Marketing Research 2007

Tango meets Charlie
Tango Marketing Research Overview Charlie

Session 1
January 10, 2007 (Ver 1.0)
Devbrat Kumar
Friends, Meet Mr. Tango!!
Hi! I am Tango.
My family owns one of
the largest beverage
Tango businesses of the
country… We have
traditionally been into
making and marketing
aerated drinks..
Now I want to start my

own business…
The rule of the game is
that it has to be a
business related to our
family’s beverage
expertise..
January 10, 2007 (Ver 1.0) Devbrat Kumar
Mr. Tango needs help!!
Tango
I love oranges…. and

therefore I have
more or less decided
to make and market But….how do I go
an “Orange Juice” about it???
with a difference..

Mr. Tango is confused…..!!
????
?
How do I know if
my TG is aware
Different??
of my product?
? But what
And is liking it?
difference?
Who should
be my TG? Tango
Where
should I
What promote it
should be and how
the name of oft?
the
product?
How should
What I promote
should be What
it?
the looks should be
of the the price?
pack? And pack
Decisions required at every stage of
PLC..
Tango
Introduction Growth Maturity Decline

Mr. Tango needs to take decisions…
tion
rma
Info
Tango
feel…
G ut
“Inf ormat io
n is Power ”

Tango meets Charlie
Hello,
I am the CEO of a
MR firm called
“Chaplin
consultancy”!
Charlie Tango

Welcome to the world of Marketing
Research Mr. Tango…
Charlie Tango
Mark etin g Resea rch…

“the pr oces s of s ystema tica ll y
gath erin g, an aly zi ng an d i nt erpr eting
dat a p ertai ni ng to the co mpa ny 's
mar ket, cu stom ers a nd co mp etit ors,
with the go al of i mpr ovi ng mar ket ing
de ci sion s”
MR = Market Research ……… or
Charlie
MR = Marketing Research????
• Market research and marketing research are often

confused.
• 'Market' research is simply research into a specific

market. It is a very narrow concept.
• 'Marketing' research is much broader. It not only

includes 'market' research, but also areas such as
research into new products, or modes of
distribution such as via the Internet

PLC and MR
Tango Charlie
Session 2
January 10, 2007 (Ver 1.0)
Devbrat Kumar
Scope of Marketing Research:
•Need assessment through U&A: Usage and Attitude Study
•Concept testing: Product, Name, Packaging, Price, Ad…
•Actual Product testing
•Ad testing
•Test marketing
•Market segmentation Charlie

•Demand Estimation

•ATU (Awareness, Trial and Usage)

•Brand Health Monitor, Brand Track
• Ad effectiveness, Ad track
• Sales Forecasting
• Customer Satisfaction Measurement
• Other Stakeholders relationship assessment
Charlie

Charlie
• ATU
• Brand Health Monitor, Brand Track
• Ad effectiveness, Ad track
• Customer Satisfaction Measurement
•
Other Stakeholders relationship assessment… +
• Fresh rounds of U&A to identify new concepts
• New concept testing (Variants)….

Types of MR: Charlie
• Concept testing - to test the acceptance of a concept by target

consumers
• Brand name testing - what do consumers feel about the names of

the products?
• Segmentation research - to determine the demographic,

psychographic, and behavioural characteristics of potential
buyers
• Usage and Attitude study: When and how a product is

consumed? What other products are in the consider set
(Competing products)? What does a consumer feel about the
product?
• Consumer decision process research - to determine what

motivates people to buy and what decision-making process they
use
• Test marketing - a small-scale product launch used to determine

the likely acceptance of the product when it is introduced into a
wider market

• Demand estimation - to determine the approximate level

of demand for the product
• Pricing Research: To determine the optimum price level

for a product / service
• Price elasticity testing - to determine how sensitive

customers are to price changes
• Sales forecasting - to determine the expected level of

sales given the level of demand. With respect to other
factors like Advertising expenditure, sales promotion etc.

• Positioning research - how does the target market see

the brand relative to competitors? - what does the brand
stand for?
• Brand equity research - how favorably do consumers view

the brand?
• Advertising Effectiveness research - how effective are

ads - do potential customers recall the ad, understand
the message, and does the ad influence consumer
purchasing behaviour?
• Customer satisfaction studies - exit interviews or surveys

that determine a customer's level of satisfaction with the
quality of the transaction

• Mystery shopping - An employee or representative

of the market research firm anonymously contacts
a salesperson and indicates he or she is shopping
for a product. The shopper then records the entire
experience. This method is often used for quality
control or for researching competitors' products.

Types of MR
Tango Charlie
Session 3
January 10, 2007 (Ver 1.0)
Devbrat Kumar
• All of these forms of marketing research can be

classified as either problem-identification research
or as problem-solving research.
• A similar distinction exists between exploratory

research and conclusive research.

Types of Research Charlie
• By objective
• By tenure
• By user group
• By design (output/ analysis)
• By data source

Types of research: Charlie
• By objective:
• Exploratory
• As the term suggests, exploratory research is often
conducted because a problem has not been clearly
defined as yet, or its real scope is as yet unclear. It
allows the researcher to familiarize him/herself with the
problem or concept to be studied, and perhaps generate
hypotheses (definition of hypothesis) to be tested
• Conclusive
• Conclusive research is meant to provide information that
is useful in reaching conclusions or decision-making
− Descriptive
− Causal

So if I do a
research to
understand what is
the perception
about “Orange
Juice” in the minds
of different user
groups…. Will it be
… and if I do a
“Exploratory” in Tango research to
nature?
confirm my hunch
that children like
orange juice more
than any other
health drink… will
it be “conclusive”
in nature?

• By Tenure:
• Ad Hoc
• Focuses on specific marketing problems. They
collect data at one point in time from one sample
of respondents.
• Continuous/ Tracks
• Interview the same sample of respondents,
repeatedly.

I See… so if I do a
research now to
understand the
usage and attitude
of my Target
group… it will be … and if later on
“ad hoc”…. Right? (when my product is
launched) I form a
Tango panel of households/
individuals that would
continue to give
feedback to me about
my product and
competition products
at regular intervals….
It will be a
“continuous”
research?

• By User Group:
• Custom
• Custom research is work commissioned for a specific
organisation/ user.
• The commissioning organization holds the intellectual property
rights on reports and other materials generated by the project.
• The research design is often “tailored” to meet specific
requirements of the commissioning organisation
• Syndicated
• Syndicated research studies are developed by research firms,
which sell subscriptions to the studies to private and public
sector clients.
• These off-the-shelf products often contain trend information on a
variety of topics. Copyright and management of the studies’
content rest entirely with the market research firms.
• Subscribers are prohibited from distributing the information to
any other non-subscribing parties
Mr. Tango has understood…
If I commission a
research for my
exclusive use it
would be a custom But if I subscribe to the
research report of “retail audit”
survey conducted by
ORG MARG that projects
the sales/ shelf off-take
volume of all major retail
commodities (Brand
wise) across country… I
will be subscribing to a
“syndicated” study…
Tango Even my competition
would be having access
to this report if he pays
for it…!!!

Mr. Tango has a question…
Why do we need
“syndicated” stuff?
It is after all
“open”
information….?????
Tango
Syndicated research is
sometimes the most
cost-efficient option for
meeting research needs,
because the costs of
research are shared by
the subscribers…

• By Design:
• Qualitative
• Qualitative research involves analysis of data such as words
(e.g., from interviews), pictures (e.g., video), or objects (e.g., an
artifact).
• The aim of qualitative analysis is a complete, detailed description
• Qualitative data is more 'rich', time consuming, and less able to
be generalized
• Less Sample size
• Quantitative
• Data is in the form of numbers and statistics
• In quantitative research we classify features, count them, and
construct statistical models in an attempt to explain what is
observed
• Quantitative data is more efficient, able to test hypotheses, but
may miss contextual detail
• Often large sample sizes
If I just want to
understand what my
TG feels about the
benefits of an
“Orange juice” and if ….and if I want to do a
want a descriptive research where I want
report… I want a results in terms of
qualitative numbers such as what %
research.... Right? of my TG is … and what
% of my TG is aware of
“Tango”…and what % is
likely to purchase the
new orange juice…
Then it has to be
Quantitative in nature…
Tango

• By Data Source:
• Primary
• This type of research is based on information gathered by the
research agency first hand…
• The data collected is specific to the research need…
• Secondary
• This type of research is based on information gleaned from
studies previously performed by government agencies, chambers
of commerce, trade associations and other organizations.
• Secondary research occurs when a project requires a summary or
collection of existing data

Mr. Tango has understood…
If I commission a
study where 200
children are
interviewed to give But if I go to the internet
me insights about and do a research on the
their liking towards Juice market in India
Tango… it is a and also do a research
primary research on “Child psychology”….
It is a secondary
research…
Tango

Step in MR
Tango Charlie
Session 4
January 10, 2007 (Ver 1.0)
Devbrat Kumar
Let’s now understand
how do we go about
designing and
executing a research
project…
Charlie

MR Agencies in India
• IMRB International Three

Biggies
• AC Nielsen ORG MARG !
• TNS
• Indica Research
• Hansa Research Others
• Market Probe
• ……

Step 1: Research Objective
• Why are we doing the research?

• Sets the boundaries… defines the scope
• The foundation of research..
• Clear understanding of “What is expected out of the
research?”
• Unambiguously worded…
Research Brief
Charlie
Tango

Step 2: Research Design
Charlie
• Research design provides the framework/ skeleton

that holds the research project together.
• A design is used to structure the research,…………
• Determination of the type of research that needs to

be done..
• Qualitative or Quantitative or a mix….?
• What kind of experiment design?

Step 3: Sampling
• Sampling is required because we cannot do a

census every time…
• Sample should be adequate in size… Statistical

accuracy at a decent confidence level is the key to
sample size
• Sample should “represent” the universe..
•Sample Size Determination

•Sampling techniques

Step 4: Data Collection method/
Instrument
• Data collection methods: Charlie

• Observation
• Questionnaire

Step 5: Data Collection
• Time for action.. The real thing. Charlie

• The “input” to the whole mechanism..
• Always remember the concept: GIGO!!!
•Telephonic
•Web
•Face to Face
•Self Administered
•Mailers
•CATI
•CAPI

Issues in Data collection
Charlie
• Be careful of:
• Errors in selection of respondents
• Non-response errors (i.e. failure to get data from selected
respondents)
• Errors created by the method of seeking data/ Error in
stimulating the responses
• Interviewer’s bias
• Cheating!!!

Some quality checks:
Charlie
• Scrutiny
• Accompaniments
• Random Back-checks

Step 6: Data Analysis
• The “Throughput”….
• Let’s make best use of the “precious” data..
•Frequency counts
•Cross tabs
•Multivariate Charlie
•Content analysis
•Case studies

Step 7: Reporting
• The “Output”…. Ultimate test

• Should meet all our research objectives
• Meaningful…
• Precise…
• Interesting…
Charlie

Sampling
Tango Charlie
Session 5
January 10, 2007 (Ver 1.0)
Devbrat Kumar
Experiment Designs
• After only
• Before and after
• Before after with control group
• After only with control group
• Continuous Panel

Designing and executing a research
project
Charlie
• Seven steps:
1. Specifying research objectives
2. Research Design
3. Sampling
4. Data collection method/ Instrument
5. Data Collection
6. Data Analysis
7. Presentation/ Reporting

Step 3: Sampling
• Sampling is required because we cannot do a

census every time…
• Sample should be adequate in size… Statistical

accuracy at a decent confidence level is the key to
sample size
• Sample should “represent” the universe..
•Sample Size Determination

•Sampling techniques

Sampling requires:
• A universe for sampling… (Sample of what?)

• A suitable sampling method … (How?)
• An appropriate sample size…. (How much?)

Sampling methods
• Probability method:
• Every item in the universe has a known chance, or
probability of being chosen for sample…
• Non – Probability method

• … are those that do not provide every item in the universe
with a known chance of being included in the sample.
The selection process is, at least partially, subjective.

Probability methods
• Simple random sampling
• Stratified (random) sampling
• Cluster sampling/ Area Sampling
• Systematic sampling

Non Probability methods
• Convenience Sampling
• Judgment Sampling
• Quota Sampling
• Special forms:
• Group interview Sample
• Shopping mall intercepts
• Controlled panel

Sample Size Estimation
• Confidence interval /Margin of error:

• The measurement that I have taken falls within what % of
“actual” figure
• Confidence levels:
• Out of 100 times that I measure how many times my
measurement will fall within the permissible error margin.

Instrument and Scale
Tango Charlie
Session 6
January 10, 2007 (Ver 1.0)
Devbrat Kumar
What is an Instrument in MR?
• Measurement tool..
• Doctor’s stethoscope, BP machine, Thermometer…
so to speak..
• If the measurement instrument is faulty… ????
• Use of right scale is the key…
•Structured, Semi Structured,

•Open ended, Close ended
•Funnel, Inverted funnel Charlie
•Types of Scale

Introduction to Measurement Scales
• Why do we need a “Scale”?

• Simple!…..To “m eas ure”
• But remember to use the right scale….

• You cannot use a thermometer to measure BP….. Can
you?
Charlie

Types of scale
• Data comes in various sizes and shapes and it is

important to know about these so that the proper
analysis can be used on the data. There are usually
4 scales of measurement that must be considered
• Nominal Scale
• Ordinal Scale
• Interval Scale
Charlie
• Ratio Scale

Nominal Scale
Charlie
• Nominal Data
• classification data, e.g. m/f
• no ordering, e.g. it makes no sense to state that M > F
• arbitrary labels, e.g., m/f, 0/1, etc
• You are only allowed to examine if a nominal scale

datum is equal to some particular value or to count
the number of occurrences of each value. For
example, gender is a nominal scale variable. You
can examine if the gender of a person is F or to
count the number of males in a sample

Ordinal Scale
Charlie
• Ordinal Data
• ordered but differences between values are not important
• e.g., rank on a scale of 1..5 your degree of satisfaction
• You are also allowed to examine if an ordinal scale

datum is less than or greater than another value.
• Hence, you can 'rank' ordinal data, but you cannot
'quantify' differences between two ordinal values.
• For example, ratings of eating establishments where
10=good, 1=poor, but the difference between an
establishment with a 10 ranking and an 8 ranking can't
be quantified

Interval Scale
Charlie
• Interval Data
• ordered, constant scale, but no natural zero
• differences make sense, but ratios do not (e.g., 30°-20°=20°-
10°, but 20°/10° is not twice as hot!
• e.g., temperature (C,F), dates
• You are also allowed to quantify the difference between

two interval scale values but there is no natural zero.
• For example, temperature scales are interval data with

25C warmer than 20C and a 5C difference has some
physical meaning.
• Note that 0C is arbitrary, so that it does not make sense

to say that 20C is twice as hot as 10C

Ratio Scale
Charlie
• Ratio Data
• ordered, constant scale, natural zero
• e.g., height, weight, age, length
• You are also allowed to take ratios among ratio

scaled variables. Physical measurements of height,
weight, length are typically ratio variables. It is
now meaningful to say that 10 m is twice as long as
5 m. This ratio hold true regardless of which scale
the object is being measured in (e.g. meters or
yards). This is because there is a natural zero

Mr. Tango has a question:
What is a
“Natural
Zero”???
Some scales of measurement have a natural zero and some do not. For
example, height, weight etc have a natural 0 at no height or no weight.
Consequently, it makes sense to say that 2m is twice as large as 1m. Both of

these variables are ratio scale.
On the other hand, year and temperature (C) do not have a natural zero.
The year 0 is arbitrary and it is not sensible to say that the year 2000 is twice
as old as the year 1000. Similarly, 0 Degree Centigrade is arbitary (why pick
the freezing point of water?) and it again does not make sense to say that 20
degree C is twice as hot as 10C. Both of these variables are interval scale

Types of Ordinal Scales commonly used in
MR
Charlie
• Graphic rating scale
On an overall basis ,how are you feeling about this course? (Put a tick mark)
or
ng OK Superb!
Disgusti
•Three point
•Five point
•Seven point
•Ten point

Types of Ordinal Scales commonly used in
MR
Charlie
• Semantic Differential Scale
How do you feel about the various aspects of this course? (Put a tick mark)
3 2 1 0 1 2 3
High Low
Quality Quality
content content
3 2 1 0 1 2 3
High Low
utility utility
3 2 1 0 1 2 3
Extremely Extremely
interesting boring

Other scales
Charlie
• Likert Scale
• A typical test item in a Likert scale is a statement, the
respondent is asked to indicate their degree of agreement with
the statement.
• Traditionally a five-point scale is used, however many
researchers advocate using a seven or nine point scale
Ice cream is good for breakfast
• Strongly disagree
• Disagree
• Neither agree nor disagree
• Agree
• Strongly agree

Instrument Design Charlie
• What a typical “MR” Questionnaire must have…. (in

addition to the questions..)
• Introduction: Self/ Survey Organisation

• Purpose: Why is the survey being conducted and who
are the respondents
• How does it benefit you? ,…. The “Hook”/ (Incentive..)
• How did we find you? Where did we get your details
from? (If reqd.)
• We will keep everything secret….. All responses will
be aggregated
• How long this questionnaire will take to complete?
• May I proceed?

Instrument Design
• Determine what information is wanted
• Determine the type of questionnaire to use
• Determine the content of individual questions

• Is the question necessary?
• Does the respondent have the information requested? Can
the respondent remember?
• Will the respondent have to do a lot of work to get the
information?
• Will the respondent give the information?
• Are several questions needed instead of one?

Instrument Design
• Determine the type of question to use

• Open ended What do you like in
“Tango?
• Dichotomous questions Do you like the taste of

“Tango”?
1. Yes 2. No
• Multiple choice questions

How do you find the flavor
of “Tango””
• Determine the scale 2. Too sweet
3. Just the right amount
of sweetness
4. Less sweet

Instrument Design
• Decide on the wording of the questions

• Define the issue… for respondent’s clarity
• Use simple words
• Avoid ambiguous questions / Double barreled
• Avoid leading questions
Charlie
When was the last time someone asked

you what you really thought, cared about
what you said, and LISTENED to the
answer?
Would you vote for John Smith, a man

who has been known to break campaign
promises?
Instrument Design
• Decide on the question sequence

• Opening questions must win respondent’s interest
• Arrange questions in logical order.
• Funnel
• Inverted funnel

Instrument Design
Charlie
• Always pretest the questionnaire….

NPD
Tango Charlie
Session 7
January 10, 2007 (Ver 1.0)
Devbrat Kumar
NPD Research
• Concept development/ Positioning research

• Concept testing/ Product testing
• Product development

Research at the Concept development Stage:
Creativity.. t put
Lateral Ou
Thinking
….. Identify Motivation, Brand
Claim/Positioning, Creative
Strategy
Develop Alternative
Concepts for Product
ed:
qu es us positioning / Advertising
ec hni
ea r ch t
R es ons
How to Best Express
u s si Key Claim/Idea
p Disc
Grou ue
c h niq
ing t e
e r past
La dder fr o
h
m ot e and
d i nputs ke Usag he TG
i t
… an arches l among
rese Studies
t t itude
A
Illust
ratio
n
Laddering technique…
Spend the saved money on something you wanted for long

You feel more energetic
You can therefore Save money

It refreshes you when you are tired
go that extra mile
No need to go to Doctors
Special pack to keep it fresh
Good for Health
Natural Juice/
Let’s develop Tastes Good TangO No artificial flavoring
Orange Better performance
these chains??
Juice
Pure/ No Contamination Successful
Orange
Choice of those who are pure at heart/
Make you pure

Research at the Concept test/ pretest stage:
How do I decide
which of
a number of
creative ideas
to develop?
Concept
A
Tango Concept
B
Concept
C

Research at the Product development/ pretest stage:
I say my orange
juice is “Tangier”
(Sweet with a hint
of sourness) than
others…. It has a
taste that is TangO
Tango Orange
stronger than Juice Real
others…. Orange
Juice Tropicana
Orange
Juice

Research at the Product development/ pretest stage:
But how do I
know if my
product is really
perceived as
“different” from
others…
TangO
Tango Orange
Juice Real
Orange
Juice Tropicana
Orange
Juice

Research Designs For Product/ Concept
Testing
• Monadic tests
• Paired Comparison tests
• Sequential Monadic tests

Testing
• Monadic Tests.
• In monadic testing, a respondent tests a single
product and provides an evaluation of that product.
Data collected typically includes variables such as
purchase interest and ratings on attributes. If there is
more than one product to be tested, matched groups
of respondents would test each product, with the data
collected from each group being compared to each
other
Product Product
A B
Evaluation Evaluation
Testing
• Paired Comparison Tests.

• In a paired comparison test, respondents use two
products in sequence, with no questioning in
between. After both products have been used, they
are asked to rate each and state a preference.
Because questions are not asked until both products
have been tried, the evaluation of a product is always
in the context of a comparison to the other.
Product Product Product Product

A B A B
Testing
• Sequential monadic:
• In this design, each respondent evaluates two
products/concepts (he or she sees one concept and
evaluates it, then the second concept… and evaluates
it).
Concept Concept
A A
Concept Concept
B Evaluation B Evaluation

Test Locations and Blind vs. Branded?...1
• Regardless of the design, several additional decisions must be

made when outlining the test methodology.
• One question is should the test product or products be placed

with respondents to be used at home or in the workplace or
other relevant location, or should the product(s) be tested at a
central location (often abbreviated as "CLT" for "central location
test")?
• The in-home or in-office/workplace usage is certainly more

realistic, and provides greater face validity. But the CLT allows
for much superior control of the testing process, which hopefully
results in a reduction of non-sampling error

Test Locations and Blind vs. Branded?....2
• Another is should the product(s) be tested blind, meaning without

respondent knowledge of the brand name, or should the brand
name be obvious?
• Blind or unbranded tests will allow for measurement of the true

physical performance of the product, unencumbered by the equity
associated with brand name.
• A familiar and well regarded brand name can produce a favorable

"halo effect" on the evaluation of the product. In a sense, product
performance can become more a function of the brand image,
than the product itself.
• For this reason, claims tests of product superiority over the

competition are almost always blind. However, branded testing is
more realistic, and offers increased predictive validity vis-a-vis a
blind test.

A typical product testing exercise…
1. Stimulus development: Make proototypes/ test products

that can be given to the evaluator
2. Decide on the research method: Qualitative or
Quantitative
3. Approach the “sampled” TG representatives (either in
groups or one to one) and show them the products.
4. Show the products (Monadic, Sequential monadic
Design or Paired comparison..)
Rotate the order of giving the products to avoid “order bias”
5. Record feedback: Statements or Ratings/ Ranking

Product Development:
Conjoint technique
• Conj oi nt analys is, also called multiattribute

compositional models..
• The objective of conjoint analysis is to determine

what combination of a limited number of attributes
is most preferred by respondents. It is used
frequently in testing customer acceptance of
new product designs

Product Development:
Conjoint technique
• Process
• The basic steps are:
1. select features to be tested

2. show product feature combinations to potential customers
3. respondents rank, rate, or choose between the combinations
4. input the data from a representative sample of potential
customers into a statistical software program and choose
the conjoint analysis procedure. The software will produce
utility functions for each of the features.
5. incorporate the most preferred features into a new product
or advertisement

A typical MR agency set up:
… and last but not

the least… let me
introduce you to
my team…
Charlie

CEO
Survey Programming team
Client
Questionnaire set up/ design
Researchers Field Team

Client interface Identification of the respondents (Panels etc)
Research Design Quality and Quantity of the sample/ data
Questionnaire finalisation collection
Research Proposal (Time/ cost etc.)
Analysis plan
Report writing
Presentation
Analytics Team
Data cleaning
Charting Team
Tabulation
Charting of the tabs as per requirement Advanced Analytics on the data

Pricing Research
Tango Charlie
Session 8
January 10, 2007 (Ver 1.0)
Devbrat Kumar
SEC Grid
Il li te Sc hool up to Sc hool SS C/ So me col lege Gradua te/P ost
-rate 4 yea rs 5- 9 yea rs HSC bu t not gr aduate
ED UC AT ION  gr aduate
OCC UP AT ION Gener al Pr ofessi onal
1 2 3 4 5 6 7
Unski lled W or ke r 1
E2 E2 E1 D D D D
Unski lled
Sk ill ed W orker 2 E2 E1 D C C B2 B2
Pe tty tr ad er 3 E2 D D C C B2 B2
Sh op ow ner 4 D D C B2 B1 A2 A2
Bu si nessm en/I nd ustr ial is t
(No. of em pl oy ees)
- Non e 5 D C B2 B1 A2 A2 A1
- 1- 10 6 C B2 B2 B1 A2 A1 A1
. 10+ 7 B1 B1 A2 A2 A1 A1 A1
Se lf em pl oye d pr ofess io nal 8 D D D B2 B1 A2 A1
Cle ric al /Sal esm an 9 D D D C B2 B1 B1
Su per vi so ry lev el A D D C C B2 B1 A2
Off ice rs /Exec utive s
- Juni or B C C C B2 B1 A2 A2
- M id dle /Seni or C B1 B1 B1 B1 A2 A1 A1
Pricing Research
TangO
Orange
Juice
How do I decide on the

pricing for my orange
juice? Should I make it a
cheap one… or should I
charge a premium?... and
then by how much?
Is it again based on “gut
feel”?

Pricing Research Techniques
• Modeling historical data

• Experimentation/ Simulation Non Survey
methods
• PSM/ Van Westendorp method

• WTP/ Gabor - Granger method
• BPTO/ Brand - Price Trade Off
• Conjoint Analysis (..already covered in the course) Survey
Methods

Modeling historical data
• It becomes a good option as categories mature and longer period of

historical data become available
• This approach is potentially very useful – the idea is to bypass research

procedures that use consumer’s answers to questions to predict
behaviour.
• Instead, we look at what people have actually done in the past.
• It is particularly helpful in resolving questions on category elasticity - it

may be difficult for consumers to tell us how much more salt,
toothpaste, or airtime they will use if the price has reduced.
• ….a technique that attempts to model sales as a function of advertising

expenditure, price, and other variables.

Experimentation/ Simulation
• Yet another approach that is possible: to carry out

experiments in a setting that is as close to real life
as possible – to get consumers to part with money.

PSM (Price Sensitivity Meter)
• The PSM was developed by a Dutch Economist, Van

Westendorp, in the mid 1970s. It is actually a refinement
of a technique proposed by Stotzel in the early 1950s.
• Typically, the respondent is shown a card with a wide

price range (from the absurdly low to the outrageously
expensive.
• Some researchers recommend 31 price points, with the

current/ proposed price right in the middle, and intervals
at about 5% of the proposed price.

PSM (Price Sensitivity Meter): Questions
asked
• The four questions asked are :
• at which of these prices does the product become cheap (or

‘is a good bargain’)
• at which price does it become expensive
• at which price does it become so expensive that you will no

longer consider buying
• below what price does it become so cheap that you would

be concerned about its quality

PSM (Price Sensitivity Meter): Graphs
• We can cumulate the answers that we get – because if

someone finds a product to be too expensive at Rs.15,
she will also find it expensive at Rs.16.

PSM : Examining the results…1
• We can examine the graphs in conjunction.
• The intersection of ‘cumulative too expensive’ with ‘cumulative too cheap’
yields the optimal price point for the consumer. At this point, the
proportion that find the product ‘neither too cheap nor too expensive’ is
maximized.

• The intersection of ‘cumulative expensive’ with ‘cumulative cheap/ good
bargain’ is something like a manufacturers’ optimum’ At this price point,
we are maximizing the proportion of those who consider the product to be
neither expensive nor a bargain – i.e. the goal is to be thought of as ‘not
expensive’ without giving anything away.

• It is customary to treat the range marked out in the diagram as the ‘acceptable
price range’. The justification for the ‘lower threshold’: below this price, the
proportion who consider it to be too cheap begins to exceed the proportion who
consider it expensive. Similarly, the justification for the “upper threshold” : beyond
this price point, the proportion who consider it to be ‘too expensive’ exceeds those
who consider it to be cheap/ a good bargain.

• You can create a kind of ‘demand’ curve from the PSM by subtracting
‘cumulative too cheap’ plus ‘cumulative too expensive’ from 100% (i.e. “
proportion finding price acceptable”).
100- (Too exp + Too Cheap)
100
80
60
40
20
8 9 10 11 12 13 14 15 16 17 18 19 20

Gabor-Granger method/ WTP
• … a series of prices is read out in a random order, and the

respondent asked whether she would buy at this price.
3. How likely is it that you will buy a 200 ml pack of Orange juice for Rs. 10?

Gabor-Granger method/ WTP
• … analysing the result….

WTP Tolerance
Zone
100 98 94
85
45
20
Rs. 8 Rs. 9 Rs. 10 Rs. 11 Rs. 12 Rs. 13

BPTO:
• The respondent is shown an array of brands (or models). She is asked
to make a choice. The chosen product’s price is raised, and then a
choice made again.
• The choice tasks continue till some criteria is met:
• till the respondent says ‘I will not purchase any of these items’
• till a minimum number of choice tasks is completed (eg. ‘twice the number
of price level in the BPTO problem’)

BPTO:
• The brands could be a fixed set of major brands, or based on

the respondents’ evoked set.
• It is essential, however, that a minimum number of brands
should be part of the array even if the respondent has not tried/
does not know about many brands – because you could end up
with a low price elasticity simply because there is nothing else to
turn to.
• Conventionally the initial array preserves relative price

differences, and begins at price levels below the market price.

Brand Health
Measurement
Tango Charlie
Session 9
January 10, 2007 (Ver 1.0)
Devbrat Kumar
Brand Tracks: Brand Health Monitoring
• ... is a periodical survey of brand health and brand image
• THE GOAL IS TO HELP THE MARKETER TO:
• get feedback on the effect of current marketing activities on

brand image, purchase intentions etc.;
• obtain information about consumers reactions to
competitors' marketing activities;
• direct the marketing efforts towards more precise target
groups;
• take effective counter actions to competitors marketing
activities;
• to keep the price and quality equilibrium;
• make further marketing plans based on the information
above

• COMPREHENSIVE BRAND TRACKING STUDY

COULD INCLUDE
• Consumption and purchase habits of the product

category
• Awareness and trial of the brand under
consideration
• Motivators for the trial and Satisfaction with the
brand
• Purchase Intent of the brand
• Advertising awareness and impact of ads
• Image of the brand

Brand Health Measurement Model
Input
Process
Communication
Output
Ad & Brand
Saliency
Sales
Media Revenue
TV / Radio / Print /
Market Share
Outdoors / PoP Brand Positioning
Dealer Reco
Intention to Purchase
/ Consideration Schemes / Promos
Word of Mouth /
Advocacy
Brand Loyalty /
Equity
January 10, 2007 (Ver 1.0)
Devbrat Kumar
There are so many

brands available in the
market across product
categories… think of a
brand…. Any brand…..
Name of which brand
comes to your mind first?
• Brand Salience
• Brand salience refers to the 'share of mind' your brand has, or how
big/prominent it is in the mind of customers.
• The more salient it is the higher the probability that your brand will be
thought of at any point in time.
• Brand salience differs from brand image in that it is independent of what

consumers specifically think about your brand. For example, two customers
may associate your brand with totally different attributes but they still can
have the same level of salience.

When you think of
refrigerators… name
of which brand comes
to your mind first?
• Brand Recall: (Unaided and Aided)

• Brand Recall is the extent to which a brand name
is recalled as a member of a brand, product or
service class
• Common market research usage is that pure

brand recall requires "unaided recall". For example
a respondent may be asked to recall the names of
any cars he may know, or any whisky brands he
may know.

Recall
• We can divide recall into both "unaided" and "aided" recall.
• "Aided recall" measures the extent to which a brand name is

remembered when the actual brand name is prompted. An
example of such a question is "Do you know of the "Honda"
brand?"
• In terms of brand exposure, companies want to look for high

levels of unaided recall in relation to their competitors. The
first recalled brand name (often called "top of mind") has a
distinct competitive advantage in brand space, as it has the
first chance of evaluation for purchase

Tracking TOMA and ITP….
TOM Brand Awareness
Rolling - 8 Weekly Data Patna

TOMA
J J A S O N D J F M A M J
43 47 45
42 40 41 45% Airtel
43 46 37
41 37 37% Reliance
30 34 33 35 36
24
19 21
23 17 14 15
17 15% BSNL
5 3 13 2
ITP 2% Tata
1.9 4 5 1.32 2
3196 6194 GRPs
Airtel
3859 1099
Reliance
1773 1220
Tata
2007 ABC PAT200

*mq2a
Correlation
Based between
on ecnt = Any Salience
of (Bhuwaneshwar) and and SoV
ui = Any of (Intend
Rolling 8 weekly data
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
100 TOMA
80
60 51 54 54
47 50 50% Airtel
49 52
40 46
26 24
20 26 26 20 20 24% Reliance
19
0
7583 GRPs
500 High spends did
not affect
Airtel’s A_AG.GRP
0 mindshare Reliance’s TOMA
SOV 9390
58 GRPs has increased
1000 positively
51 only when the
45 A_BHU.GRP brand
0 35 38 sufficiently
41 33 41
36 9111 GRPs
1000 27
raised spends
33 24 A_BANG.GRP
19
0 13 13
12 17 18 9 9111 GRPs
1000 5 4
2
A_BANG.GRP
0
Jul Aug
A'06 Sep
S'06 Oct
O'06 Nov
N'06 Dec
D'06 Jan
J'07 Feb
F'07 Mar
M'07 Apr
A'07 May
M'07 Jun
J'07
2006 2007 ABC O100

It is not just SOV… it is also about being
effective…
The tw o b roa d com ponents
Media Weights Advertising Copy

…. what drives TOMA movements …
1. High share of voice
4. Creating Buzz in
the Market TOMA 2. Good creative
3. Support from other media

..Tracking reasons for intending a
brand…
*mq2g4e
Based on ecnt = Any of (Patna) and ui = Any of (Intender) And
100
80 77
68
72 62
60 62% Network Strength
48 50 50% Price/Scheme/VFM
40
24 35
20 19 26 18 16 18
20 18 18% Recommendation
11 3 16
0 0.0 2 3
11458 GRPs
1000
A_AH.GRP
0
9390 GRPs
1000
A_BHU.GRP
0
9390 GRPs
1000
A_BHU.GRP
0
9390 GRPs
1000
A_BHU.GRP
0
J J
January 10, 2007 (Ver 1.0)
A S O N D J F M
Devbrat Kumar
A M J
…and some more insights….
ITP
*mq2f_all
Based on ecnt = Any of (Patna) and ui = Any of (Intender) and m
100
Brand intended for both network and Price/VFM..
80
65 64 61
60 60 56 45 48 43
40 47 43% Reliance
43 41% Airtel
37 35
23
20 13 17 14 22 15 14 13 12% BSNL
17 14 12 4% ANY TATA
6 12 4 0.3% Aircel
0 7 5 5 0.3
0.0 3 3
11458 GRPs
1000
A_AH.GRP
0
8646 GRPs
gery
D'05 IMAGE PROFILES - mq7x_1_bm
Imagery Airtel Hutch BSNL Reliance
Tata Indi
Diff.com
Airtel H
Market leader 2 0 51 4
Market leader 0 -2
0 -3
Becoming popular 1 0 -4
Becoming popular
61 0 -4 2
For someone like me -1 0 For someone
52 3 like me -1 -1 0
Recommended by friends 0 1
Recommended
54 1by friends -2 00 -1
Brand I can trust -1 0 51 Brand2 I can trust-1 -2 0 -1
Charges accurately -3 -1
48 Charges5accurately -1 -4 0 -1
Cares for the customer 0 0 Cares
52 for the1 customer 1 0 -1 0
Responds immd to comp -1 1
Responds
52 immd1 to comp 0 00 -1
Largest network coverage -2 -1 Largest network 56 12
coverage 0 -41 -4
Wide roaming coverage -5 -2
48 Wide roaming 13 coverage 2 -3 -3 -1
Easy to get through 2 0 Easy to 1 get59through 2 -23 -2
Ads that I like 6 4 -17 Ads that I-8like64 5 12
Is innovative 0 3 51 -5 Is innovative 0 1 1
Offers the latest tech 0 1 Offers
53 -6 the latest tech 2 2 2
Good range of VAS 4 1 -5 range
Good 57 of VAS 3 -15
New schemes frequently 1 -3 New schemes -9 frequently 3
58 0 5 -1
Good value for money -4 -2 49 Good value 5for money 0 -2 1 -1
ase: brk1 =Base:
Any Intenders (9056) and ui
of (`Apr'07 to Jun'07`) (8790)
= (7347)
Any of (`Intender`) (8947) (9005) (13
(16810)

Brand Image
Brand Image - INTENDERS - PATNA
Airtel BSNL Reliance
Average endorsements
Airtel BSNL/MTNL Reliance
Market leader 3 -1 -3
Becoming popular 3 -3 0
For someone like me -5 0 4
Recommended by friends 0 -1 1
Brand I can trust -5 3 1
Charges accurately -4 3 1
Cares for the customer -2 -1 4
Responds immd to comp 0 -1 2
Largest network coverage 0 3 -3
Wide roaming coverage -5 9 -6
Easy to get through -2 2 -1
Ads that I like 9 -2 -8
Is innovative 1 -2 2
Offers the latest tech 2 -3 1
Good range of VAS 6 -4 0
New schemes frequently 0 -1 1
Good value for money -3 -1 4
Base: AMJ'07 (633) (633) (632)

Customer Satisfaction
Measurement
Tango Charlie
Session 10
January 10, 2007 (Ver 1.0)
Devbrat Kumar
Facts about Customer Satisfaction
Myth
We Track Customer Satisfaction Through Our Complaint System
Fact
• Complaints Do Not Track Customer Satisfaction

Very Well
• Unrepresentative Set of Customers
• Unrepresentative Set of Problems
• Most Dissatisfied Customers Don’t Complain, They
Walk

Facts about Customer Satisfaction
Myth
Customer Satisfaction Influences Business Performance
Fact
• Loyalty/ Commitment is a stronger predictor of

profitability rather than satisfaction

Why should one worry about customer
retention?
• Customer lifetime value.

• Every interaction you have with a customer should
be done on the basis that their value to you is the
total of all the purchases they will ever make, not
that one sale.
•For example your most valuable customers are

probably not those who make the biggest purchases,
they’re the ones who come back again and again.
•This way of thinking also allows you to consider

marketing approaches that don’t require you to make
back the cost of acquiring a customer in a single
sale.

Why should one worry about customer
retention?
• The cost of acquisition.
•It has been demonstrated that it is up to 20 times

more expensive to acquire a new customer than it is
to keep an existing one.
•A traditional sales approach can be likened to

pouring new customers into a bucket with a hole in
the bottom
•…. the weaker your levels of customer retention the

larger the hole.

The Loyalty Measures..
..What am
I going to
do about
it? BUSINESS
Behavioral SUCCESS
Loyalty
Recommen LOYALTY
Continue Increase
d
Commitmen
t
What do I
feel about
Emotional you?
Loyalty

Perception and Attitudes..
BUSINESS
SUCCESS
LOYALTY
Recommend Continue Increase
Commitmen
t
Perceiv
PERCEPTION
ed
Perceiv S&
value Related
ed Price ATTITUDES
perceiv Images
ed
Quality

Every interaction is important..
• “The mos t competit iv e companie s are th os e tha t rec ogniz e that ev ery
inter act ion a cus to mer ha s with the ir pr odu cts and serv ic es is a
reflec tion o n t heir q uality ”

Transactions and Experiences lay the foundation of
this relationship..
BUSINESS
SUCCESS
Recommen LOYALTY
Continue Increase
d
Commitme
nt
Perceiv
PERCEPTIO
ed
Perceiv value&
NS Related
ed Price ATTITUDES
perceiv Images
ed
Quality
Customer Experiences
After Sales Billing and Interaction
Pre Sales Products Delivery Service Accounts with People

Loyalty Segmentation:
High
“I feel good about this Ac ces sible Trul y Loyal “I feel good about this
relationship … but I cannot relationship and I have
guarantee a sustained every intention to
relationship… there are 0 61 continue…”
others also offering good
Attitude
deals after all…”
25 14
High Risk Trapped

Behavior High “I do not feel any emotional
Low
attachment…. I don’t feel
like it but I have to continue
with this relationship… “
“I do not feel any
emotional attachment…. Theoretical model framework is credited to
Dick and Basu, Journal of the Academy of
And I also do not see Marketing Science, 1994
myself continuing with
this relationship..” Matrix classifications are based on a
proprietary statistical algorithm developed
by Walker Information
SERVQUAL MODEL

SERVQUAL:
Quality Dimension Samples of questions to ask
Tangibles: • Are facilities attractive?

Appearance of physical facilities, equipment, • Are staff dressed appropriately?
personnel, printed and visual materials • Are written materials easy to understand?
• Does technology look modern?
• If a response is promised in a certain time, does

it happen?
Reliability:
• Are exact specifications of client followed?
Ability to perform promised service dependably
• Are statements or reports free of error?
and accurately
• Is service performed right the first time?
• Is level of service same at all times of day and for
all members of staff?
• When there is a problem, does organization

respond to it quickly?
Responsiveness:
• Are staff willing to answer client questions?
Willingness to help customers to provide prompt
• Are specific times for service accomplishments
service
given to client?
• Are public situations treated with care and
seriousness?

SERVQUAL:
• Can staff provide service without fumbling

around?
Competence:
• Are materials provided appropriate and up to
Possession of required skill and knowledge to
date?
perform servide
• Can staff use the technology quickly and
skillfully?
• Does staff appear to know what they are doing?
• Does staff member have a pleasant demeanor?

• Does staff refrain from acting busy or being rude
Courtesy:
when clients ask questions?
Politeness, respect, consideration and
• Are those who answer the telephone considerate
friendliness of contact personnel
and polite?
• Do staff observe consideration of the property
and values of clients?
• Does service organization have a good

reputation?
Credibility:
• Do staff members refrain from pressuring the
Trustworthiness, believability, honesty of the
client?
service provider
• Are responses given accurate and consistent with
other reliable sources?
• Does the organization guarantee its services?

SERVQUAL:
• Is it safe to enter the premises and to use the

equipment?
• Are documents and other information provided
Security:
for the client held securely?
Freedom from danger, risk, or doubt
• Are use records of clients safe from unauthorized
use?
• Can client be confident that service provided was
done correctly?
• How easy is it to talk to knowledgeable staff

member when client has a problem?
Access: • Is it easy to reach the appropriate staff person
Approachability and ease of contact. • in person?
• by telephone?
• by email?
• Are service access points conveniently located?
• When client contacts service point, will staff

person listen to their problem and demonstrate
Communication: understanding and concern?
Listening to customers and acknowledging their • Can staff explain clearly the various options
comments; Keeping customers informed in a available to a particular query?
language they can understand. • Do staff avoid using technical jargon when
speaking with clients?
• Does staff member call if a scheduled
appointment will be missed?
SERVQUAL:
• Does someone on staff recognize each regular

client and address them by name?
Understanding the Customer: • Do staff try to determine what client's specific
Making the effort to know customers and their objectives are?
needs. • Is level of service and cost of service consistent
with what client requires and can afford?
• Are service providers flexible enough to
accommodate to client's schedule?

Kano’s Model:

Media Research
Tango Charlie
Session 11
January 10, 2007 (Ver 1.0)
Devbrat Kumar
Here is the ad…. Please
place it strategically in
electronic and print”…. Budget
$$
The ads should reach
maximum potential buyers
Brief
and should improve the
recall of my product”..
Media Planner
Where should I place the

ad? Which Channel? Which
Product Manager program? Which time slot?
Which magazine? Which
Brief News papers? What
locations?
“I want an ad
for my
Media Researcher
product that What is the “reach” of our
brings forth channel/ publication? Which
its true Creative program is viewed most? Who
value”.. reads what? What are the
It should viewing/ reading habits of working
make my men/ women, kids, housewives
product sell”.. etc,.?
“I need to prepare a story

board that relates perfectly
to the Target group…”
Ad Man “I need to ensure that the ad Print Agencies TV Channels
that I make is effective”

Media Researchers’ Kitty:
Media Researcher
Ad Man
Creative Research: Ideation for creative

Story board testing
Ad pre test: Pre launch
Ad effectiveness measurement: Post launch
Ad track

Media Researchers’ Kitty:
Print Agencies TV Channels
Media Researcher
Media Planner
Syndicated Readership surveys (IRS, NRS)

Syndicated Viewership surveys (TAM)
Media habit surveys (Customised) for TG

Television Audience Measurement
• Television audiences are measured in two main ways:

• using diaries,
• and using meters.
• With television (unlike radio), the survey unit has usually been
the household, not the person.
• That's because most households have had only one TV set, and
people have usually watched together.
• The mainstay of TV diary or meter results is still the "rating" -

the percentage of all households that viewed a particular
program

Measuring TV audiences with diaries:
• A diary survey is done by choosing a random sample of

households, and sending interviewers to visit those households.
• When a household agrees to co-operate in the survey, the

interviewer usually leaves one diary for each TV set in the
household
• A diary normally runs for one week or two weeks.
• Often there are several "practice days" at the beginning that are
not used to generate statistics

• The idea is that the diary is placed on top of the TV set,

stays there for a week, and whoever watches a program
on that set fills in the diary to show what channels they
watched, at what times

• Each double-page opening of the diary usually has a large

table.
• The rows show all the quarter-hours of the day, while
there is one column for each TV channel in the survey
area.
• People indicate their viewing by ticking the box for the
channel they watched, during each quarter hour.
• Such a diary doesn't show which people in the household
were watching: the tick only means that somebody was
watching.

• Another way of doing this is to enter in the box for the

channel and quarter-hour not a tick but a number
showing how many people were watching.
• A still more elaborate way is to write the initial of each
viewer in the box.
• On the front page of the diary is recorded the fact that
(say) person A is a man aged 35-44, B is a woman aged
25-34, and so on

Though this sounds

simple enough….
The results are often
messy and people
don't try very hard to
co-operate…

Measuring TV audiences with meters:
• Unlike a diary survey, where the respondents are

different each week (or each two weeks, for a 2-week
diary) meter surveys use panels of people for months at a
time - anything from 6 months to 2 years.
• That's because of the expense of installing meters. When

a household agrees to co-operate (usually for some
reward, such as guaranteed maintenance for their TV
set), a technician comes to the home and wires a meter
to each TV set.

Measuring TV audiences with meters:
• In countries where most homes have a connected

telephone, the meter is also connected to the phone line.
• The meter automatically records the channel the TV set

is tuned to, minute by minute.
• In the early hours of the morning, the research company's

computer automatically dials the meter, which sends
that household's viewing data for the previous night…

Peoplemeter:
• Typically, the peoplemeter sits on top of the TV set.
• A common type of peoplemeter has 8 lights on its front,

numbered 1 to 8. The meter has its own remote control,
with 8 buttons, one for each person in the household, and
the others for their occasional guests.
• So when button 1 is pressed, that tells the meter that

(say) a man aged between 35 and 44 is watching. Guests
are prompted to enter their gender and age group.

Peoplemeter:
• When the TV set is switched on, all the lights start flashing.
• It may also flash up the message "Who is present?"
• As this is annoying for the viewers, they are likely to press their
personal buttons to stop the flashing.
• When the TV set is on, and nobody has pressed a button for about 45
minutes, all the lights start flashing again.
• If nobody then presses a personal button, the meter assumes they're

all out of the room, and doesn't record any viewing.
• But if at least one person presses a button, the meter keeps

recording that viewing

Measuring TV audiences with meters: Indian scenario
• A joint venture company between AC Nielsen & Kantar Media

Research/ IMRB, TAM Media Research is the TV Viewership analysis
firm of India
• The viewership cell runs what is one of the largest Peoplemeter TV

Panels in the World with more than 20,000 sample individuals
representing all the Class-I towns (towns with population more than
100,000) polled every week for their Viewership habits!
• This division measures television Viewership of audiences for the

250-plus TV stations operating in India
• 10000+ peoplemeters
• TAM does not claim to measure TV viewing All India •Covers Metros
+ 17 Small towns with population of 1 to 10 lacs •The markets
covered account for 29 million TV Homes

Television Audience Measurement: How it
works?

First Step: The Establishment Survey
• This consists of a large survey and is the baseline study for TAM.
• Typically consists of a large no. of face to face interviews to
collect information on all parameters related to TV viewing.
• This information is used to understand the universe size e.g. how
many C&S homes in a market use it as a framework for panel
recruitment and later on to control the panel in terms of ensuring
that the panel represents the universe.
• The TVE is conducted every six months and is concurrent with
the National Readership Survey

Second Step: The Panel
• The actual homes that will have the Peoplemeter installed are
selected applying the ‘Randomized Panel Selection’ package
that looks at matching the profile of a home with that of the
universe, apply weights to each of these homes and iterate till a
perfect match is found.
• TAM represents all markets upto the urban agglomeration limits
(as defined by Census of India) and not only till the municipal
limits to ensure that the panel is spread across the market under
scrutiny

• The entire sample is split equally among the 4 SEC’s. (A,B,C and D)
• Thus a sample of 100 would be split as 25 each in four ‘cells’ representing the
four SEC’s.
• These four cells are then again split by access to C&S thus giving eight cells.
This is further split by the four age groups and two sex groups.
• TAM represents markets as either Metro or ‘Rest of State’. For e.g. Mumbai and
Rest of Maharashtra – the latter data coming from five towns; three of these
towns are those with a population of 5 lakh+ and two with a population of
1lakh+.

• Panel Control:
• The Panel is regularly checked for compliance.
• Essentially the panel has to represent the universe and hence TAM has
panel control parameters to ensure that the panel is truly
representative.
• For instance, one of the panel control parameters is whether there is
more than one TV set in a home and hence in Delhi where ~11% of
homes have more than one TV set, a proportionate no. of Panel Homes
are selected with this profile

Third Step: The Peoplemeter and training
• The homes selected by the above process are revisited and invited to join
the panel.
• Peoplemeters are installed on every TV set in the panel home. Each meter
is capable of accurately monitoring, every second, 24 hours per day, 365
days per year, what is being viewed on each TV set, by whom, and of
storing this data.
• One meter in each home is then enabled to transmit all the stored data to
the Production Centre, by means of the family's telephone line, or a
dedicated cellular (analogue and GSM) telephone line.
• After agreements such as the confidentiality agreement have been signed
between the panel home and TAM, intensive training and counselling is
given to the panel homes and data is used post stabilization.

Fourth Step: The Polling
• Polling is the process of transmitting the data from the

peoplemeters to the central production center.
• In most cases between 02h00 and 06h00 daily, via the

fixed telephone line from the home or utilising a GSM
modem installed in the meter’s Transmission Unit.
• Every night, the data stored in the memory of the online

peoplemeter is retrieved ("Polled"), via telephone lines,
cellular telephone networks or dedicated radio
frequencies, using TAM’s production software.

Fifth Step: The Production Software
• TAM data retrieval and production system,

• Extensive and flexible reporting at all phases of
data production.

Sixth Step: TV Events
• TAM data is not comprised only of individual television

viewing data, but also of a database of TV Events.
• While the TAM data produced from the information

collected by the peoplemeter, provides individual-by-
individual, minute-by-minute audience data, it does not
associate this viewing with particular programmes.

Seventh Step: Analysis Software
• Comprehensive analysis software multiplies the value of the

TAM data.
• At the front end of the TAM system, the analysis software
allows clients to use and analyse the TAM database.
• The enormous amount of detailed data and its richness
exclude the possibility of using printed reports, except in the
case of very simple analyses.

Print Media surveys:
• ABC: AUDIT BUREAU OF CIRCULATION
• NRS: NATIONAL READERSHIP SURVEY
• IRS: INDIAN READERSHIP SURVEY

AUDIT BUREAU OF CIRCULATION (ABC) :
• ABC is one of several organizations of the same name operating in

different parts of the world.
• The ABC is a non-profit, self-disciplining, voluntary organization

consisting of Publishers, Advertisers and Advertising Agencies.
• It has done pioneering work in developing systems to verify the

circulation data published by those newspapers and periodicals, which
have earned the right to display its emblem.

• The Audit Bureau of Circulations (ABC) was founded in

1948, is an association consisting of publishers,
advertisers and advertising agencies.
• ABC as it is called and understood by all, is a founder

member of the International Federation of Audit Bureaux
of Circulations.
• The main function of ABC is to evolve, lay down a

standard and uniform procedure by which a member
publisher shall compute its net paid circulation figure.

• A firm of Chartered Accountants approved by the

Bureau checks the circulation figures so arrived at.
• The Bureau issues ABC certificates every six months

to those publishers whose circulation figures confirm
to the rules and regulations set out by the Bureau and
duly certified by a Chartered Accountant who is from
the approved panel of the Bureau.

• ABC's membership today includes 380 publishers of national and regional

importance, 189 advertising agencies, 74 Advertisers & 19 New Agencies
and Associations connected with print media and advertising.
• It covers more than 50 major towns in India.

• Facts and figures, which are checked and certified by an independent

body, are very important in advertising business. It increases confidence
and sets high standards.
• An advertiser would like to know the facts and figures before investing
his money in advertising. And before investing the money, the advertiser
ought to know how many people buy which publication in which area.

• The ABC gives all these vital facts every six months. The ABC figures are
not the outcome of opinions, claims or guesswork, but they are the result
of rigid, in-depth and impartial audits of paid circulations of member
publications by independent and leading firms of Chartered Accountants
working in accordance with the rules/procedures set by the Bureau.
• An advertising agency would want to make valid and rational

recommendations for the proper distribution of his clients' advertising
budget.
• A publisher gets a Certificate of Circulation, which is a proof to the

advertiser of the coverage he is offering.

NATIONAL READERSHIP SURVEY (NRS)/ INDIAN READERSHIP
SURVEY (IRS)
• There are the two main sources of obtaining data to determine readership
of any publication:
• 1. National Readership Survey - NRS

• 2. Indian Readership Survey - IRS

SURVEY (IRS)
• National Readership Survey is a survey on all media, but especially the

print medium, conducted by the National Readership Studies Council
(NRSC) - supported by Audit Bureau of Circulation (ABC), Advertising
Agencies association of India (AAAI) & Indian Newspapers Society.
• Research agencies involved are: IMRB, TNS, AC Nielsen
• Indian Readership Survey is conducted by the Media Research Users

Council (MRUC) in association with Hansa Research

SURVEY (IRS)
• Both NRS & IRS
• Gives media consumption habits, product ownership &

consumption, lifestyle indicators information on macro
demographic & geographic parameters.
• Population coverage: 12 years & above
• Sample size: over 200, 000
• Geographic coverage: All India (Urban+Rural)
• Sample Frame: Electoral rolls based on 2001 Census
definition of Urban Agglomeration

RADIO AUDIENCE MEASUREMENT
• Popularity of Radio as a medium is on the upswing and soon it will create

a considerable impact.
• Advertisers now see FM to be a very vital medium for communicating

with their target audience, resulting in a growth in FM listenership.
• Due to privatisation, radio ad spend is expected to grow over the next 5

years.
• It is also predicted that Radio would have a growth pattern similar to one
observed during the Television boom.

• There is a need to have a reliable audience research, which would

provide continuous measurement of radio audiences so that growth of
this reviving medium can be tracked. A dependable study with high
quality standards will lend credibility for the medium.
• MRUC has made an entry into Radio Audience Measurement Study with
ACNielsen partnering the research.
• Indian Listenership Track is the first syndicated study of its kind in India
that will enable users to plan for this fast reviving medium.

• For nearly 40 years the most dominant research techniques used to

assess media viewing and listening habits has relied on audience
members to manually maintain records via journal entry.
• However, these personal diaries are fraught with problems, most of it tied
to faults in human nature, such as failing to keep accurate records.
• These problems have led broadcast networks and advertisers to

frequently question the effectiveness of manual reporting.
• In particular, audience measurement for radio has been remarkably

ineffective especially when compared to television.

• The main reason for this lies with the location of the media device.
• Television viewing is done mostly in the home and on equipment that is

nearly always found in a fixed location.
• This makes it fairly easy for researchers to train selected respondents on

how to properly fill out their journals.
• Radio, on the other hand, is listened to in many locations. In fact, there

is significant argument claiming most radio is listened to in locations
other than the home, namely at work or, more troubling for researchers,
in the car.
• Attempts to measure which stations are listened to during a car ride have
almost exclusively relied on journal entries. In almost all cases these
entries are made long after the person left their car so recall may be hazy

• The PPM, which is about the size of a pager, is designed to

detect specially encoded (though inaudible to listeners)
messages emitted by radio stations who have signed on for the
service.
• When the PPM comes into contact with the audio output of a
radio station sending the message it records the encoded
information. Contained within the message is data that
identifies the station and a time stamp indicating when the PPM
came into contact with the message.
• At the end of each day participants in the survey place their

PPM in a cradle that not only recharges the unit’s battery but
also submits results over telephone lines or Internet hookup to
Arbitron’s database.

• MobilTrak of Herndon, Virginia, is marketing a research

technology that attempts to eavesdrop on cars to find out what
motorists are listening to.
• The science behind MobilTrak’s Radio Monitoring System, is

based on the concept that radios, like most electronic devices,
emit electronic signals when in use.
• Radios are further unique in that the signal produced is unique

for each station.
• MobilTrak’s so-called “sniffer” method employs receiving

stations installed at intersections in high traffic areas or
specific locations, such as shopping malls. These receivers
randomly scan the intersection as cars pass by and forward the
information over wireless telecommunication networks.

Thank You!
Charlie
Tango
January 10, 2007 (Ver 1.0)
Devbrat Kumar

Marketing Research 2007

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