MK0013-Marketing Research

Q1 Explain Cross sectional Research Design, its advantages and

disadvantages.
The cross-sectional study is the most popular and widely used Descriptive
Research technique. It involves the collection of information from any given
sample of population elements only once. It is useful because it provides a
quick snapshot of what's going on with the variables of interest for our
research problem. You can understand this research method with the help of
following example:
A study between height and age of people which shows negative
relationship. It gives following conclusive answers:
Young people are comparatively taller.
As people become old, they lose their height
Tall people have more risk to their life in comparison to short people. This
example shows that cross-sectional study does not give a full explanation of
the case. This method is unable to support their findings as well.
There are two types of Cross-sectional design.
Single cross-sectional design: In this, only one sample of
respondents and their information is utilised and that is used only once
in a study.
Multiple cross-sectional designs: In this, information is captured
with the help of two or more samples of respondents. Each samples
information is used only for once. Though information is collected at
different times from different samples of the study.
Advantages of cross-sectional design
Cross-sectional method is user friendly, easy to understand and simple
to use.
Minimum resources are required to work out on this study
This design is the best design in determining prevalence system
(prevalence system involves the number of cases or occurrences that
exist at a specific period of time in a defined population).
Disadvantages of cross-sectional design

 This study is unable to find out the cause and effect relationship
among various factors.
This study does not provide clear set of explanations for their findings.
Q2.What are the various fundamental properties of scales of
measurement? Explain with an example each.
The various fundamental properties of scales of measurement are as follows

Assignment property: The assignment property is also known as

description property. It refers to the researchers usage of unique
descriptors, or labels to identify each object within a set. Example: A
researcher asks a question: Are you planning to buy a new music
system in the next four months? This can assign two descriptors to
record the response from consumers; namely yes or no. Similarly
another question relating to more preferred brand by consumers with
regards to music system can have various brand names mentioned as
descriptors.
Order property: The second measurement scale property which is
order property helps in explaining the relative magnitude between the
descriptors. The relative magnitude refers to three basic properties of
any object mathematically. Example: If they are two objects A and B,
there are three basic mathematical possibilities: (1) A is greater than B;
(2) A is lesser than B; and (3) A is equal to B. Order property helps in
identifying these properties.
Distance property: The distance property refers to a measurement
scale where exact difference between each of the descriptors is
expressed.Example: If you bought 6 cans of a drink and your friend
bought 4 cans of the same drink, you bought two more cans than your
friend. Just likethe raw responses represent some type of natural
numerical answer, the distance property is also restricted to such
situations.
Origin property: The origin property sets a unique starting point in a
set of scale points. Origin property refers to a numbering system where
zero is the displayed or starting point in the set of possible responses.
As a scale design includes more scaling properties, it increases the
amount of raw data that can be collected by the researcher.
Furthermore, it is interesting to note here that each scaling property
builds on the previous one.

Q3. Describe the steps involved in Hypothesis Testing.

Steps Involved in Hypothesis Testing

1. Setting-up of hypothesis: The first step is to set up the decision
making process. This involves specifying the null hypothesis (H0) and the
alternative hypothesis (H).
2. Selecting a significance level: A criterion used for rejecting the null
hypothesis is the significance level. The significance level is used in
hypothesis testing as follows:First, the difference between the null
hypothesis and the results of the experiment is determined. Then, assuming
the null hypothesis is true; the probability is computed and then probability
is compared to the significance level. If the probability is less than or equal to
the significance level, the null hypothesis is rejected and the outcome is said
to be statistically significant.
3. Deciding test statistic to be used: The third step is to decide an
appropriate probability distribution test to be used for testing the
hypotheses. For example: Z -test, t-Test, F-test and Chi-square test.
4. Calculating the probability value from the data: The calculations are made
assuming that the null hypothesis is true.
5. Decision-making: The fifth step is to take a decision to accept or reject
null hypothesis H0 which is made on the basis of information collected from
the sample data i.e., the probability value computed in Step 4 is compared
with the significance level chosen in Step 2. The null hypothesis is rejected If
the probability is less than or equal to the significance level, if the probability
is greater than the significance level, the null hypothesis is not rejected.
But there is always a chance of making errors. There are two possible types
of errors in the test of hypothesis.
Type I Error: Rejection of null hypothesis when it is true.
Type II Error: Acceptance of null hypothesis when it is false.
When we accept Ho, which is false there is an error of Type II. It is sufficient
to say that probability of error () is much higher in accepting a false
hypothesis than in rejecting a true hypothesis.

Q4. Explain Pearson Product Moment Correlation with the help of an

example.

Pearson Product Moment Correlation: Pearson Correlation Coefficient is

named after Karl Pearson who developed this correlational method to do
agricultural research. It is used to measure correlation.The symbol for the
correlation coefficient is lower case r, and it is described as the sum of the
product of the Z-scores for the two variables divided by the number of
scores.
r = x y z z
N
If the formulas for the Z-scores are substituted into this formula, we get the
following formula for the Pearson Product Moment Correlation
Coefficient,which will be utilised as a definitional formula.

r=

xy
xy
(X )(Y )
N
The numerator of this formula says that we sum up the products of the
deviations of a subject's X score from the mean of the Xs and the deviation
of the subject's Y score from the mean of the Ys. This summation of the
product of the deviation scores is divided by the number of subjects' times
the standard deviation of the X variable times the standard deviation of the Y
variable.
Q5.Explain Business to Business Market Research and types of
market research undertaken in B2B research.
Business-to-business (B2B) marketing is the commercial transactions
between businesses. The term is used to explain the business that sells the
products or services to other business. Market research may be B2B-type or
consumer research (i.e. B2C). B2B research involves the investigation of any
market where the targets to be examined are another business entity or
employees of a business entity.B2B market research is a more complex
process than B2C. It is very important to find out the right respondent in B2B
research since they are preoccupied and show little interest in participation.
Types of market research undertaken in B2B research
There are several different types of B2B research studies as shown

Types of B2B
Research
Studies

Purpose

Business and
Competitive
Intelligence

These types of Marketing research give a broad

description of the competitive environment. It helps in
providing complete details of competitors including
competitors company profile, vision, suppliers
relationship and performance, competitors investment
plans and policies, products in pipeline, different
marketing strategies, their future expansion plans and
so on.

Customer
Satisfaction
research

This marketing research study helps in knowing the

perceptions of the customers with their shopping
experience.The purpose of this study is to improve the
customer satisfaction level on their perception basis.

Customer Loyalty
Research

The purpose of this study is to win new customers and

retain the existing customers for the whole life. Loyal
customers create a positive word of mouth for the
business

Customer
Relationship
Management
(CRM)
Distribution and
Channel
Research study

Primary role of marketing Research in CRM process is

to collect, store and analyse customer interaction
information in order to achieve maximum customer
satisfaction and retention
The purpose of this research study is to select the right
distribution partner whether it may be a wholesaler or
a retailer.This study helps in interacting and dealing
with other business firms and industries.
This study helps in converting lead generation(ROI)
into incremental sales. Higher sales conversion means
higher customer value generation which further results
in higher Return on Investment for the business.

Lead Generation
And Conversion
Stud

Q6.Write short notes on:

a) Copy testing
b) Sales Analysis
a)Copy testing
Copy testing is used to make sure that the advertising is well recognised and
that no shockers will occur after releasing the ads. Copy testing decreases
the chances of risk on brand or company image by an ineffective
advertisement.
Copy testing is generally carried out on a large scale as a quantitative
research study in which the target audience is shown the advertising. The
advertisers use copy testing as a technique to check the effectiveness of an
ad after its production. Copy testing is of different types but all types have
three identical elements as given below:
The target audience i.e. a group of people which is chosen and a series of
questions are asked to them regarding the product or service
A bunch of ads which are shown to the group of people, out of which one
ad is tested
Follow-up questions regarding the Ad and/or product For example, If a new
TV commercial for a laundry detergent was to be tested by the advertisers,
the agency would start by producing an animatic of their ad. (An animatic is
a rough, low budget, television commercial produced using animated
characters in place of real characters.)
After the production of animatic and the selection of sample respondents,first
round of questions will be asked. Advertisers may ask about the lives and
usage of laundry detergent by the women comprising sample respondents.
They may ask questions regarding preferences for detergent, and lastly ask
the product related specific questions.
Through copy testing, revision and correction of advertising campaigns are
done. The usage of copy testing reduces the chances of failed ad campaign
by an advertising agency. After completion of copy testing and the client
approval, the advertisement is produced and ultimately aired.
b) Sales analysis

Sales analysis is the determination of the extent to which a sales force has
met its sales objectives within the specified timeframe. The sales analysis
system is the focal point for the accumulation of sales data generated from
other modules.
Benefits of sales analysis
Identify the most profitable customers
Know which products are selling
Analyse market trends and geographic buying patterns
Calculate the profit generated by each product
Determine which divisions of business are selling
Identify which salespeople are performing
Instantly display sales performance for presentations and reports with
business graphics
Improve sales forecasting
Measure actual performance against quantity or revenue forecasts
Analyse tax collections