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Meaning and Scope of Marketing Research

According to American Marketing Association, “Marketing Research is the function that links the
consumer, customer and public to the marketer through information-information used to identify
and define marketing opportunities and problems, generate, refine and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a process.”
Marketing Research is systematic problem analysis, model building and fact finding for the purpose
of important decision making and control in the marketing of goods and services.
Marketing Research is a well-planned, systematic process which implies that it needs planning at all
the stages. It uses scientific method. It is an objective process as it attempts to provide accurate
authentic information. Marketing Research is sometimes defined as the application of scientific
method in the solution of marketing problems.
Marketing Research plays a very significant role in identifying the needs of customers and meeting
them in best possible way. The main task of Marketing Research is systematic gathering and
analysis of information.
Before we proceed further, it is essential to clarify the relationship and difference between
Marketing Research and Marketing Information System (MIS). Whatever information are generated
by Marketing Research from internal sources, external sources, marketing intelligence agenciesconsist the part of MIS.
MIS is a set of formalized procedures for generating, analyzing, storing and distributing
information to marketing decision makers on an ongoing basis.
1. While Marketing Research is done with a specific purpose in mind with information being
generated when it is conducted, MIS information is generated continuously.
2. MIS is continuous entity while Marketing Research is a ad-hoc system.
3. While in Marketing Research information is for specific purpose, so it is not rigid; in MIS
information is more rigid and structured.
Marketing Research is essential for strategic market planning and decision making. It helps a firm
in identifying what are the market opportunities and constraints, in developing and implementing
market strategies, and in evaluating the effectiveness of marketing plans.
Marketing Research is a growing and widely used business activity as the sellers need to know
more about their final consumers but are generally widely separated from those consumers.
Marketing Research is a necessary link between marketing decision makers and the markets in
which they operate.

Marketing Research includes various important principles for generating information which is
useful to managers. These principles relate to the timeliness and importance of data, the
significance of defining objectives cautiously and clearly, and the need to avoid conducting
research to support decisions already made.
Marketing Research is of use to the following:1. Producers
a. To know about his product potential in the market vis-à-vis the total product;
b. New Products;
c. Various brands;
d. Pricing;
e. Market Structures and selection of product strategy, etc.
2. Business and Government
Marketing Research helps businesses and government in focusing attention on the complex
nature of problems faced by them. For example:
a. Determination of Gross National Product; Price indices, and per capita income;
b. Expenditure levels and budgeting;
c. Agricultural Pricing;
d. The economic policies of Government; and
e. Operational and planning problems of business and industry.
3. Market Research Agencies
Marketing Research is being used extensively by professionals to help conducting various
studies in Marketing Research. Most prominent agencies being:a. Linta India Ltd;
b. British Market Research Bureau (BMRB);
c. Hindustan Thompson Associate Ltd;

4. Managers
Marketing Research: Step by Step Execution
The main purpose of marketing research is to lower the uncertainty and risk in marketing decisionmaking. To achieve this, several stages are followed which are depicted in the flow diagram below.

Let us look at each stage meticulously.

The research process begins with a brief from the client. Client may find a research partner
if he is faced with a problem or has a decision to make. Unless he has a clear idea about the

situation at hand, exploratory research (described in the previous chapter) needs to be
undertaken to define the problem correctly and to frame the research objectives.

Exploratory research can be conducted by:

Secondary Data: analyzing Company’s historical data or literature review.

Experience Survey: Involves taking expert opinion to gain knowledge on the topic.

Pilot Study: Undertaking a mini research project on the lines of the full fledged one.

Case Study: Finding insights to structure the problem by referring similar cases in
other companies or a past resembling situation within the same company.

Next step is to decide on the research design to carry out the study. Data needs to be
gathered from respondents and this can be done in two ways:

Primary: This is information collected first hand from the respondent in the form of
a survey. The techniques used are:

Personal or telephonic interviews

Paper or electronic questionnaires

2. Secondary Data: This is pre collected data and can be obtained either from external sources
such as trade associations, government, etc or from within the company (proprietary
3. Observation, i.e. recording of environmental conditions and Experiment, either laboratory or
field are other research methods that can be used for data collection. Test marketing is a
controlled experiment that is used to check the response to a new product or a new
marketing plan. Example, a new brand of shampoo by P&G will be released for a limited
time only in a few cities to check the anticipated acceptability within the country once
launched full fledged. If the reviews from the small sample of respondents are positive, the
shampoo will be released in the market. Else, it will either be shelved off or modified taking
inputs from the respondents.
4. Data can be gathered from respondents by any of the methods described above depending
on their applicability. But data has to be collected from a sufficient number of people for it
to be valid and reliable. This ‘ideal’ number of people is called the sample which is nothing
both a subset of the target population. Generally, the more the number of people taken in the
sample, the more precise the outcome will be. However, random people cannot be chosen;
they have to be representative of the target population. For example, women aged 35+
should be used as respondents in the sample for an anti ageing cream brand.
Following are some of the practised ways of forming a sample:

Convenience Sampling: Easiest way that collects data from respondents that are
easily available and hence is random. For example, asking people who appear
relatively free to fill out a questionnaire at a mall.

Quota Sampling: Here people are chosen from a group in a certain proportion. For
example, if a class has 100 students with a majority of girls, say 70% girls, we
would include 7 girls and 3 boys for our sample of size of 10 students.

Snowball Sampling: This sampling method is deployed when the appropriate
respondents are sparse. Data is gathered from the available people and they are
asked in turn to refer other similar respondents. The researcher then approaches
these referred respondents and thus the chain grows.

Cluster Sampling: The entire population is divided into clusters according to their
homogeneity. The clusters themselves are diverse, but members within a cluster are
similar. One member is then chosen from each cluster to form a sample. This method
is typically used when the population is diverse, but each type must be
accommodated and hence one representative is chosen from each group/cluster.

After collecting the sampled data, it has to be ‘cleaned’. This is known as editing.
Editing is necessary for legibility and consistency. It is a time consuming process as
the data has to be checked thoroughly. For example, during data collection, the birth
year of a respondent may be recorded as 1873. It has to be edited to 1973 as that is
more likely.

The edited data is then ready for coding wherein a numerical symbol is assigned to
each set of data. Coding facilitates data entry into computers.

This is illustrated in the table below:
Recorded Data

Assigned Code

What is your level of play?










Qualitative data comes into a variety of forms like interview transcripts.Qualitative Research is generally undertaken to develop an initial understanding of the problem. It uses an inductive method. Types of Data 1. The explanations are emerged from the data itself. Summary  Main Body: Introduction. Qualitative Research. Recommendations. Depth Interview . etc that will be elaborated in later chapters. This coded data is then interpreted using various statistical techniques such as regression. Table of contents. It is used in exploratory research design and descriptive research also.Secondary data is the data that have been already collected by and readily available from other sources. The result of this analysis is patterns or findings of our research problem that have to be documented in a report. 2.Primary data is the data which is collected first hand specially for the purpose of study. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data can not be obtained at all. it makes use of disguised method. the report consists of the:  Prefatory Parts: Title. Typically. Data Collection in Marketing Research Data Collection in Marketing Research is a detailed process in which a planned search for all relevant data is made by researcher. that is. Methodology. Direct Collection Method-When the data is collected directly. It is non statistical in nature. diaries and notes made while observing. Data Collection Methods 1. Conclusion and The final report is presented to the client. data relevant to some topics are collected and grouped into appropriate meaningful categories. Focus Groups ii. factor and cluster analysis. There are two main methods for collecting Qualitative data a. Limitations. primary data is original data collected by researcher first hand. It is collected for addressing the problem at hand. general tables and bibliography.  Appended Parts: Data collection forms. Secondary data. Purpose of data collection is not known. detailed calculations. Thus. This method makes use ofi. documents. Primary Data.

Indirect Collection-Method i.Quantitative Research quantifies the data and generalizes the results from the sample to the population. It helps in identifying and perceiving the underlying opinions. To sum up. the qualitative approach helps decipher the less rational and more emotional perspective of the consumer’s decision making nature. Qualitative research aids the formulation of hypothesis to be used for deeper exploration or quantification. how would I feel if I were in the consumers’ shoes? Usage Qualitative studies assist in the following business situations:  Market Study: Analyzing consumer interest in the company’s new idea in a particular demographic. behaviour patterns and motivations. Let us take the discussion further from here. what should be said and how should it be said. it adds richness to the information gathered by quantitative research by understanding instead of measuring. In a way. . Qualitative Research Focus In a nutshell. data can be colleted by two methods a. i.Concept As the names suggest quantitative research produces numerical data whereas qualitative research generates non numerical data. When there is little or no ambiguity and the business problem is structured. Observation Method Qualitative and Quantitative Research .e. Case Study b. we implement descriptive or casual research and use quantitative techniques for it. Quantitative Research. qualitative research gives us vital insights in comprehending why do consumers feel or behave in a manner they do. Survey Method b.iii. this is only a superficial understanding of the terms. while exploring the types of research. In Quantitative Research. Projective Techniques 2. In the first chapter. we deploy exploratory research and use qualitative studies for it.  New Product Development: Understanding the actual need of the end user. However.  Creative Development Research: Pertaining to branding. we had hinted that when there is uncertainty or when the problem is not clearly defined.

It helps obtain initial reactions to marketing programs or understand the consumers’ impressions about a new product concept. These are ways of extracting information from respondents that capture the emotions in consumer behaviour. In Depth Interviews: Personal interviews are conducted instead of focus groups in the following cases:  Discussing sensitive. Techniques Qualitative research can be carried out by: 1. 2. confidential or embarrassing topics (Example: Women’s hygiene issues)  Requirement of detailed probing (Example: Purchase psychology for an automobile is best done with the respondent one on one)  Situations where the respondent may get influenced by the group response (Example: Opinion on TV censorship where social norms prevail)  Interviews with highly professional people with busy schedules (Example: Understanding required from doctors on a new medical topic ) Another term associated with qualitative research and worth mentioning here are projective techniques. Diagnostic Studies: Understanding how is the company’s category or brand doing as compared to the competitor’s offerings and image respectively. projective techniques such as the below ones are used:  Brand Personalities: The strength of advertising can be tested by imagining brands as persons or objects. asking that if Sunsilk was a person. the conversation is shifted to the topic of research. Respondents. Direct questions may give sensible answers. Focus Group Discussions: This is the most effective and preferred technique for qualitative studies. For example if the word Coke brings out the first mentioned word as happiness. Coke is maintaining its strong brand image. For this reason. Often direct questions do not bring out the hidden motivations as consumers are themselves not fully aware of their reasons and naturally are not able to express themselves fully. For example. but they may not necessarily be ‘real’ answers. what would he be like?  Collages: Asking respondents to draw collages of a brand to help understand what consumers think about symbols used for advertising the brand. are made comfortable and asked general questions first. Gradually. Quantitative Research Focus . in a group of 5-8 people.  Word Association: First word that comes to mind upon mentioning a particular word.

 Hybrid: A fusion of techniques can be used to record better responses. online. For example. Basically. For now. The aftermath of quantitative research is results that are projectable because they are drawn statistically. while guiding. This actually means that if the survey is reoccurred 100 times. Online surveys are instant and hence should be deployed when there is a time crunch. When interaction is required. the respondent at the end may not be interested in taking up the survey or answering all questions seriously. Thus a decisive stance can be taken from the facts presented in this research. telephonic.  Telephonic & Face-to-face survey: There is little scope of error in these types of survey as the interviewer is available for assistance. However the major drawback is that feedback cannot be obtained from the respondent. Another characteristic of quantitative research is that it is drawn from a reasonably sized and carefully selected sample which is representative of the target population. a terminology of 95% confidence interval is considered good while deciding the sample sizes. we will explore the methods for conducting a survey. The methods of choosing a proper sample are discussed in the previous chapter. However. The choice of the above mediums depends on the budget. mail surveys can be used. The downside is that without incentive. if the marketing budget is increased by 15%. while qualitative research is subjective. The survey can be done through various mediums such as face-to-face. . how much is the revenue expected to increase. 95 times the same response would be obtained.  Mail survey: Mail surveys are convenient and maintain anonymity of the respondent.The aim of this method is to consume numerical data and present facts or uncover patterns in the study. email. If budget is a constraint. Techniques Data collection for quantitative studies is done by various kinds of surveys using questionnaires. the test hypothesis holds true and the company should invest more in its marketing. Usage Quantitative research is most widely used for determining cause effect relations. etc. the interviewer may sometimes influence the respondent leading to biased answers. time and complexity. Designing questionnaires for a survey is a detailed topic which will be covered in the next chapter. personal or telephonic surveys must be utilized. A commonly used hybrid method is Telephone-Mail-Telephone (TMT) wherein respondents are instructed over the phone and then sent the survey over mail to be filled at their convenience.  Online: Surveys carried out over the internet are gaining popularity these days as they can reach a wide audience. If the strength between the dependent (revenue) and independent (marketing budget) variable is strong. They are also relatively inexpensive. the quantitative method is more objective. Typically.

The group is watched from adjacent rooms. . If there are two moderators. On the contrary. Discussion is controlled through these moderators. To help developing questionnaires in terms of survey research. 5. To understand reason behind a particular phenomenon: 4. Define the problem 2. 2. we can use both types as they give variant perspectives and complement one another. Objectives of Focus Group 1. 5. Prepare the focus group material. Focus Groups Focus groups are also known as group interviews or group discussions. Determine the number of groups necessary(minimum number should be two) 4. 6. They are used to understand the attitude or behaviour of the audience. To gather primary information for research project. Finally. etc and hard facts. To test primarily ideas or plan Steps involved in conducting Focus group 1. Prepare the study mechanics. significance.Concluding Remarks We have seen in the sections above that in which situations the usage of quantitative research is preferable over qualitative research and vice versa. 7. There are various devices which are used to record these discussions. 3. if there are less budget constraints. Select moderators and brief them. To see how people interpret certain phenomenon. Arrange the respondents place where the focus group is to be assembled. they will adopt opposite positions. Ideally. means. a quantitative research will produce a statistical report with correlations. Six to twelve individuals are selected and either one or two moderators (those who lead the discussions) are selected. Conduct the session. Select a sample 3. Sometimes both have to be used in tandem as in case of Usage and Attitude Studies that we will see in the later chapters. It is the moderator who introduces the topic. a qualitative research will generate a more narrative report with a contingent account and direct quotations from the respondents.

Self appointed group leader may impose his /her opinion on other members. 2. The success of interviews depends on the rapport of the interviewers established with the respondents. It is used to collect primary information and therefore it can conduct a pilot study also. 3. 3. t depends heavily on skills of moderator. It has flexibility. expression. Depth Interview They generally use small samples and also conduct direct one to one personal interviews. 5. 4. Location of recording equipment is very important. Advantages of Depth Interview 1. It can be conducted quickly. 6. 4. A detailed background is provided by the respondents and elaborate data concerning the respondents opinions. Recording equipments are likely to restrict respondents. feeling etc are obtained. It is inappropriate for gathering quantitative data. 5. Lot of detail is provided. Information obtained is comparatively more accurate. The questions will depend on what kind of answers are given. values. These are conducted to customize individual responses.8. Disadvantages of Focus Group 1. motivation. therefore lengthy observations are involved. Respondents in the focus group may or may not represent the population from which they are drawn. They take long time. Relative cost is not much. Moderators can restrict people. Moderator can detect the opinion and certificates of those who cannot speak well by facial expression and other non verbal behaviour. We can get the questionnaire filled up either before or after the discussion. 2. . 2. Even interview climate influences the respondents. Analyze the data and prepare summary report. Advantages of Focus Group 1. Even their non-verbal expressions are observed.

Since the success depends on the interviewer.3. Confidential and sensitive information may not be given. Thus Projective Techniques play a important role in motivational researches or in attitude surveys. Interviewer bias is th Projective Techniques inShare1 Projective Techniques are indirect and unstructured methods of investigation which have been developed by the psychologists and use projection of respondents for inferring about underline motives. . It is difficult to generalize since the interviewers are non-standardized 2. 3. It consumes lot of time. Accurate data is provided 2. 2. Case Study Individual cases are taken and a detailed study of each case is done. These techniques helps the respondents to project his own attitude and feelings unconsciously on the subject under study. Personal or intimate topic can also be discussed since the personal rapport is established between the respondent and the interviewer Disadvantages of Depth Interview 1. there are chances of bias. There is detailed analysis Disadvantages of Case Study 1. 4. urges or intentions which cannot be secure through direct questioning as the respondent either resists to reveal them or is unable to figure out himself. 3. These techniques are useful in giving respondents opportunities to express their attitudes without personal embarrassment. It is difficult to generalize. Data analysis takes a lot of time. Advantages of Case Study 1.

Completion Test. Construction Test: This is more or less like completion test. 3. They can give you a picture and you are asked to write a story about it. It is a costly method. . Expression Techniques 1. A formal list of questionnaire is prepared. For eg: Out of 50 respondents 20 people associate the word “ Fair” with “Complexion”. Expression Techniques: In this the people are asked to express the feeling or attitude of other people. The frequency with which any word is given a response and the amount of time that elapses before the response is given are important for the researcher. Word Association Test. 4. Construction Techniques 4. The respondent selected may not be representative of the entire population. 2. Generally a non disguised approach is used. Survey Method The Survey method is the technique of gathering data by asking questions to people who are thought to have desired information. A list of words is given and you don’t know in which word they are most interested. Interpreters bias can be there. The association can take the shape of a picture or a word. The respondents are asked questions on their demographic interest opinion. Completion Test: In this the respondents are asked to complete an incomplete sentence or story. 4. The completion will reflect their attitude and state of mind. 2. 3. 2. There can be many interpretations of the same thing. For eg: 2 cartoons are given and a dialogue is to written. Highly trained interviewers and skilled interpreters are needed. The initial structure is limited and not detailed like the completion test. Disadvantages of Projective Techniques 1. Word Association Test: An individual is given a clue or hint and asked to respond to the first thing that comes to mind.Important Projective Techniques 1. The interviewer records the responses which reveal the inner feeling of the respondents. 3.

How to overcome the limitations of Survey Method 1. Similarly two different wordings of the same question will frequently produce quite different is difficult. 2. 2. opinions. attitudes. experimentation) survey yield a broader range of information. The interviewer may assure that the information will be kept secret or apply the technique of offering some presents. This is especially true of responses to questions like “What price would you be willing to pay for this product?” . Surveys are effective to produce information on socio-economic characteristics. It is relatively simple to analyze. motives etc and to gather information for planning product features. Questioning is usually faster and cheaper that Observation.This requires salesmanship on the part of the interviewer. Careful control of data gathering by employing specially trained investigators who will observe carefully report on subtle reactions of persons interviewed 3. Cautious interpretations by a clear recognition of the limitations of the data and understating of what exactly the data represents. 3. 2. if not impossible. Questions are simple to administer. channels of distribution and other marketing variables. Inability of the respondents to provide information. Data is reliable 5. Lapse of memory c. 4. Lack of knowledge b. to state a given question in such a way that it will mean exactly same thing to each respondent. quote and interrelate the data obtained by survey method Disadvantages of Survey Method 1. Careful framing and phrasing of questions.This may be due to a. As compared to other methods (direct observation. advertising media. The variability of results is reduced. Human Biases of the respondents are there.Advantages of Survey Method 1. Inability to identify their motives and provide “reasons why?” for their actions 3. Unwillingness of respondents to provide information. Symantec difficulties are there . 6. for eg: “Ego” 4. sales promotion.

It is less costly method and there are less administration problems Disadvantages of Telephonic Interview 6. the results of the survey are in some doubt. They cant handle interview which need props 7. 3. Looking at facts in relative rather than absolute terms. It is very fast method of data collection. Respondents cannot be observed 10. It cant be used for those questions which requires long descriptive answers 9. Telephonic Interview 2. Telephonic Interview Telephone Interviewing stands out as the best method for gathering quickly needed information.A survey by a dentist team showed that the number of families in the middle income group used toothpaste taken by itself in the absolute sense. Responses are collected from the respondents by the researcher on telephone. Response rate of telephone interviewing seems to be a little better than mail questionnaires 4. People are reluctant to disclose personal information on telephone . Mail Interview 4. Hence we should look at the facts in relative rather than in absolute terms Techniques of Survey Method There are mainly 4 methods by which we can collect data through the Survey Method 1. It has the advantage over “Mail Questionnaire” of permitting the interviewer to talk to one or more persons and to clarifying his questions if they are not understood. Electronic Interview 1. It cant handle unstructured interview 8.4. The quality of information is better 5. Personal Interview 3. For eg . 2. Even though the individual group readings shall differ say for eg: for upper income group families it could be 90 %. Advantages of Telephonic Interview 1.

11. Knowledge of past and future is possible. The accuracy of data is influenced by the interviewer 11. Disadvantages of Personal Interview 7. Order of questions can be changed 3. they fill it up and send it back. People who don’t have telephone facility cannot be approached 2. Response rate can be improved by offering certain incentives. . 2. It can reach all types of people. The information obtained is very reliable and dependable and helps in establishing cause and effect relationship very early. Personal Interviewing It is the most versatile of the all methods. It requires much more technical and administrative planning and supervision 8. They are used when props are required along with the verbal response non-verbal responses can also be observed. Advantages of Personal Interview 1. It is time consuming 10. It is more expensive 9. Advantages of Mail Survey 1. Mail Survey Questionnaires are send to the respondents. They are more flexible. In-depth research is possible. Verification of data from other sources is possible. 4. 2. 5. 6. A number of call banks may be required 12. Some people are not approachable 3. The person interviewed can ask more questions and can supplement the interview with personal observation.

”The following are a few situations:1. . 7. 2. 4. It can not be used for unstructured study. 5. 6. It is not purely objective. occurances rather than asking for information. “Information is collected by observing process at work. It is a costly method. It requires established mailing list. Attitudes can not be observed. The data is more accurate and objective. There is problem in case of complex questions. For example-When you go to store. their response can be biased. The Universal Product Code (UPC) is also a method of observing what people are buying. There is observer bias. Disadvantages of Electronic Interview 3. go to a service station and observe. 5. 6. Those events which are of long duration can not be observed. It is costly. Electronic Interview Electronic interviewing is a process of recognizing and noting people. Advantages of Electronic Interview 1. Observation Method The observation method involves human or mechanical observation of what people actually do or what events take place during a buying or consumption situation. you notice which product people like to use. 4. objects. 7. It is time consuming.Disadvantages of Mail Survey 3. There is no relying on willingness or ability of respondent. 4. If the respondents know that they are being observed. Service Stations-Pose as a customer.

The most limiting factor in the use of observation method is the inability to observe such things such as attitudes. It saves efforts and expenses. b) How many stopped to look at the display. between events to be observed. such as watching television late at night. 4. 3. Advantages of Observation Method 1. Disadvantages of Observation Method 1. The observer has to wait doing nothing. Super Market-Which is the best location in the shelf? Hidden cameras are used. The biasing effect of interviewers is either eliminated or reduced. Secondary Data Secondary data is the data that have been already collected by and readily available from other sources. To evaluate the effectiveness of display of Dunlop Pillow Cushions-In a departmental store. It is economical. To determine typical sales arrangement and find out sales enthusiasm shown by various salesmen-Normally this is done by an investigator using a concealed tape-recorder. their buying motives and their images. It also takes time for the investigator to wait for a particular action to take place. 4. 2. observational data are more expensive to obtain than other survey data. It helps to make primary data collection more specific since with the help of secondary data. Advantages of Secondary data 1. customers/consumers state of mind. It is time saving. more objective and generally more accurate. 2. c) How many decide to buy. observer notes:. we are able to make out what are the gaps and deficiencies and what additional information needs to be collected. 2. Personal and intimate activities. Under most circumstances. 3.2. Cost is the final disadvantage of observation method. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data can not be obtained at all. 3. . it is not necessary to rely on the willingness and ability of respondents to report accurately.a) How many pass by. thus. If the researcher observes and record events. The unproductive time is an increased cost. Data collected by observation are. motivations. are more easily discussed with questionnaires than they are observed.

Units of measurement should be the same.It has to be seen that the kind of data you want is available or not. 2. Specification and methodology used. Secondary data is something that seldom fits in the framework of the marketing research factors. Relevance. Evaluation of Secondary Data Because of the above mentioned disadvantages of secondary data. Before 5 Years After 5 Years 2500-5000 5000-6000 5001-7500 6001-7000 7500-10000 7001-10000 c.4. Accuracy. the following points must be considered: a. The information may not be same as we require. Disadvantages of Secondary Data 1. b. we will lead to evaluation of secondary data. Data may be outdated. Thus the data collected earlier is of no use to you. Concepts used must be same and currency of data should not be outdated. For this we have two criterion:a. It helps to improve the understanding of the problem. . Reasons for its non-fitting are:a. b. but the data is available on gross income. It provides a basis for comparison for the data that is collected by the researcher.In order to find how accurate the data is. Accuracy of secondary data is not known. 3. 2. Evaluation means the following four requirements must be satisfied:1. Class Boundaries may be different when units are same. Availability. 5. If it is not available then you have to go for primary data.It should be meeting the requirements of the problem. Unit of secondary data collection-Suppose you want information on disposable income. 3.

However. Market researchers have used 4 experimental designs most frequently.Latin Square Design . Margin of error should be examined. Applicability of research objective. 2. 4. In this design several treatments of variables are applied to different blocks of land to ascertain their effect on the yield of the crop.4 X 4 arrangement. c.Randomized Block Design . it may be noted that.Completely Randomized Design 2. CRD . Robert W Joselyn has classified the above discussion into eight steps. LSD . The production of each plot is measured after the treatment is given. These eight steps are sub classified into three categories. 3.The term Randomized Block Design has originated from agricultural research.Adequate data should be available. These data are then interpreted and inferences are drawn by using the analysis of Variance Technique so as to know the effect of various treatments like different dozes of fertilizers. In this scheme each letter from A to D occurs only once in each row and also only once in each column. RBD . Accuracy of data. Sufficiency. 1. Survey Method 3. He has given a detailed procedure for evaluating secondary data. Sources of Data Sources of Primary Data The sources of generating primary data are 1. These are 1. Experimental Method Experimental Method There are number of experimental designs that are used in carrying out and experiment. The balance arrangement. The dependability of the source must be seen. Observation Method 2. Cost of acquisition. will not get disturbed if any row gets changed with the other.A Latin square is one of the experimental designs which has a balanced two way classification scheme say for example . 3.b. . different types of irrigation etc. Blocks are formed in such a manner that each block contains as many plots as a number of treatments so that one plot from each is selected at random for each treatment.

These are what information you are getting from operational reports.Factorial Designs . In a true experiment. internal secondary data may be obtained with less time. randomization is essential so that the experimenter can infer cause and effect without any bias. depth interview. case studies.These are outside the organization Internal Sources of Data If available. It also measures interaction effects of the variables and analyzes the impacts of each of the variables.These are people who are heading the various departments. 5. .This design allows the experimenter to test two or more variables simultaneously. Thus the magnitude of error will be smaller than any other design. The secondary data can be obtained through 1. focus group interviews. The balance arrangement achieved in a Latin Square is its main strength. effort and money than the external secondary data.A B C D B C D A C D A B D A B C 4. will be free from both differences between rows and columns. In this design. Sources of Secondary Data While primary data can be collected through questionnaires. They can give an idea of how a particular thing is working 4. the comparisons among treatments. They give information about internal factors. FD . experimentation and observation.It gives information about the sale of a product. 2. The information provided is of outside the organization. Accounting resources. 3. they may also be more pertinent to the situation at hand since they are from within the organization. Sales Force Report.These are within the organization 2. In addition. The internal sources include 1. External Sources . Internal Experts. Internal Sources .This gives so much information which can be used by the marketing researcher. Miscellaneous Reports.

There are number of government agencies generating data. It includes details of gender. These indices may be related to a number of sectors like food. expenditure. National Sample Survey.If the data available within the organization are unsuitable or inadequate. Government Publications. and rate of major economic activities.It provides information on skilled. economic. urban. Labour Bureau. investment.This is done by the Ministry of Planning and it provides social. v. Department of Economic Affairs.Government sources provide an extremely rich pool of data for the researchers. white collared jobs etc. viii. It contains estimates of national income for several years.This office operates from Kolkata. vii. ii. Ministry of Commerce and Industries. These figures are provided region-wise and country-wise. food grains etc. unskilled.It is an office which generate demographic data. RBI also prepares currency and finance reports. Planning Commission. It gives information about foreign trade i. Director General of Commercial Intelligence. production units. the marketer should extend the search to external secondary data sources. These are: i. .This organization publishes the national accounts statistics. Collection of external data is more difficult because the data have much greater variety and the sources are much more numerous. Annual survey of Industries is also published by the CSO.It provides the basic statistics of Indian Economy. power. many of these data are available free of cost on internet websites. industrial and agricultural statistics. External Sources of Data External Sources are sources which are outside the company in a larger environment. savings and foreign trade. Reserve Bank of India. demographic. iv. iii. consumption. It gives information about the total number of workers employed.This provides information on Banking Savings and investment. Registrar General of India. External data can be divided into following classes. material used and value added by the manufacturer.This ministry through the office of economic advisor provides information on wholesale price index. fuel. vi. non manual employees and cultural labourers. a. In addition. import and export.It conducts economic survey and it also generates information on income. Central Statistical Organization. It also generates All India Consumer Price Index numbers for industrial workers.e. age. occupation etc. ix. growth rate.

These services are provided by certain organizations which collect and tabulate the marketing information on a regular basis for a number of clients who are the subscribers to these services. key profitability and other relevant matter) iv. b. such as i.They conduct surveys regarding . education. State Statistical Abstract. The Bombay Stock Exchange (it publishes a directory containing financial accounts.Purchase and Media. Syndicate Services. Electronic Scanner Services.It may be related to 2 fields . iii. occupation etc.commercial activities. These syndicate services provide information data from both household as well as institution. So the services are designed in such a way that the information suits the subscriber. vi. Export Promotion Council. They are likely to colour their negative points. Non Government Publications. Survey. Confederation of Indian Industries ( CII ) vii.x. Textile mills etc The only disadvantage of the above sources is that the data may be biased.This gives information on various types of activities related to the state like . sociographic. These services are useful in television viewing. c. general topics. Mail Diary Panel. They collect data for Institutions from iv. Whole sellers v.These includes publications of various industrial and trade associations. In collecting data from household they use three approaches i. Industrial Firms . ii. v. movement of consumer goods Various Associations of Press Media. Different Mills like . Various chambers of commerce iii.Woolen mills.These are used to generate data on volume. and vi. The Indian Cotton Mill Association ii. Retailers. Small Industries Development Board of India viii.

. which would be the marketers dream come true. iii.It publishes data on foreign trade. The Organization for Economic Co-operation and development (OECD). Until now. Big Data is all about how marketers collect everything possible about consumer behavior and predict not only consumer behavior but predict what they are doing and how they would behave in future. food. Also Syndicate services are able to provide information to the industries at a low unit cost. Disadvantages of Syndicate Services The information provided is not exclusive. wages and consumer prices ii. Target. A number of research agencies provide customized services which suits the requirement of each individual organization. in recent years. However. employment.Big Data provides marketers with the ability to identify the state of the consumers as can be seen in the recent prediction by the retailer giant. they are now turning to Big Data or data about virtually all aspects of consumers that would help them in predictive analytics or the art and science of accurately mapping consumer behavior. Importance of Syndicate Services Syndicate services are becoming popular since the constraints of decision making are changing and we need more of specific decision-making in the light of changing environment. unemployment. International Organization. marketers are going onestep ahead and instead of extrapolating data to predict consumer behavior. marketers had enough data about consumers that they then modeled to arrive at probable consumer behavior decisions.It publishes reports on national and international foreign exchange regulations. about a woman being pregnant based on her consumer buying data. transport. The International Monetary Fund (IMA). and science and technology.Various syndicate services are Operations Research Group (ORG) and The Indian Marketing Research Bureau (IMRB). d. For instance. This data culled from marketing research was adequate until now when the extrapolation of the trends could translate into predictions of consumer behavior.These includes i. What is Big Data and its Importance to Businesses as a Game Changer What is Big Data ? If marketers had all the data about consumers that they can then use to predict consumer behavior. industry. The International Labour Organization (ILO). In other words.It publishes data on the total and active population.

The point here is that Big Data places enormous responsibilities on marketers and hence. The term Big Data has been coined because it gives marketers the bigger picture and at the same time lets. Attitude Scales . Concluding Remarks Finally. the potential uses of it for predicting the outbreaks of diseases and controlling crime are indeed boons to the regulators and the law enforcement agencies and therefore.Rating Scales to measure data . and predicts the next move of the consumer based on his or her current state. The collection of Big Data is done not only from the consumer buying behavior but also from mining all the available data in the public and private domains to arrive at a comprehensive picture of what the consumers think and how they act. they model consumer behavior at the micro level. identifies. The example of Target predicting whether the woman was pregnant or not based on her shopping habits was received with both enthusiasm as well as alarm. they have to be very careful about the data that they hold and the prediction models and simulation that they run. The enthusiasm was from the marketers whereas the alarm was from the activists and experts who deal with privacy and security of data. instead. If they chose to predict whether someone is going to do something next based on the results from the model. the data can be compromised or used to target innocent consumers. which can then be used to accurately predict consumer behavior. This is the reason why many experts are guarded as far as Big Data is concerned and they are waiting for the marketers and the regulators to frame rules and policies on how Big Data can be used in practice. the promise of Big Data also comes with its perils as the tendency to be the master of consumer behavior can lead to serious issues with privacy and security of the data available with the marketers.Big Data can be a Game Changer for Marketers This is the promise of Big Data that goes beyond merely extrapolating trends. The integration of the macro data and the micro trends gives marketers’ unparalleled access to data. The promise of Big Data is boundless for marketers who can now think ahead of the consumers instead of the other way around as well as preempt possible consumer behavior by targeting products aimed at the future actions of the consumers. This would be like getting inside the minds of the consumers and instead of merely knowing what they would probably purchase. it must be mentioned that whichever stance one might have about Big Data. Big Data can be misused as well Of course. it would be better for all stakeholders to decide on the kind of purposes for which Big Data can be used. marketers would know with accuracy about what consumers are likely to do in the future. this prediction can also be used for unwelcome purposes and as can be seen in the recent revelations about tracking and surveillance.

Thurston Scales f. Depending upon the attitude to be measured. These scales are just numerical and are the least restrictive of all the scales. Semantic Differential Scale c. dislikes.Scaling Techniques for Measuring Data Gathered from Respondents The term scaling is applied to the attempts to measure the attitude objectively. Attitude is a resultant of number of external and internal factors. Stapel’s Scale d. interests and preferences. Graphic Rating Scale 2. Ordinal Scale 3. Multi Dimensional Scaling e. appropriate scales are designed. The Q Sort technique Four types of scales are generally used for Marketing Research. Ratio Scale Self Rating Scales 1. It is simple and . Nominal Scale 2. It consists of assignment of facts/choices to various alternative categories which are usually exhaustive as well mutually exclusive. likes. Interval Scale 4. 1. bank account numbers. employee id numbers etc. Itemized Rating Scales a. Instances of Nominal Scale are credit card numbers. Types of Scales Most frequently used Scales 1. perception. Scaling is a technique used for measuring qualitative responses of respondents such as those related to their feelings. Likert Scale b. Nominal Scale This is a very simple scale. Guttman Scales/Scalogram Analysis g.

way of maintaining stocks and daily turnover. In a Nominal Scale numbers are no more than labels and are used specifically to identify different categories of responses. It is more powerful than a nominal scale in that the numbers possess the property of rank order. Ordinal Scale Ordinal scales are the simplest attitude measuring scale used in Marketing Research.widely used when relationship between two variables is to be studied. 2. Following example illustrates What is your gender? [ ] Male [ ] Female Another example is . . How do you stock items at present? [ ] By product category [ ] At a centralized store [ ] Department wise [ ] Single warehouse Daily turnover of consumer is? [ ] Between 100 – 200 [ ] Between 200 – 300 [ ] Above 300 A two way classification can be made as follows Dai ly/S toc k Tur nov er Me tho d Pr od uc t Ca teg or y Dep art me nt wis e Ce ntr aliz ed Sto re Sin gle Wa reh ous e 100 – 200 200 – 300 Ab ove 300 Mode is frequently used for response category.a survey of retail stores done on two dimensions .

Company Name 2. Example 1: Rank the following attributes (1 . Grade B. “Freshness” into Rank 1 having maximum Freshness Rank 2 the second maximum Freshness. Comfort 5. An Interval Scale has an arbitrary Zero point with further numbers placed at equal intervals. Interval Scale Herein the distance between the various categories unlike in Nominal. The Interval Scales are also termed as Rating Scales.How do you rate your present refrigerator for the following qualities. and so on. Such scale makes no attempt to measure the degree of favourability of different rankings. letters or symbols too can be used to rate in a ordinal scale. Illustration 1 .If there are 5 different brands of Talcom Powder and if a respondent ranks them based on say. A very good example of Interval Scale is a Thermometer.If there are 4 different types of fertilizers and if they are ordered on the basis of quality as Grade A. Example 3 . Design The most important attribute is ranked 1 by the respondents and the least important is ranked 5. Median and mode are meaningful for ordinal scale. Grade D is again an Ordinal Scale. Grade C. or numbers unlike in Ordinal. an Ordinal Scale results. Example 2 . on their importance in a microwave oven.The ranking of certain product attributes/benefits as deemed important by the respondents is obtained through the scale. Price 4. are equal in case of Interval Scales. Functions 3. Instead of numbers. 1. 3.5). Company Name Less Known 1 2 3 4 5 Well Known Functions Few 1 2 3 4 5 Many Price Low 1 2 3 4 5 High Design Poor 1 2 3 4 5 Good Overall Very Dis-Satisfied 1 2 3 4 5 Very Satisfied .

Graphic Rating Scale The respondents rate the objects by placing a mark at the appropriate position on a line that runs from one extreme of the criterion variable to another. The ratio scales are very common in physical scenarios. Self Rating Scales 1. namely zero. Quantified responses forming a ratio scale analytically are the most versatile.000. A Ratio scale has a natural zero point and further numbers are placed at equally appearing intervals.Satisfaction Such a scale permits the researcher to say that position 5 on the scale is above position 4 and also the distance from 5 to 4 is same as distance from 4 to 3.000 earns twice as much as one with an annual income of $ 20. unambiguous starting point. and the ratios of the numbers on these scales have meaningful interpretations. Example . computing and interpreting ratio makes sense. a score of 4 in one quality does not necessarily mean that the respondent is twice more satisfied than the respondent who marks 2 on the scale. etc. Consider the following questions : Q 1) What is your annual income before Q 2) How far is the Theater from your home ? ______ miles taxes? ______ $ Answers to these questions have a natural. The Standard Deviation (a measure of dispersion) can also be calculated. weight. Such a scale however does not permit conclusion that position 4 is twice as strong as position 2 because no zero position has been established. will have ratio-scale properties. Ratio Scale Ratio Scales are not widely used in Marketing Research unless a base item is made available for comparison. In the above example of Interval scale. if they are obtained through openended questions. The data obtained from the Interval Scale can be used to calculate the Mean scores of each attributes over all respondents. For example we can say that a respondent with an annual income of $ 40. For example scales for measuring physical quantities like length. Data on certain demographic or descriptive attributes. 4. Since starting point is not chosen arbitrarily. Rati scale possess all he characteristics of an internal scale.

Thurston and Guttman. Each scale item has 5 response categories ranging from strongly agree and strongly disagree. They have a number of brief descriptions associated with each category. we measure the physical distance between the left extreme position and the response position on the line. since we first have to measure the physical distances on the scale for each respondent. Itemized Rating Scales These scales are different from continuous rating scales. the greater the distance. They essentially take the form of the multiple category questions. poor good BRAND 2 This line can be vertical or horizontal and scale points may be provided. a. the more favourable is the response or attitude towards the brand. 2. A range is provided.. Here the respondents are asked to indicate a degree of agreement and disagreement with each of a series of statement. 5 Strongly agree 4 3 Agree Indifferent 2 Disagree 1 Strongly disagree . Sementic. Its limitation is that coding and analysis will require substantial amount of time.0 (poor quality) 1 (bad quality) 5 (neither nor bad) 7 good(good quality) BRAND 1 This is also known as continuous rating scale. Here one attribute is taken ex-quality of any brand of icecream. The customer can occupy any position. To quantify the responses to question that “indicate your overall opinion about ice-ream Brand 2 by placing a tick mark at appropriate position on the line”. Likert Scale It was developed Rensis Likert. Staple and Multiple Dimension. They are widely used in Marketing Research. No other indication is there on the continuous scale. Others are . The most common are Likert.

They take about the same amount of efforts to create as Thurston scale and are considered more discriminating and reliable because of the larger range of responses typically given in Likert scale. It can also be scaled as -2 to +2. 1 Unpleasant 2 Submissiv e 3 4 5 6 7 Pleasant Dominant Suppose we want to know personality of a particular person. Unpleasant/Submissive 2. Likert Scale are of ordinal type. Semantic Differential Scale This is a seven point scale and the end points of the scale are associated with bipolar labels. Pleasant/Dominant Bi-polar means two opposite streams. No judging gap is involved in this method. On the basis of these responses profiles are made. While designing a good Likert Scale. Individual can score between 1 to 7 or -3 to 3. they enable one to rank attitudes. We can analyse for two or three . Each degree of agreement is given a numerical score and the respondents total score is computed by summing these scores. but not to measure the difference between attitudes. b.Each statement is assigned a numerical score ranging from 1 to 5. the statements which are vague and non-discriminating have to be eliminated. first a large pool of statements relevant to the measurement of attitude has to be generated and then from the pool statements. -2 -1 0 1 2 For example quality of Mother Diary ice-cream is poor then Not Good is a negative statement and Strongly Agree with this means the quality is not good. Thus. We have options1. A typical Likert scale has 20 . This total score of respondent reveals the particular opinion of a person. likert scale is a five point scale ranging from ’strongly agreement’to ’strongly disagreement’.30 statements.

Select a minus number for words you think do not describe the ice cream quality accurately. When Semantic Differential Scale is used to develop an image profile. we ask respondents to rank from +5 to -5. +5 +4 +3 +2 +1 High -1 -2 Quality . Each item has only one word/phrase indicating the dimension it represents. while producing results compared with those of the more complex scaling methods. c. Each item has an even number of categories. to -5. The big advantage of this scale is its simplicity. This scale has some distinctive features:1. Stapel’s Scale It was developed by Jan Stapel.for words we think are very inaccurate. it provides a good basis for comparing images of two or more items. Each item has ten response categories. in the following items. suppose for quality of ice cream. Profile Analysis ---------------/------------------------/---------------------------/---------------------Mean and median are used for comparison. highly versatile. Thus. This scale helps to determine overall similarities and differences among objects. we can select any number from +5. For example. but it is also sensitive to small differences in attitude. The method is easy and fast to administer. 2. The response categories have numerical labels but no verbal labels. This scale is usually presented vertically. It could take any shape depending on the number of variables. 3. 4. reliable and generally valid.for words we think are very accurate.products and by joining these profiles we get profile analysis. Select a plus number for words which best describe the ice cream accurately.

to get knowledge. the next step is to determine the preference with regards to the product under study. What sales and advertising messages are compatible with consumers brand perceptions. very similar. These techniques attempt to identify the product attributes that are important to consumers and to measure their relative importance. Therefore. To find out whether the consumers would like a new brand with a combination of characteristics not found in the market. The responses may be -to do PG. The major attributes of a given class of products perceivedby the consumers in considering the product and by which they compare the different ranks. b. Then a lack of fit index is calculated by computer program. they base their decision on various attributes. 4. For example. you can not base decision on one attribute only. when the consumers are choosing between brands. After the configuration for the consumer’s preference has been developed. To study which brand competes most directly with each other. not similar. There are a number of attributes. 2. 3. In practice. The purpose is to find a reasonably small number of dimensions which will eliminate most of the stress. This is a shortcoming of this scale. This scaling involves a unrealistic assumption that a consumer who compares different brands would perceive the differences on the basis of only one attribute.Com course.-3 -4 -5 This is a unipolar rating scale. what are the attributes for joining M. It is a computer based technique. The respondents are asked to place the various brands into different groups like similar. . and so on. the perceptions of the consumers involve different attributes and any one consumer perceives each brand as a composite of a number of different attributes. It is used to study1. 5. What would be the consumers ideal combination of product attributes. to go into teaching line. appearing in the NET. A goodness of fit is traded off on a large number of attributes. Multi Dimensional Scaling It consists of a group of analytical techniques which are used to study consumer attitudes related to perceptions and preferences.

The Q Sort technique It is used to discriminate among large number of objects quickly. d. The statements are worded in such a way so that a person can agree or disagree with them. This scale takes a lot of time and effort in development. The items are then ranked according to the mean or median ratings assigned by the judges and are used to construct questionnaire of twenty to thirty items that are chosen more or less evenly across the range of ratings. The judges rate these statements along an 11 category scale in which each category expresses a different degree of favourableness towards the concept. They are used to measure the attitude towards a given concept or construct. They are commonly used in psychology and education research. But it is the time consuming method and labour intensive. The limitation of this scale is that it is difficult to clearly define the concept of similarities and preferences.dimensional scaling. go for multi. They all are related to one aspect. research and psychology. For this purpose a large number of statements are collected that relate to the concept or construct being measured. product life cycle. In this scale each score represents a unique set of responses and therefore the total score of every individual is obtained. Guttman Scales/Scalogram Analysis It is based on the idea that items can be arranged along a continuem in such a way that a person who agrees with an item or finds an item acceptable will also agree with or find acceptable all other items expressing a less extreme position. For example . There are many possible uses of such scaling like in market segmentation. the advantage of this scale is that it is an interval measurement scale. It uses a rank order procedure and the objects are sorted into piles based on similarity with respect to . So. Further the distances between the items are seen as different b. The scale is then administered to assemble of respondents whose scores are determined by computing the mean or median value of the items agreed with. anthropology. public opinion. A person who disagrees with all the items has a score of zero. vendor evaluations and advertising media selection. c. Thurston Scales These are also known as equal appearing interval scales.Children should not be allowed to watch indecent programmes or government should ban these programmes or they are not allowed to air on the television.Whenever we choose from a number of alternatives. They are very commonly used in political science.

medium. Simple English should be used and the question shouldn’t be difficult to answer.interviewing method can be telephone. 4. A good questionnaire requires sensible language. State the kind of interviewing technique. For example. Does the question contribute for the objective of the study? b. We can classify on the basis of price also-Low. Telephonic interview can be computer assisted. So the number of objects is to be placed in three piles-low. Overcome the respondents’ inability and unwillingness to answer.The respondents may be unable to answer the questions because of following reasons- . high. On the basis of taste we classify the brands into tasty. editing.Guidelines on how to design a good questionnaire A good questionnaire should not be too lengthy. We can classify sixty brands or pile it into three piles. Decide the matter/content of individual questions. Personal interview can be conducted at respondent’s place or at mall or shopping place. Then we can attain the perception of people that whether they prefer low priced brand. Is there a need for several questions or a single question? . Mail interview can take the form of mail panel.some criteria. State the information required.Observe contribution of each question. moderate and non tasty. assessment. Questionnaire Design Process 1.Several questions are asked in the following cases:  When there is a need for cross-checking  When the answers are ambiguous  When people are hesitant to give correct information. personal interview or electronic interview. The target audience must be concentrated on. the purpose of the study and hypothesis framed. the Q-sort technique is an attempt to classify subjects in terms of their similarity to attribute under study. 2. Questionnaire Design . and redrafting. The number of objects to be sorted should be between 60-140 approximately. high or moderate.There are two deciding factors for thisa. Is the question significant? . here we are taking nine brands. mails. Electronic interview takes place either through electronic mails or through the internet. medium or high. 3. Thus.This will depend upon the nature of the problem.

These specify the set of response alternatives and the response format. The respondent may not be fully informed b.Is it right?? Different people will have different opinions depending upon the situation) d. why the question is being asked.Questions can be of two types: a. He may be unable to express or articulate The respondent may be unwilling to answer due tod.Mark needed a job badly and he used wrong means to get it . Decide on the structure of the question. Preface the question with a statement c. Structured questions.) To overcome the respondent’s unwillingness to answer: a. Ordinary and unambiguous words should be used. etc. the words of the question should be carefully chosen. Place the sensitive topics at the end of the questionnaire b. generalizations and implicit alternatives. dichotomous questions (having only 2 response categories such as “Yes” or “No”) and scales (discussed already). Avoid implicit assumptions. Thus. Determine the question language/phrasing. Use the third person technique (For example . These can be classified into multiple choice questions (having various response categories). e. .These are also known as open-ended question.a. There may be sensitive information which may cause embarrassment or harm the respondent’s image. Avoid biased questions. The respondent may not be familiar with the genuine purpose f. what information is required. 50000 and above) ii. then either the respondents will refuse to answer the question or they may give incorrect answers. b. when is the information required. b.If the questions are poorly worded. The respondent will not be willing to reveal traits like aggressiveness (For instance if he is asked “Do you hit your wife. 25000-50000. etc. No alternatives are suggested and the respondents are free to answer these questions in any way they like. The question may appear to be irrelevant to the respondent g. Unstructured questions. Categorize the responses rather than asking a specific response figure (For example Group for income levels 0-25000. Define the issue in terms of who the questionnaire is being addressed to. sister”. The respondent may not remember c.

c.Paper quality should be good. e. take decisions on aspects like opening questions (simple. embarrassing. The font type and size should be appropriate. No  Pre-test the questionnaire. the cost after sales service. Questionnaire should appear to be professional. and identification information relates to personal information such as name. Nausea and Suicidal Tendency can be collectively described by a single term: Depression. and not clattered. etc. The questions should be numbered and pre-coded. Reproduce the questionnaire. dull and sensitive questions could be difficult). Statistical Tools and their Usage .Factor Analysis Factor Analysis is a data reduction technique.Check the final draft questionnaire. Each and every dimension of the questionnaire should be pre-tested. d. Make sure that irrelevant questions are not asked.To determine the order of the question. The layout should be such that it appears to be neat and orderly. Obtain feedback of the respondents on the questionnaire.This is very essential for self-administered questionnaire. interesting questions should be used as opening questions to gain co-operation and confidence of respondents).  Finalize the questionnaire. Given a large number of attributes. Properly arrange the questions. The sample respondents should be similar to the target respondents of the survey. Here three variables/attributes have been represented by a single factor. classification information relates to social and demographic characteristics.The questionnaire should be pre-tested on a small number of respondents to identify the likely problems and to eliminate them. contact number of respondents). Yes b. effect on subsequent questions. For example. . price of a product. Ask yourself how much will the information obtained from each question contribute to the study. logical sequence. and maintenance expense can be identified as a part of single dimension: Total Cost Diagrammatic Representation Attributes such as Insomnia. factor analysis identifies a few underlying dimensions by grouping the attributes based on the correlation between the attributes. difficult questions (complex. type of information (Basic information relates to the research issue. address. for example: Do you use brand X of shampoo ? a. Vertical response questions should be used. Recognize the form and layout of the questionnaire. The required space for the answers to the question should be sufficient.

clustering. The procedure for utilizing factor analysis in a typical marketing research study is as follows:  Enlist all the attributes consumers might consider while buying a product or category. Following are some of the applications of this method:  Recognition of underlying factors: Bundles homogenous variables into new sets (i.e. physical sciences. we will focus on the topic relevant in this module: marketing research.  Further utilize these factors for building perceptual maps. Factoring in Marketing Research While factor analysis is used in several fields such as psychometrics. factors)  Screening variables: Factor analysis associates one variable as a representation of several other similar variables which is further useful for regression analysis.  Collect responses from consumers through quantitative data collection techniques such as surveys on the basis of these attributes. SPSS is the most commonly deployed software for factor analysis. etc. .Implementations of Factor Analysis Factor analysis is usually more meaningful when it is followed by subsequent procedures such as clustering. regression. etc as per the purpose of the study. product positioning. psychology.  Cluster analysis: Helps couple objects into categories contingent on their factor scores.  Feed in the collected data in a statistical program to come up with fewer factors that are a representation of all the important attributes enlisted above.

this did not always correspond to their actual purchase decisions. Usage and its Limitations Introduction During the sixties. Can we identify the underlying dimensions of service? Factor Analysis Assumptions For this method to be valid. Since they are basically the same data sets.  The data sets must possess no perfect multicollinearity  Each variable must be unique. rate: . For example. certain assumptions must hold true:  No outliers in the data set: This means that no extreme data should be present in the data set. 23. However. What are basic dimensions underlying these 20 attributes?  Customers rate the importance of different attributes for a service. This is intuitive because 3 variables cannot produce 4 factors. The latter is an outlier that overwhelms the remaining data. and 1246783. they used a simple questionnaire or a form. For example. Conjoint Analysis . each variable must have more data values than the number of factors. when researchers tried to understand consumers’ decision making process. they cannot be used for forming factors. 8. consider a questionnaire designed to understand consumers’ perceptions of the most desirable smart phone features. consider the following values: 1. On a scale of 1 – 10 where 1 is least important and 10 is most important.Meaning. Also. Var2 and Var3 can be reduced to Var1 by dividing them by numbers 2 and 3 respectively. Respondents would generally answer what was on the top of their minds or what they assumed the researcher wanted to hear. 5.-4.  Adequate sample size: This simply implies that there must be more variables that factors.Industry examples requiring usage of this tool  Consumers rate a product on 20 different attributes.

Such a discovery is not actionable and hence not usable. etc in the above case. Thus we see that consumers are put in a situation where they are forced to evaluate the merit of the phone attributes such as configuration. Creating virtual products by fusing several degrees of these attributes. after conjoint analysis. OS. For example a large number of people planning to buy a new smart phone might think that however much they want an iPhone 6. brand. Recognizing the product attributes: configuration. 5. Instead. Thus. This method wherein various characteristics are considered jointly to make a purchase is known as conjoint analysis. 6. For example. It enables market researches to anticipate purchases with more certainty. they will have to be content with a less expensive phone. Analyzing the data statistically. Users cannot have more of all features that are attractive and less of all features that are not desirable. 3. the company determines that brand and hardware configuration of the phone is most important to its . Breakdown of the product or service Conjoint analysis is also popularly called trade off analysis as buyers have to let go of certain product features that they consider lucrative to make a more practical purchase. etc. broadly conjoint analysis checks the compromises users make while selecting products or services. Selecting the importance degree of these attributes. price. 2. Operational Development The process of conjoint analysis is described in a simplified manner in the following steps: 1. The hardware configuration of the device  Operation System and its version  Price of the phone  Brand The survey data would usually reveal that all features are extremely important and the user would want all the features at the lowest cost. they must compromise of few characteristics to get more of the others. price. Collecting responses through a survey. By research the company can selected the most desirable attributes to be marketed. Market simulation of the product. brand. Conjoint Analysis Usage  Conjoint studies aid in advertising. 4.

Limitation and Conclusion For certain kind of products. Certain clusters of users give preference to one set of attributes. What is Mystery Shopping ? Mystery Shopping is a fascinating method of gauging customer experience where individuals are recruited to portray actual customers that shop at a store. it is feasible to foresee the success or failure of a product. In cases like these. consumers do their evaluation built on intangible attributes or image. this method is used for accessing services only and is not applicable to products. Onset and Evolution of Mystery Shopping In the period as early as the 1940s. Prior to releasing the product full-fledged. such checks are not needed.  The most common usage is new product development.  The method is also good for test marketing as it provides information of the degrees of importance of each attribute. With an exception to this situation. the logic of conjoint analysis does not apply. foresee their purchase decisions and hence design and launch products accordingly.users. It would then design advertisements that well promote these attributes and that do not focus on price which is a secondary concern in this case. conjoint is quite inexpensive as compared to other similar methods such as concept testing and hence is hugely popular. it is a versatile and powerful tool to predict consumer choices. . In a nutshell. Conjoint analysis identifies opportunities by fusing attributes to generate new products and services that are not yet in the market. whereas a different set would be more important to few others. Also. Mystery shopping has now adapted itself and grown into a customer service oriented programme. These products mostly comprise of luxury items where the emotional factor rather than the rational side dominates. Conjoint uncovers this pattern so that the company can target users accordingly. People were hired to go into stores and steal things! This was to check whether the staff is equipped to handle such situations. Feedback is then taken through these ‘mystery shoppers’ and the company uses it to evaluate how close is the actual experience of the customers to the desired one.  Conjoint analysis is also applicable in situations where segmentation needs to be done. It is a form of primary market research that uses quantitative techniques as the mystery shopper usually has to fill out a form rating his experience. It prompts the company to think about the areas it is lacking it and act upon them. But now with advanced technology security cameras. mystery shopping was used for integrity and security evaluations.

after sometime the management and staff got familiar with the mystery shopper hired for a particular outlet since he or she would visit it frequently so the evaluation was not exactly unbiased. apartment buildings. The specific aspects to be measured will be as per the client’s choice. Mystery shopping is used for inspecting the waiters wherein the shopper poses as a customer to verify whether a waiter is doing what he is supposed to do as per his training. This is not full time employment. For example. resorts. etc to check their expertise and hence their worthiness. However. the technique is used for evaluating a company or one of its outlets internally.Currently mystery shopping is used for a wide variety of situations. it is also done for numerous other services such as banks. cell phone providers. but is not limited to the following situations:  Compliance Issues: A mystery shopper is hired to pose as an underage teenager trying to buy alcohol and check whether he or she is caught and stopped at the retail counter. deals and overall feeling of the store. Earlier organizations would hire their own mystery shoppers. mystery shopping companies. This method is used for practically all types of sales people such as real estate brokers. Though there are no specific pre requisites for becoming a mystery shopper. For example. What does Mystery Shopping measure and what outcome is expected ? Broadly. Hence mystery shopping companies came into being that hire several shoppers who are randomly given assignments with different clients. Frequently. movie theatres. mystery shopping for a coffee shop could take typically 30-45 minutes while it could take up to 2-3 days to conduct this exercise in a hotel and hence the compensation in the latter case is much more. people who are observant and detail oriented are preferred. health care providers. car dealers. business development managers. A step further in this evolution was the emergence of the middlemen. Shopper is paid as per the complexity of each assignment. mystery shoppers are hired to size up the competition’s merchandise.  Competition: Since a store’s manager himself cannot check out his competitor. Though mystery shopping is more popular for restaurants and retail outlets. etc. Mystery Shopping is applicable. one of Mc Donald’s franchisee would wish to check:  Whether the restaurant opens at the right time . shoppers are independent contractors that are looking to earn some extra money. The compliance check can be extended to several other situations too such as at movie theatres to check whether a youngster buying tickets for an adult movie is 18 years of age or above. a reference check is done to check the integrity of such a shopper before hiring.  Sales Techniques: Waiters at restaurants are usually trained for suggestive selling techniques and for trying to up sell a dish.

. It is not to give any one a free pass either. However. Are customers being served satisfactorily during peak times too  Cleanliness of the toilets and general hygiene  Availability of all items specified on the menu at all times  Courteousness of the waiters The purpose of mystery shopping is NOT to get someone fired by catching them doing something wrong. to simply tell them what happened as it happened. Case Based Explanation Since it is inevitable to use numbers and perform some calculations to bring out the concept of regression. we will be explaining simple linear regression only. the mystery shopping exercise is also done through:  Telephone  Website and social media  Hidden audio / video recording Conclusion Mystery shopping is definitely an effective tool to gain insight into the customer needs and improve in areas where a company is lacking. Methods for conducting Mystery Shopping While in person / on store check is the most widely used method. Regression analysis is widely used in marketing research for trend analysis and for making predictions. we will be demonstrating a case throughout the article to explain the statistical part in an easy way. This is done by identifying a curve or line that best fits the variables provided. The sole aim of the exercise is to tell the company what they are doing right or wrong and how they can improve. Statistical Tools and their Usage . a challenge with this technique is maintaining mystery shopper quality and integrity. In this article. It also helps in checking the employees’ morality and effectiveness.Regression Analysis Regression analysis can be used to find out the relation between a set of variables statistically.

Software packages such as excel and MATLAB. For example. Since education these days is expensive. the higher the wage. The general pattern in the data set can be determined. A random sample of 10 people will generate 10 data points. observe β1.e. i. relationship between wages and education can be obtained by the points on the scatter graph. A scatter graph in excel is the best way to represent this. suppose that one person. i. has 20 years of education and paid $30 per hour. Education is the independent variable depicted on the X axis and wage is the dependent variable. to be plotted on the Y axis. This is clarified by the graph below: . In regression analysis.Suppose that after a few years of working in the industry. The next person. a person decides to go back to the university to get additional skills. then there is a positive relation between wages and education. we need to see how much wage is expected to increase with every additional year spent at the university. the slope of the regression line. where the line cuts the y axis. We have simply changed the notation: β0 is the intercept and β1 is the slope of the gradient of the line. where m is the slope and b is the intercept. We have to find this line of best fit that will represent the general pattern in the sample. referred to as P1. For the sake of simplicity and explanation. the person would want to know whether education really increases the salary. To start. can estimate the regression line. The more education a person attains. let’s say that we survey 10 individuals (In reality a much larger sample size is required to get reliable results).e. If β1 is positive. P2. has 13 years of education and is earning $20 per hour. Equation of a line is Υ = mX + b. the line will be represented as Υ = β0+ β1X. The intuitive way to go about it is to survey a sample of individuals and ask each of them how much they earn and how many years they have spent at school and then determine whether we can observe a pattern in their responses. So the equation now becomes: Wages = β0 + β1Education Situation 1 To determine whether there is a relation between wages and education.

. The regression line is downward sloping from left to right. the line of best fit is a horizontal line. Situation 3 A third scenario is when there is no relation between wages and education. the less they earn in wages.Situation 2 If the data from the survey looks like the graph below. The trend here is that the more educated an individual. In that case. a negative relation exists. the line would cut through the data as follows.

. his expected wage would be: Wages = 5 + 1×22 = 27.Wages = 5 + 1Education Suppose an individual has just finished high school and has 12 years of education. we get the hourly wage as: Wages = 5 + 1×12 = 17 The next individual with 22 years of education. Substituting the value in the above equation. $27per hour.e. i.

the residual is 22-17 = 5($). They were not accounted for and are contained in the residual term depicted by µ. Residuals Referring to the equation of person P1 above with 12 years of education. height. However. The regression model is the best guess at the hourly wage given the level of education. for every additional 1 year of education. he or she is expected to get at least $5 per hour. β0 = 0. Thus residual is the difference between the actual wage and predicted wage. wages is expected to increase by $1 per hour.Thus we see that. This is the minimum wage since if a person has no education. So for P1. etc. So the revised equation would now be: Υ = β0+ β1X + μ Summary The main highlights of the article above are as follows:  The regression line is the line of best fit. However suppose in reality we find that the person actually earns $22 per hour! This does not imply that the regression equation is incorrect. the equation reduces down to: wages = 5. It is the line that best represents the trend or relation in the given data  ß1 is the slope of the line. The relation between the dependent and independent variable is: . networking ability. the individual earns $17 per hour. but in fact can be attributed to a factor termed as residual. IQ. In case of a person with no education. in real life many other factors in addition to education such as number of years of experience.

brand name.Predicted  The residual term accounts for the error in the prediction. deciding upon a survey format. Hence the steps are synonymous of most marketing research methods that we had seen in the previous modules. Purpose of the study Concept testing is mainly used for go/no-go decision for a new product. to improve/refine the base product or service proposition. Concept Testing Concept testing is the process of testing new or hypothetical products or services before they are launched. packaging. It contains all other factors (except X) that impact Y. This decision itself may have several aspects. .o Positive If: β1 > 0 o Negative If: β1 < 0 o No Relationship If: β1 = 0  The estimated regression can be used to make predictions for Υ given X.  Benchmarking  Forecasting demand Concept Testing Process The process of concept testing involves stages such as defining the goal of the study. measuring consumer response and interpreting the results. communicating the concept.  Residual = Actual . etc  Determining the optimal pricing point for new products  Testing customers’ trial experiences to see if product or communications adjustments should be made. choosing the sample population. The testing is intended to screen a number of concepts to identify the strongest ones for progression. and/or to forecast their likely success. logo. Below are some examples of situations in which this study finds its usage:  Reaching out to a new market segment  Ranking and selecting the best potential product concepts.

he might not need the scooter at all. Product Description Also known as communicating the concept. Let us consider that a company wants to launch a new battery operated scooter / electric bike for college going students (new market). 1. the purchase intention of a potential consumer can be checked by using a simple likert scale: o If the scooter is priced as per expectations. 2. So again. the student must be eliminating while consolidating the results. An important question in the demographics section should be: o How far do you live from campus? If the student stays within 5 miles of the campus.The expected outcome of the study is to capture the consumer purchase intent. how likely are you to purchase it in the next one year? . Broadly the questionnaire designed for the survey has 3 main sections though they can vary depending on the product and the research company. Qualification Screener questions are asked to ensure that only valid responses are processed. a scooter might not be the optimum mode for commuting. if he stays too far away. the new product idea is described to the respondents using several techniques such as: o Verbal description o Photo o Video o Multimedia o 3-D model o Working prototype o Storyboard o Simulation  Purchase Intent After describing the product by using one of the applicable methods mentioned above. Similarly.

the results may be skewed either positively or negatively in the following situations:  Word of Mouth impact  Pricing Mismatch  Level of Promotion  Competition Conclusion In a nutshell. This power of a brand is measured using a technique of marketing research – Brand Health Survey. A strong brand can command a premium price. .❏ Definitely won’t purchase ❏ Probably won’t purchase ❏ Not sure ❏ Probably would purchase ❏ Definitely would purchase Sources of Error in tested results Though concept testing predicts the acceptability of a new product fairly accurately. the goal of concept testing is to develop. Brand Health Survey A brand is a perception in its consumers’ minds. refine and nurture new product and service initiatives around solid consumer insights with a view to reducing the probability of failure and increasing the probability of a successful launch and in-market performance.

what do they expect from it and from other competitors and whether they intend on buying. Awareness depicts how familiar customers are with the brand. how do they perceive the brand. Tracking brand equity is an important function of any brand manager or of someone in marketing. Recall is a better indicator of the brand’s health as a name that first comes to . Not only does it help in staying a step ahead of competition. In a brand health survey both recall and recognition are captured. but it also quantifies the effectiveness of marketing and advertising campaigns. It includes the following aspects:  Awareness and usage  Stakeholders’ perception of the brand. Brand Awareness Consumer awareness is the connection between marketing and sales. this technique is used to measure a 360 degree view of a brand.  Performance of the brand on its value proposition  Customer loyalty  Strategy to allocate resources aptly for maximizing the brand potential  Ability to charge premium Areas to be covered in Brand Health survey Following features are covered for a comprehensive brand tracking study: 1.Figure: Current health status of some popular brands While checking a brand’s health certain vital aspects are captured such as how aware are people of the brand. Objectives of Brand Health Survey Broadly.

what is the pitfalls customers associate with the brand. While measuring brand usage. 3. In the former case. the study also indicates the brand’s market share. Brand Attributes This part of the study simply checks whether the brand is coherent with the customers’ expectations and how well their needs are fulfilled. this study can be conducted at an interval of 3-6 months or on an annual basis. Apart from getting an idea about the consumers’ purchase behaviour and preferences. It is beneficial to conduct brand health survey in the following changing circumstances: . Generally it is required most frequently in the FMCG sector due to the fast faced atmosphere of that industry. PwC implements this study once every two years to understand its position amongst the Big Four consulting companies. a much lesser frequency is sufficient.the customers’ minds is more desirable as compared to a name that is prompted and then recognized. it has significant liabilities. Brand Usage Understanding a brand’s usage helps a company realize its standing in the market. 5. For the services industry. Purchase Intent Measuring the likelihood of purchase is an important part of the brand health survey. channel and time so that a near accurate prediction of the actual purchase decision can be made. In a nutshell. customers are also more likely to recommend the brand. Measuring brand attributes checks time and again whether this is true and if not. Considering the example of Walmart in the US. Satisfaction is the supreme indicator of a brand’s health and it is a culmination of all its sub factors. When to conduct a Brand health Survey Depending on the industry and the organization. Respondents should be probed on their reason for purchase. frequency of usage. Every brand strives to maintain a positive impression about itself in the minds of the customers. recency of purchase and total spending on the brand are quantified. 2. customer satisfaction is the primary attribute to be checked which is comprised of several sub attributes as described under: 4. it does not enjoy impeccable brand health because though it is a market leader.

etc are being observed. the results and conclusions drawn upon by using MR are not very accurate. The reproduction of the same project on the same class of respondents give different research results.  There is less interaction between the MR department and the main research executives. They have limited experience of the notion of the decision-making process. Mission & Values)  Promotional synchronization with marketing plan. The firms are required to maintain a balance between the requirement for having a broader perspective of customer needs and the need for quick decision making so as to have competitive advantage.  MR faces time constraint.  MR is not free from bias.  Market Dynamics  Change in customer base or clients  Rebranding in terms of names and logos Limitations of Marketing research Following are the main limitations of Marketing Research:  Marketing Research (MR) is not an exact science though it uses the techniques of science. suppliers. Thus. The research conclusions cannot be verified. Many firms do not have the proficiency to carry wide surveys for collecting primary data. The research department is in segregation. views.  Huge cost is involved in MR as collection and processing of data can be costly. Thus.  MR is not a complete solution to any marketing issue as there are many dominant variables between research conclusions and market response. the consumers and respondents upon whom the research is carried behave artificially when they are aware that their attitudes. This all makes research ineffective. intermediaries. in that case. etc. they go for obtaining secondary data that is cheaper to obtain. Humans have a tendency to behave artificially when they know that they are being observed. beliefs.  Many business executives and researchers have ambiguity about the research problem and it’s objectives.  The results of MR are very vague as MR is carried out on consumers. and might not also able to hire specialized market experts and research agencies to collect primary data. who are humans. Thus. . Business / Organizational change  Strategic alignment (Vision. This leads to carelessness in research and researchers are not able to do anything real.  Inappropriate training to researchers can lead to misapprehension of questions to be asked for data collection.

. MR is conducted in open marketplace where numerous variables act on research settings.