Marketing Research

METHODS OF DATA COLLECTION PRIMARY AND SECONDARY

Secondary Data
Meaning Data that have already been collected for a purpose other than the problem at hand. Not Original in character but rather obtained form published/ unpublished sources

Highly Convenient Quicker Available where impossible to collect primary data.

Relevance of Data to suit the Project Finding data of known Accuracy

Classification of Secondary Data Internal Ready to Use Requires Further processing

External

Published Materials

Computerized Database

Syndicated Services

Business Sources

Online
Internet

Consumers

Institutions

Guides Offline Directories Indexes Statistical Data Govt Sources

Suveys

Retailers

Bibliographic Numeric Full Text Directory Special Purpose

Psychographic General Advertising Evaluation

Audits Wholesalers

Audits Panels Industrial Firms Purchase Direct Enquiries Media Clipping Services Electronic Scanner Services Corporate Reports Volume Tracking Data Scanner Diary Panels

Census Data Other Publications

SDP with Cable TV

Secondary Data
Classification of Secondary Data Internal Data
Accounting Records:Sales records/invoices/Profits/Losses/Expenditure Sales Force Reports:Information given by the Sales People Miscellaneous Reports:Research reports on Mktg. Problems/Special Audits etc.

Internal Experts:Product Managers/MR Managers/PR

Classification of Secondary Data External Data Published Materials:Business Sources

This includes Publicly circulated reports of Individual Projects.It is the work of the originators who clearly seek to expose their work to significant part of public. They publish a lot of information in the form of books, periodicals, journals, newspapers, magazines and trade literature.This information can be located by using guides,directories and indexes.

Guides
A guide may help to identify other important sources such as directories,trade associations and trade publications.They are the first that the researcher should consult.

Guides:
Encyclopedia of Business Information Sources Directories: Encyclopedia of Associations Indexes: Business Index Non Govt statistical: Guide to Consumer Markets

Directories
Directories are helpful for identifying individuals or organizations that collect specific data.

Indexes
It is possible to locate information on a particular topic in several different publications by using an index. Indexes greatly facilitate a directed search of the relevant literature.

Non Government Statistical Data

Published statistical data are a base for graphic and statistical analysis to form important insights.

Published Sources :Government sources Census Data

Census: -U.S. Bureau of Census -Census of Population, Census of Manufacturers /Retail/ Service Industry/wholesale Trade. Others: Business America,Business Conditions digest,Business Statistics etc.

The U.S. Bureau of Census is the worlds largest source of statistical data The major uses of census data are in sales forecasting,development of market potentials etc. The quality of census data is high and the data are often extremely detailed.

Other Government Publications

Also the Government collects and publishes a great deal of statistical data.

Computerized Databases
Databases as classified as organized collections of information on a particular subject area. Databases may be in the form of either Online Databases,Internet Databases or Offline Databases. These may be further classified as : Bibliographic Databases:Online Bibliographies or Indexes and abstracts of books,journals and reports. Numeric: Databases include numerical and statistical information. Full Text: The entire text of articles, reports or other statistical data. Directory Databases:Online list of name,service or companies. Special Purpose

Bibliographic:
www.proquest.com Full Text:: www.lexisnexis.com Directory Databases: www.yellowpages.com

Syndicated Sources
Syndicated Sources also referred to as syndicated services are companies that collect and sell common pools of common data of known commercial value. Not collected for MR Problems but can be personalized to fit particular needs

Consumers/Households Surveys Psychographic & Lifestyles

Surveys of psychological profiles of individuals and lifestyles,These are generally referred to as AIOs I.e activities,Interest and Opinions.

Psychographic Lifestyles:
www.yankelovich.com www.roperasw.com General Surveys: www.harrisintercative.com

Advertising Evaluation The purpose of advertising evaluation survey is to asses the effectiveness of advertising using print and broadcast media General Surveys Surveys for a variety of other purposes of purchase and consumption behavior.

Panels
Panels are samples of people who provide information at regular intervals. Panels now are online and the behavior is recorded electronically Purchase Panels:Here respondents record their purchases of a variety of different products. Media Panels:A data gathering technique that is comprised of samples of respondents whose television viewing behavior is automatically recorded by electronic devices.People Meter

Purchase Panels:
NPD Group: www.npd.com Media Panels: Nielsen Television Index: www.nielsenmedia.com Net Ratings Inc: www.netratings.com

Electronic Scanner Services

Scanner Data: Data obtained by passing the merchandise over a laser scanner that reads the UPC code from the packages. Types of Scanner data: Volume Tracking Data: Provides information on purchases by brand,size,price,flavor etc

Scanner Panels: National Scan Track: www.acnielsen.com Info Scan: www.infores.com

Scanner Panels:Each household member is given an ID Card that can be read by the electronic scanner at the cash register.In a way identity is linked to products purchased as well as other details. Scanner Panels with Cable TV:The combination of a scanner panel with manipulations of the advertising that is being broadcast by cable television companies

Syndicated Data from Institutions Retailer and Wholesaler Audits

Audit:An Audit is a formal examination and verification of product movement traditionally carried out by auditors who make in person visits to retail and wholesale outlets and examine physical records or analyze inventory.

Industry Services
Industry Services provide syndicated data about industrial firms,businesses and other institutions

Basic Methods of Data collection

Basic Methods of Data Collection

Descriptive Research

SURVEY

OBSERVATION

OBSERVATION

Observation
Meaning

The recording of behavioral patterns of people,objects and events in a systematic manner to obtain information about the phenomena of interest rather than asking for information.

Observation
Methods of Observation
Structured-Unstructured Observation Disguised-Undisguised Observation Natural -Contrived Observation Direct-Indirect Observation Human-Mechanical Observation

Observation
Structured-Unstructured Observation Structured: Observation techniques where the researcher clearly defines the behavior to be observed and the methods by which they will be measured.eg.Audit
For Conclusivey Research

Unstructured: Observation that involves a research monitoring all aspects of phenomena without specifying details in advance.
For Exploratory Research

Observation
Disguised-Undisguised Observation
Indirect-Direct Observation

Disguised: Respondents are unaware of the respondents. Undisguised: Respondents are aware of the respondents. Natural: Observing behavior as it takes place in the environment Contrived: The behavior is observed in an artificial environment.

Natural-Contrived Observation

Observation
Direct-Indirect Direct: The behavior of a person or the event is observed as it occurs. The observer Observation does not attempt to control or manipulate the phenomena being observed. It merely records what takes place. Indirect: Indirect Observation implies that some record of past behavior is observed. The behavior itself is not observed rather its effects are observed. An observer generally looks for physical traces of behavior or occurrence of an event.

Observation
Human-Mechanical Observation Human: Trained observers are required to observe and faithfully record their observations. Mechanical: An observational research strategy in which mechanical devices rather than human observers record the phenomena being observed.

Observation
Audimeter/People Meter Attached to television sets to record what channel is turned & who is watching it. Measures changes in the diameter of the pupils of respondent eyes. Measures gavanic skin response(GSR) changes in the electrical resistance linked with perspiration. Measures emotional reactions through changes in the respondents voice . The amount of time it takes to respond. Monitors eye movements.

Pupilometers Psychogalvanometer

Voice Pitch Analysis

Response Latency Eye Camrea

Observation
+ Actual Behavior measurement No Interviewer Bias Certain types of data can be collected only be observation Reasons for behavior measurement is unknown Researchers perception can be bias Time consuming

SURVEY

Survey Questionnaire Method

Classification on the basis of Structure & Disguise
Structured Study Unstructured Study Non Disguised Disguised Following a Prescribed sequence Not following a Prescribed Sequence Objective is clear to Respondent Objective is not clear to respondent

Advantages Versatility Speed & Cost

Disadvantages Unwillingness of Respondents to provide information Inability of respondents to provide information Influence of Questioning Process

Types of Questionnaires Structured,Non Disguised Questionnaires

Standardized Objective is Clear

Non Structured, Non Disguised

Not Standardized Objective is Clear Depth Interviews Focus Group Interviews

Types of Questionnaires Non Structured,Disguised Questionnaires

Not Standardized Objective is not Clear Projective Techniques

Structured, Disguised
Standardized Objective is not Clear Attitude Measurement

Survey Methods

Telephone interviewing

Personal Interviewing

Mail Interviewing

Electronic Interviewing

Traditional Computer Assisted

In Home Mall Intercept Computer Assisted

Mail Mail Panel

Email Internet

Determine What Information is Wanted

?
Questionnaire Construction Procedure

Determine the Type of Questionnaire to Use

Determine the content of Individual Questions

Determine the Type of Questions to Use

Decide on Wording of Questions

Decide on Question Sequence

Precode Questionnaires

Decide on Layout and Reproduction

Pretest

Questionnaire Construction Procedure

1.Decide what Information is Wanted
It must translate research objectives into specific questions. A Specific statement of the Information needed must be made

2. Determine the type of Questionnaire

Personal / Mail / Test

Questionnaire Construction Procedure

3. Determine Content of Individual Questions
Is the question Necessary?

Does the respondent have the information requested Within the respondents experience?

Can the respondents remember?

Will the respondents have to do a lot of work to get the information?

Will respondents give the informtion?

Are several questions needed instead of one?

Questionnaire Construction Procedure

4. Determine the type of Questions to Use

Open Questions Multiple Choice Questions Dichotomous Questions

Questionnaire Construction Procedure

Open Questions Multiple Choice Questions First Questions Offers respondents a Introduce Subject & number of alternatives Obtain General Alternatives not listed Reactions may lead to inaccurate Suggests no Answers results Useful in Exploratory Bias on Positioning of Research Questions Interviewer Bias No Interviewer Bias Difficulty in Simplified Tabulation Tabulation Time consuming Costly Dichotomous Questions A two way Question An extreme of multiple choice questions Choice may be implied or obvious May at times have more than 2 alternatives No Interviewer Bias Simplified Tabulation Easier for Respondents

Questionnaire Construction Procedure

5. Decide on Wording of Questions

Questionnaire Construction Procedure

6. Decide on Question Sequence
Opening Question must win Interest Place Difficult Questions in an apt manner
Influence of Questions on Succeeding Questions Arrange Questions in logical order

Mail Questionnaire Problem

7. Precode Questionnaire
Precoding refers to coding the questionnaire in a a format such that processing on to the computer becomes convenient.

8. Decide on Layout and Reproduction

Securing Acceptance Ease of Control Ease of Handling

9. Pretest
Revision and final Draft

ATTITUDE MEASUREMENT & SCALING

Attitude Measurement
Meaning
Attitude is referred to as: State of the mind of the individual towards a value Attitude is the predisposition of the individual to evaluate some symbol or objector aspect of his world in a favorable or unfavorable manner. Researchers place heavy emphasis on measurement of primary attitudes. These primary attitudes may include: customers attitudes employees attitudes businessman attitudes

Attitude Measurement
Specific Methods of measuring Attitudes:
Non Disguised,Non structured Techniques Disguised,Non Structured

Disguised,Structured Techniques Non Disguised,Structured Techniques

} }

Subjective Measurement

Objective Measurement

Non disguised,Structured Technique

This is the quantification method of measuring attitudes and is undertaken using the process of Measurement & Scaling. These results are comparable as to a scale or a yardstick.

Measurement

Assignment of numbers or other symbols to characteristics of objects according to certain prespecified rules.

Scaling

An extension of measurement The generation upon a continuum upon which measured objects are located.

Scales of Measurement

Nominal Scale Ordinal Scale Interval Scale Ratio Scale

Scales of Measurement Nominal Scale

Numbers serve as labels to identify person,objects or events In a nominal scale the only operation involved is counting of numbers in each group. Do not reflect any characteristic possessed by the object.

Nominal Scale
Which of the following media influences your purchasing decisions the most?

1 Television
2 Radio 3 Newspapers 4 Magazines

Scales of Measurement Ordinal Scale

As the name implies are ranking scales Classifies nominal data according to some order or rank Characteristic of a nominal scale+Characteristics of an object. A ranking scale in which numbers are assigned to objects to indicate the relative extent to which some characteristic is possessed. Can determine More or Less of a characteristic but cannot indicate amount of differences.

Examples

If people were asked to rate the hotness of 3 chili peppers, a scale of "hot", "hotter" and "hottest" could be used. Values of "1" for "hot", "2" for "hotter" and "3" for "hottest" could be assigned. The gap between the items is unspecified

Examples

.Names ordered alphabetically Womens dress sizes Small medium large Quality Please rank the news programs offered in following four networks based on your preference.(1 for most preferred, 4 for least preferred). _____ CTV _____ Global _____ A Channel _____ CBC

Rank Player 1.Woods 2. Els 3. Singh

Avg Pts 16.53 9.26 9.19

4.Love-III
5. Furyk 6. Weir 7.Toms 8.Perry 9. Harrington 10. Goosen As of Oct 19, 2003

7.96
7.57 7.46 5.92 5.68 5.37 5.18

Scales of Measurement Interval Scale Nominal scale+Ordinal Scale+Determination of equality of differences. A scale in which the numbers are used to rate the objects such that numerically equal distances on the scale represent equal distances in the characteristic being measured.

Interval Scale

Assumes that the measurements are made in equal units. Gaps between whole numbers on the scale are equal. e.g. Fahrenheit and Celsius temperature scales An interval scale does not have to have a true zero. e.g. A temperature of "zero" does not mean that there is no temperature...it is just an arbitrary zero point. Permissible statistics: count/frequencies, mode, median, mean, standard deviation

Scales of Measurement Ratio Scale

Similar to interval scales except that the ratio scale has a true zero value. Allows you to compare differences between numbers. Indicates actual amount of variable Shows magnitude of differences between points on scale Shows proportions of differences All statistical techniques useable Most powerful with most meaningful answers Allows comparisons of absolute magnitudes

Examples: Height, weight, age, Length Time Income

6
5 4 3 2 1

Market share

1. What is your annual income before taxes? $ _______ 2. How far is your workplace from home? _______ miles

Nominal

Numbers Assigned to Runners

81

Ordinal

Rank Order of Winners

Third Place

Second Place

First Place

Interval

Performance Rating on a 0 to 10 Scale Time to Finish in Seconds

8.2

9.1

9.6

Ratio

15.2

14.1

13.4

Comparison of Measurement Scales Label Order Distance Origin Nominal scale Yes No No No Ordinal scale Interval scale Ratio scale Yes Yes Yes Yes Yes Yes No Yes Yes No No Yes

Use of Measurement Scales

Nominal Used to categorize objects Ordinal Used to define ordered relationships Interval Used to rank objects such that the magnitude of the difference between two objects can be determined Ratio Same as interval scale but has an absolute zero point

Scaling Techniques

Comparitive Scales

Non Comparitive Scales

Paired Comparison

Continous Rating Scales Itemized Rating Scales

Rank Order

Constant Sum Likert Q-Sort and other Procedures Semantic Diifferential Stapel

SCALING TECHNIQUES
COMPARATIVE SCALES

Involve the respondent directly comparing stimulus objects.

e.g. How does Pepsi compare with Coke on sweetness

NONCOMPARATIVE SCALES

Respondent scales each stimulus object independently of other objects

e.g. How would you rate the sweetness of Pepsi on a scale of 1 to 10

COMPARITIVE SCALES 1. Paired Comparison Scaling As the name implies in paired comparison scaling a respondent is presented with two objects and asked to select according to a criterion. If the no. of comparisons may increase, we may use [N(N-1)/2]

Examples: If we have brands A, B, C and D, we would have respondents compare 6options: A and B A and C A and D B and C B and D C and D

Examples: Please indicate which of the following airlines you prefer by circling your more preferred airline in each pair: Air India British Airways Singapore Airlines Jet Air India Singapore Airlines Jet Air India Jet British Airways Singapore Airlines British Airways

COMPARITIVE SCALES 2. Rank Order Scaling Here respondents are presented with several objects simultaneously and asked to rank them according to a criterion.

Examples: Rank the following soft-drinks from 1 (best) to 5 (worst) according to your taste preference:

Coca-Cola
7-Up Dr. Pepper Pepsi-Cola Mountain Dew

_____
_____ _____ _____ _____

Examples: Indicate your preferred type of music with a 1, your second favorite with a 2, and so on for each type of music: ____ Heavy Metal ____ Alternative ____ Urban Contemporary ____ Classical ____ Country

COMPARITIVE SCALES 3. Constant Sum Scales This method forces the respondent to rate the attributes on the basis of their relative importance. It requires the respondent to divide a constant sum among two or more objects or attributes so as to reflect respondents relative preferences for each project

Allocate a total of 100 points among the following soft-drinks depending on how favorable you feel toward each; the more highly you think of each soft-drink, the more points you should allocate to it. (Please check that the allocated points add to 100.) Coca-Cola 7-Up Dr. Pepper Tab Pepsi-Cola _____ _____ _____ _____ _____ points points points points points

100

points

Examples:
Please divide 100 points among the following characteristics so the division reflects the relative importance of each characteristic to you in the selection of a bank Hours of service Friendliness Distance from home ________________ _______________ ________________

Investment vehicles
Parking facilities

________________
__________________

COMPARITIVE SCALES 3. Q-Sort and other Procedures This method uses a rank order procedure in which objects are sorted into piles based on similarity with respect to some criterion.

NON COMPARITIVE SCALES 1.Continuos Rating Scales Graphic Rating Scale Here respondents rate the objects by placing a mark at the appropriate position on a line that runs from one extreme of the criterion variable to the other. Here respondents are asked to rate themselves, a product,a company or a concept by checking the point. The lines may be vertical or horizontal Scale points in the form of numbers or brief descriptions may be provided.

Examples:

How would you rate Marketing Research to other courses this term
The worst

The Best

10 20 30 40 50 60 70 80 90 100

In a survey of a restaurant,respondents were given the following task: Excellent Good Average Poor Worst

Quality of Food Ambience Cleanliness Service Value for Money

NON COMPARITIVE SCALES 2.Itemized Rating Scales Likert Scales A measurement scale with five response categories ranging from strongly disagree to strongly agree which requires the respondent to indicate a degree of agreement or disagreement with each of a series of statements related to the stimulus objects.

Likert Scales
Strongly disagree Market research is the most interesting subject known to man 1 2 Disagree Neither agree nor disagree 3 4 Agree Strongly agree 5

The Likert scale

NON COMPARITIVE SCALES 2.Itemized Rating Scales Semantic Differential A seven point rating scale with end points associated with bipolar labels that have a semantic meaning.

Semantic Differential Important X Unimportant

Expensive
Useful

X
X

Inexpensive
Useless

Strong
Quick X

Weak
Slow

Semantic Differential
Here are a number of statements that could be used to describe Big-Bazar. For each statement tick ( X ) the box that best describes your feelings about Big-Bazar.

Modern Store Low prices Unfriendly staff

Old- fashioned store High prices Friendly staff

Narrow product range

Sophisticated customers

Wide product range

Unsophisticated customers

Semantic Differential: Snake Diagram

Modern Store
X

Old- fashioned store

X
X

Low prices
Friendly staff Wide product range Sophisticated customers
X X

High prices
Unfriendly staff Narrow product range Unsophisticated customers

Key :
Big-Bazar
X

Sabka Bazar

NON COMPARITIVE SCALES 2.Itemized Rating Scales Stapel Scale A scale for measuring attitudes that consists of a single adjective in the middle of an even numbered range of values from -5 to +5 without a neutral point zero. It is usually presented vertically

Stapel Scale

+5 +4 +3 +2 +1 High quality -1 -2 -3 -4 -5

+5 +4 +3 +2 +1 Poor service -1 -2 -3 -4 -5

Stapel Scale A Stapel Scale for Measuring a Stores Image

Select a plus number for words that you think describe the store accurately. The more accurately you think the work describes the store, the larger the plus number you should choose. Select a minus number for words you think do not describe the store accurately. The less accurately you think the word describes the store, the larger the minus number you should choose, therefore, you can select any number from +3 for words that you think are very accurate all the way to -3 for words that you think are very inaccurate.

+3 +2 +1 Wide Selection -1 -2 -3

Some Basic Considerations When Selecting a Scale

Number of Categories Physical Form Balanced Versus Nonbalanced Alternatives

Verbal Description Forced Versus Non-forced Choice

Odd or Even Number of Scale Categories

Number of Scale Categories

5 Point Excellent _____ _____ Excellent

10Point _____ _____ _____

_____
_____ Poor _____

_____
_____ _____ _____ _____ _____ _____

Poor

Balanced Versus Non-balanced Alternatives

Balanced Very good______ Good Fair Poor ______ ______ ______

Unbalanced Excellent Very Good Good ______ Fair ______ ______ ______

Very Poor ______

Poor ______

Odd or Even Number of Scale Categories

Odd Strongly Agree Agree Neutral Disagree _____ _____ _____ _____

Even Strongly Agree Agree Disagree _____ _____ _____

Strongly disagree _____

Strongly disagree _____

Forced Versus Non-forced Choice

Forced
Extremely Reliable Very Reliable Somewhat Reliable ___ ___ ___

Unforced
Extremely Reliable Very Reliable Somewhat Reliable ___ ___ ___

Somewhat Unreliable
Very Unreliable Extremely Unreliable

___
___ ___

Somewhat Unreliable
Very Unreliable Extremely Unreliable Dont know

___
___ ___ ___

Verbal Description
Scale categories may have verbal,numerical,or even pictorial descriptions and to decide to do it to a few or to all.

Physical Form
Scales can be presented vertically or horizontally.Categories can be expressed by boxes,discrete lines or units on a continuum.Several variations can be brought about.

Criteria for a Good Test

1. Reliability A scale or test is reliable to the extent that repeat measurements made by it under constant conditions will give the same result. Reliability may be affected due to: No response to same questions Bias Answers to same questions 2. Validity The success of the scale in measuring what it sets out to measure so that differences between individual scores can be taken as representing true differences in the characteristic under study.

SAMPLING

Sampling Methods

Non Probability Sampling Methods

Probability Sampling Methods

Judgement Sampling Quota Sampling

Simple or Unrestricted Random Sampling Restricted Random Sampling

Convinience Sampling Stratified Sampling

Systematic Sampling Cluster Sampling