Advertising and Marketing Research

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Research
Research Def: The systematic gathering of information to answer a question
or solve a problem.
Research is a human activity based on intellectual investigation, and aimed
at discovering, interpreting, and revising human knowledge on different
aspects of the world.
What Research Is? : Research is the systematic process of collecting and
analyzing information (data) in order to increase our understanding of the
phenomenon about which we are concerned or interested.
Marketing Research and Advertising
Research in Marketing: Marketing Research is the systematic and objective
search for and analysis of information relevant to the identification and
solution of any problem in the field of marketing.
The AMA (AMA-American Marketing Association) redefines MR: Marketing
Research is the function which links the consumer, customer and public to
the marketer through informationinformation 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.
Uses of MR undertaken by companies:
To measure market potentials, characteristics of the market and market
share.
To obtain information to make short range and long range forecasts.
To evaluate new-product opportunities and acceptance, and to test existing
products relative to competitors product.
To help companies make better advertising decisions.
What does research contribute to the advertising effort?
Insurance
Information
Insight
Inspiration
Various effects of an advertising message
Create awareness
Communicate information about attributes and benefits.
Associate a brand with feelings and emotions.
Create group norms
Precipitate behavior.
Advertising Research

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Research in Advertising: The foundation of any successful advertising

campaign is the understanding of motivations, perceptions and attitudes
behind consumers choice.
Research is an important tool and is used most often in the following
ways:
To help identify consumers.
To help look for new ideas in products or services.
To help improve current offerings.
To help pinpoint causes of certain problems.
To monitor activities.
To help in communication development.
To study promotional tools.
Objectives of advertising research:
We can distinguish four possible objectives for advertising research. These
are, in time-order:
To help define advertising strategy and to provide understanding of the
market and the target consumer.
To provide a basis for developing and modifying campaign ideas through
looking at consumer reactions.
To provide a basis for final decisions about whether or not a campaign is fit to
run.
To help us decide what our advertising has achieved once it has been
exposed.
This should be seen as a cyclical process, since the output of research done
to meet the fourth objective feeds naturally back into the first objective for
the development of a subsequent campaign.
Advertising research primarily relates to three critical decisions that
have to be made to develop an advertising program:
1. Setting objectives.
2. Selecting the message and
3. Choosing appropriate media vehicles.
Research process:
Define Research Problem/objective
Determine Expected value of perfect information
Research technique and Determine Data Collection method
Determine the measurement techniques
Research Design/ Sampling
Data Processing and Analysis
Determine Time And cost
Define the ethics of research
Prepare the research report
Step 1
Problem discovery

b) Problem definition
c) State Research objectives
d) Development of hypotheses
Step1: Define Research Problem/objective
a. PROBLEM DISCOVERY
1. It involves a search for causation among symptoms, problems, and decisions.
2. A symptom is a condition that indicates the existence of a problem, and we,
must be careful not to confuse this with a problem.
3. Symptoms occupy an essential place in the problem-solving process, for the
underlying problem.
4. A problem exists whenever one faces a question whose answer or a need
whose fulfilment involves doubt and uncertainty.
5. If there is no answer or solution, there is no problem (although the
consequences might be terrible);
6. and if there is only a single possible answer or solution, there is no problem.
7. A decision is a determination or resolution of a question.
8. In the terms of a business executive, a decision is the determination of a
course of action to be taken i.e. which alternative to choose.
9. Many routines or repetitive decisions to which marketing research is applied
often invoke a complex of problems, and considerable work is entailed in the
choice of the best available course of action or best alternative.
10.In defining the problem, the researcher should take into account the purpose
of the study, the relevant background information, what information is
needed, and how it will be used in decision making.
b. Problem definition
1. Problem definition involves discussion with the decision-makers, interviews
with industry experts, analysis of secondary data, and, perhaps, some
qualitative research, such as focus groups.
2. Once the problem has been precisely defined, the research can be designed
and conducted properly.
c. State Research objectives
1. The research objective is a statement, in as precise terminology as possible,
of what information is needed.
2. The research objective should be framed so that obtaining the information
will ensure that the research purpose is satisfied.
Research objectives have three components:
Research question:
1. It specifies the information the decision maker needs.
2. The research question asks what specific information is required to achieve
the research.
3. If the research question is answered by the research, then the information
should aid the decision maker.
d. Development of hypotheses:
1. A hypothesis is a possible answer to a research question.

2. The research determines which of these alternative answers is correct.

3. A hypothesis is a proposed explanation for an observable phenomenon. A
hypothesis is a tentative statement that proposes a possible explanation to
some phenomenon or event. A useful hypothesis is a testable statement
which may include a prediction.
4. A hypothesis should not be confused with a theory. Theories are general
explanations based on a large amount of data.

Formalized Hypotheses example:

If skin cancer is related to ultraviolet light, then people with a high exposure
to uv light will have a higher frequency of skin cancer.
If leaf color change is related to temperature, then exposing plants to low
temperatures will result in changes in leaf color.
Notice that these statements contain the words, if and then. They are
necessary in a formalized hypothesis. But not all if-then statements are
hypotheses. For example, "If I play the lottery, then I will get rich." This is a
simple prediction. In a formalized hypothesis, a tentative relationship is
stated.
For example, if the frequency of winning is related to frequency of buying
lottery tickets. "Then" is followed by a prediction of what will happen if you
increase or decrease the frequency of buying lottery tickets. If you always ask
yourself that if one thing is related to another, then you should be able to test
it.
Formalized hypotheses contain two variables. One is "independent" and the
other is "dependent." The independent variable is the one you, the "scientist"
control and the dependent variable is the one that you observe and/or
measure the results. In the statements above the dependent variable is
blue and the independent variable is red.
The ultimate value of a formalized hypothesis is it forces us to think about
what results we should look for in an experiment.
We have two types of hypothesis:
Null Hypothesis Ho: represents the status quo, the conservative theory
from previous experience that we accept until proven false.
(Trial defendant assumed not guilty unless otherwise proved)
Ho always contains the = sign. We always assume that Ho is true. It states
that there is no difference between a parameter and a hypothesized value.
Alternative Hypothesis Ha: a theory that contradicts the null hypothesis,
by specifying a DIFFERENCE between the parameter and the hypothesized
value. It contains the claim, or what the researcher wants to prove.
Ho: : :o
or Ho: : < :o
or Ho: : > :o
Example: A chemical company claims its products will increase the life of car
batteries. The mean lifetime of cars batteries is 36 months........Test the

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companys claim. If its more than 36 months its accepted or otherwise

rejected.
Step2: Determine Expected value of perfect information
Greater the information available the better the management is poised to
take a decision.
However care should be taken to note that the sourcing of the information
should not cost the Management greater than the value of the information
generated.
The Value of Information
Information can be useful, but what determines its real value to the
organization? In general, the value of information is determined by:
The ability and willingness to act on the information.
The accuracy of the information.
The level of indecisiveness that would exist without the information.
The amount of variation in the possible results.
The level of risk aversion.
The reaction of competitors to any decision improved by the information.
The cost of the information in terms of time and money.
Characteristics of Valuable Information
Relevance
Quality
Timeliness
Completeness
Step3: Research Technique and Determine Data Collection method
There are two broad categories of research:
Qualitative research and
Quantitative research.
Qualitative research
Qualitative research takes measurements that are difficult to analyze
mathematically.
Qualitative researchers aim to gather an in-depth understanding of human
behavior and the reasons that govern such behavior. The qualitative method
investigates the why and how of decision making, not just what, where,
when. Hence, smaller but focused samples are more often needed, rather
than large samples.
Qualitative methods produce information only on the particular cases studied,
and any more general conclusions are only hypotheses (informative guesses).
Quantitative methods can be used to verify which of such hypotheses are
true.
Quantitative research
Quantitative research is research which collects measurements that can
be analyzed mathematically. Quantitative research refers to the systematic
empirical investigation of quantitative properties and phenomena and their

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relationships. The objective of quantitative research is to develop and employ

mathematical models, theories and/or hypotheses pertaining to phenomena.
Some examples of when qualitative research is helpful include:
Testing response to advertising messages and concepts
Analyzing response to products and features
Exploring what issues should be tested during quantitative research
Quantitative research is the method to use when:
Measuring market size
Analyzing demand of a new product
Determining how many people exhibit a particular attitude or behavior
Measuring the size of particular market segments
Qualitative methods have at least four distinguishing
characteristics:
1. Small numbers of respondents. The idea is to devote a considerable
amount of time on each interview to get to the heart of a matter.
2. Unstructured question formats. That is, the questions are not
completely predetermined and the interviewer is free to probe for all details
and underlying feelings.
3. Indirect measurement of respondents' feelings and beliefs.
Respondents provide descriptive information about their thought and
feelings. These are not easily projected to the population.
4. Direct observation. The interviewer not only records answers but
observes how questions affect interviewees. Hesitant answers, agitation,
smiling, sweating, calmness, boredom etc. are all observable and all tell us
something about the individuals state of mind.
Data collection technique or research Technique:
Data play an important role in research. Facts, information or premises
systematically collected and formally presented for the purpose of drawing
inferences may be called data.
Sources of Data - Primary and Secondary
There are two main sources of data - primary and secondary.
Primary research is conducted from scratch.
It is original and collected to solve the problem in hand. Secondary research,
also known as desk research, already exists since it has been collected for
other purposes.
Primary vs. 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
nine 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.
Primary data
1. Surveys

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2. Observation Research
3. Depth interviews
4. Focus Groups.
5. Experimentation
A. Method of collecting primary data
1. Surveys:
The Survey method is the technique of gathering data by asking questions to
people who are thought to have desired information. A formal list of
questionnaire is prepared. Generally a non disguised approach is used. The
respondents are asked questions on their demographic interest opinion.
1. Types of Surveys:
Telephone
Face-to-face Interviews
Mail
Internet / Computer
1.Telephone Interview.
Telephone ownership is very common in developed countries. It is ideal for
collecting data from a geographically dispersed sample.
The interviews tend to be very structured and tend to lack depth. Telephone
interviews are cheaper to conduct than face-to-face interviews (on a per
person basis).
Advantages of telephone interviews
Can be geographically spread
Can be set up and conducted relatively cheaply
Random samples can be selected
Cheaper than face-to-face interviews
Disadvantages of telephone interviews
Respondents can simply hang up
Interviews tend to be a lot shorter
Visual aids cannot be used
Researchers cannot behavior or body language
2. Face-to-face Interviews.
Face-to face interviews are conducted between a market researcher and a
respondent.
Data is collected on a survey. Some surveys are very rigid or 'structured' and
use closed questions.
Data is easily compared. Other face-to-face interviews are more 'in depth,'
and depend upon more open forms of questioning. The research will probe
and develop points of interest.
Advantages of face-to-face interviews
They allow more 'depth'
Physical prompts such as products and pictures can be used
Body language can emphasize responses
Respondents can be 'observed' at the same time


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Disadvantages of face-to-face interviews

Interviews can be expensive
It can take a long period of time to arrange and conduct.
Some respondents will give biased responses when face-to-face with a
researcher
3. The Internet
The Internet can be used in a number of ways to collect primary data. Visitors
to sites can be asked to complete electronic questionnaires.
However responses will increase if an incentive is offered such as a free
newsletter, or free membership. Other important data is collected when
visitors sign up for membership.
Advantages of the Internet
Relatively inexpensive
Uses graphics and visual aids
Random samples can be selected
Visitors tend to be loyal to particular sites and are willing to give up time to
complete the forms
Disadvantages of the Internet
Only surveys current, not potential customers.
Needs knowledge of software to set up questionnaires and methods of
processing data
May deter visitors from your website.
4.Mail Survey
In many countries, the mail survey is the most appropriate way to gather
primary data.
Lists are colleted, or purchased, and a predesigned questionnaire is mailed to
a sample of respondents.
Mail surveys do not tend to generate more than a 5-10% response rate.
However, a second mailing to prompt or remind respondents tends to
improve response rates.
Mail surveys are less popular with the advent of technologies such as the
Internet and telephones, especially call centers.
2. Observation Research:
Observational methods are tools to gather information on current behavior.
A wide ranging set of research techniques aimed at observing consumers
interacting naturally with their surroundings including products and services
in use.
A key advantage of observation research is that often the respondent or
consumer is unaware that they are being observed, allowing their behavior to
be observed naturally.
Observational is use for collecting purely behavioral data such as in-store
traffic patterns or traffic passing a certain point on a highway system.

A research method
that relies on three
types of
observation:
people watching
people

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people watching
an
activity
machines watching
1. People watching people
a. Mystery Shoppers
people
b. One-Way Mirror Observations
c. Shopper Patterns
d. Content Analysis
e. Humanistic Inquiry
a. Mystery Shoppers

People employed
to pose as typical
consumers and
shop at retail
stores or other
businesses to

b. One-Way Mirror Observations

measure service
levels and
business
performance.

The practice of viewing focus groups, depth interviews or other respondent

interviews through a one-way mirror, so that the respondent cannot see the
observers.
c. Shopper Patterns
Refers to drawings that record the footsteps of a shopper through a store.
They show the flow of a representative sample of shoppers through a store.
[Also used to study the effect of music on shopper behavior. For instance, we
know that slow music makes them stay longer and buy more.]
d. Content Analysis
Content analysis is an observation techniques used to analyze written
material into meaningful units, using carefully applied rules.
It is defined as the objective, systematic and quantitative description of the
manifest content of communication.
A technique used to study written material, usually advertising copy, by
breaking it into meaningful units, using carefully applied rules.
Content Analysis attempts to determine what is being communicated to a
target audience by objectively and systematically describing the
communication's content.
e. Humanistic Inquiry
A method of inquiry in which the researcher is immersed in [becomes a part
of] the system or group under study, rather than using the scientific method
of standing apart from the system being studied.
2. People Watching an Activity
- refers to people (rather than machines) watching other people. Types
include:
Audit: Audits involve the physical inspection of inventories, sales receipts,
shelf facing and other aspects of marketing mix to determine sales, market
share, relative price, distribution and other relevant information. The different
types of audits are store audits, product audits and retail distribution audits
Physiological Measurement refers to measuring the level of involuntary
change in a person's activation based upon the stimuli of interest.
3. Machine Observation Types:
a. Traffic Counters - Machines used to measure vehicular flow over a
particular stretch of roadway.
3. Depth interviews:
Depth interviews are like lengthy psychoanalytic sessions between a single
respondent and a highly skilled interviewer.
The idea is to get to the deep, hidden underlying attitudes and feelings the
respondent has towards a product, service, company or problems which a
product is trying to solve.
Individual depth interviews typically require 30-45minutes. The interviewer
does not have a specific set of pre-specified questions that must be asked
according to the order imposed by a questionnaire. Instead, there is freedom
to create questions, to probe those responses that appear relevant, and
generally to try to develop the best set of data in any way practical.
Subject of interest is discussed in detail.

There is no fixed pattern for eliciting information from the respondents.

Generally conducted by highly trained interviewers. They must be thorough
in probing the respondents.
The interviewee is asked about the subject of his choice, coffee, for example,
and an attempt is made to explore the respondents attitudes in depth by
probing extensively into any other areas which may come up.
Interviewers have a general series of topics that they will introduce perhaps
such topics as coffee, or sleep, and will introduce them from time to time if
the respondent does not bring them up.
Tone of the interview is permissive and the respondent is allowed to talk as
much as he likes.
The interviewer must not influence the answers of the respondent.
The interpretation of the answers is very subjective and knowledge of human
behavior is required to analyze the information received.
However the interviewer must follow one rule; one must not consciously try
to affect the content of the answers given by the respondents.
The respondent. The respondent must feel free to reply to the various
questions, probes, and other, subtler, ways of encouraging responses in the
manner deemed most appropriate.
Individual depth interviews uses three questioning techniques
namely:
1. Laddering: The laddering method of interviewingis a technique that is
particularly helpful in eliciting goals and underlying values, and therefore,
possibly helpful during early stages of user experience research.
The laddering method of interviewing is technique to understanding peoples
core values and beliefs.
Laddering Technique is use to describe the linkages between customers
values and their overall purchasing behavior: the Means End Chain theory.
This theory provides both a framework for capturing qualitative laddering
research data in the consumer space and a model for assessing consumer
values and behaviors.
According to the Means End Chain theory, there is a hierarchy of consumer
perceptions and product knowledge that ranges from attributes (A) to
consumption consequences (C) to personal values (V), as follows:
Attribute:
At the top level of this hierarchy, attributes are most recognizable by
individuals. Individuals recognize the attributes of a product or system easily.
For example, I like this car, because it is a convertible.
Consequence:
In turn, the attributes have consequences for the individual. For example, the
convertible makes its driver feel young and free. Each attribute may have one
or more consequences for any given individual.
Core values:
finally, each consequence is linked to a core value of the persons life. For
example, the sense of youth makes that driver feel attractive.

Laddering involves having respondents identify attributes that distinguish

brands by asking questions.
Each distinguishing attribute is then probed to determine why it is important
or meaningful.
These reasons are then probed to determine why it is important, and so forth.
The purpose is to uncover the network of meanings associated with the
product, brand, or concept.
2.Hidden-issue questioning: Hidden-issue questioning focuses on
individual respondents feelings about sensitive issues.
Analysis on focus on common underlying themes across respondents. These
themes can then be used to guide advertising development
3.Symbolic questioning: symbolic analysis is a technique used by depth
interviewers in which deeper symbolic meanings are probed by asking
questions about their opposites
Individual depth interviews have been found to generate more and higher
quality ideas on a per respondent basis than either focus or minigroups.
Depth interviews are particularly appropriate when:
Detailed probing of an individuals behavior, attitude or needs is required;
The subject matter under discussion is likely to be of a highly confidential
nature (e. g. personal investment)
The subject matter is of an emotionally charged or embarrassing nature;
Certain strong, socially acceptable norms exist (e.g. baby feeding) and the
need to conform in a group discussion may influence responses;
Where highly detailed understanding of complicated behavior or decisionmaking pattern (e.g. planning the family holiday) are required; or
The interviews are with professional people or with people on the subject of
their jobs 9 e.g. finance directors)
Depth interviews are of most value where a study deals with
(1) a confidential, emotionally charged or embarrassing matter;
(2) a behaviour for which socially acceptable norms exist and the need to
conform in group discussions influences responses; (
(3) a complex behavioural or decision-making process that requires a detailed
idiosyncratic, step-by-step description; and
(4) when group interviews are difficult to schedule for the target population.
4. Focus Groups.
A Focus group discussion is the process of obtaining possible ideas or
solutions to a marketing problem from a group of respondents by discussing
it.
The emphasis in this method is on the results of group interaction when
focused on a series of topics a group moderator introduces.
The standard focus group interview involves 8 and 12 individuals and lasts
about 2 hours.
Normally each group is designed to reflect the characteristics of a particular
market segment. The respondents are selected according to the relevant
sampling plan and meet at a central location that generally has facility for
taping and/ or filming the interviews.
The discussion itself is led by a moderator.

The moderator attempts to progress through three stages during the

interviewer:
(1) establish rapport with the group, structure the rules of group interaction,
and set objectives;
(2) provoke intense discussion in the relevant areas; and
(3) summarize the groups responses to determine the extent of agreement.
The general either the moderator or a second person prepares a summary of
each session after analyzing the sessions transcript.
Focus Group Interviews can be applied to:
Basic- need studies for product idea creation,
New product idea or concept exploration,
Product positioning studies,
Advertising and communications research,
Background studies on consumers frames or reference,
Establishment of consumer vocabulary as a preliminary step in questionnaire
development and,
Determination of attitudes and behavior.
Advantages
1. Each individual is able to expand and refine their opinions in the
interaction with the other members.
2. This process provides more detailed and accurate information than could
be derived from each separately.
3. A group interview situation is generally more exciting and offers more
stimulation to the participants than the standard depth interviews.
4. The security of being in a crowd encourages some members to speak out
when they otherwise would not.
5. As the questions raised by the moderator are addressed to the entire
group rather than an individual the answer contains a degree of
spontaneity that is not produced by other techniques.
6. Focus groups can be used successfully with children over five. They are
also very useful with adults in developing countries where literacy rates
are low and survey research is difficult.
7. A final major advantage of focus groups is that executives often observe
the interview (from behind mirrors) or watch films of the interview

Disadvantages
1. Since focus group interviews last 1.5 to 3 hours and take place at a central
location, securing cooperation from a random sample is difficult.
2. Those who attend group interviews and actively participate in them are likely
to be different in many respects from those who do not.
3. There are chances that participants may go along with the popular opinion
instead of expressing their own which may be contrary to the popular
opinions.
4. The presence of a one-way mirror and /or an observer(s) has been found to
distort participants responses.

5. The moderator can introduce serious biases in the interview by shifting topics
too rapidly verbally or nonverbally encouraging certain answers, failing to
cover specific areas, and so forth.
6. Focus groups are expensive on a per respondent basis.
5. EXPERIMENTATION
Experimentation is a research method in which one or more variables are
consciously manipulated and the outcome or effect of that manipulation on
other variables is observed.
Experimental methods are commonly applied to determine causal
relationships or to quantify the magnitude of response of a variable.
Thus Experiments are defined as studies in which conditions are controlled so
that one or more independent variable(s) can be manipulated to test a
hypothesis about a dependent variable(s).
In other words, in experimental research the researcher manipulates the
independent/ experimental variable(s) and then measures the effect of this
manipulation on the dependent variable(s)
Examples
The effect of price changes on sales volume of a particular product can be
examined by actually varying the price of the product
The very basis of experimental research lies in the manipulation of
independent variables
Advertising Experiment
Will replacing commercial A with commercial B lead to a marked increase in
consumer preference for a companys brand?
Pricing Experiment
Can a company improve the profitability of its fashion clothing line by
increasing its price by 10 percent?
Sales Productivity Experiment
Will an increase in the average number of sales calls per customer from six to
eight per year significantly improve sales?

Shelf Space Experiment

Will decreasing the shelf space allocated to brand X detergent by 25 percent
significantly lower its sales?
Direct Mail Experiment
Will it be worthwhile to mail last year's donors an attractive (but expensive)
brochure describing the companys activities and soliciting higher
contributions for this year?
Experimental Settings - are three types:
a. Laboratory Experiments - Experiments conducted in a carefully
controlled environment (i.e., laboratory) where all (or most) variables can be
controlled.
However, while the laboratory allows the researcher to control the variables
involved, the lab may not accurately represent the real marketplace.

Thus, the research results may not hold up when transferred to (generalized
to) the actual marketplace.
Thus, lab results are said to have good internal validity, but often lack
external validity.
This suggests that lab results are more likely to be statistically correct than
results from field experiments, but less likely to be generalizable to the
population of interest which is always located outside of the laboratory
b. Field Experiments - Tests conducted outside the laboratory in an actual
market environment.
A field experiment is a research study conducted in a natural setting in which
the experimenter manipulates one or more independent variables under
conditions controlled as carefully as the situation will permit
A test market is a good example.
This solves the problem of realism of the test environment, but factors other
than the independent variable(s) of interest may influence the observed
changes in the dependent variable of interest because the researcher cannot
control all other independent variables that may affect the dependent
variable.
For instance, the researcher cannot control nor even precisely measure the
effects of competitive actions, the weather, the economy, societal trends, the
political climate, nor other elements of the uncontrollable environment.
A major difference between the two approaches is the degree of control
available during the manipulation and measurement process. A laboratory
experiment clearly offers better control than a field experiment with respect
to extraneous factors capable of influencing consumer preferences.
A laboratory experiment is a research study conducted in a contrived setting
in which the effect of all, or nearly all, influential but irrelevant independent
variables is kept to a minimum.
A field experiment is a research study conducted in a natural setting in which
the experimenter manipulates one or more independent variables under
conditions controlled as carefully as the situation will permit.
A.--External and Internal Validity
The validity of experimental results is usually evaluated on two dimensions:
external validity and internal validity.
Internal validity is the extent to which observed results are solely due to the
experimental manipulation.
External validity is the extent to which observed results are likely to hold
beyond the experimental setting.
An ideal experiment is one whose results will have high internal as well as
external validity, although there is usually a trade-off between these two
forms of validity.
Laboratory experiments generally have an advantage over field experiments
in terms of internal validity but not external validity.
Field experiments generally have an advantage over laboratory experiments
in terms of external validity but not internal validity.
Internal Validity

Internal validity is the extent to which observed results are solely due to the
experimental manipulation
Laboratory experiments are generally high on internal validity
Field experiments are generally low on internal validity
External Validity
External validity is the extent to which observed results are likely to hold
beyond the experimental setting
Laboratory experiments are generally low on external validity
Field experiments are generally high on external validity
Thus, field experiments often lack internal validity, while having better
external validity.
This suggests that the results have a better chance of being statistically
wrong, but they are more likely generalizable to other similar market
situations, if they are statistically correct.
Continuous research
A survey conducted on a regular and frequent basis among parallel samples
within the same population or a survey in which the interviews are spread
over a long period of time. .
In this way, a picture of market trends can be built up.
This type of longitudinal research is often funded on a syndicated basis.
Syndicated research usually involves an independent research company
collecting data and supplying it simultaneously to a number of clients.

Consumer Panels

Same
questions

Same
people

Different
people

True panel

Cohort panel

Different
questions

Omnibus
panel

Crosssectional
survey

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B. Method of collecting secondary data

Secondary data is data which has been collected by individuals or agencies
for purposes other than those of our particular research study.
Uses of Secondary Data
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

A Classification of Secondary Data

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Sources of information
Secondary sources of information may be divided into two categories:
internal sources and external sources.
Internal sources of secondary information
Sales data: All organizations collect information in the course of their
everyday operations. Orders are received and delivered, costs are recorded,
sales personnel submit visit reports, invoices are sent out, and returned
goods are recorded and so on. Much of this information is of potential use in
marketing research but a surprising amount of it is actually used .
For example, consider how much information can be obtained from sales
orders and invoices:
Sales by territory
Sales by customer type
Prices and discounts
Average size of order by customer, customer type, geographical area
Average sales by sales person and
Sales by pack size and pack type, etc.
This type of data is useful for identifying an organizations most profitable
product and customers. It can also serve to track trends within the
enterprise's existing customer group.
Financial data:
An organization has a great deal of data within its files on the cost of
producing, storing, transporting and marketing each of its products and
product lines.
Such data has many uses in marketing research including allowing
measurement of the efficiency of marketing operations.
Transport data:
Companies that keep good records relating to their transport operations are
well placed to establish which are the most profitable routes, and loads, as
well as the most cost effective routing patterns.
Storage data:

The rate of stockturn, stockhandling costs, assessing the efficiency of certain

marketing operations and the efficiency of the marketing system as a whole.
External sources of secondary information
The marketing researcher who seriously seeks after useful secondary data is
more often surprised by its abundance than by its scarcity.
The main sources of external secondary sources are (1) government (federal,
state and local) (2) trade associations (3) commercial services (4) national
and international institutions.
Government statistics: These may include all or some of the following:
Population censuses Social surveys, family expenditure surveys
Import/export statistics Production statistics Agricultural statistics. Trade
associations
Trade associations: Trade associations differ widely in the extent of their
data collection and information dissemination activities. However, it is worth
checking with them to determine what they do publish. At the very least one
would normally expect that they would produce a trade directory and,
perhaps, a yearbook.
Commercial services: Commercial services: Published market research
reports and other publications are available from a wide range of
organizations which charge for their information.
Typically, marketing people are interested in media statistics and consumer
information which has been obtained from large scale consumer or farmer
panels.
The commercial organisation funds the collection of the data, which is wide
ranging in its content, and hopes to make its money from selling this data to
interested parties.
National and international institutions: Bank economic reviews,
university research reports, journals and articles are all useful sources to
contact. International agencies such as World Bank, IMF, IFAD, UNDP, ITC, FAO
and ILO produce a plethora of secondary data which can prove extremely
useful to the marketing researcher.
Step: 4. Determine the measurement techniques
There are three basic measurement Technique
A. Questionnaires
B. Attitude scales
C. Projective techniques
A. Questionnaires
A Questionnaire is simply a formalized schedule to obtain and record
specified and relevant information with tolerable accuracy and completeness.
In other words, it directs the questioning process and promotes clear and
proper recording.
Questionnaires are frequently used in quantitative marketing research.
They are a valuable method of collecting a wide range of information from a
large number of respondents.
Good questionnaire construction is critical to the success of a survey.

Inappropriate questions, incorrect ordering of questions, incorrect scaling, or

bad questionnaire format can make the survey valueless.
A useful method for checking a questionnaire for problems is to pretest it.
This usually involves giving it to a small sample of respondents, then
interviewing the respondents to get their impressions and to confirm that the
questions accurately captured their opinions.
The Major Decisions in Questionnaire Design
1. What should be asked?
2. How should each question be phrased?
3. In what sequence should the questions be arranged?
4. What questionnaire layout will best serve the research objectives?
5. How should the questionnaire be pretested? Does the questionnaire need
to be revised?
Phrasing Questions
Open-Ended Questions
Fixed-Alternative Questions or close-ended
Classifying Surveys by Degree of Structure and Degree of Disguise

Example: Example:
Typical descriptive
Survey with
survey
open-ended
Example: Example:
with straight-forward,
questions to
structured
discover new
questions answers or focus group interview
Survey interview
Projection
to measure
techniques used
brand As image
mostlyversus
for exploratory research
competitive brands images or
brand recall (unaided recall)

1.
2.
3.
4.
5.

Guidelines for Devising a Good Questionnaire

1. Write specific questions only after you have thoroughly thought through
your research questions. Write the research questions down.
2. When you are working on the questionnaire, constantly refer to your
research questions.
3. For each question you write, explain how the information obtained from
responses will help in answering your research questions.
Preliminary Considerations for Questionnaire Construction
1. Exactly what information is required?
2. Exactly who are appropriate target respondents?
3. What data collection method will be used to survey respondents?
Principles of Developing Questions
Be clear and precise.
Response choices should not overlap.
Use natural and familiar language.
Do not use words or phrases that show bias.
Avoid double-barreled questions.

6.
7.

1.
2.
3.
4.
5.

State explicit alternatives.

Questions should meet criteria of validity and reliability.
Which questionnaire design to use in case study:
In exploratory research design, flexible and open ended questionnaire is
used.
In descriptive and causal research design close ended and structured
questionnaire is used.
Question order
Questions should be ordered so as to seem logical to the respondent
First questions should be relevant and easy
Questions are effectively ordered from most salient to least salient
Demographic questions should not be covered at the beginning
Potentially objectionable questions are placed near the end
B. ATTITUDE MEASUREMENT TECHNIQUES

Attitude Measurement

3.

Majority of questions in marketing research are designed to measure

attitudes
Attitudes include
Information possessed
Feelings of like and/or dislike
Intentions to behave
Management wants to understand and influence behavior
Reasons for Measuring Attitudes
Attitudes lead to behavior
More feasible to ask questions on attitudes than to observe and interpret
behavior
Large capacity for diagnosis and explanation

Attitude Research

Attitudes directly affect purchase decisions and these in turn, directly affect
attitudes.

1.
2.
3.
4.

1.
2.

What Are Attitudes?

Mental states used by individuals to structure the way they perceive their
environment and guide the way they respond to it
Components of Attitude
1. Cognitive or Knowledge Component
2. Liking or Affective Component
3. Intentions or Actions Components

Three Components of Attitude

The relationship of beliefs to attitudes

Beliefs are translated into attitudes through values
BELIEF: Lawyers overcharge their clients
VALUE: Fairness
ATTITUDE: I dont like lawyers
Cognitive structure

Cognitive structure

Cognitive structure

Cognitive structure

Measurement and Scaling

Measurement :Standardized process of assigning numbers or other symbols
to certain characteristics of objects of interests according to pre-specified
rules
Characteristics for Standardization
One-to-one correspondence between the symbol and the characteristic in the
object that is being measured
Rules for assignment should be invariant over time and the objects being
measured
Scaling
:Process of creating a continuum on which objects are located
according to the amount of the measured characteristic that the object
possesses
Measurement:

Information content
increases

Attitude measurement is commonly referred to as scaling.

Structured techniques can provide a more objective measurement system,
one that is more comparable to a scale or yardstick. The term scaling has
been applied to the efforts to measure attitudes objectively, and a number of
useful scales have been developed.
Scales of Measurement
Scales of measurement include:
1. Nominal
2. Ordinal
3. Interval
4. Ratio
The scale determines the amount of information contained in the data.
The scale indicates the data summarization and statistical analyses that are
most appropriate.
Various scaling method
1. Nominal scale
A set of data is said to be nominal if the values / observations belonging to it
can be assigned a code in the form of a number where the numbers are
simply labels.
You can count but not order or measure nominal data.
For example, in a data set males could be coded as 0, females as 1; marital
status of an individual could be coded as Y if married, N if single.
2. Ordinal Scale:
They are the simplest attitude measuring scales used in marketing research.
They serve to rank respondents according to some characteristics such as
favorability to a certain brand, or to rank items such as brands in order of
consumer preference.
They do not measure the degree of favorability of the different rankings.
All the scale tells is that the individual or item has more, less, or the same
amount of the characteristic being measured as some other time.
They are the most widely used type of scales in marketing research.
A set of data is said to be ordinal if the values / observations belonging to it
can be ranked (put in order) or have a rating scale attached. You can count
and order, but not measure, ordinal data.
A rating of 5 indicates more enjoyment than a rating of 4, for example, so
such data are ordinal.

However, the distinction between neighboring points on the scale is not

necessarily always the same.
3. Interval Scales
They separate individuals or items by rank order but measure the distance
between rank positions in equal units.
Such a scale permits the researcher to say that the position 4 is above
position 3 on the scale, and also the distance from position 5 to 4 is same as
from 4 to 3.
Such a scale however does not permit conclusions that position 6 is twice as
strong as position 3 because no zero position has been established.
An interval scale is a scale of measurement where the distance between any
two adjacent units of measurement (or 'intervals') is the same but the zero
point is arbitrary. Scores on an interval scale can be added and subtracted
but cannot be meaningfully multiplied or divided.
For example, the time interval between the starts of years 1981 and 1982 is
the same as that between 1983 and 1984, namely 365 days.
The zero point, year 1 AD, is arbitrary; time did not begin then. Other
examples of interval scales include the heights of tides, and the
measurement of longitude.
4. Ratio Scales
If one measures the distance between two points as four feet and between
two other points as two feet, it is possible say that one distance is twice that
of the other because each distance is measured from an absolute zero.
A scale that permits such measurements is called ratio scale.
This is the only type of scale that permits us to make comparisons of absolute
magnitude. For example, we can say that an annual income of $ 80,000 is
two times as large as an income of $ 40,000.
Various scaling method
1. Simple Attitude Scaling
In its most basic form, attitude scaling requires that an individual agree with
a statement or respond to a single question. This type of self-rating scale
merely classifies respondents into one of two categories;
Simplified Scaling Example
THE PRESIDENT SHOULD RUN FOR RE-ELECTION _______ AGREE
______
DISAGREE
2. Category Scales
A category scale is a more sensitive measure than a scale having only two
response categories - it provides more information.
Questions working is an extremely important factor in the usefulness of
these scales.
Example of Category Scale
How important were the following in your decision to visit Kashmir (check one
for each item)
VERY SOMEWHAT
NOT TOO
IMPORTANT
IMPORTANT
IMPORTANT
CLIMATE
___________ ___________ ___________
COST OF TRAVEL ___________ ___________ ___________

FAMILY ORIENTED ___________ ___________ ___________

EDUCATIONAL/
HISTORICAL ASPECTS _________ ___________ ___________
FAMILIARITY WITH
AREA ___________ ___________ ___________
3. Method of Summated Ratings: The Likert Scale
Likert Scaling - Respondents are asked to indicate the amount of agreement
or disagreement (from strongly agree to strongly disagree) on a five-point
scale. The same format is used for multiple questions.
It was developed Rensis Likert. Here the respondents are asked to indicate a
degree of agreement and disagreement with each of a series of statement.
Each scale item has 5 response categories ranging from strongly agree and
strongly disagree.
Likert Scale for Measuring Attitudes Toward Tennis
It is more fun to play a tough, competitive tennis match than to play an easy
one.
___Strongly Agree
___Agree
___Not Sure
___Disagree
___Strongly Disagree
There is really no such thing as a tennis stroke that cannot be mastered.
___Strongly Agree
___Agree
___Not Sure
___Disagree
___Strongly Disagree
Playing tennis is a great way to exercise.
___Strongly Agree
___Agree
___Not Sure
___Disagree
___Strongly Disagree
4. Semantic differential scaling
Respondents are asked to rate on a 7 point scale an item on various
attributes. Each attribute requires a scale with bipolar terminal labels. Bipolar
adjectives, such as good and bad, anchor both ends (and poles) of the
scale.
Begins by determining the concept to be rated.
Then select dichotomous pairs of words or phrases that could be used to
describe the concept
Respondents then rate the concept on a scale
Finally, compute the mean of these responses for each pair of adjectives and
plotted as a profile or image
Service is discourteous 1234567
Service is courteous
Location is convenient 1234567
Location is inconvenient
Hours are inconvenient
1234567
Hours are convenient

Loan interest rates 1234567

Loan interest rates
are high
are low
A weight is assigned to each position on the rating scale. Traditionally, scores
are 7, 6, 5, 4, 3, 2, 1, or +3, +2, +1, 0, -1, -2, -3.
Semantic Differential Scales for Measuring Attitudes Toward Tennis
Exciting
___ : ___ : ___ : ___ : ___ : ___ : ___ : Calm
Interesting ___ : ___ : ___ : ___ : ___ : ___ : ___ : Dull
Simple
___ : ___ : ___ : ___ : ___ : ___ : ___ Complex
Passive
___ : ___ : ___ : ___ : ___ : ___ : ___ Active
5. Stapel scaling
Stapel scaling - This is a unipolar ten-point rating scale or 6 point rating
scale. It ranges from +5 to -5 and has no neutral zero point .
Stapels Scale
It was developed by Jan Stapel. This scale has some distinctive features:Each item has only one word/phrase indicating the dimension it represents.
Each item has ten response categories.
Each item has an even number of categories.
The response categories have numerical labels but no verbal labels.
For example, in the following items, suppose for quality of ice cream, we ask
respondents to rank from +5 to -5. Select a plus number for words which best
describe the ice cream accurately. Select a minus number for words you think
do not describe the ice cream quality accurately. Thus, we can select any
number from +5,for words we think are very accurate, to -5,for words we
think are very inaccurate. This scale is usually presented vertically.
+5
+4
+3
+2
+1
High Quality
-1
-2
-3
-4
-5
This is a unipolar rating scale.
Stapel Scale
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
+4

+5
+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.
Stapel Scales
Modern versions of the Stapel scale place a single adjective as a substitute
for the semantic differential when it is difficult to create pairs of bipolar
adjectives.
The advantage and disadvantages of a Stapel scale, as well as the results,
are very similar to those for a semantic differential. However, the Stapel
scale tends to be easier to conduct and administer .
A Stapel Scale for Measuring a Stores Image
Department Store Name
+3
+2
+1
Wide Selection
-1
-2
-3
6. Thurstone Scale
First step:
Generate a large set of candidate statements (e.g., 80 -- 100) statements
that describe specific attitudes:
e.g. statements that describe specific attitudes that people might have
towards persons with AIDS.
The procedure is as follows:
Collect a large number of statements (perhaps as may as several hundred)
related to the attitude in question
Have a number of judges (perhaps 20 or more) sort the statements
independently into 11 piles that vary from the most favorable statement to
neutral statements to most unfavorable statements.
Study the frequency distribution of ratings for each statement and eliminate
those statements that the different judges have given widely scattered
ratings that are in a number of different piles
Determine the scale value of each of the remaining statements that is, the
number of the pile in pile in which the median of the distribution falls
Select one of the two statements from each of the 11 piles for the final scale.
Those statements with the narrowest range of rating are preferred as the
most reliable.
people get AIDS by engaging in immoral behavior

you can get AIDS from toilet seats

AIDS is the wrath of God
anybody with AIDS is either gay or a junkie
AIDS is an epidemic that affects us all
people with AIDS are bad
people with AIDS are real people
AIDS is a cure, not a disease
you can get AIDS from heterosexual sex
people with AIDS are like my parents
Second step
The next step is to have your participants (i.e., judges) rate each statement
on a 1-to-11 scale in terms of how much each statement indicates a
favorable attitude towards people with AIDS.

Mean or median scores are calculated for each item

Select statements evenly spread across the scale.
7. Paired Comparisons
Description - Paired comparison scales ask a respondent to pick one of two
objects from a set based upon a given criterion
Example - Which brand do you prefer?
___ Coca-Cola
___ Pepsi
___ Dr. Pepper
___ Pepsi
___ Coca-Cola
___ Seven-Up
___ Dr. Pepper
___ Seven-Up
8. Graphic Rating Scales
A graphic rating scale presents respondents with a graphic continuum.
Graphic Rating Scale Stressing Pictorial Visual Communications

3
2
1
Very

Very
Good

Poor

9. Monadic Rating Scale

A Monadic Rating Scale asks about a single concept
Now that youve had your automobile for about 1 year, please tell us how
satisfied you are with its engine power and pickup.
Completely Very
Fairly Well Somewhat Very
Satisfied
Satisfied
Satisfied
Dissatisfied Dissatisfied
10. A Comparative Rating Scale
A Comparative Rating Scale asks respondents to rate a concept by comparing
it with a benchmark

Please indicate how the amount of authority in your present position

compares with the amount of authority that would be ideal for this position.
TOO MUCH
ABOUT RIGHT
TOO LITTLE
11. An Unbalanced Scale
An Unbalanced Scale has more responses distributed at one end of the scale
How satisfied are you with the bookstore in the Student Union?
Neither Satisfied Quite
Very
Satisfied
nor Dissatisfied
Satisfied
Dissatisfied
Figure 10.4 Balanced and Unbalanced Scales

Unbalanced
Scale

12. Constant sum scaling

The constant sum scale requires the respondent to divide a constant sum,
generally 10 or 100, among two or more objects or attributes on order to
reflect the respondents relative preference for each object, the importance of
the attribute, or the degree to which an object contains each attribute.
A constant sum measure of the importance of the same attributes could be
obtained from the following procedure:
Divide 100 points among the characteristics listed so that the division will
reflect how important each characteristic is to your selection of a new
automobile.
Price
____
Economy
____
Dependability
____
Safety
____
Comfort
____
Style
____
Total 100
13. Bogardus social distance scaling
Measures the degree to which a person is willing to associate with a class or
type of people. It asks how willing the respondent is to make various
associations. The results are reduced to a single score on a scale. There are
also non-comparative versions of this scale.
14. Q-Sort scaling
Up to 140 items are sorted into groups based a rank-order procedure.
15. Guttman scaling
A Guttman scale presents a number of items to which the person is requested
to agree or not agree. This is typically done in a 'Yes/No' dichotomous format.

1.
2.
3.
4.

1.
2.
3.

1.
2.
3.
4.

1.
2.
3.

1.
2.
3.
4.

1.
2.
3.

Questions in a Guttman scale gradually increase in specificity. The intent of

the scale is that the person will agree with all statements up to a point and
then will stop agreeing.
The scale may be used to determine how extreme a view is, with successive
statements showing increasingly extremist positions.
If needed, the escalation can be concealed by using intermediate questions.

Place a
check-mark
against all
statements`
with which
Projective
Techniques: An unstructured, indirect form of questioning that
you
agree
encourages respondents to project their underlying motivations, beliefs,

attitudes or feelings regarding the issues of concern.

What is a Projective Technique?
Psychological technique to get answers without asking a direct question
Participants project their unconscious beliefs into other people or objects
Reduces threat of personal vulnerability
Consists of a stimulus and a response
Associations
Uncovers a brands identity or product attributes
Word association for a product/brand
Draw brands as people
Construction
Process allows participant to construct meaning
Participant constructs a story or picture from a concept
Collages are developed on a topic
Bubble drawings or cartoon tests ask participant to construct a dialog
Completion
For insight into participants need-value system.
Sentences, stories or conversations are completed
I.e. When I think of beer..
Expressive
For situations when participants cannot describe their actions but can
demonstrate them.
Participants role play or act out a story
Themes are developed based on participants personal interpretations of
pictures
House where brand lives (Bud vs Guiness)
Choice Ordering
Useful for rank ordering characteristics associated with a brand, product or
service
Participants lists benefits from most to least important
Used with probing techniques to gather insight into consumer benefit choices

4. In projective techniques, respondents are asked to interpret the behavior of

others.
5. In interpreting the behavior of others, respondents indirectly project their own
motivations, beliefs, attitudes, or feelings into the situation.
Projective Techniques:
1. Free Association
a. Free word association
b. Successive word association
2. Completion technique
a. Sentence completion
b. Story completion
3. Construction technique:
a. Picture response
b. Cartoon technique
c. Personification
d. Fantasy scenario
e. Psycho drawing
4. Expressive Technique
a. Role playing
b. 3rd person technique
a. Free Association:
The word- association techniques asks respondents to give the first word or
phrase that comes to mind after the researcher presents a word or phrase.
i. Free word association:
Ask respondents to say what comes into their head when thinking about a
certain topic or word.
Then follow up with probes and amplifications. Initial reactions tend to be
pragmatic but later ones show paths to emotional ideas Useful for relaxing
and warming up a group
Word Association
The 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
reasonable period of time.
b. Successive word association: The particular association technique
adopted was successive word association, where the respondent is asked to
list all words or thoughts that occur after being exposed to the given cue.
2. Completion Techniques
The simplest completion test involves giving respondent incomplete and
ambiguous sentences, which is to be completed with a phrase.

a. 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 Bigbazar is ______________________
A person who receives a gift certificate from Raymond's would be
_________________
Shoppers stop 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.

Completion Techniques
b. In story completion, respondents are given part of a story and are asked
to complete it 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.
3. Construction Techniques
a. Picture Response: 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.
b. Cartoon tests: Cartoon tests - pictures of cartoon characters are shown
in a specific situation and with dialogue balloons - one of the dialogue
balloons is empty and the respondent is asked to fill it in

Figure 5.4

c. Personification
A simple and flexible projective technique in which respondents are asked to
imagine something inanimate (often a brand) as if it were a person.
They are asked to describe this person's lifestyle, appearance and so on, and
may be asked to imagine where and how they might live, go on holiday, what
kind of work they might do, and so on.
As with all projective material, this is most useful if fed back into the
discussion, respondents being invited to themselves consider what they have
'said' about the brand in this way.

1.
2.
3.

1.
2.
3.
4.
5.

A common variant of this task is to ask respondents to imagine the brand as

an animal, or as a car, or as some other object, and again to explore the
parallels they are thus drawing.
d. Fantasy scenario
Fantasy Role-playing Games require participants to enact individual or team
roles, often within a science-fiction or fantasy scenario.
These role-play activities focus on skills and concepts related to such topics
as leadership, teamwork, and planning. Debriefing after the role-play draws
parallels between the fictional fantasy and workplace reality .
e. Psycho drawing
Example of a projective technique in which participants are asked to draw, in
abstract form, something relevant to the research project. So they might for
example draw a specific brand, or an experience (such as a having a
headache). These drawings are usually described and interpreted by
respondents themselves as part of the subsequent discussion.
Uses colours, shapes and symbols to express how they feel about brands
(Ralph Lauren)
Can be analysed for symbolism
Can be used as catalysts for probing when respondents are asked to
elaborate on what they were trying to visualise
Expressive Techniques: 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.
a. Role playing: In role playing - respondents are asked to play the role of
someone else - researchers assume that subjects will project their own
feelings or behaviors into the role
b. Third-person technique: a verbal or visual representation of an
individual and his/her situation is presented to the respondent - the
respondent is asked to relate the attitudes or feelings of that person researchers assume that talking in the third person will minimize the social
pressure to give standard or politically correct responses. This third person
may be a friend, neighbor, colleague, or a typical person.
Advantages of Projective Techniques
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.
Disadvantages of Projective Techniques
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.

6. May require respondents to engage in unusual behavior.

Guidelines for Using Projective Techniques
1. Projective techniques should be used because the required information
cannot be accurately obtained by direct methods.
2. Projective techniques should be used for exploratory research to gain initial
insights and understanding.
3. Given their complexity, projective techniques should not be used naively.
Step: Five: Research Design/ Sampling
A research design is a framework or blueprint for conducting the marketing
research project.
It details the procedures necessary for obtaining the information needed to
structure and/or solve marketing research problems.
Research design means to prepare detailed plan and procedures for the
conduct of the research project.
It is like preparing a master plan/blue print for the conduct of formal
investigation.
It is the basic plan that guides researcher in the execution of the research
project undertaken.
It is like road map which enables the researcher to conduct various activities
for the completion of research project.
In short, research design is a systematic planning, organizing and executing a
research project within specified time limit and resource allocation.
Research design tells the type of data to be collected, the sources of data and
the procedures to be followed in data collection.
Research design provides suitable framework that guides the collection and
analysis of data.
Definitions of Research Design:
1. According to David J Luck and Ronald S Rubin, A research design is the
determination and statement of the general research approach or strategy
adopted for the particular project.
It is the heart of planning. If the design adheres to the research objective, it
will ensure that the clients needs will be served.
2.According to Kerlinger, Research in the plan, structure and strategy of
investigation conceived so as to obtain answers to research questions and to
control variance.
3.According to Green and Tull, A research design is the specification of
methods and procedures for acquiring the information needed.
It is the over-all operational pattern or framework of the project that
stipulates what information is to be collected from which source by what
procedures.

Importance/utility of research design

Research design is important as it prepares proper framework within which
the research work/activity will be actually carried out. Research design acts
as a blue print for the conduct of the whole.
Types of Research design:

1.
2.
3.
4.
5.

6.

On the basis of information to be collected, research designs can be classified

into the following three categories:
a) Exploratory research
b) Descriptive research
c) Casual research
Exploratory Research design:
1. It is used when the researcher wants to know general trend and acquire
qualitative information.
2. When only psychographic profile is needed.
3. New launch for the first time.
4. Multinational entering the country for the first time.
5. New concept/new idea been introduced for the first time.
Descriptive research design:
1. It used when researcher requires demographic profile of the respondent.
Here we require numbers, statistics, and quantitative data.
2. Brand extension
3. Marketing expansion within the country.
4. Pricing research, product research, branding research.
Causal research design:
1. Is used when researcher want to know the cause and effect relationship
between various variables. Here impact is studied.
2. Backward and forward integration
3. Diversification
4. Any kind of image studies, effect studies and backward studies.
Exploratory research:
It provides insights into, and an understanding of, the problem confronting
the researcher
OBJECTIVE :
Exploratory research is to explore or search through a problem or situation to
provide insights and understanding
EXPLORATORY RESEARCH DESIGN
Main purpose is identification of problems, more precise formulation of
problems, identifying the relevant variable and the formulation of new
alternative courses of action.
Main objective of exploratory RD is to find tune the broad problem into
specific problem statement and generate possible hypotheses.
Used for following purposes:
Formulate a problem or define a problem more precisely.
Identify alternative courses of action.
Develop hypotheses.
Isolate key variables and relationships for further examination.
Gain insights for developing an approach to the problem.
Establish priorities for further research
Methods used in Exploratory Research:
a. Key-Informant Technique
Conducting exploratory research by interviewing knowledgeable individuals is
sometimes called the key-informant technique.
It is also known as an expert-opinion survey or a lead-user survey.

An effective way to do exploratory research is to seek out and talk to

individuals with expertise in areas related to the situation being investigated.
The technique is necessarily a very subjective and flexible procedure with no
standard approach.
b. Focus Group Interviews
In a focus group interview, an objective discussion leader introduces a topic
to a group of respondents and directs their discussion of that topic in a
nonstructured and natural fashion. This is sometimes simply called a focus
group.
c. Analysis of Secondary Data
Examining appropriate secondary data is a fast and inexpensive way of
conducting exploratory research that can generate valuable insights.
Such insights, in turn, will provide a proper focus for conclusive research.
Sometimes the insights revealed by secondary-data analysis may even
eliminate the need for conclusive research.
d. Case Study Method
The case study method is an in-depth examination of a unit of interest. The
unit can be a customer, store, salesperson, firm, market area, website, and so
on.
By virtue of its insight-generating potential, the case study method is a useful
form of exploratory research. This method is suitable in a research setting in
which the company has a general research objective but is unsure of exactly
what it is looking for.
It involves collecting in-depth data on a variety of important dimensions or
factors for the unit of interest. Only the investigators time and imagination
limit the number and types of factors to be examined.
e. Observational Method
The observational method involves human or mechanical observation of what
people actually do or what events take place during a buying or consumption
situation.
In this method of data collection, researchers or mechanical/electronic
devices witness and record information as events occur or compile evidence
from past events.
It is useful to assess behavior such as use of products, frequency of store
visits, teens shopping with and without supervision, use of media, and time
spent on specific websites.
It is particularly useful in researching young children, a group that is typically
not amenable to many research techniques.
Descriptive research:
Descriptive research is undertaken when the researcher desires to know the
characteristics of certain groups such as age, sex, occupation, income or
education. The objective of descriptive research is to answer the who, what,
when, where and how of the subject understudy/investigation.
Descriptive research is normally factual and simple.

However, such studies can be complex, demanding scientific skill on the part
of researcher.
Descriptive studies are well structured. It tends to be rigid and its approach
cannot be changed often and again.
In Descriptive research, the researcher has to give adequate thought to
framing research questions and deciding the data to be collected and the
procedures to be used for this purpose.
Data collected may prove to be inadequate if the researcher is not careful in
the initial stages of data collection.
Descriptive research is designed to describe the present situation or the
features of a group or users of a product.
In marketing, such research is undertaken to know the characteristics of
certain groups or users of a product such as age, sex education, income etc.
Such research studies are based on secondary data or survey research.
Descriptive Research is to describe market characteristics or functions
Descriptive research is conducted for the following reasons:
1. Describing the characteristics of relevant groups, such as consumers,
salespeople, organizations, or market areas.
2. Estimating the percentage of units in a specified population exhibiting a
certain behavior.
3. Determining the perceptions of product characteristics.
4. Determining the degree to which marketing variables are associated.
5. Making specific predictions.
Descriptive Design requires clear specifications of :
1. WhoWho should be considered a patron of a particular department
store?
2. WhatWhat information should be obtained from the respondents?
3. WhenWhen should the information be obtained from the respondents?
4. WhereWhere should the respondents be contacted to obtain the
required information?
5. WhyWhy are we obtaining information from the respondents? Why is the
marketing research project being conducted?
6. WayIn what way are we going to obtain information from the
respondents?
Uses of Descriptive research:
1.Useful to collect demographic information of consumers/users of a product
or issue
2. Used/applied directly for marketing decision making.
3. Useful for finding out views and attitudes of customers or target group.
4. Can be used to make predictions about future marketing or social trends.
5. Discovers the relationship between certain variables.
Conducting Descriptive Research
Descriptive research is by far the more frequently used form of conclusive
research. Descriptive research studies are classified into two basic types:
cross-sectional studies and longitudinal studies.
A. Cross-Sectional Studies

Cross-sectional studies are one-time studies involving data collection at a

single period in time.
They provide a snapshot of a situation being researched.
Cross-sectional studies can also be used to obtain data pertaining to different
periods in time.
A cross-sectional study makes use of a cross-sectional sample or a group of
units (e.g., consumers, stores, organizations) selected specifically and solely
for the one-time data collection.
The sample is disbanded after the data are collected.
Several firms maintain omnibus panels as a source of samples for crosssectional studies. Such samples are composed of panel members who are
returned to the panel after participating in a cross-sectional study.
Within the domain of descriptive research the cross-sectional study is the
most popular method.
Cross-sectional studies account for the majority of formal research projects
involving primary-data collection.
B. Longitudinal Studies
Longitudinal studies are repeated-measurement studies that collect data over
several periods in time.
The primary purpose of longitudinal studies is to monitor changes over time.
A longitudinal study produces a motion picture (or a series of snapshots) of
a situation over time.
In general, longitudinal studies are more informative than cross-sectional
studies, just as motion pictures are more revealing than still pictures.
Longitudinal studies are also more expensive than cross-sectional studies.
C. True Panel Studies
A longitudinal study using the same sample of respondents will provide richer
information than one using a series of different samples.
The dynamics of changes between measurements can be captured only by
using the same panel of respondents.
Such a panel has been labeled a true panel to distinguish it from omnibus
panels used to generate different cross-sectional samples at various periods
in time
A true-panel study, compared with a longitudinal study using
different samples for the various measurements, is also capable of
generating more data directly pertaining to the research purpose,
for the following reasons:
A true panel is a captive sample of willing respondents who are likely to
tolerate extended interviews or fill out lengthy questionnaires.
Background data such as demographic and lifestyle data need not be
collected from panel respondents during each measurement. Therefore, for a
given interview or questionnaire length, more data of primary research
interest can be collected.
Cross-sectional and Longitudinal research
Descriptive research can be divided into the following two categories:
a) Cross-sectional
b) Longitudinal

It is a study involving a sample of elements from the population of interest at

a single point of time.
It is a study concerned with a sample of elements from a given population.
Such sample may deal with households, dealers, retail stores and other
entities.
Information / data on a number of characteristics are collected from the
sample elements.
Such data are analyzed for drawing conclusions.
Cross-sectional research studies include field studies and surveys.
Longitudinal studies:
Longitudinal studies are based on panel methods and panel data.
A panel is a sample is a sample of respondents who are interviewed not only
once but thereafter from time to time.
Here data to be collected relate to same variable but the measurements are
taken repeatedly.
eg. TRP
Casual Research/Design
Casual Research design is the third type of research design.
As the name indicates, casual design investigates the cause and effect
relationship between two or more variables.
This design measures the extent of relationship between the variables.
Casual Research designs attempt to specify the nature of functional
relationship between two or more variables.
Casual Research is useful to show the impact of one variable on the other. for
example price and market demand relationship or relationship between
market competition and sales performance.
Data for Casual Research can be collected through field survey with the help
of a questionnaire or by conducting laboratory experiments/controlled
experiments.
Casual Research design is based on reasoning. The designs for Casual
Research can be divided into three categories: a) Historical, (b) Survey and
(c) Experimental.
Sampling Designs And Sampling Procedures
Sample : Subset of a larger population
Population : Any Complete Group
- People
- Sales Territories
- Stores
Census: Investigation of all individual elements that make up a population.

Target Population
The population is defined in terms of:
a. element,
b. units,
c. extent and
d. time.
E.g.: Comic Book Reader?
Sampling frame
A sampling frame is a means of representing the elements of the population.
A sampling frame may be a telephone book, city directory, an employee
roster, a listing of all students attending a university, or a list of possible
phone numbers.
Maps also serve frequently as sampling frames.
A sample of areas within a city may be taken and another sample of
household then be taken within each area.
City blocks are sometimes sampled and all households on each sample block
are included.
A perfect sampling frame is one in which every element of the population is
represented once but only once.
One does not need a sampling frame to take a non-probability sample.
e.g. Sampling Frame
A list of elements from which the sample may be drawn
For example telephone book, map, or city directory .
Mailing Lists - Data Base Marketers
Sampling Units
The sampling unit is the basic unit containing the elements of the population
to be sampled. It may be the element itself or a unit in which the element is
contained.
For example, if one wanted a sample of males over 13 years of age, it might
be possible to sample them directly. In this case, the sampling unit would be
identical with the element.

However, it might be easier to select households as the sampling unit and

interview all males over 13 years of age in each household.
Here the sampling unit and the population element are not the same.
The unit for sampling for example, city block, company, or household is
selected. The sampling unit may contain one or several population elements.
Group selected for the sample:
Two Major Categories of Sampling
1. Probability Sampling: Known, nonzero probability for every element
2. Nonprobability Sampling: Probability of selecting any particular member is
unknown
Non-probability sampling: A non-probability sampling technique that
attempts to obtain a sample of convenient elements. The selection of
sampling units is left primarily to the interviewer.
Explanation:
This type of sampling is normally used to get basic information to take
elementary decisions.
Convenience samples are often used in exploratory situations when there is a
need to get only an approximation of the actual value quickly and
inexpensively.
Commonly used Convenience samples are associates and the man on the
street. Such samples are often used in the pre-test phase of the study, such
as pre-testing of a questionnaire.
Examples:
Use of students, religious groups, and members of social organizations,
Mall-intercept interviews without qualifying the respondents,
Department stores using charge account lists
Tear out questionnaire included in a magazines, and
People on the street interviews
Non-probability sampling techniques:
It relies on the personal judgment of the researcher rather than t he chance
to select sample elements.
The researcher can arbitrarily or consciously decide which element to include
in the sample.
Non-probability may yield good estimates of the population characteristic.
However they do not allow for objective evaluation of the precision of the
sample results.
Nonprobability Sampling:

1.
2.
3.
4.

Convenience
Judgment
Quota
Snowball

Convenience Sampling
Also called haphazard or accidental sampling
The sampling procedure of obtaining the people or units that are most
conveniently available
Judgment Sampling
Also called purposive sampling
An experienced individual selects the sample based on his or her judgment
about some appropriate characteristics required of the sample member
Quota Sampling

Ensures that the various subgroups in a population are represented on

pertinent sample characteristics
To the exact extent that the investigators desire
It should not be confused with stratified sampling.
Snowball Sampling
A variety of procedures
Initial respondents are selected by probability methods
Additional respondents are obtained from information provided by the initial
respondents
Since there is no way of determining the probability of selecting any
particular element for inclusion in the sample, the estimates obtained are not
statistically projectable to the population.
Probability sampling techniques:
Sampling units are selected by chance.
It is possible to pre-specify every potential sample of a given size that could
be drawn from the population, as well as the probability of selecting each
sample.
Probability sampling
Probability sampling techniques vary in terms of sampling efficiency.
Sampling efficiency is a concept that reflects a trade-offs between sampling
cost and precision.
Precision refers to the level of uncertainty about the characteristic being
measured. The greater the precision, the greater the cost and most studies
require trade-off.
Every potential sample need not have the same probability of selection, but it
is possible to specify the probability of selecting any particular sample of a
given size.
This requires not only a precise definition of the target population, but also a
general specification of the sampling frame. Because sample elements are
selected by chance.
It is possible to determine the precision of the sample estimated of the
characteristics of interest.
Confidence intervals, which contain the true population value with a given
level of certainty, can be calculated.
This permits the researcher to make inferences of projections about the
target population from which the sample was drawn.
Probability Sampling
1. Simple Random Sample
2. Systematic Sample
3. Stratified Sample
4. Cluster Sample
5. Multistage Area Sample
What sampling method to use in the case study:
Nonprobability: It is used with exploratory research design.
Probability: It is used with descriptive and causal research design.
1.Simple Random Sampling: A sampling procedure that ensures that
each element in the population will have an equal chance of being included in
the sample.
Simple random sampling (SRS):

A probability sampling technique in which each element in the population has

a known and equal probability of selection is known as simple random
sampling (SRS).
Every element is selected independently of every other element and the
sample is drawn by a random procedure from a sampling frame.
2.Systematic sampling : A probability sampling technique in which the
sample is chosen by selecting a random starting point and then picking every
nth element in succession from the sampling frame.
Explanation
In systematic sampling, the sample is chosen by selecting a random starting
point and then picking every nth element in succession from the sampling
frame.
The sampling interval, n, is determined by dividing the population size N by
the sample size n and rounding to the nearest integer.
Example
Suppose there are 100,000 elements in the population and a sample of 1000
desired. In this case the sampling interval, n, is 100. A random number
between 1 to 100 is selected. If say number 23 is selected, the sample will
then consists of elements 23, 123, 223, 323, 423, 523, and so on.
Systematic Sampling
A simple process
Every nth name from the list will be drawn
3. Stratified Random Sampling: Definition: A probability sampling
technique that uses a two-step process to partition the population into
subpopulations, or strata is known as stratified random sampling. Elements
are selected from each stratum by a random procedure.
Stratified Random Sampling emerges from the word Stratum.
A Stratum in a population is a segment of that population having one or more
characteristics. E.g. people in the age strata of 35-40, people in the income
strata to Rs. 20000 p.m. etc
Stratified Sampling involves treating each stratum as a separate
subpopulation for sampling purposes, and from each stratum sampling units
would be drawn randomly.
The reasons for conducting Stratified Random Sampling are:
To reduce sampling error by ensuring representation from the population.
The required sample size for the same level of sampling error will usually be
smaller.
As compared to other methods of sampling, in Stratified Random Sampling
representativeness to a certain degree is forced .
The greater degree to which there is similarity within stratum, smaller is the
sample size required to provide information about that stratum.
Thus the more homogeneous each stratum is with respect to the variable of
interest the smaller is the sample required.
Example: If the head of the household age strata (18-34, 35-49, 50+) are of
interest in a study on household spending habits on household furnishings,
then each of these groups would be taken separately for sampling purposes.
That is, the total population could be divided into age groups and a separate
sample is drawn from each group.

Stratified Sampling
Probability sample
Subsamples are drawn within different strata
Each stratum is more or less equal on some characteristic
Do not confuse with quota sample
Total Voters: 10,000
Total Voters: 10,000
Sample size: 1000
Sample size: 1000
% of Muslim
15------% of Muslim
15-------150
% of Hindus
55-----% of Hindus
55------550
% of Jains
07----% of Jains
07----- 70
% of Sikhs
02-----% of Sikhs
02------20
% of SC/ST
21----% of SC/ST
21-----210
Total
100---Total
100----1000
4. Cluster Sampling: Definition: The target population is divided into
mutually exclusive and collectively exhaustive subpopulation called clusters.
Then a random sample of clusters is selected based on probability sampling
techniques such as simple random sampling.
Explanation
If all the elements in each selected cluster are included in the sample, the
procedure is called one stage cluster sampling.
If a sample of elements is drawn probabilistically from each selected cluster,
the procedure is called two-stage cluster sampling.
The key distinction between cluster sampling and stratified sampling is that
in cluster sampling only a sample of subpopulations (clusters) is chosen,
whereas in stratified sampling all the subpopulations are selected.
The objective of the cluster sampling is to increase the sampling efficiency by
decreasing costs.
Example: If the study requires studying the households in the city then in
cluster sampling the whole city is divided into Blocks and to take each
household on each block selected. Thus to get a representative whole of the
universe.
Cluster Sampling
The purpose of cluster sampling is to sample economically while retaining the
characteristics of a probability sample. E.g. Test Marketing
The primary sampling unit is no longer the individual element in the
population
The primary sampling unit is a larger cluster of elements located in proximity
to one another
Examples of Clusters
Indian adult population

States
districts
Metropolitan Statistical Area
Census tracts
Blocks
Households

College seniors
Manufacturing firms

Colleges
Districts
Metropolitan Statistical Areas
Localities
Plants

Airline travelers

Airports
Planes

Sports fans

Football stadiums
Basketball arenas
Baseball parks

Single Stage V/s Multistage Sampling

Explanation: The number of stages involved in the sampling method is
partially a function of the number of sampling frame available.
If a perfect frame were always available complete with all the associated
information one might want for purposes of clustering and / or stratifying,
there would be far fewer multiple samples taken than there are now.
In practice, it is not uncommon to have a first stage area sample of, say,
census tracts, followed by a second stage sample of blocks, and completed
with a systematic sample of households within each block.
These stages would not be necessary if a complete listing of households were
available.
Step: Six: Data Processing and Analysis
DATA PROCESSING : Data processings total task in carrying out the
analytical program is to convert crude fragments of observation and
responses into orderly statistics for interpretation.
There are three stages necessary in either manual or computer processing:
a. editing
b. classifying and
c. coding.
An additional stage with computers is card punching.
DATA ANALYSIS
After the data have been collected, the researcher turns to the task of
analyzing them.
The analysis of data requires a number of closely related operations such as
establishment of categories, the application of these categories to raw data
through coding, tabulation and then drawing statistical inferences.
The unwieldy data should necessarily be condensed into as few manageable
groups and tables for further analysis.
Thus, researcher should classify the raw data into some purposeful and
usable categories.
Analysis work after tabulation is generally based on the computation of
various percentages, coefficients etc., by applying various well-defined
statistical formulae.

Step: Seven: Determine Time and cost

Basic Questions - Overall Evaluation
How much will the study cost?
Is the time frame acceptable?
Is outside help needed?
Will this research design attain the stated research objectives?
When should the research be scheduled to begin?
Step: Eight: Define the ethics of research
Ethics: Moral principles or values generally governing the conduct of an
individual or group.
Research Ethics : Guidelines researchers follow to protect the rights of
humans who participate in studies. Some common guidelines include:
1. Protection from harm
2. Informed consent
3. Confidentiality
4. Knowledge of results
5. Deception, if used, must be explained fully
Abuse of respondents
1. Most common problem: lengthy interviews
2. Refusal rate now averages 60 percent.
3. Selling unnecessary research
4. Violating client confidentiality
Client Ethics
1. Requesting when a supplier has been predetermined
2. Obtaining free advice and methodology via bid requests
3. Making false promises
4. Unauthorized request for proposals
Step: Nine: Prepare the research report
RESEARCH REPORT
Finally, the researcher has to prepare the report of what has been done by
him. Writing of report must done with great care keeping in view the
following:
The layout of the report should be as follows:
FORMAT OF RESEARCH REPORTS
1. Title Page
2. Acknowledgments (if any)
3. Introduction
a. Statement of the Problem
b. Significance of the Problem (and historical background)
c. Purpose
d. Statement of Hypothesis
4. Review of Related Literature (and analysis of previous research)
5. Description of Research Design and Procedures Used
6. Sources of Data & Methods and Instruments of Data Gathering
7. Sampling Procedures
8. Analysis of Data
9. Summary and Conclusions
10.Major Findings (reject or fail to reject Ho)
11.Conclusions
12.Recommendations for Further Investigation

1.
2.
3.
4.
5.

13.Reference Section
14.End Notes (if in that format of citation)
15.Bibliography or Literature Cited
16.Appendix
Marketing and advertising research
1.Product Research
Product has utility (need satisfying capacity) and is useful for the satisfaction
of human wants.

In brief product is a set of tangible and intangible attributes that facilitates

consumer satisfaction.
Definition of Product Research: marketing research that yields
information about desired characteristics of the product or service
NEED OF PRODUCT RESEARCH:
1. Product research acts as an insurance against risk of obsolescence of existing
products of the company.
2. In addition, product research is needed in order to develop new products
which will have good demand over a long period.
In short, the following points suggest/justify the need of product
research:
(1) To assist in the setting up of objectives towards which the research and
development department will have to work in order to develop and introduce
new features in the market.
(2) To pinpoint the needs and wants of consumers which the new features
are expected to satisfy.
(3) To estimate the sales potential of the new features
(4) To verify the benefits of the new features to the consumers.
WHEN PRODUCT RESEARCH IS NECESSARY?
(1) Introduction of new product /modifications in the existing product: Product
research is necessary when company develops a new-product or desires to
introduce an existing product with suitable modifications as per the
requirements of consumers.
(2) Introduction of new product by competitor: Product research is necessary
when a competitor introduces a new product or improved version of the
existing one in the market.
METHODS OF CONDUCTING PRODUCT RESEARCH:
There are three methods used for the conduct of product research as
explained below:
(1) Staggered Comparison Test:
In the staggered comparison test, the respondent is first given one
product and is asked to give his opinion about the same. Later on, he is asked
to try a second product and give his opinion on that product.
This test is very natural in character as in actual life also a consumer uses
one product and forms his opinion.
Thereafter, he may shift to another product if he is not satisfied with the first
one. However, he will certainly not like to use two identical products at one
and the same time.
Staggered comparison test is useful for knowing the views of respondents
accurately. However, this method is rather costly.

Secondly, consumers views may be bias as they may not be fully away from
the influence of the product used previously.
(2) Paired Comparison Test:
In the paired comparison test, consumers are offered two products for giving
their opinion.
The products are outwardly identical but they differ in some way or ways
which ordinary consumers cannot readily identify.
This test is useful for judging the attitudes of consumers.
Such test is also useful for brand reference studies, pre-testing of
advertisements and multi-dimensional scaling.
Paired comparison test can be used to compare an experimental product with
an existing product or for evaluating several existing products with slight
differences.
Here, two different products are compared by the consumer.
If more than two products are to be evaluated, the products are paired off for
the purpose of study.
Paired comparison method of product testing has certain limitations.
Here, the respondent participating in a test may behave differently from the
way he normally would.
If these tests are repeated in order to verify results, it becomes visible that
there is considerable instability among the respondents.
However, this test is useful in identifying those individualswho have no real
preference for any of the products actually tested
(3) Non-directive Method (Test)
In the non-directive method, information is collected from the respondents
without giving them any idea before hand as regards the research work
undertaken.
For example, a housewife is given a pair of identically wrapped products and
is asked to use them.
She is given no reason to believe that the products are different.
In addition, she is also not given any idea that she will be interviewed
subsequently. In brief, an impression should be created in her mind that free
samples are provided to her for use.
In due course i.e. after about two weeks duration, the respondent
(housewife) is called on again and asked whether she has used both the
products.
In case of actual use of the products, a brief interview is taken which will give
adequate information about product differences.
Direct questions may be asked to the respondent to collect adequate
information, if she fails to give information in the conversation.
This method is better than the previous two methods as it represents real
market situation. The information supplied can be used effectively for
drawing certain conclusions.
2. Pricing Research
Pricing research involves: Pricing strategy assessment supported by strong
pricing research capabilities.
Sound pricing market research requires a broad strategic perspective
together with a focus on pricing decision options.
NINE PRICE QUALITY STRATEGIES

( Contd.. )

1.
2.
3.
4.

Pricing research finds optimum price-product-feature configurations in the

context of market positioning opportunities.
Pricing studies employ both qualitative research and quantitative research
tools.
Pricing research usually concentrates on customers' sensitivity to pricing.
This price sensitivity is driven by the nature of the market, the target within
that market, the differentiation level of product or service, and the value of
brand.
There are four main approaches:
Several different research methods are commonly used in pricing research
each with their own strengths and weaknesses. There are four techniques
that are commonly used the four techniques are:
Gabor-Granger or Van Westendorp Price Sensitivity Meter
Concept Test
Conjoint Analysis
Discrete Choice Modeling
1. Gabor-Granger or Van Westendorp Price Sensitivity Meter (PSM)
The Price Sensitivity Meter (PSM) is used fervently by some researchers. The
premise of the PSM is to ask respondents four price-related questions and
then evaluate the cumulative distributions for each question.
Specifically, respondents are asked:
1. At what price would you consider the product to be so expensive that you
would not consider buying it? (Too expensive)
2. At what price would you consider the product to be priced so low that you
would feel the quality couldnt be very good? (Too cheap)
3. At what price would you consider the product starting to get expensive, so
that it is not out of the question, but you would have to give some thought to
buying it? (Expensive)
4. At what price would you consider the product to be a bargaina great buy
for the money? (Cheap)
In this method, the optimal price point for a product is the point at which the
same number of respondents indicate that the price is too expensive as those
who indicate that the price is too cheap. Many pricing researchers question
that this is the definitive optimal price for a product
2.Concept Test/Concept Evaluation
The standard purchase intent question from a concept test is also commonly
used for pricing research.

Respondents are presented with a product concept and asked how likely they
would be to purchase this product at a specific price.
Typically the researcher will expose independent samples of respondents to
different prices. The standard purchase intent question is shown below.

After introducing the product concept)

How likely, would you be to purchase this product in the next 12 months if it
costs Rs 9000?
Definitely would purchase
Probably would purchase
Might or might not purchase
Probably would not purchase
Definitely would not purchase
To evaluate price sensitivity using this example, a sample of respondents
evaluates this concept at Rs 9000, a different sample of respondents
evaluates the same concept at Rs5000, and another sample of respondents
evaluates the concept at Rs 14000.
A demand curve is constructed by evaluating purchase intent at each price
3. Conjoint analysis:
Like concept tests, conjoint analysis presents concepts to respondents.
However, instead of exposing each respondent to a single concept, in
conjoint analysis each respondent is exposed to many concepts.
For each treatment, respondents are asked to make hypothetical trade-offs
between configured products. For example, a respondent might be asked to
express his preference between two VCR alternatives, as follows:

1.
2.
3.
4.
5.

In conjoint analysis, respondents are forced to make trade-offs between

products and product features, much as buyers are forced to do when
actually shopping.
Each respondent answers a series of trade-off questions; in each question the
combination of features shown together changes. In this way, a large number
of product features can be evaluated.
Each respondent provides enough information through his or her trade-offs
that the utility of each product characteristic (including price) can be
estimated for each respondent.
This individual-level estimation allows for the identification of individual
differences that can lead to a market segmentation scheme and can be used
to help predict acceptance of products by different individuals in a
heterogeneous market.
These utilities also allow prediction of preference for any product that can be
defined using the product characteristics in the study.

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These preferences can be modeled in a market simulator. A market simulator

allows what-if analysis for any configuration of products in any competitive
environment. A demand curve can be produced from these simulations.
4.Discrete Choice
Discrete choice modeling, referred to by some as choice-based conjoint,
enjoys many of the benefits of conjoint analysis (e.g., competitive products,
ability to include a large number of features, simulation capability), but it also
includes a more realistic respondent task. In discrete choice, the respondent
is presented with a set of products and the respondent is asked to pick one,
as illustrated below

The results from discrete choice modeling are very similar to those from
conjoint. For instance, both approaches are able to produce utilities at the
individual level, and both discrete choice and conjoint allow what-if
simulations. Discrete choice modeling has been used with great success in
pricing research
3. PACKAGING RESEARCH
MEANING OF PACKAGING RESEARCH
Packaging research deals with the needs and expectations of consumers
about the package (size, shape, color combination, durability, material used,
etc.) used.
Packaging research is useful for making product packages secured, attractive
and agreeable to consumers.
WHY PACKAGING RESEARCH UNDERTAKEN?
Packaging research is undertaken in order to find out reasonably correct and
reliable answers to the following packaging problems/issues:
Understand how consumers shop the product category and what role
packaging plays in purchase decisions
Understand brand and product perceptions and how deeply rooted they are
Identify unmet needs
Understand how the new packaging departs from consumers expectations
and what visual elements can be used to preserve brand identity
Assess how the new packaging will stand out in a cluttered environment
among competitor brands
Test different packaging concepts and evaluate the effectiveness of graphic
elements and label information in adding uniqueness and encouraging
purchase intent


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Following are the packaging research methods:

Package Screen
Package Check
Package Test
Custom/Ad Hoc Packaging Research
Shelf impact
Simulated Display
1. Package Screen
Early-Stage Package Design
The package design process typically begins with the creation of a large
number of rough or early-stage designs.
Ten to twenty package designs, or more, are common at this beginning stage.
The research objective is to identify the package designs that resonate with
consumers, so that creative efforts can be focused on further development of
the better designs.
How Does Package Screen Work?
A representative sample of 200 to 300 target audience consumers are
recruited from a panel.
These participants are invited to come to a location and view the early-stage
package designs.
Each respondent sees all of the package designs one at a time (front panel
only) on his/her computer monitor, in randomized order.
Then, each person views the package designs a second time and answers
four questions about each design.
The answers to these four questions are fed into a mathematical model to
calculate an overall score for each design.
The highest-rated designs are recommended for further development.
2. Package Check Diagnostic Feedback
The next step in the design process is to learn more about the better designs
so that further improvements can be made.
Package Check is, designed to provide this diagnostic feedback.
How Does Package Check Work?
A representative sample of target-audience consumers are recruited to as a
panel and view each package design.
The respondents see only one package design (i.e., a monadic test) and then
answer a series of questions about their reactions, including a series of openended questions.
The verbatim detail is valuable to creative teams as they strive to improve
the graphic design, as well as the copy, on the package.
A typical Package Check study is based on 75 completed interviews
3. Package Test
Finished Or Near-Finished Package Designs
As packages near the end of the design process, a more complete evaluation
is required, with comprehensive measurements to assess all of the important
elements of package design.
Package Test is comprehensive, testing system to evaluate finished (or nearfinished) package designs.
A representative sample of qualified respondents is invited to evaluate the
package design.

Respondents first see the packages front panel, and later view the other
panels. The research design is monadic.
A mathematical model, based on a number of key variables, calculates an
overall score for the package design and compares it to action standards.
A typical Package Test project is based on 150 completes.
4. Custom/Ad Hoc Packaging Research
Package Communication
What is the package communicating? What is the package failing to
communicate?
Depth interviews are typically used to explore package communication
issues. Usually, the test package is shown at different time exposures (1/500
of a second, 1/200 of a second, etc.) using a tachistoscope.
At each exposure level, package recognition and communication are
examined.
Then the respondents are asked to examine and to read the package in
detail, with no time limits.
The consumers reactions to every detail of package graphics and copy are
explored in the interview.
The purpose of this research is to learn how to improve brand recognition and
package communication.
5. Shelf Impact
Does the average consumer notice the package on the shelf?
To evaluate shelf impact, we typically build representative displays of the test
package in a competitive environment.
These displays are photographed from angles representative of the
consumers perspective.
The test package is rotated within the display.
The best photographs (with correct rotations) are shown to a representative
sample of consumers, at various time exposures (1/200 of a second, 1/100 of
a second, and so on) with a tachistoscope.
The respondents are questioned about what they see and what they
understand, as the length-of-time exposure increases.
This methodology helps determine the visibility (or attention value) of a test
package, relative to competitive packages.
6. Simulated Display
The ultimate test of a package is whether it stimulates trial of a product.
To measure a packages trial potential, a representative display of a product
category (with all major competitive brands) is assembled. Matched samples
of consumers are instructed to shop the display.
Their brand decisions, and the reason for those decisions, are explored in
post-shopping interviews.
Simulated display allows us to measure a packages trial potential and helps
us learn how to improve its trial potential.
4. BRAND RESEARCH
MEANING OF BRANDING AND TRADE MARK: Branding means naming a
product. Packaging and branding go together as brand is generally put on the
package itself.
What is Branding Research?
Branding Research answers "How do people perceive your product, service,
company or personality?"

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Different people and cultures have different perceptions of things, colors,

words and ideas. When different languages join in, confusion is guaranteed.
Research Methodology
Branding Research first determines attributes and benefits for a product in a
specific target market.
This information is obtained through qualitative research such as primary
interviews or ethnographic research.
The perception of each of these attributes is then tested quantitatively.
Why Brand Research?
Brands exist in a business world which is constantly changing.
Nothing stands still and to just leave a brand without planning its future is a
recipe for eventual decline.
Consider the broad strategies which can be applied in planning any
brand:
a. Strengthen or build the brand.
This will lead in turn to higher sales of the products under the brand umbrella
and hopefully higher profits - either through maintaining current margins or
improving them and the latter can be very much tied up with brand strength a strong brand can command a premium price for one thing.
b. Protecting a brand.
Building a brand can be thought of as dynamic or attacking strategy but the
defense of a brand cannot be ignored.
Virtually all brands exist in a competitive market and must fight to at least
hold their position against competitors.
The need for this will be on-going.
c. Extending a brand.
If a brand is an umbrella over the product range, there is the option of
bringing in other products to market under the established name. In other
words brand extension.
There are many successful examples of this strategy but it can be high risk.
Get it wrong and not only may the extensions falter but the whole brand may
be de-valued.
Brand research
Brand research is not just Focus Groups or Attitude and Awareness. Its an
integrated marketing research program which addresses:
Attribute
Ownership
Attitude and Awareness
Various elements of the brand can be measured depending on what has to be
decided. Some common measures include:
a. Awareness: How well known is the brand? Both in the sense of the
proportion of the target audience aware of the name and those having some
depth of knowledge about it and the products marketed under the brand.
b. The relative importance of the brand values: If a brand is a bundle of
attributes or values how important is each; either relative to each other or to
the comparable values of competing brands?
c. Changing brand values: Brands, or at least successful brands have a
long life but their values may change. Another type of measure for strategic
planning is, therefore, plotting changes in a brand's values over time.

d. Brand strengths and weaknesses: Perceptions of a brand can be either

positive or negative and qualitative research can identify both sorts of values.
In successful brands the positive values clearly outweigh the negative but
even the best of brands may have some downside.
The need is to quantify values on some sort of evaluative scale.
Branding Research can be done at every stage of Brand building process, the
various methods related to Brands research are:
Various methods of Brands research are:
1. Brand Character Research
2. Brand Logo Research
3. Brand Name Research:
4. Latent Association
5. Brand Association Research
6. Customer Satisfaction & Brand Loyalty Research
7. Brand Health research
8. Brand awareness Research
1. Brand Character Research:
The main premise of Brand Character is that advertising must not only
communicate what the brand is or what it does, but must also communicate
a sense of who the brand is, how it looks and feels, and what its role is in the
consumer's life.
Exploring these new dimensions of a product and communicating them
through advertising helps to distinguish it from other products, just like an
individual's personality distinguishes that person from any other
To create a Brand Character, an extra bit of insight is needed about a brand
and its target consumer to go beyond the expectations of simple positioning
to convey a strong sense of what the brand means.
While every brand potentially has a Brand Character, some brands have been
more successful in establishing and owning one than others.
2. Brand Logo Research:
When a new logo is to be chosen it is always advisable to evaluate it among
two independent sets of people one to evaluate the logo in isolation and the
other to evaluate the logo on the pack.
Evaluation of logo in isolation looks at its likeability, distinctiveness,
comprehension of message conveyed, by logo options, preference among
logo options, and preference of logo among key competition.
Evaluation of logo on the pack also looks at the same alternatives along with
the speed with which the respondent would identify the test logo pack among
a clutter of other similar packs.
This helps to evaluate how the logo would stand out in the shelf.
3. Brand Name Research:
A Brand name research is important for any brand throughout its lifecycle.
Brand Name Research Is Vital When Naming a Business or Choosing the Right
Service or Product Name.
Whether you're naming a business or researching the perfect
product name, our proprietary qualitative Brand Name research can
pinpoint that one best brand name that:
Fits the concept
Can be pronounced easily
Is durable and elastic across time, cultures and categories

Emotional Bonding Power - When naming a business or developing a product

name, are you connecting with your target market? Are you measuring the
name's emotional bonding power?
Memorability - Brand name research shows memorability is the true litmus
test of exceptional names. Can your target market recall the new product
name after seeing it just once?
Fit to Concept - Which brand name candidate best positions your company,
product or service offering?
Pronouncability - Brand name research reveals what should be common
sense: If your target market can't pronounce the brand name, they won't ask
for it. Can you quantify your product name pronouncability?
Sound Symbolism Brand name research involves personal interviews in which some basic
concept statements may be exposed to respondents along with the name.
Then the respondent are asked to recall the name after having read the
same. This indicates the names notice ability and ease of recall.
Then spontaneous responses are ascertained to name in terms of:
4. Latent Association
What negative and positive associations exist with the brand? What barriers
have to be overcome with negative latent associations?
5. Brand Association Research:
For existing brands or existing competition of new brands, respondents mind
would already have brand associations.
A brand specific association is defined as an attribute or benefit that
differentiates a brand from competing brands (MacInnis & Nakamoto, 1990).
According to David Aaker a brand association is anything linked in memory to
a brand. efficient and effective service and satisfied kids.
McDonalds is an easy company to perform brand association research on.
The McDonalds concept has several associations depending on your
personality and age.
Young kids may associate McDonalds with the funny clown Ronald McDonald
and the free toy that comes along with the happy meal, whether adults
associate McDonalds with
The level of associations can be divided into different intensity of strength.
The link to the brand will be stronger if the associations are based on many
positive experiences.
In such cases, the evaluation should include the following questions:
Ascertain the current state of affairs, without exposing the respondents to the
new concepts
Expose new concepts
Ascertain the response to new concepts
Compare the responses generated before and after exposure of new concepts
to understand their effects.
6. Customer Satisfaction & Brand Loyalty Research
There are many strategic and tactical business reasons for conducting regular
customer satisfaction & Brand Loyalty research.
Poor business performance and / or reducing revenues have, in the past,
been preceded by falling customer satisfaction ratings.

Customer satisfaction & Brand Loyalty research helps company to take the
broader view of the customer relationship, and look what lies beyond
'customer satisfaction'.
While customer satisfaction ratings are a reasonable indicator of the health of
the business, a satisfied customer is not necessarily a committed or long
term customer.
Customer satisfaction & Brand Loyalty research research incorporates
measures that are designed to evaluate the strength of the relationship the
customer has with the product or service and the brand
7. Brand Health research
Brand health is determined by the attitudes, perceptions, expectations, and
behaviors resulting from all brand interactions and experiences that
ultimately shape preference for the brand.
When a company need to understand the strength of it brand, Brand Health
research provides the analytic framework for identifying the drivers of brand
health as well as assessing how effective its marketing efforts are at
reinforcing or changing brand perceptions.
Brand Health research provide the conventional analyses, such as awareness,
usage, loyalty, and brand image measures.

8. Brand awareness Research:

The likelihood that consumers recognize the existence and availability of a
company's product or service. Creating brand awareness is one of the key
steps in promoting a product.
A gauge of marketing effectiveness measured by the ability of a customer to
recognize and/or recall a name, image or other mark associated with a
particular brand.
Market awareness and perceptions of brand can rise and fall quickly in a
changing market.
As Tom Peters says, you are constantly being branded by others, so it is
important to take control now.
The first step is to obtain a systematic understanding of the shape of market
perception of brand through survey research.
Typical Brand Awareness Research questions include:
1. Which single company comes to mind first as a provider for IT solutions?
2. Which other companies come to mind?

3. What qualities does the market leader possess that the other companies do
not?
4. What factors drove your decision to select your primary vendor?
5. To what degree are you aware of the companys capabilities in the area of IT
solutions?
6. Please list the types of products that you know the company sells.
7. What three words best describe the companys position in the industry?
8. What is your perception of the companys products? Experience? Technology?
Service? Sales processes?
9. Based on your understanding of the companys direction how do you perceive
its position over the next 1224 months.
Brand Awareness research is critical to establishing and maintaining the
desired market awareness and perceptions of company.
5. New Product Research
New product development is a company's lifeblood.
Growth and profits suffer without aggressive product development providing
new product and services into the market.
New product development research is not always about looking at the
product in isolation - the product, the packaging, the advertising and the
pricing strategy are all integral parts of the research.
New product launches are inherently risky as it is a venture into the unknown.
A well planned research can accurately pinpoint the richest areas of
opportunity and therefore prioritize the most promising areas of new product
development.
The key to successful market research for new product development comes
from an understanding of what customers value and not simply from asking
them to submit their own solutions.
Types of New product Research
1. New Markets/ Existing Products:
Every company has a product that can travel. It can travel to new
geographical markets or to new industry segments that have not been
tapped before.
New markets wherever they are - new countries or new segments - carry risk.
New Markets/ Existing Products help collect information on potential
customers and markets wherever they are in the world.
With this knowledge a company can build growth and value more quickly and
more securely than by working from guesswork.
2. Existing Markets/Existing Products :
For many companies, the first place to look for more sales is amongst existing
customers.
Current customers have already made the ultimate gesture of approval and
paid money to buy your products.

A bit more persuasion and they may buy more.

However, how many companies know their customer so well that they know if
they have every available piece of business? Ask yourself the following
questions:
1. How much is each customer buying of the products (or services) I sell to
them?
2. What share do my competitors and I have of each customer's account?

3. What does the customer think of me against the other suppliers it could or
does use?
4. What would make each customer buy more?
3. Existing Markets/Existing Products research
Existing Markets/Existing Products research answer these questions. This can
be achieved by relatively straightforward research.

All that require is a customer list and a good briefing. An appropriate

questionnaire is designed, interviews are carry out and report on how to win
more business.
4. New Markets/New Products:
The most dangerous territory of all is that of new markets and new products.
Here market research is a must.
5. Existing Markets/New Products:
The assets of every company are its customers. Existing customers know and
trust the company sufficiently well to do business. So much so, they may give
serious consideration to buying a new product or service from the company.
In the research researcher find the opportunities for new products or services
with existing customers as part of its new markets programme.
Researcher take a brief during which he would discuss the products company
want to sell and learn about their current customer.
Researcher would then design a programme of interviews that could include
face to face and telephone contacts to determine how much business
company could win and at what price.