Research Methodology

RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT Definition of Marketing Research: Systematic design, collection, record, analysis and reporting of data for aid in making business decisions.
F Literally Research means to search again. It connotes scientific investigation wherein the researcher takes another, more careful look at the data to discover all that can be known about the subject of study F If information generated or data collected and analyzed are to be accurate, researcher must have an objective, without engaging in a biased attempt to prove preconceived ideas. F Objective is to facilitate the managerial decision making process for all aspect of business: Finance, Marketing, Personal and so on.
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Research Methodology

RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT contd

LEVEL 1 ( Strategic )

M a rke ti g S tra te g y n

Segmentation Targeting Positioning

I fo rm a ti n fo r m a rke ti g d e ci o n s n o n si

LEVEL 2 ( Tactical )

M a rke ti g P l n n a

Product Price Promotion Place

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Research Methodology

RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT contd

Who constitutes the buyers ?do some people buy and some don t? Why

M a rke t & S a l s R e se a rch e

From which outlet are the product bought ? market share of the respective What are the

What drives a consumer to buy a brand ?

Product Research
Which alternative packaging is most preferred What features / attributes of product is important

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Research Methodology

RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT contd

To what extent is sales affected by price? What are the responses to various price levels ?

Pri R e se a rch ce

What pricing policy should be adopted for new product introduction

Which is the most effective advertising mix ? How successful are discounts coupons , lucky d

Promotion(Advertising) Research
What product What advertising theme , appeal , slogan to use ? features should be emphasized

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Research Methodology

RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT contd

What type of stores display the product and in what What channels should be used ?

Pl ce ( D i b u ti n ) R e se a rch a stri o
Where and what volumes should the product be stocked ?

Research Methodology

RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT contd Four stages of decision making process:
I. Identifying problems or Opportunities: Organization must

determine where it wants to go and how it will get there. E.g.: Develop package for a new brand Increase the amount of repeat purchasing Allocate advertising budget geographically. I. Diagnosing and assessing problems or opportunities: Manager need to gain insights about the underlying factors causing the situation II. Selecting and implementing a course of action: Research is often conducted to obtain specific information that will aid in evaluating the alternatives and in selecting the best course of action
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Research Methodology

RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT contd

IV.Evaluating the course of action: Objective measurement and the appraisal of extent to which a given activity, project or program has achieved its objective

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Research Methodology

RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT contd Determining when Research should be conducted:
Time Constraint Availability of Data Nature of decision Benefit v / s cost

YES Does the strategic YES t time available Is the information already onmust be made ? before managerial YES decision hand,the decision of considerable decision the or tactical importance ? Is inadequate for making the value of ? research information exceed the cost of c

NO

NO

NO

NO

Research should not be conducted

Conduct Research

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YES
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Research Methodology

STEPS INVOLVED IN THE RESEARCH PROCESS

Decision making: Process of resolving a problem or choosing among alternative opportunities . Decision making situation ranges from complete certainty to absolute ambiguity
C o m p l te C e rta i ty e n Uncertainty A b so l te A m b i u i u g ty

D e ci o n m a ke r si h a s a l th e l i fo rm a ti n a n d n o e xa ct n a tu re o f b u si e ss p ro b l m . n e R e se a rch m a y not be needed at a l. l

I fo rm a ti n n o a b o u t a l rn a ti s te ve i i co m p l te s n e R e se a rch h a s to be done.

B u si e ss n p ro b l m i e s u n cl a r e R e se a rch m a y b e a w a ste o f ti e , h o w e ve r m ca n b e a ttra cti ve fo r d e ci o n si m a ke rs

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Research Methodology

STEPS INVOLVED IN THE RESEARCH PROCESS contd

Problem discovery and definition
Problem discovery

Selection of exploratory research technique

Secondary (historical data)

Pilot study

Experience survey

Case study

Problem definition (statement of research objective)

Planning the research design

Selection of basic research method

Survey

Experiment

Secondary data study

Observation

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Research Methodology

STEPS INVOLVED IN THE RESEARCH PROCESS contd

Sampling
Selection of sample design

Probability sampling

Nonprobability sampling

Data gathering

Collection of data (fieldwork)

Editing and coding data

Data processing and analysis Data

processing and analysis

Drawing conclusion and preparing report

Interpretation of findings

Report

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Research Methodology

Problem discovery Problem definition (statement of research objectiv

The formulation of a problem is often more essential than its solution - Albert Einstein

Introduce new product Design a test market to assess the likely acceptance of the n

General statement

Adopt pricing strategy Assess new product for a the potential levels of demand associated with various p

Develop package for a new product Evaluate effectiveness of alternate package design

Allocate advertising budget geographically level of market penetration in the respect Determine current

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Specifically identified
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Research Methodology

RESEARCH DESIGN
Research Design

Q u a l ta ti i ve R e se a rch

Focus of research not on numbers but on words and observations

Determines the extent

Q u a n ti ti ta ve R e se a rch

of some phenomena in form of numbers

Exploratory Research
Conducted during initial stage of research process Clarifies the thought about research problem Eg. What are the10 most

Descriptive Research
Describes characteristics a population Determines the answers to

Causal Research
Identifies cause-andeffect relationship among variables. Eg: Influence of price, packaging, advertising on sales. Exploratory and Descriptive research normally precede Causal research Eg. Will buyer purchase TV if a variable/feature

important variable consumers use to decide while buying TV? ( ABSOLUTE AMBIGUITY )

who, what, when, where and how kind of questions Helps in segment and target the market. Eg. What are the ratings given to variables? Who gave the ratings? Where (which zone/state) rating was given? ( UNCERTAINTY )

incorporated in it? ( COMPLETE CERTAINTY )

* Degree of uncertainty of a research problem determines the research methodology suresh

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Research Methodology

Selection of exploratory research technique

Secondary (historical data)

Data gathered and recorded by someone else prior to the current needs of the researcher. Secondary data are usually historical. q Objective for Secondary data: F Fact Finding: Eg. Sales, Market share of a product. Population, age, gender (Census data) F Model Building: Specifying relationship between two or more variables. research Eg. Used to estimate growth, inflation for financial

Used to calculate market potential (population X per capita income)

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Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Secondary (historical data)

contd

q Classification of Secondary data: F Internal and Proprietary data: E.g.. Purchase/sales volume of products for a Shopping Mall F Books and Periodicals: E.g.. Journal of Marketing research, Business week, Financial Analyst journal F Government Sources: E.g.. Census Data (No. of members in family, gender, age etc). Economic data series like GDP, balance of Payment F Regional Publications: E.g.. Publications generated by different banks Metro political planning agencies of the city provides about population, economies, transportation F
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Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Secondary (historical data)

contd

q Classification of Secondary data: F Media Sources: E.g.. TV channel viewership data F Market Share data: Retail sales volume data based on product movement. F Consumer attitude and public opinion research: Syndicated service for report findings from attitude research and opinion poll

F Stock Market sources: E.g.. Reports provided by BSE, NSE, moneycontrol.com,

F suresh 16

Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Pilot study

Pilot study generates primary data usually for qualitative analysis. It serve as a guide for the larger study. Include focus group interviews, projective techniques and depth interviews q Focus Group Interview (FGD):

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Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Pilot study

contd
F Moderator (interviewer) and 6-10 participants. F Participants meet at a central location. F Moderator introduces the topic and encourages the group members to discuss. F Often used for concept and refinement . (E.g.. New name or attribute for a product) F Videoconferenced focus group allows managers to send messages to moderator F Quickly analyzed and less expensive, however small discussion group will rarely be representative sample. F
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q Focus Group Interview (FGD):

Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Pilot study

contd

q Projective Techniques: Questioning that enable to project belief and feeling of a person onto a third party, which otherwise is not expressed. Objective is to discover an individuals attitude, motivation.
q

Word Association: Frequently used in testing potential brand names.

q q

Sentence Completion: Respondents are required to complete a number of partial statements. E.g.:
I.

19 High salary will help me purchasing suresh ___________________

Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Pilot study
q

contd
Third-Person Techniques: F Respondents are asked why a third person (e.g. a neighbor) does what he does or thinks what he thinks about a brand, company or a concept. (Providing a mask is a basic idea) Thematic Apperception Test (TAT): Consist of pictures or cartoon in which the Research topic is centre of attention

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Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Pilot study

contd
I.

Respondent to tell what's happening in the picture and what the people might do next

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Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Pilot study

contd
I. I

Or respondent to construct a story looking at series of pictures with continuity

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Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Pilot study

contd
F Interview is extensive, unstructured and undisguised (not direct questions). F Most of the questions are open ended F Respondent is free to respond the way he/she likes F Interpretation of such data is highly subjective F F

q Depth interview:

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Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Experience survey

F Issues and ideas are discussed with those having experience in subject on which Research is being done. F Interview is done with small no. of knowledgeable people. F The purpose is to help formulate the problem and clarify the concept. F Exploratory information from an Experience survey is not expected to be conclusive.

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Research Methodology

S e l cti n o f e xp l ra to ry re se a rch te ch n i u e e o o q

Case study

F Purpose is to obtain information from one or a few situation that are similar to researchers problem situation. F F

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Research Methodology

S e l cti n o f d e scri ti / e o p ve ca u sa l re se a rch

Survey

Defined as a method of gathering primary data based on communication with representative sample. Most surveys are descriptive but they can be also be designed to provide causal explanation
Ways to carry out a Survey: F Door-to-Door Personal Interview: Personal interview conducted at the respondents home or the place of business F Mall Intercept Personal Interview: Personal interview conducted in shopping malls F Telephone Interviews: Contacting respondents by telephone to gather responses to survey questions. F Mail Survey: A self-administered questionnaire sent through the mail to respondent.
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Research Methodology

S e l cti n o f d e scri ti / e o p ve ca u sa l re se a rch

S u rve y
Speed of data collection

Door to Door PI

Mall Intercept PI Telephone Interview

Mail Survey

Interview Survey

Moderate

Fast

Very Fast

Slow

Instantaneous

Respondent cooperation Excellent Moderate to Low Good Moderate Varies

Questionnaire length Long Moderate to long Moderate Varies Moderate

Possibility of respondent misunderstanding Low Low Average High High

Degree of interviewer influence on ans. High High Moderate

None

None

Cost Highest Moderate to high Low to moderate

Lowest

Low

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Research Methodology

S e l cti n o f d e scri ti / e o p ve ca u sa l re se a rch

S u rve y C l ssi ca ti n o f S u rve y o n Te m p o ra l B a si a fi o s

C ro ss S e cti n a lS tu d i s o e D a ta co l e cte d a t a l si g l p o i t i ti e . n e n n m V a ri u s se g m e n ts o f o p o p u l ti n a re sa m p l d . a o e R e l ti n sh i a m o n g a o p va ri b l s a re i ve sti a te d a e n g b y cro ss ta b u l ti n a o ( Profiling ). E g . A d H o c stu d i s, e U sa g e

Lo n g i d i a lS tu d i s tu n e R e sp o n d e n ts a re q u e sti n e d a t d i re n t o ffe m o m e n ts i ti e n m S i i a r g ro u p o f p e o p l m l e a re exp e cte d to b e i n e a ch sa m p l . e D o n e u su a l y th ro u g h l a panel E g . C o n su m e r p a n e l stu d y ,

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Research Methodology

S e l cti n o f d e scri ti / e o p ve ca u sa l re se a rch

O b se rva ti n o Business Researchers can observe people, objects, events or other phenomena by assigning the task to human observer or by using machines designed for specific observation tasks.

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Research Methodology

S e l cti n o f d e scri ti / e o p ve ca u sa l re se a rch

O b se rva ti n o

H u m a n b e h a vi r o r a cti n o o

S e l cti n o f p ro d u cts fro m a sh e l e o f

Ve rb a lb e h a vi r o

C o m m u n i ti n o f a n e m p l ye e w i su b o rd i a te s a n d b ca o o th n

E xp re ssi b e h a vi r ve o

Fa ci lexp re ssi n , to n e o f vo i w h i e se e i g d e m o o f a co n su m a o ce l n

Te m p o ra lp a tte rn s

Ti e ta ke n to co m p l te a ta sk m e

Ph ysi lp a tte rn s ca

Fo o tfa l co rd e d i a sh o p p i g m a l o n w e e ke n d lre n n l

Ve rb a la n d p e cto ra lre co rd

N u m b e r o f i l stra ti n s i a te xt b o o k lu o n suresh 30

Research Methodology

S e l cti n o f d e scri ti / e o p ve ca u sa l re se a rch

O b se rva ti n o

q Mechanical Observation: F Television Monitoring: Eg. PeopleMeter used to obtain ratings of television program. F Monitoring website traffic: Recording no. of people visiting a particular website F Measuring physiological reactions: Eg:
Eye tracking monitor: Measures unconscious eye movement, used in recording the pattern of a hoarding or print ad being noticed Voice Pitch analysis: Measures emotional reaction as reflected in physiological changes in persons voice
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Research Methodology

S e l cti n o f sa m p l d e si n e o e g

Sampling: The process of using a small number of items or part of a large population to make conclusion about the whole population.
S a m p ln g i

Pro b a b i i l ty

N o n Pro b a b i i l ty

Te ch n i u e i w h i e ve ry q n ch m e m b e r o f th e p o p u l ti n a o h a s a kn o w n , n o n ze ro p ro b a b i i o f se l cti n . l ty e o Typ e s: S i p l ra n d o m m e S yste m a ti c S tra ti e d fi C l ste r u

Te ch n i u e i w h i u n i q n ch ts o f sa m p l a re se l cte d o n e e th e b a si o f p e rso n a l s j d g m e n t o r co n ve n i n ce . u e Typ e s: Q u o ta J d g m e n t/ p u rp o si u ve C o n ve n i n ce e S n o w b a l l

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Research Methodology

S e l cti n o f sa m p l d e si n e o e g

Pro b a b i i l ty

Simple random: Each possible sample has an equal probability of being included in the sample. Each member of sample is assigned a number and sample unit is selected by random method. Eg. Random digit dialing for Telephone interviews or random selection of respondents from census data. Systematic : Elements are selected from population at a uniform interval that is measured in time or order. Eg. Mall Intercept PI conducted every Wednesday in Bigbazaaror 2 houses skipped after every door to door interview.

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Research Methodology

S e l cti n o f sa m p l d e si n e o e g

Pro b a b i i l ty

Stratified : Population divided into relatively homogeneous group, called strata. From each stratum, a specified no. of elements corresponding to the proportion of that stratum in the population is selected by simple random sampling. Eg. Out of an entire population of 50,000 of an area, if people from age group 20-24 yrs are 10,000, then after a sample of, say 200 is achieved by simple random sampling, the number people between that age group will be more or less 40. Cluster : Population is divided into groups or cluster. Eg. Survey to be conducted in North and West.
* In Stratified , each group has small variation within itself but wide variation between groups . There is considerable variation within each group but the groups are similar to each other . suresh

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Research Methodology

S e l cti n o f sa m p l d e si n e o e g

N o n Pro b a b i i l ty

Quota : Various subgroup in a population are represented by sample to the exact extent that the researcher desires . Eg. Out of an entire population of 50,000 of an area, if people from age group 20-24 yrs are 10,000, then a Quota of 40 people should be achieved in that age group if the sample size is selected as 200. Purpose is to ensure various subgroups in a population are represented by the sample. Quota sampling have a tendency to include people who are easily found within the Quota (unlike Stratified in which strata are formed and people are selected by simple random sampling)
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Research Methodology

S e l cti n o f sa m p l d e si n e o e g

N o n Pro b a b i i l ty

Judgment / purposive : Experienced researcher selects the sample based on his/her judgment about some characteristics required of the sample member. Eg. For a telecom company study, the proportion of people to be studied for a sample of 1000 are: 1.600 (60%) those who presently use companys sim card 2.250 (25%) those who have never used companys sim card 3.150 (15%) those who switched after using companys sim card The above proportion of sample may be less than fully representative of population 1.
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Research Methodology

S e l cti n o f sa m p l d e si n e o e g

N o n Pro b a b i i l ty

Convenience : Refers to sampling by obtaining people who are most conveniently available. Eg. News reporters present reviews of a movie from people coming out of theatre, who are presumed to reflect public opinion Snowball : Sampling procedure in which initial respondents are selected by probability method and additional respondents are obtained from information provided by the initial respondents.

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Research Methodology

Typ e s o f q u e sti n o

Open - ended and Closed - ended : What do u like about Surf detergent: 1.Cleaning power 2.Fragrance 3.Dissolve easily 4.Any other (please specify)______________ Dichotomous Questions : Two alternatives given to choose Are you a user of Surf detergent? 1.Yes 2.No

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Research Methodology

Typ e s o f q u e sti n o

Multiple Choice : Usually an extension of Dichotomous What do u like about Surf detergent: 1.Cleaning power 2.Fragrance 3.Dissolve easily 4.Any other (please specify)______________ Scaling questions ( rating / ranking ): Rating: Rate the following detergent brands on a scale of 1-10
Brand A Brand B Brand C 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 8 8
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9 9 9

10 10 10
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Research Methodology

Types of question

Scaling questions ( rating / ranking ): Ranking: Rank the following brand on their ability to clean clothes: (1=best, 2=next best etc.)
Brand A Brand B Brand C ____ ____ ____

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Research Methodology

Scales used in questionnaire

Scales

Nominal Number are only used as labels Eg. 1.Bank Account No. 2.No. of element in each category Permissible operation: 1. Mode 2. No. of element in each category Test of Significance: Chi Square

Ordinal Scale Variable have meaningful orders Eg. 1.Ranking of products Permissible operation: 1. Mode 2. Median 3. Percentile Test of Significance: 1. Non parametric statistical test 2. Sign test

Interval Variables used to compute statistical measures (avg, std deviation) Eg. 1.Rating given to attributes of

Ratio All arithmetic operations are possible on a ratios scale. Eg. 1.Age 2. Income

3. Weight products Permissible operation: Permissible operation: 1. Mode 1. Mode 2. Median 2. Median 3. Mean 3. Mean 4. Std deviation 4. Std deviation Test of Significance: Test of Significance: All 1. z-test 2. t-test 3. F-test suresh 41

Research Methodology

CASE

Background

Rockledge Corporation shows its presence in various sectors: Steel, Telecom, Banking, and Automobile. The company has decided to diversify its portfolio by getting in Consumer durable sector, beginning with manufacturing of TV.
Need

Entering in TV industry

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Research Methodology

C A SE

Research Objective

Identifying preference and potential demand among various age and income group. Finding media sources used before buying TV Determining appropriate price levels for sizes of TV intended to launch: 21inches and 29 inches. Analyzing competition on various parameters Identifying aspiration for buying TV

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Research Methodology

C A SE

Research Design

Descriptive

Sources of Data

Primary

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Research Methodology

C A SE

Data Collection

Research approach: Survey Research Research instrument: Questionnaire, to collect primary data Sampling plan: Sampling unit (Target Population): I Male and Female . I Above 27 years I . I. Household income not lesser than 2,00,000 I I Rs. I . Owning TV at home V V .Location: Mumbai, Delhi, Kolkata, Chennai and Bangalore
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Research Methodology

C A SE

Data Collection

contd

Sampling plan: Sample size : 3500 (700 in each Metro)

Age Group:

28 to 39 yrs - 1250

40 to 51 yrs - 1250 58 yrs and above - 1000

Income Group:

2,00,000 R s to 4,00,000 Rs- 750

4,10,000 Rs to 6,00,000 Rs - 1250 6,10,000 and above - 1500

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Research Methodology

C A SE

Data Collection

contd
Sampling plan: 2,00,000 4,00,000
28 39 yrs 40 51 yrs 250 250 R s Rs 4,10,000 Rs 6,00,000 Rs 500 500 250
1250

6,10,000 and above 500 500 500

1500

Sub Total
1250 1250 1000 3500

58 yrs and above 250 Sub Total

750

Sampling procedure: Non Probability (Judgment/purposive) Contact Method: Door to door personal interview

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Research Methodology

C A SE

Data Analysis

Identifying potential demand among various age group.

Definitely buy 28 39 yrs 388 40 51 yrs 150 58 yrs and above Sub Total
170 708

Probably buy
225 300 120 645

May or may not buy

275 288 190 753

Probably Definitely Sub Total not buy not buy

163 425 400 988 200 88 120 408 1250 1250 1000 3500

Using Chi Square concept, at 5% significance level, there is a significant difference among proportion and thus age group and purchase intention are dependent.
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Research Methodology

C A SE

D a ta A n a l s ysi

I e n ti n g p o te n ti ld e m a n d a m o n g va ri u s i co m e g ro u p . d fyi a o n
Definitely buy
2,00,000 4,00,000 Rs 4,10,000 6,00,000 Rs 6,10,000 5,00,000 Rs 143 350 195 688

Probably buy
248 225 225 698

May or may not buy

165 338 495 998

Probably Definitely Sub Total not buy not buy

143 175 360 678 53 163 225 440 750 1250 1500 3500

Sub Total

Using Chi Square concept, at 5% significance level, there is a significant difference among proportion and thus income group and purchase intention are dependent.
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Research Methodology

C A SE

D a ta A n a l s ysi

Fi d i g m e d i so u rce s u se d b e fo re b u yi g T V n n a n

Hoardings TV Advertisement Friends Relatives Colleagues Manufacturer / dealer brochure Newspaper Internet Dealer sales staff

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Research Methodology

C A SE

D a ta A n a l s ysi

D e te rm i i g a p p ro p ri te p ri l ve l fo r 2 1 i ch e s n n a ce e s n

TV is cheap but of acceptable quality

TV is expensive but will possibly buy

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Research Methodology

C A SE

D a ta A n a l s ysi

A n a l n g co m p e ti o n o n va ri u s p a ra m e te rs yzi ti o
Sony
Price Brand Image Latest Model Features Latest Technology Offers/Schemes

LG

Samsung

Videocon

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Research Methodology

C A SE

D a ta A n a l s ysi

Analyzing competition on various parameters.contd

R a ti g g i n to B ra n d s fo r a ttri u te La te st M o d e l : n ve b
Sony
Respondent 1 Respondent 2 Respondent 3 Respondent 4 Respondent 5 3 3 5 2 5 . . . . . . . 4 2

LG
4 2 5 2 2 . . . . . . . 3 3

Samsung
2 3 4 4 3 . . . . . . . 2 1

Videocon
2 1 2 5 3 . . . . . . . 3 1

. . . . . . . Respondent 3499 Respondent 3500

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Research Methodology

C A SE

D a ta A n a l s ysi

A n a l n g co m p e ti o n o n va ri u s p a ra m e te rs. co n td yzi ti o
Testing data by Anova at 5% significance level, there is a significant difference in rating given to brands for Latest Model. No significant difference shown on Further analysis of Sony and Samsung on mean rating given for latest Technology at 5% significance, using 2 sample hypothesis concept

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