National Institute of Business Management

Chennai - 020

THIRD SEMESTER MBA

Subject : Management Research

Attend any 4 questions. Each question carries 25 marks

(Each answer should be of minimum 2 pages / of 300 words)

ANSWER SHEET

1. What are the basic rating scales? Explain the criteria for a good
measurement of acceptable quality.

Answer 1:

1. BASIC RATING SCALES

Itemized Rating Scales

Itemized rating scale is the most frequently used in marketing

research because of its simplicity and adaptability to most
measurement situations. This form of rating scale requires a
respondent to indicate his or her attitude by selecting a position
on a continuum that reflects a range of possible views regarding
an attitude of the object. The various positions in a continuum
are set up in sequential order in terms of the degree of attitude
held. The scale positions are clearly marked by a descriptive
statement of some kind.

Example

How satisfied would you say you are with your present long
distance service?

Very Satisfied Somewhat Satisfied Indifferent Somewhat Very

Dissatisfied The researcher should have an idea regarding the
number of categories that need to be included. This depends on
the respondent’s educational level and the accuracy in the
detection of attitudes. The researcher also should take into
consideration ‘whether the scales should have balanced or
unbalanced terms’. A balanced scale should have the same
 number of favourable and unfavourable categories. Some argues
that odd number of categories allows a respondent to be
indifferent or neutral towards the question by picking the centre
value. On the other hand, if even number of categories were to
be used, the respondent would be forced to take a position by
expressing some degree of sentiment. But the results of a
research study concluded that there was no significant difference
in the results when the two different scales were used.

1. Graphic Rating Scale

A graphic rating requires the respondent to locate his or her

attitudes along a line or graphic continuum running from one
extreme to another. The respondents choose any point on the
continuum to indicate their attitude.

Example

Please evaluate each attribute in terms of how satisfied you are

by placing an ‘X’ at the position on the horizontal line that most
reflects your feelings.

Very satisfied Very dissatisfied

Promptness of service

Installation of service

Reliability of service

This scale relies on two extreme positions. The respondents are

asked to indicate their position by placing an ‘X’ on a location on
the continuum. The researcher will then subdivide the continuum
into appropriate sets of categories and assign numerals to these
categories. Sometimes this form of scale will also have numbers
besides the descriptions to assist the respondent in
differentiating between positions on the scale. When conducting
research with children, researchers have used ‘thermometer’
scales and a series of facial expressions to represent their
varying degrees of like and dislike about a product.

2. Rank Order Scale

Itemized and graphic scales are considered to be non

comparative because the respondents make a judgment without
reference to another object, person and so on. Rank order scale
 and paired comparison scale are two forms of comparative rating
scales, which make an explicit reference point against which to
compare the views obtained. Ranking questions are a form of
opinion questions in which the respondent is asked to rank
comparatively the items listed. Ranking questions have
advantages in being easy to tabulate and in giving the
respondent a definite set of items. But there are certain
negatives. Unless all the alternatives in the respondent’s set of
choice are included the data can be misleading. Then order bias
can affect answers. No idea is got with regard to ‘why they are
ranked in that way’.

Example

In your job you may have to perform any of the roles listed here.
Consider how much time you spent in each role and then rank
the roles from 1 to 7 in time spent on each. Write a ‘1’ for that
given most time and a ‘7’ for the last item.

Co-ordinator

Entrepreneur

Expeditor

Expert

Forecaster

Innovator

Integrator

3. Paired Comparison Scale

The paired comparison method overcomes the weakness of

ranking the questions that have three or more items, and it also
avoids order bias. Suppose the respondent is asked to show the
preference from amongst five brands of tea A, B, C, D and E with
respect to the flavour. He is required to show his preference for a
particular brand out of each of the possible pairs. In this case the
paired comparisons will involve.

A and B B and D

A and C B and E
A and D C and D

A and E C and E

B and C D and E

It could be seen that each brand has been put in comparison

with the others, one at a time. Since there are five brands to be
evaluated, there are 10 paired comparisons. The total number of
paired comparisons can be derived by a simple calculation = [n
(n-1)¸2]

When the number of brands or objects to be evaluated is large,

the paired comparison scale is not preferred on account of an
excessively large number of pairs involved. This is an important
limitation of the method. Then the most preferred brand can be
found out by creating a matrix. For e.g. consider the matrix
below:

Matrix A

ABCDE

A — 0.53 0.85 0.25 0.30

B 0.47 — 0.68 0.40 0.45

C 0.15 0.32 — 0.49 0.25

D 0.75 0.60 0.51 — 0.20

E 0.70 0.55 0.75 0.80 —

Each cell entry shows the proportion of respondents who

believed that the column brand had the attribute under
consideration in greater measure than the row brand. For
example take column C and row B. The cell entry is 0.68 which
indicates that while comparing brand B with brand C, 68 percent
of the respondents believed that brand C was tastier than brand
B. Then this matrix gets reduced into another matrix shown
below:

Matrix B

ABCDE
 A—1100

B0—100

C00—00

D111—0

E1111—

23410

In matrix B the figures of matrix A has been converted into 0 or

1. Where the preference figure is more than 0.50, it has been
changed to 1 and where it is less than 0.50, it has been changed
to 0. The column totals in matrix B show the extend of
preference in case of each brand. It should be evident from the
column totals that C brand of tea is preferred most followed by B,
A, D and E. This method also has certain limitations. It does not
seem to be realistic as in real life; buying decisions are hardly
ever made in this manner. There is also a possibility for peculiar
judgments. For example a respondent may prefer brand A to B, B
to C and C to A. This is called a circular trial which shows that the
respondents judgments are not transitive.

4. Constant Sum Scale

This scale provides a better perspective of the distance between

points in a continuum. With this type of scale, the respondent is
asked to divide or allocate a number of points, percentages,
usually a total sum of 100, to indicate the relative importance of
attributes being studied. The amount that is allocated to each
alternative indicates the ranks assigned to them by the
respondent, but it also indicates the amount of difference the
respondents set between each alternative.

5. Specific Attitude Scales

There are three varieties of specific scaling techniques that are

largely in use. They are:

i. Semantic differential
ii. Likert
iii. Staple.

(i) Semantic Differential

This scaling technique was developed by Osgood and later
modified by the marketing researchers. The semantic differential
asks the respondents to express their feelings about whatever is
being evaluated by recording their responses on a scale of
adjectives. The semantic differential scale can be used in a
number of cases such as comparison of brands, determining the
effectiveness of advertising on attitude change, comparison of
company’s images etc.

An example of semantic differential is given below:

How would you describe the quality of service of ABC bank?

- Very efficient

- Efficient

- Moderately efficient

- Neither efficient nor inefficient

- Moderately inefficient

- Inefficient

- Very inefficient

(ii) Likert Scale

In the Likert scale the problem of choosing opposite adjectives is

avoided. Here a statement is made or a description is given on
whatever is to be evaluated. The respondent is then given a
scale whose positions range from ‘strongly agree’ to ‘strongly
disagree’.

For e.g.: -

When you consider ‘X’ brand of soap; Quality is high Strongly

Generally Moderately Moderately Generally Strongly agree agree
agree disagree disagree disagree The respondent is to consider
only one adjective for each item.

(iii) Staple Scale

This is a modification of semantic differential. It differs from

semantic differential in such a way that
 i. adjectives are tested separately instead of simultaneously
ii. points on the scale are identified by number and
iii. There are ten scale positions rather than seven.

Thus staple scale can be described as a unipolar rating scale with

value progressions ranging from positive to negative which
measure direction and intensity simultaneously. For eg:- if a bank
is to be described in terms of quality of service rendered , you
would be given the direction to allocate a larger plus number if
the word describes it more accurately and a minus number for
words which do not describe it.

High quality +3 +2 +1 -1 -2 -3

Selecting the appropriate scale to use

The researcher is to identify which scaling technique is to be

used while collecting data. Each technique would have its
strengths and weaknesses. The researcher should select that
scaling technique that would provide with the maximum amount
of information for the analytical purposes. He should also
consider the ease of use of a particular scaling technique by the
respondent. The selection of scaling technique becomes so
important because the nature and number of concepts or
variables will actually set the limits on how the results of the
study can be analyzed.

Criteria for Good Measurement

There are six basic characters of measurement by which it will be

of acceptable quality. The first three are the most important
ones.

1. Reliability:- is the property of producing consistent results

when certain research methods are repeated. If a repetition of
the same techniques on a similar population did not yield the
same measurements as the first data gathering, it would mean
that some random errors have occurred. In such a case the
researcher cannot depend on the data obtained. Hence reliability
is a major aspect.

2. Validity: - is a more extensive objective than reliability.

Marketing studies must have validity otherwise, they are not
scientific. If the data is not valid, it will take the form of
dangerous inputs. One must have accurate concept of what the
data mean when interpreting them.
3. Sensitivity: - is the ability of a measurement to indicate
changes or differences. In some studies sensitivity lacks or the
attributes and scales of response may be wrong ones to measure
differences. Research yields nothing significant and is wasted
when data lack sensitivity.

4. Relevance: -This is an obvious practical consideration to the

decision that is to be made. The characteristics that need to be
measured and the terms to be described should be identically
defined by the decision maker, the researcher and the
respondents.

5. Unless the measurements obtained are relevant, the project’s

efforts are in doubt.

6. Versatility: - this is also called as robustness and is a desired

goal especially for assessing the results’ validity and for drawing
maximum meaning from them.

7. Ease of response: - the persons who supply the data should

not face any difficulties in replying. The questionnaire should be
designed in such a way that the respondents are put at ease in
answering the questions.
2. What are the principles for establishing categories for coding?
Explain.

Answer 2:

Coding

The next step in preparing the data for analysis is coding – a

process that involves the identifying and classifying of each
response on a data collecting instrument with a designated
symbol (either letters or numbers). The assignment of
designated symbols permits the transferring of data from the
data collection instrument into a computer – readable form,
which can then be processed by the computer. Manual data
processing does not require such codes, but such codes reduce
writing when indicating on questionnaires that categories into
which particular responses are to be placed.

Coding procedures

Coding may be done at either of two times.

1. Precoding: -

Precoding is determining the codes at the time of designing

questionnaires and therefore code numbers can be printed on
them. This form of coding is most appropriate for questions that
are dichotomous and multiple choice. For these forms of
questions, the researcher knows the potential responses and
therefore can determine the ways in which designated symbols
will be assigned to the different responses. This greatly reduces
the task of later data preparation and also tends to reduce
coding errors.

2. Post coding: -

When responses are of unstructured open –ended type there is

much more editorial work involved. The respondent’s responses
are recorded verbatim. Then the responses are placed in uniform
categories and code numbers are assigned. There are two
approaches – First the researcher can develop coding scheme
prior to the field work. In this case, training needs to be given to
coders to assign the responses to the correct code. The second
approach involves waiting until the data has been collected and
then develop the Coding scheme. The purpose of this procedure
is to preliminarily identify possible responses that will determine
how to set up the coding scheme.

Principles for establishing categories for coding

A few principles that should be followed in setting categories that

will facilitate the coding function are as follows: -

1. Convenient number of categories:

The number of categories should be substantial enough so that

differences in the data can be revealed, yet not so few as to hide
important information.

2. Similar responses within categories:

Responses classified in a particular category should be similar

with respect to the characteristic being studied.

3. Differences of responses between categories:

Given the characteristic under study, the differences in

responses between categories should be similar enough to reveal
substantial difference between the responses.

4. Mutually exclusive categories:

Categories should not be overlapping. They should be

constructed so that any response can be placed in only one
category.

5. Exhaustive categories:

The construction of categories should provide that all responses

be included in a category.

6. Avoid open ended class intervals:

Open–ended class intervals should not be used, because lack of

specified interval limits obscures the extremes of distribution.

7. Class interval of same width:

Class intervals should be of the same width, wherever possible
rather than of varying width. Disregard of this principle will lead
to situation where the intervals lack a consistent spread.

8. Midpoints of class intervals:

If the respondents are likely to have broadly estimated the

answer they gave, stating them in round numbers, the class
intervals should be designed so that major round numbers fall at
the midpoints of the class intervals.

Code Book

A code book is a publication that contains a column–by–column

explanation about the codes used in the data structured fields
and their relationships to the responses to the questions. The
function of the code book is to:

(1) Aid the coder in his or her job of converting a response to the
appropriate computer readable symbol.

(2) Assist the researcher in identifying the variables he or she

wishes to use in a particular analysis and

(3) Assist at the computer analysis printout stage by helping the

researcher to identify properly the variable categories.

Code books can be a sheet containing the appropriate

information or they can be quite extensive. However, the
minimum amount of information contained in one would include
for each question, the question number, computer column
required, variable name, subject matter of the question and the
code used.
 3. Explain Sampling Process.

Answer 3:

1. Sampling is that part of statistical practice concerned with the

selection of individual observations intended to yield some
knowledge about a population of concern, especially for the
purposes of statistical inference. In particular, results from
probability theory and statistical theory are employed to guide
practice.

The sampling process consists of five stages:

1) Definition of population of concern.

2) Specification of a sampling frame, a set of items or events that

it is possible to measure.

3) Specification of sampling method for selecting items or events

from the frame.

4) Sampling and data collecting.

5) Review of sampling process.

Sampling process

Sampling process is the procedure required right from defining a

population to the actual selection of sample elements. The
process involves seven steps:

1. Define the population

It is the aggregate of all the elements defined prior to the

selection of the sample. It is necessary to define the population
in terms of

i. elements
ii. sampling unit
iii. extent
iv. Time.

An example of defining a population would be as follows:

If a survey were to be conducted on the consumption of tea in
Gujarat, the specification might be,

Element – housewives

Sampling unit – households, then housewives

Extent – Gujarat state

Time – October 1-10- 2000

It should be emphasized that all these four specifications must

be contained in the population. If any one factor is omitted, the
definition of population would remain incomplete.

2. Identify the sampling frame

The sampling frame could be telephone directory, a list of blocks

and localities of a city, a map or any other list consisting of all
sampling units. A perfect sampling frame is one in which every
element appears on the list separately, once and only once, and
nothing else appears on the list. Certain factors need to be
considered while identifying a sampling frame.

They are:-

(i) Whether it adequately covers the population to be surveyed.

(ii) Whether every unit is included in the frame

(iii) Whether the frame is accurate and the information about

each individual unit is correct.

(iv) Whether there is any duplication, the convenience for its

usage, whether it is readily accessible etc.

In marketing research most of the frames are from census

reports, electoral registers, list of member units of trade and
industry associations, lists of members of personal bodies etc.

3. Specify the sampling unit

The sampling unit is the basic unit containing the elements of the
target population. The sampling unit is different from the
element. For eg:- when a sample of housewives is required, the
households form the sampling unit.
 4. Specify the sampling method

This indicates how the sampling units are selected. The

important decision that is to be taken is whether to go in for
probability or non – probability sample. In the case of probability
sample, the probability or chance of every unit in the population
being included in the sample is known. The types of sampling
methods would be dealt in detail later.

5. Determine the sample size

One has to decide how many elements of the target population

are to be chosen.

6. Specify the sampling plan

This means that one should indicate how decisions made so far
are to be implemented. For

eg:- if a survey of households is to be conducted, a sampling plan

should define a household , contain instructions to the
interviewer as to how he should take a systematic sample of
households, advise him on what he should do when no one is
available on his visit to the household and so on.

7. Select the sample

This is the final step in the sampling process. A good deal of

office and field work is involved in the actual selection of the
sample elements.

4. Explain the types of scales used in measuring behavior in social and

educational research.

5. How are data prepared and processed?

6. What are the levels at which marketing research must be evaluated
and controlled?
Answer 6:
Market research is broader in scope and examines all aspects of
a business environment. It asks questions about competitors,
market structure, government regulations, economic trends,
technological advances, and numerous other factors that make
up the business environment.

Sometimes the term refers more particularly to the financial

analysis of companies, industries, or sectors. In this case,
financial analysts usually carry out the research and provide the
results to investment advisors and potential investors.

· Product research - This looks at what products can be

produced with available technology, and what new product
innovations near-future technology can develop.

· Advertising research - is a specialized form of marketing

research conducted to improve the efficacy of advertising. Copy
testing, also known as pre-testing, is a form of customized
research that predicts in-market performance of an ad before it
airs by analyzing audience levels of attention, brand linkage,
motivation, entertainment, and communication, as well as
breaking down the ad’s Flow of Attention and Flow of Emotion

Evaluation of Marketing Research

There are two levels at which marketing research must be

evaluated and controlled:

(1) The individual research project.

(2) The firms overall marketing research functions.

(1) Individual Research Project

Use a checklist which may contain numerous standard questions.

Example: Is the required information available within the firm. In
addition, based on firms past experience with specific research
projects, it is desired to include checklist question that are
especially applicable to the firm and its industry. In the execution
of projects, proper evaluation and control can be exercised in the
individual projects using critical path method and program
evaluation review techniques. Planning of resources, completion
time etc. can be very easily estimated using CPM and PERT.
(2) Total Marketing Research Function

While proper guidance and control of the individual research

project are certainly important, attention must be co-ordinated
with larger marketing research function in order to avoid danger
of having brilliant individual projects.

Research Advisory Committee

It consists of representation of all departments that utilize the

market research findings. The purpose of the committee is to
provide overall direction to the marketing research program by
identifying problem areas that are of great importance to the
company and directing the attention of marketing research
towards information needs in the areas.

The Research Audit

A Periodic Audit can be a useful supplement to the marketing

research advisory committee. This periodic audit is conducted in
every two to five years and the purpose of the audit is to provide
a fresh perspective towards evaluation and control of the
marketing research problem. The use of an independent auditor
helps to avoid external function problem that stem from the
vested interests of those involved in the project.

In addition, the use of an outside auditor is likely to bring to the

analysis, a variety of experiences and knowledge of various
industries and research programs that do not exist within the
firm itself. In general, the audit will follow the general; direction
taken by the advisory committee and is likely to involve the
pursuit of questions such as:

Is research providing relevant information to the firm’s

decision?

Are sound research methodologies being employed?

Is the research findings utilized in decisions?