?" with the
underlying purpose to describe a situation, state, or existence of a specific
phenomenon.
Hypothesis Statement
A hypothesis is a proposed statement made on the basis of limited evidence that can be
proved or disproved and is used as a starting point for further investigation.
It is a proposed statement.
A hypothesis is not fact, and should not be argued as right or wrong until it is tested and
proven one way or the other.
It is made on the basis of limited (but hopefully some) evidence.
Your hypothesis should be informed by as much knowledge as you have. This should
include data that you have gathered, any research you have done, and the analysis of the
current problems you have performed.
It can be proved or disproved.
A hypothesis pretty much says, I think by making this change, it will cause this effect. So,
based on your results, you should be able to say this is true or this is false.
It is used as a starting point for further investigation.
The key word here is starting point. Your hypothesis should be formed and agreed upon
before you make any wireframes or designs as it is what guides the design of your test. It
helps you focus on what elements to change, how to change them, and which to leave alone.
Characteristics of
Hypothesis
4. Research hypothesis
This part should specify the exact questions to be investigated. This needs to be precise and
should take the form of hypotheses or statements (normally between two and four). It should
specify what indicators will be measured in order to address the broad issues identified within
the aims and background sections.
5. Data collection
The data collection methods must be described succinctly. They should include a description
of the data collection process and the strategy to be adopted (survey method or case study). If
a survey method is used, then you should mention the geographic regions or demographic to
be covered. Mention should be made of the sample frame and sampling technique utilised.
Statistical knowledge helps and there are many books available on this topic. Careful attention
needs to be paid in selecting the sample if it is to represent the demographic being
investigated. The sample also needs to be determined based on confidence interval and
confidence level. A useful tool to determine these is available at surveysystem.com
6. Research methodology
The research methodology section should explain the key reasons for choosing the proposed
methods. The research strategy and data collection methods should be discussed and
evaluated, in terms of their suitability and their implications for the quality of the data to be
collected. The benefits should also be compared to possible alternative approaches.
This section may also discuss the need for depth and breadth of information and the benefits
of using qualitative or quantitative data, the likely validity of the data collected, the
probability of the respondents providing honest responses and the reliability of the methods
utilized.
7. Schedule of activity
This is an important section as the proposed research should be conducted within time and
budgetary limits. The feasibility of the proposed research should be considered in relation to
the availability of resources. An estimate needs to be provided in terms of total hours required
for completion of the project designing the questionnaire, planning, scheduling and
conducting interviews, data analysis (qualitative/quantitative), and writing up the report (first
draft/final draft). A Gantt chart may help to outline this plan.
8. Code of conduct
This section will articulate the way the researcher will comply with the spirit and practice of
research ethics and will conduct their activities within the political/legal context within which
the research will be conducted. Factors to address may include: confidentiality and anonymity
statements, undertaking informed consent, authorization for access to people and/or data and
data security.
9. Research limitations
The researcher needs to acknowledge any limitations that may be inherent in the research
design and to the extent it may affect the accuracy of the research findings. Examples could
include: how far the findings can be generalized to the whole demographic/situation,
restrictions arising from time and resources, and issues around objectivity.
10. Outcomes
The end-products likely to be produced as a result of the research activity are described in this
section. The outcomes are not similar to findings. Examples would include: new practices,
guidelines for good practice and recommendations.
Sources of Information
Primary
Secondary
Observation Methods
Structured versus Unstructured Observation
Observation Methods
Disguised versus Undisguised Observation
In disguised observation, the
respondents are unaware that they are
being observed. Disguise may be
accomplished by using one-way mirrors,
hidden cameras, or inconspicuous
mechanical devices. Observers may be
disguised as shoppers or sales clerks.
In undisguised observation, the
respondents are aware that they are under
observation.
Observation Methods
Natural versus Contrived Observation
Natural observation involves observing
behavior as it takes places in the
environment. For example, one could
observe the behavior of respondents
eating fast food in Burger King.
In contrived observation, respondents'
behavior is observed in an artificial
environment, such as a test kitchen.
A Classification of Observation
Methods
Fig. 6.3
Classifying
Observation
Methods
Observation Methods
Personal
Observation
Mechanical
Observation
Audit
Content
Analysis
Trace
Analysis
Observation Methods
Personal Observation
Observation Methods
Mechanical Observation
Do not require respondents' direct participation.
the AC Nielsen audimeter
turnstiles that record the number of people entering or
leaving a building.
On-site cameras (still, motion picture, or video)
Optical scanners in supermarkets
Do require respondent involvement.
eye-tracking monitors
pupilometers
psychogalvanometers
voice pitch analyzers
devices measuring response latency
Observation Methods
Audit
The researcher collects data by examining
physical records or performing inventory
analysis.
Data are collected personally by the
researcher.
The data are based upon counts, usually of
physical objects.
Retail and wholesale audits conducted by
marketing research suppliers were
discussed in the context of syndicated
data in Chapter 4
Observation Methods
Content Analysis
The objective, systematic, and quantitative
description of the manifest content of a
communication.
The unit of analysis may be words, characters
(individuals or objects), themes (propositions),
space and time measures (length or duration
of the message), or topics (subject of the
message).
Analytical categories for classifying the units
are developed and the communication is
broken down according to prescribed rules.
Observation Methods
Trace Analysis
Data collection is based on physical traces, or evidence, of past
behavior.
Attitudes
Expressions of inner feelings that reflect
whether a person is favorably or
unfavorably predisposed to some object -a brand, a brand name, a service, a
service provider, a retail store, a
company, an advertisement, in essence,
any marketing stimuli.
Opinions
A large amount of questions in marketing
research are designed to measure
attitudes
Marketing managers want to understand
Three Components of
Attitudes
The ABCs of attitudes:
Measurement
To collect data, you need to have something to measure
Variables
When we measure the attributes of
an object, we obtain a value that
varies between objects.
For example consider the people in
this class as objects and their height
as the attribute
The attribute height varies between
objects, hence attributes are more
collectively known as variables
Variables can be measured on four
different scales
Nominal Scale
Nominal Scale
Assign subjects to groups or
categories
Mutually exclusive
Collectively exhaustive
Other Examples
Sex
Social status
Marital status
Geographic location
Ethnic Group
Types of restaurants
Brand choice
Religion
Coded as
Coded as
Nominal Scale
Which of the following media influences your purchasing
decisions the most?
1 Television
2 Radio
3 Newspapers
4 Magazines
Ordinal Scale
classifies nominal data
according to some order or rank
E.g. names ordered
alphabetically
With ordinal data, it is fair to
say that one response is greater
or less than another.
E.g. if people were asked to
rate the hotness of 3 chili
peppers, a scale of "hot",
"hotter" and "hottest" could be
used. Values of "1" for "hot", "2"
for "hotter" and "3" for "hottest"
could be assigned.
The gap between the
items is unspecified.
Ordinal Scale
Can include
opinion and
preference scales
Median but not
mean
No unique,
arithmetic origin
Means items
cannot be added
In marketing
research practice,
ordinal scale
Ordinal Scale
Rank Player
Avg Pts
1.Woods
16.53
2. Els
9.26
Examples
GPA
3. Singh
9.19
4.Love-III
7.96
Quality
5. Furyk
7.57
6. Weir
7.46
7.Toms
5.92
8.Perry
5.68
9. Harrington
5.37
10. Goosen
5.18
Interval Scale
assumes that the measurements
are made in equal units.
i.e. gaps between whole numbers
on the scale are equal.
e.g. Fahrenheit and Celsius
temperature scales
an interval scale does not have to
have a true zero. e.g. A
temperature of "zero" does not
mean that there is no
temperature...it is just an arbitrary
zero point.
Permissible statistics:
Interval Scale
How likely are you going to buy a new automobile within the
next six months? (Please check the most appropriate category)
Definitely will not buy
Probably will not buy
May or may not buy
Probably will buy
Definitely will buy
___ 1
___ 2
___ 3
___ 4
___ 5
Ratio Scale
similar to interval scales
except that the ratio scale
has a true zero value.
e.g. the time something
takes
allows you to compare
differences between
numbers.
Permits full arithmetic
operation.
If a train journey takes 2
hr and 35 min, then this is
Ratio Scale
Indicates actual amount of variable
Shows magnitude of differences between points on scale
Shows proportions of differences
Examples
height, weight, age,
Length
time
Income
Market share
7
6
5
4
_______
3
2
1
0
_______
Primary Scales of
Measurement
Nominal
Ordinal
Interval
Ratio
Numbers
Assigned
to
Runners
81
Rank Order
of Winners
Performance
Rating on a
0 to 10 Scale
Time to Finish
in Seconds
Third
Place
Second
Place
First
Place
8.2
9.1
9.6
15.2
14.1
13.4
Comparison of Measurement
Scales
Label
Order Distance
Origin
Nominal scale
No
Yes
No
No
Ordinal scale
No
Yes
Yes
No
Interval scale
No
Yes
Yes
Yes
Use of Measurement
Scales
Nominal
Used to categorize objects
Ordinal
Used to define ordered relationships
Interval
Used to rank objects such that the
magnitude of the difference between two
objects can be determined
Ratio
Same as interval scale but has an absolute
zero point
Paired
Comparis
on
Rank
Orde
r
NonComparative
Scales
Consta Others
nt Sum
Likert
Continu
ous
Rating
Scales
Semantic
Differenti
Itemized
Rating
Scales
Stapel
Types of Scaling
Techniques
COMPARATIVE SCALES
Involve the respondent directly comparing stimulus objects.
e.g. How does Pepsi compare with Coke on sweetness
NONCOMPARATIVE SCALES
Respondent scales each stimulus object independently of
other objects
e.g. How would you rate the sweetness of Pepsi on a scale of 1
to 10
COMPARATIVE SCALES
Paired Comparison
Please indicate which of the following airlines
you prefer by circling your more preferred
airline in each pair:
Air Canada
WestJet
Air Transat
Air Canada
Zip
WestJet
WestJet
Air Transat
Air Canada
Zip
Zip
Air Transat
COMPARATIVE SCALES
Constant Sum Scales
Allocate a total of 100 points among the following softdrinks depending on how favorable you feel toward each;
the more highly you think of each soft-drink, the more
points you should allocate to it. (Please check that the
allocated points add to 100.)
Coca-Cola
_____
points
7-Up
_____
points
Dr. Pepper
_____
points
Tab
_____
points
Pepsi-Cola
_____
points
100 points
________________
Friendliness
_______________
________________
Investment vehicles
________________
Parking facilities
__________________
COMPARATIVE SCALES
Rank-Order Scales
Rank the following soft-drinks from 1 (best) to 5 (worst)
according to your taste preference:
Coca-Cola
_____
7-Up
_____
Dr. Pepper
_____
Pepsi-Cola
_____
Mountain Dew
_____
Topandbottomrankchoicesareeasy
Middleranksareusuallymostdifficult
Comparative Scales
Rank Order Scale
Indicate your preferred type of music
with a 1, your second favorite with a 2,
and so on for each type of music:
____
____
____
____
____
Heavy Metal
Alternative
Urban Contemporary
Classical
Country
Instructions
Rank the various brands of toothpaste in order of preference.
Begin by picking out the one brand that you like most and
assign it a number 1. Then find the second most preferredbrand and assign it a number 2. Continue this procedure until
you have ranked all the brands of toothpaste in order of
preference. The least preferred brand should be assigned a a
rank of 10. No two brands should receive the same rank
number. The criterion of preference is entirely up to you.
There is no right or wrong answer. Just try to be consistent.
Brand
Rank Order
1. Crest
2. Colgate
3. Aim
4. Mentadent
5. Macleans
6. Ultra Brite
7. Close Up
8. Pepsodent
9. Plus White
10. Stripe
COMPARATIVE SCALES
Compared to Chevrolet, Ford is:
less
innovative
about the
same
more
innovative
The worst
X
10 20 30 40 50 60 70 80 90 100
The Best
Non-Comparative Scales
Non-Comparative Scales
Semantic Differential Scale
Here are a number of statements that could be used to describe
K-Mart. For each statement tick ( X ) the box that best
describes your feelings about K-Mart.
Modern Store
Low prices
Old- fashioned
store
High prices
Unfriendly staff
Friendly staff
Narrow product
range
Sophisticated
Wide product
range
Unsophisticated
customers
customers
Semantic Differential
Scale
- Snake
Diagram
Modern Store
X
X
Low prices
X
Friendly staff
Wide product
range
Sophisticated
customers
Key :
X
Sear
s
K-Mart
X
X
Old- fashioned
store
High prices
Unfriendly staff
Narrow product
range
Unsophisticated
customers
Old
X
Fashioned 1
Modern
X
4
X
3
Cheap
1
Friendly
service
5
Expensive
5
5
Unfriendly
service
disagree
Neither
agree nor
disagree
3
agree
Strongly
agree
5
AGREEMENT
Strongly
Agree
Agree
Undecided
Disagree
Strongly
Disagree
Agree Strongly
Agree Moderately
Agree Slightly
Disagree Slightly
Disagree
Moderately
Disagree Strongly
Agree
Disagree
Agree
Undecided
Disagree
Yes
No
Completely
Agree
Mostly Agree
Slightly Agree
Slightly
Disagree
Mostly Disagree
Completely
Disagree
Disagree
Strongly
Disagree
Tend to
Disagree
Tend to Agree
Agree
Agree Strongly
FREQUENCY
Very
Frequently
Frequently
Occasionally
Rarely
Very Rarely
Never
A Great Deal
Much
Somewhat
Little
Never
Always
Very
Frequently
Occasionally
Rarely
Very Rarely
Never
Often
Sometimes
Seldom
Never
Always
Usually
About Half the
Time
Seldom
Never
Always
Very Often
Sometimes
Rarely
Never
Almost Always
To a Considerable
Degree
Occasionally
Seldom
IMPORTANCE
Very Important
Important
Moderately
Important
Of Little Importance
Unimportant
Very Important
Moderately Important
Unimportant
QUALITY
Very Good
Good
Barely
Acceptable
Poor
Very Poor
Extremely
Poor
Below
Average
Average
Above
Average
Excellent
Good
Fair
Poor
LIKELIHOOD
Like Me
Unlike Me
Definitely
Very Probably
Probably
Possibly
Probably Not
Very Probably
Not
To a Great Extent
Somewhat
Very Little
Not at All
True
False
True of Myself
Mostly True of Myself
About Halfway True of
Myself
Slightly True Of Myself
Not at All True of Myself
+5
+4
+4
+3
+3
+2
+2
+1
+1
High quality
Poor service
-1
-1
-2
-2
-3
-3
-4
-4
-5
-5
+3
+2
+1
Wide Selection
-1
-2
-3
Staple Scale
The following questions concern your ratings of several suppliers that provide
products for use in your store.
XYZ
Poor Product
Selection
-5
-4
-3
-2
-1
Costly Products
-5
-4
-3
-2
-1
Fast Service
-5
-4
-3
-2
-1
High Quality
Products
-5
-4
-3
-2
-1
Innovative
-5
-4
-3
-2
-1
Some Basic
Considerations When
Selecting a Scale
Selecting a Rating,
Ranking, Sorting, or
Purchase Intent Scale
Number of
Categories
Balanced Versus
Non-balanced
Alternatives
Odd
Even
Strongly Agree
Agree
_____ Agree
_____
Neutral
_____ Disagree
_____
Disagree
Strongly disagree_____
Unbalanced
Very good
______
Excellent
______
Good
______
Very Good
______
Fair
______
Good
______
Poor
______
Fair
______
Very Poor
______
Poor
______
Unbalanced
Scale
Extremely good
Very good
Good
Bad
Very bad
Extremely bad
Extremely good
Very good
Somewhat Good
Good
Bad
Very bad
Forced
Extremely Reliable
___
Extremely Reliable
___
Very Reliable
___
Very Reliable
___
Somewhat Reliable
___
Somewhat Reliable
___
Somewhat Unreliable
___
Somewhat Unreliable
___
Very Unreliable
___
Very Unreliable
___
Extremely Unreliable
___
Extremely Unreliable
___
Dont know
___
End Anchored
Excellent
_____
Very Good
_____
Fair
_____
_____
Poor
_____
_____
Very Poor
_____
Excellent
_____
Poor
_____
_____
IntervalsMayNotReflecttheSemantic
MeaningoftheAdjectives
Excellent _____
Labeled
IntervalsAre
NotEqual
Excellent
_____
Very Good
_____
Very Good_____
Fair
_____
Fair
_____
Poor
_____
Poor
_____
Very Poor
_____
IntervalsAre
NotEqual
10 Point
_____
Excellent
_____
_____________
_____
_____________
_____________
_____________
_____
_____________
_____________
_____
Poor
_____
_____________
_____________
Poor
_____________
Attitude
component
Itemized
category
Rank Constant
order sum
Likert
Semantic
differential
Knowledge
Awareness
Attribute beliefs
Attribute
importance
Overall
preferences
Specific
attributes
Affect or Liking
Action
intentions
1. Reliability
The degree to which a measure accurately
captures an individuals true outcome
without error; Accuracy
synonymous with repetitive consistency
2. Validity
The degree to which a measure faithfully
represents the underlying concept; Fidelity
3. Sensitivity
The ability to discriminate meaningful
differences between attitudes. The more
categories the more sensitive (nut less
reliable)
4. Generalizability
How easy is scale to administer and interpret
Example of modest
validity, low reliability
Scale genuinely measures
consumers interest in kinds of
stationery, but poorly worded
items, sloppy administration, data
entry errors lead to random errors
in data
Note that reliability sets an upper
limit on validity -- a measure with a
lot of errors is limited in how well it