 IBM:

 In the year 2008 revenues of $103.6 billion,

conducts international tracking study twice a
year in 14 different languages across 27
different countries in Europe, North and South
America and Asia to capture trend data on main
frame computing. The result of such a study
allows IBM to see how successful it is in
penetrating key industries and how IBM
equipment is used in large and small
businesses.
 Recipo:
 An application service provider, it gives
its clients the ability to view customer
feedback the second it is entered on
their website, to capture true word and
emotion of the consumer. “Live”
marketing research.
 Portico research:
 It specializes in observing individuals
recording them on videos and selling
these tapes for tens of thousands of
dollars to its major clients such as
Honda, Delta, Lipton and P&G. For
Lipton: to determine people’s attitudes
towards tea.
 P&G
 It created a website www.toejam.com to target
teens. Company improved products also based on
feedbacks and chats.
 Marketing research has become global (IBM)
and real time (Recipo), is being conducted in a
specialized manner (Portico) and has become
much more integrated with marketing (P&G)
 According to the American Marketing Association:
 “Marketing research is the function that links the consumer,
customer and public to the marketer through information –
information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate
marketing actions; monitor marketing performance; and
improve understanding of marketing as a process.”
 “Marketing research is the systematic and objective
identification, collection, analysis, dissemination and use of
information for the purpose of improving decision making
related the identification and solution of problems and
opportunities in marketing.”
 To identify:
 Problem identification research
▪ Market Potential research
▪ Market Share research
▪ Image research
▪ Market characteristics Research
▪ Sales analysis Research
▪ Forecasting Research
▪ Business trends Research
 To solve:
 Problem solving Research
▪ Segmentation Research
▪ Product Research
▪ Pricing research
▪ Promotion Research
▪ Distribution research
A survey of companies conducting
marketing research indicates that 97%
of those who responded were conducting
market potential, market share and
market characteristics research
 About 90% also reported that they were
using other types of problem
identification research.
 Table 1.1: Problem solving research
 However problem identification and problem
solving research go hand in hand as shown by
Kellogg’s example in the case “Crunchy nut Red
adds color to Kellogg’s sales”
 Problem identification and problem solving
research not only go hand in hand as shown by
the Kellogg’s Example, but they also follow a
common marketing research process.  
 Marketing Research Process:
 It is a set of six steps that defines the
tasks to be accomplished in conducting
a marketing research study. These
include problem definition, development
of an approach to the problem, research
design formation, field work, data
preparation and analysis, and report
preparation.
 STEP 1:
 Problem definition:
▪ Purpose of study
▪ The relevant background information
▪ The information needed. How it will be used in
decision making.
 STEP 2:
 Development of an approach to the problem:
▪ An objective or theoretical framework
▪ Analytical methods
▪ Research questions
▪ Hypotheses
▪ Identify the information needed.
 STEP 3:
 Research design Formulation:
▪ Research design is a blue print or a framework for
conducting the Marketing research Project. It involves
following steps:
▪ Definition of the information needed
▪ Secondary data analysis
▪ Qualitative research
▪ Methods of collecting quantitative data (survey, observation
and experimentation)
▪ Measurement and scaling procedures
▪ Questionnaire design
▪ Sampling process and sample size
▪ Plan of data analysis
 STEP 4:
 Field work or Data Collection
 Step 5:
 Data Preparation and analysis.
▪ Editing
▪ Coding
▪ Transcription and verification of data
 STEP 6:
 Report preparation and presentation
▪ Addressing the specific research
▪ Questions identified
▪ Describing the approach
▪ The research design
▪ Data collection
▪ Data analysis procedure adopted
▪ Results and major findings
 Thenature of marketing
research:
 Fig: 1.2: The role of marketing research
 Case study: Johnson and Johnson
introduced gentle aspirin for babies
which failed in the market.
 Marketingresearch suppliers
and services:
 Fig: 1.3: Marketing research suppliers
and services:
 The role of MR in MIS and DSS
 MIS: Marketing information system: A formalized
set of procedures for generating, analyzing,
storing and distributing pertinent information to
marketing decision makers on an ongoing
business.
 DSS: Decision support systems: Information
systems that enable decision makers to interact
directly with both databases and analysis models.
 MIS
 Structured problems
 Use of reports
 Rigid structures
 Information displaying restricted
 Can improve decision making by clarifying the raw data
 DSS
 Unstructured problems
 Use of models
 User friendly interactions
 Adaptability
 Can improve decision making by using “what if” analysis.
 Some Facts:
 US accounts for only 39% of the MR
expenditure worldwide.
 40% of MR is conducted in western
Europe.
 9% of MR is conducted in Japan
 Most of European research is done in
Germany, UK, France, Italy and Spain.
 Group Discussion:
 Can ethical Standards be enforced in
marketing research? If So, How?
 Role playing:
 You are a project director working for a major
research supplier. You have just received a
telephone call from an irate respondent who
believes that an interviewer has violated her
privacy by calling at an inconvenient time. The
respondent expresses several ethical
concerns. Ask a fellow student to play the role
of this respondent. Address the respondents
concerns and pacify her.
 Defining the marketing research problem
and developing an approach
 Harley goes Whole Hog:
▪ Comeback in 2000s- so that there was a long waiting list to
get a bike
▪ In 2001, HD’s revenue exceeded $3.3 billion.
▪ Distributors urged HD to build more motorcycles but the
company was skeptical about investing in new production
facilities.
▪ The management decision problem was “should HD invest to
produce more motorcycles?”
 Importance of defining a problem:
 Problem definition: A broad statement of the general
problem and identification of the specific components
of the marketing research problem. All efforts, time ,
money spent will be wasted if the problem is
misunderstood or ill defined.
 The process of defining the problem and developing
an approach:
 Fig: 2.1
 Tasks Involved:
 Discussions with decision makers.
 Interviews with industry experts
 Secondary data analysis
 Qualitative research
 Environmental context of the problem:
 Past information and forecasts
 Resources and constraints
 Objectives
 Buyer behavior
 Legal environment
 Economic environment
 Marketing and technological skills.
 Management decision problem and
marketing research problem
 Defining marketing research problem:
 Broad statement - specific components
 Components of the approach:
 Objective / theoretical framework
 Analytical model
 Research questions
 Hypotheses:
▪ An unknown statement or proposition about a factor or
phenomenon that is of interest to researcher.
 Specification of information needed.
 Cases:
 1.1 Life in fast lane: fast food chains race to be number
one.
 1.2 Nike sprints ahead of the competition, yet has a long
way to run.
 1.3 Lexus Imparting value to luxury and luxury to value.
 
 Video Cases:
 Burke: Learning and growing through MR (www.burke.com)
 Accenture: the accent is in the name (www.accenture.com)
A research design is formulated
after:
 The problem has been defined
 The approach developed
 Types of research design:
 Exploratory
 Conclusive
▪ Descriptive
▪ Causal
 Ata broad level two main types of
research designs are employed in
marketing research:
 Exploratory
 conclusive
 Exploratory research involves
sec0ndary data and qualitative
research.
 Descriptive research makes use of
survey and observation methods
 The major methodology used in
causal designs is experimental
 Ina study of cause related marketing,
exploratory research in the form of secondary
data analysis and focus groups was conducted
to identify the social causes that American
businesses should be concerned about. As a
result the following causes were identified as
salient :
 Child care, drug abuse, public education, hunger,
crime, environment, medical research and poverty.
 Then conclusive research in the form of a descriptive cross
sectional survey was undertaken to quantify how and why causes
related marketing influences, consumer’s perception of the
company and brands to determine the relative salience of the
causes identified in exploratory research.
 A random sample of 2,000 Americans was surveyed by telephone.
About 61% of the respondents said that when price and quality
are equal, they would switch brands or stores to companies that
support good causes that help in the local or national level.
 Thesurvey also revealed that 68% of
the consumers would pay more for a
product that is linked to a good
cause. Company support of good
causes produces a more positive
image and greater trust of the
company according to 66% of those
surveyed.
 Inkeeping with these findings,
Starbucks wants to help the
environment by providing a new “eco-
friendly” coffee cup. The company also
has initiatives to help small coffee bean
farmers, local community programs and
charitable giving. There are even
employee incentives and awards for
volunteering for these causes.
 A research design is a framework or
blueprint for conducting the marketing
research project. It specifies the details
of the procedures necessary for
obtaining the information needed to
structure and / or solve marketing
research problems.
 Typically a research design involves the
following components or tasks:
 Define the information needed.
 Define the exploratory , descriptive and/or causal
phases of the research.
 Specify the measurement and scaling process and
procedures.
 Construct and pretest a questionnaire (interview
form) or an appropriate form for data collection.
 Specify the sampling process and sample.
 Develop a plan of data analysis.
 Exploratory Research:
 One type of research design, which has as it’s primary objective the
provision of insights into, and comprehension of the problem situation
confronting the researcher.
 The primary aim of the exploratory research is to provide insights, into,
and an understanding of, the problem confronting the researcher.
 Exploratory research is used in cases when you must define the problem
more precisely, identify relevant courses of action, or gain additional
insights before an approach can be developed. The information needed is
only loosely defined at this stage, and the research process that is adopted
is flexible and unstructured. For example: personal interviews with the
industry experts. Primary data is qualitative but small and non
representative in nature. So findings are tentative and can be an input for
further research.
 Conclusive Research:
 Research designed to assist the decision maker in
determining, evaluating and selecting the best course of
action to take in a given situation.
 Conclusive research is typically more formal and
structured then exploratory research.
 It is based on large representative samples and the data
obtained are subjected to quantitative analysis. The
findings from this research are considered to be
conclusive in nature in that they are used as input into
managerial decision making.
 Conclusive research decisions can be either descriptive or
causal and descriptive research designs may be either
cross sectional or longitudinal.
Differences Between Exploratory and Conclusive Research
Exploratory Conclusive
Objective: To Provide insights and To test hypothesis and
understanding. examine relationships.

Characteristics: Information needed is Information needed is

defined only loosely. clearly defined.
Research process is Research process is
flexible and formal and structured.
unstructured. Sample is Sample is large and
small and non representative. Data
representative. analysis is quantitative.
Analysis of primary
data is qualitative.

Findings/ results: Tentative. Conclusive.

Outcome: Generally followed by Findings used as input
A comparison of the basic research designs
Exploratory Descriptive Causal
Objective: Discover ideas Describe market Determine the
and insights characteristics or cause and effect
functions. relationships.

Characteristics: Flexible, Marked by the Manipulation of

Versatile, Often prior formulation one or more
the front end of of specific independent
the total design hypothesis. variables. Control
Preplanned and of other
structured mediating
design. variables.

Methods: Expert Surveys, Secondary Data, Experiments.

Pilot Surveys, Surveys, Panels,
Secondary Data, Observational
 Objective is to explore or search through a
problem or situation to provide insights and
understanding.
 Purpose:
 Formulate a problem or define a problem more precisely.
 Identify alternative courses of action.
 Develop hypothesis.
 Isolate key variables and relationships for further
examination.
 Gain insights for developing an approach to the problem.
 Establish priorities for further research.
 The creativity and ingenuity of the researcher plays a
major role in exploratory research. Researchers are alert
to new ideas and insights as they proceed. Once a new
idea or insight is discovered, they may redirect their
exploration in that direction.
 Yet the ability of the researcher are not the sole
determinations of good exploratory research.
Exploratory research can generally benefit from the use
of following methods:
 Survey of experts.
 Pilot Surveys
 Secondary data analyzed in a qualitative way.
 Qualitative research.
A type of conclusive research that has as
its major objective the description of
something-usually market characteristics
or functions.
 It assumes that the researcher has much
prior knowledge about the problem
situation.
 It is preplanned and structured.
 A descriptive design requires a clear
specification of the who, what, when,
where, why and way of the research.
 Purpose:
 To describe the characteristics of relevant groups,
such as consumers, salespeople, organizations, or
market areas.
 To estimate the percentage of units in a specified
population exhibiting a certain behavior.
 To determine the perceptions of product
characteristics.
 To determine the degree to which marketing
variables are associated.
 To make specific predictions.
 Descriptive research, in contrast to exploratory
research is marked by a clear statement of the
problem, specific hypotheses, and detailed
information needs.
 Market studies.
 Market share studies.
 Sales analysis studies.
 Image studies.
 Product usages studies.
 Distribution studies.
 Pricing studies.
 Advertising studies.
 Secondary data analyzed in a
quantitative as opposed to a
qualitative manner.
 Surveys.
 Panels.
 Observational and other data.
 Involves the collection of information from any given sample
of population elements only once.
 In single cross-sectional designs, there is only one sample
of respondents and information is obtained from this sample
only once.
 In multiple cross-sectional designs, there are two or more
samples of respondents, and information from each sample is
obtained only once. Often, information from different
samples is obtained at different times.
 To predict changes
 Find trends
 Cohort analysis consists of a series of surveys conducted at
appropriate time intervals, where the cohort serves as the
basic unit of analysis. A cohort is a group of respondents who
experience the same event within the same time interval.
 Table 3.3
Percentage consuming on a typical day

Age 1950 1960 1969 1979

8-19 52.9 62.6 73.2 81.0

20-29 45.2 60.7 76.0 75.8 C8
30-39 33.9 46.6 67.7 71.4 C7
40-49 23.2 40.8 58.6 67.8 C6
50+ 18.1 28.8 50.0 51.9 C5
C1 C2 C3 C4

C1: cohort born prior to 1900 C5: cohort born 1931-40

C2: cohort born 1901-10 C6: cohort born 1940-49
C3: cohort born 1911-20 C7: cohort born 1950-59
C4: cohort born 1921-30 C8: cohort born 1960-69
 A fixed sample (or samples) of population elements is
measured repeatedly on the same variables
 A longitudinal design differs from a cross-sectional design
in that the sample or samples remain the same over
time. In other words, the same people are studied over
time and the same variables are measured.
 How did the American people rate the performance of George w.
Bush immediately after the war in Afghanistan?
▪ Cross sectional design
 How did the American people change their view of Bush’s
performance during the war in Afghanistan?
▪ Longitudinal design
 Table 3.4

Evaluation Cross-Sectional Design Longitudinal

Criteria Design

Detecting Change - +
Large amount of data collection - +
Accuracy - +
Representative Sampling + -
Response bias + -

Note: A “+” indicates a relative advantage over the other design, whereas a “-”
indicates a relative disadvantage.

“A major advantage of longitudinal design over the cross sectional design is the
ability to detect change as a result of repeated measurement of the same variables
on the same sample.”
 Another advantage of the panels is that relatively
large amount of data can be collected, because
panel members are usually compensated for their
participation, they are willing to participate in
lengthy and demanding interviews.
 Panel data can be more accurate than cross
sectional data.
 The main disadvantage of panels is that they
may not be representative because:
 Refusal to cooperate (40% or more)
 Mortality (20% a year)
 Payment
 A type of conclusive research where the major
objective is to obtain evidence regarding cause-and-
effect (causal) relationship.
 It requires a planned and structured design.
 A relatively controlled environment is one in which the
other variables that may affect the dependent variable
are controlled or checked as much as possible. The
effect of manipulation on one or more dependent
variables is then measured to infer causability.
 In a departmental store, the presence and helpfulness
of salespeople (causal variable) will influence the sales
of housewares(effect variable).
 MeadWestvaco Experiment
▪ Does merchandise display affect sales?
 To understand which variables are the
cause (independent variables) and
which variables are the effect
(dependent variables) of a
phenomenon.
 To determine the nature of the
relationship between the causal
variables and the effect to be
predicted.
 METHOD: Experiments
 When little is known about the problem
situation, it is desirable to begin with
exploratory research. Exploratory research
is appropriate when the problem needs to
be defined more precisely, alternative
courses of action identified, research
questions or hypotheses developed.
 Exploratory research is the initial step in
the overall research design framework. It
should, in most instances, be followed by
descriptive or causal research.
Marketing Research at Citicorp is typical in that it is used to measure consumer
awareness of products, monitor their satisfaction and attitudes associated with
the product, track product usage and diagnose problems as they occur. To
accomplish these tasks Citicorp makes extensive use of exploratory, descriptive,
and causal research. Often it is advantageous to offer special financial
packages to specific groups of customers. In this case, a financial package is
being designed for senior citizens.

The following seven-step process was taken by marketing research to help in

the design.
1) A taskforce was created to better define the market parameters to include
all the needs of the many Citicorp branches. A final decision was made to
include Americans 55 years of age or older, retired, and in the upper half of the
financial strata of that market.
2) Exploratory research in the form of secondary data analysis
of the mature or older market was then performed and a study
of competitive products was conducted. Exploratory qualitative
research involving focus groups was also carried out in order to
determine the needs and desires of the market and the level of
satisfaction with the current products.

In the case of senior citizens,

a great deal of diversity was
found in the market. This
was determined to be due to
such factors as affluence,
relative age, and the
absence or presence of a
spouse.
3) The next stage of research was brainstorming. This involved the
formation of many different financial packages aimed at the target market.
In this case, a total of 10 ideas were generated.
4) The feasibility of the 10 ideas generated in step 3 was then tested.
The ideas were tested on the basis of whether they were possible in
relation to the business. The following list of questions was used as
a series of hurdles that the ideas had to pass to continue on to the
next step.

• Can the idea be explained in a manner that the target

market will easily understand?
• Does the idea fit into the overall strategy of
Citicorp?
 Is there an available description of a specific target market
for the proposed product?

 Does the research conducted so far indicate a potential

match for target market needs, and is the idea perceived to
have appeal to this market?

 Is there a feasible outline of the tactics and strategies for

implementing the program?

 Have the financial impact and cost of the program been

thoroughly evaluated and determined to be in line with
company practices?

In this study, only one idea generated from the brainstorming session
made it past all the listed hurdles and on to step 5.
5) A creative work-plan was then generated. This plan was to
emphasize the competitive advantage of the proposed product as
well as better delineate the specific features of the product.

6) The previous exploratory research was now followed up with

descriptive research in the form of mall intercept surveys of people
in the target market range. The survey showed that the list of
special features was too long and it was decided to drop the
features more commonly offered by competitors.
7) Finally, the product was test marketed in six of the Citicorp
branches within the target market. Test marketing is a form of
causal research. Given successful test marketing results, the
product is introduced nationally.
 Fig. 3.2
Total Error

Random Non-sampling
Sampling Error Error

Response Non-response
Error Error

Researcher Interviewer Respondent

Error Error Error

Surrogate Information Error Respondent Selection Error Inability Error

Measurement Error Questioning Error Unwillingness Error
Population Definition Error Recording Error
Sampling Frame Error Cheating Error
Data Analysis Error
 The total error is the variation between the true
mean value in the population of the variable of
interest and the observed mean value obtained in the
marketing research project.
 Random sampling error is the variation between
the true mean value for the population and the true
mean value for the original sample.
 Non-sampling errors can be attributed to sources
other than sampling, and they may be random or
nonrandom: including errors in problem definition,
approach, scales, questionnaire design, interviewing
methods, and data preparation and analysis. Non-
sampling errors consist of non-response errors and
response errors.
 Non-response error arises when some of the
respondents included in the sample do not
respond.
 Response error arises when respondents give
inaccurate answers or their answers are
misrecorded or misanalyzed.
 Management tools needed to help ensure that the marketing
research project is completed within the available resources-
financial, time and manpower etc.
 Once a research design, appropriately controlling the total
error, has been specified, the budgeting and scheduling
decision should be made
 CPM- critical path method.
 Management technique of dividing a research project into
component activities, determining the sequence of these
components and the time each activity will require.
 PERT- Program evaluation and review techniques.
 A more sophisticated critical path method that accounts for the
uncertainty in project completion times.
 GERT- graphical evaluation and review techniques.
 A sophisticated critical path method that accounts for both the
completion probabilities and the activity costs.
 The official layout of the planned marketing research
activity for management.
 It describes the research problem, the approach, the
research design, data collection methods, data analysis
methods, and reporting methods.
 Once the research design has been formulated and
budgeting and scheduling of the project accomplished, a
written research proposal should be prepared.
 The marketing research proposal contains the essence of
the project and serves as a contract between the
researcher and the management.
 Executive Summary
 Background
 Problem Definition/Objectives of the Research
 Approach to the Problem
 Research Design
 Kind of information to be obtained
 Methods of administrating the questionnaire.
 Scaling techniques.
 Nature of the questionnaire.
 Sampling plan and sample size.
 Fieldwork/Data Collection
 Data Analysis
 Reporting
 Cost and Time
 Appendices
Exploratory Research Design:
Secondary Data
 Primary data are originated by a
researcher for the specific purpose of
addressing the problem at hand. The
collection of primary data involves all six
steps of the marketing research process.
 Secondary data are data which have
already been collected for purposes other
than the problem at hand. These data can
be located quickly and inexpensively.
s
Censu
D a ta
 Table 4.1

Primary Data Secondary Data

Collection purpose For the problem at hand For other problems

Collection process Very involved Rapid & easy
Collection cost High Relatively low
Collection time Long Short
 Identify the problem
 Better define the problem
 Develop an approach to the problem
 Formulate an appropriate research
design (for example, by identifying the
key variables)
 Answer certain research questions and
test some hypotheses
 Interpret primary data more insightfully
 Specifications: Methodology Used to
Collect the Data
 Error: Accuracy of the Data
 Currency: When the Data Were Collected
 Objective(s): The Purpose for Which the
Data Were Collected
 Nature: The Content of the Data
 Dependability: Overall, How
Dependable Are the Data
 Table 4.2

Criteria Issues Remarks

Specifications & Data collection method, response rate, Data should be reliable,
Methodology quality & analysis of data, sampling valid, & generalizable to the
technique & size, questionnaire design, problem.
fieldwork.
Error & Examine errors in approach, Assess accuracy by
Accuracy research design, sampling, data comparing data from
collection & analysis, & reporting. different sources.

Currency Time lag between collection &
publication, frequency of updates.
Objective Why were the data collected?
Nature Definition of key variables, units of
measurement, categories used,
relationships examined.
Dependability Expertise, credibility, reputation, &
trustworthiness of the source.
Census data are updated by
syndicated firms.
The objective determines
the relevance of data.
Reconfigure the data to
increase their usefulness.
Data should be obtained
from an original source.
 Fig. 4.1

Secondary Data

Internal External

Ready to Requires Further Published Computerized Syndicated

Use Processing Materials Databases Services
Department Store Project
Sales were analyzed to obtain:
 Sales by product line
 Sales by major department (e.g., men's wear,
house wares)
 Sales by specific stores
 Sales by geographical region
 Sales by cash versus credit purchases
 Sales in specific time periods
 Sales by size of purchase
 Sales trends in many of these classifications were
also examined.
I. Demographic Data
- Identification (name, address, telephone)
- Sex
- Marital status
- Names of family members
- Age (including ages of family members)
- Income
- Occupation
- Number of children present
- Home ownership
- Length of residence
- Number and make of cars owned
II. Psychographic Lifestyle Data
- Interest in golf
- Interest in snow skiing
- Interest in book reading
- Interest in running
- Interest in bicycling
- Interest in pets
- Interest in fishing
- Interest in electronics
- Interest in cable television
There are also firms such as Dun & Bradstreet and American Business
Information which collect demographic data on businesses.
 Fig. 4.2

Published Secondary
Data

General Business Government

Sources Sources

Guides Directories Indexes Statistical Census Other

Data Data Government
Publications
 Fig. 4.3

Computerized
Databases

Online Internet Off-Line

Bibliographic Numeric Full-Text Directory Special-

Databases Databases Databases Databases Purpose
Databases
Guides
 An excellent source of standard or recurring information
 Helpful in identifying other important sources of directories,
trade associations, and trade publications
 One of the first sources a researcher should consult

Directories
 Helpful for identifying individuals or organizations that
collect specific data
 Examples: Consultants and Consulting Organizations
Directory, Encyclopedia of Associations, FINDEX: The
Directory of Market Research Reports, Studies and Surveys,
and Research Services Directory

Indices
 Helpful in locating information on a particular topic in several
different publications
 Bibliographic databases are composed
of citations to articles.
 Numeric databases contain numerical
and statistical information.
 Full-text databases contain the
complete text of the source documents
comprising the database.
 Directory databases provide information
on individuals, organizations, and services.
 Special-purpose databases provide
specialized information.
 Companies that collect and sell common
pools of data of known commercial value
designed to serve a number of clients.
 Syndicated sources can be classified
based on the unit of measurement
(households/consumers or institutions).
 Household/consumer data may be
obtained from surveys, diary panels, or
electronic scanner services.
 Institutional data may be obtained from
retailers, wholesalers, or industrial firms.
Fig. 4.4

Unit of
Measurement

Households/
Institutions
Consumers
 Fig. 4.4 cont.
Households /
Consumers

Panels

Electronic scanner
Purchase Media services

Surveys Volume Scanner Diary Scanner Diary

Tracking Data Panels Panels with
Cable TV

Psychographic Advertising
General
& Lifestyles Evaluation
 Fig. 4.4 cont.
Institutions

Retailers Wholesalers Industrial firms

Audits

Direct Clipping Corporate

Inquiries Services Reports
 Table 4.3
Type Characteristics Advantages Disadvantages Uses

Surveys Surveys conductedat Most flexiblewayof Interviewer errors; Market

regular intervals obtainingdata; respondent errors segmentation,
information on advertisingtheme
underlyingmotives selectionand
advertising
effectiveness
Purchase Households provide Recordedpurchase Lackof Forecastingsales,
Panels specificinformation behavior canbe representativeness; market shareand
regularlyover an linkedtothe responsebias; trends; establishing
extendedperiodof demographic/ maturation consumer profiles,
time; respondent psychographic brandloyaltyand
askedtorecord characteristics switching; evaluating
specificbehaviors as test markets,
theyoccur advertising, and
distribution
MediaPanels Electronicdevices Sameas purchase Sameas purchase Establishing
automatically panel panel advertisingrates;
recordingbehavior, selectingmedia
supplementedbya programor air time;
diary establishingviewer
profiles
 Table 4.3 cont.
Type Characteristics A
dvantages Disadvantages
ScannerVolume H ouseholdpurchases D atareflectactual D atam aynotbe
TrackingData arerecordedthrough purchases;tim elydata, representative;errorsin
electronicscannersin lessexpensive recordingpurchases;
superm arkets difficulttolink
purchasestoelem ents
ofm arketingm ixother
thanprice
ScannerD iaryPanels Scannerpanelsof D atareflectactual D atam aynotbe
withCableT V householdsthat purchases;sam ple representative;quality
subscribetocableTV control;abilitytolink ofdatalim ited
paneldatatohousehold
characteristics
 Table 4.3 cont.
Audit services Verification of productRelatively precise Coverage may be Measurement of
movement by information at the incomplete; matching consumer sales and
examining physical retail and wholesale of data on competitive market share,
records or performing levels activity may be competitive activity,
inventory analysis difficult analyzing distribution
patterns; tracking of
new products
industrial products Data banks on Important source of Data are lacking in Determining market
syndicated services industrial information on terms of content, potential by geographic
establishments created industrial firms, quantity, and quality area, defining sales
through direct inquiriesparticularly useful in territories, allocating
of companies, clipping initial phases of the advertising budget
services, and corporateprojects
reports
Single-source data provide integrated information on
household variables, including media consumption and
purchases, and marketing variables, such as product
sales, price, advertising, promotion, and in-store
marketing effort.

 Recruit a test panel of households and meter each

home's TV sets.
 Survey households periodically on what they read.
 Grocery purchases are tracked by UPC scanners.
 Track retail data, such as sales, advertising, and
promotion.
 Fig. 4.5

International Secondary Data

Domestic Organizations International Organizations in

in the United States Organizations in the Foreign Countries
United States

Government Nongovernment International Trade

Sources Governments Organizations Associations
Sources
Exploratory Research Design:
Qualitative Research
 Fig. 5.1

Marketing Research Data

Secondary Data Primary Data

Qualitative Data Quantitative Data

Descriptive Causal

Survey Observational Experimental

Data and Other Data Data
 Table 5.1

Qualitative Research Quantitative Research

Objective To gain a qualitative To quantify the data and

understanding of the generalize the results from the
underlying reasons and sample to the population of
motivations interest

Sample Small number of non- Large number of representative

representative cases cases

Data Collection Unstructured Structured

Data Analysis Non-statistical Statistical

Outcome Develop an initial Recommend a final course of

understanding action
 Fig. 5.2
Qualitative Research
Procedures

Direct (Non Indirect

disguised) (Disguised)

Projective
Techniques
Focus Groups Depth Interviews

Association Completion Construction Expressive

Techniques Techniques Techniques Techniques
 Table 5.2

Group Size 8-12

Group Composition Homogeneous, respondents,

prescreened

Physical Setting Relaxed, informal atmosphere

Time Duration 1-3 hours

Recording Use of audiocassettes and videotapes

Moderator Observational, interpersonal, and

communication skills of the moderator
1. Kindness with firmness: The moderator must combine a disciplined
detachment with understanding empathy so as to generate the
necessary interaction.

2. Permissiveness: The moderator must be permissive yet alert to signs

that the group’s cordiality or purpose is disintegrating.

3. Involvement: The moderator must encourage and stimulate intense

personal involvement.

4. Incomplete understanding: The moderator must encourage

respondents to be more specific about generalized comments by
exhibiting incomplete understanding.
5. Encouragement: The moderator must encourage unresponsive
members to participate.

6. Flexibility: The moderator must be able to improvise and alter the

planned outline amid the distractions of the group process.

7. Sensitivity: The moderator must be sensitive enough to guide the

group discussion at an intellectual as well as emotional level.
Fig. 5.3

Determine the Objectives and Define the Problem

Specify the Objectives of Qualitative Research

State the Objectives/Questions to be Answered by Focus Groups

Write a Screening Questionnaire

Develop a Moderator’s Outline

Conduct the Focus Group Interviews

Review Tapes and Analyze the Data

Summarize the Findings and Plan Follow-Up Research or Action

 Two-way focus group. This allows one target group
to listen to and learn from a related group. For
example, a focus group of physicians viewed a focus
group of arthritis patients discussing the treatment
they desired.

 Dual-moderator group. A focus group conducted by

two moderators: One moderator is responsible for
the smooth flow of the session, and the other
ensures that specific issues are discussed.

 Dueling-moderator group. There are two

moderators, but they deliberately take opposite
positions on the issues to be discussed.
 Respondent-moderator group. The moderator asks
selected participants to play the role of moderator
temporarily to improve group dynamics.

 Client-participant groups. Client personnel are

identified and made part of the discussion group.

 Mini groups. These groups consist of a moderator and

only 4 or 5 respondents.

 Tele-session groups. Focus group sessions by phone

using the conference call technique.

 Online Focus groups. Focus groups conducted online

over the Internet.
1. Synergism
2. Snowballing
3. Stimulation
4. Security
5. Spontaneity
6. Serendipity
7. Specialization
8. Scientific scrutiny
9. Structure
10. Speed
1. Misuse
2. Misjudge
3. Moderation
4. Messy
5. Misrepresentation
In laddering, the line of questioning proceeds from product characteristics
to user characteristics. This technique allows the researcher to tap into
the
consumer's network of meanings.

Wide body aircrafts (product characteristic)

 
I can get more work done
 

I accomplish more
 

I feel good about myself (user characteristic)

 
Advertising theme: You will feel good about yourself when flying
our airline. “You're The Boss.”
 In hidden issue questioning, the focus is not on
socially shared values but rather on personal “sore
spots;” not on general lifestyles but on deeply felt
personal concerns.

fantasies, work lives, and social lives

 
historic, elite, “masculine-camaraderie,” competitive
activities

Advertising theme: communicate aggressiveness, high

status, and competitive heritage of the airline.
 Symbolic analysis attempts to analyze the symbolic
meaning of objects by comparing them with their opposites.
The logical opposites of a product that are investigated are:
non-usage of the product, attributes of an imaginary “non-
product,” and opposite types of products.

“What would it be like if you could no longer use airplanes?”

 
“Without planes, I would have to rely on letters and long
distance calls.”
 
 
Airlines sell to the managers face-to-face communication.
 
Advertising theme: The airline will do the same thing for a
manager as Federal Express does for a package.
 An unstructured, indirect form of
questioning that encourages respondents
to project their underlying motivations,
beliefs, attitudes or feelings regarding the
issues of concern.
 In projective techniques, respondents are
asked to interpret the behavior of others.
 In interpreting the behavior of others,
respondents indirectly project their own
motivations, beliefs, attitudes, or feelings
into the situation.
In word association, respondents are presented with a
list of words, one at a time and asked to respond to each
with the first word that comes to mind. The words of
interest, called test words, are interspersed throughout the
list which also contains some neutral, or filler words to
disguise the purpose of the study. Responses are analyzed
by calculating:

(1)   the frequency with which any word is given as a

response;
(2)   the amount of time that elapses before a response is
given; and
(3) the number of respondents who do not respond at all to
a test word within a reasonable period of time.
EXAMPLE

STIMULUS MRS. M MRS. C

washday everyday ironing
fresh and sweet clean
pure air soiled
scrub don't; husband does clean
filth this neighborhood dirt
bubbles bath soap and water
family squabbles children
towels dirty wash
 In Sentence completion, respondents are given incomplete
sentences and asked to complete them. Generally, they are
asked to use the first word or phrase that comes to mind.

A person who shops at Sears is ______________________

 
A person who receives a gift certificate good for Sak's Fifth
Avenue would be __________________________________
 
J. C. Penney is most liked by _________________________
 
When I think of shopping in a department store, I ________

A variation of sentence completion is paragraph completion, in

which the respondent completes a paragraph beginning with
the stimulus phrase.
In story completion, respondents are given part
of a story – enough to direct attention to a
particular topic but not to hint at the ending.
They are required to give the conclusion in their
own words.
 With a picture response, the respondents are
asked to describe a series of pictures of ordinary
as well as unusual events. The respondent's
interpretation of the pictures gives indications of
that individual's personality.
 
In cartoon tests, cartoon characters are shown in
a specific situation related to the problem. The
respondents are asked to indicate what one
cartoon character might say in response to the
comments of another character. Cartoon tests are
simpler to administer and analyze than picture
response techniques.
Figure 5.4

Sears

Let’s see if we can

pick up some
house wares at
Sears
In expressive techniques, respondents are presented
with a verbal or visual situation and asked to relate the
feelings and attitudes of other people to the situation.

Role playing Respondents are asked to play the role

or assume the behavior of someone else.

Third-person technique The respondent is presented

with a verbal or visual situation and the respondent is
asked to relate the beliefs and attitudes of a third person
rather than directly expressing personal beliefs and
attitudes. This third person may be a friend, neighbor,
colleague, or a “typical” person.
 They may elicit responses that subjects
would be unwilling or unable to give if
they knew the purpose of the study.
 Helpful when the issues to be addressed
are personal, sensitive, or subject to
strong social norms.
 Helpful when underlying motivations,
beliefs, and attitudes are operating at a
subconscious level.
 Suffer from many of the disadvantages of
unstructured direct techniques, but to a
greater extent.
 Require highly trained interviewers.
 Skilled interpreters are also required to
analyze the responses.
 There is a serious risk of interpretation
bias.
 They tend to be expensive.
 May require respondents to engage in
unusual behavior.
 Projective techniques should be used
because the required information
cannot be accurately obtained by direct
methods.
 Projective techniques should be used
for exploratory research to gain initial
insights and understanding.
 Given their complexity, projective
techniques should not be used naively.
 Table 5.3

Criteria Focus Depth Interviews Projective

Groups Techniques
1. Degree of Structure Relatively high Relatively medium Relatively low
2. Probing of individual Low High Medium
respondents
3. Moderator bias Relatively medium Relatively high Low to high
4. Interpretation bias Relatively low Relatively high
5. Uncovering Low Relatively medium High
subconscious Medium to high
information
6. Discovering innovative High Low
information Medium
7. Obtaining sensitive Low High
information Medium
8. Involve unusual behavior No Yes
or questioning To a limited extent
9. Overall usefulness Highly useful Useful Somewhat useful
 Geographical constraints are removed and
time constraints are lessened.
 Unique opportunity to re-contact group
participants at a later date.
 Can recruit people not interested in traditional
focus groups: doctors, lawyers, etc.
 Moderators can carry on side conversations
with individual respondents.
 There is no travel, video taping, or facilities to
arrange; so the cost is much lower.
 Only people that have access to the Internet
can participate.

 Verifying that a respondent is a member of a

target group is difficult.

 There is lack of general control over the

respondent's environment.

 Only audio and visual stimuli can be tested.

Products can not be touched (e.g., clothing) or
smelled (e.g., perfumes).
Descriptive Research Design:
Survey and Observation
 Fig. 6.1
Survey
Methods

Telephone Personal Mail Electronic

In-Home Mall Computer-Assisted Internet

E-mail
Intercept Personal
Interviewing

Traditional Computer-Assisted
Mail Mail
Telephone Telephone
Interview Panel
Interviewing
 Table 6.1

Outgoing Envelope
Outgoing envelope: size, color, return address
Postage Method of addressing
Cover Letter
Sponsorship Type of appeal Postscript
Personalization Signature
Questionnaire
Length Size Layout Format
Content Reproduction Color Respondent anonymity
Return Envelope
Type of envelope Postage
Incentives
Monetary versus non-monetary Prepaid versus promised amount
Flexibility of Data Collection
 The flexibility of data collection is determined primarily by
the extent to which the respondent can interact with the
interviewer and the survey questionnaire.
 
Diversity of Questions
 The diversity of questions that can be asked in a survey
depends upon the degree of interaction the respondent has
with the interviewer and the questionnaire, as well as the
ability to actually see the questions.
 
Use of Physical Stimuli
 The ability to use physical stimuli such as the product, a
product prototype, commercials, or promotional displays
during the interview.
 
Sample Control
 Sample control is the ability of the survey mode to reach
the units specified in the sample effectively and efficiently.

Control of the Data Collection Environment

 The degree of control a researcher has over the
environment in which the respondent answers the
questionnaire.
 
Control of Field Force
 The ability to control the interviewers and supervisors
involved in data collection.
 
Quantity of Data
 The ability to collect large amounts of data.
 
Response Rate
 Survey response rate is broadly defined as the percentage
of the total attempted interviews that are completed.

Perceived Anonymity
 Perceived anonymity refers to the respondents'
perceptions that their identities will not be discerned by the
interviewer or the researcher.
 
Social Desirability/Sensitive Information
 Social desirability is the tendency of the respondents to
give answers that are socially acceptable, whether or not
they are true.
Potential for Interviewer Bias
 The extent of the interviewer's role determines
the potential for bias.

Speed
 The total time taken for administering the survey
to the entire sample.

Cost
 The total cost of administering the survey and
collecting the data.
 Table 6.2
Mall-
Criteria Phone/ In-Home Intercept Mail Mail
CATI Interviews Interviews CAPI Surveys Panels E-Mail Internet

Flexibility of data
collection
Diversity of question
 
 For structured observation, the
researcher specifies in detail what is to be
observed and how the measurements are
to be recorded, e.g., an auditor performing
inventory analysis in a store.
 In unstructured observation, the
observer monitors all aspects of the
phenomenon that seem relevant to the
problem at hand, e.g., observing children
playing with new toys.
 In disguised observation, the
respondents are unaware that they are
being observed. Disguise may be
accomplished by using one-way mirrors,
hidden cameras, or inconspicuous
mechanical devices. Observers may be
disguised as shoppers or sales clerks.
 In undisguised observation, the
respondents are aware that they are under
observation.
 Natural observation involves observing
behavior as it takes places in the
environment. For example, one could
observe the behavior of respondents
eating fast food in Burger King.

 In contrived observation, respondents'

behavior is observed in an artificial
environment, such as a test kitchen.
 Fig. 6.3

Classifying
Observation
Methods

Observation Methods

Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis
A researcher observes actual
behavior as it occurs.
 The observer does not attempt to
manipulate the phenomenon being
observed but merely records what
takes place.
 For example, a researcher might
record traffic counts and observe
traffic flows in a department store.
Do not require respondents' direct participation.
 the AC Nielsen audimeter
 turnstiles that record the number of people entering or
leaving a building.
 On-site cameras (still, motion picture, or video)
 Optical scanners in supermarkets

Do require respondent involvement.

 eye-tracking monitors
 pupilometers
 psychogalvanometers
 voice pitch analyzers
 devices measuring response latency
 The researcher collects data by examining
physical records or performing inventory
analysis.
 Data are collected personally by the
researcher.
 The data are based upon counts, usually
of physical objects.
 The objective, systematic, and quantitative
description of the manifest content of a
communication.
 The unit of analysis may be words, characters
(individuals or objects), themes (propositions),
space and time measures (length or duration of
the message), or topics (subject of the
message).
 Analytical categories for classifying the units
are developed and the communication is
broken down according to prescribed rules.
Data collection is based on physical traces, or evidence, of past
behavior.

 The selective erosion of tiles in a museum indexed by the

replacement rate was used to determine the relative popularity
of exhibits.
 The number of different fingerprints on a page was used to
gauge the readership of various advertisements in a magazine.
 The position of the radio dials in cars brought in for service was
used to estimate share of listening audience of various radio
stations.
 The age and condition of cars in a parking lot were used to
assess the affluence of customers.
 The magazines people donated to charity were used to
determine people's favorite magazines.
 Internet visitors leave traces which can be analyzed to examine
browsing and usage behavior by using cookies.
 Table 6.3

Criteria Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis Analysis

Degree of structure Low Low to high High High Medium

Degree of disguise Medium Low to high Low High High
Ability to observe High Low to high High Medium Low
in natural setting
Observation bias High Low Low Medium Medium
Analysis Bias High Low to Low Low Medium
Medium
General remarks Most Can be Expensive Limited to Method of
flexible intrusive commu- last resort
nications
 They permit measurement of actual behavior
rather than reports of intended or preferred
behavior.
 There is no reporting bias, and potential bias
caused by the interviewer and the
interviewing process is eliminated or reduced.
 Certain types of data can be collected only by
observation.
 If the observed phenomenon occurs
frequently or is of short duration,
observational methods may be cheaper and
faster than survey methods.
 The reasons for the observed behavior may not be
determined since little is known about the underlying
motives, beliefs, attitudes, and preferences.
 Selective perception (bias in the researcher's perception)
can bias the data.
 Observational data are often time-consuming and
expensive, and it is difficult to observe certain forms of
behavior.
 In some cases, the use of observational methods may be
unethical, as in observing people without their knowledge
or consent.

It is best to view observation as a complement to survey

methods, rather than as being in competition with them.
 Table 6.4
Criteria Telephone Personal Mail Electronic
High sample control     +          +                  -     -
Difficulty in locating     +          - +     +   
respondents at home
Inaccessibility of homes     +          - +     +
Unavailability of a large      +          - +     +
pool of trained interviewers
Large population in rural areas     -          + -     -
Unavailability of maps     +          - +     +
Unavailability of current     -          + -      +
telephone directory
Unavailability of mailing lists     +          + -     +
Low penetration of telephones     -          + +      -
Lack of an efficient postal system     +          + -      +
Low level of literacy     -          + -      -
Face-to-face communication culture    -          + -      -
Poor access to computers & Internet    ?                 + ?      -
Note: A (+) denotes an advantage, and a (–) denotes a disadvantage. 
Causal Research Design:
Experimentation
A statement such as "X causes Y " will have the following
meaning to an ordinary person and to a scientist.
____________________________________________________
Ordinary Meaning Scientific Meaning
____________________________________________________
X is the only cause of Y. X is only one of a number of
possible causes of Y.

X must always lead to Y The occurrence of X makes the

(X is a deterministic occurrence of Y more probable
cause of Y). (X is a probabilistic cause of Y).
 
It is possible to prove We can never prove that X is a
that X is a cause of Y. cause of Y. At best, we can
infer that X is a cause of Y.
____________________________________________________
 Concomitant variation is the extent to
which a cause, X, and an effect, Y, occur
together or vary together in the way predicted
by the hypothesis under consideration.
 The time order of occurrence condition
states that the causing event must occur
either before or simultaneously with the
effect; it cannot occur afterwards.
 The absence of other possible causal
factors means that the factor or variable
being investigated should be the only possible
causal explanation.
 Table 7.1

Purchase of Fashion Clothing, Y

High Low
Education, X

High 363 (73%) 137 (27%) 500 (100%)

Low 322 (64%) 178 (36%) 500 (100%)

 Low Income High Income
Purchase Purchase

High Low High Low

122 (61%) 78 (39%) High 241 (80%) 59 (20%) 300

Education
High 200 (100%)
Education

171 (57%) 129 (43%) 300 (100%) Low 151 (76%) 49 (24%) 200
Low
 Independent variables are variables or alternatives
that are manipulated and whose effects are measured
and compared, e.g., price levels.
 Test units are individuals, organizations, or other
entities whose response to the independent variables or
treatments is being examined, e.g., consumers or stores.
 Dependent variables are the variables which measure
the effect of the independent variables on the test units,
e.g., sales, profits, and market shares.
 Extraneous variables are all variables other than the
independent variables that affect the response of the test
units, e.g., store size, store location, and competitive
effort.
An experimental design is a set of
procedures specifying

 the test units and how these units are to

be divided into homogeneous subsamples,
 what independent variables or treatments
are to be manipulated,
 what dependent variables are to be
measured, and
 how the extraneous variables are to be
controlled.
 Internal validity refers to whether the
manipulation of the independent variables or
treatments actually caused the observed effects
on the dependent variables. Control of
extraneous variables is a necessary condition for
establishing internal validity.
 External validity refers to whether the cause-
and-effect relationships found in the experiment
can be generalized. To what populations,
settings, times, independent variables and
dependent variables can the results be projected?
 History refers to specific events that are external
to the experiment but occur at the same time as
the experiment.
 Maturation (MA) refers to changes in the test
units themselves that occur with the passage of
time.
 Testing effects are caused by the process of
experimentation. Typically, these are the effects
on the experiment of taking a measure on the
dependent variable before and after the
presentation of the treatment.
 The main testing effect (MT) occurs when a prior
observation affects a latter observation.
 In the interactive testing effect (IT), a prior
measurement affects the test unit's response to the
independent variable.
 Instrumentation (I) refers to changes in the
measuring instrument, in the observers or in the
scores themselves.
 Statistical regression effects (SR) occur when test
units with extreme scores move closer to the average
score during the course of the experiment.
 Selection bias (SB) refers to the improper
assignment of test units to treatment conditions.
 Mortality (MO) refers to the loss of test units while
the experiment is in progress.
 Randomization refers to the random assignment
of test units to experimental groups by using
random numbers. Treatment conditions are also
randomly assigned to experimental groups.
 Matching involves comparing test units on a set
of key background variables before assigning them
to the treatment conditions.
 Statistical control involves measuring the
extraneous variables and adjusting for their effects
through statistical analysis.
 Design control involves the use of experiments
designed to control specific extraneous variables.
 Experiments can be time consuming,
particularly if the researcher is interested in
measuring the long-term effects.
 Experiments are often expensive. The
requirements of experimental group, control
group, and multiple measurements
significantly add to the cost of research.
 Experiments can be difficult to administer. It
may be impossible to control for the effects of
the extraneous variables, particularly in a field
environment.
 Competitors may deliberately contaminate the
results of a field experiment.
Measurement and Scaling: Fundamentals and
Comparative Scaling
 Measurement means assigning numbers or
other symbols to characteristics of objects
according to certain prespecified rules.
 One-to-one correspondence between the
numbers and the characteristics being
measured.
 The rules for assigning numbers should be
standardized and applied uniformly.
 Rules must not change over objects or time.
 
Scaling involves creating a continuum upon
which measured objects are located.

Consider an attitude scale from 1 to 100. Each

respondent is assigned a number from 1 to 100,
with 1 = Extremely Unfavorable, and 100 =
Extremely Favorable. Measurement is the actual
assignment of a number from 1 to 100 to each
respondent. Scaling is the process of placing the
respondents on a continuum with respect to their
attitude toward department stores.
Scale Figure 8.1
Nominal Numbers Finish
Assigned
7 8 3
to Runners

Ordinal Rank Order Finish

of Winners
Third Second First
place place place

Interval Performance
Rating on a 8.2 9.1 9.6

0 to 10 Scale
15.2 14.1 13.4
Ratio Time to
Finish, in
 The numbers serve only as labels or tags for
identifying and classifying objects.
 When used for identification, there is a strict one-
to-one correspondence between the numbers and
the objects.
 The numbers do not reflect the amount of the
characteristic possessed by the objects.
 The only permissible operation on the numbers in
a nominal scale is counting.
 Only a limited number of statistics, all of which are
based on frequency counts, are permissible, e.g.,
percentages, and mode.
 Table 8.2

Nominal Ordinal Interval Ratio

Scale Scale Scale Scale
Preference Preference $ spent last
No. Store Rankings Ratings
3 months 1-7 11-17
7 79 5 15 0
1. Lord & Taylor 2 25 7 17 200
2. Macy’s 8 82 4 14 0
3 30 6 16 100
3. Kmart
1 10 7 17 250
4. Rich’s 5 53 5 15 35
5. J.C. Penney 9 95 4 14 0
6. Neiman Marcus 6 61 5 15 100
7. Target 4 45 6 16 0
10 115 2 12 10
8. Saks Fifth Avenue
9. Sears
10.Wal-Mart
 A ranking scale in which numbers are assigned to
objects to indicate the relative extent to which
the objects possess some characteristic.
 Can determine whether an object has more or
less of a characteristic than some other object,
but not how much more or less.
 Any series of numbers can be assigned that
preserves the ordered relationships between the
objects.
 In addition to the counting operation allowable
for nominal scale data, ordinal scales permit the
use of statistics based on centiles, e.g.,
percentile, quartile, median.
 Numerically equal distances on the scale represent equal
values in the characteristic being measured.
 It permits comparison of the differences between objects.
 The location of the zero point is not fixed. Both the zero
point and the units of measurement are arbitrary.
 Any positive linear transformation of the form y = a + bx
will preserve the properties of the scale.
 It is meaningful to take ratios of scale values.
 Statistical techniques that may be used include all of
those that can be applied to nominal and ordinal data,
and in addition the arithmetic mean, standard deviation,
and other statistics commonly used in marketing
research.
 Possesses all the properties of the nominal,
ordinal, and interval scales.
 It has an absolute zero point.
 It is meaningful to compute ratios of scale values.

 Only proportionate transformations of the form y

= bx, where b is a positive constant, are allowed.

 All statistical techniques can be applied to ratio

data.
 Table 8.1

Sca le Ba sic Com m on Ma rke ting Pe rm issible Sta tistics

Cha ra cte ristics Ex am ple s Ex a m ple s Descriptive Inferential
Nomina l Numbers identify Social Security Brand nos., storePercentages, Chi-square,
& classify objects nos., numbering types mode binomial test
of football players
Ordina l Nos. indicate the Quality rankings, Preference Percentile, Rank-order
relative positions rankings of teamsrankings, market median correlation,
of objects but not in a tournament position, social Friedman
the magnitude of class ANOVA
differences
between them
Inte rva l Differences Temperature Attitudes, Range, mean, Product-
between objects (Fahrenheit) opinions, index standard moment
Ra tio Zero point is fixed,Length, weight Age, sales, Geometric Coefficient of
ratios of scale income, costs mean, harmonic variation
values can be mean
compared
 Scaling Techniques

Comparative Noncomparative
Scales Scales

Paired Rank Constant Q-Sort and Continuous Itemized

Comparison Order Sum Other Rating Scales Rating Scales
Procedures

Semantic Stapel
Likert
Differential
 Comparative scales involve the direct
comparison of stimulus objects. Comparative
scale data must be interpreted in relative terms
and have only ordinal or rank order properties.
 
 In noncomparative scales, each object is
scaled independently of the others in the
stimulus set. The resulting data are generally
assumed to be interval or ratio scaled.
 Small differences between stimulus objects can
be detected.
 Same known reference points for all respondents.

 Easily understood and can be applied.

 Involve fewer theoretical assumptions.
 Tend to reduce halo or carryover effects from one
judgment to another.
 Ordinal nature of the data
 Inability to generalize beyond the stimulus
objects scaled.
 A respondent is presented with two objects and
asked to select one according to some criterion.
 The data obtained are ordinal in nature.
 Paired comparison scaling is the most widely
used comparative scaling technique.
 With n brands, [n(n - 1) /2] paired comparisons
are required
 Under the assumption of transitivity, it is possible
to convert paired comparison data to a rank
order.
 Figure 8.3
Instructions: We are going to present you with ten pairs of
shampoo brands. For each pair, please indicate which one of the
two brands of shampoo you would prefer for personal use.
J hirmack Finesse Vidal Head & Pert
Sassoon Shoulders
Recording
J hirmack
Form: 0 0 1 0
Finesse 1a 0 1 0
Vidal Sassoon 1 1 1 1
Head & Shoulders 0 0 0 0
Pert 1 1 0 1
Number of Times 3 2 0 4 1
Preferredb
a
A 1 in a particular box means that the brand in that column was preferred over
the brand in the corresponding row. A 0 means that the row brand was
preferred over the column brand. bThe number of times a brand was preferred
is obtained by summing the 1s in each column.
The most common method of taste testing is paired comparison. The
consumer is asked to sample two different products and select the one
with the most appealing taste. The test is done in private and a
minimum of 1,000 responses is considered an adequate sample. A blind
taste test for a soft drink, where imagery, self-perception and brand
reputation are very important factors in the consumer’s purchasing
decision, may not be a good indicator of performance in the
marketplace. The introduction of New Coke illustrates this point. New
Coke was heavily favored in blind paired comparison taste tests, but its
introduction was less than successful, because image plays a major role
in the purchase of Coke.

A paired comparison taste

test
 Respondents are presented with several objects
simultaneously and asked to order or rank them
according to some criterion.
 It is possible that the respondent may dislike the
brand ranked 1 in an absolute sense.
 Furthermore, rank order scaling also results in
ordinal data.
 Only (n - 1) scaling decisions need be made in
rank order scaling.
 Figure 8.4

Instructions: Rank the various brands of toothpaste in order of

preference. Begin by picking out the one brand that you like
most and assign it a number 1. Then find the second most
preferred brand and assign it a number 2. Continue this
procedure until you have ranked all the brands of toothpaste in
order of preference. The least preferred brand should be
assigned a rank of 10.
No two brands should receive the same rank number.
The criterion of preference is entirely up to you. There is no
right or wrong answer. Just try to be consistent.
Figure 8.4 cont.

Form
Brand Rank Order
1. Crest _________
2. Colgate _________
3. Aim _________
4. Gleem _________
5. Macleans _________
6. Ultra Brite _________
7. Close Up _________
8. Pepsodent _________
9. Plus White _________
10. Stripe _________
 Respondents allocate a constant sum of units,
such as 100 points to attributes of a product to
reflect their importance.
 If an attribute is unimportant, the respondent
assigns it zero points.
 If an attribute is twice as important as some
other attribute, it receives twice as many points.
 The sum of all the points is 100. Hence, the
name of the scale.
 Figure 8.5

Instructions
On the next slide, there are eight attributes of
bathing soaps. Please allocate 100 points among
the attributes so that your allocation reflects the
relative importance you attach to each attribute.
The more points an attribute receives, the more
important the attribute is. If an attribute is not at all
important, assign it zero points. If an attribute is
twice as important as some other attribute, it
should receive twice as many points.
 Figure 8.5 cont.

Form
Average Responses of Three Segments
Attribute
Segment I Segment
8 II Segment2 III 4
1. Mildness 2 4 17
2. Lather 3 9 7
3. Shrinkage 53 17 9
4. Price 9 0 19
5. Fragrance 7 5 9
6. Packaging 5 3 20
13 60 15
7. Moisturizing
Sum 100 100 100
8. Cleaning Power
Measurement and Scaling:
Noncomparative Scaling
Techniques
 Respondents evaluate only one object at a time,
and for this reason noncomparative scales are
often referred to as monadic scales.
 Noncomparative techniques consist of continuous
and itemized rating scales.
Respondents rate the objects by placing a mark at the appropriate
position
on a line that runs from one extreme of the criterion variable to
the other.
The form of the continuous scale may vary considerably.
 
How would you rate Sears as a department store?
Version 1
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Probably the
best
 
Version 2
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - Probably the
best
0 10 20 30 40 50 60 70 80 90 100
 
Version 3
Very bad Neither good Very good
nor bad
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - -Probably the
best
0 10 20 30 40 50 60 70 80 90 100
A relatively new research tool, the perception analyzer, provides continuous measurement of “gut
reaction.” A group of up to 400 respondents is presented with TV or radio spots or advertising
copy. The measuring device consists of a dial that contains a 100-point range. Each participant
is given a dial and instructed to continuously record his or her reaction to the material being
tested.

As the respondents turn the dials, the information is

fed to a computer, which tabulates second-by-
second response profiles. As the results are
recorded by the computer, they are superimposed
on a video screen, enabling the researcher to view
the respondents' scores immediately. The
responses are also stored in a permanent data file
for use in further analysis. The response scores
can be broken down by categories, such as age,
income, sex, or product usage.
 The respondents are provided with a scale that
has a number or brief description associated with
each category.
 The categories are ordered in terms of scale
position, and the respondents are required to
select the specified category that best describes
the object being rated.
 The commonly used itemized rating scales are
the Likert, semantic differential, and Stapel
scales.
The Likert scale requires the respondents to indicate a degree of
agreement or
disagreement with each of a series of statements about the stimulus
objects.
 
Strongly Disagree Neither Agree Strongly
disagree agree nor
agree
disagree
 
1. Sears sells high quality merchandise. 1 2X 3 4 5
 
2. Sears has poor in-store service. 1 2X 3 4 5
 
3. I like to shop at Sears. 1 2 3X 4 5
 
 The analysis can be conducted on an item-by-item basis (profile
analysis), or a total (summated) score can be calculated.
The semantic differential is a seven-point rating scale with end
points associated with bipolar labels that have semantic meaning.
 

SEARS IS:
Powerful --:--:--:--:-X-:--:--: Weak
Unreliable --:--:--:--:--:-X-:--: Reliable
Modern --:--:--:--:--:--:-X-: Old-fashioned
 The negative adjective or phrase sometimes appears at the left side of the scale and
sometimes at the right.
 This controls the tendency of some respondents, particularly those with very positive or very
negative attitudes, to mark the right- or left-hand sides without reading the labels.
 Individual items on a semantic differential scale may be scored on either a -3 to +3 or a 1 to 7
scale.
 1) Rugged :---:---:---:---:---:---:---: Delicate

2) Excitable :---:---:---:---:---:---:---: Calm

3) Uncomfortable :---:---:---:---:---:---:---: Comfortable

4) Dominating :---:---:---:---:---:---:---: Submissive

5) Thrifty :---:---:---:---:---:---:---: Indulgent

6) Pleasant :---:---:---:---:---:---:---: Unpleasant

7) Contemporary :---:---:---:---:---:---:---: Obsolete

8) Organized :---:---:---:---:---:---:---: Unorganized

9) Rational :---:---:---:---:---:---:---: Emotional

10) Youthful :---:---:---:---:---:---:---: Mature

The Stapel scale is a unipolar rating scale with ten
categories
numbered from -5 to +5, without a neutral point (zero).
This scale
is usually presented vertically.
 
SEARS
 
+5 +5
+4 +4
+3 +3
+2 +2X
+1 +1
HIGH QUALITY POOR SERVICE
-1 -1
-2 -2
-3 -3
-4X -4
-5 -5

The data obtained by using a Stapel scale can be

analyzed in the
same way as semantic differential data.
 Table 9.1
Scale Basic Examples Advantages Disadvantages
Characteristics
Continuous Place a mark on a Reaction to Easy to construct Scoring can be
Rating continuous line TV cumbersome
Scale commercials unless
computerized
Itemized Rating
Scales

Likert Scale Degrees of Measurement Easy to construct, More

agreement on a 1 of attitudes administer, and time - consuming
(strongly disagree) understand
to 5 (strongly agree)
scale

Semantic Seven - point scale Brand, Versatile Controversy as

Differential with bipolar labels product, and to whether the
company data are interval
images

Stapel Unipolar ten - point Measurement Easy to construct, Confusing and

Scale scale, - 5 to +5, of attitudes administer over difficult to apply
witho ut a neutral and images telephone
point (zero)
1) Number of categories Although there is no single, optimal number,
traditional guidelines suggest that there
should be between five and nine categories

2) Balanced vs. unbalanced In general, the scale should be balanced to

obtain objective data

3) Odd/even no. of categories If a neutral or indifferent scale response is

possible from at least some of the respondents,
an odd number of categories should be used

4) Forced vs. non-forced In situations where the respondents are

expected to have no opinion, the accuracy of
the data may be improved by a non-forced scale

5) Verbal description An argument can be made for labeling all or

many scale categories. The category descriptions should be located as close to the
response categories as possible

6) Physical form A number of options should be tried and the

best selected
 Figure 9.1

Jovan Musk for Men is Jovan Musk for Men is

Extremely good Extremely good
Very good Very good
Good Good
Bad Somewhat good
Very bad Bad
Extremely bad Very bad
 Rating Scale Configurations
A variety of scale configurations may be employed to measure the
gentleness of Cheer detergent. Some examples include:
Cheer detergent is:

1) Very harsh --- --- --- --- --- --- --- Very gentle

2) Very harsh 1 2 3 4 5 6 7 Very gentle

3) . Very harsh
. Cheer
.
. Neither harsh nor gentle
.
.
. Very gentle

4) ____ ____ ____ ____ ____ ____ ____

Very Harsh Somewhat Neither harsh Somewhat Gentle Very
harsh Harsh nor gentle gentle gentle
-3 -2 -1 0 +1 +2 +3
5)

Very Neither harsh Very

harsh nor gentle gentle
 Figure 9.3
Thermometer Scale
Instructions: Please indicate how much you like McDonald’s hamburgers by coloring in
the thermometer. Start at the bottom and color up to the temperature level that best
indicates how strong your preference is.
Form: Like very 100
much 75
50
25
Dislike 0
very much

Smiling Face Scale

Instructions: Please point to the face that shows how much you like the Barbie Doll. If
you do not like the Barbie Doll at all, you would point to Face 1. If you liked it very much,
you would point to Face 5.
Form:

1 2 3 4 5
Sampling:
Design and Procedures
Population
The aggregate of all elements, sharing some common
set of characteristics, that comprises the universe for
the purpose of the marketing research.
Census
A complete enumeration of the elements of a
population or study object.
Sample
A subgroup of the elements of the population
selected for participation in the study.
Table 11.1

Type of Study

1. Budget
Fig. 11.1

Define the Population

Determine the Sampling Frame

Select Sampling Technique(s)

Determine the Sample Size

Execute the Sampling Process

The target population is the collection of elements or objects
that possess the information sought by the researcher and
about which inferences are to be made. The target
population should be defined in terms of elements, sampling
units, extent, and time.

 An element is the object about which or from which the

information is desired, e.g., the respondent.
 A sampling unit is an element, or a unit containing the
element, that is available for selection at some stage of the
sampling process.
 Extent refers to the geographical boundaries.
 Time is the time period under consideration.
Important qualitative factors in determining the
sample size

 the importance of the decision

 the nature of the research
 the number of variables
 the nature of the analysis
 sample sizes used in similar studies
 incidence rates
 completion rates
 resource constraints
 Table 11.2

Type of Study

Problem identificati
 Sampling Techniques

Nonprobability Probability
Sampling Techniques Sampling Techniques

Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling

Simple Random Systematic Stratified Cluster Other Sampling

Sampling Sampling Sampling Sampling Techniques
Convenience sampling attempts to obtain a
sample of convenient elements. Often,
respondents are selected because they happen
to be in the right place at the right time.

 use of students, and members of social

organizations
 mall intercept interviews without qualifying the
respondents
 department stores using charge account lists
 “people on the street” interviews
Judgmental sampling is a form of convenience
sampling in which the population elements are
selected based on the judgment of the
researcher.

 test markets
 purchase engineers selected in industrial
marketing research
 bellwether precincts selected in voting
behavior research
 expert witnesses used in court
Quota sampling may be viewed as two-stage restricted
judgmental sampling.
 The first stage consists of developing control categories, or
quotas, of population elements.
 In the second stage, sample elements are selected based on
convenience or judgment.

Population Sample
composition composition
Control
Characteristic Percentage Percentage Number
Sex
Male 48 48 480
Female 52 52 520
____ ____ ____
100 100 1000
In snowball sampling, an initial group of
respondents is selected, usually at random.

 After being interviewed, these respondents are

asked to identify others who belong to the
target population of interest.
 Subsequent respondents are selected based on
the referrals.
 Each element in the population has a known and
equal probability of selection.
 Each possible sample of a given size (n) has a
known and equal probability of being the sample
actually selected.
 This implies that every element is selected
independently of every other element.
 The sample is chosen by selecting a random starting point
and then picking every ith element in succession from the
sampling frame.
 The sampling interval, i, is determined by dividing the
population size N by the sample size n and rounding to the
nearest integer.
 When the ordering of the elements is related to the
characteristic of interest, systematic sampling increases the
representativeness of the sample.
 If the ordering of the elements produces a cyclical pattern,
systematic sampling may decrease the representativeness
of the sample.
For example, there are 100,000 elements in the population
and a sample of 1,000 is desired. In this case the sampling
interval, i, is 100. A random number between 1 and 100 is
selected. If, for example, this number is 23, the sample
consists of elements 23, 123, 223, 323, 423, 523, and so on.
 A two-step process in which the population is
partitioned into subpopulations, or strata.
 The strata should be mutually exclusive and
collectively exhaustive in that every population
element should be assigned to one and only one
stratum and no population elements should be
omitted.
 Next, elements are selected from each stratum
by a random procedure, usually SRS.
 A major objective of stratified sampling is to
increase precision without increasing cost.
 The elements within a stratum should be as homogeneous
as possible, but the elements in different strata should be
as heterogeneous as possible.
 The stratification variables should also be closely related to
the characteristic of interest.
 Finally, the variables should decrease the cost of the
stratification process by being easy to measure and apply.
 In proportionate stratified sampling, the size of the sample
drawn from each stratum is proportionate to the relative
size of that stratum in the total population.
 In disproportionate stratified sampling, the size of the
sample from each stratum is proportionate to the relative
size of that stratum and to the standard deviation of the
distribution of the characteristic of interest among all the
elements in that stratum.
 The target population is first divided into mutually exclusive and
collectively exhaustive subpopulations, or clusters.
 Then a random sample of clusters is selected, based on a
probability sampling technique such as SRS.
 For each selected cluster, either all the elements are included in
the sample (one-stage) or a sample of elements is drawn
probabilistically (two-stage).
 Elements within a cluster should be as heterogeneous as possible,
but clusters themselves should be as homogeneous as possible.
Ideally, each cluster should be a small-scale representation of the
population.
 In probability proportionate to size sampling, the clusters are
sampled with probability proportional to size. In the second stage,
the probability of selecting a sampling unit in a selected cluster
varies inversely with the size of the cluster.
 Fig. 11.3 Cluster Sampling

One-Stage Two-Stage Multistage

Sampling Sampling Sampling

Simple Cluster Probability

Sampling Proportionate
to Size Sampling
 Table
11.3
Technique Strengths
Nonprobability Sampling Least expensive, least
Convenience sampling time-consuming, most
convenient
Judgmental sampling Low cost, convenient,
not time-consuming
Quota sampling Sample can be controlled
for certain characteristics
Snowball sampling Can estimate rare
characteristics
Probability sampling Easily understood,
Simple random sampling results projectable
(SRS)
Systematic sampling Can increase
representativeness,
easier to implement than
SRS, sampling frame not
necessary
Stratified sampling Include all important
subpopulations,
precision
Cluster sampling Easy to implement, cost
effective
Weaknesses
Selection bias, sample not
representative, not recommended for
descriptive or causal research
Does not allow generalization,
subjective
Selection bias, no assurance of
representativeness
Time-consuming
Difficult to construct sampling
frame, expensive, lower precision,
no assurance of representativeness.
Can decrease representativeness
Difficult to select relevant
stratification variables, not feasible to
stratify on many variables, expensive
Imprecise, difficult to compute and
interpret results
Factors

Nature of research