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Topics covered in the notes
Applications of Marketing Research
Structure of Market Survey or Steps in Marketing Research
Multivariate Techniques
Factor Analysis
Cluster Analysis
Discriminant Analysis
Conoint Analysis
Consumer Research
Format of Report Preparation ! Criteria of Report "riting
*Prepared ! Dr" M" GO#RI SHANKAR*
Dr# M# $o%ri Shankar & Marketing Research Applications '( % P a g e )
Research is the search for kno%le*ge
Research is the search for ne% facts
Research is the systematic effort to gain kno%le*ge
Research *iscover ans%er to questions through the application of scientific proce*ures#
Research is systematic an* o+ective investigation of a su+ect or pro+lem
Research is the process ' ,uantitative or ,ualitative) of systematic gathering- recor*ing-
analysing an* evaluating the *ata relate* to the pro+lems face* +y
Research helps the management in *ecision0making relate* to the various pro+lems face*
+y in*ustry- organi/ation- markets an* society#
Research helps to provi*e the information a+out the stakehol*ers ' Customers-
employees- suppliers) to the management#
Research helps to re*uce the uncertainty e1isting in the organi/ation#
Research may +e either ,uantitative or ,ualitative
,uantitative research is a structure* research metho*ology that seeks to quantify *ata an*
typically involves statistical analysis# ,uantitative research is calle* as Pro+lem solving
,uantitative Research & 2t is formally structure*# The process of *ata collection involves
e1tensive use of statistical proce*ures#
,uantitative research *etermine relationships an* *ifferences among large samples of
target population
,uantitative research is %i*ely use* for the *ata %hich requires statistical analysis to
measure the various parameters use* for the stu*y
,uantitative research recommen*s a final course of action#
,uantitative research helps the top management to *erive conclusions for fin*ing
solutions to various comple1 pro+lems
314 *ata collection metho*s like survey- o+servation- e1perimentation etc %ere use*
Dr# M# $o%ri Shankar & Marketing Research Applications '5 % P a g e )
&*a+itative research is a unstructure* e1ploratory research metho*ology +ase* on small
samples that provi*es insights ! un*erstan*ing or pro+lem settings# ,ualitative research
is calle* as pro+lem i*entification research
,ualitative research & it is highly unstructure*# 2t is less formal in nature#
,ualitative research is applie* to un*erstan* un*erlying reasons an* motivations
,ualitative research is non statistical# 2t uses small num+er of non representative cases
,ualitative research is use* for formulating the pro+lem or to *evelop an initial
un*erstan*ing of the pro+lem
314 *ata collection metho*s like focus group intervie%- in0*epth intervie%- proective
techniques etc %ere use*
Pop*+ation & 2t is the potential set of respon*ents in a geographical area# 2t refers not
only to people +ut to all the items that have +een chosen for the stu*y#
314 proportion of consumers %ho are loyal to a particular +ran* of soft *rinks
Cens*s & The measurement or e1amination of every element in the population#
Sa,p+e & A portion of the elements in a population chosen for *irect e1amination or
measurement# A su+0set of the population un*er stu*y#
Para,eter & 2t is a characteristic of the target population# 6alues that *escri+e the
characteristics of a population
314 Suppose the mean height in inches of all the tenth gra*ers in 2n*ia is 78 inches# 78
inches is a characteristic of the population# 9All tenth gra*ers: can +e calle* as
population parameter
Statistic & A statistic is a characteristic or measure of the sample# The sample statistic is
use* as an estimate of the population parameter
De-rees o. .reedo, & it refers to the amount of information availa+le to estimate
population parameters from sample statistics# 2t refers to the num+er of values in a
sample %e can specify freely once %e kno% something a+out the sample# For e14 there
are ; elements in a sample an* the mean of these elements is (7# then it can have
a<+<c<*<e<f<g.; = (7- the *egrees of free*om or the num+er of varia+les %e specify
%ill +e n & ( = ; & ( = 7# 2t is the total num+er of o+servations less the num+er of
in*epen*ent restrictions impose* on the o+servations# 2t is the num+er of in*epen*ent
variates %hich form the statistic like chi0square- >olmogorov D etc# 2t is 'n0() for one
*imensional ta+le an* 'r0()'c0() for t%o *imensional ta+le- %here n is the num+er of
*imensions or varia+les or attri+utes- r is num+er of ro%s ! c is the num+er of columns#
Dr# M# $o%ri Shankar & Marketing Research Applications '? % P a g e )
H!pothesis & it represents a researcher@s e1pectation %hat is true of the population
N*++ H!pothesis 0 A8 & A statement in %hich no *ifference or effect is e1pecte*# 2f the
null hypothesis is not reecte*- no changes %ill +e ma*e# 2t is a statement of no
2n formulating the Bnull@- usually the %or*s 9no:- 9not:- or 9same: or 9in*epen*ent: %ill
+e the part of the state* hypothesis
314 %e might %ish to see %hether the mean age of a college %as 5( years# The null
hypothesis is 9The mean age of the college class is not *ifferent from 5( years# This is
same as the mean C age of the class is equal to 5( years# The null hypothesis %oul* +e A8
4 C = 5(
314 To kno% the proportion of consumers %ho purchase* a pro*uct +efore an* after an
a*vertising campaign# The null hypothesis %oul* +e 9There is no *ifference in the
proportion of consumers %ho purchase* cola +efore an* after the maga/ine a*vertising
campaign# This is same as the t%o proportions are equal an* it is %ritten as A84p = P(
314 To investigate the seat +elt usage +et%een stan*ar* si/e car o%ners an* su+compact
car o%ners# The null hypothesis might +e %ritten as- 9Stan*ar* si/e car o%ners an*
su+compact car have the same seat +elt usage rate:#
A+ternate H!pothesis & A( & A statement that some *ifference or effect is e1pecte*#
Accepting the alternative hypothesis %ill lea* to changes in opinions or actions# 2t is a
statement of association#
E/4 The formulation of an alternative hypothesis *epen*s on the nature of the situation at
han* an* may +e *irectional or non *irectional# 2f the situation *oes not call for the
*irection of the *ifference- the alternative hypothesis is consi*ere* to +e t%o0taile* test#
For the mean age e1ample- the alternative hypothesis %oul* +e A(4 CD5(# 2f the
alternative hypothesis states a *irection- the test is referre* as a one0taile* test# Suppose
that there is interest in %hether the mean age of the class is greater than 5( years- the
alternative hypothesis %oul* +e %ritten A( 4 CE5(# To *etermine %hether the mean age
of the class is less than 5( years- the alternative hypothesis %oul* +e %ritten as A(4 C
Si-ni.icance +eve+ & 2t is a level of risk or pro+a+ility or risk a researcher takes %hen
reecting the null hypothesis %hen it is true#
There is al%ays a pro+a+ilistic- component involve* in the accept0reect *ecision in
testing hypothesis# The criterion that is use* for accepting or reecting a null hypothesis is
Dr# M# $o%ri Shankar & Marketing Research Applications 'G % P a g e )
calle* the significance level or p0value# This represents the chance that %e may +e
making a mistake of a certain type# 2t can also +e set as ' (88 minus confi*ence level
*esire* in the test- *ivi*e* +y (88)# For e1ample- if %e *esire that the confi*ence level
for the test shoul* +e HI- then '(88 & HI) *ivi*e* +y (88# For e1ample - if %e *esire that
the confi*ence level for the test shoul* +e HI- then '(88 & HI).(88 or #8I +ecomes the
significance level#
The p0value represents the pro+a+ility of conclu*ing'incorrectly) that there is a *ifference
in your samples %hen no true *ifference
Con.idence interva+ & it is the range into %hich the true population parameter %ill fall-
assuming a given level of confi*ence#
Con.idence )eve+ & it is the pro+a+ility that a confi*ence interval %ill inclu*e the
population parameter

Dr# M# $o%ri Shankar & Marketing Research Applications 'I % P a g e )
De.inition o. Mar0etin- Research
Marketing Research is the systematic gathering- recor*ing- analy/ing an* evaluating the
*ata relate* to the marketing pro+lems
I,portance1app+ications o. MR
The applications of MR can +e classifie* as Pro+lem 2*entification Research- Pro+lem
Solving Research 0 $eneral ! Critical#
Pro+e, Identi.ication Research & is un*ertaken to help i*entify pro+lems that are not
apparent on the surface an* yet e1ist or are likely to arise in the future#
Types of Pro+lem 2*entification Research
a# Mar0etin- Potentia+ Research
+# Mar0et Share Research
c" I,a-e Research & 2t is the attitu*es- +eliefs- intentions- kno%le*ge an* un*erstan*ing
of the consumers to%ar*s pro*uct- +ran* an* company calle* as pro*uct image- +ran*
image an* company image
*# $orecastin- Research & involves +oth quantitative an* qualitative techniques of
31 of quantitative forecasting techniques inclu*e tren* analysis- e1ponential smoothing-
moving average metho*- simple regression- multiple regression# ,ualitative forecasting
techniques inclu*e *elphi metho*- salesforce composite metho*- consumer panels etc
e# Sa+es Ana+!sis Research & calle* as Market analysis# The components of Sales
Analysis Research is classifie* as follo%s
Co,ponents o. Sa+es Ana+!sis Research
Managing the salesforce & recruiting- selecting- training- *irecting- compensating an*
Defining the sales territories
Allocating the fun*s for a*vertising an* promotional efforts
Setting the sales quotas
Dr# M# $o%ri Shankar & Marketing Research Applications '7 % P a g e )
Designing the *istri+ution channels
Deci*ing the location an* si/e of the plants- ne% sales offices an* %arehouses
Determining the strategy for market entry
Pro+e, So+vin- Research & is un*ertaken to arrive at a solution# The fin*ings of pro+lem0
solving research are use* in making *ecisions that %ill solve specific marketing pro+lems#
The pro+lem solving research is classifie* +ase* on general ! critical#
The applications relate* to general pro+lem solving research is classifie* as follo%s4
Pro+e, So+vin- Research Genera+ app+ications
a# Se-,entation Research & *etermine +asis of segmentation- esta+lish market potential for
various segments- select target markets- create lifestyle profiles an* pro*uct image
+# Prod*ct Research & *etermining pro*uct mi1- ne% pro*uct *evelopment- pro*uct innovation-
a*option ! *iffusion- pro*uct life cycle- test marketing- +ran* positioning ! repositioning# 2t
creates pro*uct equity
c# Pricin- Research & *etermining price mi1- importance of price in +ran* selection- price
elasticity of *eman* an* the impact on sales an* profits of various levels of price changes# 2t
creates price equity
*# Distri*tion Research & *etermining *istri+ution mi1- types of *istri+ution- location an*
*esign of *istri+ution centres- *ealer supply an* storage requirements- han*ling an* packing of
merchan*ise- cost analysis of transportation metho*s- intensity ! coverage- channel margin-
channel conflicts
Distri+ution research creates *istri+ution equity through a stronger net%ork of channels %hich
creates value for +oth the company@s pro*ucts an* the consumers# 2t helps in *esigning channels
e# Pro,otiona+ Research & *etermining promotional mi1- setting optimal promotional +u*get-
measuring +ran* equity- sales promotion relationship- copy *ecisions- me*ia research & involves
research into vie%ership of various me*ia- evaluation of a*vertising effectiveness calle* as +ran*
Promotional research creates +ran* equity through the aggressive promotional programs %hich
enhances the company to +uil* the long term relationships %ith the customer an* +ran* image#
f# Cons*,er Research & *etermining psychological *eterminants- +uying process- +uying roles
Dr# M# $o%ri Shankar & Marketing Research Applications '; % P a g e )
g# Motivationa+ Research & it is use* in marketing to *etermine %hy consumers +uy one +ran*
or type of pro*uct instea* of competing alternatives# 2t helps in *esigning the pro*uct- its
package- pricing an* a*vertising# The nature of the motivational research can +e classifie* as 4
The consumer *oes not kno% the 9%hy: of purchase- the consumers %ill not tell a+out their
purchase- The consumers may put for%ar* illogical reasons for their purchase
The app+ications re+ated to Critica+ Pro+e, So+vin- Research are c+assi.ied as 4
Factor analysis-
Cluster Analysis
Conoint Analysis
Discriminant Analysis
Pro+e, Identi.ication Research and Pro+e, So+vin- Research -o hand in hand2 and an!
,ar0etin- research pro3ect ,a! co,ine oth t!pes o. research
Dr# M# $o%ri Shankar & Marketing Research Applications 'J % P a g e )
Str*ct*re o. S*rve! or Steps in Mar0et Research Process
() Pro+lem Definition ' 2*entifying the un*erlying causes of pro+lem)
5) Development of an approach to pro+lem
?) Research *esign formulation & it involves the follo%ing
a) type of *esign & e1ploratory or conclusive
+) Metho*s of collecting *ata & primary an* secon*ary
c) Scaling proce*ures & Measurement Scales- Rating Scales
*) ,uestionnaire *esign
e) Sampling Design & Population- Census- Sample- Sample si/e- Sampling Knit-
Sampling Frame- Sampling Metho*
f) Statistical metho*s use*
G) Fiel* %ork
I) Data Analysis ! 2nterpretation
7) Report Preparation ! Presentation
The .o*r P4s o. the Mar0etin- Research Process can e s*,,ari5ed as Pro+e,2
Pop*+ation2 Proced*res and Presentation
() Pro+e, De.inition 6 Identi.!in- the *nder+!in- ca*ses o. pro+e,7
2t involves in i*entifying the un*erlying causes of pro+lem#
For e14 the management %ants to launch a ne% pro*uct then the management has to
consi*er the follo%ing aspects & %hat are the consumer preferencesL- %hat is the price to
+e quote*- %hat is the effectiveness of the a*vertisingL
5) Deve+op,ent o. an approach to pro+e,
The approach to the pro+lem are as follo%s
a# M+ective or theoretical & +ase* on secon*ary *ata
Dr# M# $o%ri Shankar & Marketing Research Applications 'H % P a g e )
+# Analytical & i*entifying set of varia+les an* their relationships '*epen*ent-
in*epen*ent an* e1traneous)
2n*epen*ent 6aria+les & are varia+les that the researcher can control an* %ishes to
manipulate# 2n*epen*ent varia+les are also calle* as Pre*ictors %hich create cause
31 of in*epen*ent varia+les & level of a*vertising- price level- package *esign- *isplay
location- compensation metho*- investment- interest rates etc
Depen*ent varia+les & are the varia+les that measure the effect of the in*epen*ent
varia+les on the test units# The test units may inclu*e consumers- stores or geographical
Depen*ent varia+les are calle* as Criterion %hich creates effect phenomenon#
31 of *epen*ent varia+les & profits- market share- customer satisfaction- sales-
performance etc
31traneous varia+le & are varia+les other than the in*epen*ent varia+les that affect the
response of the test unit# 31traneous varia+les are those they may have some effect on
*epen*ent varia+le +ut yet are not in*epen*ent varia+les#
31 of e1traneous varia+les & Store si/e- geographical location- traffic flo% count etc
c# $raphical & provi*es a visual picture of relationship +et%een varia+les
*# Research questions like ' e14 %hether the customer hol*s the cre*it car*)
e# Setting hypothesis & tentative statement a+out relationships +et%een t%o or more
?) Research desi-n .or,*+ation & Research *esign is the outline for the entire research
process# 2t involves the follo%ing
a) types of Research *esign &
i) 31ploratory an* ii) Conclusive & Descriptive ! Causal
+) Metho*s of collecting *ata & Primary an* Secon*ary' Ni+rary Research)
c) Scaling Proce*ures
*) ,uestionnaire *esign
e) Sampling *esign
Dr# M# $o%ri Shankar & Marketing Research Applications '(8 % P a g e )
f) Statistical Metho*s use*
T!pes o. Research desi-n
E/p+orator! research & i*entifies pro+lems- generate hypothesis an* gain insights a+out
particular su+ect- pro+lem etc# 2t helps in *efining the varia+les of the
research'in*epen*ent- *epen*ent ! e1traneous)is commonly unstructure*- less formal in
nature an* that is un*ertaken to gain +ackgroun* information a+out general nature of
research pro+lem#
31ploratory research is ine1pensive an* fle1i+le in nature#
31ploratory research helps in initial un*erstan*ing of the pro+lem or it provi*es the +asis
to the researcher to procee* further into the research
Metho*s of con*ucting e1ploratory research & literature survey- e1pert survey- pilot
survey- focus group intervie%- in0*epth intervie%- proective techniques etc
Conc+*sive research desi-n & it is *esigne* to assist the *ecision0maker in *etermining-
selecting an* evaluating the final course of action in a given situation#
Types of Conclusive Research & Descriptive ! Causal
Descriptive research & is commonly structure*- quantitative ! formal research# 2t
*escri+es attitu*es- perceptions- characteristics- activities an* situations of certain groups
like employees- customers- suppliers etc# it is use* in testing hypothesis# Descriptive
research allo%s the researcher to have consi*era+le +ackgroun* kno%le*ge relate* to the
pro+lem or concern# Results o+taine* from *escriptive stu*ies are conclusive an* the
results can +e use* for *ecision making
E/4 i*entify the consumer@s +uying +ehavior for that particular pro*uct- stu*y the
characteristics of consumers- analyse the market potential for a pro*uct etc
2t is %i*ely use* in estimating market share- sales analysis- pricing- a*vertising-
*istri+ution- image stu*ies etc
T!pes o. Descriptive Research & Cross0sectional an* Nongitu*inal
Cross0sectional Descriptive Research & 2t is a one shot research or one time stu*y# 2n
cross0sectional research- the information is collecte* from the sample of respon*ents only
once# The stu*y looks at %hat is occurring at one moment of time#
Dr# M# $o%ri Shankar & Marketing Research Applications '(( % P a g e )
314 A stu*y assessing the relationship +et%een the emissions from chemical in*ustry an*
resultant respiratory- health of the resi*ents- foun* that emissions from chemical in*ustry
have a*verse effects on the health of the resi*ents#
Nongitu*inal Descriptive Research & 2t involves collecting the information from the
respon*ents repeate*ly over a perio* of time# This stu*y is continuous- %here+y the same
respon*ents are questione* or o+serve* at pre*etermine* time intervals over a *esignate*
time frame# Their responses are collecte* an* after an analysis- conclusions are *ra%n#
314 Procter ! $am+le intro*uces a ne% pain reliever an* contacts the same group of I88
users each month over a 7 month perio* to *etermine their level of satisfaction %ith the
pro*uct an* then analyses the o+taine* *ata#
314 314 A panel of *ealers may +e contacte* +y the company to kno% the type of
consumers- purchasing choices- location of the store etc# The company contacts the
*ealers frequently to kno% a+out consumer preferences
314 A panel of e1ecutives may +e contacte* +y the top management to assess the
effectiveness of training programs
Data co++ection ,ethods *sed in cond*ctin- descriptive research4 Survey- o+servation
! e1perimentation
Causal research & *etermines the cause an* effect relationships of various varia+les
involve* in the research
314 Suppose the management of a company %ants to kno% the e1tent to %hich
a*vertising creates 'or causes) revenue for a company- they can go for causal research#
This information %ill ena+le them to *eci*e ho% much money require* to allocate
to%ar*s in a*vertising the company#
314 causal relationship +et%een a*vertising '2n*epen*ent varia+le) an* sales '*epen*ent
314 if the company %ants to fin* out the impact of a*vertising on sales- the company
assess %hat percentage of a*vertising increases the sales #
The stu*y of *epen*ent- in*epen*ent an* e1traneous varia+les are the part of causal
7 Methods o. co++ectin- data Pri,ar! and Secondar!8 )irar! Research
c7 Sca+in- proced*res
Dr# M# $o%ri Shankar & Marketing Research Applications '(5 % P a g e )
A scale is a level of measurement# 2t is the assignment of num+er to o+ects '314
Consumers)# 2t reflects the quantity of the attri+utes that the o+ect possess
characteristics'e14 preference to +ran*s)#
Types of Scaling proce*ures & Measurement scales- Rating scales
Types of measurement scales & Oominal- Mr*inal- 2nterval an* Ratio scales
Types of Rating scales & Nikert scale- Semantic Differential scale an* Stapel scale
Measurement Scales
Oominal scale & is one in %hich num+ers are use* as la+els or tags to categorise various
314 assigning ( to male an* 5 to female or num+ers to cricket players#
Descriptive Statistics 4 Simple Percentage metho*- Mo*e etc
2nferential 4 Chi Square test- Pinomial test etc
Mr*inal scale & 2t is use* to rank the attri+utes of the pro*uct like price- quality-
consistency- *ura+ility etc +y the respon*ent# 2t asks the respon*ents to rate career
opportunities- +ran*s as 31cellent- goo*- or fair#
Descriptive Statistics 4 Percentile- Me*ian etc
2nferential 4 Rank Mr*er Correlation- Chi Square test- etc
2nterval scale & to measure the attitu*e of respon*ents on a scale of ( & I or ( & ; # 2t is
use* to rate satisfaction level like o+ satisfaction- customer satisfaction etc
31 4 (= highly unfavoura+le- 5= unfavoura+le- ?= un*eci*e* G=favoura+le- I=strongly
Descriptive Statistics 4 Average- Range- Mean- Stan*ar* *eviation etc
2nferential 4 Q-t-F tests- Regression- Correlation- AOM6A etc
Ratio scale & com+ines all the properties of Oominal- Mr*inal an* 2nterval scales# 2t is
use* to measure length- height- %eight- age- income etc# all arithmetic calculations are
possi+le in this scale#
Descriptive Statistics 4 Average- Range- Mean- Stan*ar* *eviation etc
2nferential 4 Q-t-F tests- Regression- Correlation- AOM6A etc
Dr# M# $o%ri Shankar & Marketing Research Applications '(? % P a g e )
2temi/e* Rating scales & provi*es the respon*ents %ith a scale that has a num+er or +rief
*escription associate* %ith each category# The respon*ents are require* to select the
specifie* category that +est *escri+es the o+ect +eing rate*#
The itemi/e* rating scales are classifie* as Nikert Scale- Semantic Differential Scale-
Stapel Scale
Nikert Scale & A measurement scale %ith five response categories' Strongly *isagree to
Strongly agree) %hich requires the respon*ents to in*icate a *egree of agreement or
*isagreement %ith each of the series of statements relate* to the stimulus o+ects#
314 Ro+ Satisfaction is monetary
( = strongly *isagree- 5= *isagree- ? =neutral- G = agree- I= strongly agree#
Semantic Differential Scale & A seven point rating scale %ith en*points associate* %ith
+ipolar la+els that have semantic meaning
314 Po%erful 0000000%eak- Pleasant 0000000Knpleasant- Comple1 0000000000Simple etc
Stapel Scale 0 A unipolar rating scale for measuring attitu*es of a single a*ective
num+ere* from 0I to <I %ithout neutral /ero#
314 the higher the num+er - the more accurately term *escri+e the o+ect '<I)- the more
inaccurate sho%s '0I)
e7 &*estionnaire desi-n
,uestionnaire *esign specifies the information an* type of information require*#
31 of questionnaire *esign
Structure* questions & questions that prespecify the set of response alternatives# They are
close* en* questions ' multiple choice- *ichotomous '
Knstructure* questions & they are usually open en*e* questions that allo% the
respon*ents to ans%er in their o%n %or*s#
f) Sa,p+in- p+an & population- sample- sample si/e- sampling unit- sampling frame-
sampling metho*
-7 Statistica+ ,ethods *sed
Simple Percentage Metho*- Correlation- Regression Analysis- Chi Square test-
t test- / test- F test - Analysis of 6ariance 'AOM6A) etc
Dr# M# $o%ri Shankar & Marketing Research Applications '(G % P a g e )
97 $ie+d :or0 or data co++ection
Fiel* %ork involves the selection- training an* supervision of persons %ho collect *ata# 2t
involves evaluating fiel* %orkers to provi*e them %ith fee*+ack on their performance as
%ell as to i*entify the +etter fiel* %orkers an* +uil* a high quality fiel* force#
;7 Data Ana+!sis < Interpretation
2t can +e *one +y simple ta+ulation an* cross ta+ulation
Simple ta+ulation & it involves counting the num+er of responses in each category for a
question an* *eveloping into a frequency ta+le form# This can +e use* to compute
percentages +y *ivi*ing the responses %ith the sample si/e#
Cross ta+ulation & it is a result of counting simultaneously ans%ers to t%o *ifferent
questions on a questionnaire#
Types of Data Analysis
Knivariate Analysis & 2nvolving one varia+le at a time#
314 Simple Percentage Metho*- Mne varia+le0 Chi0Square test etc
Pivariate Analysis 4 2t involves t%o varia+les at a time#
314 Chi Square test 'Cross Ta+ulation)- Simple Regression'one *epen*ent ! one
2n*epen*ent varia+le)- Correlation- Mne %ay Anova#
Multivariate Analysis & 2nvolving more than t%o varia+les at a time
314 Multiple Regression- T%o0%ay Anova- Manova'Multivariate analysis of variance)-
Factor Analysis- Cluster Analysis- Discriminant Analysis ! Conoint Analysis
Tests o. H!potheses
Para,etric Tests & "hen the *ata is on continuous scale 'interval an* ratio scale) then
parametric tests can +e use*
31 4 of Parametric test
t0test 0 for small samples 'nF?8)
Q0Test 0 for large samples ' nE?8)
AOM6A & Analysis of 6ariance ' +oth one ! t%o %ays)
Dr# M# $o%ri Shankar & Marketing Research Applications '(I % P a g e )
Non Para,etric Tests & "hen the *ata is on categorical scale 'Oominal ! Mr*inal) then
Oon parametric tests can +e use*
31 4 of Oon Parametric test
Chi & Square test- >olmogorov Smirnov D test- "ilco1on Matche* Pairs test etc
=7 Report Preparation < Presentation
The presentation of the report may +e in the form of either Mral or "ritten presentation#
The report shoul* emphasi/e on the follo%ing aspects
a) Summary of the results +) Oature of the stu*y c) Sources of *ata *) analysis of *ata
an* presentation of fin*ings e) Conclusions f) Pi+liography g)Technical appen*ices h)
Dr# M# $o%ri Shankar & Marketing Research Applications '(7 % P a g e )
So*rces o. Data Co++ection Pri,ar! < Secondar!
Primary Research ' Primary *ata) 0 is originate* +y the researcher for specific purpose of
a**ressing the pro+lem in han*# 2t is originally collecte* afresh for the first time#
Classification of primary *ata
31perimental an* Oon 31perimental *ata
31perimental *ata is classifie* into Na+oratory an* Fiel* Stu*ies
31perimental *ata & is collecte* %hen researcher controls an* manipulates the elements
of environment to measure the impact of each varia+le#
31 4 A group of respon*ents %ho %ere sho%n T#6 commercials an* %ere aske* a+out
their intentions to purchase the pro*uct a*vertise*#
31perimental *ata is classifie* into Na+oratory an* Fiel* Stu*ies
Na+oratory Stu*ies & are carrie* in a highly controlle* environment# Several varia+les are
controlle* an* one varia+le of interest is manipulate* in a particular situation#
Fiel* stu*ies & are carrie* in real %orl* usually in the form of Test Marketing ' for testing
ne% pro*ucts on a sample +asis
Oon 31perimental *ata is classifie* into ,ualitative an* ,uantitative
,uantitative & Survey- M+servation an* 31perimentation
,ualitative & Focus group 2ntervie%- 2n0*epth intervie% an* Proective Techniques
,uantitative Sources of Primary *ata & Survey- M+servation an* 31perimentation#
Survey & involves a structure* questionnaire given to respon*ents *esigne* to elicit
specific information# The information is o+taine* from the respon*ents through
questionnaire an* intervie%
2n survey metho*- the information is o+taine* +y questioning the respon*ents
Dr# M# $o%ri Shankar & Marketing Research Applications '(; % P a g e )
Respon*ents are aske* a variety of questions regar*ing their +ehavior- intentions-
a%areness- interest- lifestyle- motivation an* their *emographic characteristics
Types of Survey metho* & Telephone metho*s- Personal metho*s- Mail metho*s-
3lectronic metho*s etc
Telephone metho*s & involves a contacting a sample of respon*ents an* asking them a
series of questions over phone
Computer Assiste* Telephone 2ntervie%ing ' CAT2) & uses a computer questionnaire
a*ministere* to respon*ents over telephone# 2t is the mo*ern metho* of contacting the
Personal Metho*s & it involves the contacting the respon*ents personally or *irect
intervie% in their homes or %hen they visit the shop#
31 of personal metho*s & Personal in home intervie%- Mall intercept intervie%ing-
Computer Assiste* Personal 2ntervie%ing 'CAP2)
Personal & in & home intervie% & the respon*ents are intervie%e* in their homes# The
researcher asks the questions an* recor*ing the responses#
Mall 2ntercept Personal 2ntervie% & respon*ents are intercepte* %hile they are shopping#
The respon*ents are intervie%e* in the shopping malls# This is very p+opular metho*
use* in retail outlets#
Computer Assiste* Personal 2ntervie%ing ' CAP2) & the respon*ent is seate* in front of
computer terminal an* ans%ers questionnaire# CAP2 use* to collect *ata at shopping
malls- conferences an* tra*e sho%s
Mail metho*s & questionnaire is maile* to the potential respon*ents# 2t consists of
outgoing envelope- cover letter- questionnaire- return envelope an* possi+ly an incentive#
There is no ver+al interaction +et%een the researcher an* respon*ent#
31 of mail metho*s & mail panel
Mail panel & A large ! nationally representative sample of househol*s %ho have agree*
to perio*ically participate in pro*uct tests +y mail#
3lectronic metho*s & the intervie% is con*ucte* through email an* internet#
314 of electronic metho*s & 30mail intervie%s- 2nternet intervie%s ' in the form of %e+
+ase* languages like ATMN-DATMN-ASP etc)#
Sche*ule & is similar to questionnaire# The *ifference +et%een questionnaire an*
sche*ule is that
Dr# M# $o%ri Shankar & Marketing Research Applications '(J % P a g e )
2n questionnaire & it is fille* +y the respon*ent
Sche*ule is a proforma containing a set of questions %hich are fille* +y the enumerator
or researcher %ho is appointe* for this purpose#
2n sche*ule & the questionnaire is fille* +y the enumerator or researcher +y asking the
questions an* recor*ing the responses from the respon*ent#
M+servation & involves recor*ing the +ehavioral patterns of the people- events- o+ects in
a systematic manner to o+tain the information a+out phenomenon of interest#
314 M+serving the group of people at the shopping mall %hile purchasing the goo*s
M+servation may +e *irect or in*irect
Direct o+servation & the respon*ents are a%are that they are +eing o+serve*#
31 4 o+serving the group of respon*ents at the fast foo* center#
2n*irect o+servation & the respon*ents are una%are that they are +eing o+serve*# The
respon*ents are o+serve* +y some mechanical *evices like camera- mirror etc
31perimentation & is to measure the effect of one.more varia+les +y changing the level of
some other varia+les# 2t is commonly use* to infer causal relationships +et%een the
varia+les# 2t *efines the cause an* effect phenomenon# The varia+les like *epen*ent-
in*epen*ent an* e1traneous etc are use* in e1perimentation#
,ualitative Sources of Primary *ata& Focus group 2ntervie%- 2n0*epth intervie% an*
Proective Techniques#
Focus group intervie% & con*ucte* +y a traine* mo*erator in a natural manner %ith a
group of respon*ents# A focus group is a sample of respon*ents from the specifie* target
market# Focus group intervie% takes place in the form of free0flo%ing group *iscussion
among various target groups# The mo*erator plays a key role to esta+lish the rapport %ith
the participants to keep the *iscussion moving for%ar* an* pro+e the respon*ents to elicit
insights into the pro+lem#
Applications of focus group intervie%
Kn*erstan*ing consumer perceptions- concerning a pro*uct category
M+taining impression of ne% pro*uct concepts
$enerating i*eas a+out ne% an* e1isting pro*ucts
Developing creative concepts of a*vertising copy from the consumer
Dr# M# $o%ri Shankar & Marketing Research Applications '(H % P a g e )
2n *epth intervie% & 2t is metho* of o+taining qualitative *ata# An unstructure*- *irect-
personal intervie% in %hich a single respon*ent is pro+e* +y a skille* intervie%er to
kno%ing un*erlying motivations- attitu*es an* feelings on a topic# The intervie%er
encourages the respon*ent to talk freely
Applications of 2n *epth intervie%
Discussion of confi*ential- sensitive or em+arrassing topics or situations %here the strong
social norms e1ist
Detaile* un*erstan*ing the complicate* +ehavior of the consumer an* other groups
Situations %here pro*uct consumption e1perience is sensory in nature ' %hich is
emotional in nature)
Proective techniques & an unstructure* an* in*irect form of questioning that encourages
the respon*ent to proect their un*erlying motivations- attitu*es- +elief etc regar*ing the
issue of concern#
2n proective techniques- the respon*ents are aske* to interpret the +ehavior of others
rather than their o%n +ehavior
31 of proective techniques & %or* association tests- sentence completion tests- story
completion tests- picture response or TAT ' Thematic Apperception Test)- Role playing-
Thir* person techniques etc#
"or* association test & respon*ents are presente* %ith the help of %or*s one at a time
an* are aske* to respon* to each %ith the first %or* that comes in min*
Sentence completion test & respon*ents are provi*e* %ith the part of story an* require* to
give conclusion in their o%n %or*s#
Picture response or TAT ' Thematic Apperception Test) & the respon*ents are sho%n a
picture an* aske* to tell a story *escri+ing it#
Role playing & respon*ents are aske* to assume the +ehavior of someone else an* have to
role0play their +ehavior#
Thir* person technique & in %hich respon*ents are presente* %ith ver+al or visual
situation an* are aske* to relate* the +eliefs an* attitu*es of a thir* person# The thir*
person may +e frien*- neigh+our or family etc
Dr# M# $o%ri Shankar & Marketing Research Applications '58 % P a g e )
Secondar! Data 6)irar! Research7
Ni+rary Research & is *one for solving pro+lems in +usiness an* it relates to stu*y of
organisation@s recor*s- maga/ines- ournals- ne%s papers- account +ooks an* other
*ocuments# 2t helps in recor*ing the +usiness policies- *ocuments an* previous stu*ies of
same.similar pro+lems#
Ni+rary research provi*es material.information alrea*y contri+ute* +y others '%hich is
calle* as Secon*ary *ata)#
Sources of Secon*ary Data 0 2nternal Sources- 31ternal Sources- Syn*icate* or Private
Research agencies
2nternal sources & Company invoices- Annual reports- Sales reports +ase* on territory
%ise- pro*uct %ise- customer %ise- ournals- maga/ines- +rochures etc
31ternal sources & Pu+lic li+raries-
Census *ata- Private 2nstitutions- Kniversities- colleges- Directories
$overnment sources ' %e+ sites- pu+lishe* articles in various print me*ia)
Tra*e associations like F2CC2- 2CC etc-
Syn*icate* sources or Private Research agencies like MR$ 'Mperations Research
$roup)- MAR$' Marketing ! Research $roup)- MRS' Marketing Research Society)-
MPA' Marketing ! Pusiness Associates)- MRAS 'Marketing Research ! A*visory
Retail- "holesale- Au*iting 2nstitutions
Secon*ary *ata involves less time ! cost %hen compare* to primary *ata#
Secon*ary *ata familiarise the researcher a+out the fin*ings of the previous stu*y
The maor pro+lem %ith the secon*ary *ata is its relia+ility# The *ata may +e out*ate*
%hen it is to +e use* +y the researcher#
Dr# M# $o%ri Shankar & Marketing Research Applications '5( % P a g e )
Sa,p+e Desi-n
Concepts of Sample Design
Sample Si/e
Sampling unit
Sampling frame
Sampling Metho* & Pro+a+ility ! Oon Pro+a+ility Metho*
Population & is the pre*efine* set of potential respon*ents ' elements ) in a geographical
area 'or) it is the aggregate of all the elements sharing some common set of
characteristics that compromise the universe for the purpose of the research pro+lem#
314 proportion of consumers %ho are loyal to a particular +ran* of soft *rinks- population
may +e all the mothers %ho +uy the +ran*e* +a+y foo* in a given area#
Census & A complete enumeration of elements of population or stu*y o+ects# 2t is a
systematic an* complete count of all %ho are living in specifie* place#
Sample & is a su+group of population selecte* for the participation of the stu*y#
Sample Si/e & the num+er of samples chosen from a target population
Sampling unit & is the +asic unit containing all the elements of target population
31 4 employees- customers- *ealers- outlets etc
Sampling frame & is the list of +locks an* locations or of all the sampling units
Sampling metho* & refers ho% sampling units are selecte*#
Dr# M# $o%ri Shankar & Marketing Research Applications '55 % P a g e )
Types of sampling & Pro+a+ility Sampling an* Oon Pro+a+ility Sampling#
Metho*s of Pro+a+ility Sampling0 Simple Ran*om Sampling- Systematic Ran*om
Sampling- Stratifie* Ran*om Sampling- Cluster Sampling
Metho*s of Oon Pro+a+ility Sampling & Convenient Sampling- Ru*gment Sampling-
,uota Sampling- Sno% +all sampling
Pro+a+ility Sampling & A sampling proce*ure in %hich each element has a kno%n- non0
/ero chance of +eing inclu*e* in the sample# 2t can specify the pro+a+ility %ith %hich
each element of the population %ill +e inclu*e* in the sample# 2t is un+iase*
Metho*s of Pro+a+ility Sampling
Simple Ran*om Sampling & in %hich each element in the population has kno%n an*
equal pro+a+ility of selection#
Systematic Ran*om Sampling & The metho* +y %hich sample is chosen +y selecting a
ran*om starting point an* picking ith element in succession from sampling frame#
31 4 2f a sample of (888 is selecte* from (88-888- the sampling interval is consi*ere* as
(88# if the starting ran*om num+er is 58- the sampling elements are (58- 558- ?58 etc till
Stratifie* Ran*om Sampling & Population is *ivi*e* into mutually e1clusive groups#
calle* as strata Narge population is *ivi*e* into su+groups ' Age- income- e*ucation etc)#
3lements are selecte* from each stratum or strata +y a ran*om manner#
Cluster Sampling 02t involves the target population is *ivi*e* into mutually e1clusive an*
collectively e1haustive su+0population or clusters# 2t is also calle* as Area sampling
%hich consists of geographical areas- countries- housing localities or +locks etc
Difference +et%een Stratifie* ! Cluster Sampling & 2n stratifie* sampling- all the su+0
population 'strata) are selecte* for further sampling# 2n cluster sampling- only a sample of
su+0population ' clusters) is chosen
Oon Pro+a+ility Sampling & The pro+a+ility of any particular mem+er of the population
+eing chosen is unkno%n# There is no %ay of ensuring that sample is a representative of
population an* there is no %ay of estimating the pro+a+ility that any population element
%ill +e inclu*e* in the sample# The selection of sampling units rely heavily on the
personal u*gment of the researcher# 2t is +iase*
The selection may +e opportunistic or purposive or on the +asis of convenience an*
u*gment of the researcher# 2t is highly +iase*
Dr# M# $o%ri Shankar & Marketing Research Applications '5? % P a g e )
Metho*s of Oon Pro+a+ility Sampling
Convenient Sampling & The researcher selects the most accessi+le population mem+ers to
o+tain the information +ase* on his.her convenience#
Ru*gment Sampling & in %hich an e1perience* in*ivi*ual selects the sample +ase* upon
some appropriate characteristic of the sample mem+ers#
,uota Sampling & the researcher fin*s an* intervie%s a prescri+e* num+er of people in
each of several categories ' ,uotas)# The researcher selects the sample from the fi1e*
quotas like age- income etc %hich are specifie*#
Sno% +all sampling & in %hich initial group of sample is selecte* ran*omly# Su+sequent
respon*ents are selecte* +ase* on the referrals or information provi*e* +y initial
314 2t is use* in 2n*ustrial +uyer0seller research to i*entify +uyer0seller pairs#
Sample Design 0 Population- Census- Pilot Survey- Sample- Sample Si/e- Sampling Knit-
Sampling frame
Sampling Metho* 'Pro+a+ility ! Oon Pro+a+ility)
Pro+a+ility Sampling & Simple Ran*om sampling- Stratifie* Ran*om Sampling- Cluster
Oon Pro+a+ility Sampling & Convenient Sampling- Ru*gment Sampling- ,uota Sampling-
Sno% +all Sampling
Dr# M# $o%ri Shankar & Marketing Research Applications '5G % P a g e )
M*+tivariate techni>*es
They are appropriate %hen one or more of the varia+les can +e i*entifie* as *epen*ent
varia+les an* the remaining as in*epen*ent varia+les# Multivariate statistical techniques
can +e classifie* as *epen*ence techniques an* in*epen*ence techniques#
Depen*ence techniques & are appropriate %hen one or more varia+les can +e i*entifie* as
*epen*ent varia+les an* the remaining as in*epen*ent varia+les#
"hen there is only one *epen*ent varia+le 0 the techniques like 50%ay anova- multiple
regression- t%o group *iscriminant analysis- logit analysis an* conoint analysis can +e
"hen there are more than one *epen*ent varia+le & Manova'multivariate analysis of
variance)- multiple *iscriminant analysis an* cannonical correlation#
2nter*epen*ence techniques & the varia+les are not classifie* as *epen*ent or
in*epen*entS rather the %hole set of inter*epen*ent relationships is e1amine*# These
varia+les are classifie* +ase* on varia+le inter*epen*ence or intero+ect similarity# The
e1amples of varia+le inter*epen*ence is factor analysis an* the e1amples for intero+ect
similarity are Cluster analysis an* multi*imensional scaling
Dr# M# $o%ri Shankar & Marketing Research Applications '5I % P a g e )
$actor Ana+!sis
Factor analysis is an inter*epen*ence technique in that an entire set of inter*epen*ent
relationships is e1amine*
An un*erlying *imension that e1plain correlation among the set of varia+les calle* as
Factor analysis is a general name *enoting a class of proce*ures primarily use* for *ata
re*uction an* summari/ation# 2n this large mass of *ata is to +e simplifie* an* con*ense*
Factor analysis is use* in a situation %hen there are large num+er of varia+les - most of
%hich are correlate* an* %hich must +e re*uce* to a managea+le level#
Relationships among sets of many interrelate* varia+les are e1amine* an* represente* in
terms of a fe% un*erlying factors#
2t also helps in e1tracting the overlapping information +y re*ucing the pro+lem *o%n to
ust a fe% core factors
2f the pro*uct characteristics influencing the consumer preferences are not clear- factor
analysis is use* in revealing the most important characteristics of the pro*uct among
For e1ample househol*s consi*er certain characteristics or factors in +uying furniture for
their home- investing in a +ank- automo+ile etc
Applications of factor analysis
Dr# M# $o%ri Shankar & Marketing Research Applications '57 % P a g e )
a# Mar0et Se-,entation 4 2t can +e use* in i*entifying the un*erlying varia+les to group
the customers# For e14 ne% car +uyers might +e groupe* +ase* on the relative emphasis
they place on economy- convenience- performance- comfort an* lu1ury# This might result
in five segments 4 economy seekers- convenience seekers- performance seekers- comfort
seekers an* lu1ury seekers
+# Prod*ct Research 4 to *etermine the +ran* attri+utes that influence consumer choice#
Toothpaste +ran*s might +e evaluate* in terms of protection against cavities- %hiteness of
teeth- fresh +reath an* price
For e1ample 4 The marketing manager of a t%o %heeler company *esigne* a
questionnaire to stu*y for customers fee*+ack a+out its t%o %heeler an* inturn keen in
i*entifying the factors of the stu*y
The identi.ication o. the varia+es are ?
Fuel efficiency- life of t%o0%heeler- han*ling convenience- quality of the original spares-
+reak*o%n rate- price etc
The application of the factor analysis to group these varia+les into factors
The questionnaire for factor analysis can +e *esigne* in the form of statements +y using
2nterval scale'(0I- (0; or (0 (8 %here ( = completely *isagree an* (8 = completely
agree) or Nikert rating scale ' ( & I %here ( = strongly *isagree an* I = strongly agree)
314 ,uestionnaire for t%o %heeler in the form of statements +y using Nikert0rating scale
'(=strongly *isagree - I = strongly agree)
2 use a t%o0%heeler +ecause it is affor*a+le
2t gives me a sense of free*om to o%n a t%o0%heeler
No% maintenance cost makes a t%o0%heeler very economical in the long run
2 feel very enthusiastic %hen 2 ri*e t%o0%heeler
2 like to see the a*s of t%o0%heeler on a hoar*ing
My vehicle gives me a comforta+le ri*e
2 think t%o0%heelers are safe to travel
Dr# M# $o%ri Shankar & Marketing Research Applications '5; % P a g e )
Three people shoul* +e legally allo%e* to travel on a t%o0%heeler
C+*ster Ana+!sis
Cluster Analysis is an inter*epen*ence technique of Multivariate analysis#
Cluster analysis is a class of techniques use* to classify o+ects or cases into relatively
homogenous groups calle* clusters# M+ects in each cluster ten* to +e similar to each
other an* *issimilar to o+ects in the other clusters# Cluster analysis is also calle* as
classification analysis- or numerical ta1onomy#
Cluster analysis is useful in i*entifying aggregates of consumers %ho +ehave similarly in
terms of quality consciousness an* price sensitivity#
Applications of Cluster analysis
'nderstandin- *!er ehaviors & it can +e use* to i*entify homogenous group of
+uyer# Then the +uyer +ehavior of each group may +e e1amine* %hich may +e a useful
application in the selection of retail stores# 2t has also +een use* to i*entify the kin*s of
strategies automo+ile purchasers use to o+tain e1ternal information#
Identi.!in- ne: prod*ct opport*nities 4 +y clustering +ran*s an* pro*ucts- competitive
sets %ithin the market can +e *etermine*# Pran*s in the same cluster compete more
fiercely %ith each other than %ith +ran*s in other clusters# A firm can e1amine its current
offerings compare* to those of its competitors to i*entify potential ne% pro*uct
Se+ectin- test ,ar0ets & +y grouping cities into homogenous clusters- it is possi+le to
select compara+le cities to test the pro*ucts an* various marketing strategies#
Red*cin- data & it can +e use* as a general *ata re*uction tool to *evelop clusters or
su+groups of *ata that are managea+le than in*ivi*ual o+servations# For e14 to *escri+e
Dr# M# $o%ri Shankar & Marketing Research Applications '5J % P a g e )
*ifferences in consumers@ pro*uct usage +ehavior- the consumers may first +e clustere*
into groups# The *ifference among the groups may +e then +e e1amine* using multiple
*iscriminant analysis#
2t is %i*ely use* in market segmentation stu*ies# A firm segmenting its market is seeking
to group potential customers into homogenous groups that are large enough to +e
profita+ly cultivate*#
Py *etermining the areas %here they live an* the *emographics of those areas from
census *ata- geo0*emographic segments of the population can +e forme*# 'people of
similar groups)# For e14 A sporting goo*s manufacturer %as attempting to i*entify the
market segments for all types of sporting equipment#
Other ene.its o. c+*ster ana+!sis
(#Sort househol*s *eman* patterns for electricity
5# $roup T#6 programs into similar types on the +asis of vie%ers@ reports# $roup other
me*ia in terms of the similarity of their au*ience appeal
G#Develop homogenous configurations of census e#g for consumer an* political purposes
I# group +ran*s an* pro*ucts on the +asis of ho% similar to competitors@ pro*ucts they
are perceive* to +e- thus ho% likely they are to serve as su+stitutes
7# *etermine spheres of opinion lea*ership in %or*0of0mouth net%orks
Assess the similarity of countries an* cultures in %orl* markets#
The questionnaire for cluster analysis can +e *esigne* in the form of statements +y using
2nterval scale'(0I- (0; or (0 (8 %here ( = completely *isagree an* (8 = completely
agree) or Nikert rating scale ' ( & I %here ( = strongly *isagree an* I = strongly agree)
314 ,uestionnaire for a consumer *ura+le goo*s company to kno% various features an*
services the consumers perceive %hen purchasing through catalogs can +e *esigne* in the
in the form of statements +y using Nikert0rating scale '(=strongly *isagree - I = strongly
The company shoul* provi*e toll0free num+ers
The reputation of the company shoul* +e goo*
They shoul* have *iscount schemes +ase* on quantity
Dr# M# $o%ri Shankar & Marketing Research Applications '5H % P a g e )
The company shoul* provi*e guarantee for the pro*uct
The company shoul* give a trial perio*
The sales catalog shoul* +e attractive
The company shoul* make on0time *elivery
A*vertisements play a vital role in *ecision0making
Discri,inant Ana+!sis
Discriminant analysis is a multivariate statistical technique for analy/ing *ata %hen the
criterion or *epen*ent varia+le is categorical an* the pre*ictor or in*epen*ent varia+les
are interval in nature# For e1- the *epen*ent varia+le may +e the choice of a +ran* of
personal computer '+ran* A-P- or C) an* the in*epen*ent varia+les may +e ratings of
attri+utes of Personal computers on a I or ; point Nikert scale
DA is a metho* of constructing a linear com+ination of the varia+les 'i#e#- a %eighte*
sum) in such a %ay that this ne%ly create* function optimally *iscriminates among the
groups# "e can then assess ho% the groups *iffer %ith respect to the linear com+ination
DA techniques are *escri+e* +y the num+er of categories possesse* +y the criterion
varia+le# "hen the criterion varia+le has t%o categories- the technique is kno%n as t%o0
group DA MR linear DA# For e14 NDA is use* to stu*y successful salesman an*
unsuccessful salesman in or*er to *etermine the characteristics possesse* +y successful
salesman +ut not unsuccessful salesman# Mnce the characteristics have +een i*entifie*-
the information can +e use* to recruit in*ivi*uals %ith characteristics similar to those
possesse* +y successful salesman#
"hen three or more categories are involve*- the technique is calle* multiple *iscriminant
analysis# 314 the potential +uyers can +e classifie* into light- me*ium ! heavy users# The
pri/e %inners of the competition can +e classifie* into gran* pri/e%inner- consolation
pri/e%inner ! unsuccessful pri/e%inner#
DA can +e use* to ans%er questions such as 4
Dr# M# $o%ri Shankar & Marketing Research Applications '?8 % P a g e )
2n terms of *emographic characteristics- ho% *o customers %ho e1hi+it store loyalty
*iffer from those %ho *o not.
Do heavy- me*ium- an* light users of soft *rinks in terms of their consumption of fro/en
"hat psychographic characteristics help *ifferentiate +et%een price0sensitive an* non
price sensitive of groceries
Do the various market segments *iffer in me*ia consumption ha+itsL
2n terms of lifestyles- %hat are the *ifferences +et%een heavy patrons of regional
*epartment store chains an* patrons of national chainsL
"hat are the *istinguishing characteristics of consumers %ho respon* to *irect mail
DA is useful in *etermining the characteristics that *ifferentiate the follo%ing 4
light an* heavy users of a pro*uct
purchasers of our +ran* an* those of competing +ran*s
Customers %ho patroni/e every0*ay0lo%0pricing retail outlets those %ho shop at high0
en*- service0oriente* ones
$oo*- me*iocre- an* poor sales representatives
$oo* an* poor loan risks
To *etermine the characteristics that *istinguish the listening au*iences of ra*io stations
To *ifferentiate among segments of automo+ile +uyers
To pre*ict a*opters an* non a*opters of ne% pro*ucts
To relate purchase +ehavior to a*vertising e1posure
To *etermine the relationship +et%een personality varia+les an* consumer *ecisions#
To un*erstan* the *ifferences +et%een househol*s that save their money at commercial
+anks versus those %ho choose savings an* loan institutions
To assess the *ifferences in importance of various attri+utes %here the same pro*ucts are
+eing purchase* in *ifferent countries
Dr# M# $o%ri Shankar & Marketing Research Applications '?( % P a g e )
To *etermine the factors that supermarket +uyers use in *eci*ing %hether to stock a ne%
pro*uct or not
Practical e1amples of DA
Discriminant analysis can +e use* +y cre*it rating agencies to rate in*ivi*uals or to
classify them into goo* len*ing risks or +a* len*ing risks
A soft *rink company %ants to stu*y a+out soft *rinkers %ho prefer *ifferent +ran*s of
soft *rink# This information is useful ho% the respon*ents in their target market are
*ifferent from the respon*ents not in their target market#
A +ank can use DA to classify their cre*it car* hol*ers as *efaulters or non *efaulters#
A retail outlet can estimate their consumer +ehavioral pattern of the purchase of pro*ucts
+y the consumers in t%o categories & national an* international +ran* accepters
The fmcg goo*s company can *iscriminate their *ealers as potential successful or
potential unsuccessful#
Oote 4 DA is similar to the multiple regression technique# The form of the equation in a
t%o0varia+le DA is 4 T = a < k(1( < k515 %hich is calle* as the *iscriminant function# @ is
*epen*ent varia+le an* /A an* /B are the in*epen*ent varia+les- 0A an* 0B are the
coefficients of the in*epen*ent varia+les- an* a is a constant# The *ifference +et%een
regression an* DA is that in regression- the *epen*ent varia+le is continuous %hereas in
DA it is categorical# All the other in*epen*ent varia+les in DA are continuous
KA an* 0B are also calle* as unstan*ar*i/e* *iscriminant function coefficients
Dr# M# $o%ri Shankar & Marketing Research Applications '?5 % P a g e )
Con3oint Ana+!sis 6CA7
CA attempts to *etermine the relative importance consumers attach to salient attri+utes
an* the utilities they attach to the level of attri+utes# This information is *erive* from
consumers@ evaluations of +ran*s- or +ran* profiles compose* of these attri+utes an* their
levels# The respon*ents are presente* %ith stimuli that consist of com+inations of
attri+ute levels# They are aske* to evaluate these stimuli in terms of their *esira+ility# The
un*erlying assumption is that any set of stimuli such as pro*ucts- +ran*s- or stores- is
evaluate* as a +un*le of attri+utes# Ca seeks to *evelop the part0%orth utility functions
*escri+ing the utility consumers attach to the levels of each attri+ute#
Characteristics o. CA
Determining the relative importance of attri+utes in the consumer choice process- a
stan*ar* output from CA consists of *erive* relative importance %eights for all the
attri+utes use* to construct the stimuli use* in the evaluation task# The relative
importance %eights in*icate %hich attri+utes are important in influencing consumer
3stimating market share of +ran*s that *iffer in attri+ute levels# The utilities *erive* from
conoint analysis can +e use* as input into consumer choice simulator to *etermine the
share of choices- an* hence the market share- of *ifferent +ran*s#
Determining the composition of the most preferre* +ran*# The +ran* features can +e
varie* in terms of attri+ute levels an* the correspon*ing utilities *etermine*# The +ran*
features that yiel* the highest utility in*icate the composition of the most preferre* +ran*#
Dr# M# $o%ri Shankar & Marketing Research Applications '?? % P a g e )
Segmenting the market +ase* on similarity of preferences for attri+ute levels# The part0
%orth functions *erive* fro the attri+utes may +e use* as a +asis for clustering
respon*ents to arrive at homogenous preference segments#
Applications of CA have +een ma*e in consumer goo*s- in*ustrial goo*s- financial- an*
other services#
The goal of CA is to *etermine the features that respon*ents most prefer# Consumers
might use such attri+utes as mileage per k#m- seating capacity- price- length of %arranty
in making u*gments a+out %hich automo+ile they prefer#
CA is also use* in *istri+ution *ecisions & to evaluate ven*ors- *etermine the re%ar*s that
a salesforce values etc
The specific applications also inclu*e ne% pro*uct.concept i*entification- competitive
analysis- pricing- market segmentation- a*vertising an* *istri+ution#
CA is use* in $reen Marketing- %here it is use* to fin* out the preferences of
environmentally frien*ly pro*ucts
CA is use* in market segmentation 0 for e14 consumers seeking lu1ury cars a+out safety
an* service- smooth ri*e- *esign etc
CA is also use* in *etermining consumer preferences in services like airlines- health
organi/ations- tourism etc#
CA may +e vie%e* as a special application of *ummy varia+le regression#
CA allo%s the intro*uction of nominal varia+les in the regression equation#
Practica+ app+ication o. CA
For e14 the marketer is consi*ering to intro*uce a ne% coffee maker an* %ish to assess
ho% consumers evaluate the follo%ing levels of each of these pro*uct attri+utes
Capacity & G- J- (8 cups
Price & 5888- ?888- G888 Rs#
For all the a+ove three attri+utes capacity- price an* +re%ing time- most consumers %oul*
pro+a+ly prefer either the most or least of each property & the largest capacity maker- the
shortest +re%ing time- at the lo%est time#
2n CA consumers %ere aske* to rank the preferences of the attri+utes an* the relative
importance for each level of attri+utes is calculate*# The attri+utes %ith highest relative
Dr# M# $o%ri Shankar & Marketing Research Applications '?G % P a g e )
importance is consi*ere* as one of the most important feature to +e inclu*e* in the
pro*uct *esign#
For e1 4 A paint in*ustry i*entifie* the attri+utes %hich are important to the customers are
classifie* as follo%s4
Nife of the paint & ?- G- I years
Price of the paint & I8- 78- ;8 Rs.litre
Color & green- re*- +lue
The consumers %ere aske* to consumers %ere aske* to rank the preferences of the
attri+utes an* the relative importance for each level of attri+utes is calculate*#
The attri+utes %ith highest relative importance is consi*ere* as one of the most
important feature to +e inclu*e* in the pro*uct *esign +y the marketer# 2n the a+ove e14 a
num+er of ?1?1? = 5; com+inations of preferences %ere generate* on the given pro*uct
e#g of pro*uct *esign 4 I Tears- Rs#I8-green or G years- Rs#I8- +lue etc
Dr# M# $o%ri Shankar & Marketing Research Applications '?I % P a g e )
Cons*,er Research
Consumer Research consists of
Research on profile of consumer
Research on +uying roles
Research on +uying process
Research on consumption patterns
Methods o. cond*ctin- Cons*,er Research
Consumer Research is highly qualitative than quantitative# The metho*s use* in the
Consumer Research are as follo%s 4
Focus $roup 2ntervie%
2n & *epth 2ntervie%
Proective Techniques
$oc*s Gro*p Intervie: & 2t is an intervie% con*ucte* +y a traine* mo*erator %ith a group
of respon*ents in the form of free association# The mo*erator esta+lish the rapport %ith the
participants to keep %ith the *iscussion moving
App+ications o. $oc*s -ro*p Intervie:
Kn*erstan*ing consumer perceptions- preferences ! +ehaviour concerning a pro*uct
Dr# M# $o%ri Shankar & Marketing Research Applications '?7 % P a g e )
M+taining impressions of ne% pro*uct concepts
Developing creative concepts ! copy material for a*vertisements
Securing price impressions
Securing preliminary Consumer reactions to specific marketing program
In8depth Intervie: 2t is an *irect or personal intervie% %ith the respon*ent in %hich the
respon*ent is pro+e* +y a highly skille* intervie%er to kno% un*erlying motivations-
attitu*es- feelings on a topic
App+ications o. In8depth Intervie:
Detaile* un*erstan*ing of the complicate* +ehaviour of the respon*ent#
Discussion on confi*ential- sensitive issues %ith the respon*ent %here the strong social
norms e1ist#
2ntervie%s %ith professional people'in*ustrial marketing research)
2ntervie%s %ith competitors %ho are unlikely to reveal the information is a group setting
Situations %here the pro*uct consumption e1perience is sensory in nature %hich affects
the moo*s an* emotions of the people
Proective techniques & 2t is an in*irect form of questioning that encourages the
respon*ent to proect their un*erlying motivations- +elief- attitu*es etc regar*ing the
issues of concern
2n proective techniques- the respon*ents are aske* to interpret the +ehaviour of others
than their o%n +ehaviour#
T!pes o. Pro3ective techni>*es
Association techniques0 %or* association- sentence completion- story completion
Construction techniques & Picture response of Thematic Apperception Test'TAT)
31pressive techniques & Role playing- Thir* Party Metho*
Dr# M# $o%ri Shankar & Marketing Research Applications '?; % P a g e )
Consumer research is highly qualitative
2t focus in un*erstan*ing consumer perceptions- motivations- attitu*es etc %here the
+ehaviour of the consumers is highly sensitive
*Note cons*,er *!in- decision process can a+so e considered as the ,a3or
co,ponent o. the cons*,er research
$or,at o. the Report Preparation
Report Preparation invo+ves the .o++o:in- .or,at
Title Page
2nner Cover Page
Nist of ta+les.charts.e1hi+its
31ecutive summary
Chapter A 6Introd*ction7
2n*ustry Profile
Company Profile
Pro*uct Profile
Dr# M# $o%ri Shankar & Marketing Research Applications '?J % P a g e )
Chapter B
Scope of the stu*y
Statement of the pro+lem
Statement of Aypothesis
Chapter C
Revie% of Niterature
Chapter 9 6Research Methodo+o-!7
Research Design & type of research *esign
Research 2nstrument
Sources of Data
Sampling frame- Sampling metho*
Statistical tools use*
Chapter ; 6Data ana+!sis and Interpretation7
Ta+les- Charts- 2nferences
Chapter =
Dr# M# $o%ri Shankar & Marketing Research Applications '?H % P a g e )
Criteria .or Report #ritin-
Acco*ntai+it! & the report shoul* take into account the rea*ers@ technical sophistication
an* interest in the proect- as %ell as the circumstances un*er %hich they %ill rea* the
report an* ho% they %ill use it#
Eas! to .o++o: & the report shoul* +e structure* logically an* %ritten clearly# The
material particularly the +o*y of the report- shoul* +e structure* in logical manner so that
the rea*er can easily see the inherent connections an* linkages#
Presenta+e and Pro.essiona+ Appearance & the report shoul* +e professionally
repro*uce* %ith quality papers- typing an* +in*ing
O3ectivit! & is a virtue that shoul* gui*e report %riting# The report shoul* accurately
present the metho*ology- results an* conclusions of the proect- %ithout slanting the
fin*ings to conform to the e1pectations of the management
Rein.orce te/t :ith ta+es and -raphs & 2t is important to reinforce the key information
in the te1t %ith ta+les- graphs- pictures- maps an* other visual services# 6isual ai*s
facilitate communications an* a** to the clarity an* impact of the report Ta+les in the
report shoul* have Title an* num+er of the ta+le- Arrangement of the *ata items-
e1planations an* comments- hea*ings- footnotes- sources of *ata etc# The graphs may +e
in the form of pie charts- Nine charts- +ar charts- histograms etc
Terse & A report shoul* +e terse an* concise# Avoi* lengthy *iscussions of common
proce*ures# Anything unnecessary shoul* +e omitte*#
Criteria of Report "riting & Accounta+ility- 3asy to follo%- Presenta+le an* Professional
Appearance- M+ectivity- Reinforce te1t %ith ta+les an* charts- Terse#
Dr# M# $o%ri Shankar & Marketing Research Applications 'G8 % P a g e )
Dr# M# $o%ri Shankar & Marketing Research Applications 'G( % P a g e )