Amity School of Business

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Amity School of Business
BBA, Semester IV
Research Methodology and Report Preparation
Dr. Deepa Kapoor
Amity School of Business
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Applications of Marketing Research
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Penetrated Market
Current number of users of a product or
a service and the sales volume
generated by them.
Potential market
Those people who have an interest in
buying the product or the service
Available Market
Those people in the potential market
having an ability to use the
product/service.
Served or Target Market
The market that the firm can effectively
compete in
Source of
Information
:

Secondary
data
Sample
Survey
Describing a Market
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Has three roles:
Idea Generation
Includes alternative specifications for product concepts utilizing
end user analysis or problem analysis.
Screening: Evaluating new-product ideas
Refers to initial screening of consumer reactions to new
product concepts. Not effective for products that are radically
innovative and for products that require significant changes in
the consumption pattern.
Consumer product/market testing
involves testing the product in the market
Product Research
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STAGE I: Idea Generation
Focus groups and direct observation provide insights for
product development.
Secondary data, Group discussion, Brainstorming [ on a
given problem]
Problem Inventory Analysis -->Examining Customer
complaints
Morphological Analysis
Involves identification of the relevant dimensions of the
product under study and enumeration of relevant
variables with each dimension identified.
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STAGE II: Screening
Purposes of concept testing:
Determine customer attitude towards
the product concept or idea.
Measure customers reaction towards
the products attributes, e.g..
packaging, color, size, etc..
Predict the trial rate of the intended
product
Determine whether the product
concept warrants further development
and provide guidance on how the
concept might be improved or re-
defined.
Data collection
methods include:
Focus group discussion
Survey Research
Not very easy
Questions are to be
formulated carefully to
capture and effectively
communicate the
spark of an idea.
Demonstration
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Typical Questions in Concept Testing
QUESTION ITEMS TYPICAL QUESTIONS
Uniqueness of the
concept
In your opinion, how different is this product compared to
other existing products in the market?
Product attribute What do you particularly like about the shape of this
product?
User Would you be more likely to buy this product for yourself
or as a gift for someone else?
Price/Value
Reaction
Which of the statements shown in this card best describes
how you feel about the product? (Show cards with
comments expressing reactions).
Place of Purchase Where would you shop for the product?
Frequency of
purchase
How often would you buy this product?
Overall impression From what you have learnt about the product, which
word/phrases [show some words/phrases]best describes
your reaction to this product
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Market Testing


Standard
Test Market

Full marketing campaign
in a small number of
representative cities.



Simulated
Test Market

Test in a simulated
shopping environment
to a sample of
consumers.
Controlled
Test Market
A few stores that have
agreed to carry new
products for a fee.
Amity School of Business Controlled test marketing
A panel of stores carries new product for a fee.
Specific number of stores and geographic
location.
Controlled shelf position; number of facings,
Sales are measured at check out.
A sample of consumers interviewed later to give
their impression of the product.
Disadvantage: This technique exposes the
product and its features to competitors scrutiny.
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Simulated test marketing
30 to 40 qualified shoppers were called and questioned
brand familiarity and preferences in a specific product
category.
These consumers attended a brief screening of well known
as well as new TV commercials or print ads.
Consumer are provided small amount of money and they
are invited to a store where they may buy any items.
This provides a measure of the ads relative effectiveness
against competing ads in the market.
This method gives fairly accurate result of effect of ads and
trial rates. The results are incorporated in to new product
forecasting model to project ultimate sales levels.
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Typical information gathered
and major design issues in test marketing
Awareness level;
Purchase and repurchase
rate;
Users experience with the
product;
Users perception of the
product;
Users profile and
lifestyles;
Reasons for not using
products;
Market share.
Design Issues:
The number of test
markets to be chosen;
at least three
involves cost-benefit
analysis
The criteria used for
selecting test markets;
a normal and not over-
tested market
The length of the test.
six to 12 months
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Verbal Response
Physiological Response
Behavioral Response
Pre-test
Recognition
Recall
Triple Association
Post-test
MESSAGE RESEARCH
Circulation Research
Readership Research
Newspaper as a Medium
Telephone Interview
Audimeter Device
People Meter
Diary Method
Television as a Medium
Radio, Cinema, Internet
MEDIA RESEARCH
ADVERTISING RESEARCH
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Message Research: Pre-test
Pre-test refers to the test of an ad-message before releasing the
advertisement. Test techniques commonly used are:
Verbal responses involving
Consumer jury method
Portfolio test
Qualitative research
Physiological responses involving
Galvanic skin responses
Pupil dilation responses and
Eye movement tracking
Behavioral responses involving
In-store persuasion
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Pre-test II
Consumer jury method: Uses 50 to 100 customers as jury
members who are asked to rank the test advertisements in
order of interest, preference or ability to influence the
purchase of the product.

Portfolio test:A sample of consumers are asked to look
through a portfolio of 6 - 8 print advertisements within an
allotted period of time. The portfolio is then taken away and
the respondents are asked to recall the specifics of the ads
shown. Recalls are generally unaided. The effectiveness of
the test is measured by attributes such as ability to recall
the contents, claim of credibility in the advertisement,
general reaction, etc.
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Pre-test II
Qualitative Research: The two most widely used
methods are Focus group discussions and depth
interviews. Commonly used during the
development stage of the advertisement.

On-the-air test:The test advertisement is
broadcast in a small number of test markets and
selected respondents are interviewed by
telephone on the following day to ascertain
various aspects of the ad message.
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Pre-test III
Theater persuasion test: Involves a test group of target
customers who are invited to a small theater to view pilot
episodes of some new TV programs. But before the show
starts, they are presented with a list of product brands
(including the brand shown on the test ad) and asked to
indicate their preferred brand. It is announced that a lucky
draw will be held and each winner will be awarded their
preferred brand. The TV program is then shown including the
test ad. At the end of the show, the viewers are once again
asked to indicate their preferred brand followed by a second
lucky draw.
Brand preferences both before and after the show are then
computed and compared.
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Pre-test - IV
Galvanic Skin Responses, pupil dilation response and eye-
movement tracking method make use of different types of
mechanical devices are not very popular methods.
In-store persuasion: Involves intercepting a quota sample of
shoppers [Sample X] in a retail store who are shown a stack of print
advertisements including the test ad and are given a coupon booklet
with discounts for several products including the product in the test ad.
These shoppers are given sufficient time to look through these ads.
Intercept Sample X shoppers as they leave the shop and record if they
have purchased the product carried in the test ad. Calculate the
purchase incidence.
Repeat the same treatment to another Quota sample of shoppers
[Sample Y] who are not shown the stack of ads. Calculate the purchase
incidence and determine if they are significantly different from that of
Sample X.
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Post-test
Most of the pre-testing techniques are applicable to post testing.
Additional ones are briefly described below:
Recognition Test: Measures the incidence and intensity of
reading an advertisement. Normally involves interview with 100 to
150 qualified readers of a given issue of a magazine or periodical
that carried the advertisement. Specific questions are then asked to
see if they can remember the ad, its contents and the extent to
which they remembered.
Recall: Respondents are not shown an advertisement in full in
advance but asked what he/she can remember about the ad.
Triple Association Test: Used for assessing respondents abilities
to associate the product category, the brand, and the copy theme.
Two of these three are read or shown to a respondent who is asked
to mention the third.
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Media Research I
Focuses on six aspects:
1. Media distribution
Refers to circulation of newspaper/magazine/periodicals or
the number of TV/Radio ownership and Internet
subscription.
2. Media audience
Number of people exposed to the ad medium in question.
3. Exposure
Number of people actually noting the advertisement;
generally less than media audience.
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Media Research II
4. Perception
Number of people having conscious awareness and
perception of the advertisement in question. In print
advertisements, perception is affected by factors such as
size, color, position and language of the media. Typically,
perception is less than exposure.
5. Communication
Number of people who comprehend specific things about
and aspects of the advertisement. Communication lags
perception.
6. Purchase
Number of people purchasing the product after seeing the
advertisement.
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Newspaper as Ad Medium
Major types of information needed are;
Circulation
Generally available from secondary sources
in the form of audited circulation figures.
Readership
Data on readership is generally unknown and
need to be gathered through sample surveys.
Often problematic because identifying the
reader is not always easy.
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Television as a Medium I
Objective is to determine the TV audience. Programs watched by more
people are preferred by advertisers. Methods of measurement include:

Determining the Program rating
Respondents are provided with a roster of TV programs shown during
the past three days and are asked a series of questions to ascertain
the programs (i) they generally watch, and (ii) the programs they have
actually watched on each of the three days in question.
Telephone interviewing
Also known as coincidental telephone interview, this method involves
telephone interview with a sample of respondents during the
broadcasting hour.
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Television as a Medium II
Using audimeter device
Developed by A.C. Nielson Company, this is the most
sophisticated method of TV audience measurement. A technical
device called audimeter is attached to each of the TV sets of a
panel of pre-selected households. The device automatically
records the time when the TV set is switched on (and off), the
channel watched, duration of watching; and instantly transmits the
data to a central computer for processing. However, an audimeter
does not record who in the household is/are watching.

Using people meter
A technical device that like audimeter, which is activated (and
deactivated) by each household member pressing a button when
he or she watches the program (stops watching it).
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Television as a Medium III
Diary Method
A specially designed diary is given to a panel of
households to record the television viewing behavior of
the viewer


Number of radio listeners may be measured in the same
way as TV audience is measured. Simplest way to
measure cinema audience is through sample survey.
Internet users may also be identified using Internet-based
surveys.
Radio/Cinema/Internet as media