Dr.

M S Subhas, IIT-M, IIM-A, PhD

Professor in Management,
Kousali Institute of Management Studies,
Karntaka University, Dharwad

22-Dec-14

Dr. M S Subhas

Types of Scales
Nominal
Ordinal
Interval
Ratio

22-Dec-14

Dr. M S Subhas

Nominal Scale

st
(1

of 4)

These are just values or number to identify an individual

item
Greatly used in mutually exclusive and collectively
exhaustive cases
Used for descriptive statistic
Segmentation
Characteristics of nominal scale
No reference point

No order
No distance
No direction
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Dr. M S Subhas

Ordinal Scale

nd
(2

of 4)

Used when there is an order and a higher number

mean greater/over and smaller number mean

small/low
Ex. Age
Used to establish a relative standing
Characteristics of scale
Order exists
No reference point
No distance
Direction exists
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Dr. M S Subhas

Interval Scale

rd
(3

of 4)

In case of ordinal, only relative position is known not

actual distance
In interval, this is taken care of
This has an arbitrary zero
Ex. Fahrenheit and Celsius
Characteristics of interval scale
No common zero
Distance exists
Direction exists
Order exists

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Dr. M S Subhas

Ratio Scale

th
(4

of 4)

In interval scale, the origin is not important. But in

ratio scale this is important.

There is a natural zero
Characteristics of ratio scale
Order exists
Distance exists
Direction exists

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Dr. M S Subhas

22-Dec-14

Scale

Measures of Average

Nominal

Mode

Ordinal

Median

Interval

Mean

Ratio

Geometric (harmonic)
mean

Dr. M S Subhas

Attitude Measurement
Most difficult to measure
Represents a predisposition to respond to an object and not an

actual behaviour
It is an indicator of readiness
Attitude is persistent
Can change only with great pressure
Attitude is latent behaviour that produces consistent behaviour
Attitude has a directional quality
Settled behaviour as indicating opinion
THURSTONE: the sum total of a mans inclination and
feelings, prejudices or biases, preconceived notions, ideas, fear,
threats and conviction about any specified topic
Verbal expression of an attitude is opinion-expressed

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Dr. M S Subhas

Direct Response Attitude Scales

and Measure of Emotion
Attitude is an enduring organization of cognitive,

affective and behavioral components and processes

with respect to some aspect of individual world.
Cognitive Component: a persons belief (information
about a product)
Affective Component: a persons feeling of like/dislike
Behavioral Component: action tendencies or
predispositions
Marketing effort is to influence the attitude

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Dr. M S Subhas

10

 Rating scale focuses on

Overall attitude toward a product
Degree to which an object contains attribute (e.g.
sweetness)
Ones feeling towards an attribute (taste)
Importance attached to the attribute
Non-comparative Rating Scales (Monadic as only one

brand used)
Ex. Each respondent (say 400 sample) is given a
concept (written, pictorial, or in finished form) and
asked if he would buy.
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Dr. M S Subhas

11

11 Point Juster Scale

10: Certain, practically certain (99/100)

9: Almost sure
8: Very probably
7: Probable
6: Good Possibility
5: Fairly good possibility
4: Fair possibility
3: Some possibility
2: Slight possibility
1: Very slight possibility
0: No chance (almost NO) (1/100)

Top Box Score

Bottom Box Score

Order of appearance can be reversed on 1 / 2 questionnaire to avoid

position bias.

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Dr. M S Subhas

12

Analyzing Top Box Scores

Ex. 100 consumers have given TBS to 4 products as

below:
A: 40, B: 20, C:20, D:20; Then obvious choice is A
If the same 100 give preference like below
Pref Ranking

40

20

10

10

10

10

Here 60% people prefer any brand to brand A!

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Dr. M S Subhas

13

Graphic Non Comparative Rating

Scale (Continuous Rating Scale)
Overall how you would rate the taste of Thums Up?
Excellent

Probably
the best

Very poor

Very good
I like it

All right
Neither good/bad

Not at all
good

Probably
the worst

Normally analyzed as interval data.

Not very popular
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Dr. M S Subhas

14

Itemized Non-comparative Rating

Scale
Widely used
Basic building blocks
D-T scale
Delighted
7

Pleased
6

Mostly
Satisfied
5

Mixed
4

Mostly
Dissatisfied Unhappy Terrible
2
3
1

Percentage scale
Need-S-D
Extremely well 71 Extremely poor

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15

Other Scales
Smiling face scale
Balanced vs unbalanced
Odd vs even numbered
Forced vs Non-forced scale

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16

General Recommendations
Categories

Remark

Verbal Categories

Use precise description

Number of categories

5 when summed, up to 9 otherwise

Balanced/Unbalanced

Balanced if it is known that responses are balanced

Odd/even

Odd if responses could feel neutral (genuine)

Forced/Non-forced

NF unless it is likely that all responses will have knowledge

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Dr. M S Subhas

17

Graphic and itemized comparative

rating scales
By simply introducing a comparative point, scales can be

developed.
How much do you like the taste of new coke compared to classic?
1. Balanced, forced choice, odd-interval scale
Like it very much, like it, neither like nor dislike, dislike, strongly

dislike

2. Balanced, forced choice, even interval

Extremely good, very good, somewhat good; somewhat bad, very
bad, extremely bad
3. Unbalanced, forced choice, odd-interval scale
What is your reaction to the advertisement?
Enthusiastic, very favourable, favourable, neutral, unfavourable
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Dr. M S Subhas

18

Paired measure of preference and

discrimination
Paired: Measures ability of consumers to discriminate

between brands by presenting the respondents with

two objects at a time and requiring the selection of one
of the two according to some criterion.
If there are n brands and a attribute, number of
comparisons would be
n(n 1)

*a
2

Output of such is shown on the next slide

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Dr. M S Subhas

19

Output of paired measure

A

0.81

0.68

0.26

0.37

0.19

0.28

0.08

0.14

0.32

0.72

0.15

0.26

0.74

0.92

0.85

0.57

0.63

0.86

0.74

0.43

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Dr. M S Subhas

20

Double paired comparison

Respondents are provided with four products. Two

identical of product A and two identical of product B.

He/she is asked to rank. (Respondents are not told
that there are only two products!)
Those who can discriminate should rank two identical
above the other two of product B. Those who do not
cannot discriminate!

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Dr. M S Subhas

21

 Consistent Preference discrimination

The subject is required to repeat paired comparison (4 t0 8 times)
Triangle Discrimination and Triangle preference test
Subject has a sample of 2 products of A type and 1 of B type. He has to
simply identify the version that differs from the other two or rank 1 for
different and 2 &3 for similar or 3 for different.
Double triangle discrimination and double triangle preference test
This is same as above except that majority in 1st is made minority in 2nd
triangle.
Rank order rating
Measures both brand and attribute
Constant sum scale
Divide 100 points among characteristic listed below that reflects how
important it is

22-Dec-14

Economy, style, comfort, safety = total should be 100

Dr. M S Subhas

22

Attitude Scale
Semantic Differential Scale
Generate a large number of bipolar adjectives/phrases
Could be

Evaluation dimension: good/bad

Activity dimension: fast/slow
Potency dimension: big/small
Ex. Your mixer
It grinds all types of materialit does not
Size of the jar is convenient.not convenient
Makes a lot of noisevery silent

The above is done for all brands. Then adjust all scales such

that all positives are one side. Then find average/median. You
may use weightages (decided by judges) and corrected.
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23

Attitude scales
Advantages
Helps develop a profile
Very illustrative
Helps subject express intense feeling
Helps item analysis
Disadvantages
Poor on analytical application

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Dr. M S Subhas

24

Stapel Scale
Simplified version of semantic differential scale.
Scales are unipolar
10 interval scale
Scale value used to identify/ indicate how accurately one
adjective describes concept.
Ex. Spencer shop is compared on it largeness,
friendliness, and on its price; all on +1 to +5 and -1 to -5

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Dr. M S Subhas

25

Likert Scales
Also called Summated scales
Respondents asked to indicate degree of agreement or

disagreement with a series of statements.

Spencers is one of the most attractive stores
Strongly agree..agreeneither

agree/disagree.disagreestrongly agree

Service at Spencers is not good (product)

Strongly agree..agreeneither
agree/disagree.disagreestrongly agree
Service is very important (attribute)
Strongly agree..agreeneither
agree/disagree.disagreestrongly agree
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Dr. M S Subhas

26

Measuring emotions
While shopping at Spencers I feel
Not
at all

22-Dec-14

Very

Excited

Good

Bad

Cheated

Dr. M S Subhas

27

THURSTONE SCALE
CONSTRUCTION
Generate a large number of statements (say 100-200
by brainstorming). Statements should reflect all
attributes.
2. Each statement to be written on a card.
3. Large of number of subjects asked to sort all the
cards on 11 slots.
1.

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28

Sorting the statements

1

10

Fav

11
Unfa
v

Freq

10

30

60

60

14

12

0.04

0.05

0.15

0.30

0.30

0.07

0.06

0.03

Cum
%

0.04

0.09

0.24

0.54

0.84

0.91

0.97

1.00

1.00

1.00

State
ment 1

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Dr. M S Subhas

29

4. Find the median

C - Pw
Vc I
i

Pw

Where
Vc = corresponding value of the cth centile
I = the lower boundary value
C = centile
Pw = sum of Ps < interval
Pw = proportion within the interval in which centile
falls
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30

 Calculate Q = V75 V25

Q = 6.2 4.5 = 1.7

0.50 - 0.24
V50 4.5
1

0.30

5.4
V75 6.2
V25 4.5

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31

6. Choose all statements that have smallest Q values

7. Select about 20 statements
1. Statement mean values span the scale
2. Low Q values
8. These statements are placed randomly
9. Respondents are asked if THEY AGREE OR NOT

10. Then the responses are tabulated

Statement no

Scale value

Disagree

8.2

Yes

8.7

No

3.5

No

1.8

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Dr. M S Subhas

Agree

Yes

32

11. Pick all statements that they agree

12. Find their scale scores. Ex. 8.2 and 1.8
13. Find the median or average. Ex 10/2 = 5
14. If 5> 6 (neutral value), then customer is favorable; if

not NO
Disadvantage
Avg of 6.7 and 8 is 7 and Average of 7& 7 is also 7. Both
are equal here.
Intensity of feeling is not recorded.
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Dr. M S Subhas

33

Summated Rating (Likert Scale)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Generate a large number of favorable statements

Eliminate statements which are irrelevant, ambiguous, obvious and deficient
About 100 respondents are asked to indicate their responses to these
statements on a 5 point scale
Total scores of each respondent is calculated
For each statement R2 is calculated between total score and score of each
statement
Only those statements having high R2 values (>0.8) and the highest 10-20
statements are selected
Sigma for each statement is also arrived at. Discard statements having very
low sigma.
Then use the statements for collection of responses from respondents.
For each demo or any classification/segment, generate table as shown
Calculate mean and check for t test if groups differ.

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34

Method
For each question construct table as below:
Response

Scale
value

Hi group

Low group

fx

Fx

Strongly agree

28

140

10

Agree

14

56

24

Neutral

18

18

54

Disagree

20

40

Strongly disagree

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35

 HI group are those who have top 25% of all total

scores. They have favourable attitude toward product.

Lo group are those who have bottom 25% of all total
scores
Then find mean
XH = 218/50 = 4.36 and XL = 132/50 = 2.64
Use t test to see if the difference in mean is
significant. If yes, the attribute is decisive.

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36

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Dr. M S Subhas

37

Preliminary decision

Specify the info to be

sought

What info is required?

Who are target respondents?
What method of communication is to be
used?

Decision about question

content

Determine type of
questionnaire and
method of
administration

Is this question really needed?

Is this question sufficient to generate needed
sufficient info?
Can the respondents answer the question
correctly?
Will the respondents answer the question
correctly?
Are there external events that bias respondents?

Decisions regarding
question phrasing

Determine content of
individual question

Do the words have one meaning?

Are any words loaded/leading?
Are any implied alternatives?
Are there any unstated assumptions?
Will the frame of response be same?

Decisions regarding
response format

Determine form of
response

Open ended/close ended

Multiple choice
Mono choice

Decision regarding
question sequence

Wording of questions
Question sequence

Decisions regarding
layout
Pretest/revise
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38

Data
Demographic data
Age, education, occupation, marital status, sex, income, social class,
Purpose: relate any demo variable to attitude, behaviour, motivation, etc.
Attitude and opinion
Attitude..respondents view/feeling towards some idea/phenomena
Opinionverbal expression of attitude

Attitudes are forerunners of behaviour

Awareness/knowledge
What respondent know/dont know about a product
Awareness of product/features/where it is available/price/manufactureres/how it is used.
Intentions
Definite intention to buy
Probable intention to buy
Undecided
Definite intention not to buy

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UNRELIABLE
Impulsive actions not recorded
There a gap between intention and action

Dr. M S Subhas

39

 Motivation
Hertzbergs (satisfier/dissatisfiers)
Maslows hierarchy
Behaviour
Why did you buy
What you did not like
What did you strongly like

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40

Behaviour check list

Purchase behaviour /Use behaviour
What
How much
How
Where
When
In what situation
Who
Communication.versatile, speed, cost
Observation objective, accuracy
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41

Types of Surveys
Personal Interview
Mall intercept interview

Predominant: cost advantage

Ability to demonstrate: greater supervision
Less elapsed time

Shopping mall interviews

Variety of formats can be used
Disadvantage
Who visit shops are not representative

Telephone interviews
Cati

22-Dec-14

Individualized questionnaire
Different versions can be automatically shown
Ease and speed with which questions can be changed
Random digit dialing
Sawtooth Softwares Ci2 CATI SYSTEM
Dr. M S Subhas

42

 Mail interviews
Mailed to respondent
Can be left and/or picked later
Can be distributed by magazines/papers
Warranty cards
Post sales coupons and forms
Computer interviews
Deliberate selection at mall
Placing a computer
Telephone interview assisted by computer
Questionnaire design reduced by many hours to 1 hour
Paper requirements reduced
Average time per interview reduced by 50%
Data analysis completed within next day
Date more accurate

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Dr. M S Subhas

43

Means of obtaining

Commun
ication

Observat
ion

Degree
of
structure

Degree
of
disguise

Method

Degree
of
structure

Degree
of
disguise

Method

setting

structure
d

disguised

Personal interview

structure
d

disguised

Natural

Unstruct
ured

Undisgui
sed

Telephone
interview

Unstruct
ured

Undisgui
sed

Contrive
d

Mail interview

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44

 Survey research: Systematic gathering of information

from respondents for the purpose of understanding

and/or predicting some aspects of the behaviour of the
population of interest.
Administration of a questionnaire to a group of
individual is called an interview.
Types of interviews
Structured/unstructured
Direct (respondent is aware of intention) /indirect

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45

 Will the respondent

and interviewer have
common
understanding of
info sought

Yes
Will respondent be
able provide the
answers needed

Will the respondent

be willing to provide
the answer needed

Yes

Yes

Then use a structured direct

interview
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46

 If NO to all the questions on the previous slide, and

structured indirect interview will give the information

needed, then use a structured indirect interview
If structured indirect interview does not provide the
required information, then check whether an
unstructured direct (depth) interview would give the
information
If yes use an unstructured direct interview
Or else, use unstructured indirect interview.

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47

Criteria for selection of survey

method
Complexity
Required amount of data
Desired accuracy
Sample control
Time required
Acceptable level of non-response
Cost

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48

 Trained interviewer/untrained/visual cues

How much time will it take to complete questionnaire
How much effort will be needed
Sensitive questions
Interviewer effects
Interviewer cheating (interviewer may falsify certain data)
Guessing

Randomized digit dialing

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49

CRITERION

MAI
L

TELEPHO
NE

PERSON
AL

COMPUTE
R

Ability to handle complex

questions

Poor

Good

Excellent

Good

Ability to collect large data

Fair

Good

Excellent

Good

Accuracy to sensitive question

Good Good

Fair

Good

Control of interviewer effect

Excel Fair
lent

Poor

Excellent

Degree of sample control

Fair

Excellent

Fair

Fair

Time required

Poor

Excellent

Good

Good

Probable response rate

Fair

Fair

Fair

Fair

Cost

Good Good

Fair

Fair

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50

Methods of reducing non-response

in mail surveys
Non-response depends on interest
Pre-notification press
Type of postage
Length of questionnaire (has no effect!)
Lottery incentives
Charity contributions
Promise of a copy of results
Physical characteristics
Degree of personalization
Respondent anonymity
Confidentiality
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51

Commercial Surveys, Audits &

Panels
Commercial surveys
Periodic surveys (measures same attitude, knowledge,
and behaviour at regular points of time)
Panels (measures differing attitudes, knowledge, and
behaviour using same respondents at regular or unique
time)
Shared surveys (done by a Research firm.. Need supplied
by different clients

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52

 Periodic surveys: regular intervals of time i.e. weekly, to

annualnew sample of respondents.. Allows trend of

similar respondents
Topics: media usage, food preparation
Report: standard, available to subscribers
Method: mail, personal interview, telephone

Panel surveys: called interval panels

Groups of respondents who have agreed
Continuous panel
Topics: demographics, attitudinal, product ownership
Types: INTERVAL: Cross-sectional (one-time)
Adv: hi response rate: 70 to 90%
Data: mail, telephone, personal + focus group
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53

 Shared survey: Sometimes called OMNIBUS panel

Method: mail, telephone, PI
Sample: from interval panel, randomly large population
Cost: cost per question is less
OMNITEL: conducted weekly
National probability sample: CATI

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54

Audits
Physical inspection of inventories, sales receipts, shelf facings, prices and other aspects
Store audit:
Stock: Opening inventory +net purchase closing inventory/ Sales
Ex: Nielson Retail Index
Audits every 30-60 days
Clients receivereport on sales of brands and competitors, market shares, prices, shelf
spacing in-store promotional activity. Stock out, retail inventory, stock turn, local
advertising available online
Product audit
Similar to store audit
Ex. Audits and surveys National Total Market Index
Focuses on products
Ex. Wax (auto) from all store types
Retail Distribution Audit
Similar to store and product audit
Do not measure inventory or sales; measures observational studies
Field agents enters stores unannounced without permission
Observe: brands, price, shelf facings

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55

Panels
A panel is a group of individuals/organizations that have agreed to

provide information to a researcher over a period of time.

A continuous panel.regular basis
Retail Panels

UPC: Universal product code

EPOS: Electronic Point-of-sale Systems
AC Neilsons Scan Track: 2700 supermarkets, 500 drug stores, 300 mass

merchants, 50 cities
IRIs info scan:

Data on displays, advertising, couponing

Data collected weekly/ 30 days

Consumer Panels
Diary Panels: A panel of households who record in a diary
Ex. Neilson MRCA panel.6500 households family 1500 non family
households.. About 50 product categories
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56

 Panelists classified
Geographic (prism, cluster plus, SRIs-VALS-II)
Date: Market share by outlet
Industry and brand value
Household buying
Penetration
Buying rate
Purchase frequency
% bought using promotion
Types of deal
Average price

22-Dec-14

MRCA: 12,000 household

Dr. M S Subhas

57

 Electronic panels
Household whose television viewing behaviour is
recorded electronically (Nielson Media research):
problem related to measurement
People meter where every viewer presses a code before
watchinglog on. downloaded via telephone to a
computer..4000 households
Competitor is Arbitron with ADI (Area of dominant
influence) within geographic area2000 households

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58

UPC : Consumer Scanner Panels

Two approaches
Automatic in store
Data collection at check out using store scanner

IRI uses this

60000 households
Panel members are given ID numbers
Auto transmission to central computer

At home using hand held scanner

NPD Nielson
40,000 households
All data like store, price, deal
Data manual entry
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59

 Single source data

Continuous data derived from same respondent/HH
Covering at least TV viewing, UPC purchase info and BOS
approach for store data
Burgoyne Observation System (BOS)
Select a set of defined outlet system
Field observation of 72-96 hours
For client and competitors measure

22-Dec-14

Distribution and out of stock, retail price level, feature price activity,
shelf face positioning/allocation, in-store location, display activities,
POP material presence, age of stock, damaged product, depth of
line, 200 outlets, reports generated

Dr. M S Subhas

60

International Commercial Surveys,

Audits, and Panels
US: has largest variety of surveys, audits, panels
Nielson: People meter, television viewing monitors in Australia, Finland, France, and
Japan
Pan-European advertising using diaries of HH who subscribe to European cable
AGB: European firm operates people meter in Europe
INRA: INRABUSOmnibus survey all countries 10 times a year. 4 times in other
market. Face to face interview 1000 adults per country. Clients can choose their country.
Nielson: UPC household scanner panel in UK.
Henley Center for forecasting and research international
Frontiers: annual in-depth examination and forecast of consumer attitude and behaviour
across Europe.
HAKUHODOoperates in Japan; 100,000 recent Japanese prints. 6000 added/month
NIELSE TIES UP WITH WEBSHASHTRA for Audit of online advertising
ORG works in India: MARG: NRS
International marketing research manager should be aware of these sources and use them

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61

Issues in multinational survey

Question is which method is best. How do we reduce non-

response error?
MN survey is more complicated
The best method in one country is not in another
Different methods produce different results

Telephone interviews
Causes: low incidence of phones; cultures differ in their
willingness to give TI
Latin America: phones used for family talk
Islamic countries: females cannot speak with male
Japan: Difficult since males return late/ invasion of privacy
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62

 Mail surveys
Are widely used in EC, US, Canada, Japan.
Brazil: 30% mail not delivered
Carribean: produced excellent results
Personal Interviews
Suitable in: at home, central location; popular in Europe, Japan and
developing countries
Shopping malls only in US, Canada
Intercept interviews can be conducted everywhere
Computers
Only developed countries use
Japan: only NEC O.S.
Brazil: Shipping diskettes not allowed
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63

France

Netherl
ands

Sweden

Switzerl West
US
and
German
y

UK

Mail

33

23

22

40

Telephone

15

18

44

21

14

37

16

Central
Location

52

37

15

19

17

10

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64

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65

 Most parametric tests make assumptions

Samples are very large
Sample drawn from normally distributed population
(therefore, standard deviations are known)
Samples are independent and unbiased
But in many business situations these assumptions are

not valid. Therefore, nonparametric methods.

Nonparametric methods are easy, shortcut and
distribution free.
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66

Some Methods
One sample sign test (OSS)
Two sample sign test (TSS)
Rank-sum Test. The Mann-Whitney Test
Rank-sum Test. The Kruskal-Wallis Test
Test of Randomness - runs

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67

Steps
Formulate H0
Specify alpha
Select statistic (test)
Establish decision criteria
Compute and make decision

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68

One Sample Sign Test (OSS)

Assumption
We are sampling a CONTINUOUS SYMMETRICAL
POPULATION
Symmetrical means deviation of values above or below a
mean

The magnitude is not important

Three state recognized

22-Dec-14

Greater than (+)

Equal to (=)
Less than (-)
Dr. M S Subhas

69

 Steps
Check the values of samples against another reference
value
If sample value is > reference value, assign +
If sample value is = reference value, assign =
If sample value is < reference value, assign -
Count the number of +s and -s. (neglect 0 values)
Null Hypothesis: HO : P = 0.5 (i.e. the ratio of +s and s)
Alternate hypothesis: H1 : P =/ 0.5
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 For small samples i.e. if np or n (1-p) is <= 5, then

Binomial distribution is used for construction of

rejection areas.
Mean (under binomial) = np
And standard deviation = = sq.rt. np (1-p)
(x 1/2) - nP0
z
nP0 (1 - P0 )
+1/2 is used when x < nP0
-1/2 is used when x>nP0
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For large samples

Normal distribution is used as approximation to

Binomial. Then use

Normal variate

z
For OSST, P0 = 0.5

P - P0
P0 (1 - P0 )
n

X,P = actual proportion observed

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Examples of variables that can be

subject to NPM
Attitude: favaourable, unfavourable
Perceptions: bi-polarized i.e. good, bad
Even a ratio scale variable can be converted to bipolar

states considering a threshold value.

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Problem
Dr. Gangadharappa was studying TV viewing habits

among women in a city like Dharwad. He had

obtained data as below

Programs watched

Morning Afternoon

Evening Night

News: Eng
Hindi
Local

Depending on the programs watched, the total no of

minutes/week was calculated as given below:

970, 947, 968, 955, 963, 998, 969, 948, 927, 986, 956,
971, 977, 980 and 944.
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 He wanted to test if he can hypothesize that average

viewing time is 980 minutes per week at 1% level of

significance (alpha = 0.01)
OSST: H0: P0 = 0.5
n = 14 (?)
H1: P0 =/ 0.5
+ = 2; - = 12
Use binomial table for P= 0.5 and n =14
Find pr (n <=2) [0.006+0.001 = 0.007 < 0.001(alpha)
H0 is rejected
H1 is accepted
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Two Sample Sign Test

When data is available in pairs.
Each set of data can be associated with different

groups
Each pair of data is replaced by a + or - sign
depending on if
1st group data > 2nd group data +
1st group data < 2nd group data -

Alternative to small sample t test

Test similar to OSST.
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Example
Mr. Nosey a marketing manager (of product A) wanted

to test it against B from a small group of respondents.

Data generated is as shown on the next slide:
H0 : P = 0.5
Binomial (n=12, p=0.5)
H1 : P > 0.5
Pr (n>=10)

i.e. 0.016+0.003 = 0.019

Since Pr [(n>=10)= 0.019] <0.05
H0 is rejected
Therefore, A is preferred (rated higher)
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22-Dec-14

Respondent No

Sign

10

11

12

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TSS test
Going back to Dr. Gangadharappas research, if the

population sample respondents are further classified

into working women and non-working women given
the data as below can we say that the mean time spent
by working and non-working women watching
television (mts per day) is the same?
Working women: 60, 80, 81, 88, 58, 64, 78, 57, 80, 84,
72, 84, 65, 46, 75, 85, 79, 86, 85, 50, 78, 66, 89, 61, 68
Non-working women: 2, 44, 62, 82, 54, 39, 51, 76, 51,
66, 56, 77, 33, 59, 88, 76, 50, 76, 51, 25, 63, 22, 51, 64
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WW

60

80

81

88

58

64

NWW

46

75

85

79

86

85

SIGN

78

57

80

Pairing by random number

Tabulate : 19 +s , 6 -s
Pr (of getting 19+s in n = 25 and P0 =0.5
Since np0, and n(1-p0) >5, Normal approximation
z
z

(x 1/2) - nP0
nP0 (1 - P0 )

(19 1/2) - 25 * 0.5

25 * 0.5 * 0.5)

z 2 .4

For alpha = 0.05, Z0.025 = 1.96

Since Z(=2.4) > 1.96, H0 is rejected
There is difference between WW and NWW
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WW

60

80

81

88

58

64

78

57

80

NWW

33

63

56

39

62

76

76

54

51

SIGN

The same data can also be arranged thus:

No of + = 17, No of - = 8
Z = 1.60
Result: Accept Null hypothesis i.e P0 = 0.5 i.e. there is

no difference between the time spent on watching TV

by working women and non-working women.
Hence the example proves that Nonparametric
methods though easy are not always reliable.

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Rank-Sum Test: The Mann-Whitney

Test or U Test
The sign tests in general showed inconsistent results

because the magnitude of parameters were not given

adequate consideration.
In the following tests, this is taken marginally into
account by considering the entire set of data as one
group (irrespective of individual sets being different)

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Mann-Whitney Test
This test enables determine if the two independent

samples have been drawn from the same population.

Ranking as a technique has been used to test the null
hypothesis.
The two samples are pooled together and ranked.
I Group: sample size n1; sum of rank R1
II group: sample size n2; sum of rank R2

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 The U statistic is then defined as

U n1n 2

n1 (n 1 1)
R1
2

If the samples have come from same population or

identical population, then U has a sampling

distribution with
mean = n1n2/2 and
standard deviation = sq.rt. n1n2(n1+n2+1)/12

If n1, n2 > 8(large), the sampling distribution U can be

approximated to normal
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 We reject null hypothesis of two samples from identical

populations when
Z = [(U+/- ) mean]/standard deviation
z

(U 1/2) -

-Z/2
Z/2

Where alpha = level of significance

Continuity correction
+1/2 when U < mean and
-1/2 when U > mean
If n1, n2 <8.. Other tests to be used
See Siegel S NP Statistics for behavioural sciences
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Example
Marketing manager of Hindustan Peters Limited

wanted to check if two markets A and B were

significantly different in terms of purchase frequency
(No of times a product is purchased/month) for a
popular brand of soap at alpha = 0.01
The data is as under
A

0.30

0.43

1.34

0.18

0.41

0.47

0.15

0.38

0.82

0.49

0.45

0.10

0.16

0.33

1.09

0.87

0.99

0.9

0.37

0.94

1.11

0.56

1.05

0.46

0.50

0.86

0.24

0.52

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 Market A: Mean = 0.44

Market B: Mean = 0.75
Arrange data in order
0.10

0.15

0.16

Group
Rank

0.18

0.24

B
1

1.34
A

29

Ranks of A: 1, 2, 3, 4, 7, 9, 10, 11, 12, 14, 15, 19, 20, and 29

Ranks of B: 5, 8, 13, 16, 17, 18, 21, 22, 23, 24, 25, 26, 27,

and 28
If there are ties average the rank
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 Null hypothesis: Mean of Rank A = Mean of Rank B

= n1n2/2 = 15*14/2 =105
=sq rt n1n2 (n1+n2+1)/12 =22.9
Z = [(U +/- ) - ]/ (if n1n2>8)
U = n1n2 + n1 (n1+1)/2 R1

= 15*14 + 15*16/2 162 = 168

Z = 168-1/2-105/(sq.rt 15*14(15+14+1)/12

= 2.73
Z0.005 = 2.58
Therefore, reject H0
i.e. there is difference in Purchase frequency.
The purchase frequency of market B is higher. What does this

mean in terms of BB and demoprofile of the target customers

If usage is same (gms/person/day), purchase quantity in market A
is almost twice purchase quantity in market B.
If purchase quantity is same in A and B, then usage in A is about
half of the usage in B
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Rank-Sum Test: The Kruskal-Wallis

Test (H test)
Tests: H0: K independent random samples come from

identical populations having 1= 2==K

H1: Mean value of these samples are not equal i.e. 1=/
2=/=/K
As in Mann-Whitney test
Data ranked jointly
Ri = sum of ranks assigned to ni observations of ith

sample

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 Kruskal-Wallis is based on H statistic

2

k
12
R
H
[ i ] 3(n 1)
n (n 1) i 1 n i

where n n1 n2 ..... nk

Conditions
If ni >= 5
dof = K-1 (k = no of groups)
Then, H distribution resembles 2 for (K-1) dof
If H exceeds 2 for (K-1) dof at a given level of

significance, null hypothesis is rejected.

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Problem
A Marketing Manager wanted to test the efficacy of

three methods of sales promotion. Accordingly, he

selected three similar (representing three similar
customer behaviour) shops, i.e., X, Y, Z.
Each of these adopted different methods of sales
promotion and monitored their sales

22-Dec-14

Shop

Purchases per day

94, 87, 91, 74, 87, 97

85, 82, 79, 84, 61, 72, 80

89, 67, 72, 76, 69

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 Step 1: arrange all these sales in ascending order

Value

61

67

69

72

72

74

76

79

80

Group

Rank

4.5

4.5

Value

82

84

85

87

87

89

91

94

97

Group

Rank

10

11

12

13

14

15

16

17

18

Rx = 6+13+..= 84 (avg 14)

Ry = 55.5 (avg 7.92)
Rz = 31.5 (avg 6.3)

n1= 6, n2= 7, n3= 5; n = 6+7+5= 18

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k
12
R
H
[ i ] 3(n 1)
n (n 1) i 1 n i

12 842 552 31.52

H
[

] - 3 * 19
18 * 19 6
7
5
H 6.67

0.052 = 5.991 (for K-1 i.e. 3-1 dof)

H (6.67) > 5.991
Therefore, reject null hypothesis
i.e. promotion adopted in X is better than Y which is

better than Z
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93

Market Research on Shampoos

Age: ______ years; Sex : .______ (M/F)
How many times do you shampoo?
Daily
once in 2 daysthrice a week
Once a week
once a fortnight
any other
All respondents can be classified into groups
Group A < 15 years
Group B 15-25 years
Group C > 25 years
Usage can also be quantified as usage per day
Daily : 1.0; thrice a week: 0.43; once in two days: 0.5 etc
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 All responses can be further grouped as below:

Group

Usage, frequency, No of
times/day

Total

1.0; 0.5; 0.43;.

20

0.15; 0.07; 0.43;..

10

1.0; 1.0; 0.50; ..

20
Total 50

Use Kruskal Wallis H test

n1= 20, n2= 10, n3= 20; n = 50
dof = 3-1 =2
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k
12
R
H
[ i ] 3(n 1)
n (n 1) i 1 n i
2

12 R 1 R 2 R 3
H
[

] - 3 * 51
50 * 51 20 10
20

0.052 = 5.991 (for K-1 i.e. 3-1 dof )

If H > 5.991, we conclude that at 5% level of confidence

there is significant difference in usage of shampoo with

age.
The same data can be grouped on age as <25 and >=25 ,
then use U test.
The same classification can be used on Sex (male/female)
and test.
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 If usage of shampoo = f (sex)

= f(hairstyle/quantity)

= f(hair care)
One can also conduct partial analysis on usage
Assume x ml of shampoo used
Purchase frequency = [(x ml * no of times/month)/size
of bottle]
Data on question no 7 and 9, one can arrive at purchase
frequency.
Then use U or H as the case may be.
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 Ref. Q.10
Your most favored brand: A
Your past brand: B
Rate them on following
Cleaning ability 0-----10
Collect all these responses and prepare table and

use Binomial or normal

Respondent
s Number

Brand

Sign

Rating on cleaning ability

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QUESTIONS???

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