MARKETING RESEARCH MODEL ANSWERS

(November 2013)
SECTION A

(60 MARKS)

Question 1
a) Quota sampling
[5]
This is a non-probability sampling where the required number of units with
particular characteristics is specified. This is based on the fact that if known
characteristics of the population are reproduced in the same proportion in the
sample it is representative of that population e.g. age, sex can be used to
select quotas. Researcher selects respondents that comply with the quota
laid down
b) Judgmental/purposive sampling
[5]
Selection of sample considered appropriate for the study e.g. certain
companies in a given sector. Designed to reflect the relative importance of
the company in the sector
-Questionnaires and other instruments can be tested using this method
c) Snowball sampling

[5]

Sampling where initial respondents are selected at random and subsequent

respondents are then selected by referrals or information from the earlier
respondents. Useful in markets where there is low incidence of the population
like Business to Business or drug addicts

Question 2

a) Marketing research: investigation into how to reach or serve customers best.

[1.5]
It deals with marketing mix elements (4Ps). Done to make sure that
organization is offering the best mix to target audience
[3]

Market research: investigation into aspects of the market i.e. size, trends,
competition, legislation, barriers to entry.
[1]
It helps in the audit stage of marketing planning. Its a general view of the
market and is used for decision making. Its concerned with comparative
analysis of markets
[3]

b) Definition of telephone survey

[1.5]
Factors:
-Changing environment: greater acceptance of telephone as a means of
communication especially the youth
[2]
-Legislation and de-regulation: Market for telephone services has opened up
and costs of calls have fallen
[2]
-Mobile phones and mobile internet mean that research can use a range of
methods to reach and stimulate respondents
[2]

Question 3
(Non-sampling errors)
Non-sampling research errors (Where there are points award full marks for
mentioning one)
a) Sampling frame error: occurs due to the fact that the sampling frame is different
from entire population
[3]
Reduced by combining lists to reinforce the frame

[2]

b) Non-response error due to refusal or non availability of respondents

[3]
Reduced by using incentives or trained and experienced interviewers and a welldesigned questionnaire
[2]

c) Data error: respondents give wrong information intentionally or unintentionally

[3]
Reduced by careful analysis of inconsistencies in responses by using a welldesigned questionnaire and skilled interviewers
[2]
d) Interviewer errors: mistake of asking questions or recording answers
[3]
Reduced by Careful training and back checking to ensure that the interview was
carried out; that the respondent matched the required profile; that all questions
were asked; and that the code of conduct of the MRS was adhered to
[2 marks for mentioning one of these]
e) Data analysis error caused by key stroke or software problems
[3]
Reduced by checking for inconsistencies and manually profiling hard data against
that held in the computer
[2]

Question 4 (15 marks) (Data protection principles)

a) Data protection principles (Any five of the following for 2 marks each)
[10]
Data must be:
-Fairly and lawfully processed
-Processed for limited purposes
-Adequate, relevant and not excessive
-Accurate
-Not kept longer than necessary
-Processed in accordance with the individuals rights
-Secure
-Not transferred to countries that do not have adequate data protection laws
b) Rights of data subjects
marks]

[5

- Right to be informed of all the information held about them by the organization
[1]
-Right to prevent the processing of their data for the purpose of direct marketing
[1]
-Right to compensation if they can show that they have been caused damage by
any contravention of the Act
[2]
-Right to have any inaccurate data about them removed or corrected
[1]

SECTION B

(40 MARKS)

Question 5 (20 marks) (Research Proposal)

Research Proposal
a) Title

[1]

b) Background:

[3]

-What has been done; What has not; What is needed; Why and indicate areas of
contribution
Checklist to background
-Justification of the study
-Why research is worthy the effort
-Expressed in the form of the problem which needs solving or something which one
finds exciting and has aroused interest
-Evidence of interest by researcher
4

-Demonstrate knowledge of literature

-Clarify where proposal fits into the debate in the literature
-Show link between work already bone and proposal
-Show point of departure from popular beliefs in literature
- Research question(s) and objective(s) follow from the background, and should be
clear
d) Research methodology

[10]

Details how question(s) and objective(s) are going to be achieved, what will be
done; how and why. There is need to justify method to be used and be connected to
hypothesis
-Justify research population and why this population or sample
-Way to carry out the research either survey, interviews, or observation etc
-Research design
-Data collection, how, duration, analysis
-Ethical issues
e) Limitations

[2]

f) Time scale

[1]

g) Resources needed

[2]

h) References

[1]

Question 6 (20 marks)

a) Kinds of databases (8 marks)

-There are two namely flat file systems and relational
Flat file
-Lumps all the data into a single table database e.g. telephone directory
where names, addresses, telephone numbers, fax numbers are stored in the
same file
[3 ]
5

Relational allows greater flexibility and storage efficiency by splitting the

data up into a number of tables which can be linked and integrated e. g. one
file can contain names of customers another sales by outlet and yet another
customer payment history
[5]

b) Barriers to effective use of databases (12 marks for any four, 3

marks each)

Lack of motivation by key players

High costs of the system

Limitation of software and hardware capabilities

Resistance to change with lack of confidence in the perceived benefits

Problems with internal communication and complex interpretation of

issues

Lack of business experience among IT specialists

Question 7 (20 marks)

Definition of observation:
Either: Non-verbal means of obtaining primary data
Or: approach where information on the behavior of people, objects or organization
is collected without any questions being asked of the participant
[2]

Merits (12 marks for any four of the following i.e.3 marks for each)
-Not dependent on respondents memory. Records exactly what has happened not
what the respondent believes has happen
-Reduced research bias since research is without behavior
-Mechanical recording can reduce recording error
-Does not rely on verbal skills of the respondent
6

-Measures what has happened

-Counters refusal rates
-Used to monitor behavior preceding action
-Does not interfere with day-to-day life of respondent but their activity

Demerits (6 marks; 3 marks each)

-Does not measure reason for certain behaviour
-Can not measure likelihood of repeat
-Researches public behavior not private behaviour

Question 8 (20 Marks)

Stages of International Marketing Research
Stage 1
Monitoring International markets
-monitoring entails passive information gathering without active measures from an
identified market
[2]
Stage 2
Initiated if there are positive indications from stage 1 results
-Entails accurate assessment of market opportunity:
i) Existing demand: current purchases of the product. This is the demand that
attracts management to this market during monitoring stage. This alone may justify
entry.
[2]
ii) Latent demand: untapped demand because of defective 4Ps by existing suppliers
especially price or channels not enough or product has no features that the market
value
[2]
7

iii) Incipient demand: demand that depends on trends. Used by manufacturing firms
of goods that require wealth levels in an economy to be above a certain minimum
level before the volume of demand becomes sufficiently great for the market to
become profitable
[2]
Stage 3
Research: Idea is promising to warrant committing a budget.
Planning : vital in any research. Elements include
-Definition of scope: which geographical or political markets of interest, market
segments and end objective
[2]
-Definition of information needs: balance between information use and cost
[2]
-Evaluate available sources for required information
[2]
-Undertake desk research and evaluate its findings. It should be done before
primary data collection. [2]
-Undertake field research e.g. customer, advertising, product, packaging,
distribution research. [2]
-Knowledge of the culture: This is important so as to appeal to culture of the
intended market
[2]