MARKETING

RESEARCH
METHODOLOGY OF MR
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MARKETING RESEARCH

WHAT IS MARKETING?

“Marketing is a process of identifying consumer needs and then providing products or

services to satisfy these needs.”

For this process, marketing dept. Needs continuous information about environment consisting
of customers, competition and forces at market place.

Marketing research provides this information. Hence marketing research can be defined as:

“Marketing research is a science of identifying data needs, and then colleting,

organizing and analyzing data to help management to take marketing decisions.”

WHY MARKETING RESEARCH ?

Today’s manager needs to know more than any manager in the past because of:
 Globalization of organizations.
 Complexity of business and high cost of wrong decision.
 Customer is becoming affluent, sophisticated & knowledgeable.
 Availability of computers.
RESEARCH PROCESS:

Step 1 - Defining the Research Problem

Step 2 - Formulating Research Design
Step 3 - Collecting Data
Step 4 - Analyzing Data
Step 5 - Writing and Presenting Report

We will now study each step in detail.

STEP 1 – DEFINING RESEARCH PROBLEM

Many a time’s management sees the symptoms & not the problem.
For e.g. management problems would be:
 Declining sales
 Increasing employee turnover
 Large no. of product complaints
These are symptoms. The researcher’s role is to help management to identify the problem and
give solutions.

Thus, there are two types of problems viz.:

1. Management decision problems
2. Research problems
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• Management decision problem asks what decision maker should do.

• Research problem asks what information is needed to solve the problem and how
best it can be obtained.
• Hence, management decision problem is action oriented whereas research problem
is information oriented.
For e.g.

Management decision problem Research problem

Should price of product be increased?
Should a new product be introduced?
Should advertising campaign be
changed?
To compute price elasticity of demand
To determine consumer preferences and purchase
intention of new product
To determine effectiveness of current advertising
campaign

Following methods are used to convert management decision problem into research problem:
• Discussion with decision makers
• Interviews of industry experts
• Secondary data analysis
• Qualitative research

Research problem should be broken down into more specific questions for which data is to be
obtained. Such fractionization helps in:

1. Designing questionnaire
2. Selecting method of administering questionnaire
3. Calculating sample size
4. Selecting sampling method
5. Selecting data analysis techniques

Example 1:
Management problem : A magazine publishing company was keen to know what changes
could be incorporated to improve its appeal to readers.
Broad research problem: To gather0 information about magazine subscribers
Specific components:
1. Demographics of subscribers
2. Psychological characteristics of subscribers like travel, credit card use, consumer
electronics, investments, property etc.
3. Readership of magazine covering time spent to read the magazine, articles read etc.

Example 2:
Management problem : How to increase sales of dept store ‘A’?
Broad research problem : To find out relative strength and weakness of department store
‘A ‘vis-à-vis store ‘B’.
Specific components:
1. What criteria do households use while selecting a department store?
2. How do households evaluate stores ‘A’ and ‘B’ in terms of criteria identified in 1 above?
3. Are specific stored preferred while shopping specific product categories?
4. % market share of each store
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5. What is the demographic and psychological profile of customers of store ‘A’? Does it
differ from profile of customers of ‘B’?

While determining research problem often two types of errors occur. They are:
1. Defined problem is too broad which does not provide clear guideline
2. Defined problem is too narrow

There are two ways to overcome this problem:

1. Make research person a part of decision-making process.
2. A hypothetical output is shown to decision maker for his approval.

Research process problems:

1. Favored technique syndrome.

2. Lack of knowledge of certain techniques. E.g. experimental designs.
3. Inadequate data analysis techniques.
4. Vested interest in research.

What is good research?

• Generates dependable data

• Follows standards of scientific methods:
• Purpose is clearly defined
• Research process explained in detail
• Research design is scientific.
• High ethical standards maintained
• Limitations/assumptions clearly specified
• Adequate data analysis done for decision making.
• Findings presented unambiguously.
• Conclusions justified.

Requisites for careers in research:

• Courses in statistics and quantitative methods.

• Courses in computer skills
• Courses in psychology
• Courses in communication skills
• Creativity in thinking

Now we will go to step 2 viz. ‘formulating research design’.

STEP 1 – RESEARCH DESIGN

What is research design?

It is the methodology to carry out the research. It can be called as a blueprint for
conducting the research. It consists of following components:
1. Information to be collected.
2. Methodology to be adopted to collect it.
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3. Sample size & sampling procedure

4. Plan for data analysis.

Classification of research designs:

Research designs are classified in two categories:
1. Exploratory design
2. Conclusive design

Exploratory designs are useful when researcher lacks clear idea in carrying out the
research whereas conclusive research is conducted for arriving at the final conclusion.
Conclusive research begins where exploratory research ends.

Difference between exploratory and conclusive designs is as follows:

Exploratory
Objective Provide insight to problem,
enhances understanding for
developing research
methodology
Characteristics • Information required is
defined loosely.
• Research process is
flexible & unstructured.
• Sample is small & non
representative of
population
• Data analysis is
qualitative.
Findings Tentative
Conclusive
Test specific hypothesis & examine
relationship in data
• Information required is
clearly defined.
• Research process is formal
& structured.
• Sample is large &
representative of population.
• Data analysis is quantitative.
Conclusive

The classification of research designs is as follows:

RESEARCH DESIGNS

EXPLORATORY CONCLUSIVE

SECONDARY QUALITATIVE DESCRIPTIVE CAUSAL

DATA RESEARCH

DIRECT INDIRECT SURVEY OBSERVATION

(PROJECTIVE)
FOCUS DEPTH PERSONAL MECHANICAL
GROUP INTERVIEW
TELEPONE PERSONAL MAIL ELECTRONIC

ASSOCIATION COMPLETION CONSTRUCTION EXPRESSIVE

 Exploratory research designs are useful when researcher does not have enough
understanding to proceed with research project.
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 Conclusive research designs are used to finally arrive at a conclusion.

These designs are now described below:

I. EXPLORATORY RESEARCH:

It is conducted to:
1. Formulate a problem more precisely
2. Develop hypothesis
3. Identify key variables & relationships for further examination
4. Gain insights for developing approach to the problem.

We will now study various exploratory designs:

SECONDARY DATA:

Data

Primary Secondary

The researcher originates primary data whereas secondary data is collected for purpose other
than the researcher’s problem. Classification of secondary data:
1. Internal secondary data
2. External secondary data

Internal data: internal secondary data is the data generated in the organization. It is readily
available with less cost e.g. Sales by region, outlets, cash/credit and products etc.
External data: external data consists of following sources:

1. General business data: Published through directories, guides, indexes, journals, and
periodicals etc.
2. Govt. Sources: Like census data, RBI bulletin and economic surveys etc.
3. Syndicated sources: This data is collected by an organization & shared by no. of clients.
Such data is collected through:
• ‘Household surveys’ which involve interviews with large no. Of respondents using
pre-designed questionnaire.
• ‘Diary panels’ which involve collecting information from sample of respondents who
provide specified information at regular intervals over a period of time.
• ‘Wholesalers & retailers’ who record their purchases, sale & inventory every month.
Such data is called ‘audit data’.

Advantages & disadvantages of syndicated sources are as follows:

Household surveys:

Advantages Disadvantages
o most flexible way of obtaining data o Response bias
from respondents o Errors in questionnaire design,
communication, recording of data

Diary panels:
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Advantages Disadvantages
o provide more & higher quality data o Low representation of sample
than surveys

Audits:

Advantages Disadvantages
o provides relatively accurate o All markets not covered
information on movement of large no.
of products at wholesale / retail outlet.

Limitations of secondary data:

1. Secondary data may not be current
2. Variables defined in secondary data may not be consistent with those in research
project. (e.g. Income- gross/net)
3. Secondary data might have been compiled by a source, which is not reliable. E.g. Data
published to promote sale or carry out propaganda

QUALITATIVE RESEARCH:

Qualitative research is used:

 To find values important to human beings in taking a particular decision in a situation.
 In situations where respondent is unwilling to give truthful answers.

Techniques in qualitative research can be classified as follows:

Qualitative Research Techniques

Direct Indirect / Projective

(Non-disguised) (Disguised)

Focus groups Depth interview

Association Completion Construction Expressive

Technique Technique Technique Technique

These techniques are classified as either direct (non-disguised) or indirect (disguised).

In direct approach, such purpose is known & in indirect approach it is not known.
We will now discuss each technique:

I. Direct approach:

1. Focus group:
 It is an overview of small group of people conducted by a trained moderator in
unstructured way.
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 The moderator leads the discussion on the issues of interest to researcher.

Moderator’s job is of keeping discussion on the track without inhibiting flow of
ideas and ensuring that each person participates in discussion.
 Communication with others is an important aspect in forming one’s opinion.
Hence, real value of group data is found from analyzing interaction among
participants.

 The value of the technique lies in the unexpected findings often obtained from a
free-flowing group discussion, spontaneous responses and interaction among
members.
 Characteristics of focus groups:

Group size : 8 - 12
Group composition : homogeneous, respondents pre-
screened
Physical setting : relaxed, informal atmosphere.
Time duration : 1 - 3 hours
Recording : use of audiocassettes, videotapes.
Moderator : trained & skilled.

Group size less than 8 fails to generate momentum in discussion & more than 12 is a
crowd.

Homogeneous in socio-economic characteristics. Homogeneous groups tends to

promote intense discussion and free interaction.

Respondents are pre-screened to ensure that they have adequate experience with the
object or issues being discussed.

 We should have more than one focus group since outcome of one group may
not be representative.

Steps in organizing & conducting focus group:

Step 1: Determine Objectives Of Research Project & Define Problem.

Step 2: Specify Objectives Of Qualitative Research.
Step 3: Formulate Questions To Be Answered By Focus Group.
Step 4: Screen the Respondents
Step 5: Develop Moderator’s Outline.
Step 6: Conduct the Focus Group Interview
Step 7: Review Tapes & Analyze Data.
Step 8: Summarize Findings.
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Advantages & disadvantages of focus group:

Advantages Disadvantages
• Produce wider range of information, insights, • Can be misused by
ideas than individual responses obtained considering the results as
privately (synergy) conclusive than
exploratory (misuse)
• One person’s comment triggers a chain reaction
from other participants (snowballing) • Difficult to moderate
(moderation)
• Since participants are not required to answer
specific questions, their responses can be • Results are more
spontaneous & unconventional and should susceptible to misjudge
therefore give accurate idea of their views (misjudge)
(spontaneity)
• Unstructured nature of
• Data collection is quick since number of responses make coding,
individuals are interviewed at a time (speed) analysis & interpretation of
data difficult (messy)
• Since participant’s feelings are similar to those of
other participants he feels comfortable in
expressing his ideas & feelings (security)

Compared to individual interviews that aim to obtain individual attitudes, focus group obtains
multiplicity of views & interaction between group members.

Focus groups can be used in:

• Generate hypothesis.
• Develop questions.
• Understanding perceptions, preferences & behaviors.
• Generating new ideas.
• Copy material for advertisements.
• Obtaining preliminary reaction.

Findings of focus groups are not conclusive since sample of participants is small, hence, it
does not represent population.

Compared to individual interviews which aim to obtain individual attitudes, focus group obtains
multiplicity of views & group interaction
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E.g. Before Plymouth breeze car was introduced in ’96, extensive focus group discussions
were conducted. The discussions revealed that the purchasing criteria for automobile change
with different stages in life. This finding has helped in formulating following hypotheses:

• As people’s lifestyle & needs change, so does their preference for car.
• As people make more money, they are willing to pay higher price for car.
• People have negative perception of the sales pressure involved in car buying process.

These hypotheses were tested in quantitative survey.

2. Depth interviews:

 It is an unstructured, direct, personal interview in which a highly skilled interviewer

probes a single respondent to find underlying feelings.
 The wording & order of questions depend upon respondent’s replies.
 Probing is of critical importance in obtaining meaningful responses & uncovering hidden
issues.

In depth interview, interviewer’s role is superior. He has to establish rapport with the
respondent. He should:
• Avoid appearing superior
• Put respondent at ease
• Be objective
• Ask questions in an informative manner
• Not accept brief ‘yes’, ‘no’ answers.

Advantages & disadvantages of depth interviews:

Advantages
• Can uncover greater depth than focus
group
• Responses can be attributed to
specific respondent unlike focus group
Disadvantages
• Need of skilled interviewer
• Lack of structure makes results
susceptible to interviewer’s influence

• Free exchange of information that may • Obtained data is difficult to analyze &
not be possible in focus group interpret. Services of psychologist are
needed.

Applications of depth interview:

• Discussion of sensitive, confidential, embarrassing topics

• Detailed understanding of complicated behaviors
• Interview of professional people, experts.

II. Indirect approach / projective techniques:

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It is an unstructured, indirect form of questioning that encourages respondents to project their

underlying feelings.

In this technique, respondents are asked to interpret the behaviour of others. In interpreting the
behaviour of others, respondents indirectly project their own feelings. In clinical psychology it is
established that more the ambiguous situation, respondents project their true emotions.

In psychology these techniques are classified as association, completion, construction &

expressive techniques.

1. Association technique:
In ‘Association Technique’ the respondent is presented with a
stimulus & asked to respond with the first thing that comes to his mind. ‘word association’ is
the best known of these techniques. In ‘word association’ technique respondent is
presented with a list of words, one at a time, & asked to respond to each with the first thing
that comes in his mind. The words of interest, called test words, are interspersed
throughout the list, which also contains to disguise the purpose of study. The underlying
assumption is that association allows the respondents to reveal their inner feelings
associated with each word. Responses are analyzed by calculating:

a. Frequency with which a word is given a response.

b. Average time elapses before a response is given.
c. No. Of respondents who do not respond within a reasonable time (3 seconds)

2. Completion technique:
The respondent is asked to complete an incomplete stimulus
situation. Common completion techniques are ‘sentence completion’ & ‘story completion’

a) Sentence completion: respondents are given incomplete sentences &

asked to complete them. Sentence completion can provide more
information on respondent’s feelings compared to word association but
sentence completion is less disguised than word association
E.g. I) A person who shops at Apna Bazar is _____________.
ii) When I think buying shirt/dress material for me, I ___________.

b) Story completion: respondents are given part of story, enough to direct

attention to a particular topic but not to hint the end. They are asked to
complete the story.

3. Construction technique:
In this technique, the respondent is asked to construct a story,
dialogue or description for a stimulus shown to him. Main construction technique is
picture/cartoon response. A picture/cartoon is shown to the respondent & he is asked to
build up a story based on the picture/cartoon.

4. Expressive technique:
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In expressive technique, respondents are presented with a

verbal or visual situation & asked to relate feelings & attitudes of other people to the
situation. The widely accepted method is ‘role playing’.

a) Role playing: in role playing, respondents are asked to play the roles or
assume the behaviour of someone else. The assumption is that the
respondent will project his own behaviour through the role.

II. CONCLUSIVE RESEARCH:

DESCRIPTIVE RESEARCH DESIGNS – survey & observation :

Descriptive research is conducted to:

• Describe characteristics of relevant groups such as consumers, salespersons,

competitors and market areas. (qualitative research)
• Estimate population parameters, establish relationships between variables. (quantitative
research)

Descriptive research is always structured.

There are two types of descriptive research designs. They are:

1. Cross-sectional designs: This design involves collection of information from any given
sample or population only once. In ‘single’ cross-sectional design, information is
obtained only once from one sample whereas in ‘multiple’ cross-sectional design
information is obtained only once from more than one sample.

2. Longitudinal designs: In this design data is collected from same sample(s) repeatedly
over a time period. Such sample is also called ‘panel’.

Relative advantages & disadvantages of cross-sectional and longitudinal designs are shown
below:

Cross-sectional Longitudinal
Detecting change - +
Large volume of data collection - +
Accuracy - +
Representative sample + -

Survey method and observation methods are two descriptive research designs methods.

1. Survey method:
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Survey method is based on questioning of respondents. Questions can be asked verbally, in

writing or via computer. The questions can be administered in four major modes. They are:

Survey methods

Telephone personal mail electronic

Interview interview interview interview

Telephone interview:

Advantages:
 Respondents can be contacted faster.
 Economical.

Disadvantages:
 Persons with telephone connection can only be contacted.
 Cannot show sample products, pictures, visual aids etc.

Personal interview:

An interview is called personal interview when interviewer asks questions face-to-face to

respondent.

Advantages:
 Respondent develops highest trust in interviewer.
 Can show sample products, pictures, visual aids etc.
 Longer interviews are possible.

Disadvantage:
 Expensive.

Mail interview:

Advantages:
 People give more honest answers when answering on computer followed by mail
survey.
 Economical.
 Can show sample products, pictures, visual aids etc.
 Useful for sensitive issues.
 Respondent can answer at his leisure time.

Disadvantages:
 Takes longer time to get responses.
 Follow-up is required.
 Lower response rate that may lead to biased sample.
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Electronic interview:

Advantages:
 Respondent gives most honest answers.
 Speed.
 Online updating of database.
 Can attach picture and sound files.

Disadvantages:
 Respondent must have access to computer.
 No control over responses that may lead to biased sample.
 Few respondents can respond several times.

2. Observation method:

Observation method involves recording behaviour of people, objects and events

systematically.

Observation methods can be classified by mode of administration & they are as follows:

observation methods

Personal mechanical
Observation observation

In personal observation, researcher observes actual behaviour as it occurs.

In mechanical observation, mechanical devices, rather than human observers, record the
observation. Various mechanical devices are as follows:

Audi meter: Attached to tv to continually record what channel is tuned?

People meters: In addition to what channel is tuned to, records who is watching channel?
On-site cameras: Records movement of objects.
Eye-tracking monitors: Records the gaze movement of eyes. These devices can be used to
find out how a respondent reads the advertisement or views the TV
commercial.
Psycho galvanometer: Measures changes in the electrical resistance of the skin. Excitement
leads to increase in electrical resistance of the skin.
Voice pitch analysis: Measures frequency of human voice.

Use of mechanical devices assumes that physiological reactions are associated with specific
cognitive responses.
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The greatest advantage of observation method is that it permits measurement of actual

behaviour rather than intended or preferred behaviour. Also certain data can be best obtained
by observation. E.g. Babies at play

The most serious disadvantages of observation method is that little is known about the
underlying motives, beliefs of a particular behaviour. E.g. Customer may be purchasing a
brand for his neighbour. Other disadvantages are these methods are expensive, difficulty in
observing & interpreting some form of behaviour.

Since observation method has potential to provide valuable information, it is to be viewed as a

complimentary method to survey method.

CAUSAL RESEARCH: experimental designs / experimentation

Often researcher is interested to know why a particular phenomenon/behaviour occurs. He is

interested to find out cause-effect relationship. Experimental designs help to find out such
relationship. It is used to test hypothesis of causation.

While survey & observation methods provide valuable information, it does not allow the
researcher to do experiments that will lead to find cause-effect relationship.

E.g. Researcher is interested to find out whether there is a relationship between discount given
& sales generated. For this purpose he would offer discount coupons of varying % and record
sales. Such data will help him to find out if any relationship exists between discount offered
and sales generated. Here he has experimented with ‘discount’ variable to find cause-effect
relationship.

Marketing effects (sales in above example) are caused by multiple variables (one of them is
discount in above example). Hence cause-effect relationship tends to be probabilistic and not
deterministic.

Before making causal inference, three conditions must be satisfied & they are:

• Concomitant (simultaneous) variation

• Time order of occurrence of variables
• Elimination of effects of other causal factors

‘Concomitant variation’ is the extent to which cause, x, & effect, y, varies together. Such
variation can be assessed by qualitative or quantitative data.

For e.g., in qualitative case, suppose it is observed that the sale of a restaurant offering more
variety in food is high compared to the one offering less variety. Hence there is a concomitant
variation in sale (effect ‘y’) and variety of food (cause ‘x’). Such situation makes hypothesis of
‘more variety more sale’ tenable, but it does not prove it. This is because there could be a
factor, other than variety in food that has an impact on sales.
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In quantitative case, suppose we have the following data of 1000 respondents on purchase of
fashion garments and education of purchaser:

Purchase of fashion
Education garments
High Low
High 363 (73%) 137 (27%)
Low 322 (64%) 178 (36%)

Above data shows that effect ‘purchase of fashion garments’ and cause ‘education’ move in
the same direction. It leads to a tenable hypothesis that ‘as education level goes high so the
purchase of fashion garments’. However, it does not prove the hypothesis since income of
purchaser could also be a factor affecting the sale.

‘Time order of occurrence of events’ means cause should occur before or at least with
the effect. It cannot occur after the effect.

‘Elimination of effects of other causal factors’ means the effects of other causal factors
not being studied should be either eliminated or controlled. For e.g. while understanding
cause-effect relationship between education and purchase of fashion clothing, effect of income
on purchase of fashion clothing should be eliminated or controlled.

Definitions of certain terms:

Independent variables (treatments): These are the variables that are manipulated (i.e. Levels
of such variables are changed by the researcher to test causal relationship). In above
examples they are ‘variety of menu’ and ‘education’

Control group: It is the group in which independent variables are not manipulated.

Test units: These are individuals, organizations or other entities whose response to the
independent variables is examined. In above example test units are ‘individuals’.

Dependent variables: these are the variables that measure the effect of independent variables
on test units. In above examples they are ‘sale’ of restaurant and of fashion garments.

Extraneous variables (confounding variables): these are variables other than independent
variables that affect the response of test units. Since such variables confound (confuse) the
researcher, they are also called ‘confounding variables’. In above example such variable is
‘income’.

There are four ways in which the effect of extraneous variables can be controlled. They are:

• Randomization
• Matching
• Statistical control
• Design control
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‘Randomization’ means test units are assigned to treatments on a random basis by using
random numbers so that we can reasonably assume that extraneous causal factors affecting
dependent variable will be represented equally in each treatment condition.

‘Matching’ means the test units are matched on key variables and matched units are assigned
to different treatments. The goal is to make sure that there are no significant differences
between characteristics of respondents assigned to various treatments.

‘Statistical control’ means measuring the effect of extraneous variables and adjusting for their
effects through statistical analysis. The statistical techniques used are analysis of variance
(ANOVA) or analysis of covariance (ANCOVA).

‘Design control’ means using specialized statistical designs, which control effects of specific
extraneous variables.

Validity in experiments:

While conducting experiments researcher has two objectives viz.

• Draw valid conclusions about effect of independent variables on test units (internal
validity)
• Make valid generalizations to population (external validity)

‘Internal validity’ refers to whether observed effect on test units could have been caused by
variables other than treatment i.e. by extraneous variables. Controlling the effect of extraneous
variables can increase internal validity.

‘External validity’ refers to whether cause-effect relationship found in the experiment can be
extended to population?

It is desirable to have both internal & external validity to an experiment. However, if internal
validity is increased, external validity declines. For e.g. Controlling effects of extraneous
variables can increase internal validity. But external validity would decline because effect of
extraneous variables cannot be controlled fully in population.
Hence any experiment should balance both validities.

Laboratory & field experiments:

Experiments can be conducted in laboratory or in the field.

E.g. Of laboratory experiment: an advertisement is shown in mini-theatre to selected
customers.
E.g. Of field experiment: test marketing of a product.

Comparison of field & laboratory experiments is as follows:

Factors Laboratory Field

Environment Artificial Realistic
Control High Low
Internal validity High Low
External validity Low High
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Time Short Long

No. Of units Small Large
Ease of implementation High Low
Cost Low High

Field experiments are less common in marketing research because they are time consuming,
expensive and difficult to administer.

Measurement & Scaling :

For analysis of any data, whether quantitative or qualitative, it has to be converted into
numbers. Hence we will first study primary scales of measurement and then find out how they
can be used for capturing different types of data.

There are four primary scales of measurement. They are:

• Nominal scale
• Ordinal scale
• Interval scale
• Ratio scale

In ‘Nominal scale’ numbers are assigned to identify objects uniquely. For e.g. Vehicle nos.,
account nos., credit card nos., roll nos. The only permissible operation on such numbers is
counting. %, mode, chi-square and binomial tests can be performed on such data.

In ‘Ordinal scale’ numbers are assigned to objects to indicate the extent to which the objects
possess some characteristics. This scale allows to determine whether an object has more or
less of a characteristic than some other object, but not how much less or more. This means we
cannot conclude about difference between values of two objects. We can calculate median,
quartiles, deciles, percentiles & rank order correlation.

In ‘Interval scale’ we can conclude about differences of values of two objects but not about the
ratios. This means interval scale contains all the information of ordinal scale and allows us to
compare difference of values of two objects but not ratios.

For e.g.

1. Let y = 20 + 6x. Values of y calculated for certain values of x are as follows:

Values of x y = 20 + 6x

1 26
2 32
3 38
4 44

Difference difference
in x in y

2-1 = 1 32-26 = 6
3-2 = 1 38-32 = 6
4-3 = 1 44-38 = 6
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Ratio in x ratio in y

2/1 = 2 32/26 = 1.230

4/2 = 2 44/32 = 1.375

From above it can be seen that difference of 1 in x is equivalent to difference of 6 in y. But this
is not true for ratio of 2 in x. In first case, ratio of y is 1.230 and in second case it is 1.375.
Hence difference is valid but not ratios.

Such relation will exist between y and x if y = a + bx where a is not equal to zero.

2. Temperature can be measured in Fahrenheit or in centigrade. Relation between

them is as follows:
F = (9c/5) + 32

Values of c values of f

10 50
20 68
30 86
40 104

Difference difference
In c in f

20-10 = 10 68-50 = 18
30-20 = 10 86-68 = 18
40-30 = 10 104-86 = 18

Ratio in c ratio in f

20/10 = 2 68/50 = 1.36

40/20 = 2 104/68 = 1.53

Above example shows that difference is valid whether temperature is measured in f or c, but
not ratio.
The equation in f & c can be obtained by putting a = 32 and b = 9/5 in
generalized equation given above viz. Y = a + bx

Arithmetic mean, standard deviation, product-moment correlations can be applied to interval

scale data.

In equation y = a + bx, if a=0, then y = bx.

In example (1) above, y = 6x. We will now calculate values of y for same values of x

Values of x y = 6x

1 6
2 12
3 18
4 24
Difference difference
in x in y

2-1 = 1 12- 6 = 6
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3-2 = 1 18-12 = 6
4-3 = 1 24-18 = 6

Ratio in x ratio in y

2/1 = 2 12/ 6 = 2
4/2 = 2 24/12 = 2

Now the relation between x and y exists for difference as well as ratios. Such data is said to be
in ratio scale.

In general if y = bx where b is positive then such scale is said to be ratio scale. E.g. are
consumption of product, income, and distance etc.

We can perform four basic mathematical operations of +, -, * and / on ratio scale data.

All statistical techniques can be applied to ratio scale data.

SCALING TECHNIQUES:

Scaling techniques are classified as ‘comparative’ scales & ‘non-comparative’ scales.

In ‘Comparative Scale’ (also called as non-metric scale), direct comparison of objects is done.
For e.g. Respondents are asked to compare ‘LG’ TV with ‘Samsung’ TV and tell which brand
he would prefer. Comparative scale data is always in ordinal scale. The benefits of
comparative scaling are:

• Small differences between objects are detected.

• The halo effect in responses is reduced.

The disadvantage is that:

 Comparison is between the selected objects only. If new object is introduced, fresh
exercise needs to be done.
 No. Of pairs become too high if no. Of objects to be compared is high.

In ‘Non Comparative Scale’ (also called as monadic or metric scale), each object is scaled
separately. For e.g. LG and Samsung TVs may be evaluated on 7 point preference scale,
where 1 = not preferred at all and 7 = preferred very much. Non-comparative scales are widely
used in marketing research.

Scaling techniques are further classified as follows:

Scaling techniques

Comparative scales non comparative scales

Paired rank constant

Comparison order sum
Continuous Itemized
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Rating Rating

Likert Semantic Stapel

Differential

Comparative scaling techniques

1. Paired comparison:

A respondent is presented two objects & he is asked to select one according to some criterion.
If there are ‘n’ objects to be compared there will be {n(n-1)/2} pairs.

On the basis of responses, a matrix is compiled as shown below:

Indica Santro Matiz Maruti

Indica 0 2 4 5
Santro 1 0 3 5
Matiz 4 5 0 2
Maruti 5 2 4 0
Total 10 9 11 12

The column total shows the number of times the brand is preferred.

This technique is useful when no. Of objects is limited. Its advantage is that it brings out even
the smallest difference between two brands.

2. Rank order:

Respondents are presented all the objects simultaneously and asked to rank them according
to some criterion.

When no. Of brands to be compared is high, rank order is preferred to paired comparison.

3. Constant sum:

In constant sum scaling, score is given to each object on the basis of some criterion. The sum
of scores is constant.
The main advantage of this scale is that it allows for fine discrimination among objects without
spending too much time.

There are two disadvantages of this scale & they are:

• Sum of scores given by each respondent should be same. This needs to be checked
every time.

• If no. Of objects is too small or too large, giving score would be difficult.

Non-comparative scaling techniques:

 22

In non-comparative scaling, objects are not compared with each other, but each object is
evaluated at a time independently. Hence non-comparative scale is also called ‘monadic
scale’.

Non-comparative scale could be:

• Continuous
• Itemized.

1. Continuous rating scale:

In ‘continuous scale’ (also called graphic rating scale), respondents rate objects by placing
mark at the appropriate place on the line that runs from one extreme of the criterion variable to
other extreme. Thus respondents are not restricted to marks set in advance by the researcher.
These scores are treated in interval scale.

E.g. How would you rate jet airways as an airline?

Economical---------x-----------------------------------------expensive

Continuous rating scale is easy to construct. However scoring is cumbersome. Hence their use
in practice is limited. In practice, itemized rating scale is frequently used, which is described
below.

2. Itemized rating scale:

In ‘Itemized rating scale’, respondents are provided with a scale that has numbers or brief
descriptions. These numbers or descriptions are called ‘items’. Respondent is requested to
give his response for each criterion variable by using the numbers or brief descriptions given.

There are three itemized scale given below:

a) Likert scale
b) Semantic differential scale
c) Stapel scale

a) Likert scale:

Rensis Likert developed this scale. Each criterion variable has five responses viz. ‘strongly
disagree’, ‘disagree’, ‘neither disagree nor agree’, ‘agree’ and ‘strongly agree’. Numbers 1, 2,
3, 4, 5 or –2, -1, 0, 1, 2 are assigned five responses.

Numbers given above facilitate researcher to analyze data. Data analysis can be performed for
each criterion (profile analysis) or total (summated analysis).

In profile analysis, average score is calculated for each criterion and compared.

In summated analysis, total of scores is computed and analyzed. While giving score, most
favourable score will get score 5 and most unfavourable will get score 1. This is explained
below:
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E.g. Five criterion variables about ‘shoppers stop’ are evaluated:

Strongly Disagree Neither disagree Agree Strongly
disagree nor agree agree
Sells high quality
1 2 3 4x 5
merchandise
Charges higher prices than
5 4x 3 2 1
other similar stores
Staff is courteous 1 2 3x 4 5
Wide variety of dresses is
1 2 3 4x 5
available.
Poor display of dresses
5 4x 3 2 1
makes selection difficult.

Note the scores given to second and fifth criteria. Total score will be 19.

Since summated approach is frequently used, Likert scale is also called ‘summated scale’.

Likert scale is easy to construct and administer. However, it takes a longer time to administer
because respondent has to read each statement.

b) Semantic differential scale:

It is a seven point scale with end points associated with bipolar labels like weak/strong,
unreliable/reliable.
E.g. Rate ‘IFB’ washing machine on following criteria:
Note that favourable attributes
Strong--: --: --: --: --: --: --: delicate
can be on left as well as on right
poles.
Expensive --: --: --: --: --: --: --: economical
Individual items can be scored on
Durable --: --: --: --: --: --: --: non-durable
either –3 to +3 or 1 to 7 scale.
The resulting data is commonly
Good --: --: --: --: --: --: --: bad
analyzed through profile analysis.
Performance performance
Mean or median is computed for
profile analysis
Old fashioned--: --: --: --: --: --: --: modern

c) Stapel scale:

Jan Stapel developed this scale. It is a unipolar scale with 10 categories numbered from –5 to
+5, without 0. Higher the number, more accurately the term describes the object.
For e.g. ‘shoppers stop’ is:

+5 +5 Advantage of Stapel scale is that it does not

+4 +4 require pre-testing the adjectives or phrases
+3 +3 to ensure true bipolarity.
+2 +2
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+1 +1
High price wide variety
-1 -1
-2 -2
-3 -3
-4 -4
-5 -5

How to select right scale?

No. Of categories 5 to 9 categories

Balance v/s Balance categories preferred
unbalanced
Odd/even no. Of If neutral response is possible, odd no. Should be
categories used.
Forced v/s non- forced For not allowing respondent to be neutral, forced
response be used.
Verbal description As close to the scale as possible
 25

QUESTIONNAIRE DESIGN :

Any questionnaire has three objectives:

• It should translate required information into questions, which respondents can answer.
• It should motivate respondents to cooperate, get involved into interview and give true
answers.
• It should minimize response error.

There are no scientific principles that guarantee optimal or ideal questionnaire. Hence
questionnaire design is a skill that can only be mastered by experience.

Questionnaire design process:

Step 1: Specify information needed

Ensure that information obtained addresses all issues related to research problem.
For this, finalize output tables and work backwards to decide information needed.

Step 2: Specify interviewing method

Since questionnaire format and wordings of questions depend upon interviewing
method, select the method(s).

Step 3: Determine content of each question

Every question must contribute to the information needed. Check whether each
question is really needed. Group questions in:
 Must know
 Useful to know
 Nice to know
Discard last group.

Step 4: Design the question

Guidelines for designing question:
• Use simple words
• Use positive & negative statements
• Avoid ambiguous words like often, usually, mostly, sometimes, occasionally, normally
etc. As well as unfamiliar words & abbreviations.

For e.g. ‘are you in favour of section 37 of IPC?’

• Avoid leading questions. Leading questions are those that use negative phraseology.
For e.g. ‘wouldn’t you like to receive free gift from us?’

• Avoid such questions that respondent may not remember its answer:

For e.g. ‘what % of your advertising budget do you spend on direct

mailing?’
 26

• Do not use double-barreled questions:

E.g. Do you think fast food is tasty & provides nourishment? (incorrect
since double-barreled)

Correct way is to split the question as follows:

1. Do you think that fast food is tasty?

2. Do you think fast food provides nourishment?

• Make sure that respondent has sufficient knowledge of the subject & he/she is the right
candidate as a respondent. For this purpose, use filter questions about familiarity with
the subject, product use, past experience etc before questions on research subject.

• In case of objection from respondent on the purpose of information, convince him that
information sought has a legitimate purpose.

• Produces variable responses.

For e.g. ‘will you accept corruption?’ will not produce variable response.

Such questions do not give any useful information.

• Tendency to crowd question to make the question look shorter should be avoided. For
e.g.

What is your net annual income?

--- below 1 lac --- 1 to 2 lacs --- 2 to 3 lacs --- 3 to 4 lacs --- 4 to 5 lacs ---
above 5 lacs.

Better layout will be:

Below 1 lac ---

1 to 2 lacs ---
2 to 3 lacs ---
3 to 4 lacs ---
4 to 5 lacs ---
Above 5 lacs ---

• Instructions/directions for any question should be placed before the question.

• Provide for ‘don’t know’, ‘not applicable’, ‘other’ options.

• Questionnaire should end by giving thanks to the respondent.

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Step 5: Arrange questions in proper order

• Opening questions should be interesting, simple & doubt-free.

• Transition between questions should be smooth. Grouping questions that are similar will
make questionnaire easier to complete.

• Branching questions should provide all possible branches

• Place sensitive questions at near end of survey.

Step 6: Identify form & layout of questionnaire

• Questions & structured answers should be numbered

• Questionnaires should be numbered serially

• Leave some space at the end of questionnaire. Sometimes respondents give valuable
feedback which can be recorded here.

Step 7: Making copies of questionnaire:

• Should have elegant appearance:

Use good quality paper

Booklet form is preferred for long questionnaire

Do not use colour printing. It gives an impression that questionnaire is

complicated

Use different colour papers for each category of respondent, if need be. For e.g.
Different questionnaires for public sector & private sector

• Do not print a question such that part of its content including response categories is
carried on next page.