advanced marketing research

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advanced marketing research

© All Rights Reserved

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You are on page 1of 20

22-12-2014

Preparing

Advanced Marketing Research

(with SPSS)

AMR @ Dr. Vikas Goyal

Key Concepts

Construct (or Concept or Variable)

occurrences, or processes.

Relatively concrete constructs

Age, gender, number of children, education, income

Preference, brand-loyalty, satisfaction, happiness, etc.

Measurement

What (or how many) measures to keep? Ask open/close-ended

Qs?

Scaling

objects are located.

Ask actual income/askAMRbucketed-income?

@ Dr. Vikas Goyal

22-12-2014

Scale Characteristics

Description

By description, we mean the unique labels or

descriptors that are used to designate each

value of the scale. All scales possess

description.

Order

By order, we mean the relative sizes or

positions of the descriptors. Order is denoted

by descriptors such as greater than, less than,

and equal to.

AMR @ Dr. Vikas Goyal

Scale Characteristics

Distance

The characteristic of distance means that

absolute differences between the scale

descriptors are known and may be expressed

in units.

Origin

The origin characteristic means that the scale

has a unique or fixed beginning or true zero

point.

AMR @ Dr. Vikas Goyal

22-12-2014

Scaling

Type of scale depends on type of data!

Type of Scale

Nominal

Ordinal

Interval

Information content

increases

Ratio

Scaling

Techniques

Noncomparative

Scales

Comparative

Scales

Paired

Comparison

Constant

Sum

Continuous

Rating Scales

Rank

Order

Itemized

Rating Scales

Likert

Stapel

AMR @ Dr. Vikas Goyal

Semantic

Differential

22-12-2014

SPSS-Variable View

Column

What it Means

versions, newer versions of SPSS are not limited to 8 characters,

Name

but lengthy descriptions should not be included in the Name. They

go in the Label column.

This column indicates the type of variable that is reflected in this

particular row. There are 8 options: Numeric, Comma, Dot,

Scientific notation, Date, Dollar, Custom currency, and String. Most

variables beginning users will encounter are either Numeric or

Type String variables. Numeric variables are numbers that represent a

value. String numbers are text and can only be treated as such. As

a result, very few manipulations can be performed on them in

SPSS.

Width

variable values.

AMR @ Dr. Vikas Goyal

SPSS-Variable View

Column

What it Means

Decimals This column allows you to control the number of characters after the

Label

decimal place.

This column allows you to provide a more extensive description of the

variable.

This column allows you to provide a key for what the numbers of a

numeric variable may represent (e.g., 1=Female, 2=Male).

This column allows you to indicate whether there are any missing

Missing values in a variable. Values marked as missing are excluded from

analyses in SPSS.

Values

Columns This column indicates the total number of columns a variable's values

may have.

Align

This column indicates the alignment of the variable in the Data View.

This last column indicates the level of measurement of the variable.

Measure There are three from which you can choose: Nominal, Ordinal, and

Scale.

AMR @ Dr. Vikas Goyal

22-12-2014

Data Preparation

Missing Value Treatment

User-defined missing values

System-missing values

Coding

Pre-coded

Coding open-ended questions

Re-coding

Compute Variable

Sub-setting data

Select-if

Split file

AMR @ Dr. Vikas Goyal

(Freq. Dist. & Cross Tab)

(With SPSS)

AMR @ Dr. Vikas Goyal

22-12-2014

Frequency Distribution

In a frequency distribution, one variable is

considered at a time.

A frequency distribution for a variable produces

a table of frequency counts, percentages, and

cumulative percentages for all the values

associated with that variable.

Frequency Distribution (single variable all levels)

for descriptive stats of data

AMR @ Dr. Vikas Goyal

Frequency Distribution:

Measures of Location

Central Tendency

Mean, Median-middle value, Mode-most frequent

Measures of Variability

Range (Largest-Smallest)

Deviation from the mean

Variance Mean Squared Deviation

Std. Deviation (s) root of variance

Coefficient of Variation (s/mean)

Unitless & expressed as %

Measure of relative variability (can be used in segmentation)

Measures of Shape

Skewness

Kurtosis (zero for normal)

AMR @ Dr. Vikas Goyal

22-12-2014

Variables

Variable

Population

Sample

Mean

Proportion

Variance

s2

Standard deviation

Size

Sx

(X-)/

Sp

(X-X)/S

S/X

Cross-Tabulation

While a frequency distribution describes one variable at a

time, a cross-tabulation describes two or more variables

simultaneously.

Cross-tabulation results in tables that reflect the joint

distribution of two or more variables with a limited number

of categories or distinct values.

Cross Tab (multiple variables all levels) for exploring interdependence of variables, for example:

How many brand-loyal customers are males?

Is product ownership related to income levels?

Is familiarity with the new product related to age and

education levels?

AMR @ Dr. Vikas Goyal

22-12-2014

Gender

Internet Usage

Male

Female

Row

Total

10

15

10

15

Column Total

15

15

Pet Adoption

Gender

Male

Row

Total

10

50

60

30

10

40

Pet

Female

Dog

Cat

Column Total

40

60

0

100

How generalizable is this?

How reliable is this for the population?

AMR @ Dr. Vikas Goyal

22-12-2014

Chi-Square

Chi-Squared Test

comprehensive analysis rather than random chance

testing statistical significance of observed association.

percentages.

The chi-square statistic ( 2 ) is used to test the

statistical significance of the observed association

in a cross-tabulation.

Chi-Square stats

n n

fe = nr c

where

nr

nc

n

= total number in the column

= total sample size

Contingency coefficient:

C = ( 2 / 2 + n)1/2

Measure of the strength of association between the

variables

Ranges from 0 - 1

AMR @ Dr. Vikas Goyal

22-12-2014

Chi-Square stats

Cramers V = [(2/n)/(Min (r-1),(c-1))]1/2

Measures strength of association, for any sized

table

Range from 0 - 1

Phi-Coefficient = (2 / n)1/2

Degree of Freedom (df) = (c-1)*(r-1)

Chi-Square stats

Chi-Square = 34.0278

Contingency coefficient = 0.5038

Cramers V = 0.5833

Phi-Coefficient = 0.5833

DOF = (2-1)*(2-1) = 1

10

22-12-2014

Degrees

of

Freedom

(df)

Probability (p)

0.95 0.90 0.80 0.70 0.50 0.30 0.20 0.10 0.05

1

2

3

4

5

6

7

8

9

10

0.01

0.001

0.004

0.02

0.06

0.15

0.46

1.07

1.64

2.71

3.84

6.64

10.83

0.10

0.21

0.45

0.71

1.39

2.41

3.22

4.60

5.99

9.21

13.82

0.35

0.58

1.01

1.42

2.37

3.66

4.64

6.25

7.82

11.34

16.27

0.71

1.06

1.65

2.20

3.36

4.88

5.99

7.78

9.49

13.28

18.47

1.14

1.61

2.34

3.00

4.35

6.06

7.29

9.24

11.07

15.09

20.52

1.63

2.20

3.07

3.83

5.35

7.23

8.56

10.64

12.59

16.81

22.46

2.17

2.83

3.82

4.67

6.35

8.38

9.80

12.02

14.07

18.48

24.32

2.73

3.49

4.59

5.53

7.34

9.52

11.03

13.36

15.51

20.09

26.12

3.32

4.17

5.38

6.39

8.34

10.66

12.24

14.68

16.92

21.67

27.88

3.94

4.86

6.18

7.27

9.34

11.78

13.44

15.99

18.31

23.21

29.59

Nonsignificant

Significant

Conclusion

As Chi-Square (34.02) > threshold Value (3.84,

at p=0.05)

There is a significant relationship between the

gender and pet adoption behaviour.

The strength of this relationship is about

58.33%

11

22-12-2014

Session 4:

Statistical Hypothesis Testing

(With SPSS)

AMR @ Dr. Vikas Goyal

Hypothesis is a statement that tries to explain

observed results of a phenomenon

Hypothesis may be testable or non-testable

Sales promotions leads to higher sales

There are other earth like planets; etc.

with hypotheses that are statistically testable

based on the observable evidences/results.

AMR @ Dr. Vikas Goyal

12

22-12-2014

The null hypothesis refers to a specified value of

the population parameter (e.g., , , ), not a

sample statistic (e.g., X ).

A null hypothesis may be rejected, but it can

never be accepted based on a single test.

In classical hypothesis testing, there is no way to

determine whether the null hypothesis is true.

quo, one of no difference or no effect. If the null

hypothesis is not rejected, no changes will be

made.

AMR @ Dr. Vikas Goyal

An alternative hypothesis is the one which

proposes to explain the observed results,

when the null hypothesis is being rejected (or

is not able to explain the observed results).

Alternative hypothesis is drawn in such a way

that rejection of null hypothesis implies that

alternative hypothesis can be accepted.

13

22-12-2014

Different alternative hypothesis can be drawn

from the same Null hypothesis:

H0: Higher prices will lead to lower sales

H1: price has no effect on sales

H1: Higher price leads to higher sales, due to

higher price-quality perception

Formulate H0 and H1

Select Appropriate Test

Choose Level of Significance

Collect Data and Calculate Test Statistic

Determine Probability

Associated with Test

Statistic

Compare with Level of

Significance,

Test Statistic TSCR

Determine if TSCAL falls

into (Non) Rejection

Region

Draw Marketing Research Conclusion

AMR @ Dr. Vikas Goyal

14

22-12-2014

Example

A firm is testing the effect of a new kind of Sales

Promotions (SP) on the sales. The firm offered

the SP in 100 stores and recorded they levels of

sales.

It is known that the mean level of sales without

the SP = 61 Cr./month

The obtained results:

The mean sales with SP across 100 stores = 66.7

Sample Std. Deviation = 18.69 Cr./month

Did SP had an effect on the sales?

AMR @ Dr. Vikas Goyal

mean sales = 61 (even with the SP are offered)

mean sales is not = 61 (when SP are offered)

mean sales > 61 (when SP is offered)

Assuming that H0 is true, what is the

probability of obtaining the observed results?

i.e. P-value:

AMR @ Dr. Vikas Goyal

15

22-12-2014

1%), it suggests that the observed data is

inconsistent with the assumption of H0, (i.e. of

no relationship), and

Thus H0 can be rejected and it can be said that

a relationship does exist.

The Error

When we draw inference about population based

on the sample, there is risk of making two types

of errors.

Type I Error

Type I error occurs when the sample results lead

to the rejection of the null hypothesis when it is

in fact true.

The probability of type I error ( ) is also called

the level of significance.

AMR @ Dr. Vikas Goyal

16

22-12-2014

The Error

Type II Error

Type II error occurs when, based on the sample

results, the null hypothesis is not rejected when it

is in fact false.

The probability of type II error is denoted by .

Unlike , which is specified by the researcher, the

magnitude of depends on the actual value of

the population parameter (proportion).

The risk of both and can be controlled by

increasing the sample size.

AMR @ Dr. Vikas Goyal

Hypothesis Testing

Parametric tests assume that the variables of interest are

measured on at least an interval scale.

Nonparametric tests assume that the variables are

measured on a nominal or ordinal scale.

These tests can be further classified based on whether one

or two or more samples are involved.

AMR @ Dr. Vikas Goyal

17

22-12-2014

Hypothesis Tests

Parametric Tests

(Metric Tests)

One Sample

* t test

* Z test

Non-parametric Tests

(Nonmetric Tests)

One Sample

Two or More

Samples

Independent

Samples

* Two-Group t

test (Mean)

* Z test

* Chi-Square

* K-S

* Runs

* Binomial

Paired

Samples

* Paired

t test

(Proportion)

AMR @ Dr. Vikas Goyal

Two or More

Samples

Independent

Samples

Paired

Samples

* Chi-Square

* Mann-Whitney

* Median

* K-S

* Sign

* Wilcoxon

* McNemar

* Chi-Square

One Sample

H0: SP had no effect on sales, i.e.

mean sales = 61 (even with the SP are offered)

mean sales 61 (when SP are offered)

H0:

H1:

61.0

61.0

t = (X - )/sX

s X = s/ n

AMR @ Dr. Vikas Goyal

18

22-12-2014

The samples are independent if they are drawn

randomly from different populations. For the

purpose of analysis, data pertaining to different

groups of respondents, e.g., males and females,

are generally treated as independent samples.

Suppose we wanted to determine whether the effect

of SP is different for Mumbai compared to Delhi. A twoindependent-samples t-test would be conducted.

F-test

Two sample test:

F-test: this is performed if it is not known whether the two

groups have equal variance, i.e. Equal variance not

assumed. For Ex. Variance of male and female

respondents on a particular variable in question (ex;

internet usage) is same.

H0: the two variables have Equal Variance

H1: The two variables DO NOT have Equal Variance

If F-test comes out to be significant.. This implies that H0

can be rejected.. i.e. the two variables do not have equal

variance. And thus take the results under this head.

AMR @ Dr. Vikas Goyal

19

22-12-2014

The samples are paired when the data for the two

samples relate to the same group of respondents.

Determine if the stored differed in the cost of running SP and

the income from SPs.

Determine if running the SP will be profitable (compare cost

versus income) for the firm?

Determine if the SP will have different profitability (compare

cost versus income) across Mumbai and Delhi?

SPSS Example

Please Run the following Parametric Tests:

Determine if the mean level of familiarity with internet

is more than 4.0

Determine if the internet usage is significantly different

for male and female

Determine if the mean level of familiarity with internet

is significantly different for male and female

Determine if the respondents significantly differed in

their attitude toward the Internet and attitude toward

technology.

Determine if the male and female respondents

significantly differed in their attitude toward the

Internet and attitude toward technology.

AMR @ Dr. Vikas Goyal

20

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