Marketing Research Tool

CONTENTS Unit No. 1. TITLE Page No.
Fundamentals of Market Research 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 The Marketing Environment Market Research The Need for Market Research Applications of Market Research Threats to Market Research Market Information System (MIS) Market Decision Support System (MDSS) Summary Keywords Case Study
1.11 Self-assessment Questions Application and Limitations 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Introduction Research Activities in Large Companies The Client/Researcher Interface Researcher Obligations to a Client Decision Making and Research Inputs Limitations of Market Research Summary
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2.8 Key Words 2.9 Case Study 2.10 Serf-assessment Questions
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Sampling 3.1 3.2 Introduction What is Sampling?
Unit No. 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 4.
TITLE Reasons for Sampling Estimating and Testing of Hypothesis Definition and Managerial Objective of Sampling Problems Associated with Sampling Non-response Issues in Sampling Factors Determining the Sample Size Advantages of Sampling The Sampling Process Summary Keywords Case Study Serf-assessment Questions
Page No.
Questionnaire - Design Development 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 Introduction Functions and Classification of a Questionnaire Flow Chart for Questionnaire Design Types of Questions Choice of Survey Methods Close Ended and Open Ended Questions Sample Questionnaire Summary
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4.9 Keywords 4.10 Self-assessment Questions 5. Scaling Methods 5.1 5.2 5.3 5.4 5.5 Introduction Types of Scales The Concept of Attitude Criteria for a Good Test Forms of a Rating Scale
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Unit No. 5.6 5.7 5.8 5.9 Summary
TITLE Selecting the Appropriate Scale to Use Keywords Self-assessment Questions
Page No.
Data Collection Primary / Secondary 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 Introduction Quality of Data and Data Types Data Types Sources of Data Communication Media Formulating a Data Acquisition Plan Basic Methods of Gathering Primary Data Advantages and Disadvantages of Primary Data Types of Secondary Data Collection and its Advantages and Disadvantages
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6.10 Respondents and their Descriptors 6.11 Summary 6.12 Keywords 6.13 Case study 6.14 Self-assessment Questions Data Preparation and Processing 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 Introduction Traditional Approach of Data Processing Principles of Coding Editing Tabulation Summary Key Words Self-assessment Questions
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Unit _No._ 8.
TITLE Data Analysis and Interpretation 8.1 Introduction 8.2 Nature of Interpretation 8.3 Overview of Data Analysis Process 8.4 Statistics Associated with Frequency Distribution 8.5 Measures of Shape 8.6 Measures of Dispersion 8.7 Summary 8.8 Keywords 8.9 Self-assessment Questions Multivariate Analysis 9.1 Introduction 9.2 ConjointAnalysis 9.3 Applications and Problems of Conjoint Analysis 9.4 FactorAnalysis 9.5 Model, Application and Limitations of Factor Analysis 9.6 Cluster Analysis 9.7 Multi-dimensional Scaling (MDS) 9.8 Summary 9.9 Key Words 9.10 Self-assessment Questions Research Process and Design 10.1 Introduction 10.2 Research Design 10.3 Formulating the Research Problem 10.4 Features of a Good Research Design 10.5 Classification of Research Design 10.6 Summary
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9.
173
10.
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Unit No. 10.7 Keywords 10.8 Case Study
TITLE
Page No.
10.9 Self-assessment Questions
11.
Specialised Techniques in Market Research 11.1 Introduction 11.2 Types of Specialised Techniques 11.3 Research in Advertising Decisions 11.4 Motivation Research 11.5 Techniques of Motivational Research 11.6 Limitations of Motivational Research 11.7 Research for Pharmaceutical Products 11.8 The Source of Information for Pharma Products 11.9 Research for Industrial Products 11.10 Sources of Information for Industrial Products 11.11 Summary 11.12 Key Words 11.13 Self-assessment Questions
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12.
Market and Sales Analysis Research 12.1 Introduction 12.2 Types of Sales Analysis 12.3 Areas of Sales Analysis 12.4 Methods for Measuring Market Potential 12.5 Sales Forecasting 12.6 12.7 12.8 12.9 Methods of Sales Forecasting Summary Keywords Self-assessment Questions
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13.
New Product Development & Test Marketing 13.1 Introduction 13.2 New Product Development 13.3 New Product Development Process 13.4 Test Marketing 13.5 Uses of Test Marketing 13.6 Guidelines for Test Marketing 13.7 Advertising Research 13.8 Importance of Advertising 13.9 Need for Advertising Research 13.10 Media Research 13.11 Copy Testing 13.12 Examples of Advertising Research Studies in India 13.13 Evaluation of Advertising Research 13.14 Summary 13.15 Keywords 13.16 Self-assessment Questions Presentation of Research Findings 14.1 Introduction 14.2 Types of Reports 14.3 Report Content 14.4 Principles of Report Writing 14.5 Various Graphic Representations and Ethical Issues 14.6 Managing Market Research 14.7 Summary 14.8 14.9 Keywords Self-assessment Questions
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14.
279
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Unit No. 15.
TITLE Research in Service Segments 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 Introduction Research through Internet Era Methods of Online Research/Surveys Disadvantages of Online Surveys Ethical Issues in Marketing Research Responsibility towards a Client Summary Keywords Self-assessment Questions
Page No. 299
Marketing Research
1.1
THE MARKETING ENVIRONMENT
I have a good product, I have a good brand name, I have a good marketing network and I give the best price. I have goodwill from my customers - but still I am not achieving the volume that I want. What is wrong? Is my product not appreciated by the customer or haven't I reached my target customers? Does my price bother the customer while he / she is buying? To find the solution for all these problems, I need to do a systematic research of all the above activities. Today these questions are asked by every organisation, but only a few organisations act on the findings of their research and they become more successful with the right strategies. The organisations which do not act on time fail to sustain their hold on the market. Today, in the competitive market, one has to study all the aspects of the marketing mix -viz. the Product, the Place, the Pricing and the Promotional/Advertisement activities, if one wants to become successful in the market for a long time. Then all the above parameters are to be studied carefully and then launch/re-launch the product with the right price to the right customer (target customer). For that, a detailed research has to be conducted - not once but on regular intervals so as to be in the market for a long time, cate to the needs of the customers and satisfy the customers with profits to concerned organisation. 1.2 MARKET RESEARCH
Before going on to Market research, let us understand what is meant by the term "research". Research always starts with a question or a problem. The purpose of research is to find answers to questions through the application of scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject method. The term marketing is a broader concept which includes all activities, which are related to the transfer of ownership of goods and service e.g. product development, packing, branding, warehousing, distribution, advertising, sales promotion, sales service and so on. Market is a narrow concept which refers to all potential customers sharing a particular need/want and might be willing to engage in activities to satisfy those wants. Research is a process of gathering, recording and the analysis of relevant and critical facts about a specific problem. Thus market research as per the American Marketing, Association is "The systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services". Another simpler definition can be put in this way.
Unit 1
Fundamentals of Market Research
Market Research is the function which links the seller and the buyer through information -information used to identify and define marketing opportunities and problems, generate, evaluate the actions and monitor marketing performance by improving and understanding of the market as a process. Key aspects of the definition Market research is a problem-solving device. It is a continuous and evolving process as the needs and wants keep on changing. It is a well-defined, planned process comprising of systematic and intensive investigations. It adopts scientific methods and objectivity in solving marketing problems.
Research can be classified into two broad categories: i) Basic research ii) Applied research
Basic research is sometimes called fundamental research, theoretical research or 'pure' research. It aims at expanding the frontiers of knowledge and does not directly involve pragmatic problems. The essence of basic research is that it addresses itself to more fundamental questions and not to the problems with immediate commercial potential. Applied research, which is also called decisional research, on the other hand, proceeds with a certain problem, and it specifies alternative solutions and the possible outcomes of each alternative. Unlike basic research, it is prompted by commercial considerations. Though one may usually be able to distinguish between basic research and applied research, the distinction between the two sometimes gets blurred. Several firms may be engaged in basic research which does not have any immediate commercial use. However, it may be potentially commercial or else the firms would not have undertaken it at all. Applied research can be divided into two categories: i) ii) Problem-solving research Problem-oriented research
Problem-solving research, as the name implies, is concerned with a particular issue or a problem and is usually proprietary in character. The latter characteristic indicates that such a research is undertaken within a firm or by an outside consultant on its behalf.
Marketing Research
Problem-oriented research, on the other hand, is concerned with a class of issues or problems in which several firms may be interested. Research of this type is usually concerned with the conceptual aspects but is oriented towards applied problems. ,
i
x^T Activity A;
a) What do you mean by the term'research'?
b) Do you think that market research is undertaken to guide managers in the analysis of marketing problems? Critically examine this statement. List down any two major problems in marketing.
1.3
THE NEED FOR MARKET RESEARCH
Market research is not a substitute for top management judgment but is an aid to judgment. For any organisation, large or small, profit or non-profit institution, a systematic study of their market would be useful in decision-making. The market research function in various government departments will be useful to entrepreneurs and other business organisations. They will be able to get authentic information on public policy impact, economic development, technology transfers, and planning. Market research is the foundation stone for marketing concept. Managers are separated from their customers. They need information on their consumers. The consumer needs can be studied and thus goods and services can be produced as desired by the consumers for greater satisfaction and achievement of organisational goals. The significance of market research is increasing due to the shift from local, national to international marketing and from price to non-price competition. There are several factors which have contributed to the research:
Marketing Research
run was approx 20,000 copies. Indications are that within a short time it has become one of the leading monthly popular marathi magazine. Nestle India Limited launched Small KTTKAT at Rs 5/- from its international portfolio. It is wrapped in vibrant colours of White and Red in conformity with its international packaging. Earlier, Nestle India Limited commissioned a consumer research study. The results of this study were encouraging and showed that the Indian customers is always interested in experimenting with new food options viz small quantity (Chotta pack) and at less price. Pepsi Foods has assigned great importance to Market research. Through research it gets systematic information about its markets and its customers. All its research is done by the IMRB. Broadly, research studies done for Pepsi Foods fall in the following three areas: (i) Studies undertaken on a continuous basis like marketing tracking studies and retail audits. Studies that are commissioned for specific marketing problems faced by the company.
(ii)
(iii) Studies done from time to time as per the requirement of the company such as a study to ascertain the effectiveness of an ad campaign. All these three types of research studies have tremendously helped Pepsi Foods to strengthen its position in the market. It feels the pulse of the market and is always in touch with the latest developments in the market. Multinational company Whirlpool Asia lays considerable emphasis on Market research. In this company, every activity, strategy and decision is based on data collected through the research process. It believes in planning research in advance though it is rather difficult. It strives to have a meaningful dialogue with the consumer in order to know his real opinion about its products, what difficulties he experiences and what suggestions he has to offer. Information thus received proves to be quite useful to the company in modifying its products or in evolving new ones. Whirlpool has gained an insight into the various segments in the market. In India, it has segmented the market on the basis of the different stages of the product life cycle. Now they have assigned their brand ambassador married couple as Kajol and Ajay to advertise their product. Decisions like which size of refrigerator should be put in the market or what should be the price of a particular model are based on research. Marketing and Research Group (MARG) has been the main Market research agency for Whirlpool.
Unit 1
JS$ Activity B:
a) Do you really think that market research should be done on a regular basis by every organisation? Can you mention any organisations where you feel that this happens on regular basis?
b) In your opinion, where would be the problems in the different areas of marketing, in which market research can be helpful? Give details of any four problems which you have seen.
A. Market research
As market research does not address itself to basic or fundamental questions, it does not qualify as basic research. On the contrary, it tackles problems which seem to have an immediate commercial potential. In view of this major consideration, market research should be regarded as applied research. We may also say that market research is of both typesproblem-solving and problem-oriented. Market research is a systematic and objective study of problems pertaining to the marketing of goods and services. It may be emphasised that it is not restricted to any particular area of marketing, but is applicable to all its phases and aspects. In short, market research provides the requisite information for making marketing decisions.
B. The Growth of Market research

Over the past several decades, there has been a gradual development in the field of market research. The first evidence of formal research techniques being employed could be traced as far back as 1824.
Marketing Research
However, for almost one century thereafter, market research developed rather slowly and sporadically. It was only from 1910 that it made rapid strides. Several factors have contributed to the growth of market research. First, as a result of large scale production, producers do not have direct contact with the consumers. This leads to problems in the marketing of goods. It is necessary for a manufacturer to know the potential areas where his goods could be marketed, the probable demand for the same and the extent of profitability and competition. This is possible only when a systematic investigation is undertaken. Second, there has been a shift from a seller's to a buyer's market. This necessitates a better understanding of buyer behaviour. This aspect is studied in market research. Third, the emergence of specialists such as statisticians, psychologists and behavioural scientists in a fairly large number has also enhanced the importance of market research in no small measure. These specialists have helped in the development of market research as a separate discipline and strengthened its techniques. Fourth, the increasing use of computers. The IT sector has further contributed to the growth of market research. Finally, the changes in the composition of population, particularly the shift from the rural to urban areas has given a wide scope for marketing of various types of goods and services in an urban area. C. Market research for Industrial Goods Let us know the difference between consumer market research and industrial market research. This difference arises on account of the distinction between the markets for consumer and industrial goods. The following are the main points of distinction between the two: 1. Derived demand One way of classification of demand is: autonomous (direct) and derived (indirect) demand. The demands for industrial goods are derived demands as they are required to obtain consumer or industrial goods. For example, the demand for compressors to be used in the manufacture of refrigerators which are consumer goods, is a derived demand. Another example could be the demand for steel which is required for the manufacture ofjrmghings, which are industrial goods. Thus, the derived demand is aifmdirect demandjthere is a chain of such a derived demand. The larger the chain, the morecomplicated is the process of analysis compared to the analysis of the autonomous or direct demand for consumer goods.
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2. Demand concentration
There are three types of concentrated demand for industrial goods: Geographic Industrial Purchasing
Geographic concentration implies that there is a general tendency among many industries to cluster in selected areas. For example, this may be on account of the proximity of the sources of raw material. Industrial concentration may be a result of the inherent characteristics of industrial goods and services, leading to a limited number of such markets. Purchasing concentration results from the fact that a few firms account for a relatively large proportion of the total demand for industrial goods. Unlike industrial goods, consumer goods do not have these three types of concentration in demand. There is no geographic concentration as consumers are scattered all over the country. There is no industrial concentration as markets for consumer goods are not confined to limited locations. Finally, there is no purchasing concentration as consumer goods are not purchased in bulk by a few consumers. This is because the demand for consumer goods emanates from every consumer who buys in a limited quantity as per his requirement.
3. Demand volatility
The demand for industrial goods is subject to sharp variations at times. This happens because of factors such as drastic changes in business conditions, financial considerations and price. Industrial buyers react to such changes by varying the level of inventory accumulation and advancing or postponing the timing of purchases of industrial goods. In contrast to the demand for industrial goods, the demand for consumer goods is not subject to sharp fluctuations, particularly in respect of items of everyday use. Consumers have to buy their daily requirements even though the prices may be higher. Broadly, the demand for consumer goods would be less volatile on account of changes in the business environment and financial stringency than that for industrial goods.
Marketing Research
4.
Purchasing procedures and organisation
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As there are several buying influences affecting industrial firms, generally an industrial purchasing decision involves more persons than a consumer purchasing decision. In view of this, a study of attitudes, motivations and the relative influence of purchasing decisions is more complex than that for consumer goods. On the other hand, persons deciding to make industrial purchases are better informed than the average consumer. i
5.
Manufacturer-buyer relationships
The relationship between the manufacturer and buyer of industrial goods is stronger, closer and more continuous than that for consumer goods and services. This is primarily because there are less intermediaries for industrial goods than for consumer goods.
Whenever market research relates to industrial goods, these differences between industrial and consumer goods markets must be borne in mind. Suitable changes in the emphasis of market research techniques should be introduced. To apply the same techniques, disregarding the substantial differences between industrial and consumer goods markets, would undermine the practical utility of market research for industrial goods.
Activity C;
a) Many times the management is not convinced about the money spent on market research as they think of it as an unnecessary activity over which no funds should be spent. Do you agree to this statement?
b)
The field of market research is very large as it covers a wide variety of problems. List any five problems which might be applicable.
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Unit 1
1.5 THREATS TO MARKET RESEARCH

The success of Market research depends upon the cooperation of the respondents, unprofessional or unethical Market research may seriously damage the research which in turn will give bad results in the reports the researchers may also draw wrong judgements and results which will hamper in the decision making of their client. It is necessary to ascertain the reaction of the respondents, the three major issues which causes threats to marketing and survey research are: t Excessive interviewing Lack of knowledge Amusement of respondents The use of Market research as a sales ploy
It is noted that these factors pose a threat to Market research especially in the Developed and western countries. In our country Market research is still used very rarely so these threats are almost non-existent. Researchers carried out reappraisal of these threats. They reported the results from five cross sectional studies conducted at two intervals the findings were as follows; They investigated three areas excessive interviewing lack of knowledge and abusement of respondent and use of market research as sales ploy, it was found that use of market research as sales ploy was the greatest threats if it is not checked it is likely to erode the trust of customer respondents, respondents will be suspicious of the interviews and will not cooperate in the right manner. The researchers have expressed their concern over the fact that almost forty percent of the college educated, middle upper income respondents and more than half of the respondents living in the western region of U.S. have experienced Market research as sales ploy. They feel that this may hamper the actual genuine people conducting the research, particularly as these people may be opinion leaders of their better education and affluence. The other two threats were not as serious as compared to the third one but there is a potential danger in these fields also, because as research depends upon the respondents cooperation its depletion will adversely affect the interest of Market researchers. It was also concluded that both excessive interviewing and lack of consideration and abuse of respondent should be avoided.
Marketing Research
This can be done by screening the questions so that the persons who have been interviewed recently or too frequently can be eliminated. It is also advisable to use non-interviewing research techniques wherever possible so that the need to approach the respondents is minimized 1.6 MARKET INFORMATION SYSTEM (MIS)
Market research is said to be different from Marketing Information System (MIS). Let us define MIS as a structured, interacting complex of persons, machines, and procedures designed to generate a flow of pertinent information collected from internal and external sources for the use as a base for decision making in specified areas of marketing management. The definition indicates the interdependent activities associated with the collection of marketing information from internal and external sources. It also shows that such information is collected to draw the conclusion needed for decision making in different areas of marketing management. Market research is a means of obtaining information to be used for marketing decisions. If compared, both the concepts show that while market research generates information, MIS concentrates more on the storage and flow of information to marketing managers. This indicates that marketing information system is a much wider concept than market research. Good MIS determines the information needs of the organisation and generates and processes such information on a continuous basis. It should also provide for its storage so that it can be used as and when required. Let us analyse what type of information is required for our MIS systems. There are three types of information required for marketing managers, they are; 1. 2. 3. Recurrent information Monitoring information Requested information
Recurrent information: This type of information is provided on periodic basis, which pertains to information on sales market share customer satisfaction
Unit 1
perception of customers advertising expenditure
These are or may be supplied on a weekly or monthly basis. Monitoring information: This type of information is obtained from regular scanning of certain sources. The sources are: Official publications Journals Annual reports
These sources can be very helpful to organisations as they indicate the nature of problems that are likely to arise and the possible changes in the business environment, these can be also helpful in identifying new market segments, the new use of existing products and also the possibilities of improving product by introducing new features. Requested information: Requested information as the name suggests, this is sought by marketing managers. This can involve a wide range of activities such as cost and price analysis of a competitive product cash flow of competitive companies quality testing of competitive companies
These are few to name, such type of information would not be usually available unless a request is made for the same. Once a request is made for a specific information, then a series can be built up over time provided that such information is needed by the managers.
1.7
MARKET DECISION SUPPORT SYSTEM (MDSS)
__________
In a highly competitive environment, especially in the western countries, marketing managers find themselves seeking a wide range of information in order to take the right decisions. This means that they should not only be concerned with the availability of the requisite information but also with its accuracy and adequacy. This paved the way for the creation of a marketing decision support system (MDSS). This system consists of a collection of data, storage, analysis, and the reporting of marketing data. The new generation of computers and advanced software has given a boon for setting up the MDSS.
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Marketing Research
The main difference between MIS and MDSS is that whereas the former is centralised, the latter is decentralised and allows marketing managers to interact directly with the database. MDS S can be classified into five components 1. 2. 3. 4. 5. Data Sources Data Management Display Statistical analysis Modelling "
Data sources are major components of MDSS. These sources can be both internal and external. For example, a company's accounting system is an internal data source. This source provides data pertaining to orders, sales, inventory levels, receivables and payables. Library sources as well as syndicate services are the examples of external data sources. Library sources contain a wide range of information such as Government publication reports, sales of periodicals, buyer profiles, sales of retail outlets, evaluation of advertising campaigns, major economic, social and demographic trends, etc. Both, library sources and syndicate services can be immensely useful to the company. Owing to a variety of internal and external data sources, it becomes necessary for the company to device a proper database management. This involves identifying relevant data from a variety of sources, deciding on the extent of data and keeping the data in an easily available form. Data formats allow the retrieval of data easily and promptly. Display formats could range from simple adhoc retrieval to more formal displays. A company may have a graphic display package consisting of such options as time-series plots, bar and pie charts and scatter diagrams where the comparison of two measures is involved. Statistical analysis involves the performance of different statistical operations such as the calculation of averages, standard deviation and regression. Such calculations are helpful in understanding the relationship among marketing variables. This, in turn, brings out the underlying' marketing issues in sharp focus.
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Modelling is the last component of MDSS. Models are mathematical formulations. Marketing decisions can be tested against the model to ascertain what could be the possible outcome in a given situation.
$ Activity D;
"Market research is undertaken to guide managers in the analysis of marketing problems." Critically examine this statement and comment.
1.8 SUMMARY _________________________________________ _ _ _ _

Market research should be given prime importance in every organisation. This not only helps us to analyse our weakness but also gives first hand information about the latest trends going in the market. One has to learn from the reports and take appropriate actions on which strategies are to be adopted in the near future. Research should not be taken in a negative way but one has to learn from the mistakes and adopt the appropriate way for successful marketing. The choice of research activities in the organisation gives a solution to the exact method to be adopted for survey.
1.9 KEYWORDS _____________________ _ _ _ ^ _ _____________

Authentic: of undisputed origin, or original Entrepreneur: a person who undertakes a commercial venture
Emphasise: stress
Inherent: existing in something as an essential or permanent attribute
Pertinent: relevant
Perception: act or faulty of perceiving
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1.10 CASE STUDY Sony India Sony, a famous global brand, stepped into India in 1995, in the post liberalisation period. Within a couple of years, it started its manufacturing unit. The company makes its presence through Sony Entertainment Television, Sony Music and Sony India. The first two are comfortably placed while the third is expected to bring all the digital products. The plan was cleared by the government, but Sony India is facing problems, one of the major problems is the grey market. While Sony had targeted their sales around 1000 crores by the end of the century, it has to have a good understanding of India's economic, social and political environment. Sony India likes to develop itself as its parent company developed business units in US, Europe, and Asia (Singapore), yet it is a challenging task for them in India. Questions a) Will research, play an important role in the development of Sony India?
b)
Which will be the best research - hiring an outside agency or in-house research ?
c)
For considering an outside agency what factors should it consider while selecting the agency?
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Marketing Research
2.1
INTRODUCTION
With the increasing use of market research these days, it is being realised that market research is a complex task and has to be properly managed if optimum results are to be obtained. At the outset, the question arises as to what we understand by research management. Research management concentrates mainly on the processes, projects, personnel, finances and agencies engaged in research. Its prime responsibilities include monitoring of the research design, for which the study is carried out properly in line of the management objective. It also monitors that the presentation of the result to management is handled properly and that all these activities are administered within a controlled budget. It means that proper research organisation has to be set up to handle individual projects and task. It will be seen that research management includes a host of interrelated activities. The types of research projects to be undertaken, the selection of research personnel, financing of research manager should be the concerns of a research management. A research manager has to ensure that a suitable research design is developed and that the study is carried out on the right lines, according to a predetermined schedule and within the budget allocated for the purpose. As these activities are interrelated, if any one of them is not conducted properly, it will have an adverse impact on the other. For example, if a research project is not conducted according to the time schedule laid down, it will increase the cost and make it impossible to complete the project within the allocated funds and the time span.
A.
Importance of research management

Just as the marketing concept is useful in attaining the objective of integrated marketing, research management is relevant for making market research really useful. By superior management, various disjointed research techniques can be pulled together and coordinated so that market research can be made really effective. The marketing managers or the research managers who understand only techniques will be a failure such a study. They must understand how to put together all the efforts falling within his sphere of responsibility. No longer is market research an isolated, ivory-tower operation. It is an integrated whole, making a major contribution to marketing in its own right. An improved market research management firm can enjoy two major advantages, viz: (i) Market research will be more helpful to marketing management in decision-making.
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Unit 2
Application and Limitations
(ii) B.
Market research can be conducted more economically and more effectively.
Qualities of a market research manager The success of market research management depends to a large extent on the quality of leadership. A research manager must have some special qualities if he has to do justice to his job. Some qualities which he should possess will be innovative and always be prepared to look at any problem from a fresh perspective. confident of his skill and knowledge and prepared not only to accept new ideas but also to try them out. well-informed and up-to-date in his own area of specialisation. familiar with recent developments in particular industries, especially the problems faced by them in the marketing of their products. familiar with the recent trends in research techniques and should be prepared to absorb the latest knowledge as mush as possible. he should have considerable selling skills so that he can convince the management regarding the accuracy and soundness of the recommendations emerging from his research.
One of the most crucial decisions to be taken by management is whether market research should be undertaken and if so, what place is to be assigned to this function. This is an administrative decision which calls for a clear perspective on the part of top management. Even when a decision is taken in favour of the market research function, a related issue is what budget allocations are to be made to carry out market research efficiently. The organisation of market research activity also has to be considered so that management gets the maximum benefit from it. These are some of the main issues which must be given due consideration by the management. Some of these functions are discussed briefly below. C. Organising market research function First of all, the question arises as to how the market research function is to be organised within a firm. It should be noted that the organisational structure for this function will differ according to the type of agency which is handling it. Thus, a market research organisation in a manufacturing firm will be very different from that in a research or a
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Marketing Research
consultancy firm, as the requirements and emphasis on research will be different. A major difference between a manufacturing firm and a research firm is that whereas in the former, research being one of the several activities is a means to an end, in the latter, research is the only activity and is an end in itself. The research firm has to ensure that research must ultimately lead to profit otherwise it cannot survive. In contrast, a manufacturing firm does not aim at profit although it would expect that research will indirectly lead to increased profitability. Another point of difference between the two organisations is the degree of emphasis on the practical utility of market research. A manufacturer's firm would normally place greater emphasis on the market research findings in the day-to-day marketing of its products. But this need not be the case in a research firm as it is not engaged in marketing of any products. Coming to the organisation of research activity, several alternatives are open to a firm. For example, there could be a market research department or cell with a skeleton staff if the market research activity is not very important. Alternatively, the firm may have a well-developed department comprising a number of specialists as also the other supporting staff. These are the two extremes within which the market research organisation would vary. The specific organisation will depend on the requirement of each firm. It is worth emphasising that a firm, intending to set up an organisation to look after market research function, may not be in a position to set up the most suitable one in the very first attempt. As its management acquires experience in managing the research function, it goes on making improvements in its organisation. In course of time, such an approach will enable the firm to develop the most suitable organisation to manage its research function. A firm which has decided to introduce a market research function has to decide which of the three options that are normally available, should be selected: a. to set up a formalised market research department consisting of some full-time specialists whose main responsibility would be to carry out market research studies and report the findings to the management. to assign the market research responsibility to one or more line or staff executives on a part-time basis, who would have to undertake it in addition to the major responsibility.
b.
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Unit 2
c.
to assign the responsibility of undertaking market research to an outside individual or an organisation.
There are market research consultants who do research on behalf of the firm and are paid their consultancy fees for the same. Small firms prefer to adopt the second or third approach whereas medium and large-sized firms, which may have frequent marketing problems, prefer the first one. The latter would also involve the maximum financial commitment. In some firms, where a separate marketing information system exists, the market research function may form a part of such a system. In such cases, market research acts as one of the inputs to the marketing information system. Wherever market research is undertaken frequently, it is desirable to formalise this function and to integrate it not only with marketing activity but with the overall management of the organisation. It should be noted that if a firm decides to have a separate market research department, then sufficient freedom should be given to them to carry out its tasks. Many a time the departments are set up with high hopes and expectations but are not given the necessary finances and freedom. As a result, they are unable to do much for their firms. Market research departments should be encouraged to develop, carry out and analyse their research as they want. The top management must delegate necessary authority to the research personnel to enable them to carry out their work smoothly. Another aspect that is relevant is whether a large firm should have a centralised market research department or whether alternatively each division or operating unit should have its own research cell. The main advantage of the centralised market research department is that there will be more effective coordination of market research with marketing management. Effective control and supervision of research can also be ensured. On the other hand, if market research is undertaken by each division or operating unit, it will enable researchers to be more knowledgeable about divisional markets and their problems. In addition, such an approach will offer greater autonomy to divisions and operating units in their research activity which will ultimately be beneficial to the firm. Both these approaches are in vogue and it is difficult to say which is more popular. In this context, it is pertinent to note that the organisation of market research function need not remain static for all time to come. It should be dynamic and flexible so that it can be adapted to the changing requirements of the firm.
23
Marketing Research
If a company has decided to set up a separate market research department, it is very essential that it should be clear about its role in the overall organisation. The market research department should take up problems faced by the company, study them objectively and report its findings to the management. It should develop a plan, without which it will lack focus and utility to the management. Like any other plan, the key elements of a market research plan are the same, namely, objectives, policies, specific projects, resources required both in terms of manpower and budget and a time schedule for research projects. In identifying research projects, it is expected that clear priorities are laid down on the basis of which they can be taken up for investigation. These priorities should be matched by proper allocation of funds and manpower. The market research plan should be written out in sufficient details. Before it is finalised, it should be circulated amongst the concerned officials in the company. It should fit into the marketing plan of the company as it is an important input in it. Although it should be followed and implemented as far as possible, there should be an element of flexibility in it so that certain changes, if found necessary, can be made.
Âctivity A:
a) List any five qualities of a good research manager.
b)
Why is research regarded as useful to marketing management?
D.
Selection of market research

Many a time, companies do not set up market research departments as they do not have an adequate amount of research work to warrant a separate department. They prefer to hire the services of a market research consultant as and when they feel the need for research. In our country, the number of companies having their own market
24
Unit 2
research departments is extremely limited. Many 'buy' market research from outside. Such companies should know how to select a market research agency before sponsoring a research study.
E.
Selection of research agency

Why should one hire market research agency? If a firm does not have persons or well-versed market research department or cell, or has a market research dept. may sometimes find at a particular point of time that, it is fully engaged on certain other studies and, as such, it cannot take up an additional problem, for detailed investigation. In that case, it has to assign the study to an outside market research agency. The firm may find that an outside agency may complete the study faster, at a lower cost as well as with the laid down objective. As such it may decide to assign its sudy to an outside agency. Selections can be made from entities such as market research consultancy firms, advertising agencies, suppliers of syndicated services, etc. Now how does the firm go about choosing an outside market research agancy. In developed countries, there are a large number of such agencies which either undertake complete ad hoc research project or perform one or more specialised services such as drawing a proper sample of respondents, interviewing respondents, or processing data. In all those cases where it is necessary to hire outside research agancies, the market researcher must be able to evaluate such specialised services. The criteria for evaluating specialised agencies are as follows:
Criteria for hiring outside agencies Technical expertise

The market researcher should know who is to undertake the study and what is their proficiency in market research. The client firm may find that a research agency is good at basic studies but is not competent enough to undertake complex studies. Some research agencies are poorly staffed and as such they should be avoided.
Objectivity
The question of objectivity is very important. Outside agencies should be reputable for their objective approach in research projects.
Confidentiality
The client firm must ensure that the research agency maintains strict confidentiality regarding the project/study.
Marketing Research
Economic factors A client firm may invite research proposals from more than one agency. In such a case, it would choose the most economical agency. However, client firms should not overlook the fact that some agencies are very economical because the quality of their work is rather poor. It is not advisable to be economical at the cost of quality.
Timely submission of reports The client firm should enquire about the reputation of the research agency especially in relation to its timely submission of reports. Sometimes, outside agencies are quick in taking up assignments from clients but are not so prompt in carrying out the task.
Experience of the supplier The client firm should ascertain the standing of the agency. While general experience is very important, relevant and specific research experience is what should be looked for.
Reputation of the agency It is necessary to ensure that the agency has a good reputation. This consideration is important for lending credibility to the research findings. This is of special importance particularly when the client firm intends to use the study for creating an impact.
Since no single agency is likely to be strong on all these considerations, it is necessary that the client firm adopt a reasonable approach in this regard. It should ascertain which of the above criteria are crucial for its research project and then apply these criteria in selecting an agency from amongst those short-listed. In order to facilitate comparison amongst the agencies, the client firm should send the same study specifications to all of them for gathering research proposals and cost estimates. In our country, there are some organisations that take up research studies on behalf of their clients. Acomplete list of such organisations, the nature of research usually undertaken by them along with their strengths and limitations, is not yet available. Here, we are mainly concerned with research projects undertaken by research agencies at the instance of their clients. It may, however, be mentioned that some of these above mentioned organisations are well established and have been engaged in syndicated research and related spheres of activity for the past several years. They have professionally qualified staff, and they undertake sponsored research on widely diversified themes.
26
Marketing Research
Test marketing studies Corporate image studies Campaign evaluation - Media studies Opinion surveys Industrial market research
It may be mentioned that in our country, marketing research is still not well developed and there are only a few large marketing research agencies in the country. However, some of the studies carried out by these agencies were of pioneering nature, involving the development of appropriate concepts as well as sampling and measurement techniques. They have a large field set-up supported by full-time investigators in different parts of the country having several years of professional expertise. A company intending to buy marketing research may adopt one of the two courses. First, it may straightaway ask a marketing research agency to prepare a research proposal including an estimate of cost. Second, it may give some thought to its problem, spell it out and provide certain specifications according to which the concerned agency has to carry out the research. In this case the company will pay the agency its fees for carrying out the task as per its specifications.
Advantages of research proposals

There are some advantages of getting a research proposal from an outside consulting firm. There is conceptual thinking on the marketing problem referred to by the company. This is because the outsider's approach is not subject to any constraints which may be applicable within company. It enables the company to evaluate the research capability of the consulting firm and its dependability. When the company invites research proposals from more than one consulting firm, it can compare them with respect to the nature and extent of work involved, the quality of proposals, cost and time. This comparison will enable it to choose the most appropriate proposal. Research proposal is always desirable as it offers some sort of a commitment from the consultant to the company. In its absence, there may arise some misunderstanding and differences between the client and researcher regarding the specifications, time or price.
28
Unit 2
Last but not least, the research proposal once approved by the company, becomes a contract, binding both the parties. The company can then turn to other problems, since it is sure that the research will be taken care of by the consulting firm. Contents of research proposal It is very important to know the contents of a research proposal. While the style and format will differ from one consulting firm to another, the research proposal should invariably deal with some important aspects of research such as: A research proposal should give some background of the problem, indicating the manner in which it is to be investigated. Then, a clear statement of the problem needs to be given. Utmost clarity is required in defining the problem. A research proposal should specify the research methods to be used in the study. This part should contain information on the sample design and the sample size, the designing of the questionnaire, data collection procedure, and the processing and analysis of data. This is the most important part of a research proposal.
t A proposal should then indicate the form and content of the final research report. It should also indicate if the consulting firm will make a personal presentation of research findings. A proposal should indicate the time needed to carry out the task and also the cost. It is desirable that a broad time schedule covering major research operations be given. The consulting firm should also state the assumptions on which cost and time estimates have been worked out. A statement of this type will help avoid any misunderstanding that might otherwise arise.
JS$ Activity B:
a) List out five qualities required for a market research agency.
29
Marketing Research
b) What criteria should be considered while hiring an outside agency? Name any three.
c)
List the important Qualitative and Consumer Research.
d)
Could you list out on your own any new Qualitative Research which you have noticed in your curriculum?
2.2 RESEARCH ACTIVITIES IN LARGE COMPANIES _________________ Earlier, we have read the different types of research taken by the agencies, some of the common activities are listed by the type of research activities takenup by large companies which they do by themselves or hire an agency to do the study. Research activity Business economics and Corporate research 1. 2. 3. 4.
30
*Usage frequency
Short range forecast (<=1 year) Long range forecast Plant /Warehouse studies Acquisition studies
High High Average Average
Unit 2
5. 6. 7. 8. 9.
Pricing studies International trade MIS (Management Information System) Product mix studies Operation research
High Low Average Low Average Average
10. Company Employees
Sales and market research

1. Market Potential measurement High High High High Average Average Average Low Average
2. Market share analysis 3. Market characteristics 4. Sales analysis 5. Establishment of sales quota & territories 6. Physical Distribution alternatives 7. Test marketing 8. Consumer panel operations 9. Sales force effectivity studies Advertising research 1. Motivation research
Low Low Average
2. Copy research 3. Media research 4. Ad-effectiveness research 5. Sales Promotion studies 6. CompetitiveAdvertising
High
Average Average
Product/service research
1. New Product Acceptance
Mgh
3 1
Marketing Research
2. 3. 4. 5.
Testing existing Products Competitive Products Packaging Research Brand Loyalty Studies
High High High High
Corporate responsibility research

1. 2. 3. Ecological impact studies Low
Legal constraints (Advertising & Sales Promotion) Low Socio-Political studies Low
*Frequency of usage
High
Average
75%
51 -74%
Low
50%
Note: The usage of research pattern may vary based on consumer goods, industrial goods and services. 2.3 THE CLIENT/RESEARCHER INTERFACE ________________________
To get maximum benefit of research, the client and researcher must co-operate and collaborate with each other in the following ways. The person in-charge must give full and frank information on 1. 2. Precise problem (What the problem is?) Background and environment related to the problem (this is in regards to down in the sales due to brand image or pricing problem) Time and cost constraints (this is very important because the study is to be completed in the stipulated time. For example, if one has to decrease the prices effectively from the new financial year then the study is to be completed three months in advance prior to the union budget.) Limitations if any.
3.
4.
32
Unit 2
5. Data availability with the company (refers to the primary or secondary data) 6. Any situational change while the study is proceeded (may be the raw material prices have suddenly gone up or may have dropped) 2.4 RESEARCHER OBLIGATIONS TO A CLIENT _________ ,
1. Honest and clear reporting (the reports should not be fake and should have confidentiality) 2. Briefing regarding study limitations (what limitations have they faced while collecting the data) 3. Explanation of report conclusions and aiding client's application (the conclusion should be presented in a detailed presentation to the top management) 4. Demanding complete facts and expliciting the goals and problems faced (the problems faced by the researcher e.g. some of the respondents have not given the correct answers or may have given fake information). 5. Unwillingness to bow to client's biases, prejudices and pre-judgment. 2.5 DECISION MAKING AND RESEARCH INPUTS The Research Inputs depend upon the problems faced by the organisation. These cannot be same for each organisation for example, a firm has a good reputation in the market but their product is priced high, hence, he will be interested in survey of price factor and a part of that survey can be assigned for customer satisfaction in terms of quality and service of the product. On the basis of the results, he has got he can take decisions and adopt the right strategies for costing of his product or any additional services to be added in the same cost. 2.6 LIMITATIONS OF MARKET RESEARCH________________________ 1. Inexact science Market research is concerned with human beings for information, the most dynamic factor; hence probable trends can be identified. Moreover, in absence of proper problem definition, it becomes a data collection exercise.
33
Marketing Research
2.
Limitation of the researcher

Inexperienced, partially trained and educated researchers can hardly give quality work. Besides this the element of subjectivity mars the findings because of individual psyche and background.
3.
Expensive exercise Most of the organisations hire outside agencies to carry out extensive research, which requires a lot of time and money.
4.
Time lag There is a difference of time between the research and its implementation. In the mean time, the marketing dynamics may render it obsolete.
5.
Historic data Market research delves into the past data to predict the future, which has its own limitations.
6.
Interpretation of problems Certain problems are complex in nature and various elements are involved which cannot always be measured e.g., psychographic studies. Ascribing the result to specific factors becomes difficult in these cases.
7.
Environmental constraints Market Research is likely to reflect the environmental constraints it functions under.
8.
Fragmented v/s Holistic approach Due to financial, time and management constraints partial problems are studied which do not have a great impact, as it would have been with a holistic approach.
9.
Inadequate commitment Often organisations share partial facts and commitment towards research. Under isolated condition the results are erroneous. Also it is used as a window dressing tool to justify decisions already taken. (Pseudo research)
34
Marketing Research
Ten years had passed and the firms market share totally declined. For increase of the market share the company thought they should concentrate more on the image of the company from the scratch. Questions Q1. How will you help the firm to achieve its objective? Is a study required? Q2. In your opinion what type of study is required? If possible, outline a research proposal for the client. 2.10 SELF-ASSESSMENT QUESTIONS ________________________________ Q1. Q2. Q3. Q4. Q5. 'Market research is the corner stone of marketing.' Comment Market research helps in 'decision making'. Elaborate Client - researcher interface is a must for research? If yes, explain in detail. Market research has its application areas and limitations. Comment What is meant by research management?
36
Marketing Research
3.1
INTRODUCTION
When the researcher has analysed the problem and developed a research design including the questionnaire, he has to decide whether the information is to be collected from all the people comprising the population. In case the data to be collected from each member of the population of interest, it is known as the census survey. If the data is to be collected only from some members of the population, it is known as the sample survey. Thus, the researcher has to decide whether he wants to conduct a census or a sample survey to collect the data needed for his study. In this unit, we will discuss some basic aspects of sampling. As we are concerned with the practical aspects of sampling rather than the theoretical considerations, it would be interesting to know why we should use sampling. 3.2 WHAT IS SAMPLING? __________________________________________ Sampling is a familiar idea with all of us as it frequently occurs in the course of our daily events. Judgments are arrived at the entire number of items (population) on the basis of analysis of a limited number of items (sample) e.g. a housewife tasting a spoonful of curry to check the flavour and readiness of the vegetables, a fruit-seller slicing a fruit to show the ripeness of the fruit to his customers, an executive doing a test drive of a car before purchasing it. These are examples of sampling for the personal decision-making done in a haphazard manner and with substantial risk of the sampling error. However, research requires sampling to be done in a scientific manner for the validity and reliability of results that have far reaching effects. 3.3 REASONS FOR SAMPLING _____________________________________ 1. Decision makers have a limited time frame to take a decision. It is impossible to collect information on the entire population during such a period, hence sampling is used. The budgetary constraints may prohibit the entire population study. If the universe/population size is large, greater is the chance of using sampling. Sampling is used when measuring a particular element of the product would render them useless after examination. For example, testing of a photographic film, the useful life of a fuse, etc.
2. 3. 4.
40
Unit 3
Sampling
5. When an approximate idea serves the purpose rather than exact numbers. 6. The impossibility of finding all the population whereof e.g. plants. 3.4 ESTIMATING AND TESTING OF HYPOTHESIS
This stage involves the distinguishing of two objectives of sample surveys: a) Population parameters b) Testing a hypothesis Estimation of a parameter refers to a situation in which the presence of a given population is to be estimated. For example, one may be interested in the annual expenditure incurred on tea drinkers or the proportion of workers working overtime in an industrial unit. In the first example, the parameter refers to the average tea drinkers and in the second example, the proportion of employees working overtime. Now to estimate a parameter, first a sample is chosen, the elements in the sample are contacted and the necessary information is collected from them. From the information gathered, the statistics (average or proportion) is calculated. This statistic is used as an estimate of the population parameter. The second objective of sample surveys may be to test a hypothesis involving a comparison of two or more numerical values. For example, if one would like to test the hypothesis that at least 60 % of households have an internet connection in a town. A sample survey is undertaken and the relevant survey data reveals that the overall percentage is 55. The question now is whether these two percentages are significantly different. 3.5 DEFINITION AND MANAGERIAL OBJECTIVE OF SAMPLING Sampling should provide the following benchmarks: 1. The data is representative of the population concerned. 2. Sufficient occurrence in a sample should exist to provide consistent results. 3. Using research resources as efficiently as time requirements permit.
41
Marketing Research
Definition of Sampling terms
-*>>.:.
>-<
Element: Element the unit about which information is collected for analysis. Population/Universe: Population / Universe is an aggregation of elements over a period of time, space extent and sampling unit. For example, female of 18 years (elements) living in hostels (unit) in Pune (extent) in the year 2003 (time). Sampling Unit: Elements) available for selection in some stage of the sampling process. Survey Population: Is the aggregation of elements from which the sample is actually chosen. Census : Census is the complete enumeration of population or groups at a point of 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. Sample: A part of a population, or a subset from a set of units, which is provided by some process or other, usually by a deliberate selection with the object of investigating the properties of the parent population or set. 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. 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
42
Unit 3
Sampling
be selected in the first instance; and then more detailed lists or maps be constructed by the compilation of the available information or by direct observation only of the first-stage units actually selected. Sampling Error: Sampling error is 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.
Five steps in Sample Planning

1. Define the target population 2. Establish a "frame" of that population 3. Choose the method of selecting the sample unit 4. Determine the sample size 5. Selection of the actual (sample) members 1) Defining the Target Population: Sampling is intended to gain information about a population. So it is critical at the outset to identify the population clearly and accurately. Often target population identification is ignored as it appears obvious and non-controversial, but attention to selection pays off.
Guidelines for identification of the target population

1. Well-defined research objectives lead to clear target population definition as well. Consider alternative, reasonable, target population definitions If the research objectives is to learn the market response to the marketing programme then detailed knowledge about the market is essential. Otherwise the population definition will unnecessarily become broad. Consider the appropriate sampling unit e.g. the individual / family as a unit.
2. 3.
4.
43
Marketing Research
5. 6.
Specifications for exclusions in target population should be clear. Over-definition of population makes the research costly and time consuming. For example, all working wives between the age group of 25 - 40 years with an income of Rs. 1 0,000 or more. Consider the convenience: Preference should be given to a convenient sample if it suits the research purpose. For example, a study on noise pollution. Respondents will be best chosen from a township adjoining an industrial area. Establish the framework of population : The sampling frame is usually a list of population members used to obtain a sample. These boundaries could be geographic or any distinguishable feature. For physical sciences, boundaries may not be significant but for marketing they are a must. Choose the method of selecting sampling unit : Sampling units may be selected in a number of ways. It depends on the nature of the research, time and cost constraints, research objectives and the expertise of the interviewer. Determine the sample size : In order to make the survey, we have to determine the sample size. For example, if one has to conduct the survey of teenagers smoking cigarettes in a particular area, then how much sample size is to be considered for giving the proper result, whether to choose 50 or 70 or 100 etc. Selection of the actual sample member : As discussed above in point 4, out of the 70 samples selected, which samples should be taken for hypothesis. The entire sample cannot be taken and many of them may give the wrong interpretation. Activity A ;
7.
2)
3)
4)
5)
a)
What do you understand by the Population Elements Frame
following?
44
Unit 3
Sampling
b) What are the various steps involved in the sampling process? Give any three important steps.
Sampling Design
Sample Design
Non-Probability Samples
Convenience Snowball Quota Judgment 1. to
Probability Samples
Simple Random Systematic Area Stratified
Non-Probability samples: These are in which specific members are selected in a non-random fashion as per convenience or due to a deliberate choice as per plan. a) Convenience sampling: The researcher chooses respondents on the basis of convenience or accessibility. It is used for exploratory research.
b) Snowball sampling: In this method, the initial sample size is selected by using probability methods but additional units are obtained through the information supplied by initial units (referrals). This technique is used to locate sampling units which have similar characteristics but are difficult to find. The referral process may bring an element of bias in selection. c) Judgement sampling: This method is of sampling by opinion. The researcher who is acquainted with the population may decide arbitrarily, as per his judgement, the units which represent the parameter of the study. Another form of judgemental sampling is statistical judgement. In this method, the selection criterion is specified, data on these factors are scrutinised and the elements meeting these specifications are chosen for the same. The choice is (purposive) deliberate not random. This method is valid when adequate data is available for the whole population parameters and the individual elements in it. 45
Marketing Research
d) Quota control sampling: Is judgemental sampling with the constraint that the sample includes minimum number from each specified subgroup in the population. Demographic data such as geography, location, age, sex, education and income group are used as qualifying parameters. The quota control has potential weaknesses like i Field workers may be unscrupulous in finding the exact sampling units and numbers for the survey. Population with listed characteristics may be hard to identify. Data available for classification may be obsolete and incorrect. For example, population census.
ii iii.
Quota controls are used for national panel studies. A panel is a semi permanent sample whose members may be included repetitively for successive studies. 2. Probability samples: In Probability samples, each population has a known chance of being selected for inclusion in the study.
a)
Simple random sampling is an approach in which each element has equal probability of being selected. Such numbers may be selected through random number tables or generated computer. For example, a lottery draw, dice. Systematic sampling involves spreading the sample through the entire list of population following a regular pattern. e.g. Total population Random unit Total No. of winners = 100 customers = Every 1
b)
Otn'customer to get a prize 10
c)
Stratified sampling : In stratified sampling, the population is divided into subgroups (strata) within the sample framework and random samples are drawn to improve the efficiency of the sampling plan and its reliability with a smaller sample size. Sample sizes tend to be inversely proportional to the cost of the sampling. Smaller the cost, larger will be the sample size. Cluster /Area sampling: In cluster sampling the population is divided into subgroups called clusters. A random sample of the subgroups is selected and all
d)
tit
16-
Unit 3
Sampling
members of the subgroups become a part of the sample. This method is useful when subgroups can be identified which are representative of the whole population. JS$ Activity B; Give one example of each of the following sample designs: Cluster sampling Stratified sampling Simple random sampling Quota sampling Judgement sampling
3.6 PROBLEMS ASSOCIATED WITH SAMPLING ______________________ The accuracy and reliability of sampling data are affected by two different types of errors, i.e. sampling error and non-sampling error. Sampling Error: Sampling error occurs when the selected samples are not representative of the population. Regardless of the care taken in sampling, some amount of sampling error exists. It is the result of chance and subject to the law of probability. A sampling error may be reduced by increasing the size of the sample. This is applicable to probability sampling only. Non-Sampling Errors: The name suggests all kind of errors except sampling errors. These errorsjnclude, respondents due to poor recall, inaccurate memory, bias, 2. Deceit by respondents when they do not want to admit lack of knowledge, social status issues, taboos, etc.
47
Marketing Research
3.
Poor sampling design, e.g. due to wrong addresses, Unfinished interviews due to
inaccessible respondents instructions, etc.
"
4.
length/boringness/tocipersonal nature of 5. 6. Recording errors, coding and editir
the interview.
Misinterpretation due to ambiguous wording or lack of proper instructions.
Lipstein offers rules for minimising non-sampling errors in a survey. They are as follows:
1. 2. 3. 4. 5. 6. 7. Sample survey should be as easy to execute as possible. Use the smallest sample consistent with the research objectives. Restrict the questionnaire to the data essential to the study. Pre-test the questionnaire to check respondent fatigue. Keep the interviewer and the respondent involved. Don't ask consumers the questions which they really cannot answer. Don't ask the interviewer to do the impossible. It encourages cheating.
3.7
NON-RESPONSE ISSUES IN SAMPLING
Non-response can be broadly classified into two problem area
Low response rates

Refusal Inaccessibility ,
Refusal can be minimised by 1. 2.
Prior notification on the imminent survey rather than taking the respondent by surprise. Motivating the respondents to participate in the survey by increasing their interest and involvement. Monetary and non-monetary incentives may be provided. For example, coupons, pens, books, etc.
3.
48
Umt 3
Sampling
4. 5. 6.
Questionnaire design and administration should be brief, clear, low on fatigue quotient and should be able to cover sensitive issues in a non-offending manner. Follow up / reminder should be given to respondents after initial contact to submit the completed forms. Personalisation of letters increases the response rate.
In accessibility / not at home phenomenon 1. 2. Prior appointments should be made. Periodic follow up/call back should be attempted to get a response from the respondent.
Determining the sample size-adhoc methods 1. Rules of Thumb: The researcher suggests that the sample should be large enough so that when it is divided into groups, each group will have a minimum sample size of 100 or more. Budget constraint: The sample size will be determined by the total expenditure one can incur for the process. However, it cannot guarantee the adequacy of the sample size.
2.
Total money to be spent N = Cost / unit coverage 3. Comparable studies : Another approach is to find similar studies and use their sample sizes as a guide.
3.8 FACTORS DETERMINING THE SAMPLE SIZE ___________________ 1. 2. 3. 4. Number of groups and subgroups that will be analysed. Value of information and study in general and the level of accuracy required. Cost of the sample. A cost benefit analysis must be done. Variability of the population. Greater the variance, larger will be the sample size required.
49
Unit 3
\ Sampling
Since the magnitude of operations involved in a sample survey is small, both the execution of the field work and the analysis of the results can be carried out speedily.
j Sampling results in a greater economy of effort as a relatively small staff is required to I carry out the survey and to tabulate and process the survey data.
>
f A sample survey enables the researcher to collect more detailed information than would otherwise be possible in a census survey. Also, information of a more specialised type can be collected, which would not be possible in a census survey on account of the availability of a small number of specialists. Since the scale of operations involved in a sample survey is small, the quality of the interviewing, supervision and other related activities can be better than the quality in a census survey.
Limitations of Sampling
a) When the information is needed on every unit in the population such as individuals, dwelling units or business establishments, a sample survey cannot be of much help for it fails to provide information on individual count. b) Sampling gives rise to certain errors. If these errors are too large, the results of the sample survey will be of extremely limited use. c) In a census survey it may be easy to check the omissions of certain units in view of complete coverage, this is not so in the case of a sample survey.
3.10 THE SAMPLING PROCESS
_________________________
In this unit, we have learnt about 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. Following are the steps involved in this process. 1. Define population : It is the aggregate of all the elements defined prior to the .1$ selection of the sample. It is necessary to define population in terms of Elements Sampling units Area Tirneframe 51
0{iit 3
Sampling
Since the magnitude of operations involved in a sample survey is small, both the execution of the field work and the analysis of the results can be carried out speedily. Sampling results in a greater economy of effort as a relatively small staff is required to carry out the survey and to tabulate and process the survey data. A sample survey enables the researcher to collect more detailed information than would otherwise be possible in a census survey. Also, information of a more specialised type can be collected, which would not be possible in a census survey on account of the availability of a small number of specialists. Since the scale of operations involved in a sample survey is small, the quality of the interviewing, supervision and other related activities can be better than the quality in a census survey.
Limitations of Sampling
a) When the information is needed on every unit in the population such as individuals, dwelling units or business establishments, a sample survey cannot be of much help for it fails to provide information on individual count. b) Sampling gives rise to certain errors. If these errors are too large, the results of the sample survey will be of extremely limited use. c) In a census survey it may be easy to check the omissions of certain units in view of complete coverage, this is not so in the case of a sample survey.
3.10 THE SAMPLING PROCESS _____________________________ _ ^

In this unit, we have learnt about 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. Following are the steps involved in this process. 1. Define population : It is the aggregate of all the elements defined prior to the selection of the sample. It is necessary to define population in terms of Elements Sampling units Area Timeframe
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Let us consider an example. If you were to conduct a survey on the consumption of Taj Mahal tea in the state of Maharashtra, then the specifications might be as follows: Element: Housewives Sampling units: Households/housewives Area: State of Maharashtra Time frame: April 1 to 15,2006
If a launching of a new consumer appliance/product is done, then the population will change. It will now become Element: Product (Washing Machine) Sampling units: Retail outlets, super markets Area: Mumbai and the suburbs Time frame: April 7- 30,2006 . , I
It may be emphasised that all these four specifications must be contained in the m designated population. Omission of any of them would render the definition of population incomplete. 2. Identify 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 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 defect. 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 leads to several questions

What are the criteria for a suitable frame? Does it adequately cover the population to be surveyed?
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Sampling
How complete is the frame? Is every unit that should be included represented? Is it accurate? Is the information about each individual unit correct? Does the frame as a whole contain units which no longer exist? Is there any duplication? If so, then the probability of selection is disturbed as a unit can enter the sample more than once. 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 a change is taking place continuously. 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 market 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. 3. The Sampling unit: The sampling unit is the basic unit containing the elements of 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 directly have access to such a sample. However, it might be easier to select households as the sampling unit and then interview housewives in each of the selected households. 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
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sampling unit, both, in personal interviews and in telephonic interviews. Thus, in personal interviews, a pertinent question isof the several persons in a household, who should be interviewed? If interviews are held during office timings when the heads of families and other employed persons are away, interviewing would under-represent the 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. 4. 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 twoprobability and non-probability sample is to be chosen. Probability samples are also known as random samples and non-probability samples are known as non-random samples. In case of a probability sample, the probability or chance of every unit in the population being included 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 judgement 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 judgement 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 probabiliry 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 the 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 54
Unit 3
Sampling
compared to the offset being relatively cheap and convenient, his choice should be in favour of non-probability sampling. There are various types of sample designs which can be covered under the two broad groups, which are, a) Random or probability samples
b) Non-random or non-probability samples 5. Determine the sample size: In other words, one has to decide how many elements of the target population are to be chosen. 6. 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.
.*
7. Selection of 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.
JS$ Activity D;
You have been assigned to do a study on a brand which is fast losing its high profile image. How will you design the sampling design in order to get the desired results to be achieved for your client? At least design four major ones to which you will give prime importance.
Characteristics of a Good Sample Design
A good sample design requires the balancing of four broad criteria: 55
Marketing Research
Goal orientation Measurability Practicality Economy
Goal orientation
Goal orientation 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, and 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 that the final selection in the field is not different from the original sample design. Practicality also refers to the simplicity of the design, i.e. it should be capable of being understood and followed in the actual operation of the field work.
Economy
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 with the 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
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Sampling
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.
3.11 SUMMARY _______________________________________________

In this unit, we have seen how sampling plays an important role in a study, or rather, that sampling designs play a crucial role in any study. One should be able to determine the correct size of the sampling, because in the study if the sample answers are wrong, the entire results are going to be affected. This results in the objective of the study not being in the line of the objectives laid down.
3.12 KEY WORDS ______________________________________________

Hypothesis: proposition or supposition made as the basis for reasoning or investigation Enumeration: specify or count Probability: being probable. Likelihood of something happening Orientation: person's attitude
3.13 CASE STUDY _____________________________________________ Hotel industry

A three-star hotel located in Mumbai has been experiencing a decline in its occupancy during the past one year. The management has recently reviewed the problem and is seriously considering attracting business executives and also providing adequate facilities for holding business conferences, workshops, etc. Since this would involve some renovation of the existing building in addition to new furniture and equipment, the management wants to be cautious in undertaking such an expenditure. Since its inception several years ago, the hotel has been maintaining a complete record of its guests. When a person visits the hotel for the first time, details such as his name, age, sex, permanent address, purpose of visit and duration of stay along with dates are entered on a card. All subsequent visits along with the duration of stay are dated and recorded on the same card.
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4.1
INTRODUCTION
A questionnaire is an instrument for seeking and recording data, either for interviewing or for observation purposes as required for a meaningful measurement of data. All three media of communication with respondents i.e. personal, telephone and mail, rely on data collection forms known as questionnaire. Definition A questionnaire is simply a formalised schedule or a series of questions, written or verbal, to obtain and record specified and relevant information from respondents with tolerable accuracy and completeness. 4.2 1. 2. 3. 4. 5. 6. 7. FUNCTIONS AND CLASSIFICATION OF A QUESTIONNAIRE It must translate information needs into a set of questions that the respondents can and will answer. It must motivate respondent to cooperate and complete the interview and trust that confidentiality is ensured. It must minimize response error. Response should be stimulated through greater introspection, memory plumbing and record references. To provide a system for recording, classifying and verifying data as per need. To ensure consistency, if there are multiple interviewers. Give instructions on what is wanted and the manner of responding. It must facilitate data processing and analysis requirements.
Classification of Questionnaire Degree of formality: Structured or Unstructured Research Objective: Disguised or non disgui sed Communication Method Personal Mail Telephonic Surveys interviews Diary Panels
Unit 4
Questionnaire - Design Development
Interviewer Administered A.
Self Administered
Questionnaire design
In the research process, the design of the questionnaire is highly iterative, since it is an integral part of research design. The objective is to seek consistency with research objectives, budget, methods of data collection, data analysis and the respondents' willingness to answer questions on the subject. Under these constraints, a researcher practices the art of questionnaire writing for a good survey result. Success comes with experience and empathising with the respondent and a clear understanding of the research objectives. The process of designing has been shown as sequenced steps. 4.3 FLOW CHART FOR QUESTIONNAIRE DESIGN 1. Determine the specific data to be sought Determine interviewing process Evaluate the question content Determine the response format Determine the wordings of the questions Determine the questionnaire structure Determine the physical characteristics of the form Eliminate bugs by pre-testing Revision Final draft Determine the specific data to be sought This step is self-evident and a prerequisite to designing effective questionnaire. One must determine what exactly needs to be measured. Three key factors that need to be defined are as follows: Statement of research purpose List of information to be measured (product, audience)
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Draft of analysis plan (statistical methods to be used)
Omission of these steps can lead to inappropriate data collection and problems in the analysis. 2. Determine the interviewing process A problem confronting a researcher is in determining the type of questionnaire in relation to the communication media and administration. They in turn depend on the type of information sought and the respondent. Personal Interview: 'Interviewer Administered' surveys much anticipate the needs of the 'interviewer' and the 'interviewee' must. The colour code for the interviewer and respondent instructions must be different so that the interviewer does not read instructions meant for them. The question intent and wording should be clear. Multiple-choice questions should be aided with visual aid for the respondent's help. Flexibility should be adopted to meet specific needs of the respondent. Care should be taken to prevent respondent fatigue and di si nterest. 'Self-Administered' personal surveys are those in which the respondent is given the form by the interviewer to fill themselves. They may be sent through post also. They are called mail surveys then. In such questionnaires, statement to invite co-operation and instructions for filling the form must be written. Clarity of questions is essential. The questionnaire must be visually attractive and easy from a respondent's point of view. In case of a mail survey a prepaid envelope for reply increases the chance of the return of form from the respondents. Informal Interview is an unstructured format of data collection. It is also called an in-depth interview. The interviewer provides the topic for discussion and encourages the respondent to give complete information as per his/her knowledge. The interviewer may stimulate the discussion/interview for a more orderly recording. Telephone interviews, these interviews depend on the verbal clues only, hence rating questions must be avoided. The questionnaire should be short, simple and not time consuming. The pace of the conversation should be such that can hold the attention of the respondent on the telephone. 3. Evaluate the question content A clear statement of problem definition and objectives of study are necessary for the guidance of the project and taking a decision of question content. A good questionnaire can provide meaningful data and needs to be evaluated on three criterion.
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Does the respondent understand the question? Does he/she have necessary information to answer the question? Will the respondent provide the necessary information?
To decide the individual question content the researcher must ask himself: If the question is necessary? Are several questions needed instead of one to obtain the required information? Is the question ambiguous, double-barreled or confusing? Does it have multiple answers?
e.g. In which departmental stores do you usually shop? Usually - The time frame of usual may be different for different individuals. Which shops are Departmental stores? Is one talking of stores in the city, in the locality or the entire universe?
Does the respondent have necessary information to answer the question? Two reasons why respondents may give inadequate answers could be because of lack of knowledge or lack of recall. The questions then need to be asked are as follows: ' Is the respondent informed ? e.g. asking a housewife on insurance policy premium. If the person designate in the household is asked this question then the chances for accuracy of response are higher. Questions on issues on which no factual knowledge exists? e.g. will the prices of gold rise? Only experts can give an estimated guesswork to such questions. What is the level of recall required to answer the question? e.g. what menu for food did you order last month in this hotel? Can the respondent be articulate? Sometimes the respondents are not able to express themselves, especially on open-ended questions.
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The respondent may be unwilling to admit his/her lack of knowledge. Omissions, telescoping and the creation of events may take place.
Will the respondent provide the information?

Sometimes even if the respondent can answer the questions accurately he/she refuses to answer the questions : If it invades their privacy, e.g. questions on sex, income levels. Are socially sensitive issues, e.g. consumption of alcohol. If time and effort required to provide the information is too much. For example, name of the product, brand, size, model number, cash/credit purchase, retailer's name, etc. If the respondent sees no legitimate purpose. For example, a company wanting information on income, occupation etc. Certain questions seem appropriate in certain contexts and not otherwise, for example, a medical association asking about hygiene factors is acceptable but a fast food centre asking questions on hygiene may been inappropriate to a respondent. Fears and suspicions produce non-response error. Personal prestige or social acceptability cause exaggeration errors. For example, have you visited Shanwarwada? Oi
For information on sensitive issues

Third person technique may be used. Response categories can be provided instead of specific figures. For example, income Rs.10000/Such issues can be placed at the end of the questionnaire. The question can be hidden among topics the respondent is willing to answer. The question can be prefaced with a statement of general interest.
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4.
Decide on the Question Response Format

Once the issue of content has been addressed the next step is to decide on the type of questions/response to use. Questions can be classified into two groups:-
4.4
TYPES OF QUESTIONS Open Ended

1 2 3 Free response Probing Projective techniques
Close Ended
Dichotomous Ranking Checklist Multiple choice Scales
3(a) Association techniques 3(b) Construction techniques 3(c) Completion techniques
Open ended
In this type of question the response is unstructured and spontaneous without a prompting aid. It reflects that responses exist in a conscious state of mind. There may be three subtypes of open-ended questions. Free response Probing Projective techniques
1.
Free response
For example, what has been your shopping experience at 'Shopper's Stop' ? (Free response) What has been your experience of the sales promotion schemes at' Shopper' s Stop' ? (Free response directed to one aspect) What has been your shopping experience at 'Shopper's Stop'? (Answer by respondent)
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Un
2.
Probing In the above questionnaire, can we ask anything else? (Probing) Advantages Open-ended questions help obtain unanticipated, real views of the respondent. They help in exploratory research and opening up during initial questions. They help develop a rapport with the respondent and get real 'consumer words'.
Disadvantages 3. Create semantic problems. They are difficult to record, tabulate and analyse. Create potential interviewer bias. Higher weightage is given to people who are more educated, exposed and articulate. Are a time consuming and costly exercise.
Projective technique Collecting data through this approach consists of presenting relatively ambiguous stimulus such as words, pictures, etc. and asking the respondent to describe or verbalise them by what enters into their mind while they think about the object. The responses are then analysed and interpreted according to a predetermined psychological framework. It is presumed that respondents display true feelings, motives and personality. Further, these can be sub grouped as (a) Association (b) Construction and (c) Completion techniques. a) Association technique Respondent is shown a series of words and is asked to respond to each with the first word that strikes his mind. For example, words 'Black and Shiny,' Respondent: Sunsilk Trade names, brand names, promotional slogans, etc. have been studied with this technique.
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b)
Construction technique
Respondents are required to view an ambiguous stimulus situation and are asked to respond to it. For example, a picture showing a woman shopping for cooking oil at a general store. The respondents are then asked to tell the story from that picture. The researcher draws conclusions about purchasing habits and preferences from the response.
c)
Completion technique
Respondents are provided with incomplete sentences which they can complete as they choose to do. Groundnut oil is... A cooking oil should have...
In all these techniques the advantages and disadvantages are as follows:
Advantages
Enables information on subjects not approachable through questioning. Provides insights for hypothesis building at the exploratory stage of research.
Disadvantages
Experienced and highly trained interviewers are required to conduct such techniques. Interpretation of results is highly subjective. Sample population may not be representative of the sampling universe.
Close ended
The question and responses are structured and closed. There are various types of close-ended questions. 1. Dichotomous 2. Ranking 3. 5. Checklist Scales 4. Multiple choices
1.
Dichotomous question
This type allows response in affirmative or negative. The situation of 'don't know' cannot be recorded.
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1.
Do you like this book?
Ans.
Yes
No
Such questions may be used for qualifying a person to answer further questions. For example, do you like this book Yes No
Go to question 2 Go to question 5
Advantages
t Easy to administer, tabulate, edit and analyse. Provide a lead to questions that may require greater details. Easy to answer.
LOW interviewer
bias due to specific response.
Disadvantages
9 Detailed information not possible. Forces respondent to make a choice though they may not think it an appropriate response. Difficulty in wording properly which leads to 'first phrase', or 'central phrase' bias.
For example, do you use Lifebuoy liquid or Lifebuoy soap?
2.
Ranking Questions
Involves a respondent ranking comparatively the items listed. Several alternatives have to be compared with each other at the same time. For example, please rank the most important feature as number 1 and that of least importance to you as number 4. I prefer shopping at 'Shopping Glory' because it has: Low prices Free home delivery Convenient location Range of products _______________ _^______________ _______________ _______________
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Advantages Relatively easy to ask and tabulate. Respondents are generally familiar with this method. Response can be measured quickly. . *
Disadvantages 3. The number of items that can be ranked are limited (5-6 items).
It assumes that the respondent has complete knowledge about each item. It does not indicate the degree of preference intervals between ranks. * ' '
Checklist
In a checklist form, a person checks one or more of responses that are listed for answers. They are useful for factual data, demographic classification, etc. Care should be taken to list major categories as respondents fail to write their response for others. For example, in your home which of the domestic appliances are used? (Check as many as applicable) Microwave oven Automatic washing machine Food processor Telephone answering machine Dishwasher 4. Multiple-choice answers These questions list more than two answers for the choice of response. The respondent selects the response that approximates best to his/her own view or can opt for don't know/ can't say/ others. Please specify option. For example, which are the benefits ofAmulMilk? <-< 1. Homogenised '
Marketing Research
2. 3. 4. 5. 6. 7.
Pasteurised Hygienically packed Low price Balanced fat None of the above Others
Advantages
1. They are quick and easy to ask
. . . . - , 2. 3.
4.
' !
Editing, tabulation and analysis is faster. Low on interviewer bias.

Overcomes problems of open-ended questions.
Disadvantages
1. 2. 3. Listing of all possible mutually exclusive alternatives is difficult. Order of responses may create position bias. Alternate responses may hold a different meaning for the
respondent.
Activity A;
Tick the odd one out a. b. c. d. Free response Probing Projective techniques Dichotomous
Unit 4
4.5
CHOICE OF SURVEY METHODS
As there are four methods by which data can be collected in a survey, it may be worthwhile to know their relative strengths and weaknesses. The methods in question are - personal survey, mail survey, telephone survey and computer survey. However, as computers in interviewing respondents are not commonly used as yet in our country, the comparison will be confined to the three methods, giving a comparative idea of three survey methods on selected criteria. Table 4.1: Comparison of survey methods Criteria Response rate Time Required Cost Sample Control Supervision of Field work Quantity of info Quality of info Versatility Personal Survey Fair Slow High Good Mail Survey Poor Slow Low Poor Not applicable Limited Fair Fair Telephone Survey Good Fast Low Excellent
Fair Good Good Excellent
Excellent Limited Excellent Good
It is evident from the table above that none of these methods is perfect and free from all the limitations. A method may be good or excellent in case of a few criteria, but in respect of other criteria, its rating may be low. The market researcher has to exercise great care in choosing the method on the basis of a couple of criteria or considerations which he thinks are important in the survey. For example, when a large quantity of information needs to be collected through a survey, telephone and mail survey methods will be inappropriate. The choice should obviously be in favour of personal survey. In contrast, if a short survey is to be conducted in a limited time, telephone survey should have the preference. There is, of course, an inherent limitation of telephone survey in our country, as telephones are not yet very common in cities, not to mention of rural areas and the most importantly people do not know how to use the telephones.
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A.
How to use the correct wording in the question?
The questionnaire is an interface between the researcher and the respondent. The respondent will either read or hear the questionnaire. Improper wording can be a barrier in meaningful data collection. Some principles to choosing the appropriate wording are: 1. 2. 3. 4. Use simple language and ordinary words to meet the vocabulary level of the respondent. For example, say fever instead of Pyrexia. Avoid technical jargons and abbreviated forms. For example, LPG,MNC Avoid ambiguous words like usually, normally, frequently, often, regularly, sometimes, occasionally, etc. Be as specific as possible. For example, If somebody asks what kind of car do you own? The answer could be on brand, model, body or type. 5. Avoid double barreled questions: a question that calls for several responses at once is called a double barreled question. These type of questions should be avoided. For example, do you use Dettol liquid and Dettol plaster? Avoid questions for which the respondent has to make generalisations or guess estimates. For example, TV programmes have you watched for the past year? Avoid leading questions, which give a clue and bias the respondent on what the answer should be. For example, do you think that the company has a poor aftersales service record? Avoid implicit assumptions. Use positive and negative sentences to balance the image.
6. 7.
8. 9.
10. Avoid loaded questions. A loaded question has more subtle bias than a leading question. Loading could result because of an emotionally toned word for example, 'oilmonopoly', 'luxury items' etc. 11. Avoid implicit alternatives that cannot be explicitly expressed in options. 12. Avoid lengthy questions.
Unit 4 Questionnaire - Design Development
11
,
B.
How to determine the questionnaire structure?
Once a set of questions has been decided upon, they need to be put in a form that facilitates administration - which questions should come first and which ones should fall later. Thus, arises the issue of sequencing in terms of breadth/generality. The general questions come first and the more specific questions for the later part of the interview. This is called the funnel approach or the flowerpot sequences. 1. The opening questions must be simple, interesting and non-threatening so that the rapport is built with the respondent. For example, dichotomous questions. Qualifying questions serve as opening questions to find out whether the person is the right type to provide the information. Questions should be asked in a logical sequence. Warm up questions direct thinking and memory. Thus the difficult, sensitive and complex questions should be placed in the later part of the sequence. General questions should precede specific questions. Branching questions must cover all possible contingencies.
2.
3. 4.
5. 6.
4.6 CLOSE ENDED AND OPEN ENDED QUESTIONS _________________ Questions can be classified in various ways. One way of classification is as follows: Open-ended questions Close-ended questions
An open-ended or simply 'open' or 'free answer' question gives the respondent complete freedom to decide the form, length and detail of the answer. Open questions are preferred when the researcher is interested in knowing what is uppermost in the mind of the respondent. However, open questions pose certain problems. At the time of the actual interview, it becomes difficult for the interviewer to note down the respondent's answer verbatim. If the interviewer has to take down the answer all by himself without any mechanical aid, he is quite likely to miss some vital information contained in the respondent's answer. Further, if several interviewers are conducting interviews and each one is recording the answers to opinion questions according to his understanding, and in his own way, then there is likely to be an element of bias in the recorded answers. Another difficulty with
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respect to open questions is that it is extremely difficult to compress lengthy answers in a meaningful manner. Such answers may be good qualitatively but their quantification becomes extremely difficult, if not impossible. The dichotomous question has only two answers in the form 'yes' or 'no', 'true' or 'false', 'use' or 'do not use', etc. An example of a dichotomous question is: Do you use Colgate in any way? Yes__________ No !
There cannot be a third answer. However, in some cases, there may be a third answer which may come from those who do not want to take a definite stand one way or the other. For example, take the following question: Do you like to watch Television? Yes ..- r
. ___ No __________ Neither like nor dislike _____________
The third alternative may be included so as to provide for those respondents who do not have a positive preference or aversion to movies. It may be pointed out that dichotomous questions are most convenient or least bothersome to respondents, who have simply to indicate their choice from the two possible answers. As such, these questions require the minimum possible time of the respondents. Also, answers to such questions are easy to edit, tabulate and interpret. In the case of multiple-choice questions, the respondent is offered two or more choices. The market researcher exhausts all the possible choices and the respondent has to indicate which one is applicable in his case. For example, the following is a multiple-choice question: Which of the following brand/brands do you use for washing clothes? Rin _____ , Ariel ______ , Surf ______ , Super 777 Bar ______ , Wheel Any other (please specify) Obviously, the respondent is likely to take more time to answer a multiple-choice question as compared to a dichotomous one. Also, more time is required in the editing, tabulation and interpretation of data.
Unit 4
J&> Activity B;
a) Which type of questions may be used as branching out options as to ascertain the requirement of the respondent in the sampling plan?
b) Typography is important in which step of the questionnaire design. ________ c) Attitudes are measured through ______________ and ______ techniques. d) The questionnaire structure should follow the. . approach. _____ issues.
e) Third person techniques are used for getting response on. 4.7 SAMPLE QUESTIONNAIRE RURAL DENTAL CARE Extended Interview Questionnaire Name of respondent. Address ________
JN/60544
PUNE Centers: Baramati

Villages: Ambi Malwadi Waki Kaatphal Dorlewadi
NASIK 1
1 2 3 4 5
Junnar
Udapur Ane Arvi
2 6 7 8
3 Surgana
11 12 Manori (Budrak) Nagde 13 14 Umbarthan Bhormal Barhe Palsan Sarad
4 16 17 18 19 20
Yevla
Ajanwale Agar
9 10
Ankai Rajapur Suthegaon 15
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Name of interviewed Name of supervisory
_Sign_ _Sign_
Date Date
Record responses in Marathi and Translate in English. Space provided for both.
Classification Data: Approach Males / Females at Home

SHOW CARD A Current product usage Stick Salt Home made powder Red powder Mashiri White powder Toothpaste
CURRENT IMPLEMENT USAGE 1 2 3 4 Finger 8 5 6 7 Brush 9
INTERVIEWER TO COLLECT PRODUCT Prod. Impl. SPECIMEN 7-8 9-10
ii.
SHOW CARD B
Age:
Below 12 years 1 12-17 years 18-25 years 26-35 years 36-45 years 46 + years
TERMINATE 2 3 4 5 6 1 1
CONTINUE IF ANY OTHER THAN 1 CODED

Hi. C SHOW CARD
Illiterate Education 1 Literate but no formal
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education School upto 4 yrs
2 3 4 5
5-9 yrs SSC/HSC Some college but not graduate 6 Graduate/PG diploma 7 Postgraduate 8
iv. D
if
12
SHOW CARD
Marital Status:
Single
Married Divorced Widowed
1 2 3
13
v.
SHOW CARD E URBAN INTERACTION Visit town/city
Frequency 3-4 times in a year 5 - 6 times in a year 7-12 times in a year Twice in a year More than twice in a year
vi. Used most often at home

Detergent/Washing powder Toilet soap Shampoo Cooking oil
Taluka 1 2 3 4 5 14 1 2 3 4
City Pune/Nasik 1 , ' 2 3 4 5 15 BRAND 16 -17 BRAND 18 - 19

BRAND 20-21 BRAND 22 - 23
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Marketing Research
vii. I buy these products mostly from: Village shop Nearest village Go to town/city/taluka Relatives/friends get it for me Sex: Male: 1 Female: 2
1 234 24
25
viii. Media exposure TV viewership Everyday Once in 2-3 days Once in a week Once in 15 days Once in a month in a week 4 Once in 15 days 5 Once in a month Less than once a month 6 Less than once a month Never DK/CS 33 Main Interview 7 DK/CS 8 Never 5 6 7 8 34 8 7 Never Readership-Newspaper Radio-Listenership
1 Everyd Everyday Once in ay 1 2 Once in 2-3 4 days 3 Once 3 2-3 days Once in a week Once in 15 days Once in a month 2
Less than once a month 6 DK/DS
35
Namaste! I am from the Indian Market Research Bureau. We are currently conducting a survey to understand people's habits and practices in dental care. In this connection. I would like to talk to you for sometime. Area 1. Current Practices X Pathways of Change Q. 1 What are the things that you are doing currently to look after your teeth and maintain oral hygiene? What products and implements are you using?
Unit 4
Products used Nothing Kulla Tobacco Charcoal/ash Salt Home made powder Coloured powders White powders Toothpaste "1 Combination: 1 Combination: 2
1 2 3 4 5
vder 6 irs 7 8
Implements used Stick finger brush A B C
A
A
B B B B B B B
B Prod.
C C C C C C C
C Impl. - 3 36 38 7 -3 9
A A
A
A A A
a. Please tell me why do you use these products/implements, for what sorts of benefits? b. Do these products/implements create any problem? c. What are the likely solutions to these problems? Record Responses for Combinations Mentioned by Respondents Combination: 1 ________________________________ _ ____________________ BENEFITS: ________________________________________________________ 41-52
PROBLEMS:
53-60
SOLUTIONS :
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61-66
Combination: 2 BENEFITS: _
71-82 PROBLEMS: 83-90 SOLUTIONS:. 91-96 Q.2 ASK FOR EACH COMBINATION SEPARATELY and. .MENTIONPRODUCT
You mentioned that you use. AND IMPLEMENT FROM Q. 1. Could you tell me what influenced you to use this product and implement? PROBE : Friend's/relative's advice; doctor's advice; convenience; ads on TV/radio; visit to the city; price; product form (paste or powder). Combination: 1. 97-99 How much does. (PRODUCT) and. Combination: 2. 100 - 102 .(IMPLEMENT) cost?
Q. 3a b How long does one pack From where do you
last? c buy it?
Q. 3a Cost (inRs.)
Size/wt (ingms)
Q- 3b Duration (indays)
Q. 3c Q. 3d Boughtfrom Started (Refercode using list) at age (years)
Unit 4
111-125 Product 1: 126-140 Product 2: 141-155 Implement: Toothbrush Code List for Q. 3c (Bought from) Village shop Talukashop City shop * Gifted 3 4 PRODUCT and (USED CURRENTLY), what were your expectations from it? AFTER SPONTANEOUS RESPONSE PROBE: Fresh breath, clean teeth, no dental problems; whiteness; good taste; convenience
!>
,!*iV
1 2
Q. 4a When you started using _____ IMPLEMENTS
PRODUCT 1 SPONTANEOUS : __________________ . ................ .._- ..... , .........
PROBED: 156-161
162 -173 PRODUCT 2: SPONTANEOUS :. PROBED :_______ 174 - 179 180-191 Q. 4b to Suppose the product had to be made even better, what would you suggest improve it?
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PROBE^shbreafc clean .eete convenience
192-203
Area II: Past Practices - Oral Care Q.5 a. b. c. d. When did you first start to clean your teeth? Age specify. What are all the things, that you have even done/used to maintain oral hygiene and care of your teeth? FOR ALL PRODUCTS USED ASK: What implements did you use to apply these products? At what age did you start using these products and implements? Q.5(d)
Nothing Kulla Tobacco Charcoal/ash Salt Home made powders Coloured powders White powders Toothpaste Q.5(b) Products used Q.5(c) Implements used Brus Stick Finger h B C A B A C B A C B A C B A C B A C B A C B A C B A C
Age 1 2 3 4 5
iers 6 s 7 8
PI Age 209-212 Q.6
and and You have mentioned that you used MENTION PRODUCTS AND IMPLEMENTS CODED IN Q.5(b) and Q.5(c). I would like to understand a little about why you began to use these products and implements?
Unit 4
IF NO CHANGE CODED IN Q.5 (b) and Q.5(c), GO TO Q.7(c) a. TAKE PRODUCTS AND IMPLEMENTS CODED FOR AGES BELOW 15: MENTION and PRODUCT AND IMPLEMENT CODED, till you were 15 years old, how did you get to know about these things? PROBE: Parents' gave it; doctor's advice; friend's advice; learnt about it in school: You used
213-218 b. (a). Which of these do you feel would be the most important reason for you to have started using these products and implements? ASK Q.6(b), IF MORE THAN ONE RESPONSE OBTAINED IN Q
219 - 224 c. TAKE NEXT SET OF PRODUCTS AND IMPLEMENTS CODED AND ASK: INTERVIEWER TO ENSURE THAT IN NEW SET OF PRODUCT AND IMPLEMENT AT LEAST ONE ELEMENT i.e., PRODUCT OR IMPLEMENT SHOULD HAVE CHANGED. AT AGE ______ MENTION AGE, you changed to a new product ______________ MENTION PRODUCT and ____________ MENTION IMPLEMENT. Could you tell me, why you made this change? What happened then? PROBE: relative got it from the city; saw ads on TV and thought it was better; was available in the shops; any other:
225 - 230 85
Marketing Research
Unit 4
IF NO CHANGE IN PRODUCT OR IMPLEMENT GO TO Q.7a.

Q .7 a. .(IMPLEMENT) You have been using _ for ___________ years now? Could you tell me, have you thought of changing to any other product implement? PROBE: Why? Why not? .(PRODUCT) and.
231-236 b. You changed (PRODUCT) and
IMPLEMENT to ________________________________________
. (CURRENT PRODUCT) and. IMPLEMENT). Could you tell me why you changed to the product? PROBE: Convenience; doctor's advice; availability; friend's advice; any other? Which of these would be the most important reason, according to you?
237-242 c. I have here on cards, reasons why people keep changing products and implements over time to take care of their teeth. Can you tell me which of these do you think influence this change? SHOW CARD Education Age Urban influence Greater exposure to mass media Economy Product form i.e. paste/powder 6 Dental problems 1 to 14 1 2 3 4 5
Flavour Modern Scientific Expensive Better quality Fashion Taste Other (SPECIFY)
89 10 11 12 1314
Unit 4
d.
FOR ALL REASONS CODED IN Q.7(c) PROBE IN DETAIL ASK: Could you tell me a little more about how you feel as to what has changed dental habits?
MENTION REASONS CODED IN Q.7(c) Education: Age: Urban influence: Greater exposure ' to mass media: Economy: Product form i.e., paste/ powder: Dental problems: Ravour: Modern: Scientific: Expensive: Better quality: Fashion: Taste: Other SPECIFY .
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5.1
INTRODUCTION
In unit 1, we have seen the difference between primary and secondary data, its advantages and disadvantages. We have also learnt the different observation methods. This unit will help us to identify and select the primary and secondary data. We will also learn the different scales to be used while designing the questionnaire and the usage of sampling methods too. Market research is often concerned with the behaviour of the consumer. In this respect, market researchers have drawn heavily on the behavioural sciences such as psychology and sociology. In fact, the contribution of these sciences to market research has been very significant, especially with regard to these two aspects. First, the research techniques used by psychologists and sociologists, being of a considerable relevance to market researchers, have been amply used by them. Secondly, the concepts and theories of these behavioural sciences have also proved to be relevant to market researchers. If the attitude of the public towards a company or its product is unfavourable, the company will not be able to sustain itself for too long. It is, therefore, in the interest of the company to ensure that people have a favourable attitude toward its product. However, this by itself is not enough. The company must also look into the future to anticipate the preferences of the public. Thus, a study of attitudes becomes very relevant to market researchers. Another area where attitudes seem to play a major part is advertising. In these days of increasing competition, advertising has become almost unavoidable, and it makes use of various psychological techniques. For example, take the case of copy research. A market researcher would like to decide on the message the advertisement should carry, how it should be conveyed and the most effective mode of taking this message to the consumer. To give yet another example of the importance of attitude measurement in market research, take the case of a manufacturer who wants to know how much his product is likely to sell. For this purpose, he may have to undertake a research on buying behaviour. By observing customers as they buy goods, he can learn their preferences for a particular brand. Apart from this direct observation, which would need a long time, he may embark upon an attitudinal survey. This would reveal the likes and dislikes of the customer in respect of a certain brand, which would be extremely helpful to the manufacturer. 5.2 TYPES OF SCALES
The measurement of marketing phenomenon is fundamental to providing meaningful information for decision making in marketing. Measurement transforms the characteristics of an object into a form that can be analysed by research. For marketing use, they are
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assigned numbers (quantitative data). However, the qualitative elements can be best described as scales. Scales are used to measure response. They are classified into four types: 1. 2. 3. 4. Nominal Ordinal Interval Ratio
1.
Nominal scale
A nominal scale is one in which numbers are only used as labels and have no quantitative/ numerical significance. Variables such as sex, geographic location, occupation, religion, brand awareness are studied under nominal scales. In these cases, mere counting or numeration of individuals in each class is done. Statistics such as percentages, mode, chi-square and binominal tests are possible. Nominal scales indicate that two/more entities are different from each other. For example, Sex Male 1 Female 2
OR
Female Male
1 2
For example, Occupation Service 1 Business 2 OR
Business Service
1 2
2.
Ordinal scale
These help place different entities (objects, individuals or responses) in relative position with respect to a particular aspect. These ranks are not interchangeable since they possess a meaningful order. They indicate greater than and lesser than value between variable(s). Though, by how much, is not yet known. Permissible statistics with ordinal scales are percentiles, median and rank-order correlation. They are used to measure attitudes, preferences, occupation, social class, etc. For example, Bombay Dyeing asking respondents to show their preference of shirts design for purchase.
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Design Ranking Respondent

A B C D E
Style 1 1 2 3 3 3
Style 2 2 3 1 2 2
Style 3 3 1 2 1 1
3.
Interval scale This scale is used to measure common statistical measures such as the arithmetic mean, range, standard deviation and correlation. A researcher gauges preference. liking or importance of a particular aspect of a brand on a continuous basis and distance between one point on the scale to another (interval) is the same. It does not help state that a brand is liked twice as much as some other brand since it does not have the property of absolute magnitude i.e. zero point. These scales are used to measure attitudes, opinions, index number, etc. For example Respondent 1 2 3 4 Willingness to buy 12345678910 12345678910 12345678910 123456789 10
We cannot say that the willingness of the two respondents with the score of 2 and 4 is same as the two respondents with the score of 8 and 10. 4. Ratio scale Thise is the most powerful of the above scales. Unlike interval scale, it has a zero point. It can be used for all kinds of statistical calculation. (Geometric mean, harmonic mean, co-efficient variation). There is an equality of ratios. For example, (1/2 = 2/4). They are used for variables such as age, number of customers, sales. costs, height, length, etc. Further, let us discuss in detail these four types of scales as explained with the help of table 5.1 as shown below:
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Table 5.1 Scale Nominal Ordinal Characteristics No order, distance, or origin Order but no distance or Unique origin Both order and distance but no unique origin. Order, distance, and unique origin Basic operation Determination of equality Determination of greater or lesser values Determination of equality of intervals or differences Determination of equality or ratios
Interval Ratio
Nominal Scales Nominal scales are more widely used than any other scale for research in social sciences. In such a scale, the numbers serve as labels to identify persons, objects or events. Thus, numbers may be assigned to students in a class or patients in a hospital. We might further use the nominal scale by counting students with a certain characteristic or attribute such as those who reside in the university hostels, etc. In a nominal scale, we split a set into subsets which are mutually exclusive and collectively exhaustive. Consider the following example: Number of Students Students Day Scholars Hostellers Total Undergraduates Post graduates Total 1000
800 400
1200
200 150 350
550
1550
In this example, students have been identified and counted by two characteristics, namely, whether they are pursuing an undergraduate or post-graduate course of study and their place of residence. The numbers given in each of the four cells are mutually exclusive and the total of these four cells gives the total number of students. In a nominal scale, the only operation involved is the counting of numbers in each group. It is, therefore, the simplest of the four scales and also the least powerful. The scale does not show any order or distance relationship nor does it have any arithmetical origin. In view of these limitations of a nominal scale, it is unsuitable in determining relationships but is very useful in preliminary or
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exploratory work, where it is sufficient to know the broad dimensions of a certain phenomenon.
Ordinal Scales
Ordinal scales, as the name implies, are ranking scales. Besides having the unique characteristics of the nominal scale, these scales also indicate the order. This is possible when one is able to distinguish elements on the basis of a single direction. For example, one may rank two or more households according to their annual income or expenditure. Suppose we have five households with annual incomes as shown below: Household Income (Rs) A 6,000 B 4,800 10,000 C 12,000 D 11,000 E
If the household with the highest income is to be given No. 1 and the next to it as No. 2, and so on, then the following order will emerge: Household Order of households on the basis of annual income
A B C D E
D E B A C
This is the use of an ordinal scale, which involves the ordering of households on the basis of their annual income. The point to be emphasised is that it is a mere ordering and does not indicate the differences in annual income amongst the five households. On the basis of this scale, one cannot say whether the difference in annual income between two households D and E, is greater than, less than, or equal to the difference between any other two households, say, E and B. The use of the ordinal scale is possible when one is able to distinguish a certain product on the basis of a particular attribute. The above example was numerical, dealing with the annual income of households. It was simple as it did not involve any difficulty in ordering. Consider another example where the acceptability of a soft drink is involved. Here, one can ask the respondents, questions on the basis of one or more attributes such as flavour,
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Jt.
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colour, etc. Respondents may be asked to indicate whether they like the soft drink or not. One can develop a five-point scale as given below: I strongly like it I like it somewhat I am indifferent I dislike somewhat I strongly dislike +2 +1 0 -1 -2
In this manner, ranking can be obtained by asking respondents their level of acceptability. One can then combine the individual rankings and get a collective ranking of the group.
Interval Scales
The third type of scale is the interval scale. It possesses not only the power of the nominal and ordinal scales but also additional strength, which is the determination of the equality of differences. The classic example of an interval scale is the measurement of the temperature. Both the Fahrenheit and Centigrade scales belong to this type. One can say, on the basis of this scale, that a temperature of 100 degrees is 20 degrees warmer than 80 degrees and 20 degrees cooler than 120 degrees. It may be noted that differences between two values, say, on a temperature scale, are multiples of each other. Thus, the difference between 40F and 20F is half the difference between 60F and 20F, using the conversion formula from Fahrenheit to Centigrade. Degrees centigrade = 5/9 (Degrees Fahrenheit - 32), we can find the corresponding temperatures in Centigrade. 40 5/9 (40 - 32) 40 = = 4.44C 20 /9 x 5/9( 2 0 - 3 2) 60 5/9 (-12)=- =-6.66C 4.44 - (- 6.66) 4.44 +6.66 =11.10C = 60 60-20 = 5/9 (60 - 32) = 5/9 x 28 = 140/9 = 15.55C 15.55-(-6.66) = 15.55+ 6.66 22.21 C which is approximately twice of 11.10C 5
40-20
Marketing Research
The above example shows that on a particular scale, equal differences indicate equal differences in value with regard to that scale only. Interval scales are more powerful than the nominal and ordinal scales. Also, they are quicker to complete and researchers find them more convenient. Ratio Scales Ratio scales possess the powers of the preceding three scales as also the concept of absolute zero or origin. Thus, they have order, distance and unique origin and are the most superior amongst all the scales. Examples of ratio scales are the commonly used physical dimensions such as height, weight, distance, money value and population counts. Equal ratio on the ratio scale indicates the equal ratio among the elements being measured. For example, 9 Ibs and 45 Ibs are in the ratio of 1:5. If we convert pounds into ounces, the same ratio will be obtained. Thus, 144 ounces and 720 ounces have the same ratio of 1:5, as earlier. In other words, one can change over from one unit to another by using the relevant conversion factor. In the above example, a change from pounds to ounces involved the multiplication of the two figures by 16. This facility of conversion from one unit of measurement to another is available in the case of the ratio scale alone. From the foregoing account of the four types of scales, it should be clear that these scales are in increasing order of sophistication from the viewpoint of data analysis. Activity A; Construct the Scales a) Make a graphic scale to measure the attitude towards teenagers about eating in "Five Star" hotels.
b)
Construct an ordinal/ranking scale for the attributes of Maruti 800.
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c)
Chart out a semantic differential scale of a TV programme.
d)
Illustrate an example using the likert scale.
5.3 THE CONCEPT OF ATTITUDE___________________________________

The meaning of 'attitude' is settled behaviour, as indicating opinion. However, this does not help us much except that it implies in a given situation how a person will act naturally in a certain manner, depending on his attitude. In the late 20's the definition was defined as the overall behaviour of a man's inclinations and feelings, prejudice or bias, preconceived notions, ideas, fears, threats and convictions about any specific topic. Attitude is a subjective and personal affair. The term 'opinion' symbolises an attitude. In fact, it is the verbal expression of attitude. Apart from this, the term 'attitude' has been defined in a different manner by different authors. Some say it is degree of positive or negative effect associated with the psychological aspect. Another author defines that it is a system which defines positive or negative evaluations, emotions, feelings and the action tendency towards an object.
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5.4 CRITERIA FOR A GOOD TEST The two important criteria for ascertaining whether the scale developed is good or not are reliability and validity. Reliability By means of reliability we mean the measurements made under constant conditions giving the exact results where no changes in the characteristics takes place. This can be undertaken by using the same scale or test on the same set of respondents, using the same methods. However, in practice, this becomes difficult especially as the same set of respondents may not be inclined to answer the same questions again. Another point to note is that the same respondents may remember their previous answers to the questions and give the same answers. This would indicate greater reliability of the scale or test than it may be in reality. The other factor that might distort the criterion of reliability is that the respondents may become extremely cautious and careful and may avoid giving accurate answers for the second time or their attitude might have changed during the intervening period. In either of these cases, the use of the reliability criterion will not be very helpful as the test and retest scores will not be rigidly comparable. If the time period between the test and retest is a short one, the respondents are likely to remember their earlier answers and as such the memory effect may distort the reliability test though there would be meager chances of change in the respondents' attitude. On the contrary, if there is a long interval between the test and the retest, developments during this interval may lead to a change in the attitudes of the respondents. Thus, one has to choose the timing of the retest in such a way so as to strike a balance between the memory effect and the effect of changes in views. Validity The second attribute that a scale should have is its validity. Validity is the success of the scale in measuring what it sets out to measure, so that differences between the individual scores can be taken as representing true differences in characteristics under study. While the concept of validity is simple to understand, it becomes difficult to apply the test of validity in practice. There are four approaches that can be commonly distinguished.
Unit 5
Scaling Methods
Content Validity The content validity, implies that the contents of the scale correspond to the contents of the attitude system and that they are comprehensive enough to cover the full range of the attitude. The researcher should first define the problem clearly, identify the items to be measured, and evolve a suitable scale for the purpose. Despite all this care, he may be criticised on the ground that the scale developed by him lacks content validity. This happens because, whether or not a given scale contains the content validity will depend on the judgement of the researcher and, this is likely to vary from individual to individual. To avoid this, it may be preferable to approach a group of knowledgeable persons, rather than leaving it to one person alone. Construct Validity One of the difficulties arising in attitude measurement is that it is perhaps impossible to measure attitude directly. It can be measured only indirectly on the basis of answers given by the respondents. In a situation of this type, the test of construct validity is used. The concept of construct validity is more complex than that of content validity. In order to apply construct validity, the researcher postulates the nature and extent of the association between the attitude and other specified variables. He then examines whether these relationships exist. If not, there could be two possible explanations. First, his scale might be invalid as it does not satisfactorily measure what it set out to measure. Second, his theory might be deficient in some way and it may be difficult for him to identify it. The point to emphasise is that the construct validity is based on theoretical considerations. For example, the status of an individual in a society may be dependent upon such variables as the level of education, occupation or ownership of a car and a house. Thus, on the basis of theory, an elite class should have a high degree of association amongst these factors. The existence of a high degree of correlation in this case is supporting evidence and can be regarded as a test of validity. Predictive Validity Predictive validity signifies how best the researcher can guess the future performance, from his knowledge of the attitude score. For example, an opinion questionnaire which forms the basis for correctly forecasting the demand for a product has predictive validity. The procedure for predictive validity first measures the attitude and then predicts the future behaviour on the basis of this measurement.
Marketing Research
This is followed by the measurement of the future behaviour at an appropriate time. Finally, the obtained scores are compared with the earlier predicted scores. If the two series of scores are closely associated, the scale is said to have predictive validity. Concurrent Validity In the case of concurrent validity, an attitude scale on one variable can be used to estimate scores on another variable. For example, one may decide the social status of respondents on the basis of their attitude towards savings. Here, the attitude scale as also the criterion measure is administered almost at the same time. It may be noted that a high degree of concurrent validity may sometimes be spurious as the collection of one set of data may influence the collection of another set. General procedure in Attitude Scaling Although there are a number of methods available for the measurement of attitude, the most commonly used approach is the self-report, where a person is asked directly how he feels about an object. The other alternative methods are observation of behaviour, indirect techniques such as word-association tests, sentence-completion tests, story-telling, performance of 'objective' tasks and physiological reactions. Since, the self-report method of attitude measurement is most frequently used, the discussion here is based primarily on it One should assemble a set of items or statements related to the subject of enquiry. From this pool of items, a final choice of items is to be made for inclusion in the scale. It is necessary to exercise sufficient care so that complex, imprecise, vague or ambiguous items can be avoided. Also, the statements should be written in simple language so that the respondent easily understands them. Having collected a set of items or statements, the next task is to choose the items for inclusion in the final scale. By a process of elimination, unsuitable items should be discarded, as a result of which the items left in the pool will form the final scale. While discarding the unsuitable items, it should be ensured that the items retained are such as to comprehensively cover the attitude dimension. For this purpose, an exploratory study is sometimes undertaken in which some persons are asked to respond to all the items of the pool. Another approach, as is used in the Thurstone scales, is to ask a group of judges to assess the suitability of items for the final scale. Finally, the scale, once formed, should be tested in regard to its reliability and validity. If the scale satisfies these criteria, it can be used in the survey.
Unit 5
Scaling Methods
5.5 FORMS OF A RATING SCALE The scales that are commonly used for attitude or opinion measurement are called rating scales. Attitudes are mental states used by an individual the way they perceive and respond to their environment. These are interval scales but are generally more complex and multi-item in nature. Rating scales are used in various forms: 1. Itemised rating scale These scales employ close ended questions with multiple choice answers on a continuum that reflect a range of possible views regarding an object. These answers are prompted and not spontaneous. For example, show card.Please refer to this card and indicate how much you dislike or like the taste of Bru coffee that you have just had. Disliked very much Liked it somewhat 4 Liked it very much 1 Disliked some what 5
2 Neither disliked nor liked it
3 2. Diagrammatic/graphic rating scale Is quite like the above scale except that the views may be scaled through a diagrammatic representation. This may be used for illiterate persons, children etc. Which of the faces best expresses your feelings on the coffee you have just had. 3. Rank order scale This is a comparative rating scale in which a respondent is required to rank comparatively the listed items. For example, Questionnaire related to the job responsibilities In your job you may perform these five duties. Consider how much time you will spend doing each duty. Write 1 against a job that will be done most of the time and 5
against the job taking the least time.
Marketing Research
Coordination Forecasting Problem solving Expert guidance Absentee replacement This scale is successful if all possible sets of choices are indicated. Order bias and items ranked outside respondent's preference set may render the response meaningless.
4.
Constant sum scale

It requires a respondent to allocate fixed numbers of rating points (usually 100) among several attributes to reflect the relative importance of the attribute being studied. For example, if you have Rs. 1007- to be allocated to various food items, how much money will you allocate on each item? Rice Wheat Ghee Milk Biscuits Tea Total Rs. 100
5.
Semantic differential scale

It is an insightful procedure for comparing the images of competing brand or services. Respondents are asked to express their feelings on the attitude object on a five or seven point rating scales bonded at each end by polar opposites. The central point of the scale is a neutral point. For example, Rate the TV programme "Kaun Banega Crorepati" for older people and young people:
Scale
VeryExciting
nn
Unit 5
Scaling Methods
Somewhat Exciting Neither Exciting nor Dull
Somewhat Interesting
Very Interesting VeryDull Very Boring '
Semantic differential scaling facilitates greater speed in ascertaining the response for a range of brands across a battery of parameters. Problems of question phrasing and structure are practically eliminated. It also provides a basis for isolating the intensity of predetermined feelings. The only difficulty posed may be due to adjectives not being precisely polar opposites or the 'halo effect', which tends the respondent to mark all responses in one direction.
6.
Likert scale
This scale was developed by Likert and hence the name. It is a five-point scale on which a respondent is required to indicate a degree of agreement or disagreement with a variety of statements related to the attitude object. The first step in developing a likert scale is to generate a number of statements relevant to the attitude. These statements are given to a screening sample representative of the study population. The next step is the item analysis, which chooses the subset which discriminates among favourable and unfavourable attitudes. This is done by examining the correlation between responses to each item and the total score obtained by summing up the response to all other items. The most favourable and least favourable opinion groups are retained and the mean is computed for each statement groups showing the biggest difference between means.
For example, a study to evaluate Pune as a city to reside in the following questions may be asked.
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Marketing Research
Agree Agree Strongly some what
Neither Disagree Disagree agree some strongly nor what disagree
1. 2. 3. 4. 5. 6. 7. 8.
The weather is good Is a safe place Cost of living is affordable No language problem Good educational institutes available Good transportation system Getting domestic help is easy Sufficient medical facilities available
The popularity of this scale is due to relative ease of construction and administration."" Through this scale one can determine the favourability of disposition towards a statement but to what extent may not be known. There is lack of reproducibility of the research.
5.6 SELECTING THE APPROPRIATE SCALE TO USE
___________
Before embarking on the scale usage, it is advisable to consider the following aspects. 1. 2. 3. 4. 5. Type / details of information required Time and cost constraints Literacy level of target respondents (Communication ease) Stimulus characteristics Analysis methodology to be used
.11
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Scaling Methods
6. 7. 8.
Past experience of appropriate scales Rural v/s urban context (compatibility of scale structure to respondent's attitude) Expected and desired response
Accuracy of attitude measurements All measures used in marketing must be both accurate and useful. They must possess the attributes of validity, reliability and sensitivity. Validity -measuring what it is supposed to measure Reliability- repeating the measurements within same parameters must yield a consistent result Sensitivity- the ability to discriminate among meaningful differences in attitudes Though the foregoing definitions make it abundantly clear that defining 'attitudes' is a difficult task, one does find that there is a common say running through all of them. 5.7 SUMMARY__________ . _________________________________^ _______ As we have seen in this unit, the different types of scaling are to be used by the appropriate methods. We have also learnt what is the meaning of the word attitude, and further discussed the types of scales, how to select these scales but we have to learn that scaling also has limitations. In view to these limitations, scales should be used with great care and caution. 5.8 KEYWORDS ___________________________________________________
A
'*' Phenomenon: fact Prejudice: preconceived opinion I Preconceived: beforehand - Convictions: being convinced
Marketing Research
6.1
INTRODUCTION
The difference between primary and secondary data and their advantages and disadvantages will discussed in this unit. This unit will also help us to identify and select the primary and secondary data as well as teach us the different scales to be used while designing the questionnaire and also how sampling methods are to be used. Data can be obtained in various forms. It can be categorised by the distinct difference in meanings. Facts: The measurement of anything that actually exists or has existed. Knowledge: Knowledge is what people know. It is a determinant of how people act. Opinions: Options are based on how people perceive something. Intentions: Intentions are expected behaviour as one has in mind to do. Motives: Motives are internalised factors that cause people to behave the way they do. Data may be obtained through respondents. Respondents are individuals who provide information through verbal, written or non-verbal clues (behaviour).
6.2 QUALITY OF DATA AND DATA TYPES____________________________

The data objectives are derived from research objectives. The data accuracy is dependant on validity and reliability. Validity - measuring what it should measure. Reliability - repeating the same methods should produce similar results. The data must be obtained quickly enough at a reasonable cost.
6.3 DATA TYPES _________________________________________________

The different types of data are illustrated below: Demographic Sociological Pertaining to population Economic Psychographic Behavioural
How people Pertaining to Individual mental How people makeup, lifestyle actually are organised financial etc., behave in a society strength
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Data Collection Primary / Secondary
6.4
SOURCES OF DATA
There are basically two sources for data namely Primary: comprises consumers, industrial users, middleman and other knowledgeable people. Secondary: comprises internal and external sources. Details are shown in this unit further.
6.5 COMMUNICATION MEDIA

As simple division of the communication media is as Manual follows: Observation Structured v/s Unstructured v/s Mechanical Questioning Disguised v/s Known
Experimentation
Communication media decision should be taken keeping the following factors in mind. 1. Freedom from interviewer bias 2. Sampling size 3. Speed of response 4. Versatility of the mode 5. Rapport with respondents 6. Cost of operations 7. Data collection control 8. Indepth information 9. Hard to recall data tapping 10. Follow up required
Marketing Research
6.6 FORMULATING A DATA ACQUISITION PLAN Set Data Objective Select the Appropriate Data Type Define the Source of Data Select the Communication Approach Mail, Telephone, Personal, Observation Data Collection 6.7 BASIC METHODS OF GATHERING PRIMARY DATA _____________
Primary data is the original data that a researcher gathers for a particular project. There are three methods of primary data collection. Observation Experimentation Surveys Direct -> 1. Observation a) Direct Observation It is a process of recognising and noting people, objects and occurrences rather than asking for information in a natural situation. For example, number of vehicles at a road junction, grocery shopping of individuals, etc. Indirect Mechanical
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b)
Indirect/Contrived Observation
''
At times, researchers feel that a lot of time is going to get wasted to wait for a desired event to happen. So artificial stimulus situations are created and the respondent's response is studied. For example, in the pharmaceutical industry, to see how a medical representative is going to deal with a doctor, artificial clinics and doctors are placed. The sales call of a representative is recorded without his knowledge to study his call effectivity and to suggest methods to improve his call. c) Mechanical Observation In the above two methods, the human interface is there. Newer technology entails the use of mechanical devices for observation. For example, 1. Audiometer: to record radio and television timings when they are tuned on. Web camera: to check in shop mobility, shop lifting etc. Eye camera: records movements of the eyes. Psycho galvanometer: measures minute emotional reactions through change in perspiration just like a lie detector.
2. 3. 4. here
2. Experimentation It is difficult to apply this method in actual practice, as it is a tightly controlled method. A select stimulus is applied under a controlled environment to study cause and effect relationships. 3. Surveys Questionnaire and various specialised techniques (for example, shop audits, consumer panels etc.) are used to collect primary data. 4. Mail Postal surveys are carried out by mailing self-administered questionnaires to the desired respondent instead of an interviewer asking questions. Due diligence must be exercised while designing such questionnaires for a proper response.
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6.8
ADVANTAGES AND DISADVANTAGES OF PRIMARY DATA
The advantages and disadvantages of Primary Data may be said to be as follows: Advantages 1) Sample size may be dispersed and distant areas and inaccessible persons may be tapped. 2) Respondents may respond at a time convenient to them without any pressure. 3) Confidential information may be divulged if identity is concealed. Disadvantages Incorrect postal addresses and an inadequate mailing list. It may take weeks before the responses start coming back. Since a respondent has read the question sequence, there may be an answering bias. Apparently the original low cost becomes high, due to a poor response rate. Some respondents may not respond at all. It may not have been filled by the respondent himself. Therefore it will not represent the true sampling universe.
4) Using reply - paid envelopes is cheaper, taking into consideration interviewer's training and transportation costs. 5) Interviewer bias is avoided
Telephonic Interviews Respondents are reached for surveys/interviews through telephones. The usual methodology of sampling and designing of a questionnaire is followed except that responses are filled by the interviewer on telephone. Advantages 1) Coverage of a widely scattered sample is rapid. 2) Low cost in comparison to door to door personal interviewing. Disadvantages Only respondents having a telephone may be contacted. Visual aids cannot be used for interviewing.
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3)
Frankness of views as against written communication.
Lengthy interviews not possible. Respondents get suspicious as the interviewer cannot be seen. Technical errors marr functioning of telephones. Respondent communication problems cannot be visualised. Retaining attention for long is difficult.
4) Greater speed of contact since distance is not a barrier. 5) Better supervision and control over interviewers.
Personal Interviews
This is the traditional method of data collection and can take place at any location. The respondent is face to face with the interviewer to answer the questions.
Structured v/s Unstructured

In structured interviews, predesigned and preset questions are asked through a questionnaire to the respondent whereas in unstructured interviews, the interviewer covers varied aspects of the subject at length. So sometimes they are referred to as indepth interviews.
Traffic Interviews
Interviews are held on streets and at public places.
Mall Intercept
Targeted respondents are intercepted at shopping areas.
Group Interviews
A questionnaire is administered to a homogeneous group of people who are shown/explained certain facts and are then required to respond to a questionnaire. For example, demonstration on a microwave and a questionnaire on a particular brand to housewives. This may serve the purpose of research and sales promotion at the same time.
Advantages
Disadvantages
1 . Flexibility - audio, visual and mechanical It is a time consuming and aids may be used to conduct interviews. expensive exercise.
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2. The interviewer may persuade the respondent to answer the questions. 3. Comprehension difficulties may be sorted out. 3. Detailed information collection is possible Certain facts can be observed without questioning. Selection of sample size can be more precise.
Staffing capable interviewers and controlling them is a problem area. Interviewer's bias may influence responses. Respondents are reluctant to talk to strangers.
4.
Scattered and distant sampling area is difficult to cover.
6.9
TYPES OF SECONDARY DATA COLLECTION AND ITS ADVANTAGES & DISADVANTAGES Internal xternal Studies Unpublished Research Government Scholars Publications Municipalities (census/ministry reports)) Association Reports International Agencies (UNO, IMF) Professional Bodies (FICCI) Subscription Services Libraries (Chamber of Commerce) Indian Archives (Pre Independence Era Historical facts) Unions (Sugar. Trade) Newspapers, Journals Periodicals Stock Exchange Reports Web pages/Online Data Services
Published
Unpublished
Balance sheet Sales Reports Director's Report Purchase/Sales Auditor's Report Profit invoices & Loss Account Challans Chairman's Statement Budgets Annual Report News Research Reports Letters/Inhouse Departmental magazine communications
Unit 6
Handbooks/Encyclopedia Indexes (e.g. Stock Exchange) Commercial Research Services (Audit Bureau of Circulations)- ----- laeological Survey of India ps) Export Promotion Councils And Boards
Secondary Data
1. Company Audits, Records and Annual Report: Every limited company publishes an annual report regarding its progress for the stakeholder, which is an indicator of the general performance of the company. Also, there may be an audit on various issues like inventory control, working capital, fund utilisation, etc. which are of a great help to a researcher. Monthly records on sales, raw material usage, the profit and loss statement and the budget are also unpublished internal sources of information. 2. Government Publication: The government publishes books, official gazette, census, journals, industrial guidelines, etc. as references. Some of them are given below.
Publications Sr. No. Name

1. 2. 4. 5. 6. Architecture Arecanut Cashew Ceramics Chemicals
Publishers
All India Architects Directory Indian Arecanut, Spices & Cocoa. Journal of Plantation Crops Cashew Bulletin, Indian Cashew Journal Indian Ceramics, Central Glass & Ceramic Research Bulletin Indian Chemical Directory Catalogue of Indian Chemical Plant Mnufacturers Chemicals & Petro Chemicals Journal Chemical Industry News, Chemical Industry Development
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7.
Export/Import Export-Import News, Indian Engineering Exporter, Daily Bulletin of Exports Footwear & Leather Silk Spices Wool Journal of the Leather Technologists Association Indian Silk, Indian Journal of Sericulture Silk in India Spices News Letter, Indian Spices Wool and Woollens of India
8. 9. 10. 11.
Research Institutes 1. 2. 3. 4. National Research Development Corporation of India, New Delhi Council of Scientific and Industrial Research, New Delhi Building Research Institute Central, Roorkee National Chemical Laboratory, Pune
Central Government Undertakings 1. 2. 3. 4. 5. Agricultural Co-op. Marketing Federation of India Ltd., (NAFED), New Delhi. Agricultural Finance Corpn. Ltd., Bombay Agricultural Refinance Corpn. Bombay Banana & Fruit Development Corpn. Ltd., Madras Bharat Leather Corpn. Ltd. Agra
Export Promotion Councils/Commodity Boards

1. 2. 3. 4. Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council, Mumbai Cashew Export Promotion Council, Chittor Road, Cochin Chemicals & Allied Products Export Promotion Council, Kolkata Cotton Textile Export Promotion Council Engineering Centre, Mumbai
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5.
Engineering Export Promotion Council, Kolkata

'
Advantages and Disadvantages of Secondary Data
1.
Easy Accessibility
2. The cost of conducting a full scale research is not incurred, so it is more economical. 3. It is time saving, as information may be availed without doing actual field surveys within a few days. 4. They provide for information, which may not be availed by a typical organisation e.g. The Bureau of Census and the sales figures of retailers. 5. The data is not gathered for an organisation with specific purpose; hence researcher's bias is minimised. 6. Helps in problem definition, the formulation of hypothesis and planning the data collection.
Drawbacks of Secondary Data 1. Unit of Measurement Different data agencies use different units of measurement. For example, expenditure census may use expenditure per household whereas an income tax department takes it on income at source on individual basis as the basic unit for measurement. 2. Recency
.3- Certain data is collected after a lapse of five or ten years which is a long period for marketing purposes. There may be a lot of factoral changes during the said period and this may render the information quite obsolete. For example, the Census of population.
3. Definition of classes
Classes are made by individuals to suit their research requirements. For example, youth may be defined as all people below 30 years in one research while another reference may classify it as all people below 40 years. For people who are using cross references for their purpose of study may find it very difficult to tabulate and use such varied sources of information.
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4.
Inaccuracy Arithmetical errors, clerical errors, printing errors, omission of footnotes, cautionary notes and explanatory notes may render the data inaccurate.
5.
Incompleteness Very seldom the data available embraces the entire population. A DGTD report on confectionery manufacturers may give details about the organised units reporting to it while the small scale units in the unorganised sectors may be inadvertently ignored.
6.
Assumption" Each research takes certain variables as a constant for the purpose of study. Aspects such as price rise, devaluation, tax structure changes etc., have their own impact on the economy and may reflect a partial picture.
7.
Source of data While evaluating the secondary data, a researcher must examine the source of data, the data collecting agency and the purpose of publication. For example, income tax department will give more accurate data on income level since it is authorised to collect information rather than a private organisation giving this information.
8.
Misleading The statistical data is sometimes misleading. For example, a report stating the annual production of electrical motors at 110 million H.P. The share AC, DC, various range of HP is missing in it.
6.10 RESPONDENTS AND THEIR DESCRIPTORS The difference between research context and the target respondent is given below :
Research context 1. To ascertain the experience of 2. Pro-V hair conditioner Reasons for non acceptance of Pro-V hair conditioner
Target respondent Users of the product Users of other conditioners Non-users of hair conditioners
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3.
To understand the knowledge and attitude towards hair conditioners
Information could be got from Any sex-male/female Age-Specification Household -type by income Education level Urban/Rural background Town specification
In the first two contexts, the profile of the target respondent is fairly simple but the third context renders the profiling rather complex. Not all individuals can meet the selection criteria which describes the individualneeded for the study. Such describing criteria are called respondent descriptors.
Types of Respondent Descriptors

Geographic Town zones class
+ ;
i
+ Changed Lifestyles
Demographic Age North Sex East Monthly West household South Income Marital status household structure Education Occupation Working status Religion Basic food habits Mothertongue
Product Usership Socio Psychographics ownership of service economic f ---- L Primary MHI Attitude Urban User Rural Non user Secondary Education Interests Opinions
Demographic: The use of demographic descriptors depends on the product category and the research context. Generally, a combination of variables is used to define the target audience. For example, age, sex and income criteria may be used for one study. Standardisation of descriptors helps in a comparative study of various researches, cross tabulations and building weightage. Questions may be asked to get response from descriptors for example, Age: What is your age
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Sex: Male/Female - to be ticked by observation or filled by the respondent Occupation : Show card (A handout card containing various options is shown to a respondent). Please refer to the card and select the phrase that best describes your occupation.
Some descriptors Sex Male Female Age Scale intervals 0-5 years 6-10 years 11 -15 years 16 - 20 years 21-25 years 26 - 30 years Marital status
Single / Never married Married Widowed Separated/Divorced Not disclosed
Working status
31 -35 years 36 - 40 years 41-45 years 46 - 50 years 51-55 years 55 + years Not disclosed.
can be made as per need of the study. 0-5 years 31-35 years
Networking
unemployed housewife student retired
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Working part time (< 4 hrs/day) Working full time (> 4 hrs/day) Not disclosed Occupation Unskilled worker Skilled worker Petty trader Shop owner Business/industrialist (can be classified further by the number of employees) Self-employed professionals Clerical/Salesman Supervisors Officer/executive (Junior) Officer/executive (middle/senior) Not disclosed Household structure Nuclear family Nuclear with elders Jointfamily Single person/siblings/others Not disclosed Education Illiterate Literate without formal schooling School - upto 5 years (primary) - 6 to 9 years -SSC-HSC ^
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Diploma Graduate/Postgraduate (general) Graduate/Postgraduate (Professional) Not disclosed Mother Tongue (Listed Alphabetically) Assamese Bengali English Gujarati Hindi Kannada Malayalam Marathi Oriya Punjabi Family Life Styles Unmarried Married with no ch i Idren Married with young children (below < 12 years) Married with teenagers Married with college going children Married with married children Married with children not staying with them Religion Hindu Sindhi Tamil Telugu Urdu Others ______ Not disclosed
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Data Collection Primary /
Sikh Jain Muslim Christian Buddhist Others Not disclosed Household Income Rs.350-Rs.500 Rs. 501 - Rs. 1000 -Lower - Lower middle
Rs. 1001 - Rs. 2000 -middle Rs. 2001 - Rs. 4000 -Upper Rs. 4001 - Rs. 10,000 - Upper middle Rs. 10,0001+ Not disclosed Food Habits Vegetarian Eggitarians (vegetarians eating eggs) Non-vegetarians Not disclosed -Upper
Geographic: India is a diversified country with a lot of regional differences. For a research zone (east, west, north south, state level, district level), a descriptor could be made. The state reorganisation commission (1954) has set up districts and state boundaries based on the homogeneity of socio-cultural parameters. These parameters include: Language homogeneity Geographical continuity Financial, economic and administrative homogeneity Regional and cultural similarities
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Caste and Class Consideration Town classification Classification Population Metro Class I Class II Class III Class IV < 10 Lakh 5-10 Lakh 1 - 5 Lakh 50,000 - 1 Lakh less than 50,000 Class III less than 1000 Village classification (Rural) Classification Population Class I Class II greater than 5,000 1000 - 5000
Owner of products / service Users Non-users
Typical example An individual can be a user/non-user of a particular product or service if he/she uses certain other products. Primary Airlines Microwave Secondary Frequent flier Programmes Microwave dishes
Socio Economic Class Earlier monthly household income (MHI) indicator was used to study purchase behaviour in India. Now the market research society of India has developed a hybrid of two descriptors - the education and occupation of the chief wage earner in a household. Each member of the household will have the same SEC. This is called as the socio-economic classification (SEC). According to NRSIV, the median MHI value are given below.
SEC
A1/A2 B1/B2 CD
Median MHI Value (in Rs.)
3180 1900 1440 910
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El E2
780 620
Rural SEC Grid: It is based on education and Pucca/Semi pucca/Kuchha house. Psychographic: It includes activities, interests, opinions of people which keep changing over a period of time. Lifestyle factors are also considered. For example, I want a car to make my son happy I take pride in
cleaning my car Educating your children is a must I like listening to Jazz Politicians are big scoundrels Various scaling and projective techniques help to measure these factors. Psychographic: A specific change in lifestyle is indicated through psychographic. It depicts how people allocate their time and money to certain products and factors. For example, a person starting his first job, getting married, changing residence, etc. Depending on the research context, psychographic descriptors may be used. For example, a baby care product. These are a few listed descriptors. Aresearcher may alter and add descriptor to suit the research need. 6.11 SUMMARY ________________________________________________ Market research involves collection and analysis of data. Data may be collected through primary or secondary sources. Without data, research is impossible. Primary data involves interaction with individuals who provide the information. These individuals are called respondents. Before approaching any individual, a researcher needs to decide on the profile of the resi ipondents needed for study. This is the target audience. The profile of the target audience will depend on the nature of the research.
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Unit
6.12 KEYWORDS
Tabulations: arrange in tabular form Nuclear family: couple and their child or children
Qut
Qi. Q2. Q3.

*
6.13 CASE STUDY A leading group of Hotels

Aleading group of hotels owns a chain of 20 hotels located in different parts of the country. In recent years, it has been expanding the chain by setting up new hotels. When there were few hotels, the top management of this group of hotels used to personally visit them with a view to ensuring that they provided high quality food and services to their patrons. But, now they find that with so many hotels it is extremely difficult to personally visit each and every hotel. At the same time, they need some mechanism to ensure that hotels of the chain continue to provide high quality service. The Management has discussed this problem with some senior officials of the company. As a result of this discussion, the management felt that out of the options given below which option would be suitable for their group and how it will help them to monitor their parameters. 1. A suitable questionnaire may be designed and the same may be given to the patrons during their stay in the hotels. They may be requested to return the filled-in questionnaire at the reception counter while checking out of the hotel. A suitable questionnaire may be designed and the same may be posted to their residence soon after they have reached there with the request that these be returned, duly filled in by post. A trained interviewer may be appointed. He could visit different hotels without any prior intimation of his visits. In each hotel he visits, he may personally interview selected guests and seek their opinion on the quality of food and services in that hotel and their suggestions for improvement if any. The services of a marketing research firm may be hired. It may be asked to conduct a suitable study based on, say, telephone interviews of a random sample of guests from each hotel and to submit a report to the Management.
6.14
Q.i
Q.2 Q.3
2.
3.
4.
Unit 6
Questions
Q1. Q2. Q3. In your view which option is to be adopted? Discuss the relative merits and demerits of each option? If you are the Chairman of the group, which is the best method you will adopt and why?
6.14 SELF-ASSESSMENT QUESTIONS

Q. 1
_______ _ _ ________ '
An NGO wants to establish a charitable hospital in the town. They cannot ascertain which specialties to start. Formulate a data acquisition plan to resolve their problem. A mail survey would be less expensive than a personally administered survey. Comment. The utility of secondary data cannot be ignored. Comment.
Q.2
Q.3
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7.1
INTRODUCTION
Once the data is collected, the process of analysis is triggered off. The raw data which is received from the field cannot be used as such for interpretation unless the validation of data has taken place. Seemingly small errors can lead to misleading results.
7.2
TRADITIONAL APPROACH OF DATA PROCESSING_____________
The traditional approach of data processing is simplified with the help of the following flow chart: Validate data I Edit acceptable questionnaires
!
Code I Transcribe 1 Clean data I Store data for analysis
!
Select an analysis strategy 1. Validation: Determination of data validity is a fundamental step in research. Validation ensures that data has accurately measured what was intended to be measured. Two steps of validation are generally done. 2. Sampling-for cause and location error Questionnaire-errors in the conduction of interviews
Editing: It is the process of review of questionnaires with the objective of increasing accuracy and precision. The following errors are generally detected. Fake interviews Inadequate answers Incomplete answers Ambiguous responses Inconsistent response
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Data Preparation and Processing
Illegible responses Irrelevant answers
'
'
These errors are rectified by contacting the respondent if possible, by trying to infer meaning by subsequent answers or discarding them altogether. 3. Coding: Coding is the procedure of classifying the answers to a question into meaningful categories. The symbols used to indicate these categories are called codes. Coding is necessary to carry out the subsequent operations of tabulating and analysing data. If coding is not done, it will not be possible to reduce a large number of heterogeneous responses into meaningful categories with the result that the analysis of data would be weak and ineffective, and without proper focus.
Coding involves two steps

a) The first step is to specify the different categories or classes into which the responses are to be classified. b) The second step is to allocate individual answers to different categories. Code construction, as pointed out is something of an art and the final categories reflect the tastes and interests of the individual researcher. All the same, it is desirable to follow some guidelines to ensure the utility and rationality of the code. One of the most important points in this respect is that the categories must be all inclusive and mutually exclusive. The 'all-inclusive' aspect can be taken care of by adding one or more such categories as 'other', 'no information' and 'none'. The other aspect is that categories must be 'mutually exclusive', i.e. they must not be overlapping and ambiguous. It should be possible to classify each response in one and only one category. However, this requirement is often violated when more than one dimension is embodied in a single case. To give an example, a person may, by occupation, be an industrial worker as well as unemployed. Here, two concepts or dimensions have been used. The first is the occupational category and the second is the current employment status. In such a case, there is apprehension that different categories or classes will not be mutually exclusive. It would, therefore, be advisable to use two category-sets, one for the occupation and the other for the current employment status. There is no definite rule for the number of categories or classes that can be used. This will depend on the research problem as also the extent of analysis the researcher proposes to carry out.
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In large surveys, where mostly structured questionnaires are used, the response categories are pre-determined and are contained in the questionnaires themselves. The categories are in the form of multiple-choice answers to the question. For example, the respondent may be asked: To which age group do you belong? 15-30 years, 30-45 years, 45-60 years and 60+ years. Here, four distinct categories are indicated and the respondent is supposed to indicate his by checking the category in which his age falls. It is obvious that in such a case the respondent himself chooses the category which is applicable to him. The problem of coding is not so simple, especially in respect of an open-ended question. The response to such a question is in a descriptive form, in the words of the respondent himself. For example, the respondent may be asked: What is your opinion regarding the prohibition policy of the government? The respondent may give a lengthy answer indicating what he feels about this policy. In case of such responses, coding needs extra care in framing the possible categories in which various responses can be classified. Sometimes the interviewer himself decides the category in which a particular response to an open-ended question is to be included. He may first take down the entire response and then decide the category in which it should be included. At times, the questionnaires are wholly or partially pre-coded. These questionnaires contain a numeric code for each of the response categories. Some examples of pre-coded questions are given below: Questions How often these days you watch your favourite TV program? Answers More than once a week Once a week Once a fortnight Once a month 3 to 4 times in a year Less often Never Hand wound Which type of wrist watch you have? Automatic Quartz Codes 12 34 56
71 23
142,
Unit 7
Which of these equipment do you have in your family?
Microwave Television Washing Machine Dish washer CD Player Digital Camera Lap top Personal computer Any other (specify)
1 2345 67 89
Sometimes data are transferred from the questionnaire to a coding sheet and then punched into cards. A practice which is frequently followed is to edit and code the data simultaneously. These two operations are regarded as one operation which is looked after by one person. It has been rightly pointed out, although this may perhaps be the quickest and most efficient method, it may lead to the neglect of editing as the editor who is expected to code becomes just a coder. In view of this, it may be advisable to get these jobs done by two people. However, in such a case, coding by itself tends to be monotonous and boring but this perhaps cannot be helped. In simple terms, coding means assigning a code usually a number to each possible response to the question. This code could be in letters as well. Coding enables transferring of data in a computer readable form. Tick the appropriate number e.g. Male Female 12
The respondent code and record number should appear on each record of data. Additional codes consist of project code, interviewer code, date code, time code and validation code.
m
7.3 PRINCIPLES OF CODING _______________________________________ The principles of coding can be said to be: Convenient number of categories should be there so as to reveal differences in data. Category codes should be mutually exclusive and collectively exhaustive.
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Category codes should be assigned to critical issues even if the category is no response. Class interval if possible should be of same width. Coding unstructured or open ended questions gets complex and hence should be avoided. Coding should reflect inter-class homogenity and intra-class heterogenity.
Codebook: Codebook is a guidebook for researchers to help them identify and locate variables. Sometimes, instead of writing codes on the questionnaire itself, the codes are written on a special 80-column paper called the coding sheet. 4. Transcribe: Transcribing data involves transferring the coded data from the questionnaires or coding sheet onto disks, magnetic tapes or directly into computers by key punching. Data can be optically scanned and involves direct machine reading of codes and simultaneous transcription e.g. Product bar code (universal product code). Data cleaning: It is done through extensive checks for consistency and the treatment of missing responses. Consistency check identifies data that are out of range, logically inconsistent or have extreme values. Missing responses denote unknown variables, ambiguous answers or those not recorded properly. This problem is resolved by substituting a neutral value or an imputed/ calculated response. Data storage: With the advent of the microchip, computer aided technology has created a revolution. Huge amount of data can be stored and retrieved from a microcomputer in no time. Various statistical software help in easing computing problem. Selecting an analysis strategy: Interpretive goals spell the requirement for data processing and statistical analysis. One needs to select a method out of the four data processing approaches: Manual or personal method Data-processing experts Use of data analysis programs Develop computer software as per needs ?
5.
6.
7.
Unit 7
As regards the choice among the four alternatives, the trend is towards electronic rather than manual processing. Existing data analysis programs may be used if they cover the marketing program. Thus, starts the actual task of analysis. Once the data has been collected, the researcher has to process, analyse and interpret the same, hi unit 6, it was emphasised that the researcher should exercise good care to ensure that reliable data is collected. All this effort, however, will be in vain if the collected data is not properly processed and analysed. Sufficient attention is often not given to these aspects, with the result that the quality of the report suffers. It is desirable to have a well thought-out framework for the processing and analysis of data prior to their collection. Dummy tables should be prepared in order to illustrate the nature and extent of tabulation as also the comparisons of data that will be undertaken. At the same time, it may be noted that certain changes in such a framework may become necessary at a later stage. The researcher should not hesitate to introduce such changes as may be necessary to improve the quality of tabulation and the analysis of data.
7.4 EDITING __________________________________________________

The first task in data processing is the editing. It is the process by which data is prepared for subsequent coding. As it is a very subjective process, it is necessary that people who are well-qualified and trained in the j ob of editing, should alone be entrusted with this responsibility. Editing is the process of examining errors and omissions in the collected data and making necessary corrections in the same. This is desirable when there is some inconsistency in the response or responses as entered in the questionnaire or when it contains only a partial or a vague answer. Given some few examples will indicate how editing can be helpful. The respondent has given answers which are inconsistent with each other. In such a case, the editor has to change one of the answers so as to make it consistent with the others. He has to use his judgement to decide which answer is correct so that the other one can be suitably changed. The respondent has marked two answers instead of one for a particular question.In such a case, the editor has to carefully examine which of the two answers would be more accurate. Sometimes, when a decision cannot be made categorically, he may prefer to code 'no information' for that question. The respondent has answered a question by checking one of the many possible categories
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contained in the questionnaire. In addition, the respondent has written some remarks in the margin. These remarks do not go well with the particular category marked by the respondent. The editor has to look into this and may have to change the category to better represent the remarks made by the respondent. Sometimes the questionnaires contain imaginary and fictitious data. This may be due to cheating by the interviewers who may fill in the entries in the questionnaire without actually interviewing the respondent. This may also happen in the case of a mail questionnaire, where the respondent has given an arbitrary answer without exercising any care. If the responses indicate obvious inaccuracy, they may be either dropped or suitably modified if they are to be retained. The editor has to exercise his judgement in this regard. In all cases where editorial corrections are to be made, it is necessary that these should be kept distinct from the changes made either by the respondent or by the interviewer. This can be ensured by the editor by using a different coloured pencil for editing the raw data. Editing can be undertaken at the time when the field survey is in progress and when it has been completed. In the former case, it is known as field editing. When the interviewer fills in the information at the time of the interview, he often uses several abbreviations due to the paucity of time. These need to be spelt out fully later. It is advisable for the interviewer to carefully look into the questionnaire at the earliest possible opportunity after the interview so that he can enter the proper responses or complete the partial answers. Another type of editing is central editing, which is undertaken after the questionnaires have been received at the headquarters. As far as possible, a single editor should carry out this task so that consistency in editing can be ensured. However, in the case of large studies, this may not be physically possible. When two or more editors are entrusted with the task of editing, it is necessary that they are given uniform guidelines so that the maximum possible consistency in their approaches can be attained. An alternative way would be to split the entire task into two or more parts so that each part of the work can be looked after by one single editor. In such a case, chances of inconsistencies pertaining to the responses of a particular part can be almost fully avoided. An editor should be well-versed with the editing of questionnaires. It may be emphasised that editing a manuscript is different from the editing of a questionnaire or numeric data. People who are good at editing descriptive material may not be able to edit numeric data satisfactorily. Persons who are quite efficient in detecting flaws or errors in the data in just one glance should be entrusted with this job. Enumerators with long experience and having a special aptitude for the editing of data should be given preference over others.
Unit 7
When the services of more than one editor are required, it is advisable to give each one explicit editing instructions in order to ensure consistency in the editing of data. Before undertaking the coding, tabulating and analysis of responses contained in questionnaires, they should be checked for completeness, accuracy and uniformity. The first point to check is that questionnaires are complete and do not have any omissions or partial responses. Sometimes^the interviewer might have forgotten to record the answer. In such cases, it may be difficult to fill in the gap as the interviewer may be unable to recollect the answer given by the respondent. When several questions remain unanswered in a questionnaire, the whole questionnaire may have to be excluded. However, before doing so, all other alternatives should be exhausted and the questionnaire should be disposed of only if it is unavoidable. The second point to check is that questionnaires contain accurate answers. The editor should look for inconsistent answers, which are sometimes so obvious that a little careful perusal may detect them. Such inconsistencies should be removed. Sometimes inaccuracies may be a result of the carelessness of the interviewer who may mark a wrong code or put the mark in such a way that it is not clear which of the two codes is intended. At times the respondent may give wrong or misleading answers deliberately. In all such cases the editor has to go over the answers carefully and try to remove the inconsistency in the best possible manner. Finally, one should check whether the interviewers have interpreted questions and instructions uniformly. While going through the questionnaires filled in by different interviewers (or respondents in case of a mail questionnaire), the editor would be able to make out such inconsistencies. In dealing with these three pointscompleteness, accuracy and uniformity, the editor should see that far too much time is not spent on trivial or relatively minor errors.
7.5 TABULATION _____________________________________________

Tabulation comprises sorting of the data into different categories and counting the number of cases that belong to each category. The simplest way to tabulate is to count the number of responses to one question. This is also called univariate tabulation. The analysis based on just one variable is obviously meager. Where two or more variables are involved in tabulation, it is called bivariate or multivariate tabulation. In marketing research projects, both types of tabulation are generally used.
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The tabulation may be done by hand or by machine or some part by hand and the other by machine. The number of tabulations will depend on the number of variables, while the number of responses to a question will depend on the sample size. If the number of variables in a survey is not large and the sample size is small, then tabulation by hand is preferable. On the other hand, when the number of variables involved is large as a result of which there may be several relationships and the sample size is large, it will, be more appropriate to opt for machine tabulation.
Hand tabulation
Normally, hand tabulation is carried out with the help of a tally sheet. Consider, for example, the following question: How many movies did you see last week? For a sample of say 60 respondents, the tabulation may be as shown below: Table 7.1 No. of movies seen Frequency
0 1 2 3
4 5 or more
imiiiii iiiiiiiiiiiiiu miiiiiiiiu iiiiiiiin iiiiini iiiii
9 15 13 10
8
60
The hand tally can also be used for preparing cross-classification tables. Consider, for example, the relationship between the economic status and the number of movies seen. It may be noted that the total column at the extreme right in the table below (table 7.2) contains the same figures as shown earlier in the case of straight tabulation, as in the case of Table 7.1.
Unit 7
Table 7.2 No. of Movies seen Rich Middle iiii limn 11 11 iii iI Poor iiiii iiiinii limn iiii iiiiii Total
0 1
2 3 4 5 or more
9 15
13 10 8 5
1iii 1 i iiii
60 Machine tabulation In the case of large scale surveys, where a good deal of data from a large number of respondents has been collected, hand tabulation will be bothersome and take much longer to complete. In such a case, the method of machine tabulation is used. For this purpose, mechanical sorting and tabulating equipments available with such concerns as the Hindustan Computers Ltd and Remington Rand are used. These equipments include key punches, sorting machines and tabulating machines. The main advantages of mechanical tabulation are: Extensive and large-scale survey can be handled conveniently. It takes much less time than hand tabulation. Greater accuracy in the sorting and counting is achieved with the help of machine tabulation. Monototly and drudgery of tabulation can be avoided by passing on this work to the machines. In the case of large-scale tabulation, mechanical tabulation eventually turns out to be cheaper than hand tabulation. Cross-tabulation, depicting the inter-relationship between two or more variables can be undertaken easily.
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One-way tabulation
A one-way table, from the first hand tally given earlier Table 7.1 while Table 7.2 shows both, the absolute frequencies and the percentage of respondents. Although it may not be necessary to give percentages, it is a good practice to include them, as they facilitate comparisons. The researcher should ensure that percentage figures add up to 100. He has also to decide up to what decimal place percentages should be given. Generally, figures may be given upto one decimal place. Rarely, if ever, do they need to be given to two decimal places. While such figures would be more accurate, they would also be more confusing to the reader. The guiding principle in reporting percentages is that unless decimals serve a useful purpose, they should be avoided. Sometimes only percentages are shown in the table and the corresponding frequencies are omitted. In such cases, it is necessary to indicate the total number of cases on which the percentages are based. Movies seen by sample respondent Table 7.1
No. of movies seen per week Number of respondent
% of respondent
0 1 2 3 4 5
9
' 15
15 25 22 17 13 8 100
13 10
8
5 60
Cross tabulation
It may often be necessary to tabulate responses to two or more questions simultaneously. Such tabulations are known as bivariate or multivariate tabulations, depending on whether two or more than two variables are involved. In constructing cross classification tables, one has to first determine which data should be given primary emphasis and which should be given secondary emphasis. Data with primary
Unit 7
emphasis are normally given in columns while those with secondary emphasis are shown in rows. This order is repeated for higher order tables, i.e., those having three or more dimensions. This convention is almost invariably followed because it is easier to see data when figures follow one another in a column rather than in a row. Table 7.3 : Is an example of cross-classification Income Level Shopping Centre A 100 120
220
Shopping Centre B 200 80

280
Total no. of house holds 300 200 500
UptoRslOOO Rs 1000 and above Total
Table 7.3 gives the break-up of respondent households, both by income level and by their preference for shopping centres. A table of this type is also known as contingency table. This is the simplest contingency table with two rows and two columns. The data contained in Table 7.3 poses an important question does the preference for shopping centres depend on the income level of households? To answer this question, it is necessary to analyse the two variables simultaneously. Data shown in Table 7.3 can be transformed into percentages and then these percentages alone can be shown or they can be shown side by side with the original data. The question in a two-way tabulation is that which base should be used for 100 per cent, as the data maybe percentaged in either dimension. Percentages should be based on totals of rows or columns, whichever is relatively more important. One simple rule in this regard is the cause and effect rule. , This rule states that the percentages should be computed in the direction of the causal factor. Table 7.4 and 7.5 give these data. Table 7.4: Income levels and preference for shopping centres % Income Level UptoRslOOO Rs 1000+ Shopping Centres A 33 60 B 67 40 100 100
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Table 7.5 : Income levels and preference for shopping centres %

Income level Up to Rs 1000 Rs 1000 and above Total Shopping centres A Shopping centres B
45 55 100
71 29 100
In the above example, income level appears to be the causative factor, which should influence the preference for shopping centres and not the other way round. Thus, the percentages should be computed in the direction of income level or across shopping centres. Table 7.3 presents these percentages and suggests that the choice of shopping centres is affected by the income level of households. This table indicates that 67 per cent of households in the lower income level prefer shopping centre B as against only 40 per cent of households in the higher income level. Further, 33 per cent of households in the lower income level prefer shopping centre A as compared to 60 per cent of households in the higher income level. It is apparent from Table 7.3 that there are marked differences in the choice of shopping centres on account of differences in household incomes. Sometimes, the cause and effect rule leads to the conclusion that percentages might be computed in either direction. In such cases, the researcher has to use his direction. It may also be noted that the cause and effect rule is not always applicable. It may be advisable in a particular problem to compute percentages in a certain direction, but the data might not permit the researcher to do this.
Computer Processing
The use of computers in data processing has increased at a fantastic rate during the past decade. On account of the rapid use of computers in varied spheres it is said that human civilisation has entered the second industrial revolution. The first industrial revolution freed man's muscles; the second is freeing his mind for more challenging pursuits. However. processing of data by computers may not always be economically beneficial. It is, therefore necessary to know when computers should be used. In the processing of data, computer^ may be used most efficiently if the processing operations have one or more of the following characteristics.
I
Large volume of input: "When a large amount of data needs to be processed, computer processing may turn out to be more economical as compared to other methods of dat; processing.
Unit 7
Repetition of projects: When repetitive projects are undertaken by an organisation, the use of the computer for processing data is advisable. In such cases too, computer processing will generally be cheaper than its use in individual projects. Desired and necessary greater speed in processing: When information is needed in alimited time, manual processing of data should be given up in favour of computer processing because of its unbeatable speed: Desired and necessary greater accuracy: There are likely to be mistakes in data processing by manual methods. Computer processing will be more accurate provided sufficient care has been exercised in planning the task. Processing complexities that require electronic help: When a number of interacting variables are involved in the data, the computer will be most appropriate. Certain analytical tools such as linear programming, business simulation, factor analysis and discriminant analysis generally require the use of a computer. The figure given below shows the average cost relationships of the different methods of data processing. card Average cost, Average cost in rupees Average cost, manual Average cost, machine-assisted manual \ "C" Average cost, punched computer
Fig. 7.1
The diagram shows that at point A there is a break-even cost position between manual and computer processing of A' volume of data. Beyond this volume, if data is to be processed, the use of the computer will be more economical. Likewise, points B and C are other break-even points. Point B shows the break-even cost position between machine-assisted manual processing and computer processing. Thus, it may be more economical to use the machine-assisted manual method of data processing when the volume of data to be processed is up to B.
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The use of computers for data up to B volume will be costlier. Beyond this point, the computer is more economical. However, when the volume of data is beyond B but up to C, we find that another method of data processing, namely, that of punched cards turns out to be more econimical than computer processing. In other words, the computer should be used when the volume of data to be processed is quite large, in this case beyond C'. It may be noted that these average cost curves are not stable and they frequently change on account of changes in clerical labour rates and the cost of clerical office supplies. Over the years, there have been significant increases in clerical labour rates and the cost of clerical office supplies. Such increases have shifted the manual methods cost curve upward. Side by side, there have been innovations in computer hardware. Such innovations have shifted the computer cost curve downward. These shifts in the cost curves have, on the whole, made computer processing more , attractive for lower volumes of data processing. In general, the suitability of methods can j be judged on the basis of the volume of data processing.
7.6 SUMMARY _________________________________________________

It may be pointed out that data processing is generally not given sufficient and advanced attention in research investigations. This has resulted in the poor quality of data and poor interpretation. It is desirable to have careful planning regarding how data processing will be done, preferably at an early stage. In fact, the pre-testing of a questionnaire can be ven helpful in determining the suitable code categories for the different responses. Designing of data forms is equally important. s, j
':: }|
It may be emphasised that data processing can turn out to be both time consuming and expensive if sufficient and timely attention is not given to its various aspects. Above all, sound common sense coupled with experience is needed in ensuring the processing of data accurately.
7.7 KEYWORDS
Validate: make valid Ambiguous: double meaning
Unit 7
' Monotony: lacking in variety Drudgery: uncertain

*"*,*
Ql. Explain data processing in your own words. Q2. What are the different steps involved in data processing? Q3. What is coding? Q4. Distinguish between one way tabulation and a cross tabulation. Support your answers with your own examples. Q5. Prepare a two way tabulation using ^ a) Income level and ownership of a microwave oven. j *' b) Use of a newly introduced cell phone from Nokia.
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8.1 INTRODUCTION
In the preceding units, we have discussed almost all aspects that a marketing researcher needs to know in order to carry out his assignment successfully. At this stage, it may be mentioned that the analysis of data does not provide the answers to research questions. This suggests that something beyond analysis is necessary. Before the marketing researcher prepares his report on the research done by him, he has to draw specific conclusions from the data analysed earlier. This brings us to the interpretation of data, and as to how the data is to be analysed and interpreted. This is very important as we have to calculate the mean, mode and the median of the frequencies. Let us discuss these in detail. 8.2 NATURE OF INTERPRETATION _________________________________ Interpretation means bringing out the meaning of the data. Interpretation requires both, quantitative and logical skills. Logical thought process uses two types of reasoning; inductive and deductive reasoning. Inductive reasoning leads from a particular instance to a general principle while deductive reasoning moves from general principle to the specific case. A classic example of deductive logic. "All men are mortal" (major premise) " Socrates is a man" (observed fact) Therefore, "Socrates is mortal" (inferred conclusion) Data analysis and interpretation are closely interrelated. Improper analysis will lead to ' incorrect interpretation. For a logical concrete and helpful interpretation the following things must be kept in mind. 1. 2. 3. 4. 5. The interpretation should be honest and undistorted. The objective and fundamental principle should always be dealt first. Small samples have their limitations and hence cannot be generalised for a large population. Infrequent answers should not go unnoticed. Evidence should be recorded without bias.
Unit 8
Data Analysis and Interpretation
6. Cause and effects, opinions and facts should not be confused or misplaced with each other. 7. Averages are merely tendencies, not generalisations. Data can be interpreted into a logical form using statistical techniques. Statistical analysis is the refinement and manipulation of data that prepares them for the application of logical inference. Interpretation means explanation or finding out the meaning. It involves drawing inferences from the analysis of data. Interpretation and analysis are closely interlinked. Analysis of data often includes a simultaneous interpretation of the results. Interpreting data in proper perspective is very important. In order to do so, the researcher should possess a high degree of skill and exercise the utmost care and objectivity. To begin with, the researcher must ensure that the data collected is reliable and adequate for drawing interferences. If the data suffers from inadequacies, then even the best of the methods used in analysis and interpretation will be rendered useless. Any research that is based on sampling is naturally subject to a sampling error. In a sample survey, there is a general tendency on the part of the researcher to jump to conclusions or generalisations. Finally, it must be remembered that the data is analysed related to a single point of time in the past. As such, the situation might have undergone a change and one must not be rigid in adhering to the same results where the situation is a dynamic one. These are some of the major flaws that might occur in the interpretation of data. The problems specified above are merely illustrative. The marketing researcher should take care to avoid such mistakes otherwise he would reach wrong conclusions. Having emphasised the need for proper interpretation of data, we now turn to report writing. The rest of this chapter provides broad guidelines; for the preparation of research reports. 8.3 OVERVIEW OF DATA ANALYSIS PROCESS Assemble the data 1 Bringing data into order (Arrays, tabulations, establishing categories, percentage) A I
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Summarise the data (Measure central tendencies, Dispersion, Graphical presentations) Select appropriate analysis method
Examine difference Analyse experimental Data Investigate Associations
Source - "Luck and Rubin"

Tabulation: The arrangement of data items in a numerical sequence, in either ascending or descending order is called an array. Tabulation can take two forms namely a) simple or b) cross tabulation. A simple tabulation shows the distribution of one variable at a time whereas in a cross tabulation the relationship between two or more variables can be studied simultaneously, f Simple tabulation for example,
Number of respondents reading magazine Magazine Number of respondents % of respondents
A B C D E
10 15 25 45 5
Base= 100 Respondents
10% 15% 25% 45% 5%
Bivariate (two variables) tabulation
Household size
Consumption of >5 2-5 <2
1-2 15 10
5 7
3-4 25 15
12 13
> 5 27 23 11
Unit 8
8.4 STATISTICS ASSOCIATED WITH FREQUENCY DISTRIBUTION After the collected data have been processed, it is necessary that these data are analysed. As there are several statistical techniques available to do this, the researcher has to decide which of them he will use. In fact, a decision in this respect is called for even before the data collection has begun so that those techniques can be used properly. Measures of Central Tendency I The principal measures of central tendency are the arithmetic mean, the median and the * mode. The arithmetic mean should be used in case of intervalled or ratio-scaled data. It is obtained by adding all the observations and dividing the sum by the number of observations. In case of afrequency distribution, the arithmetic mean is obtained by the following steps: a) the mid-point of each class interval or category is multiplied by the number of observations (called frequencies) in that class,
&?'
b) the resultant values are summed up, and the total thus obtained is divided by the total number of observations. Symbolically,
n
where X = the sample mean fi= the frequency of the i* class xi = the mid-point of the i* class h = the number of classes n = the total number of observations in the sample For a population mean, the formula is:
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N where,
the Greek letter n = the mean of the population N = the total number of observations in a population
The mid-point is a good approximation of the true mean of the class. This is based on the assumption that the values are distributed fairly evenly throughout the interval. When a large number of frequencies occur, this assumption is usually acceptable. A short-cut method by taking arbitrary mean is followed. The formula for calculation of the arithmetic mean by the short-cut method is as given below:
X=A+where
xC
A = arbitrary or assumed mean fi = the frequency of the ith class di = deviation from the arbitrary or assumed mean C = common factor (or size of the class interval) Some of the important characteristics of the arithmetic mean are: 1. The sum of the deviations of the individual items from the arithmetic mean is always zero. This means ^ (X - X) = 0, where X is the value of an item and X is the arithmetic average.
Unit 8
Since the sum of the deviations in the positive direction is equal to the sum of the deviations in the negative direction, the arithmetic average is regarded as a measure ofcentrality. 2. The sum of the squared deviations of the individual items from the arithmetic mean is always minimum. In other words, the sum of the squared deviations taken from any value other than the arithmetic mean will be higher.
'':
3. As the arithmetic mean is based on all the items in a series, a change in the value of any item will lead to a change in the value of the arithmetic mean. 4. In the case of a highly skewed distribution, the arithmetic mean may get distorted on account of a few items with extreme values. In such a case, it may cease to be the representative characteristic of the distribution. The median is the measure of the central item when all the items in a series are arranged either in ascending or descending order of magnitude. Thus, in an ungrouped frequency distribution, if the n values are arranged in ascending or descending order or magnitude, the median is the middle value if n is odd. When n is even, the median is the mean of the two middle values. For a grouped series, the median is calculated by linear interpolation with the help of the following formula:
M - t 2 + Â(M - c)
where, M= the median i = the lower limit of the class in which the median lies ^2 = the upper limit of the class in which the median lies f = the frequency of the class in which the median lies m = the middle item or n/2 c= the cumulative frequency of the class preceding the one in which the median lies. Some of the important characteristics of the median are:
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1.
Unlike the arithmetic mean, the median can be computed from open-ended distributions. This is because it is located in the median class interval which would not be an open-end class. The median can also be determined graphically whereas the arithmetic mean cannot be ascertained in this manner. As it is not influenced by the extreme values, it is preferred in case of a distribution having extreme values. In case of the qualitative data where items are not counted or measured but are scored or ranked, it is the most appropriate measure of central tendency.
2. 3. 4.
The mode is another measure of a location of a frequency distribution. It is the value at the point around which the items are most heavily concentrated. In case of a grouped series, it is determined by the following formula:
Mode = L + where
(f, - f 0 ) - (f t - f 2 )
X1
^ i = the lower value of the class in which the mode lies f j= the frequency of the class in which the mode lies ffl= the frequency of the class preceding the modal class f 2= the frequency of the class succeeding the modal class i= the class interval of the modal class Some of the important characteristics of the mode are: It can be applied to both qualitative and quantitative distribution. It remains unaffected by the extreme values in the distribution. It can be ascertained in an open-ended distribution.
The most commonly used statistics for measure of location are the mean, mode and median. For variability is range, standard deviation and the coefficient of variation.
Unit 8
The measures of location i.e. the measure of central tendency tend to describe the centre of distribution. If the entire sample is changed by adding a fixed constant to each observation, then the mean, mode, and median change by the same fixed amount. Mean: The mean or average value is most commonly used central tendency. It is used to estimate the mean when the data have been collected using an interval or ratio scale. The data should display some central tendency, with most of the responses distributed around the mean.
x =
X= arithmetic mean x = midpoint of each class f= frequencies in each class Y; = sum of the values Mode: is the value that occurs most frequently. It represents the highest peak of distribution.
M =L
o mo
(i)
M =mode
0
L, = Lower limit of the modal class

Mo
d, = difference between the frequency of the modal class and the frequency of the class immediately preceding it in distribution. d2 = difference between the frequency of the modal class and the frequency of the class followingit. (i) = size of the interval of the modal class. Median: Median is a measure of central tendency, which tends to be the average, most typical of all values in distribution, as it is the item which lies precisely halfway between the highest andjowes^value. It is essefltialjoârrange the data into ascending or descending order before selecting the mectianâluil^
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Lmd + (N/2)-CF md = find

md = Median Lmd = lower limit of median class N = Total number of frequencies in the distribution CF = cumulative frequencies for the class immediately below the class containing median find = frequency of the median class i= size of the interval of the median class Measures of variability : A statistics that indicates the distribution's dispersion or the spread of observations are as follows. 1. Range : is the simplest measure of dispersion. It is the difference between the largest and smallest value of a distribution. Range = X largest - X smallest 2. . Variance : The mean squared deviation of all the values from the mean. 3 Standard deviation : is the square root of the variance.
(i)
6 = VN -i
x = Standard deviation = value of observations u =
= mean of the observations N Total number of observations
The standard deviation of a sample is calculated as
6=
-i
Unit 8
x = value of observations
viS
where X = mean of the sample n=total number of observations in sample For grouped data the formula is
fx* - (fxf
6 = VN-I
x=midpoint of class f=class frequency Coefficient of variation: It is the ratio of standard deviation to the mean expressed as a percentage. The coefficient of variation is useful if the variable is measured on a ratio scale. S CV = ---------(100) X CV = coefficient of variation S X = Standard deviation of the sample = Mean of the sample
8.5 MEASURES OF SHAPE _____________________________________

Besides the measures of variability, measures of shape are also useful in understanding the nature of distribution. The shape of a distribution is assessed by examining skewness and Kurtosis. Skewness: A characteristic of a distribution that assesses its symmetry about the mean. Mean Mode Median
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Kurtosis: It is the measure of relative peakedness or flatness of the curve defined by the frequency distribution. The kurtosis of a normal distribution curve is zero.
Statistical analysis appropriate to the level of measurement scale

Type of scale Nominal Ordinal Interval Ratio Appropriate Average Mode Median Arithmetic Mean Geometric mean Appropriate measure of dispersion None Percentile Standard deviation Coefficient of variation Appropriate measurement of correlation Contingency Coefficient Rank correlation Coefficient of correlation Test of significance Chi-square test Sign test T-test or F-test
All of the above All of the above
Source : Sidney Siegel, Nonparametric statistics for the behavioural science 8.6 MEASURES OF DISPERSION __________________________________
So far the discussion was confined to the measures of central tendency. Although these measures are useful, they alone are not sufficient as they give a very inadequate description of the sample data. This is because the measures of central tendency are not concerned with the variability in a distribution. For this purpose, some other measures are used. These measures are the range, the mean deviation, the standard deviation and the variance and they indicate how the data are spread out. As the last two of these measures are frequently used, the discussion below is confined to them. The formula for calculating the standard deviation in case of an array of data is
8 where
CT = standard deviation
xi = the value of the ith observation

UER
Unit 8
|a=themean N=the total number of observations The formula for the standard deviation computed from data in a frequency distribution is N IT = where fi = the frequency of the ith class
xj = the mid-point of the ith class h = the number of classes and all the other symbols are the same as in the previous formula. The variance is the square of the standard deviation and is calculated by the same formula with the square-root sign removed. When the two series given in different units of measurement are to be compared, the standard deviation will not be suitable. In such a case, the coefficient of variation is computed for each series. The formula for the coefficient of variation is
where C is the coefficient of variation, CT is the standard deviation and |a is the arithmetic mean Since, a and u are both measured in the same units, their ratio a /|u is a pure number and does not have any unit of measurement. A comparison of the two coefficients of variation will indicate which of the two series having di f ferent units of measurement has greater variability. 8.7 SUMMARY _ ' _
After collection, data has to be processed. It is necessary that this data is analysed properly. For analysis, several statistical techniques are available which we have already studied in this unit. The researcher has to decide which of them is to used for his study. In fact, the
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decision in this respect should be thought of even before the collection of the data. Once the objective of the study is clear, then the right techniques to be used have to be decided. In this unit we have studied the techniques which are all related to the analysis of the data and the measures of the central tendency where the principal is mean, mode and median. 8.8 KEY WORDS ________________________________________________ Deviations: turn aside Coefficient: quantity placed before and multiplying an algebraic expression Dispersion: being dispersed 8.9 SELF-ASSESSMENT QUESTIONS Ql. What are the characteristics of arithmetic mean? Q2. What are the characteristics of mode? Q3. What are the characteristics of arithmetic median? Q4. Explain the steps involved in the data analysis process. Q5. What is coefficient of variation?
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9.1
INTRODUCTION
__________________
Regression Analysis is an important multivariate technique, which attempts to ascertain the relationship between a given variable and a number of other variables. It is the most widely applied technique amongst the analytical models of association in market research, e.g. A marketer believes that a consumers' purchase intent is affected by her/his attitudes. Purchase intent=Function of (Attitude 1, Attitude 2 ............. n) For the purchase of coffee could be .
Purchase intent=Function of (Taste, flavour, colour, price, pack, .......) To know the precise nature of this relationship one needs to do the regression analysis. I Regression analysis can be done with one dependent variable and one independent variable (simple regression) or with one dependent variable and several independent variables.(multiple regression) Regression assumes that independent variables take fixed values and can be measured on any scale. i
i
Dependent variables must be measured on a ratio/interval scale. Dependent variables can be expressed as a linear function of independent variables,
Let us take a simple illustration of one independent variable (variable x= advertisement expenditure) and one dependent variable (sales=Y). The linear relationship will be as shown in the graph. Y=Retail sales of consumer product (in thousands of unit for defined time period) X=Advertising expenditure (in lakhs of rupees during the same time period) N=Number of markets from where the sales data has been obtained The relationship between the two variables will be expressed by the simple regression equation.
:
Unit 9
Multivariate Analysis
where a=expected values of sales at X = 0 b = average change in sales per unit change in advertising expenditures. Also called the coefficient of gross regression of Y on X.
Y C =Sales
forecast for given value of b

yx
We have to find the values of a and b in this equation such that the deviations between the ., original observations and calculated values of the dependent variable measured by the following formula are at a minimum. where
i "
= value of sales in the ith market yc2
| Y.
= variance yc = standard deviation of regression For obtaining the values of a and b in this average linear relationship between the variables, the method of ordinary least squares is used. Given below are the standard statistical formulae, which are used in this method. The least squares
Covariance (y, x)
Coefficient of gross b =
Variance (x) Regression =
yx
Once the value of b is calculated, it can be substituted into the following formula to obtain the least-squares estimate of the intercept.
a=Y-b
yx
Once the values of a and b are known, we can form the regression equation
yx
Y=a + b
c yx
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For a defined value of X (advertising expenditure), we can obtain the sales forecast yc. The multiple regression using two independent variables and a dependent variable will give an equation. Y =a + b
c yx
.z +b
x yz
. x
z
With the past data available, values of a, b

yx
.z and b
yz
. x will have to be obtained. The
mathematical operations become more complex with increase in the number of independent variables.
Points to Ponder
Equations should be validated statistically in multiple regression analysis.
i
If the past observations are too less than the usage of independent variable gets restricted. If independent variables are highly correlated among themselves they are facing the problem of multicollinearity. One way to overcome multicollinearity is to drop certain variables from the model if the corresponding standard error of regression coefficient is unduly large. When the variables are too many and the analysis is getting complex, stepwise regression should be followed. A limitation with regression forecasting is that independent variables must be forecasted first before forecasting the dependent variable.
Thus, regression equations can be used for problems involving prediction and forecasting. It helps study how much of the variation in the dependent variable is explained by the set of independent variables.
9.2
CONJOINT ANALYSIS ______________________________________
Conjoint analysis attempts to determine the relative importance consumers attach to salient | attributes and the utilities they attach to the levels of attributes. The consumer is presented the stimulus in the form of totality of the product and not asked to score individual attributes separately. However, the stimuli is created by the researcher himself unlike multi dimensional scaling where attributes to be studied previously exist.
Unit 9
'
the stimuli created is typically used to identify the most desirable attributes in a product or service. Consumer preferences can be evaluated through the 'trade off' of attributes made by them. applies complex Anova techniques to the preference data obtained from the respondents. A value (utility) is calculated for each feature. Features with highest value are considered most important to the respondent. is applied to categorical variables, which reflect different features of the product under consideration. identifies interdependences among variables. measures the relative importance of various combinations of the features/attributes.
Assumption i A consumer has to choose from multi feature products or options. An individual is capable of ranking options on basis of some criterion. Ranking involves complex trade offs i.e. to obtain certain desired quality product attributes some other attribute will have to be compromised.
Utilities Conjoint analysis generates utilities for each level of each attribute for every individual respondent. When the utility of one attribute is added to utility of another attribute(s) the sum for combination displays good correspondence with that combination position in the respondent's original preference ranking. A respondent's first preference is supposed to have the highest utility, the second preference the next largest utility and so forth. A feature what a respondent is reluctant to forego is considered to have high utility. Utilities indicate the relative importance of each attribute level or feature. Utilities are arrived through iterative techniques, trying to fit different numbers, using a predetermined logic to satisfy the requirements as stated below.
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a. b. c. d.
Identify the utilities for each attribute level included in an alternative. All utilities must be added for all attribute levels included in that attribute. Ranking of total utility is done from highest to lowest level. To check ranking is similar to ranking obtained, respondent could be asked to rank product features in a 10 point scale. Utilities based on relative preferences for combinations may not match expressed preferences if combined utilities of two or more combinations are similar. If utilities are consistent across respondents then the standard deviation of scores of each level of attribute must be studied.
e.
f.
Example
Attribute Utility Relative importance
A B C D E F G H
Combination
BAD (1.8+1.2+3.1+2) H ACEG AEFG BDEF GFDC (3.9+4.5+3.1+1.15) CDEF
1.2 1.8 1.5 3.1 2.5 4.5 3.9 2.0

Combined
8 6 7 3 4 1 2 5
Relative preference 6 Least preferred
8.1 9.1
12.1 11.9 13.0 11.6
5 2 3
1 Highest preferred
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9.3 APPLICATIONS AND PROBLEMS OF CONJOINT ANALYSIS Conjoint analysis has been used in marketing for varied uses. Market Segmentation: Through conjoint analysis individual customers identity can be retained and consumers with homogenous preferences can be targeted as a segment. Competitor's vulnerability can be detected and at the same time self-cannibalization effect of additional new products can be studied. Estimating market share of brands: Utilities derived from conjoint analysis can be used as input into a choice stimulator to determine the share of choices and hence share of brands. Optimum product design: Brand features can be varied in terms of attribute level and corresponding utilities. The Brand features yielding the highest utility indicate the composition of the most preferred brand. Company's product can be measured with competitor's product and what attribute changes is likely to lead the company into can be studied. Relative importance of attributes in the consumer choice process can be determined. Companies can differentiate customers as' loyals', 'acceptors' and' switchers' for more accurate brand equity calculation. Conjoint Analysis enables companies to conduct brand swot analysis. Problems in using conjoint analysis 1. Conjoint analysis assumes that the most important attributes are included in the study. 2. It assumes the addivity of utilities for combination of attributes. 3. Problem could arise with the appropriateness of the levels or features used for each attribute in the study. Decisions could be taken which do not capture the utility adequately. 4. Validating the model is quite difficult as it is relatively new. 5. It may be difficult to ascribe and describe attributes for certain products. Researches have indicated that a lot of consumer and industrial goods companies are relying on conjoint analysis for product attribute development within the given cost structure of the product possible for the company.
I
Wip
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9.4
FACTORANALYSIS ________________________
Factor analysis is a multivariate statistical technique that uses a class of procedures for data reduction and summarisation. Unlike regression the entire set of interdependent relationships are examined. 1. 2. Uses an advance form of correlation analysis to the responses. Variables that are interrelated / similar are reduced to smaller numbers of uncorrelated factors, e.g. Variables
Factor Output
Good employee
Input
Punctual Trustworthy Knowledgeable Disciplined Self-initiated
^ 3. The model is primarily based on linear relationship through which factor loading is derived. 4. Factor Analysis is performed on intervally scaled or continuous variables.
Three important measures

1. Variance: Factor analysis tries to best fit the factors in a scatter diagram in such a way that explains the variance associated with the response to each statement. ,
2.
Standardisation of response
Individual's Standardised = response Score on a statement Standard deviation of the total responses to the statement Individual's actual to the statement mean of total responses to the statement
Unit 9 *
Multivariate Analysis " ' .

I
3. Correlation coefficient: This analysis computes correlation coefficient associated with the standardised scores of the responses to each pair of statement. Factors are generally uncorrelated to each other.
Factor Analysis Model

Factor Loading is the correlation between a factor and a variable (the statement's standardised response score). The greater the value of factor loading, the better is the fit of the factor to the data from the concerned statement. These loadings have a lower limit of-1.0 and an upper limit of+1.0. Eigen value: Each factor has an eigen value. It is the measure of variance explained by each factor. A factor's eigen value is the sum of squares of its factor loading. Communality is the amount of variance a variable shares with all other variables included in the analysis, e.g. Factor Eigenvalue Explained Variance Statements 1 2 3 4
5* 5
Communality 2 1.32 0.26 0.06 0.14 0.25 0.86 0.70 3 0.60 0.12 0.11 0.24 0.10 0.18 0.70 0.84 0.87 0.64 0.81 0.99
1 2.23 0.45 0.91 0.89 0.75 0.20 0.10
In the above example Fl is a good fit on statements 1 , 2 and 3 but a poor fit on 4 and 5. This could possibly show that statements 1-3 measure same basic aspect. InFl eigen value = (0.91)2 + (0.89)2 + (0.75)2+(0.20)2 +(0.10)2 = 2.2371
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3. Correlation coefficient: This analysis computes correlation coefficient associated with the standardised scores of the responses to each pair of statement. Factors are generally uncorrelated to each other.
Factor Analysis Model

Factor Loading is the correlation between a factor and a variable (the statement's standardised response score). The greater the value of factor loading, the better is the fit of the factor to the data from the concerned statement. These loadings have a lower limit of-1.0 and an upper limit of+1.0. Eigen value: Each factor has an eigen value. It is the measure of variance explained by each factor. A factor's eigen value is the sum of squares of its factor loading. Communality is the amount of variance a variable shares with all other variables included in the analysis, e.g. Factor
Communality 2 1.32 0.26 0.06 0.14 0.25 0.86 0.70 3 0.60 0.12 0.11 0.24 0.10 0.18 0.70 0.84 , 0.87 0.64 0.81 0.99
1
Eigenvalue
1
2.23 0.45 0.91 0.89
Explained Variance Statements
1 2
V
3
4
0.75 0.20 0.10
*'
5
In the above example
Fl is a good fit on statements 1,2 and 3 but a poor fit on 4 and 5. This could possibly show that statements 1 -3 measure same basic aspect. InFl eigenvalue = (0.91)2 + (0.89)2 + (0.75)2 + (0.20)2 + (0.10)2 = 2.2371
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Communality Statement 5 =(0.10) 2 +(0.70) 2 +(0.70) 2 = 0.99

How many factors should be used? (Number)
Since factor analysis is designed to reduce many variables to fewer underlying factors, a critical question is how many identified factors should be used. These are few of the approaches to number determination. A prior determination: The researcher knows how many factors to be expected and thus can specify in the computer programme the number of factors to be extracted. Based on Eigen Values: Factor with eigen values greater than 1 are retained and the others are excluded from the model. Based on variance percentage: In this method the cumulative percentage of variance i extracted by the factors should reach a satisfactory level. A satisfactory level will depend I on the problem. However, factors extracted should account for at least 60% of the variance, Based on split half reliability: The sample is split in half and factor analysis is performed on each half. Only factors with high correspondence of factor loadings across the two sub samples are retained. Based on significance test: The statistical significance of separate eigen values should be obtained and only those factors should be retained which are significant.
9.5 MODEL, APPLICATION AND LIMITATIONS OF FACTOR ANALYSIS
1. 2. 3. 4.
Factor analysis can be used for market segmentation studies. Determining brand attributes that influence consumer choice. Understand media consumption habits of target market e.g. frozen food users watch cable channels. Identifying price sensitive consumers for pricing studies.
Limitations of factor analysis 1. How many factors should be employed for reducing the data? It is quite a subjective decision.
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2. What criteria should be used in establishing that number is a complex question. 3. Labelling of factors is purely intutive and subjective. 4. Sometimes, different factor analysis procedures may give different results. Despite the limitations like all mathematical models the usefulness of factor analysis cannot be undermined.
9.6 CLUSTERANALYSIS _______________________________________

Cluster analysis is used for market segmentation. Through this technique objects/cases are classified into relatively homogeneous groups called clusters. Objects in a cluster are similar to each other but tend to be dissimilar with other clusters. Cluster analysis has been used in marketing for the following purposes. 1. Segmenting the market on the basis of benefit sought from the product. 2. Understanding buyer's behaviour. 3. Identifying new product opportunities. Brands in the same cluster tend to compete more with each other than product falling under different clusters. 4. Selecting test markets for various marketing strategies. 5. Making data manageable by clustering and reducing individual data study. Clusters can be made by buildup (combine entities) techniques or teardown (divide entities to form clusters) techniques.
Variable 2 A practical clustering Variable 1 An ideal situation clustering situation

Conducting cluster Analysis Define Inputs Compute distance Select a clustering procedure 1
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Decide the numbers of clusters 1 Interpret the cluster profile 1 Assess validity
5 , ' ,, ^
1. Define inputs: Selecting the variables on which the cluster would be based is the most important part in cluster formation. Variable could be demographics (age, sex, income, geographic location), psychographic (activities, interest, opinions) ormulti factors. Companies must identify their own product capabilities, financial strength, distribution strength and who are they going to serve. e.g. washing powder Rank Foams well Cleans well Respondent 1 6 5 Respondent 2 86
2. Computing distance: Similarity is measured in terms of distances between pairs of objects. Lesser the distance greater is the similarity. The two methods of computing the distance are as given below. a. City block metric: In this method the difference in ratings for each attribute1!1; added.
Foams well Cleans well
Rl 6 5
R2 8 6
Difference
2 1
The distance = 3
b. Euclidean distance
Distance In this cased
Add the (difference)2 (2) 2 + (l) 2 5 2.2

4.
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3.
Select a clustering procedure Clustering
Hierarchical (New clusters are based on previously formed clusters) Agglomerative (groups objects into bigger and bigger clusters) -Linkage -Variance Centroid method Divisive (Dividing into smaller and smaller clusters)
Non Hierarchical or K means clustering (Clusters are created new at each stage) Sequential Threshold Parallel Threshold Optimising Partitioning
Hierarchical methods Linkage methods K - mean / nonhierarchical clustering

a. Segmental threshold method : A nonhierarchical clustering procedure determines a cluster centre and then groups all objects within a prespecified threshold value from the centre. b. Parallel threshold method: Several cluster centres are specified at once and all objects that are within a prespecified threshold value from the centre are grouped together. c. Optimising partitioning methods: This method allows for later reassignment of objects to clusters to optimise an overall criterion. 4. Decide the number of clusters: There is no thumb rule to decide on the number of dusters. However, some methods used for deciding numbers are as follows: a. Theoretical, or practical considerations may suggest some number. b. The distances at which clusters are combined can be used as a criteria. 185
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c.
Relative size of clusters could be meaningful. There is no point in having a oneobject cluster. In non-hierarchical clustering, the ratio of total within-group variance to between group variance can be plotted against the number of clusters. The point at which a sharp bend occurs usually indicates an appropriate number.
d.
5. Interpreting the cluster profile: This involves examining the cluster centroid. The j centroid represents the mean value of the objects contained in the cluster on each of j the variable.
Assessing reliability and validity

Formal procedures for assessing reliability and validity of clustering solutions are complex j and not fully defensible. Hence, validity of results could be checked by, using different ] methods of clustering and comparing results, splitting clusters into two sub samples from centroid and performing the cluster again or deleting variables randomly to check result of j reduced set of variables. Some factors to be considered while using cluster analysis technique are as follows: Limited number of cluster can be considered by a company due to limitation of market] potential within a cluster and the difference between the clusters may not be I marked. Characteristics of clusters may change over a period of time owing to socioecon changes. Clusters are not water tight compartments. Flows between clusters may take p e.g. People liking product X in cluster A and may also like product Y. Evaluating the quality of cluster is difficult and so is the selection of clustering criteria Clustering is based on the assumption of similarity between objects and there is j| theoretical justification and basis for structuring objects into clusters. Clusters are used for further development of marketing strategies especially in c of product development, advertising and pricing strategies.
It can thus be concluded that cluster analysis is a scientific method that helps to s number of attitude and behavioural variables for market segmentation.
Unit 9
9.7 MULTI-DIMENSIONAL SCALING (MDS) Multidimensional scaling is a statistical technique that represents perceptions and preferences of respondents as points in a geometric space. It is a special representation of relationship. MDS involves two process namely. Identification of attributes/dimension on which consumers perceive or evaluate objects. The arrangements of objects with respect to dimension. Multi-dimensional scaling Attribute data Similarity \ Non attribute data Preference
MDS does not explain the perception about brands but represents psychological relation among stimuli. The psychological dissimilarity is represented as geometric distance. The advantage of MDS lies in the fact that both metric and non-metric techniques can be used. When the input data is interval-scaled or ratio-scaled, it is called as metric MDS. When input data is in nominal or ordinal form it is called non-metric MDS. Whichever method of MDS one selects, it does not change the relative distance of the points. Data input could vary. i. Single mode, two-way data
1 2 3
Brands
E{
B,
Here, n (n-l)/2 pairs are evaluated
2. Two mode, two- way data A3 Brands B, B2 B, Attribute
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3.
4.
Single mode, two-way data: When research data is converted into geometric distance and arranged in a space, the closer the brands means greater similarity and vice versa. In this picture there are 10 brands. A3 and A4 are similar to each other and different from others. i Two mode, two-way data: Here brands are located on attribute vectors. Products can be compared on both 'objective' and 'perceived' attributes. Buyers perceptions are a sum total of company's product, competitor's products, advertising, after sales services etc. In term a composite whole other than just the company's product. Hence, the 'perceived' and 'objective' dimension may not be necessarily the same.
e.g. 50 MBA students were asked to compare six leading companies where they would like to be employed on various criterion like salary structure and growth opportunity, reputation, nature of work, posting location, office hours etc. The companies were to be marked on similar/dissimilar attributes. The results were gathered and analysed on multidimensional scaling software. The two most important parameters that emerged were salary and growth opportunity. Growth opportunity High Salary Company offering higher salary and high growth opportunities for employment were preferred.
Uses of multi-dimensional scaling
c)
MDS has been used to measure image of the company. This helps in knowing perceptions of customers and non-customers and the difference with the perceptions of the company itself. Market Segmentation: Companies can identify groups with similar perceptions and preferences and modify their product offerings to an' ideal' requirement of tk customer. Vendor evaluation: has to be done to select the best supplier for various compan purchases. Vendors can be evaluated for price, reliability, credit, technical suppon and timely deliveries. I
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New product development: Identification of spatial gaps in the product percepfiffl' maps can help develop new products for the target consumers.
Unit 9
Assessment of advertisement effectiveness : Assessment of advertisement is possible through perception maps. It can be adjudged whether the brand message has been rightly received and brand positioning achieved. Test marketing: Cities with similar demographic characteristics could be identified to assume national response and test marketing in these select cities can be done. Product life cycle: Current perceptions about a product can be studied in relevant segment and products which are registering declining sales curve can be repositioned with required alterations. Advertising Media Selection : Target audience could be located at their ideal point and different media could be identified in their similarity space to choose the media for advertising. Pricing analysis : The impact of pricing can be studied through comparison of spatial maps with and without pricing information. There exist certain limitations in the usage of this techniques. They are as follows: ft a) Conceptual problems: Accurately defining similarity and preference and communicating exactly to respondents seems non-achievable goal. b) Computer programmes aid MDS. Different programmes used for analysis may have different distance functions. c) The data collection process is subject to bias as respondents preferences are a subjective issue. Despite its limitation MDS is a popular, technique used by students and marketers alike. >& Activity A; Study the products and consumers of a company you are familiar with and develop a cluster of customers depending on their different requirements.
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9.8
SUMMARY
In this unit, we have studied the different types of statistical techniques which are been used for the analysis of data. Now the question arises into our minds, why statistics is used? Collection of data or designing of questionnaire is a part of survey, but at the same time when the technique that will suit our study and the objective of the study has to be fulfilled, it might be the conjoint analysis or it might be multidimensional scale etc. but to fit the exact variable and dependent variable, we need to know the correlation analysis of the data collected. Statistical techniques play a very important role in Market research.
9.9 KEYWORDS ______________________
_________
Regression: move backwards Stimuli: animate, excite, arouse Iterative: repeat Intuitive: possessing
Ql.
____________________
The technique which helps to express the dependent variable in terms of the independent variable is: a) Correlation analysis c) Multi-dimensional scaling b) Regression analysis d) Cluster analysis
Q2.
The technique which aptly identifies target segment of homogenous consumers is a) Regression analysis b) Factor analysis c) Cluster analysis d) Conjoint analysis
Q3.
Consumer preferences can be evaluated through 'trade off' of attributes made I); them in: a) Correlation analysis b) Conjoint analysis c) Multi-dimensional scaling d) Cluster analysis
Marketing Research
10.1 INTRODUCTION
The research process consists of a series of steps that cover the research project from its conception to final recommendation stage. The various steps in the research procedure are as follows: Determination of the purpose of the study. Problem and opportunities whether overt/1 latent/proactive have to be determined to set the research process rolling. Establish research objectives. Evaluate the (cost v/s benefit ratio) value of the research information. Design the research methodology. Thi s includes primary and secondary data collection. ] Implementation of the chosen research approach.
The market research process involves a number of inter-related activities which overlap and do not rigidly follow a particular sequence. A researcher is often required to think a few steps ahead. For example, if a researcher has formulated a research problem and is considering the sampling plan, he is supposed to consider the type of data to be collected as also the detailed tabulation. This is because the various steps are inter-woven into each other and each step will have some influence over the following step. , In market research, even though our focus is on one particular step, other inter-related steps or operations are also being looked into simultaneously. As we complete one activity; or operation, our focus naturally shifts from it to the subsequent one, i.e. the focus is not: concentrated exclusively on one single activity or operation at any particular point of time.; Let us now describe the major steps involved in a market research project.
10.2 RESEARCH DESIGN ___________________________________

Research design is a framework or blueprint for conducting the market research pnî It specifies the details of the procedures necessary for obtaining the information neededio \ structure and/or solve market research problems. Aresearch design is formulated priors? the commencement of the project. A good design ensures that required data is gathcres accurately, timely and economically.
10.3 FORMULATING THE RESEARCH PROBLEM _____________

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The first step in research is formulating a research problem. It is the most important si in applied research as poorly defined problems will not yield useful results. It is rightlysf
Unit 10
Research Process and Design
that "a problem well defined is half-solved". Poorly defined problems cause confusion and do not allow the researcher to develop a good research design. In order to identify the research problem, three categories of symptomatic situations, namely, overt difficulties, latent difficulties and unnoticed opportunities should be studied. Overt difficulties are those which are quite apparent and which manifest themselves. For example, if a firm has been witnessing a decline in its sales for some time, this could be called an overt difficulty. Latent difficulties, on the other hand, are those which are not so apparent and which, if not checked, would soon become evident. For example, declining sales may, in due course, demoralise the sales staff. Unnoticed opportunities indicate the potential for growth in a certain area of marketing. Such opportunities are not clearly seen and some efforts are required to explore them. It is difficult to lay down any concise prescription for recognising problems. A person with an inquisitive nature and the necessary background would recognise a problem or an opportunity in less time than another who lacks these qualities. Once the researcher has identified two or more problems or opportunities, the next question he should be concerned withis-which of the problems is to be selected? This is necessary as he will not be in a position to take up all the problems on account of limited finances and time constraints. In such a case he has to determine priorities, carefully examining their importance to his organisation. Choosing a relatively less important problem would amount to wasting limited resources. He should look into the value and cost aspects and then select that problem which gives the maximum net value of research. After a problem has been chosen, the next task is to formulate it precisely. This too needs a good deal of care on the part of market researchers. Formulation implies a clear statement or definition of the problem. A complete problem definition must specify each of the following: Unitofanalysis i Time and space boundaries Characteristics of interest (both the 'results' that are of concern to management and the 'variables' that are to be tested for their relationship to the results)
Specific environmental conditions Taken together these four aspects identify the who, when, where, and what of the research. These are briefly explained as below. 195
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Unit of analysis
The individuals or objects whose characteristics are to be measured are called the units of analysis. The units always identify the objects to be studied. It is necessary that the universe is well defined. Consider, for example, the statement "Women's dress buyers in Big bazar stores on January 30, 2007". This specifies a particular universe, provided that clear definitions are given for 'Women's dress buyers', and 'Big Bazar stores'. Consider another universe "Women living in the Mumbai metropolitan area who are shopping for one or more dresses in January 2007". The difference in the two statements is that whereas the units of the universe are 'buyers' in the former, in the latter they are' shoppers'. Also, note another difference between the two universes. In the first case, the universe indicates 'Buyers of women dresses', implying that the buyer may be either male or female. But in the second case, only women comprise the universe.
Time and space boundaries
As regards time and space boundaries, we find that the two universes are again different. In the first instance, a precise date, viz. January 30,2007 is given while in the second instance the entire month of January is given. Similarly, the two universes are different in terms of spacethe 'buyers' universe specifies stores located in Mumbai while the ' shoppers' universe specifies the Mumbai Metropolitan area which should be a larger territory than the former. A more subtle difference between the two universes can also be seen. The 'buyers' universe specifies that buying takes place in stores located in Mumbai. The 'shoppers' universe does not specify as to where shopping takes place. It says that women shoppers living in the Mumbai Metropolitan area in January 2007 are shopping They may be shopping outside Mumbai as well. Thus, in the second case the area in which shopping occurs is unlimited. | Hence, marketing managers run the risk of making the right decision at wrong time, * opportunities are transient. ^ I In view of this, it is vitally important that the marketing manager and researcher decide upon the suitable time reference for the decision. Characteristics of interest This aspect identifies the focus of the problem. In our earlier example, the characteristic of interest can be style and colour preferences, buying behaviour, personality traits, en Again, the researcher may be interested in only one characteristic.
Unit 10
It is necessary that the problem definition specify one or more characteristics to be measured and the fact that the nature of relationships amongst them is to be determined. Thus, we may like to know more specifically as to what dresses are liked by educated women or those who are employed. Is there any preference for store location amongst the members of the universe on account of their income? This and similar other questions will lead us to focus attention on the nature of relationships amongst the various characteristics.
Environmental conditions This aspect indicates the uniqueness or generality of the problem. For example, if the management is interested in knowing how the units respond to price changes, then the problem definition should specify the prices to be researched. The management is sometimes interested in knowing the behaviour of certain types of firms under specific economic conditions. In such cases, the problem definition must spell out those conditions precisely. In other words, the problem definition must specify the environment for which the company wants research results. It may also spell out the possibilities of changes as well as the direction of change in the environment so that the results of the research study do not become irrelevant. It may be emphasised that the problem definition in market, research is a step towards identification and structuring of the management's question. The most important objective of problem definition, however, should be to answer the right question. Hypothesis development Before we pass on to the next stage, it is worthwhile to briefly mention the development of hypotheses. A hypothesis is a proposition which the researcher wants to verify. Often there may be several competing hypotheses, either specified or implied. If, before undertaking the research, the researcher finds that all hypotheses are true, then there is no need whatsoever to undertake research. One objective of research is to select among the possible hypotheses and to test them empirically with the help of statistical tools in order to ascertain whether they are true or false. While the formulation and testing of hypotheses are important in research, it is not necessary that every market research study must have a hypothesis. In some studies we are only interested in knowing factual information and hence there is no need for formulating a hypothesis.
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To sum up, a careful formulation of the research problem would be helpful in providing a sense of direction to the research staff. As it specifies the precise scope of the problem, it makes research both meaningful and economical. Further, problem formulation, by setting out assumptions, would avoid any confusion to the reader. This also gives an idea of the environment in which the research is to be done, so that focus on the problem is not lost. Finally, problem formulation would also indicate the limitations of research itself so that one can see it in a proper perspective.
10.4 FEATURES OF A GOOD RESEARCH DESIGN __________________

A research design specifies the methods and procedures for conducting a particular study. The researcher should specify the approach he intends to use with respect to the proposed study. Broadly speaking, research designs can be grouped into three categories exploratory research descriptive research causal research
An exploratory research focuses on the discovery of ideas and is generally based on secondary data. It is preliminary investigation which does not have a rigid design. This is because a researcher engaged in an exploratory study may have to change his focus as a result of new ideas and relationship among the variables. A descriptive study is undertaken when the researcher wants to know the characteristic! of certain groups such as age, sex, educational level, income, occupation, etc. In contrast to exploratory studies, descriptive studies are well-structured. , A causal research is undertaken when the researcher is interested in knowing the cause and effect relationship between two or more variables. Such studies are based on reasoning along well tested lines. It may be emphasised that the main criterion of a good research design is that it must answer the questions posed earlier. Further, the researcher should select that researd design which is appropriate in achieving the objectives of the study. A point wort emphasising here is that there is no one 'best' research design. There are several alternate methods for solving a particular problem. Therefore, the research should not be deferoi in the quest for the 'ideal' research design. It is through experience that one is ablet select the most appropriate research design.
Unit 10
A good research design provides for the minimum details required for arming. It includes pi l the following: Statement of study's objective Statement of data inputs or causal data on the basis of which solution is to be reached The analytical framework on which inputs will be treated or calculated The details for costing and implementation of the work Form and scope of the final research work
10.5 CLASSIFICATION OF RESEARCH DESIGN________________________

All research approaches can be classified into one of the three general categories of research: Exploratory Descriptive Causal Each of these categories differs significantly in terms of research purpose, questions, precision of hypothesis and data collection techniques used. Exploratory research Exploratory Research is used when one is seeking insights into the general nature of the problem. There is less previous knowledge to build on. The sample research process is flexible and unstructured. The sample is small and is non-representative of the class. The hypothesis is tentative and a partial answer to the research question. It is generally followed further by conclusive research. The process of gathering information is through: personal interviews industry expert views i existing secondary data qualitative research pilotsurveys
Marketing Research
Exploratory research help set the priorities among research questions and learning the practical problems of carrying out the research they. define the problem more precisely identify alternative course of action develop hypothesis and an approach to the problem
Thus, this low cost and low risk form of research can yield rich dividends. Descriptive research Descriptive research is a type of conclusive research, which describes some aspect of market characteristics or function. e.g. The proportion of adult population reading Economic Times. Reader's evaluation of Economic Times versus other Financial dailies. The socio economic and demographic characteristics of the readers of the newspapers.
Such research is marked by prior formulation of specific hypothesis. Hypothesis is a tentati\ e , answer to a question. It is preplanned with a structured design and large representative j sample size. The descriptive designs require a clear specification of the who, what, when, j where, why and way of the research. The analysis is quantitative and is used as inputs for | decision-making. The methods used for descriptive research include, secondary data surveys panels
Symptoms of the problem should be distinguished from the problem as the underlying cause may be elsewhere e.g. decrease in sales could be because of pricing, promotion x distribution problems.
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Secondary data All existing sources of data must be tapped to gain information on the subject. Surveys Survey is the most commonly used method. It is carried with the help of questionnaires and observation. Alarge sample size is interviewed, whereby adequate planning is required. Panel design In panel design method, a fixed sample of respondents provides data on a continuous basis as against survey information, which is just once. e.g. TV channel ratings. Causal research / experimental research design Itis conducted to determine cause and effect relationships between one or more independent variables. The other mediating variables are controlled. They are similar like laboratory experiments where what goes in, what changes are made and what results are known. Determining sources of data The next step is to determine the sources of data to be used. The market researcher has to decide whether he has to collect primary data or depend exclusively on secondary data. Sometimes, the research study is based on both secondary and primary data. When a study is to be based on secondary data, whether partly or fully, it is necessary to note that the data are quite suitable for the objectives spelt out by the study. It is also advisable to evaluate secondary data in details to avoid possible sources of error. To begin with, one should be familiar with the authentic sources of relevant data, their periodicity, the agency which is publishing or having such data, the concepts used in compilation and their limitations, if any. A sincere effort must be made to look into the existing data with a view to examining their suitability for the research. It is only when such secondary data are unavailable, inadequate, or unreliable, that a researcher should decide on collecting fresh data. Designing data collection forms Once the decision in favour of collection of primary data is taken, one has to decide the mode of collection. The two methods available are as follows:
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II
Observational method Survey method
Observation
This method suggests that data are collected through one's observation. If the researcher is a keen observer, with integrity he would be in a position to observe and record data faithfully and accurately. While the observational method may be suitable in case of some studies, several things of interest such as attitudes, opinions, motivations and other intangible states of mind cannot be observed. Another aspect of this method is that it is nonreactive as data are collected unobtrusively without the direct participation of the respondent. This is a major advantage as the behaviour can be recorded without relying on reports from the respondents.
Surveys I i
In market research, field surveys are commonly used to collect primary data from the respondents. Surveys can be Personal telephonic mail diary
Of these, personal and mail surveys are more frequently used in our country. A choice b to be made regarding the type of survey for collecting data. There are certain advantage* and limitations of each type of survey. Broadly speaking, telephonic survey is suitable when very limited information is sought in a short period of time. Moreover, such information should be readily available with the respondents. In contrast, surveys based on personal interviews are suitable when detailed information is to be collected. Sometimes a combination of two or more methods could also be used. It is a common practice to use structured questionnaires prepared in advance, to elicit^ necessary information from the respondents. In case the enumerators are to fillupll questionnaires, the survey is a personal one. It is a mail survey if the information is s by sending the questionnaire by post. Whether it is a personal or a mail survey, it is ne to design a suitable questionnaire, conduct a pilot survey and undertake a pre-testing^ the questionnaire. The pre-testing will enable the researcher to realise the shortcoming! his questionnaire. In the light of this 'reaction' of the respondents, coupled with the f observation of the researcher, the questionnaire should be modified.
Unit 10
Determining sampling design and sampling size
Another aspect which forms a part of research process is the sampling plant. When the Market researcher has decided to carry out a field survey, he has to decide whether it is to be a census or sample survey. In almost all cases, a sample survey is undertaken on account of its overwhelming advantages over a census survey. When a decision in favour of a sample survey has been taken, it is necessary to have a clear definition of the population from which the sample is to be drawn, before deciding on the type of sample design to be used. First, a broad choice is to be made between probability sampling and non-probability sampling. The researcher then selects a specific type of sample design from a number of sample designs. The type of sample design chosen will depend on its suitability and also the availability of the requisite sample frame. As regards sample size, there are two basic approachesthe adhoc or practical approach and the statistical approach. Although the former is widely used in Market research, it should be the endeavour of the researcher to follow the statistical approach which is based on well-defined principles. The size of sample will depend on the degree of precision required as also on the cost considerations. The object of sampling is to choose a sample which will faithfully reproduce the characteristics of the population or universe. In practice, however, this objective is never completely attained on account of the occurrence of two types of errors, due to bias in the selection and errors due to sampling. It is desirable to minimise these errors and to consult an experienced statistician on sampling.
Organising and conducting the field survey

Having prepared the questionnaires and selected the sample design and size of sample, the next step is to organise and conduct the field survey. Two important aspects should be looked into i.e. a) interviewing b) supervision of field work The task of interviewing seems to be simple but, in reality, it is one of the most difficult tasks in market research. This is because respondents are generally hesitant in giving information unless approached with tact, initiative and intelligence. Supervision of field work is equally important to ensure timely and proper completion of the field survey. Neglecting these aspects would result in interviewing errors, which, in turn, would undermine the utility of the survey.
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Processing and analysing the collected data

Once the field survey is over and questionnaires have been received, the next task is to aggregate the data in a meaningful manner. A number of tables are prepared to bring out the main characteristics of the data. The researcher should have a well thought out framework for processing and analysing data, and this should be done prior to the collection. It is advisable to prepare dummy tables, as such an exercise would indicate the nature and extent of tabulation as also the comparisons of data that can be undertaken. In order to derive meaningful results from the statistical tables, the researcher may use one or more of the following four steps. a) b) c) d) The first step is to calculate relevant measures of central tendency as also of dispersion, highlighting the major aspects of the data. The second is to cross-tabulate the data to ascertain some useful relationships. The third is to calculate the correlation coefficient and undertake a regression analysis between variables. The fourth is to undertake a multivariate analysis. Such an analysis uses a variety of techniques to determine important relationships amongst several variables.
While designing a research study, the researcher should give adequate thought to the use of a particular analytical technique. In the recent years, many such analytical techniques have proliferated due to the emergence of the computer. The researcher now has access to an increasing assortment of techniques and it is desirable to know well in advance as to what analytical techniques are going to be used, so that the data can be collected accordingly. It is necessary that the researcher gives as much importance to the analysis and interpretation of data as he has given to their collection. In the absence of proper analysis, data may be rendered useless resulting in a waste of time and money.
a
K-P
reparing the research report

Once the data have been tabulated, interpreted and analysed, the Market researcheris required to prepare his report embodying the findings of the research study and his recommendations. A poor report on an otherwise good research will considerably undermine its utility. Hence, it is necessary that the researcher gives sufficient thought and care toil* preparation. Although report writing needs some skills which can be developed with practice, tl researcher should follow the main principles of writing a report. Some of these principle*
Unit 10
are objectivity, coherence, clarity in the presentation of ideas and use of charts and diagrams. The essence of a good research report is that it effectively communicates its research findings. As management is generally not interested in details of the research design and statistical findings, the research report should not be loaded with such details, otherwise, there is a strong likelihood of its remaining unattended on the manager's desk. In view of this, the researcher has to exercise extra care to make the report a useful and a worthwhile document for the management. Sometimes, a detailed market research study throws up one or more areas where further investigation is needed. Since research on those areas or aspects could not have been fitted into the original project, a separate follow-up study has to be attempted.
^ Activity A;
Choose the correct alternative 1. The first step of Market Research Process is a. research objectives b. problem definition c. collecting information d. exploratory research 2. When one is seeking insights into the general nature of problem then we use a. exploratory research b. descriptive research c. experimental research d. panel design 3. The result of an explanatory research is a. confusion b. more information c. research objectives d. hypotheses 4. Sources of data for descriptive research does not include a. interviews
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b. c. d. 5.
panels surveys experiments
Which of the following is an example of panel research design? a. b. c. d. Census TV channel ratings Personal interviews Survey
10.6 SUMMARY
____________________________________
The Market research process, as described above, involves various steps, though strict adherence to each of these steps may not be necessary. A researcher may deviate from the above sequence and steps depending on his specific needs. It should be remembered that as research proceeds from the selection of the theme through the collection and analysis of data to the preparation of a report, the focus of attention will move from one activity to the other. This implies that the researcher does not always concentrate exclusively on one particular phase of research until its completion. Further, while it is beneficial to draw a detailed plan and sequence of various activities in market research, it is hardly so if it requires such financial backing as the firm cannot afford. There is no point in attempting something which cannot be completed on account of financial constraints or limitations of time. Another point worth emphasising is that howsoever elaborate a research design may he, its successful implementation depends in no small measure on its management. | The market researcher should not only be familiar with the foregoing potential errors but; should also make an earnest effort to have an effective control over themrHis effort should be to ensure that his research study is free from these errors to the extent possible. This means that he should be ever vigilant throughout the different stages of his research study However, in practice, it is seldom possible to eliminate all potential errors. Efforts slMili be made to minimise individual errors. If two or more individual errors occur, he should | minimise total error by error trade-offs. Finally, he should measure or estimate the extent of residual error that has still remained in the study.
Marketing Research
11.1 INTRODUCTION All research activities need to address specified areas in which the research is to be conducted. It also needs valuable information to be collected by means of a sponsor. { These are to be done on regular intervals. We shall discuss them in detail in this unit. 11.2 TYPES OF SPECIALISED TECHNIQUES Certain specialised techniques of market research are used to address specific areas and requirements of the sponsors. Instead of being one-time activities, these are continuous in nature. 1. National Readership Survey (NRS): The aim of NRS is to provide information acceptable to media owners, advertisers and advertising agencies as a third party endorsement. These surveys are nationally accepted for identifying audience size. reading habits and readership profiles, etc. specifically, the NRS investigates: a) b) The readership pattern of all leading / major Indian publications i.e. dailies, weeklies, fortnightlies and monthlies (magazines, newspapers). The degree of duplication (cross readership) among various publications and between various media. For example, a reader of Economic Times (Newspaper) also reads Financial Express. It covers cinema and TV viewership and radio listenership. The socio-economic characteristics of readers / viewers / listeners of the various mediums. Education Profile ofreaders Below SSC SSC Graduate Post Graduates "A">5 "B" 1-5 lac "C"<llac
c) d)
Readership by Town class e) Readership by income levels
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Specialised Techniques in Market Research
f) Readership per copy of publication g) Readership by duplication h) Rate of advertisement per column centimeter (Rs/cc) according to positioning (advertisement appearing on front page, backpage, double spread, strip ads, inserts, classifieds, supplements, etc.) i) Readership by geographical area
With such detailed consumer and usage profile available with the media, planners can plan efficient money spends to optimise results. Retail Store Audit: It is a quantitative feedback technique from the market on consumer buying patterns. The audit is primarily based on penetration, sales volume, growth and distribution. A manufacturer is able to know what is the real off-take of the product at a retail level. In India ORG-MARG does the retail store audit (RS A) for fast moving consumer goods. The methodology uses a random multistratified sampling. a) Retailers are drawn from retail census classification from all over the country covering major towns. The retailer's willingness to participate in the survey is ascertained before making him a panel member. b) Representatives of the research organisations call on these retail outlets on a monthly basis to collect information on purchase, stock, sales, inventory, promotional schemes, etc. c) Specially designed booklets are used to record various products, brand s, sizes, etc. d) The difference between the stock/inventory at the start and at the end of the month is the sales for the said period. Opening inventory + net purchase (receipt-transfer out-returned inventory) -closing inventory + transfer in = Net sales. e) Continuous monitoring helps to understand the market trends, depth of penetration, promotional schemes, stock out situations, etc. i) Sales quantity: Sales quantity can be shown by units, volume and value to consumers.
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Sales quantity = Opening stock+Purchases - Closing stock. ii) Market Share: Individual product in ratio of total sales of the category. Sales of product Market Share % = Total sales in) iv) Growth: Refers to the percentage change in current sales over the same period in the previous year. Stock turnover Ratio (STR): Indicates the number of days the stock is going to last given the current offtake levels. Stock STR= --------x (30 days) Sales
100
v) Per dealer off take (PDO)

Stock by volume PDO =
Total no. of dealers vi) Out of stock Dealers (OSD)

OSD%= f) Out of stock dealers -------------------------Total Dealers
100
Retail store audit is made to be user friendly. It divides India into four zone; (north, south, east, west) and 16 states. The sample spread is 8800 retailers across 367 towns (all India) out of which 345 5 retailers are urban area retailers and the rest are in rural areas. Monthly report on urban/rural India and all four zones is given to all its subscriber! New product introductions, promotional schemes and pack variants, dealet I incentives are easily traceable through this data.
g) h)
There are, however, certain limitations in this method. They are as follows: It requires a large trained manpower for data collection and electronic ffi< processing techniques.
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: co-1
*{
Not all type of retail operations are audited. Certain retail outlets do not operate in data collection. Brand loyalty cannot be known through this data.
1 Consumer Panels: This method is quite popular abroad but has not been a much-favoured method in India, though IMRB has household panels to provide purchase specific data in select metres. Consumer panels help obtain qualitative feedback, especially the brand loyalty of consumers. Consumer panels are selected through stratified random sampling so that the sample is the representative of the class. The size of panel depends on the nature of the study. Members are required to maintain a diary recording all purchases of regular products or research products, size, price, the units bought, the place of purchase, sometimes even the reason for purchase. The reporting could be weekly, monthly or as desired by the sponsor of the study. The data is then gathered and analysed to obtain useful information on retail sales and its trend, purchases by existing and new customers, brand loyalty, market share, effect of premiums and discounts on sales, kinds of stores in which the purchases are made, ! effect of price change, socio-economic classification of purchases and the members buying multiple brands for a single product. An adaptation of this technique is called 'Brand Barometer' in which panel members are retailers instead of consumers to give information on brand loyalty. 4, Stimulated Test Marketing (STM): In STM, market-like conditions are stimulated and the selected sample base is studied for trial and repeat purchases in an attempt to estimate the market share. This technique is known for its versatility. Selection of the sample unit is random. A sample area which is selected is most representative of the entire market. Time and cost considerations also guide the selection process. Free samples with or without the brand name are distributed and consumers are motivated to use them. Then their opinion after usage is recorded on product attributes, packaging quality, intentions of purchase /repurchase etc., through a structured questionnaire. Buying is a complex process involving social and psychological factors. Through test marketing, the risk of product failure is attempted to be minimised. The test marketing is done at two stages. a) Pre-Productfinalisation b) Post-Product finalisation before a nation-wide launch 213
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Simulated test marketing is done for the following purposes: a) b) c) d) e) f) Check product formulations so as to choose between alternatives Brand names and Brand recall Pack size and Packaging appropriateness Product concept testing Product test with advertising Product test with prototypes
2.
g) Trial, repeat and frequency of purchase h) Pilot study before national launch 11.3 RESEARCH IN ADVERTISING DECISIONS Promotion of products and services through advertising is becoming a very costly exercise An advertiser is always wanting to gain mileage through every rupee spent so as to comer it into sales. Some of the aspects that are studied through advertising research are: 1. 2. 3. 4. 5. 6. 7. Advertising Agency Target audience characteristics and size Copy testing and advertisement lay out Media research anditiselection Corporate image study^^ Consumer attitude measurement^
evaluation The two methods of research are Opinion Research Memory Tests Recognitio n Recall
1. Opinion Research: This methodology provides for mere feedback expressed as opinion on advertisement copy, design and layout after the respondent is exposed to advertisement. Opinion surveys are qualitative measures and cannot be quantified. Aspects like media recall, how long it appeared cannot be measured. 2. Memory Tests: Memory tests are an improvement over opinion research. There can be variations in the test. They are administered after the release of an advertisement campaign. a. Recognition test : Showcards are developed containing the clippings of advertisements. The brand name may be purposely deleted from the advertisement. Respondents are then asked to identify the brand and the media in which it appeared. b. Recall test: In this method respondent lists unaided all the advertisements seen in a particular product category. For example, all TV commercials seen for soaps. High recall is a sign of superior attention grabbing power of the advertisement. The respondents may also be asked about seeing a particular advertisement. e.g. Can you recall the Liril ad in which model x is seen? 3. Media Research: An advertiser has the option to choose from various media like the TV, press, radio, cinema, etc. for the release of an advertisement. With a limited outlay, it is imperative to derive marginal utility from every rupee spent. Each medium is tested on its versatility v/s cost before taking a decision. The key research aspects klude a. The efficient media to reach the target population. Which medium offers the maximum reach in the target audience of the specific product? b. Cost effectiveness with respect to the audience media characteristic. c. Demographic characteristics and the market potential of the target group. d. Feedback on the noticeability of various advertisements in different media. 4. Point Of Purchase (POP) Research: POP items are widely used by all marketers. They are important communication media that help a consumer to recall advertising or stimulate consideration to buy the product. Various POP items that can be seen in
Marketing Research
day-to-day life include posters, stickers, backing sheets, danglers, buntings, neon-signs, glow-signs, tinplates, balloons, hangers, stands, banners, floor prints, enlarged packs, leaflets, shelf talkers, dispensers, audio voice overs, trolley plates, etc. The list is never ending as marketers are developing newer methods to catch attention amongst the clutter of brands and space. POP is researched through Forced Exposure Test (FET). The respondents are shown POP under a controlled stimulated environment and their response is recorded for the following: a) b) c) d) e) f) g) Attractive and attention catching Standout factor amongst POP clutter Message and content comprehension Brand linkage Uniqueness Overall likeability/dislike Installation difficulties
Effective and innovative use of POP items can at times work better than adverte 1MIIJ Opinion Polls: Opinion polls are often used to cover a variety of topics ranging political, social, legal, economic and educational issues. The sponsor of the opinion poll needs to identify the topic for poll, area coverage, target audience, time ami budget constraints and the kind of data analysis required. The simplest of opiraaf polls are the Yes/No/Can't say answer types. TV programmes, SMS (cell phooaj services and internet sites are using a lot of opinion polls on current issues on adii basis. i 11.4 MOTIVATION RESEARCH If the marketer got to know the reason why people behave the way they do. t problems would have been solved. The decision making process is a complex one motives guide a person towards action. A motive may be defined as an inner state that energises, activates, directs the belli of an individual towards certain goal or activity.
M alJ pa:
Vai
Unit 11 *'
There are various factors that affect the consumer decision process. They are as follows: a) Economic factors b) Intrinsic factors (pertaining to personality individual make up) c) External factors In recent years, marketing researchers have borrowed concepts from psychology to understand and measure emotional factors involved in a consumer buying decision. Motivation research is based on two basic assumptions. i Every individual has drives which when stimulated, generate a response. Every individual is influenced to a certain extent by his environment. Motivation research is difficult to handle as it deals with qualitative variables present in human beings who are dynamic by nature. Consumers are generally not aware of the true reasons for specific brand/product selection. Sometimes they are unwilling to tell the truth if it pertains to sensitive issues, moral issues, or if they have inadequate knowledge. For example, views on drinking, sex, etc. 11.5 TECHNIQUES OF MOTIVATIONAL RESEARCH __________________ Techniques of Motivational Research
Attitude research
Depth research
Protective research
liken
Semantic Error differential choice scale
1
Indepth Focus Focus interview group group interview Sentence completion Story completion Rosenweig test TAT Doll play
Word asso
Motivation research helps identify why the same stimulus fails to bring the same response ithe time even with the same person. Various intervening variables like personality, attitude, KM experience, information and evaluation criteria differ from person to person. These variables (motives) that cause a response exist at three different levels of awareness.
21 7
Marketing Research
Attitude Research : Attitudes are predispositions towards products and services. Verbalisations of these attitudes are opinion. The measurement of attitudes is done through scaling techniques. Commonly used attitudinal scales are: 1. 2. The Likert scale: As dealt in the chapter on scaling.
s^
The error choice scale: In this scale, the respondent is given a question and is then asked to select an answer from a series of probable answers for which little factual i information exists with a respondent. For example, I Q. The average net profit margin for Procter and Gamble is: 2%, 3%, 4%, 8'. 10%, 15%, 20%, 24%, 28%, 40%, 45%. The answer will reveal respondents attitude towards them. Do they think that the business unit is profit oriented ot I consumer oriented?
3.
Semantic Differential scale: As dealt in the chapter on scaling.
Depth Research: Depth research techniques are used when respondents are unwilling or unable to respond meaningfully to direct questions. The idea is to get consumers to talk all about their feelings concerning a product the pleasures, joys, agonies, enthusiasm, nightmares, deceptions, apprehensions and so on that a product brings to their mind. Such researches are conducted by psychologists rate ] than a marketer. The process involves: 1. 2. 3. Establishing a rapport with respondents Indirect questioning Stimulating response through probing and empathising, for example, ah, oh.ys what more? etc. Noting the reactions of the respondent.
4.
Through this method, unexpected motives may be discovered. However, this is not with a large sample size due to time, cost and interpretation constraints. Focus Group Interview: In this method, a small number of consumers or potential (5-10) are brought together to informally discuss a marketing situation. The group steers the discussion to reach a conclusion. However, individual freedom to re,
Marketing Research
An inkblot similar to the Rorschach blots
Thematic Apperception Test (TAT)

Commonly referred to as TAT. This test consists of a series of pictures about whidifc subject is asked to tell stories. These pictures may deal with day to day ordinary euw may represent unusual situations. The respondent is encouraged to tell a) what he thinks led to the scene/situation b) what is happening and the feelings of the characters in the pictures
c) what the outcome will be. The responses are recorded verbatim and the inve draws certain inferences about their personality structure, tensions, adapt expressive behaviour. It is assumed that the respondent's externalisation is the of the internalisation of his self. 220
Uîi
Unit 11
Example:
Q. Who do you think i s more healthy?

Ans. To be given by the respondent by looking at the picture.
Doll Play Test This test is especially suited for children. Dolls representing adults, children, ethnic races, both the sexes, are given for free play to children. The children may be asked to show how thesedolls will act in specified situation. The manner in which they organize the dolls and play with them represent their attitudes, prejudices towards the object/situation represented bythedoll. The Rosenweig Test ,
Ituses a cartoon format in which one character is represented as saying something. There isablank space for another character and the subject is asked what this second character raldprobably say. Marketing situations may be studied through this techniques.
Marketing Research
The Story Competition Technique In these tests, the subject is given just enough of a story or argument to focus his attentsr on a given issue but not enough to indicate how it will turn out. The respondent is ;ii; provide the end /
conclusion to the story.
The way the respondent supplies the ending statement is assumed to portray hb fc seated biases. For example, Mr. and Mrs. Desai purchased a food processor. The\ ^ the sealed box to find some spare parts missing. They went to the retailer...
Unit 11
Word Association las been dealt under the chapter, Questionnaire, subheaded under open ended questions.
Sentence Completion
Asentence is read/given to the respondent who is asked to complete the sentence with the first thoughts that occur to him. Forexample, I Love Diwali because Responses could be i we get to go home for a holiday
M+ .
- a student
i
we eat sweets and burn crackers -a child t it marks the beginning of a new year 'r -a housewife
we get bonuses to buy new clothes and sweets - a worker i there is fun and festivity all around - a youth
JfWI"
Each statement is marked by responses to things that are most valuable to each one of lea
11.6 LIMITATIONS OF MOTIVATIONAL RESEARCH _________________

1, Motivation research depends on various techniques borrowed from other fields. The transfer of techniques from one field to another poses problems. 1 Thecostof interviewing is generally large.
Marketing Research
3. 4.
Interpretation of data by different people doing the same test poses the problem c subjectivity. The validation of results is impossible.
^ Ac tiv it y A: a) Two children were quarrelling at the breakfast table. The elder boy spilt milk on his] uniform. It was time for the school bus to come. What did the mother do?
b)
What strikes your mind when you hear the following words? Black ___________ Brave____________ Cunning____________ Honest _______
11.7 RESEARCH FOR PHARMACEUTICAL PRODUCTS Over the decades the pharmaceutical industry has seen a radical change. Phai manufacturers are now trying to reach the masses for brand awareness and the comp reputation so that the prescriptions generated are not substituted at the chemist level. the companies are making rapid strides in manufacturing and exporting the erstwhile patent drug. With this need for money through public sourcing, the company image becomes!1 necessity. . The covert image of this industry has changed and pharmaceutical marketers are iBif T market research for various reasons. Ti
PHARMA COMPANY
Prescription Generic t * New ft drugs drugs i I ical Performance Packaging uct Proc als tracking ept cone
jrmulations 1 Product research
i Market ' | Prescription audit Ret aui

r
ing needs i
r
ail lit
Pricing OTC Quantitative Qualitative (Over the counter) Product Brand concept image Company image and awareness
Packaging
SOURCES OF INFORMATION 1 Pharmacists 1 Chemists
Medical Practitioners
Patients
Public
11.8 THE SOURCE OF INFORMATION FOR PHARMA PRODUCTS Itistobe noted that people like doctors, pharmacists are well trained; they are educated people. One should keep in mind the following: who understands technical jargon are busy people every minute wasted is a money earning opportunity lost do not like to deal with unsophisticated and unqualified professionals research on his patients is a learning experience also cannot risk a patient's life due to medical ethics lteefore,the person conducting the research should be well qualified so as not to waste Moctor'stime, as well as to settle his product queries regarding various scientific issues. Ike various issues which a doctor seeks regarding a product are as follows:
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Marketing Research
1. 2. 3. 4. 5. 6. 7.
Dose and dosage schedule: Amount of the drug required and at what intervals. Indications for prescription Overall efficacy, the time needed for drug concentration in the body Drug clearance time from the body Drug interactions (if any) for example, not to be given concurrently with calcium carbonate
i
Side effects for example, dizziness, metallic taste, etc. I Contra indications for example, not to be given to children under 5 years, pregnm and lactating mothers, the first trimester of pregnancy, people allergic to sulphides etc. Precautions (if any) while administering the drug Overdosage - Remedies and accidental damage
8. 9.
10. Product availability forms: Tablets, capsules, cream, injection, etc.
For research
. . . . . < t t...
Target respondent is selected: Which category of doctors? For example, drug wfllk used by a gynaecologist, general practitioner, pediatrician, etc. Also the ability to influenct| practitioners is seen. The nature of practice and the kinds of cases dealt by the respondent doctor is c so as to deal with all the indications of the product. Sample size: To be representative of the population Survey centre: Places, hospitals, etc. are specified Sampling procedure: Area sampling Research process The target doctors are visited for prescription information needs. They are then exposed to the product concept and the product details. Thi pha
Unit 11
Participation and cooperation in the trial is solicited. Each participant doctor is provided with adequate samples to cover participating patients for the complete prescription duration. Regular visit or monitoring for the proper conduction of the trial. Feedback in structured/unstructured questionnaires for product results
MRB has established Pharmatrack to handle a specific market's requirement. The retail store audits and prescription audit are carried out by ORG on a continuous basis just like FMCG products at all chemist and stocking points to compare the competing product offtake. Pharmatrack reports are confidential and not to be shared whereas ORG audits are given to all its subscribers. Some areas of research are 1 Prescription patterns and factors influencing prescriptions . 2. Proportion of doctors detailed (told about the product) prescribing the said brand, the alternates prescribed 3 Reaction to the new products . 4. The drug and the company image
Ik
5. Reasons for brand switching or not prescribing 6. Prevalent cases (ailments) Over the counter drugs (OTC) These are medicines which the consumers buy on their own without prescription because of the safety of usage in the drug category. These products can be advertised into various mediums like TV, press, radio, etc. For example, Anacin, Moov, lodex, Sandoz Calcium, Krack, etc. The efficacy of the product is checked by the manufacturer himself. For all other aspects like packaging, pricing, image, brand recall, sales audit are treated like all FMCG products as they are available at all types of retail outlets. This unit is an attempt to give a bird's eye view of research utilisation in the field of Pharmaceuticals.
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11.9 RESEARCH FOR INDUSTRIAL PRODUCTS Traditionally, the industrial segment has had limited customers and a selected range of products offered by companies. With globalisation, various technical and chemical innovations, the product portfolio of companies is going through a sea change. To remain competitive in the field of limited scope, a lot of research projects are now getting initiated, This was earlier restricted to areas like demand forecasting only. Avenues for research include: 1. Company Image studies: These measure corporate image at a particular point of time or they could be done on a continuous basis. I 2. 3. Brand image : This may relate to the company or to the product as brand. The ' attributes and intangible benefits associated with such products are Pricing research : This is crucial for new product introductions or where the competition is stiff from the unorganised sector as well.
*
4. 5. 6. 7.
Preference studies: These are attitudinal studies towards a particular product or service. Buying influencers : These studies determine the various factors influencing organisational purchase behaviour. ^ Product specifications studies: The user's needs and the competitive machine? are studied in depth for new product introductions. Technology innovations: The new technologies have to be studied and adaptabft to be determined for industrial usage. For example, the equipment using solars wind energy. k Substitutability of new materials: Newer raw materials are studied for priciit and functional advantages. For example, new polymers are replacing steel and plasw
8.
11.10 SOURCES OF INFORMATION FOR INDUSTRIAL PRODUCTS The sources can be collected with the help of: Primary sources Secondary sources
Unit 11
Through the tie above resources, both, qualitative and quantitative aspects about a product can be studied. For demand estimation studies, factors like the life of a product, the replacement market and international scenario (imports etc.) should also be considered. Details about the methodology has been discussed in previous units.
11.11 SUMMARY ______________________________________________

We have seen that all the techniques need data and information. These can be collected on aregular basis with the help of clear sponsorships. We have also seen that advertising decisions play an important role on the basis of the different polls on which the ads are to be made, which gives the different methods viz, the opinion poll or the copy test or corporate image study. They are to know how people react to these. Retail store audit gives a clear picture on the sales quantity per quarter and the market share of the product.
11.12 KEYWORDS ___________ ' _________________________________

Intrinsic: inherent, essential Jargon: word or expressions used by a particular group or professionals 11.13 SELF-ASSESSMENT QUESTIONS _________________ _ _ _ _ _ _ _ _ Ql. What is a retail stores audit? Elaborate your answer. Q2. Explain the national readership survey. Elaborate your answer by considering your own example of any survey you have so far seen. Q3. What are the major aspects that are studied through advertising research? Q4. Write a short note on POP research. Q5. Give some situations where you would like to use stimulated test marketing.
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12.1 INTRODUCTION The marketing management performs the vital functions of policy formulations, planning marketing operations and devising methods to control marketing efforts including sales so as to achieve the organisation goals. For the efficient discharge of these functions, the management needs complete information about the market and sales - present and potential. Thus, the management has to heavily depend on research in these areas. Market and sales analysis which covers the identification and measurement of all these variables individually and collectively have an effort on sales. To be more specific, market and sales analysis research includes: Measurement of the market - present and potential, Demand or sales forecasting, Sales analysis territory-wise, product-wise, salesman-wise, etc. and also Evaluation of the performance of the sales force.
The importance Market and sales analysis is of paramount importance because it helps the management in: a) b) c) d) e) f) g) Developing a company's sales plan (short and long term). Estimating the future sales. Establishing sales goals for each unit and for each individual in the sales organisati Setting standards of sales performance. Allocating a salesman's time, efforts, territory, etc. Estimating the total sales force needed in the future. Taking decisions about the remuneration (commission) of Ifehe salesman, training E compensation and, Preparing a sales expense budget.
h)
Unit 12
Market and Sales Analysis Research
Most of the marketing research people are engaged in market and sales analysis research. Market analysis refers to those research activities which attempts to determine the sales potential. It includes sales potential for the total industry and sales potential for an individual firm. Sales forecasting would include: 1) Estimating sales for a particular product 2) Company 3) Branch 4) Unitor 5) Department for a particular period of time 12.2 TYPES OF SALES ANALYSIS __________________________________ Sales analysis will include studying of sales - territory-wise, type and size of customer order size, product-wise and combination of these. Market Analysis: Marketing management is interested to know the total market for a product in particular. In other words, if the management is aware of the total potential of sales by all firms in the industry, it will be able to plan well about its own share. The total market for a product or service can then be determined geographically, territory-wise or area-wise. While estimating the total market for a product, the research people must take care of the substitution of product 'X' to 'Y' and vice-versa by the consumers. The total market potential can be estimated with a different set of assumptions. For example, the market potential for say, toothpaste would be of one order if we assume that people brush once in a day and the market potential would be different if we assume that people brush their teeth after every meal. The total market potential is of great use in the following ways: Helps in defining sales territories As a sales manager wants to develop sales territories that are nearly equal in work-load so that the sales force can be effectively used. A sales representative's work load depends on a) Number of accounts or clients - distributors or dealers b) Size of the accounts
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c) d) e) f)
The average order size Location Travel time between two clients
Non-selling activities required of a salesman (filling up daily contact form, gathering data, commenting on the competitor's activities, details of accounts/recoveries with the dealers, etc.)
If a company is able to know the market potential, area-wise, it can successfully plan the number of people to be deployed to each territory. It would also help the management in deciding how much investment is to be made in the development of that territory. Money to be spent on advertising and non-advertising promotional methods can be decided on the basis of the potential. If Bombay has six times the potential than say, Poona, resource input should be accordingly planned. A company operating nationally may advertise on a national media, but may go for local advertising depending on potential. In this way the key markets are carefully served. In addition to potential, data on the competitive structure and strategy should also be collected. The firm's own strength must also be considered.
Setting sales Quotas

Once market potentials are estimated and sales territories established; the company can go for setting the sales quotas. Sales quotas must take into consideration the past performance in case of an old company. Traditionally, sales quotas were set up by rule of thumb and if a salesman was not able to do the desired task, he was fired. Take another situation where 'A' and 'B' contribute equal sales from the territories 'X' and 'Y' respectively. The sales manager may view them as equally efficient. But the fact may be that if territory 'X' has a high a potential than that of 'Y', they should not be considered equal.
12.3 AREAS OF SALES ANALYSIS

Sales analysis is another important area needing research. Sales Analysis is done in four areas : 1) 2) Territory Product
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3) Customer 4) Order Size |. The invoice is usually the basic document. An invoice contains the following: -4 a) Party's name ,-, b) Product sold c) Quantity d) Price e) Total Sales or Order Based on these invoices territory-wise, the sales break up can be studied. Similarly, the sales analysis by product line or if an individual product can be carried out. Product decisions can be taken only when we have sales analysis product-wise. Customer-wise break up of sales may reveal that a small percentage of clients contributes to a large percentage of sales. Such customers must be taken care of. les Analysis by order-size may reveal the points of good sales volume. Combined with all the 3: i.e. a) Territory b) Product and c) Customer-wise Sales Analysis may reveal the weak and strong points in sales programme. 12.4 METHODS FOR MEASURING MARKET POTENTIAL There are two methods to measure market potential. They are as follows: 1) One is through direct data i.e. data on the actual product for which we want to estimate the potential. 2) The other method is through the use of corollary data i.e. data related to the product but not about the product.
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1.
Direct data method

The total sales of a commodity can be estimated for the entire industry. Its territory-wise break up is obtained. The territory's characteristics are taken into account along with the past sales, the percentage wise distribution for the industry sales with territory-wise provide a base for estimating the market potential for our brand. The comparison of actual sales and potential sales will tell us about our weakness or strength in that territory. There is a disagreement whether a company should concentrate on a weak market or on a strong market. A company, however, must carefully decide the action to be taken in each territory. Sometimes, the total industry sales can be easily estimated according to each area if the product is under license or is regulated through institutions like the State Trading Corporation or the Minerals and Metals Corporation (MMTC) etc. The federation of Indian Chamber of Commerce and Industry (FICCI) and many other associations concerned with each industry compile such data, like a product by the Indian the Jute Manufacturing Association (IJMA). It is evident from the above that past sales form the basis of measuring potential. But past sales are always a function of advertising, price and the promotional effort put in. These variables may change the sales potentials.
2.
Corollary data method
''
Measuring the market potential is based on the idea that data related to one product : would automatically tell the sales potential of another. For example, automobile parts :. (spares) replacement may depend on the number of automobiles in a particular region, r Further, the need of tyres may directly depend on the market potential of that vehicle. , Population on households may also be used as a base for measuring that market f potential if the product is directly related to all households irrespective of their status economical or social for example, the consumption of salt. If one area has twice the I population of another area, then it has double the potential of the other area. However. one should never ignore the weaknesses of the method adopted. For example, its J population alone may not indicate the total purchasing power or availability of! discretionary income. In fact, more than one series of indexes may be used to estimate' the market potential.
Use of surveys to measure market potentials

From a sample of respondents, one can determine the amount of purchases. Using tk F sample data, the average purchase per person can be estimated. Multiply this average h the number of people in that area.
Unit 12
SALES FORECASTING
Most of the market planning is based on its sales forecast. In the present environment, Is are produced in anticipation of the demand. Therefore,
a) purchase of inventory b) production c) manpower requirements d) advertising expenditure and e) cash flow needs are some of the areas where decisions are based on a sales forecast. Many companies make several plans based on alternative forecasts. Sales forecast is a complex subject which uses a variety of concepts and techniques. Sales forecasting methods are of two types namely. 1) Subjective methods 2) Objective methods Forecasting
forecasting is an attempt to see the future by examining the past." -Alderson and
Green Itinvolves the determination of the expected values of some variables in the future based I on past and present behaviour, the management's intentions and the constraints imposed on the enterprise. It is an objective and systematic activity different from mere guesswork. Itis quite complicated yet inevitable because it is an integral part of planning. It is not only aplanning device but a controlling tool also. Even if it is imperfect, it acts as a monitoring device during the implementation phase.
.. .
12.6 METHODS OF SALES FORECASTING ________________________

A. The diagnostic methods of sound managerial judgement or the intuitive method. Under this method, the research analyst is not concerned with the cause and effect relationship. All the methods under this group go by the intuition of the expert.
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Various methods under this category are as follows:

Munshi Forecast - (short term) Lost Horse Method Delphi Method (in the long run)
1)
Munshi Forecast
Scientific forecasts may not be so accurate as the Munshi forecast since he collects all information in his mind and based on his vast experience, he makes a forecast.
2)
Judgement method or the Lost Horse method

Some analysts may depend on value judgements by some expert. This is also called the Lost Horse Method. The basic idea is to set up the position of a person who has to make a decision regarding the direction in which the lost horse might have gone. Information on national income, consumption, investment import export may be collected and plotted on the graph which will provide direction. By sheer inspection, one may decide the future direction.
3)
Delphi Method
Experts or knowledgeable people are invited and they give their forecast without giving reasons. A questionnaire may be used for this purpose.
B.
Barometric Methods
1) 2) 3) Historical analogy Product life cycle concept Survey methods a) b) c) leading indicators coincident indicators lag indicators
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1) Historical analogy
For macro level forecasts, we try to find out a period in history where conditions similar to those prevailing in our country were present in the past. Say conditions in 1890 in USSR, USA, 1910 in UK, 1920 in USSR may be same as in the 1970's in India. This may give an idea of long-run forecast. Though it is not a very sound method, it is used for national forecasts.
2) Product Life Cycle Concept

* Product Life Cycle Concept is also used to make a forecast about the product sales in the future.
3) Survey Method
Through a survey, data may be gathered which may act as an indicator. Economic indicators are statistics that tend to increase or decrease in value ahead of or at the same time or after some time. The choice of indicators is crucial. Indicators may be of three types namely a) Leading indicators or advance indicators move in the same direction as the series being forecasted but they do so ahead of times. For example, the demand for transformers can be forecasted based on the indication of house activity in a particular region. b) Coincident Indicators move in the same direction at the same time like employment and industrial production. c) Lagging indicators move in the same direction but behind the series for example, unit labour cost. The National Bureau of Economic Research publishes data for coincidental lagging indicators and leading indicators based on 350 time series.
Trend Analysis through Extrapolation

This method is concerned with the extrapolation of the series based on past behaviour. if y=fxs x c x i, where trend = long term movement, seasonal, cyclical and irregular.
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Regression Analysis
Regression analysis can be used in sales forecasting to measure the relationship between a company's sales and other economic variables. For example, an automobile manufacturer may find that the sales of his car is dependent of the income level. In other words, as the income level goes up, the sales goes up. Regression analysis is one of the most frequently used techniques in social science research. It is often used when the researcher is interested in estimating or predicting the value of one variable, given the value of another. For example, it is believed that advertising expenditure and sales are related in such a way that the former increases sales. In such a case, one may like to know the likely sales against a given advertising expenditure or vice versa. A regression analysis is used for this purpose. The relationship between the two variables can be either linear or non-linear. When the relationship is linear, a change in the independent variable is followed by a constant absolute change in the dependent variable. The linear relationship between the two variables x and y is of the form Y = a + bX where Y is the dependent variable and X is an independent variable. It is conventional to use the terms 'independent variable' for X and 'dependent variable' for Y. This use does not imply that X depends on Y or Y causally depends on X. The regression model does not necessarily imply any cause and effect relationship between the two variables. However. the model implies that a change in the value of X will bring about a change in Y such that the pair of observations, if plotted on a graph will form a straight line. The regression equation indicating the specific relationship between the two variables can be found out with the help of normal equations. This is illustrated by the following example. A trading company has the following territory- wise data with respect to sales and advertising Sales Territory Advertising ('000 Rs) Sales (in units)
1 40 100
2 30 80
3 20 60
4 50 120
5 60 150
6 40 90
7 20 70
8 60 130
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The table 12.1 below will give us the calculations

Table 12.1
Sr. No. 1 2 3 4 5 6 7 8 Y 100 80 60 120 150 90 70 130 800
Sales Territory X 40 30 20 50 60 40 20 60 320 E X = 320 EY=800

:
Sales (in units) X2 1600 900

400
Advertising ('000 Rs) XY 4000 2400 1200 6000 9000 3600 1400 7800 35400
2500 3600 1600 400 3600 14600 E X = 14600

2
E XY = 35000
The linear regression is of the form Y=a+bX where Y is sales and X is advertising, the parameter a is the intercept and the parameter b is the coefficient of variable X. The two normal equations for fitting the regression line are:
Substituting the values calculated above in these normal equations, lij 800 = 8a + 320b !n) 35400 = 320a+14600b
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Unit 12
Multiplying (i) by 40 and then subtracting (ii) from the resultant figures,
Cm) 32000 = 320a + 12800b (iv) 35400 = 320a + 14600b

- 3400 = - 1800b therefore b = 3400/1800 = 1.8889 approx
4
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Substituting the value of (b) = 1.8889 in (i) above 800 = 8a +(1.8889x320) or 8a = 800 - 604.448 24.444 approx Hence, the regression equation is
'
Ia=
Yc = 24.444 + 1.889 X (Rounding the values to 3 decimal places)
'_
In the above calculations, we have used the normal equations to estimate the parameters a and b. Alternatively, the values of a and b can be obtained directly by applying the formulae. Parameter bean be computed by the following formula: b= n Applying this formula to the data given in Table 12.1 we get 8(35400)-(320)(800) Hence, the regression equation is Yc = 24.444 + 1.889 X (Rounding the values to 3 decimal places) In the above calculations, we have used the normal equations to estimate the parameters a and b. Alternatively, the values of a and b can be obtained directly by applying the formulae. Parameter b can be computed by the following formula: b= n(XY)-(X)(Y) f; 3 * {
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independent variable. A high value of parameter b shows its importance in the regression equation. The parameter a is the Y intercept of the regression line. The magnitude of this intercept shows the value of the regression function at X = 0. When a is 0, the regression equation of Y on X will pass through the point of origin where both X and Y are 0. Alarge intercept suggests that the dependent variable Y is determined by something other than the independent variable X. In such a case, the researcher should look for one or more other variables, the inclusion of which would improve the regression model. A market researcher who uses the technique of regression analysis would be interested in knowing how good it is. In other words, how much variation observed in the dependent variable is explained by the regression equation. For this purpose, he is required to calculate another measure known as the coefficient of determination which, in fact, is the square of correlation. The coefficient of determination (r2) is calculated as follows: (Total variance in the dependent variable) - (Variance "unexplained" by the regression equation) Total variance in the dependent variable
\2
Symbolically,
r2 =
where Yc, a new term, is calculated by applying the different values to the independei variable X, as given in the problem. Taking our example where the following regression was arrived at Yc = 24.444 + 1.889 X Table 12.2 gives the calculations for determining r2 The vali about 9-5.6 per ( regressi Inoure> relation*
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Table 12.2 : Calculations for Determining r 2
X 40 30 20 50 60
40
Y 100 80 60 120 150 90 70 130 800
Y.-Y 0 -20 -40 20 50 - 10 -30 30
(Y.-Y)* 0 400 1600 400 2500 100 900 900 6800
Y
c
Y.-Y
1 C
(Y.-Y )2
v ,
c
100 81 62 119 138 100 62 138
0 -1 -2 1 12 -1 0 8 -8
0 1 4 1 144 100 64 64 378
20 60
N = = 100
\2
= 6800 - 378 6800 = 0.944 The value of r2=0.944 shows that the regression equation Y=24.444 +1.889 X explains about 94.4 per cent of the total variation observed in the dependent variable. Thus, only 5.6 per cent of the total variation is the dependent variable, Y, remains unexplained by the regression equation. Inourexample, r2 is extremely high, though it may be sometimes small. Acertain degree of relationship between two variables may occur on account of random sampling variation. It 245
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is, therefore, desirable to test the hypothesis that r2 = 0. Let us illustrate this with respect to our example. The null hypothesis, The alternative hypothesis, 1^:^ = 0 Ht: r2 ^ to 0
A t-test is used to test the null hypothesis. The formula used is: _ Wn - 2 t y with n - 2 degrees of freedom Applying this formula to our example 0.97 >/8- 2 Vl -0. 94 _ 0-97 x 2.45 0.24 = 2.38/0.24 =
9.92(approx) The critical value of t at = 0.01 for 6 degrees of freedom = 3.707. Since calculated^ exceeds critical t, the null hypothesis is rejected. In other words r2 ^ 0 12.7 SUMMARY ______________________________________________
When we are interested in measuring the degree of relationship between two variables we use another concept, i.e. coefficient of correlation. The two terms correlation n regression, sometimes used interchangeably, are distinct. Correlation is a statistical techiijiit used for measuring the relationship or inter-dependence of two or more variables, nonet: which is restricted by the researcher. Correlation does not necessarily indicate a caua relationship between two and more variables. || Regression analysis, on the other hand, refers to the technique for deriving an equationttoP relates the dependent variable to one or more independent variables. It is used to prei one variable on the basis of another variable. It is also helpful in bringing out the cans
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relationship between two or more variables. Whenever a correlation analysis is to be attempted, it is advisable first to draw a graph of the two series in question. Such a graph is known as a scatter diagram wherein the values of the two variables are plotted in such a manner that a point on the graph indicates a pair of values. The usual practice is to plot the independent variable on the horizontal axis and the dependent variable on the vertical axis. A scatter diagram reveals whether the movements in one series are associated with those in the other series. In case of a perfect correlation, the points will fall on a straight line in a diagonal form. If this straight line is rising on the right, the correlation is positive and if it is falling, the correlation is negative. 12.8 KEYWORDS . Vital'.essential Corollary: proposition that follows from one already proved 12.9 SELF-ASSESSMENT QUESTIONS______________________________ Ql. What is regression analysis? Q2. What are the different types of sales analysis? Q3. Elaborate the different types of sales forecasting methods and illustrate your answers with examples. ____________ ______
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13.1 INTRODUCTION
A new product should be developed before it is launched. It is very necessary to test the product in the market for various reasons. Once the product is accepted by the target customer, then we say the test marketing has been successful. In this unit, we are going to discuss in detail about the new product development, test marketing and advertising research and why research is important for advertisement.
13.2 NEW PRODUCT DEVELOPMENT

A company may find itself in a situation where it may be advisable to develop a new product. When sales of its current range of products have been declining over the past few years or when it receives complaints about its products from customers, distributors. retailers, it may have to find the possible reasons for the same. This may lead to the improvement of the existing product or the development of an altogether new product. As we know, the concept of product life cycle suggests that a product passes through different stages. When a company finds that some of its products have entered the declining stage, itrna; have to take concrete measures to replace them. This can be achieved in two ways acquisition and innovation. We are concerned here with the latter which can be broadly of two types: internal innovation and contract innovation. New product development can be carried out in one of the following ways: New product features can be developed by adapting, modifying, magnifying, minimising substituting, rearranging or combining the existing features of a product. Different quality versions of the existing product can be developed so that the needs of different markets can be met. Additional models and sizes of the existing product can be brought out. If the company pursues the policy of internal innovation, it implies that it has its o\\r research and development department which is engaged in the development of new produc> including modifications and improvement in the existing ones. If, on the other hand, tl; company pursues contract innovation, it implies that it has engaged the services of outsiu researchers or new product-development agencies for introducing new products foul company. Sometimes the company may prefer acquisition while at other times itm follow the strategy of innovation.
1)
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New Product Development & Test Marketing
There is a dilemma faced by the management with respect to new product development. On the one hand, the company finds that it is necessary to develop new products, on the other, the stake involved in the new product development is very high on account of research and development activity being highly capital intensive. If the new product fails in the market, the company has to sustain a heavy loss. It is, therefore, necessary that new product development be carried out with extreme caution. New product development is an extremely difficult and time-consuming process. The role of marketing research in new product development is not as straightforward as it might appear. Unforeseen situations may arise which may force the company to abandon its projects mid-way. Such situations arise not infrequently. One has to be fully informed about the market and product opportunities before venturing into a new product development project. It is desirable to proceed step-by-step in this process.
13.3 NEW PRODUCT DEVELOPMENT PROCESS

In all the below-mentioned stages, market research techniques can be applied though they would vary in each stage. In the section that follows, these stages and the major marketing research techniques used therein are discussed. 1) Idea Generation 8 The objective of this stage is to obtain t ideas for products i existing products v existing products There are several sources of new-product ideas such as customers, company salesmen, dealers, scientists, competitors, the top management, industrial consultants, advertising agencies, marketing research firms, industrial publications, universities and commerical laboratories. Several methods can be used to generate new ideas. These are briefly discussed below. new
new attributes for the new uses of the
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Attribute listing
Major attributes of an existing product are listed. Then, one is asked to imagine ho each of these attributes can be modified so that the product will improve. In t connection, Osborn suggested that new ideas can be generated with reference tod particular product. Can it be put to other uses? Can these be Adapted Modified Magnified Minified Substituted Rearranged Reversed Combined ,
Forced relationships This technique involves the listing of several objects and then trying to find how e object can be combined with the other objects. For example, a tyre and tube, f separate products, were combined into one - tyre and tube - fulfilling a 'felt need1 \ using in a limited space. Morphological analysis
This term refers to a variety of techniques which are similar to forced relations! and attribute listing. Although there are several variations, a simple meth morphological analysis consists of the following stages: First, the parameters oft situation are listed. Second, each parameter is sub-divided into its smallest nai Third, these parts are represented in a matrix. Finally, all possible combination^ parameters and their sub-parts are examined. In this way, the morphological a will enable identification of the components of current successful products and ft new combinations of attractive features. Such an analysis has been extremely sue* in the development of new techologies. No doubt morphological analysis MI consuming. But, the time spent is justified. A thorough search of all combinations would not be possible without morphological analysis.
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Problem analysis
Here, the consumers are approached to find out if they have experienced any problem while using a particular product or product category. One can then select one or two major problems from such a list on the basis of their importance, the frequency of their occurrence, and the cost of effecting improvement in the product. Brainstorming This technique involves the use of a small number (usually between six and ten) of consumers who are asked to participate in a 'brainstorming' session. The purpose of such a session is to generate a number of new product ideas. In order to ensure that abrainstorming session is most effective, it is necessary to comply with certain rules suggested by Osborn. These are: (a) No criticism of any new idea should be made, (b)Freewheeling is welcomed, indicating that the wilder the idea, the better it is. (c)A good number of ideas must be generated (Quantity is important at this stage) (d)Participants should suggest how two or more ideas can be combined into still another idea. Synectics Some authors feel that a major limitation of brainstorming session is that it produces solutions too quickly before developing some perspectives. Instead of defining the problem specifically as in brainstorming sessions, the Synectics approach suggested by Gordon defines the problem so broadly that the participants in the group have no idea of the specific problem, hi such an exercise, the participants give their viewpoints and as more and more facts are gradually interjected, their discussion tends to move towards specificity.
Concept Development and Testing

It should be obvious that all the new product ideas generated cannot be pursued. This may be on account of several reasons. The company may find that a particular new product idea is incompatible with its major objectives. Further, it may not have the requisite production or marketing skills. Another possible reason for not pursuing anew product idea is that it may not be technologically feasible. Thus, a preliminary screening will eliminate a number of new product ideas. Those which survive this screening are then pursued further through concept testing. The major objectives of concept testing are as follows:
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Another major difference between the product testing stage and the development and testing stage is that the former involves the trial use of th by a group of respondents while the latter attempts to measure only the initial i in the proposed product. Here, some kind of usage test is undertaken to whether the respondents would be interested in it and whether they would sut buy it if it were available in the market.
Usage tests
The new product can be tested in different types of usage situations. There types of usage tests: laboratory usage tests and consumer usage tests.
In the former test, R and D people may test a new product with respect t more attributes. For example, a car manufacturing unit will have its R and D c whose task is to effect improvements in the car, say, economy in fuel consui and D personnel may evaluate the proposed vehicle by undertaking test driv varying conditions. Generally, laboratory testing is found to be more rigon ensuring that performance norms come up to a certain level.
A point worth noting is that a consumer usage test and the laboratory test i different evaluations of the same product. This is because the consumers' ] m be different and accordingly they may attach importance to those < whic were not considered by the R and D department. In a consumer us small number of consumers are given a sample of the new product. They i to use in a normal fashion and later indicate their reaction to it as also thel that the have noticed.
A variant of the consumer usage test is the blind usage test. In such a test, the c is given the product in question without disclosing its brand name or adve This method is particularly useful when a new formulation of an establishe to be tested. In usage tests, the researcher should ensure that respondents have actually new product and that their responses are free from bias. This is important time respondents indicate their willingness to buy the new product without e doing so. This would give a highly favourable picture of the product.
Business Analysis
New product ideas that survive the product evaluation and developmert th taken up for an in-depth analysis to ascertain their business attractive
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;ept duct lout tently
this purpose, it is necessary to project the future sales, costs and profit, and if such estimates are reasonably good, the product in question is commercialised. However, as new information becomes available, the estimates of sales, costs and profit may have to be revised. In order to carry out business analysis and commercialisation of the new product, two important techniquestest marketing and simulated test marketingare used. Both these techniques are based on the application of experimental and quasi-experimental designs. The increasing use of these designs show that they are dependable and yield reasonably good results. When a new product concept has scored high in a business analysis, it is passed on to the R and D department which develops one or more physical versions of the accepted product concept. It develops a prototype that satisfies the predetermined criteria. 13.4 TEST MARKETING __________________________________________ After the concept testing and development of a new product, it is necessary to find out whether it is going to be accepted or not in the market. This is achieved through test marketing. The main objective of test marketing a new product is to reduce the commercial risk when it is brought in the market. Test marketing is a controlled strategy done in a limited and careful selected way in a selected market place where in the main objective is to predict the sales or profit. From the above definition, it is clear that test marketing is essentially an exercise in experimentation, where the marketplace is a laboratory. It also brings out that the predictability of sales or profit is the objective of test marketing. 13.5 USES OF TEST MARKETING __________________________________
ire two one or lartment iption.R es under jrous for may give attributes sage test, a y are asked the defects ne consumer vertisement. shed brand is
ually used the tantasmanya \outeventuaUy
There are two uses of test marketing. First, it may be used as a tool for managerial control. Second, it may also be used as a predictive research tool. These two uses are discussed msomedetail here.
Test Marketing as a Managerial Control Tool

pment stage are tractiveness.For
lest marketing frequently serves as a pilot operation for large-scale marketing activity. Whenacompany intends to expand its business operations, some element of risk is involved.
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This is particularly true in respect of new products or brands where the management m be understandably apprehensive. There are, for example, many physical problems such the handling of the product, breakage, storage, stocking and transportation which if handled properly, may prove to be costly mistakes. In such cases, test marketing is u to improve the mechanics of the marketing operation so that the management may know advance the problems that are likely to arise and hence improve its marketing operation
Here, the role of test marketing is limited. It is not advisable to undertake an elaborate a time-consuming test marketing as this may be unnecessary. It is used as a device to g experience, to identify the problems likely to arise in marketing operations, and to eventua develop a sound marketing programme. It is not used for purposes of prediction of sal or profit.
Test Marketing as a Predictive Research Tool
Test marketing is often used as a predictive research tool in two different situations. H are: (i) the introduction of a new product or brand, and (ii) the evaluation of alterna marketing variab 1
Test Marketing for New Products or Brands
When a new product or brand is to be introduced in the marketplace, the manageme apprehensive about its performance. This will be true particularly where the new pro^ does not have any direct substitutes. In such a case, the management neither ha^ information of its own nor any experience of the others. In such a situation, test mark can be used to predict the likely performance of the new product. W
More often, one finds that test marketing is used for a new brand of an existing pr category. However, a new brand may be substantially different from the other^ inB
jR
product category or it may be just another brand and may not be very different fronH others. In the former case, some form of blind product testing is desirable to fmdB whether the new brand is more acceptable to the consumers. In the latter case in \ new brand is just another addition to the product category, test marketing ma\ ' desirable. When heavy investment is required for the new brand, it may be ad\ ISM run a test market to ensure its market acceptability first. M Test marketing is also used while recycling an existing brand. When a company i- xeriB considering a new packaging for its product, its repositioning, or some improve:nenB existing brand, it may use test marketing before introducing such a change. In .asJ| existing brand, test marketing should be used only when the change is substantial otll it will be only a wasteful expenditure.
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When a test market is conducted for a new product or new brand, the management would like to know how this new product or new brand will do in terms of sales and profits at the national level. In this regard, three approaches can be used. 1. Buying Income Method: Here the test area sales of the new product/brand are expanded by the ratio of national income to the test area's income. Thus, Estimate of national = - mcomeo ecountr y sales Test area income
x
Test area sales
2. Sales Ratio Method: Here the test area sales of the new product/brand are expanded by the ratio of national sales of other product to test area sales of this other product. Thus, Estimate of national sales = National Sales of other product
x
Test area sales of test product
Test area sales of this product This 'other' product or brand should be related to the test product in some way. the management should have sufficient evidence to think that the relationship in regard to the 'other' product would hold good with respect to the test product. 3. Share-of-Market Method: Here the ratio of test area sales of new product to the test area sales of the whole product category is to be multiplied by the national sales of this whole product category. Thus, Estimate of national sales = Test area sales of new brand
x
National sales of this whole product
Test area sales of this whole product Of these three methods, the share-of-the-market method yielded the most accurate results. At the same time, since it needs information of all the competing brands, it is very costly. Subsequently, other methods in the form of mathematical models have been suggested for projecting test market results and are generally based on the consumers' panel data. It is sported that the use of panel data in such models has given very accurate projections of sales of new brands at the national level. The discussion of these models is beyond the scope of this book.
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Test Marketing for Evaluating Alternative Marketing Variables

Another predictive use of test marketing is to evaluate the alternative individual marketing variables. For example, test marketing may be used to find whether a new media pattern is better than the existing one and, if so, to what extent. Similarly, one may use test marketing to ascertain whether a higher advertising budget is more profitable than a lower one. One can think of several situations where test marketing can be applied to measure the effect of a variable. However, one has to be extremely careful in designing a test so that it gives dependable projections. Alittle later we shall discuss design methodology for a test market. Amore important topic is discussed here: should test marketing be conducted or not?
13.6 GUIDELINES FOR TEST MARKETING

The management is often faced with the dilemma of going in for test marketing or not. This decision has to be based on a cost-benefit analysis. Against the expected benefits, the management has to examine various costs involved in a test market. As the likely benefits of test marketing have been discussed, here the discussion is confined to the other aspect, namely, costs. Both direct and indirect costs are involved in test marketing. The direct costs include (i) cost of setting up a pilot plant (ii) commercials (iii) advertising (iv) expenses incurred on the production of point-of-sale material (v) couponing (vi) sampling and (vii) trade allowances offered to obtain distribution. An indirect cost, for example, would be the cost of disclosing a new product idea to a competitor. Other indirect costs are: (i) deployment of sales force from the existing and established products to test marketing (ii) opportunity cost of sales lost in case of a successful introduction (iii) possible negative impact on other products, etc. The fact that test marketing would mean high direct and indirect costs, necessitates that there should be a very careful analysis of benefits and costs before using fe this device. F It is advisable to spend adequately on a test market so that one is able to get decisive j results rather than to save on its designing and implementation, reducing its scope and I thereby obtaining inconclusive results. In the latter case, the entire expenditure on a test | market will be in vain. I In deciding whether or not to undertake a test market, major problems associated will F test marketing must also be considered. An overwhelmingly important problem is the ki F of projectivity of the test market results. This is due to a number of reasons. One posî;
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reason could be that a company's competitors might have learnt about its test marketing and engage themselves in monitoring its results. They may then come out with a similar product leading to stiff competition.
When to Test Market

Having looked into both the costs and benefits and the problems likely to arise in test marketing, the company may like to decide the timing of a test market. Afew considerations become relevant in deciding as to when test marketing should be undertaken. First, the cost and risk of failure should be considered against the profit and probability of success. Aproduct with low costs and low risk of failure may not need testing. Second, the investment needed in plant both, for test marketing and national introduction, should be considered. In case the difference in investment is not much, one should prefer introducing the product to the national level. In contrast, if the difference is considerable, test marketing should be undertaken first. third, the possibility and speed with which the competitors are likely to initiate and/or preempt the proposed product should be considered. The faster the competitive firm's response (and the more likely it is to do so), the stronger the need to avoid test marketing. Fourth, the effects of a national failure on the trade and consumers should be considered. One should ascertain whether the company's reputation and its other products are likely to suffer in the event of a failure in test marketing. In the light of these factors, a company may decide in favour of or against launching a test market. If in a given situation only one factor is relevant, then the company may decide on the basis of only that factor and this process will be much simpler than in other situations where two or more factors, mentioned above, are involved.
Guidelines for Designing Market Tests

The following guidelines will be helpful in designing a good market test: The market test must be representative of the whole. This is an extremely important aspect otherwise the projectivity of the test will be faulty. In order to achieve this, the sample markets should be randomly dispersed. It may be desirable to stratify the universe by regions or states first and then choose individual markets within the regions or states. The sample markets should be normal and should not be dominated by one industry.
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2.
It is desirable to run the test for at least a year. This is to ensure that a seasonal pattern, if existing, does not distort the results. This is particularly necessary in the case of those products that are likely to have a seasonal pattern. Further, the test market should also reflect a repeat-purchase situation. This is possible only when the duration of the test market is sufficiently long. The test market must be carefully controlled. As far as possible, extraneous variables must not be allowed to unduly influence the test. This is particularly relevant in testing alternative variables where a control group is necessary. Where a control group has to be set up for comparison with the test area, one should ensure that both should be selected in an identical manner. Similarly, the control group should be as random!} dispersed as the test area in addition to being as large as the test area. It is necessary to ensure that the test market gives accurate results. Without a relevant and accurate measurement of the test market, the projective results will be misleading. In this connection, three things should be looked into: (i) the measurement criterion such as sales, market share or profit (ii) the selection of the base period against which comparisons are to be made (iii) the method of projecting the results of the test market. It is advisable to test only one variable at a time since a large area is needed to test even one variable. Moreover, the introduction of another variable in the same test market may lead to unnecessary complications. In order to ensure that projections made on the basis of a market test are realistic, it is advisable to use at least one year's back data as the base. This will enable us to choose the most appropriate method for forecasting. Sometimes, it may be desirable to use more than one method for forecasting and to average the projections obtained from these methods. The basic principles in market tests should never be sacrificed for the sakeo expediency. A market test where several important principles are compromised^ lead to confusing and misleading results. It is desirable to undertake basic marketing research prior to the test marketing.] Adequate research done before running a test market will give more reliable results, j At the same time, it may indicate that test marketing is not needed in certain c Greater attention should, therefore be given to pre-market test research in orderlj derive the maximum advantage from the test marketing.
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Other Approaches to Test Marketing There are some other types of test marketing which are different from what has been mentioned above. One approach is the controlled test market or mini-market test. In the controlled test market, the test is run in small area/areas where an effective control over most of the marketing variables can be exercised. The advantages of the controlled or mini-market test is that it can be conducted in a very short time and is extremely economical. One disadvantage is that it does not have projectability. As Achenbaum has said, "mini-market testing is an excuse for real testing: like so much in research, some are more concerned with cost and speed irrespective of utility." The second type of test marketing is known as the pre-emptive roll-out. When a company feels confident about the new product and finds that competition is going to be heavy, it may use this method. It may introduce the new product in a few markets or in a particular region of the country. Although such markets may not be representative of the entire region or country, they may give some indications of the acceptability of the new product. Obviously, introducing the product in a few markets would involve much less risk as compared to that in a national introduction. Another type of test is known as the simulated test market. High costs of test marketing have led to the development of simulated test markets, especially for frequently purchased consumer goods. These tests are conducted in a laboratory environment and involve instate shopping. The method is normally used in measuring an alternative marketing variable rather than a new-product introduction. Here, the stores in a marketplace are split into two groups, each containing one approach. It is necessary to control test markets and to ensure that extraneous considerations in the two groups do not distort the test. 13.7 ADVERTISING RESEARCH A study done by the Centre for Media Studies emphasises the phenomenal growth in advertising that has taken place in India in recent years. It observes that a number of factors have contributed to this growth. First, advertising expenditure has crossed the Rs 1000 crore mark. Second, advertising through TV has become a force to reckon with. Third, consolidation and realignment of advertising agencies has taken place. Fourth, newspapers and magazines have to woo advertisers and advertising agencies. Fifth, advertising expenditure is no longer questioned following the new buoyancy in the market.
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13.8 IMPORTANCE OF ADVERTISING

Another study shows that five consumer megatrends have swept across the urban landscape in India. These are: the new individualism, the growing multi-culture orientation, the search for status, a harder look at brand values, and the new aspirations among the consumers. These megatrends have emerged as a result of four forces of change in the Indian society. These forces are: more purchasing power with consumers, the availability of a wide variety of products and brands, the availability of greater information about products and brands, and changes in the socio-economic environment in the country. In view of these developments, advertising has assumed more importance in recent years. This rising trend will continue on account of a number of factors such as the increase in urbanisation, the expansion of education, the increase in the per capita income, etc. This would mean that companies will give far more attention to their advertising efforts, use more sophisticated and improved advertising techniques and be more concerned about knowing the impact of their advertising efforts.
13.9 NEED FOR ADVERTISING RESEARCH
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The role of research in advertising can be seen in various stages of advertising planning. First, what should be the objectives of advertising? Unless the objectives are clear, advertising cannot be useful. Research would enable the company to be clear in its objectives of advertising. Second, advertising research should be used for developing a strategy for marketing the product in question. Further, the selection of the target audience can be facilitated by advertising research. In this connection, mere demographic classification will not be adequate. It may be equally necessary to pay attention to product usage behaviour. Another aspect where research can be useful is the selection of message that an advertisement should carry and through which media it should be conveyed. This is a major area of advertising research. Finally, research has to concern itself with the evaluation of advertising in order to find out whether the expenditure on advertising has been justified or not. If not, the reasons should be ascertained so that an improvement in advertising can be made in the future. In short, research can be instrumental in increasing the efficiency of advertising as a result of which the pay-off from advertising expenditure will increase,
13.10 MEDIA RESEARCH I

The main issues in media research are
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How to choose amongst media typestelevision, radio and newspapers?

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How to decide on a specific insert within a particular type of media, say, television? In order to decide on these two issues, it is necessary to have some data. The Advertising Research Foundation (ARF) suggested the following types of data for this purpose: 1. Media vehicle distribution: The circulation number for a magazine or newspaper or the number of television or radio sets available to carry the advertising. 2.Media vehicle audience: The number of people exposed to the media vehicle. This would be larger than the number in (1) above as more than one person reads the same newspaper/ magazine or watches the same television set.
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3. Advertising exposure: The number of people exposed to a specific advertisement in the media vehicle. This number would be less than the number in (2) above as all those who are exposed to a newspaper/magazine may not notice a particular advertisement.
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4. Advertising perception: The number of people who perceived the advertisement in question. This number would be less than that in (3) above. The people may perceive an advertisement because of several factors such as its large size, use of attractive colours or its positioning in the media vehicle or on account of the product involved. 5. Advertising communication: The number of people who comprehend specific things about the advertising. This number would obviously be less than the number of people who merely perceived. 6. Sales response: The number of people who buy the product in question as a result of advertising. This number would be far less than that in (5) above. Itmay be noted that of these six categories, there is an interaction of media and message in the last four categories. This makes it difficult to obtain the numbers for media alone in respect of these categories. Accordingly, media vehicle data is generally obtained for the firsttwo categories, viz. media vehicle distribution and media vehicle audience.
Media Audiences
i research comprises, inter alia, the measurement of the size and break-up of individual vehicle audiences. We will discuss this under two heads (i) print media and Bradio and television.
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Print Media
Prior to the reports of the Audit Bureau of Circulation (ABC), the measures regarding the individual vehicle audiences were those which the media themselves claimed. Such measures were rather inflated as any individual media vehicle would suggest that its circulation is far and wide. Since the ABC's reports are now available, these inflated measures have ceased. The ABC compiles its report which gives the size of circulation of a newspaper/magazine on the basis of certified audits. i This information, while being useful, is not sufficient. It is difficult to precisely estimate the size of audience for a particular publication. The data collected by merely asking respondents as to whether they have looked at a particular copy would be unreliable. This is because some respondents may regard reading a particular magazine as a status symbol and hence they may report an exaggerated readership. Likewise, reading of some magazines may be regarded as below one's status and hence their readership may be reported to be much less than in reality. i
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Another important aspect in determining the audience size for print media is the extent of duplication between magazines. This is because the readership of three or more magazines among respondents is quite common. But the data on readership seldom gives the extent of duplication. The problem is how to get the size of an "unduplicated" audience. Adetailed study to determine the duplication among a large number of magazines would obviously be very expensive, not to mention the time it would involve.
Radio and Television

There are four methods to measure the size of the audience for any radio and tele\ programme. These methods are briefly discussed below: Coincidental method: First of all, a sample of households having a telephone is selected This is followed by an inquiry on telephone as to whether a particular programme on radii1 is being listened or being watched on television. Other information such as the name of the sponsor and the product being advertised is also collected. The main advantages of this method are that it is quick and economical. It has som' limitations though. First, the method has to be confined to only those households whid own telephones. In a country like India, a large number of households do not have telephone and hence they have to be excluded. Second, since the enquiry has to be conducted wli a particular programme is in progress, only a limited number of households can be contact
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in this short duration. Finally, it is extremely difficult to undertake an enquiry with respect to late night programmes. Roster recall: As the name implies, a roster or a list of programmes is used to facilitate respondents to recall as to which programmes were listened to or watched. Respondents are contacted personally by interviewers. This method has some major limitations. First, the responses are dependent upon memory. Secondly, depending on the status or popularity or otherwise of a particular programme, respondents may give their replies regardless of whether they have listened to a programme (or seen it). Third, the method is unable to provide information on a continuing basis. Finally, it is not possible to estimate duplication in the audience as respondents are approached for programmes within a short time period. It is possible to estimate the number of persons who watch both programmes, falling within the same time span on which respondents are being contacted. Diary method: As the name implies, this method uses a diary for estimating the number of persons listening to or watching different programmes. A diary, especially designed for this purpose, is issued to respondents who have agreed to furnish the desired information. Each respondent records his radio listening or television viewing along with personal data such as age and sex in this diary. If respondents accurately record their radio listening or television viewing, this method would give accurate and complete information, eliminating the errors that may arise due to memory lapse and interviewer bias. Further, it is cheaper than other methods involving personal interviewing and recall. However, in practice, one may find that respondents are not so careful in listing the programmes listened to or viewed by them. Besides, there is a lack of continuity in the flow of information as the diary method is unable to provide the estimate of an audience, ay,minute-by-minute. Apart from this, some respondents in the panel may stop giving the information sought or move to another address. In such a case, how far the panel will remain representative of the population is a moot question. The audimeter: An audimeter is an electronic machine attached to a television set. As don as the television set is turned on, the machine records it on the tape. In advanced countries, this method is frequently used. The audimeter ensures a continuous flow of information which is not possible in any of the earlier methods. This is its main advantage. toother advantage of this method is that there is complete objectivity in the information his collected. Moreover, it is possible to have a cumulative estimate of the audience since leaudimeter sample will be almost the same from month to month. The method suffers
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from some limitations as well. First, turning a set on does not necessarily mean that the programme in question is being watched. Secondly, the method cannot indicate as to who is watching a programme.
13.11 COPY TESTING ____________________________________________

Another important area in advertising research is copy testing. The word 'copy' is used to denote an entire advertisement, including the message, pictures, colours, etc., regardless of the medium in which the advertisement has appeared. Methods of copy testing can be divided into two categories, viz. 'before' tests and 'after' tests. The former category includes all those tests that are used in ascertaining the suitability or otherwise of an advertisement before it is finally released. Their purpose is to effect improvements in the copy or advertisement. The latter category includes tests to measure the effectiveness of an advertisement after it has been formally released. Despite this distinction, at times the difference between the two types of method gets blurred. This is because some 'before' methods require that an advertisement should be run in one or two media.
'Before'methods
A number of pre-test methods are used for copy testing. In this section, we will discuss the following methods: consumerjury
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portfolio tests 1 rating scales 1 physiological methods 1 dummy advertising vehicles 1 on-the-air tests i inquiries I laboratory testing
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Consumer jury: In this method, a sizeable number of consumers from the target audience are shown a set of rough and unfinished advertisements. With respect to these advertisements, they are asked such questions as: Which copy would you prefer to read? Which one would induce you to buy the product? Which headline is the most interesting one? Paired comparisons or ranking may be used by respondents. The assumption in this method is that at least one of the advertisements shown will be liked by them. Rating scales: This method involves the use of certain standards against which a copy is tested. The copy is rated on the basis of scale values. As a result, a numerical score is obtained. It may be added that weights may be assigned to different factors or items on the basis of which a copy is to be tested, depending on their relative importance or relevance. This method is generally used by professional advertising agencies which are able to 'rate' advertisements without any difficulty. This method has one major advantage as it provides a list of factors against which a copy is to be tested. However, there are certain limitations. First, the problem is how weights are to be assigned to different items. Second, different respondents will rate the items differently. It is difficult to say who is right in his rating. Third, an overall high score of a copy does not necessarily mean a superior copy. This is because that copy might have scored high ratings with respect to several items and low ratings with respect to only a few items. It is these few items which may be extremely relevant in judging the copy. Portfolio tests: According to this method, a number of alternative copies that are to be tested are placed in a portfolio. At times, the copies are placed in the dummy copies of magazines or newspapers. Respondents are given the portfolio and asked to go through it. After they have done so, they are asked to recall the copies from memory. Such a recall may be either unaided or aided. The interviewer may facilitate recall by asking about specific advertisements. The interviewer may further ask the respondent to recall the advertisement. The extent of recall will indicate the strength of the copy. Psychological tests: This method uses a number of psychological techniques to find out fereactions of respondents to a given advertisement. Techniques such as word association, sentence completion, depth interviewing and story telling are used by trained psychologists 10find out what respondents see in a given advertisement and the influence that it has on n. As it is extremely difficult to interpret the information obtained on the basis of I psychological tests, only trained persons should be appointed to carry out this task. In | w of this, only a small sample can be used for such tests. I laboratory testing: This method uses mechanical devices to measure the respondent's I schological responses to a given advertisement. The commonly used tests are the galvanic
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skin response and the eye movement. As regards the former, a device is used to measure changes in the amount of perspiration in the hands. This may be taken as a measure of emotional change as a response to an advertisement. However, the test is unable to indicate whether such an emotional change is favourable or unfavourable to an advertisement. In the latter test, an eye camera registers the continuous movement of the eye as it reads an advertisement. However, the results obtained from an eye camera are difficult to interpret, For example, if the eye was fixed on a certain point, could it be interpreted that the respondent was interested in the advertisement or that he was confused? Inquiry tests: Some advertisements may invite several inquiries from the readers about a given product or service. However, it is questionable whether a large number of inquines can be regarded as a good yardstick for a successful advertisement. Inquiry tests can take several forms. One way could be to place the same offer in different copies in different issues of the same magazine/newspaper. These offers are keyed to a specific advertising copy. If the number of inquiries linked with a particular copy outnumer the other, it may be concluded that this copy appeals more to readers. Another variant could be to give the same offer in different advertising copies that appear in different newspapers or magazines. This assumes that there are only negligible differences among different media. However, this may not be the case. Sometimes, the same offer is made through two pieces of copy. One piece of copy is carried in half the copies of the newspaper or magazine and the second piece of copy is carried in the remaining half. Inquiries received are then linked to the two pieces of copy. Inquiry tests can be developed in the form of controlled experiments to ascertain the impact of an advertisement copy. However, one has to exercise great care in isolating the effect of other factors from that of advertising. Simulated sales tests: These tests expose prospective consumers to different pieces of copy through point-of-purchase displays or direct mail. Thus, one may select two group of similar stores where two alternative pieces of copy are displayed at the entrance oral some other place in the store. Sales of the product in question are measured both beta and after the display of copy in the two groups of store. The copy in those stores whin have registered a higher increase in the sale of the product over time is regarded as; better copy. Likewise, comparisons can be made between two pieces of copy using dim; mail. While these tests are both more economical and simpler than actual sales tests, one niaj limitation is that there is no certainty that the advertisement when actually given wilfc the same result as at the time of the test.
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Day-after recall tests: These tests are generally undertaken for television commercials. The test involves an on-air exposure of a commercial in a couple of cities. This is followed by a telephonic enquiry of the respondents to find out if they can recall the message. The aggregate recall score that is arrived at is compared with a standard sc ore based on similar studies. If the score given by the commercial is higher than the standard score, it is inferred that the advertisement is useful and should be telecast on a larger television network. The main advantage of this test is that it is performed in a natural setting. Moreover, a proper sample design can be used in this method. In contrast, the major limitation is that it turns out to be a test of the respondent's ability to remember. This does not necessarily establish that the respondent will behave in a different way as a result of watching the commercial on television. How far can the recall be related to a change in the respondents' attitude and behaviour? This is a pertinent question which is difficult to answer in the context of day-after recall tests. 'After'tests There are three methods that are frequently used to test an advertisement after its formal release. These are recognition test, recall test and sales test. They are described below. Recognition tests: These tests are carried out with respect to a printed advertisement ind commonly referred to as a readership study. Here, the respondents are asked if they tee read a particular issue of a magazine. They are further asked as to what they saw and read. Generally, the respondent is shown a particular page of the magazine and then the iowing measures of recognition are taken: Notedthe percentage of readers who have seen the advertisement earlier. fen-Associatedthe percentage of readers who read a part of the advertisement which icates the brand or advertiser. ad Mostthe percentage of readers who read a major part of the advertisement. Scores are assigned to these three measures and overall scores are determined for all the 1 fatisements contained in a particular issue of the magazine. These scores are then I itedto the expenditure incurred on the advertisements. In this way, cost ratios can be Iaermined. aerecognition method has certain limitations. Some respondents may confuse specific I fatisements with similar or identical advertisements seen elsewhere. Respondents may 1 k'ethaving seen an advertisement earlier or falsely claim that they have seen it. 271
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Recall tests: In this method, respondents are asked to recall specifics of the advertisement. In the foreign countries, there are some advertising agencies that offer a post-testing readership service. To begin with, copies of test magazines are sent to a sample of respondents who are asked to read them in a normal manner. Telephone interviews are held on the following day. Respondents are read out a list of advertisements and asked to identify those which they remember and the extent to which they are able to recall. Thus. scores are assigned to the ability of the respondent to remember the name of the product. the underlying message contained in the advertisement and their favourable attitude regarding the advertisement. Recall tests, no doubt, go beyond recognition tests but it is difficult to say that recall scores indicate the desired consumer behaviour. Recall scores may be high and yet there may not be any perceptible change in the consumer behaviour with respect to the product in question. Sales tests: This method measures the effect of an advertisement on the sale of the product. The assumption is that changes in sales are as a result of the advertisement.. However, as there are several factors influencing sales, one has to be extremely careful in, establishing a relationship between advertising and sales. It is desirable to isolate the influence of other factors while determining the impact of an advertisement on the sale of the product Experimental studies can be designed to study the impact of an advertisement on sale, j 13.12 EXAMPLES OF ADVERTISING RESEARCH STUDIES IN INDIA There are quiet few examples of advertising research done in India. Some of them; listed below. Take the example ofLifeboy. The soap was introduced for the blue collar segments the caption tandurusti ki raksha kare Lifeboy this was for a particular segment afterA re-launching of the product now it comes in Orange, Blue and White wrappers. This is! the entire family. In the above example, the segment for only a specific class, as it did not have much of sales the product was re-launched as "Family Surakshaa" which is doing good market. 1
Second example is of Aritel. We remember the mushy grandparents and long last gran reunion that the airtel ad released sometimes ago. Now the new ad is sequel the gran is on his way back to the city leaving behind a visibly anguished grandfather in hisa who even planned a game of chess that evening to cheer him up. The grandson cii up from the train to play his move on the chess board. 1
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The message is single minded to underscore Airtel's vast connectivity. Another example of Fair & Lovely if you remember, it showed Mr. Kale, Mrs. Kale, and Miss.... He wanted to say Miss Kale but the girl was very fair though the father and the mother are showed dark, the girl is fair. The ad is in Marathi and is aired only in the state of Maharashtra. Now Kale in Marathi means Black and Gore in Marathi means fair. Now they are showing Khoobsurati ki shakti the ad says that you only need to be fair and have little "Jhatak Matak" to become a film star. They have taken into consideration everybody dreams of becoming a film star. Not only the company changes there ad on the basis of the research but the rival competitors also copy the punch line of the ad. Amir Khan's ad of burp burp of Coco Cola, well Dabur has decided to go with slurp, slurp with their Real oranges. The ad of surf Excel Dag Achha hai bunch of little boys playing cricket, they go through the motions of the Indian cricket team expressing leaps and celebrations all through and get nicely muddied and dirty. While now they are showing a little boy playing, his grandmother is weaving a sweater suddenly the wollen ball falls down from the grandmas' lap, the little boy runs after it falls down, falls in the mud and brings back the ball to his grandma and says "smile please". One may observe that they have not changed their target customer but have given more weightage to the punch line dag achae hai. In the cosmetic sections if we take the ads of Charmis, Emami, Nivea, Lakme and Ponds each ad has unique attributes. Now what they want to show of their product, if we consider the example of Nivea their lengths can be listed as i High quality product i Expensive Widely available i Complete range of skin care products i International brand Suitable for Indian Skin
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Expert on skin care
But if consider Lakme then the attributes would be For younger women Widely available Popular brand Offer high quality product For Fashionable women
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While in ponds it is some what For middle class women (working Class) Widely available Popular brand Good value for money Used by older women
Now, from where these attributes have been generated? It is from the research and the impact of the ads that have been aired. The question comes to our mind why ad research is necessary? The impact of the ads have to be on the target customer and the segment which they are looking for if the message is portrayed clearly. The sales volumes increases hence monitoring of ads is a key factor for all FMCG products because these products sell on ads and promotions only. In the past, marketers have often relied upon the strengths of their brands for positioning platform. Now the crucial factor of the importance is the attributes or the parameters 01 the strengths which affects the purchasing decisions. The criticality of this factor cannot be emphasised, especially in the context of sustained application of the mind churning out the attributes and parameters, some of which at least will have only a tangential relevance ti the issue of purchasing decision. Now how does these help if we consider the example of Nivea. It cues the \ 'expert of skin care' this plays an very important role if some body does not prefer Ni\ -it was earlier said 'good value for money' and 'complete range of skin products important cues of "expert of Skin care" drives the preferences for the non preferred buy Nivea.
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Among the preferrers, the cue position it was seen that 'complete range of Skin products' and 'offer high quality product' are also important drivers of preferences. These are been observed in the ad impact survey. While going through these examples one is clear about how ad research plays an important role in increasing the sales volume. /& Activity A: 1. In your day to day life you must have come across many advertising research names, write any two of your own choice.
13.13 EVALUATION OF ADVERTISING RESEARCH i and the

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the ads e message key factor ily. positioning rarneters or ar cannot be mingoutthe relevance to the position prefer Nivea, products' the i preferrers to
In the preceding pages, we have seen that a number of measures are used in measuring the effectiveness of an advertisement/advertising campaign. Both, short-run and long-term measures are used for this purpose. In the former category are awareness, day-after recall, gross rating points per rupee, recognition, comprehension and persuasion scores. In the latter category, there are changes in customer attitudes and preferences, in brand loyalty, and in sales and market share performance. In this connection, it may be noted that there are certain contradictory statements in the evaluation of advertising research. While many companies have conceded that short-run measures are not good indicators of the long-term impact of an advertising campaign, they seem to devote considerable attention tosuch measures. vertising is considered a causative factor influencing market share and sales, it ige to find that whenever the market share and sales decline, the first casualty is the advertisingbudget. Marge number of client firms do not seem to have any specified objectives of advertising, yet advertising agencies seem to tolerate this. These agencies, on the contrary, should Encourage their client firms to develop specific objectives and also objectives for their Muse.
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13.14 SUMMARY We have seen the new product development, why it is done, why it should be implemented when a product goes through a maturity stage. New development is required as people always want something new. In advertisement though, it seems to be a very simple term but proper research and a proper media is to be chosen so that the message is been read by millions of people. The most important thing is, it should be targeted to the target customers. 13.15 KEYWORDS Morphological: the study of form of things especially of animals and plants and of words and their structure Mega-trends: excellent direction/tendency 13.16 SELF-ASSESSMENT QUESTIONS ____________________________ Ql. Q2. Q3. List the steps in the new product development. Why is advertising research necessary? Identify the major areas where advertising research can be helpful.
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Q4. What are the two main issues involved in media research? Identify the type of data needed to conduct media research. Q5. How would you measure the size of television audiences? Evaluate each of the methods that can be used. ; Q6. You are the manager of a large departmental store in Pune city. You are interested in measuring the impact of the public address system on the sale of soft drinks, etc. Describe how you would go about it.
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14.1 INTRODUCTION " If your report doesn't make the information easy to understand, believable and actionable.... it is likely that the management won't value your work." - Nancy Bunn Director, Corporate Communication, Burke Inc. This statement sums up the importance of proper presentation of research data. No matter what quality of research undertaken, the acceptance of result depends on the way they are j communicated to the target audience. A report serves these functions. 1. It is a systematic record of research whereby data analysis and it findings are placed in an organised and permanent form for future reference. 2. 3. 4. The quality of research is adjudged by the report. Properly organised, lucid reports lead to appropriate actionable policies and decisions. Management perceived the value of marketing research, as atool for repeat use will depend on the usefulness of the report.
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Report writing is both an art and science. Each report is tailor made to adapt to the character of the problem, information available and the mode / preferences of the people utilising them. They also reflect on the personality, experience, knowledge, creativity and training of the person writing it. Interpretation means explanation or finding out the meaning. It involves drawing inferences from the analysis of data. Interpretation and analysis are closely interlinked. Analysis of data often includes a simultaneous interpretation of the results. For example, when the researcher calculates a coefficient of correlation, he concludes not only on the presence or otherwise of a relationship between two or more variables but also whether this relationship. if existing, is statistically significant. Further, he will also be interested to know about the implications of such an inference in so far as that particular marketing activity/problem is concerned. Interpreting data in the proper perspective is very important. In order to do so, the researcher should possess a high degree of skill and exercise, utmost care and objectivity For errors of interpretation, if committed, can nullify even the best research. To begin with, the researcher must ensure that the data collected are reliable and adequa for drawing interferences. If the data suffers from inadequacies, then even the best of the methods used in analysis and interpretation would be rendered useless.
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Presentation of Research Findings
Any research that is based on sampling is naturally subject to a sampling error. In a sample survey, there is a general tendency on the part of the researcher to jump to conclusions or generalisations on the basis of too small a sample. For example, survey results based on a sample of 20 to 30 households cannot be regarded as a representative of the household population and applied to a city having a population of two lakhs. In addition, there may be non-sampling errors such as interviewer bias, defective instruments for data collection, etc. These aspects have been discussed in this book. Further, one should ensure that the appropriate statistical methods have been used in analysing the data. One can use univariate, bivariate and multivariate analysis and several methods within the last two categories. It is advisable to take the help of the experts in selecting one or more appropriate methods of data analysis. A frequent source of interpretative inadequacy is the neglect of measurement problems. The marketing research must ensure that the measures used are reliable and valid. Absence of this check may lead to a serious mistake. Afallacy in the interpretation of the data arises when the researcher tfiinks that all differences in numbers are really meaningful. This is the area of statistical significance, a concept which is not understood by a large number of readers. Particularly in those cases where the difference in numbers is not large, the researcher must indicate whether this is statistically significant or not. In the absence of such a statement, inconsequential differences will be interpreted as real differences thereby leading to erroneous conclusions. Further, negative or inconclusive results are more difficult to interpret than positive ones. When the results are positive and are in conformity with an established theory, it is far easierto interpret them. However, when they are negative, then they may be so on account of the wrong methodology, inadequate or poor measurement, faulty analysis and incorrect hypothesis or theory. In such a situation, one has to scrutinize the negative results very carefully to identify the real cause. If one is satisfied with the methodology, the measurement asalso the analysis, then one can be confident that the hypothesis or theory is not correct. This in itself may be a definite contribution to scientific advance. Finally, it must be remembered that the data analysed related to a single point of time in the past. As such, the situation might have undergone a change and one must not be rigid in adhering to the same results where the situation is a dynamic one. tee are some of the major flaws that might occur in the interpretation of data. The problems specified above are merely illustrative. The marketing researcher should take are to avoid such mistakes otherwise he will reach the wrong conclusions. Having mphasised the need for the proper interpretation of the data, we now turn to report
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writing. The rest of this unit provides broad guidelines for the preparation of research reports. There are various types of reports. But before we discuss them in detail, let us understand how one should write a report.
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.1^ Report Writing

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After the data has been analysed and the conclusions reached, the marketing researcher has to report his findings to the management. The reporting has to be done in a clear manner so that the chances of any misunderstanding can be minimised. Oral and Written Reports Differences between oral and written reports are as follows: First, oral reports lack visual advantages. No charts, diagrams or pictures can be used, though, to stress particular points in an oral presentation, the reporter can use pauses and volume emphasis. Second, the pace of presentation cannot be controlled and regulated by anyone from the audience who is being presented an oral report. In contrast, whenever certain point is not clear in a written report, the reader can read it two or more times, if need be slowly and more carefully. This advantage is not available to one who is receiving the report through an oral presentation. Third, since a written report is bound to receive considerable attention and scrutiny from the readers, the report-writer is likely to work hard to produce an accurate report of a high quality. In contrast, an oral report will not be so precise nor will the reporter give as much time in its presentation since it cannot be subjected to the same degree of scrutiny as written reports because of the extremely limited time at the disposal of the audience for indicating its reaction. Also, established standards for oral presentation are far less rigid than for written reports. -A m
Oral Reporting
If the researcher has been asked to make an oral presentation of his research findings, he should bear in mind a few major considerations. First, he should know the audience to whom he is to report. If it has any special characteristics such as being highly qualified or specialising in a certain subject, these must be noted down.
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Another consideration in oral reporting is that it should be properly planned. To begin with, the reporter should be clear about the objectives of the report. Does he want to inform the audience of his results? Does he want to persuade the listeners to agree with his viewpoint? Does he want to recommend a certain course of action based on his study? In each of these cases, the oral presentation will be different. After the reporter has decided the objective of his report, he should gather the necessary information. If he has not already done any research, he may be required to uniformly collect data. He may have to approach some people to get the requisite information or he may collect it on the basis of his own observations. Once the information is ready, the reporter has to organise it in a logical manner. The subject matter should be divided into meaningful and comparable parts. Simple ideas should precede complex and difficult ones. There should be a logical and coherent approach in presenting the subject matter before an audience. Another point worth considering is the suitability of language. The reporting should be done in a simple and convincing manner. In order to make the communication effective, it may be advisable for the reporter to use visual aids such as charts, diagrams, tables, pictures, posters, blackboards, slides and movies. However, excessive use of visual aids may sometimes spoil the overall quality of presentation, therefore, it is necessary to ensure their judicious use. Sometimes, it may be advisable to distribute a handout containing statistical data or charts to the audience. This would facilitate both the listener and the reporter. The latter can refer to the figures or charts in the handout as he proceeds with his reporting. When an oral summary of a written report is to be presented, the reporter should exercise great care in the preparation of the summary. All major points must be covered and excessive details avoided, otherwise the focus will be lost. The reporter should ensure that within the time allotted to him, he covers all major points, including his recommendations. Written Reports Types of reports Various authors have classified reports differently. These classifications indicate the variation in their approaches to the subject. One basis of classification is the time interval. The reports could be daily, weekly, monthly, quarterly, or annual. However, all reports are not regularly brought out. There are some which are prepared for a special assignment and are known as special reports. 283
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Reports are also classified on a functional basis, according to which there could be three types of reports-informational, examination, and analytical (also known as problem-solving). The informational report is a factual report on a particular subject and it neither contains an analysis nor conclusions. The examination report goes a step further. In addition to giving facts on a subject-matter, it analyses these facts. It does not specify conclusions or recommendations though the reader can draw these on the basis of the factual information and on the analysis contained in the report. The analytical report goes a step further than the examination report. It not only presents and analyses data but it also draws conclusions and, if necessary, makes recommendations. This is, obviously, the most comprehensive report. Reports can be classified on the basis of their subject matter or field. Since there are innumerable subjects, the types of reports within a certain subject will be different from those in another. For example, reports on economics could be classified by various subjects covered within its scope such as a report on monetary reforms. Reports can be classified on the basis of their physical form or make-up. The two usual forms are short-form and long-form. For example, memoranda, letters and progress reports may follow a short-form, whereas information and examination reports may follow a long-form. Reports have also been classified on the basis of the relationship between the reader and writer. Such reports are described as administrative, professional and independent. An administrative report is written within an organisation, while a professional report is submitted by an outside expert to an organisation. Independent reports are generally prepared by non-profit research organisations and published for the benefit of the public. These reports are not written for any particular group. Reports are sometimes classified on the basis of the employment status of their authors Reports prepared in a business organisation are known as private reports while those prepared in a government or public institution are known as public reports. Here, too. , there may be independent reports which are prepared by individuals without any ' authorisation either by a public or private agency.
i Yet another basis of classification of reports is their formality. On this basis, the reports j may be either formal or informal. The dividing line between the two types is rather hazy. A | formal report is written befitting the requirements of a formal occasion. An informal report. , on the other hand, may be worded to suit an informal occasion. A report prepared by one i employee for the information of his colleagues may be an example of an informal report. 1
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contrast, a report prepared by an executive for the top management may be a formal report. These are the maj or bases of the classification of reports though it may be noted that these are not mutually exclusive. Thus, a research report may be a special report, a long report, an analytical report and a private report at one and the same time. This indicates that there are different ways-which are not mutually exclusive of classifying reports on account of the different viewpoints or approaches involved. Preparation of the Report Having decided on the type of report, the report writer should now concern himself with its preparation. This can best be done when he is clear about what aspects or points are to be covered by it. Let us first consider the format of the research report. Research Report Format Aresearch report can be written in a number of ways. However, three formats are generally followed. First, the report may use a logical pattern, which implies that the findings are presented in the inductive order, i.e. moving from specific to general. Second, the report may follow a psychological pattern which is almost inverse of the preceding pattern. In this format, the most critical information, i.e. the conclusion, is provided first, after which follow the findings supporting the conclusion. Thkd, the report may use a chronological format wherein information is given along the time dimension, i.e. the things which happened earlier precede those which happened later. This form is generally combined with other formats. The chronological format is the least popular though in respect of the problems of ahistorical nature, it is the most appropriate one. Having decided the format to be used in a research report, the researcher has now to prepare the report outline in accordance with that format. Report Outline Before attempting to write any report, the researcher must prepare a report outline. Without any outline, his report is bound to be haphazard and clumsy. An outline is to the writer that the blueprint is to the construction engineer or what the pattern is to the dressmaker. The outline will not only guide the writer as to the order of presentation of ideas but will also enable him to think before writing. This will lead to clarity in his presentation. While preparing an outline, it must be noted that it should not be restrictive and rigid, There should be flexibility built into it so that if a change is subsequently needed, it can be
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easily introduced. Too frequent changes should be avoided. If they seem to be necessary, they will only indicate that the task of outlining the report was not done properly. It should also be noted that a change of one point in the outline may involve one or more related changes elsewhere, for that point may have a bearing on one or more other points contained in the outline. 14.2 TYPES OF REPORTS ________ , _________
A report is composed of working papers and preliminary draft meant for the use of the researcher and a basis for the preparation of the final draft. Report for Publication These reports vary in content, style and character according to the magazine, journal or bulletin or the interest of the target audience. These are generally concise formats without much verbosity.
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Technical Reports These reports are meant for scientific, or technically trained people. They give minute details of planning data collection, analysis and interpretation, including bibliography and secondary sources for substantiation and the cross-examination of results.
! Executive Reports
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These reports are meant for decision makers who are generally busy. Voluminous detaiK are avoided in such reports or put in an appendix. Key findings, assumptions, conclusn and recommendations are stated in the reports. î 14.3 REPORT CONTENT ___________________ f
It is difficult to devise a standard pattern / format for report writing. Given below is a useiul outline of report for executives: 1. 2. 3. 4.
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Letter of transmission Title Page Table of Contents Executive Summary Introduction
5.
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6. Methodology 7. Findings 8. Limitations 9. Conclusions & Recommendations 10. Appendix 11. Glossary & Bibliography
>
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This is a conventional form and the logical sequencing in report writing. 1. Letter of Transmission: Indicates to whom the report is submitted, reasons for research and an official authorisation for doing the same.
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2. Title Page: Ordinarily, this page is first in the report but some people prefer to put the transmittal letter first. The Title Page shows the subject of the report, for whom it was prepared, who prepared it, date of completion and submission. This page creates the first impression of a person as far as the report in concerned. It should be simple I and dignified. 3. Table of Contents: It should list all the topics covered, with the appropriate page numbers. Major heading and sub-headings must be included. The table of contents is followed by list of tables, charts, exhibits, appendices, bibliography, etc. as iri a continuation of the same page or on individual page(s). 4. Executive Summary: Is a miniature report which includes major facts, findings and conclusions in a concise form for a busy executive. It is sometimes the only part that is read. Hence, it should be made with the utmost care after the entire report has been written. 5. Introduction: This serves as an orientation to the reader about the problem, nature and scope of research, objectives to be achieved, historical data and the hypothesis on which the study is based. 6. Methodology: It deals with the research design, the technique employed, the justification, sampling design, questionnaire and the unique problems of handling i experiences. 7. Findings: This is the longest part of the report and comprises several chapters on details such as general findings, specific market segments, geographical area, etc. 287
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These findings should be organised in a coherent and logical way. Various analytical and statistical tools help explain the significance of the raw data. Tables, graphs, etc. can be used to show the relationship of the data analysed. A portion of the detailed information can be put into the appendix for people who want to study it. This is a step towards the understanding of the conclusions and the recommendations. 8. Limitations: This provides the readers with the insight into the special conditions pertaining to the work. Limitations could be caused by time, budget, organisational and research design constraints. This guides the user as to what degree of generalisation should be done. This section should be written with balance so that the confidence in the report is not shattered or undue importance be given to it. Conclusions and Recommendations: Researchers interpret the results in light of the problem addressed to arrive at conclusions. Based on the results and conclusions and if the researcher knows the bigger picture of the clients' firm, he/she may make recommendations. If recommendations are made, they should be feasible, practical and actionable for direct policy making or any managerial decision.
9.
10. Appendix: It provides materials supplementary to those given in the main report. For example, the questionnaire used, tables, diagrams, sample data, interviews. instructions, etc. 11. Glossary: List of technical words and their meanings. 12. Bibliography: It is the final section of the book and contains information of references and secondary data. For example, names of books, journals, and periodicals.
14.4 PRINCIPLES OF REPORT WRITING__________________________

Report is the end product of research process. It is the means of communication between the researcher and the decision makers. A report should be written for specific user(s). keeping in view their interests and the usage of the report. Skills should be used to make it interesting, understandable and meaningful. Words, figures, illustrations and symbols must be used for effective report presentation.
Some of the pointers of effective report writing are:

1. 2.
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Easy to Follow: There should be a logical flow of material. Heading, sub-headings should be used. Paragraphs should be short and convey one central point in each. Clarity: Clarity in writing should be there lo avoid vagueness and misinterpretation,
Unit 14
3. Use good sentence structure: Sentences should be short, grammatically correct and well constructed. Long sentences are difficult to read and comprehend. 4. Technical Jargon: It should be used when unavoidable. No executive has the patience of sitting up with a dictionary on his table while working. Terse: Areport should be terse and concise. It is often said that "Brevity is the soul of wit". Unnecessary and lengthy explanations should be avoided. However brevity at the expense of completeness is not intended. Reinforce text with tables and graphs: Visual aids can greatly facilitate communication and add to the clarity and impact of the report. Objective: Objectivity is the true virtue that should guide report writing. Researchers j must courageously present the facts 'as they are' and not try to colour them to the likings of the management. Understanding of the objectives provides the framework for presentation. Presentable and professional appearance: Reports must be professionally reproduced with quality paper, typing and binding. Variation in type sizes and the skillful use of white space may attract attention to major and minor parts of the report and thus enhance the readability and appearance. 14.5 VARIOUS GRAPHIC REPRESENTATIONS AND ETHICAL ISSUES 1. Geographic Maps: Communicate the relative location.
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2. roi
Pie Chart: It is a with each value.
und chart divided into sections denoting Percentages associated
East West D North
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Line Chart: A chart that connects a series of data points using continuous lines,
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4. Pictographs: It is a graphical depiction that uses pictures or symbols to display data.
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5, Bar Chart: Achart that displays data in bars positioned horizontally or vertically.
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Marketing Research
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Histogram: A vertical bar chart in which the height of the bars represent the cumulative / relative frequency of occurrence.
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Ethical Issues preparation and presentation issues pertaining research integrity.
1.
There should be no deliberate misrepresentations to support personal or corporal;, views. Presentations should be honest, sober (less dramatic) and done with a neutral j angle. i
2. 'S 3.
Market problems should not be designed to suit hidden agenda.
Research design should not be compromised by deliberately misusing statistics if falsifying figures to alter results. ,,,J
4. 5.
The researcher should remain objective through all phases of research. Complete confidentiality of respondents and secrecy of data should be maintainei| (Not to be used for other clients and purposes). m
6.
Clients should not distort research findings to develop biased advertising c
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1 Activity A; a) Give any five points which should be remembered while writing a report.
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What are some key pointers to keep in mind while writing a report for executives? Mention any three which you feel are important.
14,6 MANAGING MARKET RESEARCH _______________ _ _ ^ _ _ _ _ j Agood relationship between the client and the researcher is vital to successful research. i The set of concerns and responsibilities for each should be well defined for effective management research. , Client/Researcher Interface
Job
Client Responsibility Monitor competitive and market environment Problem area/ opportunity area determination Research need determination
Researcher
Client and Researcher Joint Responsibility
Problem Determination
Problem definition
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Planning of Research
Study of hypotheses Or Alternative actions
Data needs Analytical Research design Techniques (Though client approval must be taken)
Scope of project Cost and time v/s design
Management concerns: The client may have an inhouse research department. The person who can initiate a research/maximum user in an organisation may vary. It may be the CEO of the organisation or a Product Manager. However, there are a few questions which need to be answered by the client/organisation themselves. I 1. 2. 3. 4. 5. 6. 7. 8. List of major problems to be studied. Does the identified problem need research? Is the study design relevant to objectives? Will the conclusions be valid and applicable? Affordable cost and time lag. Cost v/s benefit of research. Comparison of defined research problem with other problems that need to be studied Inhouse v/s externally sourced research. ^
ill
Managing the research department: The research director must oversee the execution of research project at each stage. In case the internal manpower is inadequate or too inexperienced to handle the project, external help may be sought to do the research.A number of research agencies must be explored to make the right choice. Steps towards making the right decisions: Define the exact need for study Review the services of various firms
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Previous experience with a listed firm (if any) Check on a research firm's references and clients Preliminary discussion with seemingly qualifying firms Proposal invitation with qualifying firms Competence of proposals Comparison of fees/ costings Ascertain the actual people deputed for work i> Final selection of the firm
After the final selection of the firm, a detailed contract should be drawn to assure a good performance by the research agency and no shortcuts should be attempted. The written contract should cover the following aspects: i | 1. Quality control for the validation of the data 1 Subcontracting of part(s) of the work 3, Methodology of research 4. Formats of report/presentations x Right of report publication 3. Penalty clause covering deficits such as delays, inadequate data I Amount, basis and timing of payments (fees) 8. Client servicing designates 9, Schedule of work progress I 10, Progress review meetings schedule ,. Feedback on report findings and implementation
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The client and researcher relationship should be of trust and warmth to ensure a smooth working. However, it should not become too personal to allow laxity in work.
Resources for Marketing Research

1. Budgetary allocations: Two aspects that need to be answered regarding finances are: a) b) What amount should be allocated for research? Who allocates the amount for each project?
Allocation of funds by the marketing research head is the simplest way of resolving this issue. 2. Staff: It is people who manage data. Data cannot be maintained without an experienced and educated research staff. Different jobs require different specialisations to deal adequately with the situation. Also a high level of self-motivation leads to the successful and timely completion of research projects.
14.7 SUMMARY __________
'' ____________________________
We have seen the different topics while writing a report. Though survey plays an important role, the entire study depends upon the outcome of the report. Doctors also ask to test some tests. On receiving the report, they get some confidence in their diagnosis. On the basis of the report, the doctors prescribe medicine. Thus, on the basis of the report, the top management can take the correct strategies and hence report writing is the heart and the soul of any study. ft
14.8 KEYWORDS ______

Ethical: Relating to morals
___________________________

Q1. If you are given a task to write the report on, what would you cover in the introduction of your report? What would you cover in the methodological section?
Q2.
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15.1 INTRODUCTION In this unit, we are going to learn the modern approach of survey which is carried through internet media. Services have become a key factor in the modernisation era. Service is always tangible. One person may like the service, while in the same aspect, another person may be dissatisfied. Hence, the service organisation is always on the vigil on how to improve the service or how they can provide the best services to the customers, whether they are a bank, a hotel, an airline or railways, etc. 15.2 RESEARCH THROUGH INTERNET ERA _________________
In the present age of connectivity on the internet, it is possible to do research through e-mail or through a website which can be accessed by respondents. The biggest advantage is the speed of response. With proper enabled software, the entire process can be automated. Both, text and graphic form can be shown. Interactivity with respondents is possible with net-based applications. Research in Hotel Industry When we think about hotels, they come under the service industry, just like the airlines, railways, banks, etc. As we know, services cannot be measured. If one is happy with the j. service, it is his own experience. It may not be the same with the other person, he may feel ' that he has not been given the proper service. Hence, it all depends upon our experience [ The service industry, which is very demanding in this era, has also got tools to rank their f services. Hence, they also do the survey as per their requirements. Let us take an example j of a hotel industry service. What are the service parameters they measure? Given are ( some of the parameters which are usually measured:
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Did you avail of the airport pick up facility? Were our attendants present at the airport when you checked in? Did they carry placards with your family name written on them? Was your booking confirmed when you checked in? How was the reception counter? How was the ambience of the hotel? Had your room been cleaned when you entered it?
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Research in Service Segments
Had all the linen, blankets, pillows, bath towels, toilets been cleaned when you checked in your room? [through ervice is er person (improve r they are Were all the electronic equipments like TV, phones, air conditioner, etc. in the working condition? Was the entire toiletry like soap, shampoo, shower cap, combs, etc. available?
Was the confectionary and mini bar fully equipped with soft drinks, biscuits, chocolates, mineral water? hrough e-idvanta ge ss can be ondents is How was the room service? How was the taste of the food which you ordered?
These are some of the questions which have been asked to the customers visiting the hotel. On the basis of these questionnaire, the parameters are ranked and the necessary actions/improvements are done. In this unit you will find a sample questionnaire on the bank's credit card services about the customer satisfaction survey, which will give you an idea about how a survey is done in the service industry.
ie airlines, jy with the ie may feel ;xperience. Drank their an example > Given are
15.3 METHODS OF ONLINE RESEARCH/SURVEYS ___________________

On line research: Basically, there are three methods of doing online surveys: 1 e-mail survey . 2. HTMLsurvey 3. Downloadable interactive surveys (mail: It is the fastest and simplest route out of the three methods. There is little set up time required and the reach is wide. Anybody having a net address can be sent an e-mail. This is restricted in simple text messages. Many internet service providers have the list of segmented address according to socio-geographic and specific interest segments. HTML: This format uses graphics, grids, sound, sequencing and skip patterns. Setup time is required to make the format. This format can be used for complex questionnaire. The HTML format can be mailed to an address,or a simple mail can be sent to the address to visit a parTtctriarêBsTteafl^'answer I luestiprmaire. A connecting link is providedTnsuch casesltflfieend of the e-mail to the referred site.
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Since all the people do not have net at their homes, the number of respondents is very low.
ife ETHICAL ISSUES IN MARKETING RESEARCH ________________

Over the past decades, the use and impact of marketing research has been of tremendous growth. It is agreed that marketing research has great influence on marketing and social systems. With the rapid rise of research as a form of market intelligence, the researchers are forced to scrutinise the ethical aspects of their working.
0
Some possible ethical dilemmas are as follows:

1. Undertaking research for direct competitors 2. Different pricing for undertaking similar studies 3. Using excerpts/part of report of one client for another client 4. Giving gifts/benefits to solicit business 5. Claiming authorship of a report/survey which one has not conducted
6. Client distorting the research findings for advertising claims 7. Research firms seek information from the secretaries of a rival firm
Ethics in research underline three basic responsibilities are as follows: i Responsibility towards the respondent
Responsibility towards the client i Clients' responsibility towards the researcher
Responsibility towards the Respondents of the Study and Client 1 The purpose of the study should not be to sell merchandise. ) 2) The anonymity of the respondent, if agreed, must be protected. Various unethical practices as agreed are stated below and should not be undertaken: i Ultra violet ink - disguised customer coding
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Hidden tape recorders - to record indepth interviews One way mirrors - to view customers without their knowledge Fake long distance calls - to get a response Fake research firm identities - to gain acceptance
These disapproved methods are, however, used by many to make the research task easier. Right to choose: A person should have the right to participate in the survey or to refuse participation. Right to safety: Right to safety means protection from physical harm and psychological stress. Right to information: The subjects should have the right to information about the research proceedings, findings and follow-ups. Right to privacy: Respondents do not want to be disturbed about partaking in the study and to express feelings or impart information which is of a personal nature. For example, unsolicited emails. Abuse of respondents: Abuse of respondents can happen in many ways. For example, frequent interviewing of females below 30 year, unnecessarily prolonging the interview | which the subject does not warrant. All such practices are unethical. I 15.6 RESPONSIBILITY TOWARDS A CLIENT _______________________ I Confidentiality: The relationship should be like a doctor with his patient or a lawyer with I his client. 1 Protection against unqualified researchers: If the research area and techniques are beyond the firm's expertise, the study should not be undertaken as it increases time and cost delays, besides the inaccurate reporting. Protection against unnecessary research: A client should not be subjected to research tk&i&nflUQQUAJsd^fQi economic reasons,or that which is already done. *A
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Protection against abuse of position: A researcher is an expert in his field. Hi> | recommendations are taken on face value with confidence owingtohis position. Heshouki '
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not recommend expensive methodology when inexpensive methods can beget adequate information. Anonymity: The firm sponsoring the study should not be revealed to any outside party unless the client so agrees. Protection of confidential and proprietary information: The findings of the research are the sole property of the client. The researcher should not use even a part of it for other clients' without the prior approval of the exclusive property holder (the client). Protection against misleading data presentation: Reports should not be presented in such a way so as to impress greater accuracy than the data warrants. Over-usage of technical jargon, unnecessary complex analytical procedures, incomplete reporting, etc. should be avoided. The client has the right to know everything about research design, data collection, tabulation, analysis and interpretation techniques.
Ethical issues in the treatment of research firms

1. Additional requests: Clients should not make additional requests beyond the purview of the contract, stating they are paying a large amount on the study. It is not obligatory of the firm to do so. This leads to conflicts. 2. Financial: Budgets for the study should be indicated so that efforts are not put in to make a plan that is not actionable. 1 Disclosure of information: If the proprietary data promised by the client is not disclosed, the completion of the research becomes a difficult task. For example, data on costs, sales figures, etc. Corporate espionage: With the competitive environment increasing and the very existence of the companies under threat, they are resorting to unethical means of information gathering Le. corporate espionage. All the underlined methods are illegal. 1. Trespassing on the competitor's property. 2 Bribing the competitor's suppliers or employees. . 3 Implanting an agent on competitor's pay rolls. . 4 Theft of drawings, samples, tenders, documents, etc. . 5 Blackmail and the extortion of key employees. .
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6. 7. 8.
Eavesdropping on competitors (for example, telephone tapping). Website hacking. Implanting rumours in the market.
Marketing research is evolving into a full-fledged profession. It is imperative that all parties concerned in the research should follow certain ethics for the health of this profession. Sample questionnaire on Customer Satisfaction Survey of credit cards. XYZ Bank Limited Customer Satisfaction Survey About the Questionnaire The questionnaire is divided into sections. Some sections and some questions may not be applicable to you, in which case, you can skip these sections / questions. Most of the questions require you to merely tick the relevant responses. Kindly complete the questionnaire, insert it into the reply-paid envelope enclosed. and mail it back to us. SECTION 1 - INTRODUCTION la. On an overall basis, how satisfied are you with your xyz card ? (Please tick one box) Very Satisfied Satisfied Some Neither Somewhat Dissatisfied what Satisfied Dissatisfied Satisfied Nor Dissatisfied Very Dissatisfied i
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lb. What is the single most important reason for responding the way you did in Question I la?
j
Ic. In the last 12 months, has your xyz card, in terms of its utility and benefits, Improved substantially Become a little worse Improved a little Become much worse Remained the same
SECTION 2 - EXPECTATIONS
la. What do you like the most about your xyz card?
lb. What do you dislike about your xyz card ?
If you have been a XYZ Card Owner, prior to January 2000. Please proceed to Section4A. The following question relates to your expectations from your xyz card and the service from the bank, PRIOR TO RECEIVING YOUR CARD. I What was the single most important reason for going in for an xyz card?
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3a.
To what extent has your SCB card lived up to your expectations ? (Please tick one box) Much better than expected Better than expected About Alitte the worse same than expected Much worse than expected
3b.
What is the single most important reason for responding the way you did in Question 3a?
SECTION 3 - CARD ACQUISITION

If you have been a XYZ Card Owner, prior to January 2000. Please proceed to Section 4 A 1 a. Taking everything into account, how satisfied are you with the service provided by the Bank, when applying for your card? (Please tick one box) Very satisfied Satisfied Somewhat satisfied Neither satisfied nor dissatisfied Somewhat dissatisfied Dissatisfied
3b.
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1 b.
Very dissatisfied
What is the single most important reason for responding the way you did in Question la?
2a. How long did it take to receive your card from the time you sent in your application? (please mention the number of days it took to receive your card) _ days. 2b. Ideally, how much time should it have taken to receive your card? ( please mention the ideal number of days it should have taken to receive your card) _ days. 3a. How satisfied are you with the time taken to receive your card from the time you submitted your application (please tick one) Very satisfied Satisfied Somewhat satisfied Neither satisfied nor dissatisfied
Dissatisfied Very dissatisfied What is the single most important reason for responding the way you did in Question 3a?
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SECTION 4 A - CREDIT LIMITS 1 a. Overall, how satisfied are you with the credit limit provided against your XYZ cards (please tick one box) Very satisfied Satisfied Somewhat satisfied Neither satisfied nor dissatisfied Somewhat dissatisfied Dissatisfied Very dissatisfied
1 b. What is the single most important reason for responding the way you did in Question la?
SECTION 4 B - CARD USAGE

la. On an overall basis, how satisfied are you with the acceptability of your SCB card ? (That is, in terms of the number and types of establishments that accept your card. Please tick one box) Very satisfied Satisfied Somewhat satisfied Neither satisfied nor dissatisfied Somewhat dissatisfied Dissatisfied Very dissatisfied < f s*
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lb. What is the single most imrjortant reason for responding the way you did in Question la?
2a. Was your card nolaccepted at any establishment ? (Please tick one box) Yes No (Please proceed to Questions) 2b. Which type(s) of establishments refused to accept your XYZ card ? (Please tick the relevant boxes, and mention details-viz., name and city) Garment/Apparel /Textile store Details _____________________________ Consumer Durable outlet ________________________________________
[
H o t e l _ _ _ ________________________________________________ Petrol Pump ... __________________________________________
Airline _____________________________________________________ Restaurant Departmental Store. Others (specify) __ 3. Could you suggest any other outlets at / purposes for which you would like to use j your XYZ card?
r i. _____________
2. __________________ 3. ______________________________ 4. ____________________ ; ________ 5. _______________________________ 6. _______________________________
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4.
Please tell us the degree to which each of the following best describes your experience, at a merchant outlet, while transacting with your XYZ card-(Please tick one box for each statement) Always Frequently Some-times Rarely Neve Does not r apply
I was able to complete my transaction The transaction was completed in a reasonable time I paid the transaction amount with no surcharge I could transact even for a very low amount 5. For what purposes do you primarily use your XYZ card ? (Please indicate a percentage break-up as indicated, in both examples. Please note, your own answer may be different.)
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Example 1 Business / Office-related Personal 40% 60%
Your Answer Business / Office-related Personal
Total Example 2 In India Abroad Total Example 3 Airlines Hotels Restaurants
100 40 % 60% 100 20% 15% 20%
Total Your Answer In India Abroad Total Your Answer Airlines Hotels Restaurants
100
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Unit 15
Buying Durables (e.g. washing machines etc.) Retail Outlets (e.g. apparel etc.) Jewellery Drawing Cash Pertol Pumps Others Total
05 05 05 05 25 100
Buying Durables (e.g. washing machines etc.) Retail Outlets (e.g. apparel etc.) Jewellery Drawing Cash Pertrol Pumps Others Total
_ -
__
_
__
100
6. Taking all your cards into account, please indicate which of these figures best describes your spending pattern per month, on an average, with your card(s)? (Please tick one box) Less than Rs. 1,000 Rs. 3,001 - Rs. 4,000 Rs. 7,501 - Rs. 10,000 Rs. 1,000-Rs. 2,000 Rs. 4,001 - Rs. 5,000 Rs.lO,001-Rs.l5,000 Rs. 2,001 - Rs. 3,000 Rs. 5,001 - Rs. 7,500 Rs. 15,000 +
If you do not own another Card, please proceed to Section 4c. 7. Of all the cards that you own, please indicate, on an average, what percentage of your monthly card-related expenditure is accounted for by your xyz card? And, on an average, what percentage of your monthly card-related expenditure do each of your other cards account for? (Please indicate a percentage break-up)
100
Card 1. XYZ card 2. ________
% of total card expenditure
100
3. ________ 4. ________ 5. ________
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SECTION 4 C - FLEXIBLE PAYMENT FACILITY 1. Have you ever had a problem with the flexible payment option/revolving credit facility ? (Please tick one box) Yes No (PLEASE PROCEED TO SECTION 4D)
If yes, please indicate the nature of the most recent problem in the space provided below.
SECTION 4 D - STATEMENTS la. On an overall basis, how satisfied are you with the statements of accounts that you receive from the bank? (Please tick one box) Ib. Very satisfied Satisfied Somewhat satisfied Neither satisfied nor dissatisfied Somewhat dissatisfied Dissatisfied Very dissatisfied
What is the single most important reason for responding the way you did in Question ^ la?
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Based on your experience, please indicate whether you agree or disagree with each of the following : (Please tick one box for each statement as applicable) Always Frequently Some-times Rarely Never Does not apply I receive my statements in time The statement is accurate The statement is easy to understand The statement is in a presentable form I get enough time to make my payments before the due date
SECTION 4 E - PAYMENTS I. How do you make payments towards the charges against your XYZ card ? (Please tick the appropriate boxes) Use cheque collection box(es) Pay / Have it paid at the Bank Bymail Others (Specify) _________________________________________________ 2a. On an overall basis, how satisfied are you with the service provided by the bank when you make your payment (Please tick one box)
Very Very Satisfied Satisfied Some Neither Somewhat Dissatisfied Dissatisfied
what Satisfied
Satisfied Dissatisfied Nor Dissatisfied
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2b.
What is the single most important reason for responding the way you did in Question 2a?
3.
Please indicate your experience with each of the following statements, keeping in mind the last one year. (Please tick one box for each statement)
Always Frequently Some-times Rarely Never Does not apply

My payments are credited in time
I am able to find collection boxes at convenient locations My payments made for two /dual cards are reflected correctly in my statements 4a. In the last one year, have you faced any problems with respect to making payments towards the charges incurred against your card? (Please tick one box) Yes 4b. No (PLEASE PROCEED TO SECTION 5)
When did you last have a problem ? In last 3 months ago Between 4-6 months ago More than 6 months
4c.
Please describe the most recent problem briefly.
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4d.
Was the problem solved to your satisfaction? Yes No SECTION 5 - ENQUIRY
la.
In the last 6 months, did you ever contact the bank for any purpose, other than for remitting your payments and enquiring about your account? (Please tick one box) No Yes (Please Proceed to the next Sections)
Ib.
How did you contact the bank? (Please tick the relevant boxes) Telephoned the bank Wrote to the bank ByEmail Visited the bank
Ic. Briefly indicate the nature of enquiry

i
f
1 d. Kindly indicate whether any of these statements reflected your experience the last time you contacted the bank. (Please tick one box for each statement) Agree Disagree Telephone I was able to get through easily The phone was picked up promptly I was not put on hold for a long time I was put on to the right person within a reasonable time
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Does not apply
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The person I spoke to was polite The person I spoke to was friendly I was able to get the information that I wanted / have my query attended to
Mail I
I received a prompt reply The letter was politely worded I was able to get the information that I wanted / have my query attended to
In Person
It took a long time before I met the right person I was made to wait for a long time The person I spoke to was polite The person I spoke to was friendly I was able to get the information that I wanted / have my query attended to My query was resolved promptly without follow ups 2a. On an overall basis, how satisfied are you with the service provided by the bank when you last made an enquiry (Please tick one box) Very satisifed Satisfied Somewhat satisfied Neither Satisfied nor Dissatisifed Somewhat satisfied Dissatisfied 318 Very Dissatisfied
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2b. What is the single most important reason for responding the way you did in Question 2a? SECTION 6 - CASH WITHDRAWAL & TELEDRAFT FACILITY 1. Have you ever used the cash withdrawal facility with your XYZ card ? (Please tick one box) Yes 2a.
1
No 4)
(Please proceed to Question
On an overall basis, how satisfied are you with the service provided by the bank, when you last made a cash withdrawal? (Please tick one box) Very Satisfied Satisfied Somewhat satisfied Neither Satisfied nor Dissatisfied Somewhat satisfied Dissatisfied
Very Dissatisfied 1*2b. What is the single most important reason for responding the way you did in Question 2a?
3a. How long did it take to complete your transaction? (Please mention the time tf taken to complete the transaction, under the relevant head, namely, Branch or j ATM) ATM Seconds Branch/Manual Seconds
3b. Ideally, how much time should it have taken? (Please mention the ideal time it should have taken to complete the transaction, under the relevant head, namely, branch or ATM)
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ATM 4.
Seconds Branch/Manual
Seconds
Have you ever used the Teledraft facility? (Please tick one) Yes No
SECTION 7 - SATISFACTION WITH OVERALL SERVICE 1 a. Taking everything into account, how satisfied are you with the overall quality of service provided by XYZ? (Please tick one box) Very satisfied
Satisfied
Somewhat satisfied Neither Satisfied nor Dissatisfied Somewhat satisfied Dissatisfied Very Dissatisfied 1 b. What is the single most important reason for responding the way you did in Question la?
1 c.
In the last 12 months, has the overall quality of service provided by XYZ Improved substantially Improved a little Remained the same Become a little worse Become much worse
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SECTION 8 - PROBLEMS WITH XYZ CARD I la. bank I I

P?
On an overall basis, how satisfied are you with the service provided by the when you last had a problem? (Please tick one box) Very satisfied Satisfied
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|
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Somewhat satisfied Neither Satisfied nor Dissatisfied Somewhat satisfied Dissatisfied Very Dissatisfied Ib. > way you did in Question 2a?
What is the single most important reason for responding the
2a.
In the last 1 year, did you have any problem with your xyz card ? Yes No (Please proceed to the next section )
2b.
When did you have a problem with respect to your XYZ card ? In last 3 months D 4-6 months ago 6- 12 months ago > 12 months ago
2c.
How many times have you had a problem with the bank ? (Please tick one box) Once Twice Thrice More than three times
2d.
What was the most recent problem that you had with xyz ?
Marketing Research
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2e.
In which of these categories, would you place your most recent problem? (Please tick the relevant boxes) Statement related Transaction related Others (please specify) Payment related Cash Withdrawal related Enquiry related staff related
2f.
How would you regard this problem? (Please tick one box) An irritant A minor problem A major problem
2g. Did you contact the bank about the problem? (Please tick one box) Yes No (Please proceed to next section)
2h. How did you contact the bank? (Please tick one box) Visited the bank Telephoned the bank 2i. Wrote to the bank Bye-mail
Did you get a response from the bank? (Please tick one box) I got an immediate response from the bank I got a response from the bank after one or more reminders I have still not got a response from the bank
2j.
Has this problem been resolved? (Please tick one box) Yes, it has been resolved The bank is still trying to solve the problem The bank was unable to solve the problem to my satisfaction
2k. If the problem has been resolved, how long did it take to resolve the problem? Ideally, how long should it have taken? ___ days
days
3a. Have any of your problems been of a repetitive nature in the last one year (Please tick one box)
Yes
No
(Please proceed to the next section)
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SECTION 10 - SUGGESTIONS 1 a. Please give ONE suggestion that will add value to your SCB card.
1 b. Please give us ONE suggestion that will help us improve the quality of service delivered byXYZ.
SECTION 11 - ABOUT YOURSELF - PROFILE & CLASSIFICATION DATA This section seeks to obtain demographic and classification data for STATISTICAL PURPOSES ONLY. Information provided will be treated as confidential. la. Age in years (Please tick one box) Less than 25 46-55 25 -35 55 +
b.
Annual Income (Personal & Household) (Please tick one box under each column) Income in Rs./Yr. Less than Rs. 60,000 Between Rs. 60,000 - 75,000 Between Rs. 75,000 - Rs. 1 Lakh ; Personal Household
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Between Rs. 1 Lakh - Rs. 1 .5 Lakh Between Rs. 1 .5 Lakh - Rs. 2 Lakhs Between Rs. 2 Lakhs - Rs. 2.5 Lakhs Between Rs. 2.5 Lakhs - Rs. 3 Lakhs Between Rs. 3 Lakhs - Rs. 5 Lakhs Rs. 5 Lakhs + c Education (Please tick one box) Graduate Post Graduate Doctorate Others
d. Occupation (Please tick one box) Business Salaried-Pvt. Sector Salaried-Public Sector/GovtOrgn.
Self-Employed Professional (e.g. Doctor, Architect, Lawyer, Engg. Consultant, Management Consultant etc.) O t h e r s ( s p e c i f y ) _ _ _ _ _ _ _ e. N u m b e r o f E a r n i n g M e m b e r s i n t h e h o u s e h o l d : _ f. Durables owned and intend to own in the next 1 year. (Please tick the relevant boxes under each column) Own currently Colour T.V. DVD/CD player Frost Free Fridge Washing Machine Vacuum Cleaner Microwave oven Dish washer Air Conditioner Cellular phone HI-FI music system
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Intend to acquire In next one year
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Own currently Intend to acquire In next one year Laser Disc Cam corders/Handycam Digital camera Personal Computer Laptops
g..
Vehicle Ownership (Please tick the relevant boxes) None 2 Wheeler 4 Wheeler
Number of 4 Wheelers Owned (Please tick one box) 1 2+ None
2.
Travel abroad (Please tick one box for each row)

Yes Everbeen In last 1 year Likely to travel in next 1 year
, *
No
Thank you for taking the time to complete this questionnaire May we include your name with your responses to the data in this survey ? (If you wish to keep your responses anonymous, we will ensure that your wishes are respected and adhered to.) Yes No
Please indicate your complete name & address for updating of our records Name (Mr/Ms) Address City Card Number Pin . ^
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15.7 SUMMARY
In this unit, we have learnt about the modern approach of survey methods through the internet era. We have also seen how services play an important role in the service industry in the questionnaire designed for the bank's credit cards. One can understand from the different sections how systematically all the information is gathered and analysed so as to improve on the aspects which they feel more attention is to given on the particular area in which they are lacking. But still, as these are not a foolproof approach, there is very much less authenticity in the internet survey still fifty percent is taken on average as correct and genuine answers given by the respondents.
15.8 KEY WORDS ________________________________________ ;

Availed: be of use Ambience: surroundings or atmosphere
Confectionary: sweets
Abuse: misuse Anonymity: of unknown name, or authorship
Disclosure: expose 15.9 SELF-ASSESSMENT QUESTIONS _____________________________

Q1. In this era of the internet, do you feel the on line survey is beneficial for the survey? Comment your answer. What is in your opinion, any five disadvantages of an online survey? An airline industry wants to do a survey on customer satisfaction. They need your help for designing the questionnaire. How will you do it?
Q2. Q3.
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CONTENTS Unit No. 1. TITLE Page No.

2.8 Key Words 2.9 Case Study 2.10 Serf-assessment Questions

Unit No. 5.6 5.7 5.8 5.9 Summary

TITLE Selecting the Appropriate Scale to Use Keywords Self-assessment Questions

Page No. 159

Unit No. 10.7 Keywords 10.8 Case Study

10.9 Self-assessment Questions

Unit No. 15.

Page No. 299

THE MARKETING ENVIRONMENT

Fundamentals of Market Research

THE NEED FOR MARKET RESEARCH

Fundamentals of Market Research

B. The Growth of Market research

Fundamentals of Market Research

Purchasing procedures and organisation

Fundamentals of Market Research

1.5 THREATS TO MARKET RESEARCH

Fundamentals of Market Research

perception of customers advertising expenditure

MARKET DECISION SUPPORT SYSTEM (MDSS)

Fundamentals of Market Research

1.8 SUMMARY _________________________________________ _ _ _ _

1.9 KEYWORDS _____________________ _ _ _ ^ _ _____________

Importance of research management

Application and Limitations

Market research can be conducted more economically and more effectively.

Application and Limitations

to assign the responsibility of undertaking market research to an outside individual or an organisation.

Why is research regarded as useful to marketing management?

Selection of market research

Application and Limitations

Selection of research agency

Criteria for hiring outside agencies Technical expertise

Advantages of research proposals

Application and Limitations

List the important Qualitative and Consumer Research.

High High Average Average

Application and Limitations

High Low Average Low Average Average

10. Company Employees

Sales and market research

Low Low Average

1. New Product Acceptance

High High High High

Corporate responsibility research

Application and Limitations

Limitation of the researcher

Definition of Sampling terms

Five steps in Sample Planning

Guidelines for identification of the target population

What do you understand by the Population Elements Frame

Simple Random Systematic Area Stratified

Otn'customer to get a prize 10

inaccessible respondents instructions, etc.

length/boringness/tocipersonal nature of 5. 6. Recording errors, coding and editir

Misinterpretation due to ambiguous wording or lack of proper instructions.

NON-RESPONSE ISSUES IN SAMPLING

Non-response can be broadly classified into two problem area

Low response rates

Refusal can be minimised by 1. 2.

3.10 THE SAMPLING PROCESS

3.10 THE SAMPLING PROCESS _____________________________ _ ^

. _ No Neither like nor dislike _____