Research methods

Seminar work







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Content
1. Introduction ..................................................................................................................................... 3
2. Theoretical background Literature review ................................................................................... 3
2.1 Marketing research theory ............................................................................................................ 3
2.2 Description of research article ...................................................................................................... 5
3. Objectives / Research questions ..................................................................................................... 7
4. Conceptualizing: Concepts, indicators and variables ...................................................................... 7
5. Hypotheses about relationships among variables ....................................................................... 8
6. Research design ............................................................................................................................... 8
7. Research type .................................................................................................................................. 9
8. Instrument for data collection ........................................................................................................ 9
9. Sampling procedure ...................................................................................................................... 10
10. Ethical issues .............................................................................................................................. 10
11. Processing data.......................................................................................................................... 11
12. The structure of research report (chapters) ............................................................................. 12
13. Problems and constraints in research ....................................................................................... 12
14. Research time frame ................................................................................................................. 13
References ............................................................................................................................................. 14


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1. I ntroduction

Tatra banka, a.s. is interested in obtaining information regarding interest on bank account
product named "An account for young with a smartphone".

This banking product is intended for people aged 15 to 26 years, i.e. youth, students.

Tatra banka, a.s. plans to provide this product with the assistance of telephone services
provider, with which it has concluded a partnership agreement - with O2 (Telefnica
Slovakia, s.r.o.).

Whereas, on the banking market there are many products as the accounts for this segment,
Tatra banka has an incentive to increase interest in these accounts, by offering a mobile phone
with Internet access and Internet tariff for favorable sum. In this form the client should, inter
alia, continuous overview of the state and using of their funds through SmartBanking.

Required information bank splitted into two groups:
- Finding interest in the product,
- Determination of preferences in choosing a financial product
- Relation between interest and gender
2. Theoretical background Literature review

2.1 Marketing research theory

As the topic of this seminar work have been chosen the marketing research, especially from
the reason that it is the very first step of most economical processes.

Philip Kotler (2007) define the marketing research as

function that links the consumer, customer, and public to the marketer through information-
information used to identify and define marketing opportunities and problems; to generate,
refine, and evaluate marketing actions; to monitor marketing performance; and to improve
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understanding of the marketing process. Marketing research specifies the information required
to address these issues, designs the methods for collecting information, manages and
implements the data collection process, analyzes, and communicates the findings and their
implications..

Being short, it is a systematic design, collection, analysis, and reporting of data and findings
relevant to a specific marketing situation facing the company, allows management to make
the changes necessary for better results through adopting a proactive approach. Therefore, if a
company wants to know what type of products or services would be profitable it should make
a market research. Furthermore, a comprehensive research will enable the company to know
about the product imperfections (if there are) and to know if it has been able to satisfy
customers needs. It attempts to provide accurate information that reflects a true state of
affairs. Due to market research the company can formulate a viable marketing plan and
estimate the success of its existing plan. There are two main sources of marketing research
information:

Primary marketing research is collected for the first time if the company has enough money to
finance it, but in most case it is the second more accurate one. It is original and collected for a
specific purpose, or to solve a specific problem. Primary research delivers more specific
results than secondary research, more expensive and time consuming. These are an especially
important consideration when the company is launching a new product or service. There are
many ways to conduct primary research. By customizing tried-and-true approaches, focus
groups, surveys, field tests, interviews or observation, you can gain information about your
target market. Primary research is generally based on sampling techniques and requires
statistical methodologies. The sample size could be as small as 1 percent of the market and
thus the information and results gathered are highly accurate.

Secondary marketing research or desk research is generally used when a company
considering, extending a business into new markets or adding new services or product lines,
because it already exist in one form or another. This information is based on studies
previously performed by government agencies, chambers of commerce, trade associations and
other organizations. There are number of sources available to the marketers, for example:
Business libraries, Public records, Trade associations, Websites, National/international
governments, Informal contacts and Professional institutes and organizations. That is why
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secondary research is relatively cheap, and can be conducted quite quickly. However, its main
disadvantage is that the information gathered may be old and obsolete, therefore results of
analysis may be inaccurate. Further, it is not necessary that the earlier studies were conducted
with the same objectives as required in the current situation.

2.2 Description of research article

- Title and publication data
Title: Religious influences on consumers' high-involvement purchasing decisions
Author: Haytham Siala
Publisher: Emerald Group Publishing Limited
DOI : 10.1108/JSM-02-2012-0046 (Permanent URL)

- Brief description
This aim of this paper is to investigate the impact that religious factors have on a consumers
perception of brand loyalty in the context of the services industry. Specifically, the study
focuses on the attitudinal/affective form of brand loyalty. An empirical investigation was
conducted to test whether the religiosity and religious centrism of Muslim consumers can
instil attitudinal brand loyalty towards an insurer selling a religiously-conforming high-
involvement indemnity service.

- Objectives
The main objective of this study is to determine consumers likelihood of developing brand
loyalty towards a religiously-compliant high-involvement indemnity service that is sold
online.
H1a. Customers who are devout Muslims will display high attitudinal loyalty
towards a religiously-exclusive indemnity service.

H1b. Customers with high religio-centric traits will display high attitudinal
loyalty towards a Muslim insurance company selling a religiously-exclusive
indemnity service.
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H2. Customers who display high attitudinal loyalty towards a religiously-
exclusive indemnity service will be price tolerant (inelastic) when cheaper
generic car insurance is available from a competitor.

H3. Customers who display high attitudinal loyalty towards a company selling
religiously exclusive indemnity services will spread good word-of-mouth
communication about the company to fellow customers.

- Data source and sampling
The sample consists of 208 participants. The online survey was conducted in September 2009.
Participants were invited using various communication methods such as e-mailing online
religious community groups, and placing fliers on notice boards of Muslim prayer rooms and
various mosques in the UK.

- Methodology
An online survey was conducted with 208 Muslim consumers, and structural equation
modeling (SEM) analysis was used to test the relationships between the exogenous and
endogenous variables.

The the invitation e-mail informed the participants that for each completed survey, a 1
donation would go to the Muslim charity of their choice. The survey was executed in separate
time frames to counter the demand artifact effect.

Participants were first asked to fill in a short questionnaire that consists of questions
representing the exogenous constructs: religiosity and religio-centrism, the demographic data,
and the contact details of each participant (e-mail). Three weeks later, each registered
respondent was informed via e-mail about the new Halal insurance website
(salaaminsurance.com) and subsequently, a month later an e-mail containing a URL link to
the second and final part of the survey questionnaire was sent to the registered respondents.

- Analysis
The three hypotheses H1, H2, and H3 were tested by examining the path coefficients that
were calculated by the structural equation modelling (SEM) analysis.
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The coefficient that measures the relationship between the constructs in H1a is 0.584 with a t-
value of 21.82 (significant at p , 0.01); strongly supporting H1. Similarly, H1b is supported
since the measured coefficient is 0.648 with a t-value of 23.97 (significant at p , 0.01).

H2 is supported since the measured coefficient is 0.878 with a t-value of 26.36 (significant at
p , 0.01). Finally H3, the measured coefficient in this case is 0.898 with a t-value of 29.32
(significant at p , 0.01), which means that H3 is also supported.

- Main findings.
The findings of this research study indicate that devout members of the Muslim religion
display high attitudinal loyalty towards a religiously exclusive indemnity service, and the
insurer selling the indemnity service in question. In addition, one can also infer that since
attitudinal brand loyalty includes measures for purchasing intentions, this culturally induced
loyalty could make religious consumers switch from an existing brand to a religiously-
conforming brand.

Briefly, the results show that there is a positive relationship between the exogenous religiosity
and religious centrism constructs, and the endogenous attitudinal brand loyalty, price
tolerance and word-of-mouth constructs.
3. Objectives / Research questions

Sample of customers was reflected in questionnaires. Each of them have to express an own
opinion with choosing an option in questionnaire. The purpose is to find out if there is a
difference between men and women in interest about this product. Whether there is a
difference in the interest in product according to gender.
4. Conceptualizing: Concepts, indicators and variables

The main purpose of the research is to find out interest in new bank product. The interest will
be measured by question in questionnaire where respondents have an option to choose from
scale of 4 options: Very interested, interested, less interested, not interested. According to
answer for this question, people that marks one of the first three options represent a group of
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customers interested in product (potential customers for product) and people that mark the
fourth option will represent a group of clients who are not interested in.
5. Hypotheses about relationships among variables

Is there a difference in the interest in product according to gender?

H
0
: There is no difference in interest in product between genders
H
1
: There is a difference interest in product between genders
6. Research design

The questioning takes place exclusively via the Internet. It is carried out on base of
completion of a questionnaire placed either on site the overarching institutions (Tatra banka
a.s., Telefnica Slovakia, s.r.o.) or disseminated through social networks. Another method of
submitting options for completing the questionnaire is the form of sending informational
emails to current customers according internal databases. These are the least expensive
methods of addressing respondents and also the processing of the results is simplified,
because all the answers are in electronic form. Main advantage of these methods is high and
still growing trend of interaction this age group with a mentioned medium.
The whole research project will be launched as the possibility of taking part in the
competition for prizes organized by both companies. Subscribe to this competition will be
subject to filling out of the questionnaire. This step should secure adequate return completed
questionnaires to achieve the relevance of the evaluation results.

Spreading awareness about the possibility of engaging in competition (by completing
questionnaires) will be ensured by an advertising campaign presented by both partners. The
advertising campaign will be conducted through leaflets available at branches of bank and of
mobile operator and through Internet advertisements in the form of "pop-up" windows.
In a research when the sampling is used, the data will not be accurate. That is why the final
verdict can be pronounced only with some probability. Therefore have been chosen method of
the data collection from all who meet the definition of investigated segment and we are
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confident that the chosen form of distribution of questionnaires allows sufficiently reliable
overview of researched problems.
7. Research type

The classification of the types of a study on the basis of these perspectives is not mutually
exclusive. That is, a research study classified from the viewpoint of application can also be
classified from the perspectives of objectives and enquiry mode employed.

In this case, a research project can be classified as an applied research (from the perspective
of application), in a way, that gathered information can be used in other ways such as for
formulation of bank policy, as for example, whether the bank should be still interested in
creating these types of bank products and so on.

From the perspective of the enquiry mode it is classified as qualitative research.

But the main classification of research is from the perspective of objectives (correlational -
the main emphasis in a correlational study is to discover or establish the existence of a
relationship/association/interdependence between two or more aspects of a situation). We are
trying to find out whether there is a difference in the interest in product according to gender or
academic education).
8. I nstrument for data collection

Research will collect primary data directly from a potential customer segment - young people
aged 15-26 years with Internet access. As a tool for data mining, the company management
chose a questionnaire. Assembling the questionnaire were authorized personnel of the
marketing department of the company. The questionnaire was drawn equally to all forms of
distribution.

In the introduction, the customer is asked to complete a questionnaire and there is provided a
short guide for completing and handling. Introduction also informs about the benefits that
customer will obtain by replying to the questionnaire.
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Introductory issues have to find out identifying information such as age, gender, education
level, career and residence of the respondent.

The following questions have to subsequently task to reveal different preferences of
consumers in this age structure in the choice and use of banking products.

In conclusion, there is a question about whether the respondent is interested in the use of that
product or not interested. This question has fundamental importance in determining the
relation between gender and interest in the product.

Distribution of the questionnaire: website of Tatra banka, a.s.; Telefnica Slovakia,
s.r.o.; Facebook; e-mail
Number of questions: 8
9. Sampling procedure

Population: young people aged 15-26 years
Sampling frame present and potential clients with access to the
Internet
Sampling: non-probability sampling Accidental sampling
Sample size: min. 15 000 respondents
10. Ethical issues

Issues of anonymity and confidentiality are key considerations in ethical research practice
and, in common with informed consent, are concepts that underpin professional research
guidelines for social scientists. Participants will be informed about how confidentiality and
anonymity will be managed and what the implications of taking part will be in relation to
these issues before consenting to participate.
Confidentiality and anonymity are distinct but related concepts; confidentiality refers to the
need to keep identifiable information about individuals private and anonymity is one of the
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ways in which data are kept confidential. In case of this research accidental disclosures of
information is minimized because of respondents just fill a questionnaire without writing any
personal information such as name, phone number or exact address.
The only potential risk that can occur in connection with accidental disclosures is connected
with putting a valid e-mail address in the case that participant wants to take a part in
competition which is part of advertising campaign.
11. Processing data

To find out the answer for main question of research Is there a difference in the interest in
product according to gender? will be used Fisher's exact test. According the calculation will
be then confirmed the hypothesis H0: There is no difference in interest in product between
genders (or rejected and consequently confirmed the hypothesis H1: There is difference in
interest in product between genders).

Fisher's exact test is a statistical significance test used in the analysis of contingency tables.
Although in practice it is employed when sample sizes are small, it is valid for all sample
sizes.

A sample of respondents will be divided into male and female on the one hand, and those that
are and are not interested in offered product. The data might look like this:

Men Women Row Total
Interested in A B A+b
Non-interested in C D C+D
Column Total A+C B+D A+b+c+d = (n)

We have to move rows and columns in the table, so that in the cell "A" would be the smallest
value. Then from the value in cell "A" we gradually deduct number 1, until there will be zero.
But column and row sums must be preserved. Thus, the remaining value is adjusted so that
the totals will be the same then before.
Subsequently, for thus obtained tables we calculate the probability with formula:
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( ) ( ) ( ) ( )
! ! ! ! !
! ! ! !
n d c b a
d b c a d c b a
c a
n
c
d c
a
b a
p
+ + + +
=
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Rejecting of the H0 hypothesis:
if P < o one-tailed test
P < o/2 two-tailed test
12. The structure of research report (chapters)

a) Introduction
b) Theoretical Framework
c) Description of main objectives
d) Description of collecting data
e) Data analysis and interpretation
f) Summary, conclusion and recommendations
13. Problems and constraints in research

The biggest problem could be that we will not receive enough answers to make a right and
true interpretations which will match to population's opinions and which will ensure obtaining
a true picture of interest in new product in target market.

Because of it is impossible to ask each potential client from selected group, we will evaluate
data only from selected sample. Process of selecting a sample from the total population has
advantages and disadvantages. The advantages are that it saves time as well as financial and
human resources. However, the disadvantage is that you do not find out the information about
the populations characteristics of interest to you but only estimate or predict them. Hence, the
possibility of an error in your estimation exists.
Although accidental sampling as a method of sampling is common among market research
and newspaper reporters, it some has disadvantages as: as the resulting sample is not a
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probability one, the findings cannot be generalised to the total sampling population and the
most accessible individuals might have characteristics that are unique to them and hence
might not be truly representative of the total sampling population. We can make our sample
more representative of our study population by selecting it from various locations. In addition,
as we are not guided by any obvious characteristics, some people contacted may not have the
required information.
14. Research time frame

Research will be conducted by the marketing department of Tatra banka, a.s. In this
department will be set up a group of people who will be responsible for operations such as
compiling a questionnaire, advertising campaign to promote the return of responses and also
the final evaluation.
More detailed claims are showed by using a Gantt chart, which clearly establishes the
requirements for the time required for the entire project. Total duration is estimated from
8.4.2013 to 14.6.2013, i.e. 67 days.

Picture 1 Time schedule course of research project
The cost of the advertising campaign:
Internet advertising: 3 500
Printing leaflets: 2 800
Other expenses:
Prizes in the contest: 6 100
Total costs: 12 400
8.4.2013 18.4.2013 28.4.2013 8.5.2013 18.5.2013 28.5.2013 7.6.2013
The Creating a project proposal
The preparation of questionnaires
The advertising campaign
The collection of primary data
The Analysis of the data
A final report
The presentation of results
The total duration
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References

KOTLER, P. KELLER, K. L.: Marketing management. Praha : Grada, 2007. 788 s. ISBN 978-80-247-
1359-5
KUMAR, R. 2005. Research methodology, 2nd ed.. - London : Sage Publications LTD, 2005

PETRKOV, D. A KOL. 2011. Vybran problmy hospodrskej politiky. Koice: ELFA. 240 p. ISBN 978-
80-8086-192-6

Haytham Siala, (2013) "Religious influences on consumers' high-involvement purchasing decisions", Journal of
Services Marketing, Vol. 27 Iss: 7, Available on the internet:
<http://www.emeraldinsight.com/journals.htm?issn=0887-
6045&volume=27&issue=7&articleid=17100600&show=html>