Case 1: DuPont Has Designs On Fashion CHAPTER 1 1) Marketing research involves the identification, collection, analysis and dissemination

of information. Explain how each of these phases of marketing research applies to DuPont's problem. Identification involves defining the marketing research problem (or opportunity) and determining the information that is needed to address it. As such, DuPont has already identified an opportunityproducing designer carpets. However, they need to specify the information which is needed to determine if this opportunity is a good one. Once specified, the information needed must be obtained from relevant sources. A variety of data collection methods varying in sophistication and complexity are used. DuPont will have to determine which of the methods is best suited for the information which is needed. Once collected, the data are analyzed, interpreted, and inferences are drawn. Many different statistical techniques can be used to describe populations of interest or to infer causal relationships between variables. The type of data is to be collected will determine the choice of statistical methods. Finally, the findings, implications, and recommendations are provided in a format that allows the information to be acted upon and to be directly used as input into decision making. DuPont managers will want the information explained to them in business terms, not research terms, so that they can act on it. Researchers will have to prepare a report for management which will describe their findings, include the statistical analysis, and make recommendations. 2) Is the problem facing DuPont a case of problem identification research or problem solution research? Explain. This is a case of problem solution research since the research is being conducted to solve one specific problem: Are designer carpets a viable business in the residential segment? Specific issues DuPont can consider are concept testing, brand name evaluation, test marketing, and optimal product design. 3) How can DuPont use limited service external marketing research suppliers to assist them in their study?

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Limited-service suppliers specialize in one or a few phases of the marketing research project and offer services only in the area of their specialization. They allow large corporations like DuPont to concentrate on the management of the research project while they handle much of the actual work typically associated with marketing research. Services offered by these suppliers could be classified as field services, coding and data entry, data analysis, analytical services, and branded products. Field services are used for data collection via mail, personal or telephone interviewing. It is likely DuPont will enlist a field service firm because the task of data collection is very time consuming. It is likely that it would not be worthwhile for DuPont to collect the data themselves since there are so many other marketing and managerial responsibilities they have. Coding and data entry services are provided by several firms who have specialized in this aspect of marketing research. These firms will take the administered questionnaires, edit them, develop a coding scheme, and transcribe the data onto diskettes or magnetic tapes for input into the computer. Even large corporations, like DuPont, do not have their own internal coding and data entry services. Hence, DuPont could utilize a supplier for this service. Analytical services and branded product services may be useful to DuPont depending on the information they desire. Some marketing research projects are complex and might require knowledge of sophisticated procedures. While DuPont is likely to have some statistically trained researchers, it may be that the information desired requires the sophisticated analysis of a specialist. If so, DuPont will have to contact a specialist to assist them in this analysis. Issues related to questionnaire design and pretesting, determining the best means of collecting data, sampling plans, and other aspects of the research design apply to analytical services. CHAPTER 2 1) Identify two items which relate to each of the following factors to be considered in the environmental context of the problem. Past information and forecasts Sales of residential carpet by style Forecast of trends in carpet styles and design Resources and constraints What has DuPont budgeted for the research? What research personnel and skills are internal to DuPont? Objectives DuPont - 2

What are the long-term objectives of the DM? What are the short-term objectives of the DM? Buyer behavior What are the psychological characteristics of residential carpet buyers? How price sensitive are residential carpet consumers? Legal environment What designs and fashions have patents? What names for carpet styles are currently in use by other firms. Economic environment Is the economy expanding or in recession? What areas of the country have the highest purchasing power? Marketing and technological skills Which carpet mills have the technical ability to produce high-quality designer carpets? How can DuPont build on its brand name recognition with consumers? 2) What is the management decision problem facing DuPont? Should the Designer Collection line of carpets be introduced into the residential market? 3) What is the marketing research problem facing DuPont? Determine the consumer preferences and purchase intentions for the Designer Collection. Break down the general marketing research problem statement into component parts. a) What criteria are used by households in selecting carpets? b) How do households evaluate carpet brands in terms of the choice criteria identified in (a)? c) What styles of carpets are most preferred by households? d) What is the market share of DuPont carpets and its competitors? DuPont - 3

4)

e) What is the demographic and psychographic profile of households which purchase fashionable carpets? f) What is the size of the market segment interested in designer carpets? 5) What theoretical findings can assist in developing an approach to the problem?

Research suggests five characteristics of success for a new product: Relative advantage, compatibility with existing consumption patterns, the opportunity for buyer testing, the chance for the buyer to see the newness, and minimizing complexity. Some of these can be incorporated into the research design. For example, research should accomplish the following: 1) determine whether consumers notice a relative advantage in designer carpets? 2) discern whether designer carpets are compatible with the current attributes sought in residential carpet, 3) allow the consumer to see and touch the actual designer carpets in order to elicit their reactions and 4) uncover misunderstandings or misperceptions consumers may have about the Designer Collection. Consumer behavior theory suggests that consumers may have both private reasons for desiring to be fashionable as well as public or social reasons. Different motives are thus operating which produce different choice criteria from which the actual choice will be made. Hence, it is important to know if consumers will largely purchase designer carpets from internal or external motives. Finally, as noted in the case, price and durability (including stain resistance) are important factors consumers use to evaluate residential carpets. 6) Develop a graphical model of residential carpet purchasing.

Based on the theoretical and industry relevant issues discussed, a model can be developed. The first element recognizes the fact that consumers must first perceive the need for new carpet in order to begin the process of information search about residential carpets (Stage 2). Since DuPont is interested in selling designer residential carpets, we separate fashion-oriented search from nonfashion oriented search. Some consumers will have no interest in fashion oriented carpets so they will not represent the target market for DuPont. The consumer behavior literature suggests that consumers may have private, internal reasons for being fashion-conscious as well as social, external reasons. Thus, these two domains are distinguished so we can assess the relative impact of each on fashion-oriented purchasing. The consumer then combines these attributes of carpets to form an overall purchase intention and then acts on that intention when she buys the carpet. DuPont - 4

NEED AROUSAL FOR NEW CARPET

INFORMATION SEARCH FASHION ORIENTED NOT FASHION ORIENTED

INTERNAL MOTIVATIONEXTERNAL MOTIVATION

PRICE DURABILITY

PREFERENCE INTENTION PURCHASE 7) Develop three suitable research questions and hypotheses for the marketing research problem. A possible research question and hypothesis related to the first component of the problem is: RQ: On what dimensions do consumers evaluate residential carpets? H: Consumers evaluate carpets along price, style, and durability dimensions. A possible research question and hypothesis related to the third component of the problem is: RQ: Do consumers desire designer fashion in residential carpeting? H: The residential market is willing to accept designer carpets. A possible research question and hypothesis related to the fifth component of the problem is: RQ: On what variables can this segment be identified? H: The designer conscious segment can be identified by lifestyle and demographic variables.

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A possible research question and hypothesis related to the sixth component of the problem is: RQ: Is there a sufficiently large segment, defined as at least 25% of the market, interested in designer residential carpeting? H: A significant segment of the residential market is designer conscious.

CHAPTER 3 1) Can exploratory research be used in this case? How? Exploratory research is needed to define the problem more precisely. To assist in precisely formulating the problem for subsequent descriptive or causal research, a review of secondary data and interviews with company officials, designers, and industry experts will be useful. To identify previously unknown alternatives, focus groups are a popular technique. They allow researchers to communicate directly with a group of consumers in a question and answer format. To identify the key variables to concentrate on in further analysis, all of the procedures discussed above may be helpful here. 2) Can descriptive research be used in this case? How? Surveys can be designed to learn the following To develop a profile of the characteristics of carpet consumers, especially those interested in designer carpets. To estimate the size of the residential segment interested in designer carpets. To determine the perceptions of different styles of designer carpets for residential use. 3) Can causal research be used in this case? How?

Causal research can be used as well. Based on statistical analysis of experimental data, we can discern relationships in the data like: Does fashion affect purchase intention? DuPont - 6

Do higher levels of income lead to more fashion-oriented purchases? 4) Identify the type of non-sampling error in each of the following instances. a. Measurement The scales used do not accurately measure preferences for carpets.

b.

Cheating The interviewer intentionally fills in answers on the survey.

c. Data Analysis An inappropriate statistical technique is used leading to wrong conclusions. d. Surrogate Information e. Unwillingness a question. The researcher overlooks relevant theoretic findings applying to the study. The respondent refuses to answer

f. Questioning The interviewer suggests a desirable answer in the way she asks the question. g. Population definition The researcher fails to interview Hispanics in a survey of minorities.

5) What sources would you need to review to assist in developing an approach to the marketing research problem? In order to fully understand the problem, interviews with DuPont marketing officials can serve as a starting point. They can fully describe all aspects of the problem, including market nuances that they have come to understand with experience. Objective and theoretical sources, such as the academic research on new product introductions in the Journal of Marketing Research, Journal of Consumer Research, and the Journal of Marketing, can complement management understanding by providing a conceptual base

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for the basic processes underlying the problem situation. This will help to identify key independent and dependent variables to analyze. Finally, assessing the components of the problem in light of the objective of constructing a questionnaire can highlight information needs so that no pertinent information is overlooked. CHAPTER 4 1) What internal sources of secondary data can you identify which would be helpful? Secondary data may be gathered from a variety of sources. First and foremost, internal DuPont records should be reviewed to get an idea of the colors, styles, weights, and end-uses for which carpets are being bought. These sources may include sales records of both fibers and carpets, new orders from retailers, reports on trends from company designers and economic forecasts. Each of these can be analyzed by geographic region or retail outlet. 2) What published sources of secondary data can you identify which would be helpful?

Published external sources of data can be located in guides. For example, Business Information Sources or Data Sources for Business and Market Analysis. By looking up carpet and/or floorcovering industry in the guide, trade journals, directories, and trade associations can be located. Trade journals to consult for the carpet industry include Carpet & Rug, Floorcovering Weekly, Floorcovering News, Western Floors, Interiors, Interior Design, Designers West, Sunbelt Flooring, and the Carpet and Rug Institute Newsletter. Additional information on fiber trends may be obtained in the Carpet and Rug Institute Annual Trade Statistics. Government sources can provide some indication of general economic and industry trends, but will not be as specific as the trade information. Sources to consider include the Census of Retail Trade, Census of Population, and the Census of Manufacturers. In addition, information may be obtained from County Business Patterns, Business Statistics, Economic Indicators, and the Handbook of Cyclical Indicators. 3) Which computerized databases can be used? What is their biggest disadvantage?

Some specialized computerized data bases for the carpet industry exist, e.g., The Carpet Directory. This is a computer database of all the current styles of carpets with detailed information on carpet specifications. Bibliographic information can be obtained from ABI/Inform or full text information from VU/TEXT Information Services and statistical information can be obtained from DuPont - 8

CACI Inc. It should be noted that these sources will be relatively expensive compared to other sources. 4) Assess the possible bias in the following sources of secondary data.

a. An article interviewing designers on the new fashion trends in Floorcovering News. Methodology: Were the data collected from a representative sample of designers? Objective: Why did Floorcovering News collect the data? Is the overall purpose of the article objective? Dependability: Is the article part of one company's public relations program? b. A DuPont sales history for 1986-1989 broken out by market regions. Methodology: How were the data collected? How were sales defined? Did it include returns and rebates? Error: Were the data collected from stores audited by DuPont? Nature: Data should have been collected with respect to styles of carpets, if not, additional analysis may be needed. c. A chart of sales of residential carpet by region from the Census of Retail Trade. Currency: Census data is typically not the most current data available. Nature: Census data is often recorded in units that are not applicable to the researcher. It is unlikely that data would be recorded according to style segments, so it may be limited in applicability. d. A list of bibliographic titles related to carpet fashion. Methodology: What sources were consulted to form the database? Currency: How current are the titles included. Nature: What criterion were used in including titles? How was carpet fashion defined? Dependability: Is the source of the bibliographic titles reliable based on past experience or the reputation of the supplier? CHAPTER 5 1) Which exploratory research techniques would you recommend and why? The most common and appropriate technique would be a focus group. Focus groups allow researchers to discover unexpected findings due to the free-flowing group discussion which it DuPont - 9

engenders. It can help us to understand consumer perceptions, preferences, and behavior concerning residential carpeting; obtain impressions of the Designer Collection; and obtaining specific reactions to the Designer Collection marketing program. Depth interviews are not as likely to be useful as focus groups. Though they can be useful in product consumption experiences which are sensory in nature, such as the appeal of designer carpets, they are very expensive, require expert interviewers and are limited in external validity. Since carpeting is a product often purchased for social motives, it is unlikely that these motives would be uncovered in a focus group. Projective techniques can be used to uncover underlying motivations, attitudes and beliefs which may not be available to the respondent's conscious awareness. While any of the techniques are potentially helpful, association and sentence completion techniques are the most likely to gather the needed data within the time constraints of the study. 2) Develop a moderator's outline for a focus group to assess consumer desires in residential carpets with respect to the Designer Collection. A typical moderator's outline is listed below. Other outlines are possible, but should cover the same basic content areas. Welcome respondents Explanation of focus group procedures Current carpeting in their homes Likes Dislikes Fashion styles preferred Colors preferred Attitudes toward designer carpets Likes Dislikes Fashion styles preferred Colors preferred Concerns raised Summary of the discussion Thank you and dismiss

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3) Devise word association techniques to measure consumer associations which may affect attitudes toward designer carpets. Word association techniques should reflect the key adjectives or attributes which relate to designer carpets. Some of those are listed here. carpet fashionable beautiful quality durability stains 4) _____________ _____________ _____________ _____________ _____________ _____________

Design sentence completion techniques to uncover underlying motives. Some of the sentences which could be used are A person who owns a designer carpet is ___________________ When I think of buying carpets, I ________________________

Designer carpets are good for ____________________________ The designs which would go best in my house are ____________ My favorite type of decorative style is ___________________

CHAPTER 6 1) Match the criteria for selecting survey methods with the survey method(s) offering the best results in this case. DuPont - 11

a. Telephone interview b. CATI c. In-Home d. Mall intercept e. CAPI f. Mail surveys g. Mail panels Use of physical stimuli Quantity of data Obtaining sensitive information Speed Diversity of questions Sample control Response rate Cost Flexibility of data collection Control of field force Social desirability Potential for interviewer bias Control of data collection environment Perceived anonymity of respondent d,e c,g a,b,f,g a,b c,d,e c c,d,e f c,d f,g f,g f,g d,e f,g

2) Which survey method would you recommend to DuPont to conduct descriptive research? Why? What are the limitations of this mode? Mall intercept interviews would be most appropriate. First, mall intercepts allow for diverse questions. This provides flexibility during survey design. Also, they allow us to use designer carpet samples in the interviews so that consumers can react to the Designer Collection and the social nature of the interview is conducive to data collection. They are good in all aspects of control of the research so reliability and validity will be high. They allow for efficient data collection with very good response rates, moderate to high speed. However, mall intercept interviews require trained interviewers who encourage respondents to participate in the interview and are moderate to high in cost.

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3) Can observational methods be used to collect data? How? What are the limitations of your method? Observational methods can be used to collect data. By setting up a showroom with different carpet styles, both designer and traditional, people can be allowed to browse and review the styles. Observation of respondents in the room can then be used, with styles attracting the most attention being most desirable to consumers. This is an unstructured, disguised, and contrived form of observation. Either personal or mechanical forms, e.g., hidden cameras, may be used. The data collected, while significant, cannot be considered to have high reliability. The motivations for one's attention are not known, thus it can not be discerned if respondents would actually purchase the designer carpets or if they simply are interested in the novelty of the designs. The data would give an indication of which styles are most attractive. CHAPTER 7 1) Based on the DuPont project, give an example of each of the conditions of causality for the relationship between purchase of designer carpets and income level. Concomitant variation - Purchases of designer carpets increasing with increases in the income level. Time order of occurrence - Changes in the income level must precede changes in purchases of designer carpets. Absence of other possible causal factors - If we can ensure, by holding them constant in experimental design, no other variables affect purchase of designer carpets. 2) Is causal research necessary in this case? If so, which experimental designs would you recommend and why? If not, devise a scenario in which it would be. Because DuPont is most interested in learning if the consumer is willing to accept designer carpets, the current project is most interested in understanding consumer motives and attitudes toward the new carpets and determining potential market size. Though the primary thrust of the current project is descriptive, some causal results may prove useful in further analysis. For example, does increased emphasis on fashion increase attitudes toward DuPont carpets? Under this scenario, the best research design would be the pretest-posttest control group design. This design allows us to most precisely measure the effect of the increased emphasis on DuPont - 13

fashion to attitudes. It can be conducted in a laboratory by first randomly selecting two groups of respondents. One group will be shown the Designer Collection; the other will serve as the control group. A pretest of attitudes toward DuPont carpets can be given to both the experimental and control groups. Then the Designer Collection can be shown to the experimental group. Afterwards, a second test of attitudes toward DuPont carpets can be given to the two groups and conclusions drawn. 3) What extraneous variables are threats to the internal and external validity in the design you have selected? The pretest-posttest control group design suffers from the interactive testing effect because we must test the experimental group before showing them the Designer Collection, we may inadvertently bias their responses. In this case, the initial questionnaire should be devised so that it gives little indication of the purpose of the study. 4) Can a field experiment be used to conduct the test? Explain.

A field experiment can be used under this scenario. The best research design would be the pretest-posttest control group design. This design allows us to most precisely measure the effect of the increased emphasis on fashion to attitudes. It can be conducted by first selecting two similar markets to test the effect of the Designer Collection. One market can serve as the experimental group; the other market can serve as the control group. A pretest of attitudes toward DuPont carpets in both the experimental and control groups is first given. Then the Designer Collection is introduced into the experimental group's market. After several months, a second test measuring attitudes in the two markets can be conducted and conclusions drawn. This design would suffer from the testing effect as above, however, because it is also a field experiment, it will be low in experimental control, low in internal validity and low on ease of implementation.

CHAPTERS 8 & 9 1) What type of measurement scale are each of the following scales? a. b. c. Nominal Ordinal Interval DuPont - 14

d. c b a

Ratio A list of preferences of carpet styles rated on a 1 to A ranking of preferences for carpet fiber. 1. DuPont 2. Monsanto 3. BASF 4. Allied to (+)3 scale. attributes of a 7 scale.

c b carpet.

A list of preferences of carpet colors rated on a (-)3 A constant sum scale of importance attached to

2) What types of comparative scales can be used to gather the information needed on motivation, intentions, and preferences? Design these scales. Motivation All of the motivational information can be obtained with any of the comparative scales. An example of the paired comparison scale is given. Please compare each of the following pairs of motivations for buying carpets. Indicate which one of the two motives in a pair you believe best characterizes you. Durability Durability Safety Belonging Self-esteem It's Me Attitudes Attitudinal information is better collected with noncomparative scales. Intentions Intentions are best measured with a noncomparative scale. Preferences Safety Belonging Self-esteem It's Me

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Preferences can be measured with any of the comparative scales. An example using the constant sum scale is given. Listed below are the attributes of carpeting. Please allocate 100 points among the attributes so that your allocation reflects the relative importance you attach to each attribute. The total of all scores you assign to the attributes should equal 100.

Attribute Durability Style Color Stain-resistance Plush Backing TOTAL

Score

____ 100

3) What types of noncomparative scales can be used to gather the information needed on psychographics, motivations, attitudes, and intentions? Psychographic Information Psychographics can be obtained from an activities-interests-opinions (AIO) inventory. An AIO inventory can be constructed from a list of statements related to lifestyles. Respondents express their degree of agreement or disagreement with the statement. For example, Strongly Disagree I am a homebody I read magazines like Cosmopolitan It is important to stay up with fashion Designer clothes are better than generic clothes 1 1 1 1 2 2 2 2 3 3 3 3 Neither Agree nor Disagree 4 5 4 4 4 5 5 5 Strongly Agree 6 6 6 6 7 7 7 7

Motivation Motivation can be measured using a Likert scale (in addition to a comparative scale). For example,

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Strongly Disagree

Neither Agree nor Disagree

Strongly Agree

Stain resistance is very important in a carpet I like to be associated with the fashionable It is important to buy the best quality I am fashionable

1 1

2 2

3 3

4 4

5 5

Attitudes Attitudes can be measured with any noncomparative technique. An example using the semantic differential will be given. Please mark the scale below in relation to what the statement means to you. Carpets are ... Common |___|___|___|___|___|___|___| Fashionable Central |___|___|___|___|___|___|___| Peripheral Necessary |___|___|___|___|___|___|___| Luxurious The best style of carpeting for my home is ... one color |___|___|___|___|___|___|___| multiple colors Plain Saxony |___|___|___|___|___|___|___| Designer Saxony

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Uniform Pile Height |___|___|___|___|___|___|___| Etched Pile Height Intentions Intentions can also be measured using noncomparative scales. An example using the Stapel Scale is shown here. Please evaluate how accurately the word or phrase describes each of the carpet styles. Select a plus number for the words that you think describe the carpet accurately. The more accurately you think the word describes it, the larger the plus number you should choose. You should select a minus number for words you think do not describe it accurately. The less accurately you think the word describes it, the larger the minus number you should choose. Therefore, you can select any number from +5 for words that you think are very accurate, all the way to -5, for words that you think are very inaccurate. Form --------------------------Designer Styles --------------------------+5 +5 +4 +4 +3 +3 +2 +2 +1 +1 Likely to Purchase Want to Purchase -1 -1 -2 -2 -3 -3 -4 -4 -5 -5 4) In designing scales for the survey, which scales do you recommend?

Motives may be obtained with either comparative or noncomparative scales. Either may be appropriate given that the level of information is equivalent across both scales and depending on the type of information desired. In this case, all of the motivational information can be obtained through comparative scales, like the one illustrated in the solution of the previous question. In the case of intentions and attitudes, only noncomparative scales are applicable and any of the noncomparable scales may be used.

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For preferences, comparative scales are most appropriate since a preference inherently compares two or more brands. 5) How would you determine the reliability of the scales?

Test-retest reliability will be the most feasible since only one test needs to be constructed. Yet, because of time constraints, test-retest and alternative forms reliability will be difficult to conduct. If our survey has a significant amount of summated scales, we can use internal consistency reliability. Applying split-half reliability, we can divide the multi-items into two halves and the resulting half scores can be correlated. High correlations indicate high internal consistency. Cronbach's alpha can then be used to assess internal consistency. In many marketing research studies, cost and time limitations prohibit a detailed study of reliability, though efforts should be made at the beginning of the project to budget for these studies. 6) How would you assess the validity of the scales?

Content validity should always be conducted since it requires only a subjective analysis of the scales. It is not sufficient by itself, however, so criterion and construct validity should be assessed. Criterion validity can be assessed with concurrent validity which allows us to collect the data on the scale and the criterion variables at the same time. Shorter forms of the questionnaire may be given to some respondents and results of the long form and the short form compared for validity. Construct validity may be difficult to measure given time limitations and would require that we have information on other related variables. In many marketing research studies, cost and time limitations prohibit a detailed study of validity, though efforts should be made at the beginning of the project to budget for these studies. CHAPTER 10 1) Are each of the following questions well formulated? If not, what is the error? a. What is your favorite construction of carpet fibers? Nylon BCF Nylon Staple Polypropylene BCF Polypropylene Staple Polyester __________ __________ __________ __________ __________

The question is too technical for the average consumer. DuPont - 19

b. What style of carpeting do you have in your office? Uniform color; Conservative Style __________ Uniform color; Fashionable Style __________ Multicolor; Conservative Style __________ Multicolor; Fashionable Style __________ This question is not necessary since it applies to commercial carpeting, not residential. c. Do you intend to buy a new carpet soon? Yes __________ No __________ This question is not specific since no time frame is referenced. d. Do you believe, as most Americans do, that U.S. citizens should buy American made carpets? Yes __________ No __________ This question is biased since it induces Americans to answer Yes. e. Will you buy designer carpets given that they cost slightly more than traditional carpets? Yes __________ No __________ This question is well formulated since it makes explicit the assumptions of the question relating to cost. 2) Design a questionnaire to be used in a survey. _____________________________________________________________ Please answer ALL the questions whether or not your household currently has carpeting. Part A Q1. Does your household currently own carpeting? 1._____Yes 2._____No (IF YES GO TO QUESTION Q2; IF NO GO TO QUESTION Q7)

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Q2. Which of the following styles of carpeting do you have in your home? Please check as many as apply. a. ._____One Color; Traditional Style b. ._____Multicolor; Traditional Style c. ._____One Color; Fashion Style d. ._____Multicolor; Fashion Style Please indicate your agreement with each of the following statements (Q3 to Q6). Q3. Carpeting is an important part of my home? Strongly Disagree Neutral 1 2 3 4 5 Q4. Carpeting is a fashion item for the home. Strongly Disagree Neutral 1 2 3 4

Strongly Agree 6 7

Strongly Agree 6 7

Q5. Carpeting is a central item in my interior design for my home. Strongly Disagree Neutral Strongly Agree 1 2 3 4 5 6 7 Q6. It is more important for a carpet to last long than look pretty. Strongly Disagree Neutral Strongly Agree 1 2 3 4 5 6 7 Q7. Suppose your household were to purchase new carpeting, please rate the relative importance of the factors you would consider in selecting carpeting on a 1 to 7 scale where 1 means "Not so Important" and 7 means "Very Important". Not so Very Important Important a. Stain resistance 1 2 3 4 5 6 7 b. Long life 1 2 3 4 5 6 7 c. Fashionable 1 2 3 4 5 6 7 d. Matches my furniture 1 2 3 4 5 6 7 e. Price 1 2 3 4 5 6 7 f. Made by a well known

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g.

company Warranty

1 1

2 2

3 3

4 4

5 5

6 6

7 7

Q8. How likely is your household to buy carpeting in the next three months? Not so Likely Maybe/Maybe Not Very Likely 1 2 3 4 5 6 7 Part B (Show the respondent the samples of designer carpets). Q9. Please rate the attractiveness of the designer styles you have seen on a 1 to 7 scale where 1 means "Definitely Not My Style" and 7 means "Definitely My Style". Definitely Not My Style 1 2 1 2 1 2 1 2 Definitely My Style 6 7 6 7 6 7 6 7

a. b. c. d.

Style A Style B Style C Style D

3 3 3 3

4 4 4 4

5 5 5 5

Q9e. Of the Designer Collection carpets you have just seen, which one would you most prefer to have in your home? (Check only one) a. Style A _____________ b. Style B _____________ c. Style C _____________ d. Style D _____________ Q10. Please rate the Designer Collection carpets you have just seen on the following attributes. Use a 1 to 7 scale where 1 means Very Poor and 7 means Excellent. Very Poor 1 1 1 1 1 Excellent 5 6 5 6 5 6 5 6 5 6

a. b. c. d. e.

Stain resistance Long life Fashionable Matches my furniture Price

2 2 2 2 2

3 3 3 3 3

4 4 4 4 4

7 7 7 7 7

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f. g.

Made by a well known company Warranty

1 1

2 2

3 3

4 4

5 5

6 6

7 7

Q11. Do you think it is desirable to have a designer carpet ? Yes No Please explain? _____________________________________________________________ _____________________________________________________________ Q12. After viewing designer carpets, do you think you would purchase them for your home? Yes _________ No __________ Why or why not? ______________________________________________________________________________ ______________________________________ Part C Q13. Listed below are statements which describe different opinions about carpeting. Please indicate how strongly you agree or disagree with each statement by using the following scale: 1 = Strongly Disagree 2 = Generally Disagree 3 = Somewhat Disagree 4 = Neither Agree nor Disagree 5 = Somewhat Agree 6 = Generally Agree 7 = Strongly Agree Strongly Disagree a. Carpeting is primarily a functional item Neither Agree nor Disagree 2 3 4 5 Strongly Agree

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b. c. d.

I like to be associated with the latest styles It is important to buy the best quality I am fashionable

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

6 6 6

7 7 7

Q14. Please rank the following colors of carpets in your order of preference when buying a residential carpet. Color a. Beige b. Gold c. Blue d. Crimson e. Green f. Brown Rank Order __________ __________ __________ __________ __________ __________

Q15. In this section, there are several statements about interests and opinions. For each statement, indicate if you agree or disagree with the statement based on a 7 point scale where 1 means Strongly Disagree and 7 means Strongly Agree. Strongly Neither Strongly Disagree Agree nor Agree Disagree a. Magazines are more interesting than television b. All men should be clean shaven every day c. When I must choose between the two, I usually dress for fashion, not comfort d. I am a homebody

1 1

2 2

3 3

4 4

5 5

6 6

7 7

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e. A subcompact car can meet my needs f. My friends come to me more than I go to them for advice on clothes g. I like to but new and different things h. I often wish for the good old days i. It is important to me to feel attractive to others j. I don't like to take chances k. I get personal satisfaction from using cosmetics

1 1

2 2

3 3

4 4

5 5

6 6

7 7

1 1

2 2

3 3

4 4

5 5

6 6

7 7

Q16. Please answer the following questions as they relate to the way in which you have answered this questionnaire. a. How interested were you? Not so Very interested interested 1 2 3 4 5 6 7 How committed were you? Not so Very committed committed 1 2 3 4 5 6 7 How much effort did you use? Not much Much effort effort 1 2 3 4 5 6 7 How motivated were you? Not so motivated Very motivated 1 2 3 4 5 6 7 Did this questionnaire lead you to change your views about carpeting? A lot DuPont - 25

b.

c.

d. e.

No change 1 2

of change 6 7

Part D Q17. Your gender? 1._____Male 2._____Female Q18. Marital Status 1._____Married 2._____Never Married 3._____Divorced/Separated/Widowed Q19. Your age: 1._____18-24 2._____25-40 3._____41-60 4._____60+ Q20. Your formal education 1. Less than high school 2. High school graduate 3. Some college 4. College graduate

_____ _____ _____ _____

Q21. Which one of the following is your principal dwelling? 1. House __________ 2. Condominium __________ 3. Apartment __________ 4. Trailer __________ Q22. What is your zip code? ____________________

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Q23. What is the approximate combined annual income of your household before taxes? 1. $10,000 or less _____ 2. $10,001 to 20,000 _____ 3. $20,001 to 30,000 _____ 4. $30,001 to 40,000 _____ 5. $40,001 to 60,000 _____ 6. $60,001 and over _____ Thank you for your participation. __________________________________________________________ CHAPTER 11 Answer questions 1 through 4 assuming that a mall intercept is being conducted. 1) What is the target population for this study? Element: Homeowners, especially women (since they purchase most carpeting) Sampling Unit: Homeowners Extent: USA Time: Next 6 weeks 2) What sampling frame can you use?

For mall intercept interviews, it is difficult to identify a sampling frame more precisely than women in the mall. For telephone interviews, a city telephone book may be used. 3) What sampling technique do you recommend for this study? Why?

Quota samples are most applicable for mall intercept interviews because they allow for more precision than regular judgmental sampling and mall intercept interviews are inherently nonprobabilistic. We can create control categories along age groups. For example, Age % 22-30 20 31-45 43 45-60 18 60+ 19

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which represents the percentage of the sample size which should be obtained from each category. Respondents are approached in the mall with the goal of achieving this age distribution. In this case, we also want to bias our selection in terms of women, since they purchase most carpeting. Thus, we should purposely target women in these age groups at a 2 to 1 ratio to men. 4) What nonresponse issues must be considered and how can they be overcome?

In mall intercept interviews, a major difficulty is refusals. In order to increase the response rates, the foot-in-the-door technique can be used. By first screening respondents to see if they own a home, we may be able to increase response rates. In addition, incentives can be used such as free drinks and snacks or pens, pencils, etc. 5) If a CATI were being conducted, which method of sampling would you recommend?

Using a computer makes probability sampling more feasible. The recommended procedure is stratified sampling. Strata can be created around age and sex classifications. As in (3), we can use the population distribution to form the proportional sizes of the strata and then use simple random sampling to sample within strata. Age 22-30 31-45 45-60 60+ % 20 43 18 19

CHAPTER 12 1) Suppose DuPont conducts a preliminary market study of 30 respondents to determine the price they are willing to pay for carpets in the Designer Collection. The mean response is calculated to be $30.00. If DuPont wants to be 99% sure that the true value lies within $1 of this figure, how large a sample do they need to survey given that the population standard deviation is $5.00? This is the confidence interval method using means. The values of the parameters are D=1

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Level of Confidence: 99% Z = 2.575 s=5 n=s Z D2

2 2

52 x 2.575 = 12

= 165.7656, or 166 respondents. 2) Suppose DuPont wants to know how many households are interested in the Designer Collection. To do so, they conduct a pilot study and learn that 21 of 30 respondents expressed an interest in designer carpets. a) How large of a sample does DuPont need to draw in order to be 99% sure that this result is within 5% of the true value? b) What if they wanted it to be only within 20% of the true value at a 99% level of confidence? c) What if DuPont only required a 80% level of confidence at a 20% level of precision? a) This problem is phrased in terms of the confidence interval approach for proportions. The parameters are p = .70 Confidence level: 99% Z = 2.575 D = .05 p = .05 x .7 = .035 p(1-p)Z2 n= D2 0.7 1 - 0.7 x 2.575 2 = .035 2 = 1136.67, or 1137 respondents. b) p = .70 Confidence level: 99% Z = 2.575 D = 0.2p = .2 x .7 = .14

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n=

p(1-p)Z2 D2 0.7 1 - 0.7 x 2.575 = .14 2

= 71.04, or 72 respondents. c) p = .70 Confidence level: 80% Z = 1.285 D = .20 p = .20 x .7 = .14 p(1-p)Z2 n= D2 0.7 1 - 0.7 x 1.285 2 = .14 2 = 17.69, or 18 respondents.

CHAPTER 13 Answer the following questions assuming a mall intercept interview is being conducted. 1) What characteristics would you look for when hiring field workers for this survey?

Because mall intercept interviews are personal interviews, physical appearance and manners are important. The individuals should have a pleasant and professional appearance. They should have at least a high school education. Experienced interviewers are always desirable since they are familiar with the problems of mall intercept interviewing. Interviewers will need to be outgoing in order to encourage shoppers to participate in the interview. They should be healthy enough to be on their feet most of the day and finally have effective speaking, listening and writing skills to make the interview as successful as possible in capturing and recording the information. 2) What issues are most important in training your field workers for this survey?

Making the initial contact: Because field workers must encourage shoppers to participate in the interview, the first impression is critical. Practice in approaching people should be a part of the training including an opening line. DuPont - 30

Asking questions: Field workers must ask the questions exactly as worded in order to prevent interviewer bias. Field workers should be instructed to abide the guidelines listed in the text. 1. Be thoroughly familiar with the questionnaire. 2. Ask the questions in the order in which they appear in the questionnaire. 3. Use the exact wording for each question as given in the questionnaire. 4. Read each question slowly. 5. Repeat questions that are not understood or are misrepresented. 6. Follow instructions related to asking questions (e.g., skip patterns, probing etc.) carefully. 7. Ask every question in the questionnaire except those which should be skipped. Probing: When respondents do not or can not sufficiently answer the question, it is necessary to motivate them to respond or clarify their answers. Training should cover different techniques of probing so that field workers are comfortable with at least one technique. Recording answers: Field workers should be familiar with the survey form and how to mark responses on the form. The entire form should be reviewed in detail. Recording answers to unstructured questions should be reviewed as well. The guidelines listed in the text should be followed. 1. Record responses during the interview. 2. Use the respondent's own words. 3. Do not summarize or paraphrase the respondent's answers. 4. Include everything that pertains to the question objectives. 5. Include all probes and comments. 6. Repeat the response as it is written down. Terminating the interview: Field workers should be instructed to close each interview in a polite and gracious manner after all the information has been obtained. 3) What issues must you as the supervisor be most concerned with during the interviewing?

Because all interviews take place at a central location in a mall intercept interview, control of the field workers is made easier. Quality control and editing is needed regardless of the mode of data collection. Sampling control and control over interviewer cheating is increased since we can

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observe the interviews taking place. Thus, in this case, the primary concern is to ensure the quality control of the interviews and that the sampling requirements are being met. 4) How would you validate the field work?

After the interview is completed, a proportion of the respondents can be asked about the questions they were asked in the interview to ensure the entire interview was completed. 5) How would you evaluate the success of your field workers?

The most effective means of evaluating field workers are response rate, quality of the interview, and quality of data. Time is an important consideration since we need the results in six weeks. Response rates indicate how good field workers were at persuading shoppers to participate. The quality of the interview can be evaluated from behind the divider from which respondents are interviewed. The quality of the data can be assessed on (1) the data are recorded in a legible way, (2) all instructions including skip patterns were appropriately followed, (3) the answers to unstructured questions were recorded verbatim rather than in a summary fashion, (4) the answers to unstructured questions are meaningful and complete enough to be coded, and (5) low incidence of item nonresponse.

CHAPTER 14 1) Develop a codebook for the first eight questions in the questionnaire constructed for Question 2 of Chapter 10. Coding involves the assignment of a code to represent a specific response to a specific question along with the data record and column position that code will occupy. It is the guidebook for translating information from the questionnaire into the computer for data analysis. The general rules to follow as outlined in the text are: 1. The respondent code and the record number should appear on each record in the data. The following additional codes should be included for each respondent: project code, interviewer code, date and time codes, and validation code.

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2.

Fixed field codes are highly desirable. This implies that the number of records for each respondent should be the same and the same data should appear in the same column(s) for all respondents. If possible, standard codes should be used for missing data. For example, a code of 9 could be used for a single column variable, 99 for a double column variable and so on. Note that the missing value codes should be distinct from the codes assigned to the legitimate responses. Coding of structured questions requires assigning codes for specific responses to each question and specifying the appropriate record and column(s) in which the response codes are to appear. In questions which permit multiple responses, each possible response option should be assigned a separate column. Multipunches, where multiple responses are punched in the same column, should be avoided. The coding of unstructured or open-ended questions requires that codes be developed and assigned to the responses found in the verbatim answers on the questionnaires. The development of the codes has to wait until the completed questionnaires are received from the field. The following guidelines are suggested for coding unstructured questions and questionnaires in general. a. b. Category codes should be mutually exclusive and collectively exhaustive. Category codes should be assigned for critical issues even if no one has mentioned them. Data should be coded to retain as much level of detail as is feasible.

3.

4.

5.

6.

c.

Note how these rules were followed in the codebook below. Column Variable Number Number 1-3 1 Variable Name Respondent ID Question Number Coding Instructions (001 to 890 add leading zeros as necessary)

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4 5-6 7-8 9 - 14 15 -20 21 - 22 23 - 24 25

2 3 4 5 6 7

Record Number Project Code Interview Code Date Code Time Code Validation Code BLANK

1 (Same for all respondents) 1 (Same for all respondents) as coded on the questionnaire as coded on the questionnaire as coded on the questionnaire as coded on the questionnaire leave these columns blank 1 Yes =1 No =0 Missing =9 1 if checked, 0 if otherwise 1 if checked, 0 if otherwise 1 if checked, 0 if otherwise 1 if checked, 0 if otherwise Punch the number circled Punch the number circled Punch the number circled Punch the number circled For items 7a thru punch the number circled

Own carpeting

26 27 28 29

9 10 11 12

One color; traditional style Multicolor; traditional style One color; fashion style Multicolor; fashion style

2a 2b 2c 2d

30 31 32 33 34

10 11 12 13 14

Important part of home Fashion item for home Central item Last long Factors: stain resist

3 4 5 6 7a 7g

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35 36 37 38 39 40 41

15 16 17 18 19 20 21

Factors: long life Factors: fashionable Factors: matches furniture Factors: price Factors: reputation Factors: warranty Likely to buy carpeting

7b 7c 7d 7e 7f 7g 8 Punch the number circled

2)

Based on the codebook above, code the questionnaire for items 1 - 8.

Please answer ALL the questions whether or not your household currently has carpeting. Record # (25)

Q1. Does your household currently own carpeting? 1._____Yes 2._____No (IF YES GO TO QUESTION Q2; IF NO GO TO QUESTION Q7) Q2. Which of the following styles of carpeting do you have in your home? Please check as many as apply. 1._____One Color; Traditional Style 2._____Multicolor; Traditional Style 3._____One Color; Fashion Style 4._____Multicolor; Fashion Style Please indicate your agreement with each of the following statements? Q3. Carpeting is an important part of my home? Strongly Disagree Neutral 1 2 3 4 5

(26-29)

(30) Strongly Agree 6 7

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Q4. Carpeting is a fashion item for the home. Strongly Disagree Neutral 1 2 3 4 5

(31) Strongly Agree 6 7 (32)

Q5. Carpeting is a central item in my interior design for my home. Strongly Disagree Neutral Strongly Agree 1 2 3 4 5 6 7 Q6. It is more important for a carpet to last long than look pretty. (33) Strongly Disagree Neutral Strongly Agree 1 2 3 4 5 6 7

Q7. Suppose your household were to purchase new carpeting, please rate the relative importance of the factors you would consider in selecting carpeting on a 1 to 7 scale where 1 means "Not so Important" and 7 means "Very Important". Not so Important Very Important 1. Stain resistance 1 2 3 4 5 6 7 (34) 2. Long life 1 2 3 4 5 6 7 (35) 3. Fashionable 1 2 3 4 5 6 7 (36) 4. Matches my furniture 1 2 3 4 5 6 7 (37) 5. Price 1 2 3 4 5 6 7 (38) 6. Made by a well known company 1 2 3 4 5 6 7 (39) 7. Warranty 1 2 3 4 5 6 7 (40) Q8. How likely is your household to buy carpeting in the next three months? Not so Likely Maybe/Maybe Not Very Likely 1 2 3 4 5 6 7 (41)

3) Suppose after receiving completed questionnaires, the following results were obtained from 3 different respondents: Respondent 1 consistently used the lower end of the scale, respondent 2 consistently used the middle of the scale and respondent 3 consistently used the upper end of the scale. Correct for the response style of the respondents in order to ensure meaningful results on Q6. Assume the following means and standard deviations. Mean Standard Deviation

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Sample Respondent 1 Respondent 2 Respondent 3

5.00 2.50 3.80 5.75

1.2 1.5 1.8 0.5

Q6.

It is more important for a carpet to last long than look pretty.

#1 Strongly Disagree 1 #2 Strongly Disagree 1 #3 Strongly Disagree 1

Neutral 2x 3 4 Neutral 2 3 4x Neutral 2 3 4 5 6 5 6 5 6

Strongly Agree 7 Strongly Agree 7 Strongly Agree 7x

The most common way to correct for response bias in scale use is to standardize the data for each respondent based on his/her distribution of scores on all questions. Note that the sample statistics are not used. First subtract the respondent mean from the score on Q6 and divide by the respondent's standard deviation, i.e., Zi = (X i - X)/ Sx. Respondent 1's standardized score is (2-2.5)/1.5 = -.33 Respondent 2's standardized score is (4-3.8)/1.8 = .11 Respondent 3's standardized score is (7-5.75)/0.5 = 2.5 The standardized scores would then be used in the data analysis. Note that scores for all respondents must be standardized in order to make the analysis meaningful. CHAPTER 15

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1) Suppose you administered the survey designed in Chapter 10, and you collected data from 240 respondents (see Appendix for details). Run the following analyses on the data and draw conclusions from the results obtained. a. Run descriptive statistics and obtain frequency distributions for all variables. The descriptive statistics give us an indication of the underlying distributions of the variables and give us an initial indication to the attitudes and impressions the respondents have toward carpeting. Thus, they are useful for suggesting further more detailed analyses to be conducted. It is noted that even where there are missing values, we have enough degrees of freedom for our analyses (209 in this case). The following initial observations are noted. Q1 Q2a Q2b Q2c Q2d Q3 Q4 Q5 Q6 Q7a Q7b Q7c Q7d Q7e Q7f Q7g Q8 Q9a Q9b Q9c Q9d 209 respondents owned carpet (87%) 63% of respondents own a one color traditional carpet. 47% of respondents own a multicolor traditional carpet 42% of respondents own a one color designer carpet. 55% of respondents own a multicolor designer carpet. 44% of respondents consider carpet to be important.. (responses 1-3). 60% do not believe that carpet is a fashion item (responses 1-3). 51% do not believe that carpet is central to their home (responses 1-3). 45% do believe that durability is more important than looks (responses 5-7). Stain resistance is an important feature (41% agree) (responses 5-7). Long life is not an important feature (27% agree) (responses 5-7). Fashion distinguishes two groups - moderately fashionable (39%) (responses 4 & 5), and not fashionable (41%) (responses 1 & 2). It is important to have carpet match furniture (59%) (responses 5-7). Price distinguishes two groups - Price sensitive (39%) (responses 6-7)and moderately price sensitive (59%) (responses 3 & 4). The brand name is important (58%) (responses 5-7). Warranties distinguish two groups - warranty important (40%) (responses 5-7) and warranty not so important (47%) (responses 2 & 3). 35% are likely to buy carpet in the next three months (responses 5-7). Style A received 41% of its ratings as favorable (responses 5 - 7). Style B received 28% of its ratings as favorable (responses 5 - 7). Style C received 39% of its ratings as favorable (responses 5 - 7). Style D received 59% of its ratings as favorable (responses 5 - 7). DuPont - 38

Q9e

Suggests that Style D is the most popular style (41% preferred D) in a forced choice task. Q10a Designer Collection carpets are not rated highly on stain resistance (35% positive (responses 5-7)). Q10b Long life in Designer Collection carpets exhibits a bimodal distribution (46% rate it low (responses 1-3), while 43% rate it high (responses 5-7)). Q10c The carpets are not perceived as being too fashionable (52% rate unfavorably) (responses 5-7). Q10d Designer Collection carpets are not perceived to match furniture very well (67% rate unfavorably) (responses 1-3). Q10e Price for Designer Collection carpets is insignificant for a large segment of the sample (50%) (responses 1-3). Q10f Brand name is not so important for Designer Collection carpets (58%) (responses 1-3). Q10g Warranty for Designer Collection carpets is perceived as poor (59%) (responses 1-3). Q11 The sample is split on the desirability of designer carpets (47% do not like). Q12 43% of respondents say they will buy Designer Collection carpets, suggesting this is the target segment. Q13a Carpeting is not just a functional item (55% responses 1-3). Q13b A stylish group and a non-stylish group emerge here (50% (responses 5-7), and 40% (responses 5-7), respectively. Q13c The majority do not believe it necessary to buy the best quality (52% responses 1-3). Q13d The self-perception of being fashionable is approximately uniform across the sample (40 % responses 1-3, 45% responses 5-7). Q14a-eThe green color appears to be ranked highest with 47% of respondents ranking it as number one. Q15 The AIO items are better analyzed jointly. Q16a Very few respondents were interested in the survey (only 10%) (responses 5-7). Q16b Few respondents were committed to the survey (only 15%) (responses 5-7). Q16c Very few respondents put much effort into the survey (only 15% (responses 5-7)). Q16d Very few respondents were motivated (only 8%) (responses 5-7). Q16e Very few respondents changed their minds about carpets (only 6%) (responses 5-7). Q17 More women than men completed the survey (71% women). Q18 Most respondents were married (84%). Q19 More respondents were between the ages 25-40 than 40-60. Q20 Most respondents have a college education. Q21 Most respondents live in a house or condominium. DuPont - 39

Q22 Q23

Sampling was not uniform across ZIP codes - This may require resampling undersampled ZIP codes. Most respondents earn between $40,001 to $60,000.

b. Crosstab Q3 (Is carpeting important?), Q4 (Is carpeting fashionable?), Q5 (Is carpeting central?) and Q6 (Is carpeting durable?) with the demographic variables in Q20 to Q23. If results are poor, you may have to create dummy variables in order to obtain valid results. In all of the initial cross tab results, we note that more than 20% of the cells contain 5 or fewer entries thus making the analysis suspect. As such we must combine variables though the use of dummy variables and rerun the analysis. The recombination used is shown below. Recoding of values for variables merge two or more rows, or merge two or more columns, so that empty cells with less than five or more observations do not account for more than 20% of the cells. In this way, the degrees of freedom remain high enough to make statistical inferences using significance tests of the chi-square distribution, as well as from using Lambda values. Original New Variables Variable Q20=0; Q20=100 Q20=100 Q21=1; Q21=10 Q21=1 Q22=0; Q22=1 Q22=1 Q22=10; Q22=100 Q22=100 Q23=0; Q23=10000 Q23=1000 Q23=0 Q23=1; Q23=10 Q23=1000 Q3=1 Var=1 Q3=2; Q3=3 Var=2 Q3=4 Var=3 Q3=5; Q3=6 Var=4 Q3=7 Var=5 Q4=1 Var=1 Q4=2; Q4=3 Var=2 Q4=4 Var=3 Q4=5; Q4=6; Q4=7 Var=4

Interpretation Education High School or less Dwelling - Apartment or Trailer ZIP Regions 1 and 2 ZIP Regions 3 and 4 Income < $30K Income > $40K Carpet Important =1 Carpet Important = 2 or 3 Carpet Important = 4 Carpet Important = 5 or 6 Carpet Important = 7 Carpet Fashionable = 1 Carpet Fashionable = 2 or 3 Carpet Fashionable = 4 Carpet Fashionable = 5 to 7

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This recombination makes the cross tab interpretable since the cells with expected frequency less than 5 is < 20%. For Q3 and education (Q20), we see that the crosstab is significant (Chi-Square = 31.99; p=.001), indicating that there is a degree of association between viewing carpeting as important and educational level. An examination of the matrix reveals that for college graduates, carpets are of increasing importance in the home as compared to the other groups. Q3 and Dwelling is also highly significant (Chi-Square = 28.31; P=.004) indicating that there is a degree of association between viewing carpeting as important and type of dwelling. The matrix reveals that as we move from condominiums to apartments/trailers to a home, owning carpet becomes increasingly important. Q3 and ZIP code is significant (Chi-Square = 22.24; p=.0045), indicating that there is a degree of association between viewing carpeting as important and the region where one lives. The matrix reveals that respondents in Regions 3, 4 and 5 tended to view carpets as an important part of their home, whereas Regions 1 and 2 did not. Q3 and Income are not significant (Chi-Square = 10.76; p=.2156) indicating that the variables are approximately independent of one another. Q4 (Carpeting is a fashion item) is significant for each of the demographic variables studied. The analysis results are summarized in the table below. Crosstab Q4 - Education Q4 - Dwelling Q4 - ZIP Code Q4 - Income Chi-Square 33.01 30.76 16.47 13.93 Significance .0000 .0000 .0114 .0304

Thus, the interpretation is that college graduates view carpet as a fashion item for the home more than non-college graduates, home owners view carpet as a fashion item for the home more than apartment owners who view carpet as a fashion item for the home more than condominium owners; ZIP code regions 2, 3 and 4 view carpet as a fashion item for the home more than regions 1 and 5; and as income increases, respondents are more likely to view carpets as a fashion item for the home. Although the above analyses were assessed with the Chi-Square statistic, other measures of significance bear out the results. Notably, Kendall's Tau B, Kendall's Tau C and Pearson's R are also highly significant in the analyses.

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c. Conduct a t-test for each of the seven attributes listed in Q7 (Importance ratings of attributes) by each of the four responses to Q2 (What carpet do you own?), i.e., there will be twenty-eight t-tests run. T-tests allow us to determine if there exists a difference between groups along some specified variable. Here we will determine if respondents grouped by their ownership of styles of carpets (Q2 - i.e., owning carpet style A group, and not owning carpet style A group) differ on their ratings of carpets attributes (Q7). Of the twentyeight t-tests run, only seven are significant at the = .05 level. These are Q7a with Q2b; Q7b with Q2b; Q7d with Q2b; Q7f with Q2b; Q7g with Q2b; and Q7a with Q2c. The implication of these results is that for single color traditional styles and multi-color designer styles, no significant differences exist between owners and non-owners on ratings of the importance of carpet attributes. However, significant differences do exist between owners of the multicolor traditional style, and the single color designer carpets. Considering multicolor traditional styles, we note differences between owners and non-owners on stain resistance, long life, matching furniture and company reputation. Specifically, owners tend to rate stain resistance and length of life as less important than non-owners, but matching furniture and brand name as more important. We see this by noting the mean level for the two groups. The means for owners and non-owners on these variables are given below.

Stain Resist Long Life Matches Furniture Well-known maker Warranty

Owners 3.6 3.0 5.0 5.0 4.0

Non-owners 4.4 3.6 4.4 4.3 4.6

This suggests that owners of these carpets are more fashion/image conscious and less function conscious. For single color designer styles, one differences exists in stain resistance. Specifically, owners tend to rate stain resistance as more important than non-owners. The means are given below.

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Stain Resist

Owners 4.4

Non-owners 3.7

This suggests that owners, in contrast to multicolor traditional styles, are more concerned about having soiled carpets and possibly more status oriented. CHAPTER 17 d. Regress each of the four styles of designer carpets in Q9 (Rating for styles) on the seven attributes of Q7. Regression analysis allows us to express a dependent variable in terms of a set of independent variables which we theoretically believe to be related to the dependent variable. The resulting equation is not only useful for predictive purposes, but also allows us to infer the relative importance of independent variables on the dependent variable. In expressing ratings of Style A on the seven product attributes, our regression is highly significant (p=.000) and the R2 is .96, indicating that virtually all of the variance in the data is accounted for by the model. The equation is derived from the b coefficients. Here the equation is Style A = -.61 Warranty + .35 Price - .04 Company Name + 1.16 Stain Resistance + .39 Although our results indicate that the model fits the data well, the high degree of correlation between warranty and stain resistance (r = .91) and warranty and price (r = -.74) indicates multicollinearity is present. As such, the estimates (i.e., the partial regression coefficients) may not be reliable and thus the standard errors are likely to be high, the magnitudes as well as the signs of the partial regression coefficients may change from sample to sample and it becomes difficult to assess the relative importance of the independent variables in explaining the variation in the dependent variable. In order to deal with multicollinearity, we can rerun the analysis with only one variable. Stain resistance is selected for this purpose since it is a significant variable and has the greatest beta value of all predictors. In doing this we obtain the following result: Style A = .956 Stain Resistance +.055 This equation is also highly significant (p=.000) and has a high R2= .91. As such, it replaces the earlier equation. An examination of the residuals reveals nothing to disconfirm the analysis: all scatterplots appear random and the normal probability plot is acceptable for a one variable regression. Thus, the ratings of Style A are strongly influenced by the respondent's attitude

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toward the importance of Stain Resistance in carpeting. Consumers seeking this attribute of carpets tend to prefer style A. Similar analyses have been run for Styles B, C and D. The regression equations are given below. The high degree of correlations between the items on Q7 suggests that factor analysis of the items is needed before regression is undertaken to ensure minimal correlation amongst the independent variables. Style B = 1.17 Warranty - .03 Price - .005 Company Name - .13 Stain Resistance - .97 R2= .97 Only Warranty is a significant variable Style C = .25 Warranty + .05 Company Name -.99 Price -.18 Stain Resistance +7.46 R2= .97 Stain Resistance and Price are significant Style D = -1.05 Warranty - .02 Price + .003 Company Name + .07 Stain Resistance + .9.02 R2= .98 Only Warranty is significant Hence, style B appeals to consumers who desire a strong warranty (it has a positive beta value for Warranty), style C to those who are price sensitive and style D to those who are not concerned about the warranty (it has a negative beta value for warranty). Due to the multicollinearity present in the predictors, this analysis is only tentative until further confirmation is derived from factor analysis and other statistical techniques. e. Regress each of the styles in Q9 on all attributes in Q10 (Desirability of attributes), i.e., there will be four regressions. This regression parallels the prior regression except that the predictors relate directly to attitudes toward designer carpets rather than carpets in general. Style A = .15 Stain Resistance -.36 Long Life + .13 Fashionable +.01 Matches Furniture -.28 Price -.01 Company Reputation -.08 Warranty + 5.16 R2= .95 and significance = .000. Only Long Life and Price are significant here.

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Unlike the previous regression, the correlations of the predictors is relatively minor so that multicollinearity is not an issue. Style B = .15 Stain Resistance -.49 Long Life - .04 Fashionable - .04 Matches Furniture -.46 Price +.12 Company Reputation +.22 Warranty + 4.85 R2= .92 and significance = .000. Only Long Life, Warranty and Price are significant here. Style C = -.15 Stain Resistance +.46 Long Life + .16 Fashionable -.07 Matches Furniture +.80 Price -.05 Company Reputation -.47 Warranty + 1.15 R2= .83 and significance = .000. Only Long Life, Warranty and Price are significant here. Style D = .-.19 Stain Resistance +.45 Long Life + .03 Fashionable +.05 Matches Furniture +.42 Price -.15 Company Reputation -.20 Warranty + 3.62 R2= .88 and significance = .000. Only Long Life, Warranty and Price are significant here. An examination of the residuals in each regression reveals no patterns in the plots which would indicate that any of our assumptions pertaining to errors have been violated. The interpretation of the above results is that when consumers are evaluating designer carpets, preference for Style A is negatively influenced by attitudes toward Long Life and Price; as judged by the magnitude of the beta coefficients, Long Life is most influential in determining the rating of Style A. Style B is also negatively influenced by attitudes toward Long Life and Price, but these are countered by a positive influence of attitude toward Warranty. The negative effect of Long Life is most influential. Style C is similar to Style B, except preference increases directly with attitude toward Long Life and Price and indirectly with attitude toward Warranty; Price is most influential. Style D is similar to Style C yet Long Life is more important than Price in determining rating. Hence, three variables seem most important in determining attitudes toward the designer carpet styles, Warranty, Long Life and Price, but these three are ordered differently for different styles. f. Sum the seven attributes in Q10 to get one score for each respondent. Then use the stepwise procedure to regress this variable on Q15 (AIO items).

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This analysis will give us an indication of the characteristics of respondents which relate to an overall attitude toward designer carpets (which is considered to be the sum of the seven attributes in Q10). This regression produces the equation:

Attitude toward designer carpets = 10.84 + .65 Clean shaven .71 Dress for fashion 1.01 Buy new things .71 Wish for good-old days .85 Don't take chances The Adjusted R2= .63 and the equation is significant to p =.000. Also, it is noted that the correlation matrix indicates no multicollinearity and that the residual plots appear random, thus supporting the underlying assumptions of the regression model. Thus, the attitude toward designer carpets is largely derived from personal self perceptions toward being fashionable and from desires for the quality of the old days. CHAPTER 18 g. Conduct four two-group discriminant analyses on Q9(a-d) using the attributes in Q10 as the independent variables. For each style, A-D, in Q9, group the respondents as low or high on their rating of the style. Let a low rating be 1-4 and a high rating be 5-7. Use this new variable as the dependent variable in your discriminant analysis. Discriminant analysis allows us to express a variable as one or more linear combinations of independent variables. It creates functions which distinguish between segments of the dependent variable. In this case, we wish to express each of the 4 possible styles in Q9 as a linear combination of the attributes in Q10 in order to better understand the important attributes in the consumer's mind as they evaluate styles of carpeting. The standardized discriminant function coefficients and pooled within-groups correlations for Style A are given below. By squaring the canonical correlation of .8811, we see that the function accounts for 77% of the variance in the dependent variable. It is significant (Chi-Square = 351.29; p=.0000; Wilk's Lambda = .223) and discriminates well between the two groups ( hit rate = 95.83%). Std. Disc. DuPont - 46 Pooled Within

Variable Q10A Q10B Q10C Q10D Q10E Q10F Q10G

Fct. Coeff. -.2160 .5278 .1708 -.1067 1.3496 .0567 -1.0999

Groups Corr. -.8529 .8770 -.8376 -.7815 .8777 -.7799 .6616

The high correlation among the predictors suggests that multicollinearity may be a problem (see the pooled within group correlation matrix), thus we should place greater weight on the standardized canonical discriminate function coefficients in interpretation. In this case, the most important variables would be Q10E (Price), Q10G (Warranty), Q10B (Long Life), though all variables, when considered alone, significantly discriminate amongst the two groups. This last result is likely a byproduct of the multicollinearity in the predictors. Thus, we may tentatively conclude that Price, Warranty, and Long Life are the key discriminating variables for Style A between respondents who liked the style and those who did not. Similar results are obtained for styles B and D. The pertinent statistics for this conclusion are given below. Style B Chi-Square = 272; Wilk's Lambda = .313; p = .0000 Variance in Dependent variable explained = 69% Hit Rate = 91.25% Std. Disc. Fct. Coeff. .4001 -1.0814 .0515 .0878 -1.4808 .0213 2.4353 Pooled Within Groups Corr. .7495 -.7119 .7491 .7307 -.6611 .7114 -.4834

Variable Q10A Q10B Q10C Q10D Q10E Q10F Q10G Style D

Chi-Square = 339.31; Wilk's Lambda = .235; p = .0000 Variance in Dependent variable explained = 76% Hit Rate = 94.17%

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Variable Q10A Q10B Q10C Q10D Q10E Q10F Q10G

Std. Disc. Fct. Coeff. -.1691 .5247 .1821 -.0290 1.2279 -.0949 -.9636

Pooled Within Groups Corr. -.8700 .9008 -.8542 -.7915 .8966 -.8169 .6908

Style C, however, exhibits a different pattern of discriminating variables. Its statistics are: Chi-Square = 244.87; Wilk's Lambda = .352; p = .0000 Variance in Dependent variable explained = 64% Hit Rate = 86.25% Std. Disc. Fct. Coeff. -.0297 .4257 .3024 .0025 -.1854 -.1333 .9055 Pooled Within Groups Corr. -.8167 .8967 -.7805 -.7430 .9003 -.7937 .9867

Variable Q10A Q10B Q10C Q10D Q10E Q10F Q10G

Hence, for Style C, Warranty (Q10G), Long Life (Q10B), and Fashionable (Q10C) are the key discriminating variables. The notable difference between style C and the others styles is that fashion discriminates those who like and don't like style C, whereas it is not as important in discriminating respondents on the other styles. Overall, we may conclude that while all variables discriminate between those who like and don't like the styles, Warranty and Long Life are key variables in discrimination in all styles, Price is important on styles A, B and D and Fashion is important on style C. These variables should be assessed when forming marketing strategy. CHAPTERS 19-20 h. Run a factor analysis of Q15 and crosstab the factor scores with the responses in Q2. Cluster the results of the factor analysis into three clusters in order to segment the respondents on psychographic measures. Run crosstabs on the cluster centers to determine if any relationship exists between the clusters and the current ownership of carpets, Q2. DuPont - 48

Factor analysis reduces the number of independent variables to a set of underlying factors by grouping variables which are strongly correlated with one another. The results of factor analysis allow us to run other multivariate techniques using the factor scores instead of the original variables. In this case, an interesting result has arisen: all of the variables load onto one factor which accounts for 95% of the variance in the data in Q15. The scree plot, which is an indicator of how many factors to extract, plots the eigen values for the factors. Here, only the one factor is shown, indicating that one factor is extracted. By examining the factor matrix, which need not be rotated since only one factor was extracted, we can make inferences as to the nature of this factor. Note that all but three of the variables load positively on the factor. The three which load negatively, Homebody, Good Ole Days, and Don't Take Chances, suggest a more conservative person, whereas all other variables suggest a more fashion conscious individual. Thus, the factor distinguishes between AIO items which measure a fashion conscious versus a traditional outlook. We can cluster the factor scores from this one factor into three clusters of respondents, each cluster containing respondents with similar characteristics. The final cluster centers indicate that cluster 1, consisting of 107 respondents, scores high on the factor, i.e., they are fashion conscious individuals. Cluster 2 scores low on the factor, so they represent traditional or conservative individuals. This cluster includes 58 respondents. Cluster 3, consisting of 75 respondents, falls in between the other two, suggesting that this group is somewhat concerned with fashion, but not overly concerned with it. The ANOVA results indicate that the three clusters are significantly different from one another (F = 920.28; p = .000). Final Cluster Centers Cluster 1 2 3

Value 0.986 -1.28 - 0.42

Thus, the AIO items in our survey distinguish traditional from fashionable consumers and three different segments can be identified based on this factor. We can determine if these clusters have any impact on the ownership of fashion-oriented carpets by crosstabbing the cluster centers with Q2 (types of carpet owned). The cross tab results, however, are disappointing in that they show no relationship between ownership of fashion-oriented carpets and the clusters. The Chi-Square values for the four analyses are given below. The only difference which arises is on multicolor,

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traditional styles in which Cluster 1 tends to prefer them (58.5% of respondents in cluster 1 own them) and Cluster 2 tends to avoid them (only 34.5% or respondents in Cluster 2 own them). Crosstab Q2a-Clusters Q2b-Clusters Q2c-Clusters Q2d-Clusters Chi-Square 2.24 8.13 4.25 1.18 df Significance 2 2 2 2

.33 .02 .12 .55

CHAPTER 22 1) Prepare a report for management which explains your research results and provides an answer for their management decision problem. The report should basically contain all of the components given in the guidelines for report writing in Chapter 22 of Marketing Research: An Applied Orientation. However, as explained in Chapter 22, one of the best ways to explain research results to management in a simple yet comprehensive way that can easily illustrate the problem solution is through tables and graphs. Therefore, one way to present the solution to management would be by preparing and presenting the following tables and graphs for the report: a) A pie chart of preferred style. b) A bar chart showing the responses to Q8 (Likely to Buy a designer carpet). c) A table of the cluster membership derived from cluster analysis, including labels interpreting the clusters.

a)

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PREFERRED DESIGNER CARPET STYLE 4.60% Style A 41.26% 32.47% Style B Style C Style D 21.68%

b)
LIKELIHOOD OF PURCHASE SEGMENT SIZE 50 40 % 30 20 10 0 LOW MID HIGH Rating of Likelihood of Purchase 40.4 21.7

37.9

c) CLUSTER MEMBERSHIP ON A.I.O ITEMS ClusterLabelSize 1Fashion Conscious107 2Conservative58 3Fashion Oriented75
Source: DuPont Designer Carpet Study, 1996

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CHAPTER 23 1) Due to the sluggish nature of the American carpet market, DuPont wants to explore the possibilities of moving into international markets. Before they design an international marketing research study, however, they want to determine which end-use segment (commercial carpets, contract residential carpets, or residential carpets) would offer the most potential, and just concentrate their marketing research efforts on this segment for their initial foray into the international arena. How should they do this? DuPont should attempt to identify the segment with the most potential by examining relevant literature and secondary data sources. Through various U.S. and foreign government publications they should determine the demand for each type of carpet, and the projected future demand. The strength of possible competitors in the foreign market should be assessed both domestically and abroad. Entry barriers, availability, and cost of raw materials, government regulations, and labor supply should be considered if DuPont intends to manufacture the carpet in-country. If DuPont does not intend to manufacture the carpet itself it might also research companies already established in the country for consideration as candidates for partners in a joint venture. Additionally, DuPont should also consider the costs of exporting to the country of interest. Finally, DuPont must assess consumer opinions and needs for each type of carpet. It may be that certain cultures do not commonly carpet their homes and/or places of business. And, if this is the case, DuPont must determine whether it is possible to create awareness and demand for these uses of carpet, not only in terms of cultural norms but also with regard to the availability of media appropriate for putting such a plan into action.

CHAPTER 24 1) DuPont has hired a marketing research firm to conduct focus group sessions. What are the ethical considerations of DuPont managers sitting in on these focus group meetings? The researcher and client should protect the anonymity of respondents, not mislead or deceive them, and conduct research in a way that will not embarrass or harm the respondents. If client managers are sitting in on focus groups, participants may feel that their anonymity is being violated. Further if the client managers are introduced as "colleagues helping with the project," this could be considered as deceptive. It has been shown that

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many participants accurately conclude the real identity of individuals introduced in this manner. 2) For what purposes would it be ethical for DuPont to use the names, addresses, and survey data related to survey respondents? It is unethical to conduct a survey to sell products to the respondents, if the names and addresses were used to solicit sales, this would be unethical. Additionally, the privacy of the respondents should be honored. It is unethical to reveal information about individuals when anonymity or confidentiality has been promised or implied. The respondents should not be contacted at inappropriate times, such as a telephone survey call late at night. Selling a mailing list of those surveyed without their consent brings up many unethical issues. Hence, to use the personal information of the individuals surveyed for reasons other then marketing research would be unethical. 3) One of the stakeholders in the marketing research process is the researcher. Describe two forms of unethical behavior that DuPont might use in dealings with marketing research firms. Any two of the following is correct. Improper Solicitation The client should be seriously considering the research firm for employment for the proposed project if they are soliciting a proposal. Using the researcher as leverage on other researchers for lower prices or other purposes is unethical. It would be unethical for the client to give the proposal or ideas from the proposal from one researcher not employed to the researcher conducting the actual research. Proprietary Techniques The researcher has the right to expect that any proprietary techniques that are original to the researcher will not be revealed to other researchers or firms. This also means the client should refrain from using the techniques for their own future use without the permission of the researcher. Misrepresentation of Findings

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The client should not twist or distort the research finding given to them by the researcher. In addition to being unethical in itself, this could also have a negative impact of the image and reputation of the researcher. Respondents may also be responsible for unethical behavior if they purposely give false or inaccurate information to the researcher.

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