305 MKT COntemporary Marketing Research DR Ashish R Jaswal MBA-II (Sem-III)

• Course :Contemporary Marketing Research
• Course Code:305MKT
• Program: MBA
• Sem-III
• Class: MBA-II
Dr Ashish R Jaswal
Sanjivani College Of Engineering,
Dept. of MBA
Kopargaon, Dist- Ahmednagar, Maharashtra, India, Pin
423603
Dr Ashish R Jaswal,SCOE-Department of
MBA
Unit 1
Course Code:305MKT
MBA
• Course Code 305MKT
• Type Subject – Core
• Course Title :Contemporary Marketing
Research
»Syllabus
• Written Home Assignment
MBA
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What is Methodology?
Systematic Way of doing things
Methodology involves
• Process
• Methods/Techniques
• Tools
• Logic
Research Methodology means
systematic way of doing research
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What is Research?
Research
• Is Search for Knowledge
• Has to be done Objectively
• Uses a Scientific/Systematic/Logical
Way
Research is an Objective and

Systematic Search for Knowledge
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What is Research?
Pursuit of Truth
Voyage of Discovery
Movement from Known to Unknown
Organised Enquiry
Scientific Investigation
In-depth Analysis
Cause and Effect Relationship
Fact Finding Exercise
Problem Solving Tool
Supports Decision Making
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What is Research?
―Research is a process of
systematically obtaining
accurate answers
to the pertinent and significant
questions
by the use of scientific method of
gathering and interpreting
information.‖
- Clover and Balsely
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Research Process
Define Problem
Formulate Hypothesis
Research Design
Data Collection
Data Analysis and Interpretation
Research Findings
Research Report
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Research Process
Define Problem
• Identify, Understand and Define
Problem
• Purpose and Objectives of Research
• Assumed solution of research problem
Research Design
• Plan of Research
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Research Process
Data Collection
• Gathering of Data

• Analysis of Data
• Interpret meaning from the data
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Research Process
• Result/ Outcome of Research
• Conclusions
Research Report
• Report Of Research Activity
• Feedback To The Management
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Summing-Up
 Methodology is Systematic Way of

doing things
Research is an Objective and

Systematic Search for Knowledge
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Summing-Up
Research Process
Define Problem
Research Design
Data Collection
Research Report
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Marketing Research
• Marketing research is a systematic and
objective study of problems pertaining to
the marketing of goods and services.
• It is required and applicable to all areas of

marketing.
• Marketing research is of both types i.e.

problem solving and problem oriented
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Definition by AMA
The Function
Which Links
The Consumer, Customer And Public To Marketer
Through Information
Used To Identify And
Define Marketing Opportunities And Problems
Generate, Refines And Evaluate Marketing Actions
Monitor Marketing Performance
And
Improve Understanding Of Market As A Process.
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Definition by AMA-Cont..
• Specifies the information required to address these issues
• Design the methods for collecting information,
manages and
• Implements the data collection process
analyze the results and
• Communicate the findings and their
implications.
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Marketing Research Defined
The planning, collection, and analysis of data
relevant to market decision making and
communication of the results of this analysis to
management.
The Importance of Marketing Research to

Management
• Descriptive function
• Diagnostic function
• Predictive function
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Purpose
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Marketing Research in Practice
• Develops market options through market
segmentation, market opportunity analysis, or
Programmatic
Research consumer attitude and product usage studies
• Tests different decision alternatives such as new

product concept testing, advertising copy testing,
Selective
Research pretest marketing, and test marketing
• Evaluation of performance of programs

Evaluative
Research
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Participants in Marketing Research Activities
Information Users
• General management
• Planning
• Marketing and sales managers
• Product managers
• Lawyers
Information Suppliers: Information Suppliers:

Inside the Company Outside the Company
• Marketing research department • Research consultants
• Sales analysis group • Marketing research suppliers
• Accounting department • Advertising agencies
• Corporate strategic planning
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Scope…
 Main Divisions of Marketing Research

1. Product Research
2. Sales Research
3. Customer Research
4. Pricing Research
5. Advertising Research
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Scope…
 Product research: Concerns with
a. Design
b. Development
c. Testing of new products
d. Improvement of existing product
It also examines-
a. Quality of new product
It analyses-
Product mix in comparison with the
competitive products.
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Product Research
• Concern with analysis of after-sales
service.(consumer durables and technical
products product)
• Packaging has considerable importance,
therefore product and packaging research is
suitable to evolve strategies for market
segmentation.
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Hero unveils fully „desi‟
Splendor iSmart
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Hero Splendor iSmart 110
• designed and developed entirely by Hero
• features a totally new chassis and frame
• powered by a new 110cc engine
• patented i3S technology
• complies with Bharat Stage IV emission
norms.
• Fuell efficient engine
• New chassis, Featurepacked
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Sales Research
 Sales research is concern with all sales
activities.
 It examines various sales outlets &
territories- in terms of performance of
sales.
 It also examines product-wise
performance and know the position in
the market in relation to its competitors.
 Sales research also helps to determine
the effectiveness of the sales force and
factors to improve its performance.
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Customer Research
 Customer research is concern with studies of
customer/consumer behaviour.
 It look into various factors such as sociological,
economical, psychological which influence buying
decision of customer.
 It also concern with the customer satisfaction and to its
extent.
 Customer research can provide customers‘ suggestions
for product deficiency and improvements.
 Customer research is in the form of attitudinal studies
offers clues to differentiate competitive brands to
certain types of customers & buyers.
 To determine the market share customer research is
helpful.
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Pricing Research
 Price for goods & services to be fixed-
success factor- cost is basis
 Nature of demand, competition, technological
developments, financial status of consumers
are some of the factors for pricing.
 For new product- test marketing may be
undertaken at various locations with varying
prices- which helps to find the extent of
acceptability and to choose the appropriate
price.
 For established product- firm may like to
know sensitivity of price change (price
elasticity of demand)
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Advertising Research
 Advertising- increase awareness of
product & services- leading to increase
sales.
 Two types
1. Media Research
2. Copy Research
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Media Research
 Media research is concern with- television,
radio, newspaper & magazines.
 It helps to choose a particular media or
combination of media.
 It also helps to decide specific insert within a
particular type of media.
Copy testing:
Copy testing is concern with the studies to
determine the suitability of particular copy
before it is finally released as an
advertisement.
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Advantages of Market Research
– Helps focus attention on objectives
– Aids forecasting, planning and strategic
development
– May help to reduce risk of new product
development
– Communicates image, vision
– Globalisation makes market information
valuable
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Disadvantages of Market Research
– Information only as good as the

methodology used
– Can be inaccurate or unreliable
– Results may not be what the business wants
to hear!
– May stifle initiative and ‗gut feeling‘
– Always a problem that we may never know
enough to be sure!
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Limitations of Marketing Research
1. Marketing research tends to be fragmentary in
its approach as a result of which it becomes
difficult to have an overall perspectives in
which a marketing problem is to be viewed
and studied.
2. Marketing research is criticized on the ground
that it become too superficial and faulty in
industry.
3. There is an absence of meaningful dialogue
between the marketing management and the
marketing research team.
4. Marketing research is not pure science.
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Marketing Intelligence system
• Marketing intelligence system provides
marketing managers their day-to-day
information pertaining to the external
marketing environment.
• The marketing intelligence received from
managers, can be further improved by the
firms by taking certain steps. (e.g. motivate
distributors & retails to give imp. Mkt.
intelligence)
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• The overall ice cream market in India is dominated
by Amul, a brand owned by the Gujarat Cooperative Milk
Marketing Federation, with a 32% share, according to the
study.
• Mövenpick, the nestle-owned premium ice cream brand,
is shifting gears in india.
• Mövenpick—the ice cream brand started by swiss
hotelier ueli prager in 1948
• Entered india in 2000, it had a troubled journey until 2004,
• It plans to have 50 outlets across the country in the next
three years
• Star foods speciality, mövenpick‘s distributor in india.
• At present, mövenpick‘s top five markets are switzerland,
russia, england, france and australia.
• Next five years, we believe india will be among the top 10
markets for mövenpick in terms of size
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Mövenpick sees India among its
top 10 markets in five years
• A study by retail consulting firm technopak
advisors.
• The annual per capita consumption of ice
cream in india is about 300ml,
• While it is 22,000ml in the US and
• About 3,000ml in china
• According to an April study by euromonitor
international, the ice cream market in india
is estimated to grow to rs.6,198 crore in
2019 from rs.4,160 crore in 2014.
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High-Growth Indian Online Matrimonial
Matchmaking Market Beckons Investors
• The average Indian spends considerable time (in excess of
six months) and money (averaging INR 15 lakhs or
approximately US $25,000) on the entire matchmaking and
wedding ceremony process. Since finding the ―right‖
partner has assumed special significance over the years, it
is little wonder that the wedding services market in the
country is worth over $36 billion.
New analysis from Frost & Sullivan, Investment
Opportunities in the Indian Online Matrimonial
Matchmaking Market, reveals that the top 3 online Indian
matchmaking platforms have accounted for over 5 million
marriages in the last decade. On an average, shaadi.com
has 10,000 new registrations a day and 3 million active users
looking for spouses.
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India will unseat the U.S. as the 2nd largest
smartphone market in the world by 2017
• According to a new report from Strategy Analytics, India will
unseat the United States as the second largest smartphone
market within the next two years, with China remaining the
clear leader of the pack.
• While smartphone penetration in India is currently
relatively low, with only 110 to 120 million of the 1.2 billion
people in the country able to claim ownership of such a
device, forecasters say this will change very quickly in the
coming years.
• As per the report, in 2015, Indians will buy 118 million

smartphones, and by 2017, 174 million phones will be sold
over the course of the year.
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Chain Restaurant Study
One day I received a phone
call from a research analyst
who introduced himself as
one of our alumni.
He was working for a
restaurant chain in town and
wanted help analyzing the
data he had collected while
conducting a marketing
research study.
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When we met, he presented me with a copy of the
questionnaire and asked how he should analyze the data.
My first question to him was,
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When he looked
confused, I explained
that data analysis in
not an independent
exercise.
Rather, the goal of data analysis is to PROVIDE

INFORMATION RELATED TO THE PROBLEM COMPONENTS.
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I was surprised to learn that he did not
have a clear understanding of the
marketing research
problem and that a written
definition did not exist. So before going
any further, I had to define the
marketing research problem.
Once that was done, I found that much of

the data collected was not relevant to the
problem. In this sense, the whole study
was a waste of resources. A new study had
to be designed and implemented to
address the problem defined.
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STEP 1
• Defining the problem is the
most important step, because
only when a problem has been
clearly and accurately identified
can a research project be
conducted properly.
• Defining the marketing
research problem sets the
course of the entire project.
• A broad statement of the
general marketing Research
problem and identification of
Dr Ashishits specific components
R Jaswal,SCOE-Department of
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Proper Definition of the
Research Problem
Marketing Research
Problem
Broad Statement
Specific Components
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At Indigo, Food is Uniting the
Airline With Travelers
Indigo Airlines, as other major airlines, had

to deal with passenger loyalty
(Management Decision Problem: how to
attract more and more loyal passengers).
The broad Marketing Research Problem was
to identify the factors that influence loyalty
of airline travelers.
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The basic answer is to improve service.
Exploratory research, theoretical framework,
and empirical evidence revealed that the
consumers’ choice of an airline is influenced
by: safety, price of the ticket, frequent-flyer
program, convenience of scheduling, and brand
name.
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A graphical model stipulated that
consumers evaluate competing airlines
based on factors of the choice criteria to
select a preferred airline. The problem
was that major airlines were quite similar
on these factors. Indeed, "airlines offer
the same schedules, the same service,
and the same fares.” Consequently,
Indigo had to find a way to differentiate
itself. Food turned out to be the solution.
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Secondary data, like the J. D Power &
Associates' survey on "current and future
trends in airline food industry", indicated that
"food service is a major contributor to
customers’ loyalty". This survey also
emphasized the importance of food brands.
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The airline's survey told Indigo Airlines that
"customers wanted more varied and up-to date food.”
The following research questions and hypotheses may
be posed.
RQ1 How important is food for airline customers?
H1: Food is an important factor for airline travelers
H2: Travelers value branded food
H3: Travelers prefer larger food portions, but with
consistent quality
H4: Travelers prefer exotic food
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Characteristics which influence the research
design included the identification of competing
airlines (Go Air, Air Asia, etc.), factors of the
choice criteria (already identified), measurement
of airline travel and loyalty.
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This kind of research helped Indigo to define their
marketing research problem, and develop the approach.
Focus groups and surveys were conducted to check
customers' perceptions of food in Indigo aircraft. The
results provided support for all the hypotheses (H1 to
H4). Indigo then made a few changes: new "cooking
menus," larger portions of food, new coffee and branded
products This resulted in better service, increasing
customer satisfaction and fostering loyalty.
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THE PROBLEM DEFINITION PROCESS
Tasks Involved
Discussion Interviews Secondary Qualitative

with with Data Research
Decision Maker(s) Experts Analysis
Understand the Background problem by analyzing Environmental Context of the Problem
Step I: Problem Definition
Facilitates Management Decision Problem
Translated to Marketing Research Problem
Step II: Approach to the Problem is developed
Analytical Model: Specification

Objective/ Verbal, Research of
Theoretical Hypotheses
Graphical, Questions Information
Foundations
Mathematical Needed
Step III: Research

Dr Ashish R Jaswal,SCOE-Department of Design
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Tasks Involved in Problem
Definition
Discussions with Decision Makers
Interviews with Industry Experts
Secondary Data Analysis
Qualitative Research
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Discussions with Decision Makers
Needs to understand the capabilities & limitations

of research
Provides information but cannot provide solutions
Understand what decision manager face
comprehensive Examination of a marketing problem to

understand its origin & Nature
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Firm Losing Market Share
Vague idea of the

problem
Firm losing market
share but may not why
DM tends too focus on
symptoms rather than
cause Symptoms-Inability to
meet sales forecast, loss
of market share, decline
Causes-Better in profits
promotion by the Comp,
inadequate distribution
Underlying causes to be
identified
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Interviews with Industry Experts
Individuals Knowledgeable about
the firm & industry- (Why)
Inside & outside the Firm(Why)
Helps formulate Market Research

Plan.(What)
Unstructured Personal
I
Interview(How)
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Secondary Data Analysis
Data collected for some purpose

other than the problems at
hand(WHAT)
Data made available by Business &

Government sources, commercial
marketing Research firm.(WHO)
Economical & Quick source of

Ground information(WHY)
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An unstructured ,exploratory
research methodology
Based on small sample

Intended to provide
insight
Understanding of the
problem setting
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Tasks Involved


Foundations
Mathematical Needed
Step III: Research

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2.Understand the Background problem by
analyzing Environmental Context of the Problem
Researcher Must Understand analyze the factors that have
The Client‟s Firm And Industry an impact on the definition
of the marketing research
PROBLEM problem
Past Information And Forecast
Resources And Constraints Of
Pertaining To The Industry And The
The Firm
Firm
Buyer Behavior( A body of Objective (Goals of the organization &
knowledge useful in DM must be considered)
understanding & predicting
Consumers Reactions) Legal Environment (Regulatory policies
& norms within which organisation
Economic Environment( consits must operate- patents,trademarks,taxes
of income ,prices,saving & ,Tariff,Regulatory Body)
general Economy) Marketing And Technological Skills Of
The Firm(Gain Adequate understanding
will help define management problem &
marketing Research
Dr Ashish R Jaswal,SCOE-Department of problem
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Management Marketing Research
Decision Problem Problem
Asks What The DM Ask what information is needed
Needs To Do and how it can best be obtained.
Action oriented. Information Oriented.

Determine what information is
Concerned with the
needed to make the best
possible actions the
decision.
DM could take.
Can be obtained effectively
and efficiently.
Focuses on
symptoms Focuses on
underlying causes
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Management Decision Marketing Research
Problem Problem
Should a New product To determine the consumer

be introduced? preference and purchase
intentions for the new products
Should the
To determine the effectiveness of
Advertising campaign
the current Advertising campaign
Changed
To determine the price

Should the price of
elasticity of demand and the
the Brand Changed
impact on sales & profits of
various level of Price Change
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Tasks Involved


Foundations
Mathematical Needed
Step III: Research

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Components of the Approach
• In the process of developing an approach, we must

not lose sight of the goal - the outputs.
• The outputs of the approach development process
should include the following components:
• Objective/theoretical framework
• Analytical models
• Research Questions
• Hypotheses, and
• Specification of Information Needed.
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Objective/Theoretical Framework
Based
Supported by
Objective Evidence
theory
Evidence-unbiased Conceptual scheme

evidence that is based on
supported by foundational
practical foundation statements which
are assumed to be
true
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Analytical Model
• An precise specification of a set of
variables and their interrelationship
designed to represent in a whole or part
some real system or procees
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Research Question
• Refined statements of the specific
components of the problem
• RQ-Do customers of Titan Exhibit store
Loyalty
• RQ Does Nike Have an upscale image
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Hypothesis
• An unproven statement or proposition about a factor or
phenomenon that is of interest to the resaercher
• RQ-Do customers of Titan Exhibit store Loyalty
• H: Customers of Titan are loyal
• RQ Does Nike Have an upscale image
• H- Nike is perceived to be expensive brand
• H2-Purchasers of Nike have higher than Average
income
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RESEARCH
DESIGN
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WHAT IS RESEARCH DESIGN
Framework Blueprint
Conducting The Marketing

Research
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Tasks Involved In a Research Design
Define the Information Needed
Design the Exploratory, Descriptive, and/or

Causal Phases of the Research
Specify the Measurement and Scaling Procedures
Construct a Questionnaire
Specify the Sampling Process and the Sample Size
Develop a Plan of Data Analysis
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Classification of Market Research Designs
Research
Design
Exploratory Conclusive
Research Research
Secondary Experience Pilot Studies Case Studies

Data Surveys
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Classification of Market Research
Designs
Research
Design
Exploratory Conclusive
Research Research
Cross-sectional
Study
Descriptive Causal
Longitudinal Design Design
Study
Experiment
Secondary
Survey Observation
Data Study Dr Ashish R Jaswal,SCOE-Department of
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EXPLORATORY RESEARCH
• Usually conducted during the
initial stage of the research
process
• Purposes
– To narrow the scope of the
research topic, and
– To transform ambiguous problems
into well-defined ones.
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CONCLUSIVE RESEARCH
• Provide specific information that aids the
decision maker in evaluating alternative
courses of action
• Sound statistical methods & formal research
methodologies are used to increase the
reliability of the information
• Data sought tends to be specific & decisive
• Also more structured & formal than
exploratory data
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TYPES OF CONCLUSIVE RESEARCH
• Descriptive Research
– Describes
attitudes, perceptions, characteristics, activ
ities and situations.
– Examines who, what, when, where, why, &
how questions
• Causal Research
– Provides evidence that a cause-and-effect
relationship exists or does not exist.
– Premise is that something (and
independent variable) directly influences
the behavior of something else (the
dependent variable).
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A Comparison of Basic Research Designs
Descriptive Causal
Objective: Describe market Determine

characteristics or cause and effect
functions relationships
Characteristics Marked by the Manipulation of

: prior formulation one or more
of specific independent
hypotheses variables
Preplanned and Control of other

structured design mediating
variables
Secondary data Experiments

Methods: Surveys
Panels
Observation and
other data MBA
Descriptive Research
• Definition
A type of conclusive research which has
its major objective the description of
something-Usually market
Characteristics or functions
What is happening?
How is something happening?
Why is something happening?
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Descriptive Research
 Market studies-Size of the Market, buying power of
the consumers ,availability of distributors &
consumer Profile
 Market Share- proportional of total sales received by
the company & competitors
 Sales Analysis-Sales by Geographic region,product
line
 Image studies-perception of the firm & its products
 Pricing- Range & frequency of price Change &
consumer response
 Advertising studies- audience profile for specific
program & magzines
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Cross Sectional
Design Types of DS
Involves collection of
Single Cross information from any
sectional given sample of
Designs population elements
only once
Multiple Cross One sample is drawn from
sectional the target population and
Design information obtained from
this sample once
Two or more samples are drawn from

the target population and information
obtained from each sample is once
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Longitudinal Design
Involving a fixed sample of

population elements, which is
measured repeatedly
Involving A Fixed Sample Of Population

-
Elements, Which Is Measured Repeatedly
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Relative Advantages and Disadvantages of
Longitudinal and Cross-Sectional Designs
Evaluation Cross-Sectional Longitudinal

Criteria Design Design
Detecting Change - +
Large amount of data collection - +
Accuracy - +
Representative Sampling + -
Response bias + -
Note: A “+” indicates a relative advantage over the other design,

whereas a “-” indicates a relative disadvantage.
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Cohort Analysis
A multiple cross section Design consisting of a series

of survey conducted at appropriate time intervals
Cohort refers to group of respondents who

experience the same event within the same
time interval
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Gathers data from Reliable
Consumer Panels
the same sample of Information
individuals
A longitudinal study
Over Time Policy Decisions On
Marketing
Purchase Panel Audience Panel Attitude Panel
Product Testing Retail Panel/Retail

Dealer Panel
Panel Audit
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Applications of Longitudinal Studies in Marketing
To study the purchasing

Purchase Panel habits and trends of
consumers.
Audience Panel Designed to provide

information regarding
media audiences.
Attitude Panel
Consumers towards a
product/ marketing
Dealer Panel practice.
Total sales, prices
charged, promotional
efforts made, services
offered
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Product Testing Testing The Utility And
Panel Other Features Of The
Product Before Bringing It
In The Market
Retail Panel/Retail
Audit Information about their
stocks at regular intervals
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Media Audience Tracking
tProvides details of channel tDesigned to provide
,programme and time information regarding media
duration viewed audiences.
TV- Tracking
t
AC Nielson
Meters
Same set of respondents

Time Series tested over period of
Analysis time on the same set of
variables
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Target Rating
Points (TRPs)
Gross rating
points delivered
by a media
vehicle to a
specific target
audience.
Measure Impres
sions
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Brand Tracking Studies
Monitor The Health

Of The Brand
Effectiveness Of
Marketing
Programs
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Recall-
Awareness Recognition
Recall Recall-A brand

that first comes
to mind when it is
prompted
ecognition
R Identify product or
service just by viewing
logo,packaging or colour
Usage
Brand purchase,Purchase
Frequency & Customer loyalty
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• Qualitative versus Quantitative
Research
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• Ritu is absolutely correct & wise in her
approach
• Numbers & equations must be fine for
predicting rainfalls
• Need to strategize and deliver Human
Needs?
• Qualitative analysis …… goes Deeper
and understand
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Qualitative versus Quantitative
Research
Qualitative Research Quantitative Research
Objective Can be used to explore To quantify ,explain &

describe or understand predict the occurrence of
reasons and motivations certain phenomenon the
For a certain data and generalize(to
phenomenon(low cost measure purchase intention
for Nano as demographic
car means to Consumer)
variables of Income,family
size and distance travelled)
Sample Small number of non- Large number of
representative cases representative cases
Data Collection Unstructured Structured
Non-statistical Statistical
Data Analysis
Recommend a final course
Outcome Develop an initial
Dr Ashish R Jaswal,SCOE-Department ofof action
understanding MBA
A Classification of Qualitative
Research Procedures
Procedures
Purpose of the project are Purpose of the project are not

disclosed to respondents disclosed to respondents
Direct (Non Indirect
disguised) (Disguised)
Projective
Depth Interviews Techniques
Focus Groups
Association Completion Construction Expressive

Techniques Techniques Techniques Techniques
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Focus Group
• An interview conducted in an
unstructured and natural manner by a
trained moderator among a small group
of respondents
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Key Characteristics Of Focus Group
 FOCUSED ON PARTICULAR TOPIC

 OUTLINE IS PREPARED FOR DISCUSSION
 CHARACTERISTICS OF MODERATOR
 UNSTRUTURED
 SIZE-8-12
 GROUP COMPOSITION HOMOGENEOUS
 RECORDED-AUDIOCASTEES & VIDEOTAPES
 OBSERVATION
 UNDISGUISED
 PHYSICAL SETTING RELAXED
 SEVERAL SESSIONS NEEDED 1-3 HRS EACH
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Advantages of Focus Group
1. Synergism 1+1=3 wider range of information
insights and ideas
2. Snowballing- one persons reaction triggers a
chain reaction
3. Stimulation- Expression of ideas & exposure
of feelings increases in the group
4. Security- feelings are similar hence willing to
express
5. Spontaneity-Not required to answer the
specific questions hence responses are
spontaneous Dr Ashish R Jaswal,SCOE-Department
MBA
of
Advantages of Focus Group
6. Seredipity-ideas likely to arise out of group
7. Specialization- Use of highly trained
interviewer
8. Scientific scrutiny of data-close scrutiny
recorded later analysis
9. Structure- depth with which they are treated
10.Speed- Data collection & analysis is relatively
Quickly
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Disadvantages of Focus Group
1. Misuse- group misused /abused
2. Misjudge-susceptible to client/researcher
bias
3. Moderation- Difficult to moderate
4. Messy- Unstructured nature of respondents
makes coding ,analysis & interpretation
difficult
5. Misrepresentation- not representative of
general population and not projective
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A Classification of Qualitative
Research Procedures
Procedures
Purpose of the project are Purpose of the project are not

disclosed to respondents disclosed to respondents
Direct (Non Indirect
disguised) (Disguised)
Projective
Depth Interviews Techniques
Focus Groups
Association Completion Construction Expressive

Techniques Techniques Techniques Techniques
MBA
Depth Interview
• An unstructured ,direct, personal interview in which a
single respondent is probed by a highly skilled
interviewer to uncover underlying motivations, belief
,attitudes and feeling on a topic.
• Features
• D-Depth of coverage
• E-Each respondent is individually interviewed
• P-Probe the respondent
• T-Talented Interviewer required
• H-Hidden motives may be covered
MBA
Depth Interview- Advantages&
Disadvantages
 Advantages of Depth Interview

 Lot of detail is provided.
 Information obtained is comparatively more accurate.
 Personal or intimate topic can also be discussed since the
personal rapport is established between the respondent
and the interviewer
 Disadvantages of Depth Interview
 It is difficult to generalize since the interviewers are non-
standardized
 Since the success depends on the interviewer, there are
chances of bias.
 Data analysis takes a lot of time.
MBA
Projective Techniques
• An unstructured and indirect form of
questioning that encourages the
respondent to project their underlying
motivations, beliefs, attitudes or feelings
regarding the issues of concern.
• Interviewer presents to the respondents
a series of questions, statements or
pictures which are incomplete
MBA
Projective Techniques
• Association Technique
• Respondent is presented with the
stimulus and ask to respond with first
things that come to mind
MBA
Important Projective Techniques
• Word Association Test:

– Given a clue or hint and asked to respond to the first thing that comes to mind. The association can take
the shape of a picture or a word.
– There can be many interpretations of the same thing.
– A list of words is given and you don‘t know in which word they are most interested. The interviewer
records the responses which reveal the inner feeling of the respondents.
– 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. For eg: Out of 50 respondents 20 people associate
the word ― Fair‖ with ―Complexion‖.
• Completion Test:
– In this the respondents are asked to complete an incomplete sentence or story. The completion will
reflect their attitude and state of mind.
• Construction Test:
– This is more or less like completion test. They can give you a picture and you are asked to write a story
about it. The initial structure is limited and not detailed like the completion test. For eg: 2 cartoons are
given and a dialogue is to written.
• Expression Techniques:
– Verbal or visual situation In this the people are asked to express the feeling or attitude of other people.
MBA
• Research Proposal
MBA
Research Proposal
• Written account of the plan for the
research project
• Why a particular problem should be
investigated and what appropriate
research design is to investigate it
MBA
Structuring the
Research Proposal
• Executive Summary • Budget
• Problem Statement • Schedule
• Research Objectives • Results & Practical
• Importance/ Benefits of Utility of Research
Study • Bibliography
• Research Design • Appendices
• Data Analysis
MBA
Executive Summary
• Abstract
• Spell Purpose & Objective of the study
• Give summary about the management
problem
• The probable research question?
MBA
Research Question
• Refined statements of the specific
components of the problem
MBA
Hypothesis
• An unproven statement or proposition about a factor or
phenomenon that is of interest to the researcher
MBA
Tasks Involved In a Research Design
Define the Information Needed
Design the Exploratory, Descriptive, and/or

Causal Phases of the Research
Specify the Measurement and Scaling Procedures
Construct a Questionnaire
Specify the Sampling Process and the Sample Size
Develop a Plan of Data Analysis
MBA
MBA
Unit 2
Course Code:305MKT
MBA
What are we going to study?
• Different types of measurements
• Various formats of rating scale
• Construction of attitude measurement
scale
• Distinct criteria in analyzing a good
measurement scale
MBA
What is Measurement?
• Assigning numbers or some other
symbols to characteristics or objects
according to certain pre specified rules
MBA
Specification Rules for assigning
numbers to the characteristics
Rule 1: Assignment Process must be Isomorphic
one to one correspondence between the numbers &
characteristics being measured
(Income in Rupees)
Rule No 02 :Should be standardised & applied Uniformly
MBA
Scaling
Scaling is extension of measurement
• The generation of continuum on which

measured objects are located
Locating consumers according to the characteristics attitude towards

Big Bazaar
Unfavourable attitude-01
Neutral Attitude-02
Favourable attitude-03
MBA
Activity-I
• Suppose you want to measure satisfaction level
towards Indigo Airlines and a scale of 1 to 11 is
used for the purpose.The scale indicates
degree of satisfaction with 1= extremely
dissatisfied & 11= extremely Satisfied
• What is measurement & scaling?
• Assignment of numbers from 1 to 11 to each
respondents
• Placing the respondent on continum with their
satisfaction
MBA
Types of measurement Scales
1. Nominal scale
2. Ordinal scale
3. Interval scale
4. Ratio scale
MBA
Nominal Scale
• Lowest level of measurement
• Assigned for purpose of identification
• Each number is assigned to one object and each
object has only one number assigned
• Objects are divided into mutually exclusive &
collectively Exhaustive
• Numbers assigned in nominal scale cannot be added
,substracted,multiplied ,divided
• Assignment of higher nember is in no way superior to
one with assigned lower number
• Frequency Distribution can be prepared
MBA
Nominal Scale
• What is your • Are you
religion? married?
a) Hinduism a) Yes
b) Sikh b) No
c) Christian
d) Islam
e) Any other
MBA
Nominal scale
Reasons for purchase by Gender
Reasons Male Female
No % No %
Weight 10 26
Speed 30 14
Total 40 40
Numbers assigned to runners Are needed to measure brand

number,store types, sales
Dr Ashish R Jaswal,SCOE-DepartmentTerritories,
of Geographical
MBA location,Gender Classification
Ordinal scale
• A ranking scale in which numbers are assigned to
objects to indicate the relative extent to which some
characteristic is possessed
• Cannot answer how much more or less
• MOHAN –I
• SHASI-II
• Krishna-III
• Difference in the marks between MOHAN/SHASHI or
SHASHI/KRISHNA is not known
• CAT Score 95%
MBA
Ordinal Scale
• Rank the attributes while choosing a
restaurant for Dinner
• The most important ranked number 1
and so on
Attribute Rank
Food Quality
Price
Menu Variety
Ambience
Service
MBA
Ordinal Scale
• Ranks assigned in ordinal scale cannot
be added ,subtracted, multiplied ,
divided
• Ordinal scale data can be converted into
nominal scale but not the other way
round
MBA
Interval Scale
• A scale in which the numbers are used to rate objects
such that numerically equal distance on scale
represent equal distance in the characteristics being
measured
• How do you rate your present refrigerator for the
following qualities
Company Less 1 2 3 4 5 Well known
Name Known
Price Low 1 2 3 4 5 High

Design Poor 1 2 3 4 5 Good
MBA
Ratio Scale
• The highest scale .It allows the
researcher to identify or classify the
objects, rank order the objects and
compare intervals or differences
Time to finish in seconds

Length, Weight,Age,Income,sales,
market shares
MBA
Primary Scales of Measurement
Scale
Nominal Numbers
Assigned Finish
to Runners 7 8 3
Ordinal Rank Order Finish

of Winners
Third Second First
place place place
Interval Performance
8.2 9.1 9.6
Rating on a
0 to 10 Scale
15.2 14.1 13.4

Ratio Time to Finish
in Seconds
MBA
Classification of Scale
• Depending upon number of items in the
scale
• Single item Scale
• Multiple item scale
MBA
Single item Scale
• Only one item to measure the construct
• Satisfaction with current job
• There are many other aspects of job

• Pay,work environment,rules & regulation,security of
job,communication with seniors
MBA
Multiple item Scale
• There are many items that play a role in
framing the underlying construct the
researcher is trying to measure
MBA
A Classification of Scaling Techniques
Scaling Techniques
Comparative Noncomparative
Scales Scales
Paired Rank Constant Q-Sort and Continuous Itemized

Comparison Order Sum Other Rating Scales Rating Scales
Procedures
Semantic Stapel
Likert
Differential
MBA
Comparative Scales
• Direct comparisons of stimulus objects
with one another
• Whether you prefer Coke Or Pepsi?
• Comparative scale data must be
interpretated in relative terms and have
only ordinal or rank order properties
MBA
Paired Comparison Scaling
• In which a respondent is presented with
two objects at a time and asked to select
one object in the pair according to some
criterion
MBA
Obtaining Shampoo Preferences Using Paired
Comparisons
Instructions: We are going to present you with ten pairs of

shampoo brands. For each pair, please indicate which one of the two
brands of shampoo you would prefer for personal use.
Recording Form:
Sunsilk Pantene Dove Chik Clinic Plus
Sunsilk 0 0 1 0
Pantene 1a 0 1 0
Dove 1 1 1 1
Chik 0 0 0 0
Clinic Plus 1 1 0 1
Number of Times 3 2 0 4 1
Preferred b
aA 1 in a particular box means that the brand in that column was
preferred over the brand in the corresponding row. A 0 means that the
row brand was preferred over the column brand. bThe number of times
a brand was preferred is obtained by summing the 1s in each column.
MBA
Comparative Scaling Techniques
Rank Order Scaling
• Respondents are presented with several objects
simultaneously and asked to order or rank them
according to some criterion.
• Furthermore, rank order scaling also results in
ordinal data.
MBA
Preference for Toothpaste Brands
Using Rank Order Scaling
Instructions: Rank the various brands of toothpaste in

order of preference. Begin by picking out the one brand
that you like most and assign it a number 1. Then find the
second most preferred brand and assign it a number 2.
Continue this procedure until you have ranked all the
brands of toothpaste in order of preference. The least
preferred brand should be assigned a rank of 07.
No two brands should receive the same rank number.
The criterion of preference is entirely up to you. There is

no right or wrong answer. Just try to be consistent.
MBA
Preference for Toothpaste Brands
Using Rank Order Scaling
Form
Brand Rank Order
1. Meswak _________
2. Colgate _________
3. Babul _______
4. Vicco _________
5. Sensodyne _________
6. Close Up _________
7. Pepsodent _________
MBA
Rank order Scaling
• Respondents presented with
several objects simultaneously
•Asked to rank according to
criterion
•Preference
•If none of the drink is liked
•Forced to rank
•Ranked 1 should be treated as
least disliked
•Used to measure preference of
brands or attributes
MBA
Comparative Scaling Techniques
Constant Sum Scaling
• Respondents allocate a constant sum of units, such as

100 points to attributes of a product to reflect their
importance.
• If an attribute is unimportant, the respondent assigns it
zero points.
• If an attribute is twice as important as some other
attribute, it receives twice as many points.
• The sum of all the points is 100. Hence, the name of
the scale.
MBA
Importance of Bathing Soap Attributes
Using a Constant Sum Scale
Form
Average Responses of Three Segments
Attribute Segment I Segment II Segment III
1. Mildness 8 2 4
2. Lather 2 4 17
3. Shrinkage 3 9 7
4. Price 53 17 9
5. Fragrance 9 0 19
6. Packaging 7 5 9
7. Moisturizing 5 3 20
8. Cleaning Power 13 60 15
Sum 100 100 100
MBA
Constant Sum Rating
Respondents are asked to
allocate a total points of 100
Distribution of points in the
order of preference
MBA
Q Sort Technique
• Discriminate among a large number of
objects quickly
• A rank order procedure is used in which
objects are sorted into different piles
based on similarity with respect to
certain criterion
MBA
Noncomparative Scaling Techniques
• Respondents evaluate only one object at a

time, and for this reason non-comparative
scales are often referred to as monadic scales.
• Non-comparative techniques consist of

continuous and itemized rating scales.
MBA
Continuous (Graphic)
Rating Scale
Respondent is asked to tick the
preference on the graph
Preference towards Fast food
One has to measure distance
from extreme left
Limitation if put to make tick
mark again may change
Coding Tabulation of data is
tidious
Differences in two response

would be negligible
Smiling Face Scale

Pointing the face that best shows
your attitude & taste
MBA
Itemized Rating Scales
• The respondents are provided with a scale that has a
number or brief description associated with each
category.
• The categories are ordered in terms of scale position,

and the respondents are required to select the specified
category that best describes the object being rated.
• The commonly used itemized rating scales are the Likert,

semantic differential, and Stapel scales.
MBA
Likert Scale
Multiple item agree-

disagree five point
scale
Respondents are
asked to express
degree of
agreement/Disagreem
ent
Summated Score
Scores of individual
items can be added to
produce a total score of
respondent
Use of likert scale to
measure the image of
the company
1,2,4,6,9 Favorable
Statement
3,5,7,10- Unfavorable Dr Ashish R Jaswal,SCOE-Department of
MBA
Semantic Differential
Scale
Respondent is required to rate
each attitude or object by number
of 5 or 7 point rating scale
The scale is bounded at each
end by a bipolar adjectives or
phrases
Problem is creating bipolar
adjectives
MBA
Stapel Scale
Uses only single adjective

Used to measure direction &
intensity of Attitude
The scale generally has 10
categories involving numbering -
5 to +5without a neutral point
Presented in vertical form
Positive higher number
describes it more favorably
Quality of Food & quality of
Service for restaurant to be
evaluated
MBA
Basic Noncomparative Scales
Scale Basic Examples Advantages Disadvantages
Characteristics
Continuous Place a mark on a Reaction to Easy to construct Scoring can be

Rating continuous line TV cumbersome
Scale commercials unless
computerized
Itemized Rating Scales
Likert Scale Degrees of Measurement Easy to construct, More

agreement on a 1 of attitudes administer, and time-consuming
(strongly disagree) understand
to 5 (strongly agree)
scale
Semantic Seven- point scale Brand, Versatile Controversy as

Differential with bipolar labels product, and to whether the
company data are interval
images
Stapel Unipolar ten- point Measurement Easy to construct, Confusing and

Scale scale, - 5 to +5, of attitudes administer over difficult to apply
without a neutral and images telephone
point (zero)
MBA
Rating Scale Configurations
Rin detergent is:

1) Very harsh --- --- --- --- --- --- --- Very gentle
2) Very harsh 1 2 3 4 5 6 7 Very gentle
3) . Very harsh
. Cheer
.
. Neither harsh nor gentle
.
.
. Very gentle
4) ____ ____ ____ ____ ____ ____ ____
Very Harsh Somewhat Neither harsh Somewhat Gentle Very
harsh harsh nor gentle gentle gentle
5) -3 -2 -1 0 +1 +2 +3
Very Neither harsh Very

harsh nor gentle gentle
MBA
Some Commonly Used Scales in Marketing
CONSTRUCT SCALE DESCRIPTORS

Attitude Very Bad Bad Neither Bad Nor Good Good Very Good
Importance Not at All Important Not Important Neutral Important Very Important
Satisfaction Very Dissatisfied Dissatisfied Neither Dissat. Nor Satisfied Satisfied Very Satisfied
Purchase Intent Definitely will Not Buy Probably Will Not Buy Might or Might Not Buy Probably Will Buy Definitely Will Buy
Purchase Freq Never Rarely Sometimes Often Very Often

• RELAIBILITY ,VALIDITY
Criteria For Good Measurement
• RELAIBILITY ,VALIDITY & SENSITIVITY
• Reliability: Consistency, Accuracy &
Predictability of Scale
• Validity: Whether we are measuring what
we want to measure
• Sensitivity : Ability to accurately measure
the variability
MBA
Reliability
• Two methods
• Test retest Reliability
• Split Half Reliability method
MBA
Test retest Reliability
• Repeated measurements of the same
person or group using the same scale
under similar conditions are taken
• A very high correlation between the two
scores- Reliable
– Appropriate time differences between two
observations
– (2-3 Weeks)- Same answer-make the instrument
reliable –which may not be the case
– (1 Year)- Poor Reliability
– (5-6 months) ideal
MBA
Split Half Reliability Method
• Number of items is randomly divided
and Correlation coefficient between two
is obtained
• High Correlation leads to greater
reliability (internal consistency)
• Coefficient alpha or Cronbach Alpha
MBA
Values of Alpha & Its Interpretation
MBA
• Validity
MBA
The concept of Validity
• Validity is the ability of an instrument to measure what it is
intended to measure.
• Degree to which the researcher has measured what he has set out
to measure (Smith, 1991)
• Are we measuring what we think we are measuring? (Kerlinger,
1973)
MBA
Why validity ?
• Validity is done mainly to answer the following
questions:
– Is the research investigation providing answers to the
research questions for which it was undertaken?
– If so, is it providing these answers using appropriate methods
and procedures?
MBA
Questions to ponder
Investigator
Readers of report
Experts in the field
Logic
Statistical tests
MBA
Logical thinking
• Justification of each question in relation to objective of

study
• Easy if questions relate to tangible matters
• Difficult in situations where we are measuring attitude,

effectiveness of a program, satisfaction etc
• Everybody‘s logic doesn‘t match . . No statistical

backing
MBA
Statistical procedures
• By calculating coefficient of correlations
between questions and outcome
variables
MBA
Types Of Validity
Validity
Content Criterion Construct

validity related validity
Face validity Concurrent Predictive

MBA
CONTENT VALIDITY
 Uses logical reasoning and hence easy to apply
 Extent to which a measuring instrument covers a

representative sample of the domain of the aspects
measured
 Whether items and questions cover the full range of

the issues or problem being measured
MBA
FACE VALIDITY
 The extent to which a measuring instrument appears
valid on its surface
 Each question or item on the research instrument must
have a logical link with the objective
MBA
Face validity is not content
validity. Why?
• Face validity
– Simply addresses whether a measuring instrument
looks valid
– Not a validity in technical sense because it does not

refer to what is actually being measured rather
what it appears to measure
MBA
CRITERION VALIDITY
• The extent to which a measuring instrument

accurately predicts behaviour or ability in a given
area.
• The measuring instrument is called ‗criteria‘
• It is of two types:
– Predictive validity
– Concurrent validity
MBA
Predictive Validity
• If the test is used to predict future performance
• Eg: Entrance exam . . . . Performance of these tests
correlates with later performance in professional
college
• Eg:Written driving test
MBA
Concurrent Validity
• If the test is used to estimate present performance or
person‘s ability at the present time not attempting to
predict future outcomes
• Professional college exam
• Eg: driving test, pilot test
MBA
Problems in criterion validity
 Cannot be used in all circumstances
 Esp in social sciences where some conditions do not

have a relevant criteria
 Eg: for measuring self-esteem, no criteria can be

applied
MBA
CONSTRUCT VALIDITY
• Most important type of validity
• Assesses the extent to which a measuring instrument

accurately measures a theoretical construct it is
designed to measure
• Measured by correlating performance on the test with

performance on a test for which construct validity has
been determined
MBA
Summary of Validity
CONTENT CRITERION CONSTRUCT
CONCURRENT PREDICTIVE
What it Whether the test The ability of The ability of the The extent to
measures covers a the test to test to predict which the
representative estimate future instrument
sample of the present performance measures a
domains to be performance theoretical
measured construct
How it is Ask experts to Correlate Correlate Correlate
accomplished assess the test to performance on performance on performance on
establish that the the test with a the test with a the instrument
items are concurrent behaviour in with a
representative of behaviour future performance on
the outcome an established
instrument
MBA
Validity
• Methods of measuring Validity
• Content Validity
• Concurrent Validity
• Predictive Validity
MBA
Content Validity
• Face Validity
• Assessing appropriateness of the
construct
• Subjective judgment –check
representativeness
• List of items measuring perception needs
to be analyzed
MBA
Concurrent Validity
• Measure the validity of the new
measuring techniques by correlating
them with established technique
• Perception /Image
MBA
Predictive Validity
• CAT Score for admission to MBA
programme
• Predicts candidates aptitude for studies
towards business Education
• Ability of measured phenomenon at one
point of time to predict another
phenomenon at a future point of time
MBA
ADVERTISING RESEARCH
MBA
• Advertising research is a specialized
form of marketing research conducted
to improve the efficiency of advertising
• Advertising research is the systematic
gathering and analysis of information to
help develop or evaluate advertising
strategies, ads and commercials, and
media campaigns.
• A subset of marketing research.
MBA
“Advertising research may focus on a specific
ad or campaign, or may be directed at a
more general understanding of how
advertising works or how consumers use the
information in advertising.
It can entail a variety of research approaches,
including psychological, sociological,
economic, and other perspectives.”
MBA
Types of Advertising Research
Customized
Customized research is conducted for a specific client to address that
client’s needs. Only that client has access to the results of the research.
Syndicated
Syndicated research is a single research study conducted by a research
company with its results available, for sale, to multiple companies.
MBA
Method of Advertising Research
Pre-market research
Can be conducted to optimize ads for any medium optimize advertisement for
any medium: radio, television, print (magazine, newspaper or direct mail),
outdoor billboard (highway, bus, or train), or Internet.
Post-market research
Conducted after the advertising, either a single ad or an entire multimedia
campaign has been run in-market. The focus is on what the advertising has
done for the brand, for example increasing brand awareness, trial, frequency of
purchasing.
MBA
Pre testing or Copy Testing
Evaluation of alternative ways for advertisers to
present their messages.
“Copy” refers to an entire advertisement, including

the verbal message, pictures, colors, and
dramatizations, whether the advertisement appears
in print, on radio or television, or some other medium.
MBA
Copy Testing
• Consumer Jury.
• Rating Scales.
• Portfolio Tests.
• Psychological Tests.
• Physiological Tests.
• Sales Tests.
• Day-after recall Tests.
MBA
Consumer Jury:
 Oldest & simplest test.
 Personal interview may be used or a group may be
assembled & asked to vote on an alternative based on their
preferences, interests, or influences to buy the product .
 Provides a “rating” given by a group of consumers who
may represent potential buyers of the product.
 Assumption: The respondent must like at least one
advertisement.
MBA
Rating Scales:
Requires the establishment of standards for effective copy
and numerical weights for each standard.
Ads are then “rated” in accordance with the scale values and
a numerical score is obtained.
Advantage:
Provides a list against which to check an ad & helps to single
out the elements that are good or bad.
Disadvantages:
Different judges will rate the ad differently.
MBA
Portfolio Tests:
Sometimes the ad is placed in dummy copies
of newspapers or magazines.
A group of ads, usually a mixture of test ads and
control ads, is placed in a portfolio.
MBA
Physiological Tests:
Tests are obtained using special laboratory
equipments which record an individuals
physiological responses to ads.
MBA
Psychological Tests:
A list of reactions like self pity, security, fear or

nostalgia is set up.
Alternative ads are then rated on how readers
respond w.r.t. those reactions.
A no. of techniques including word association,
sentence completion, depth interview & story
telling are adopted.
Difficult to implement, since skilled interviewers are
required
MBA
Sales tests
Sales tests are a useful measure of advertising
effectiveness when advertising is the dominant
element, or the only variable, in the company's
marketing plan.
Sales response may not be immediate and sales
tests, particularly field studies, are often costly
and time-consuming.
MBA
Day-after recall Tests:
Research method that tests consumers‘
memories the day after they have seen an
ad, to assess the ad's effectiveness.
MBA
Post-testing
•Including brand awareness, brand preference,
product usage and attitudes.
MBA
Media Research
Definitions:
Molly Erdman
Media research is a survey or series of surveys, which
provide media consumption information (i.e., which radio,
television and new programs, and magazines an individual
or household watches, reads or listens to) for a given
population.
MBA
Readership Survey
• The Indian Readership Survey (IRS) is the largest
continuous readership research study in the world
with an annual sample size exceeding 2.56 lakh
(256,000) respondents.
• IRS covers information on over 100 product
categories.
• IRS is conducted by MRUC (Media Research Users
Council) and RSCI (Readership Studies Council of
India).
MBA
What is National Readership Survey?
• The NRS is a survey on all media, but
especially the print medium, conducted by the
National Readership Survey Council.
• This body consists of members from the INS
(Indian Newspaper Society),
• AAAI (Advertising Associations of India) and
ABC (Audit Bureau of Circulation).
MBA
What is the audience covered by the
NRS?
• The survey is done on an all-India basis, urban
as well as rural, amongst individuals who are
12 years and older.
• All town classes are covered in the urban area.
• However, only towns with a population higher
than two lakh are reported on an individual
basis
MBA
What is the type of data one gets from
NRS?
• Reach of each medium among various
audiences defined demographically.
• For publications, one gets the number of
readers, type of readers in demographic terms
(NRS defines readers by sex, age, income,
socio-economic class, occupation, education,
geographical location), spread of these
readers, and lifestyle parameters such as
product ownership and consumption patterns.
MBA
Mystery Shopping
• The use of individuals trained/briefed to experience
and measure compliance or any customer service
process, by acting as potential customers / actual
customers and in some way reporting back on their
experiences in a detailed and objective way.
• Mystery Shopping is above all a tool to assess the
quality of service, organisation and management,
rather than a market research technique.
MBA
Mystery Shopping
• Central Bank of India has embarked on a
"mystery shopping" exercise with focus on
customer retention and (customer)
satisfaction.
MBA
Mystery Shopping
• Mystery shopping in India is a fledgling $30-
million market with its leading patrons being
organised retail, automotive, banking and
hospitality industries.
• About 20% audits done by banks are focused
exclusively on monitoring anti-money
laundering (ALM).
MBA
Brand Research
• About Creating differentiation in the minds of
the customer
• Why customer Choose to purchase those new
products
MBA
When to conduct Brand Research
• New Company- New Brand
• Brand Extension
• Merging company- Brand Architecture- two
brands too retain their current customer &
attract New customer
MBA
Retail Survey
Retail Survey:
• To ascertain customer opinions and uncover potential
leads.
• Measure industry and market trends, helping to serve as a
platform for the development of new products and
services.
• Judging the satisfaction and interest levels of a potential
new product or service before development.
• Understanding likes and dislikes, thereby increasing
retention.
MBA
Unit 3
Course Code:305MKT
MBA
Describe Test Marketing & its Various forms.
Suggest test marketing for a company to Launch
a new snack market
Unit No 3
MBA
MBA
Test Marketing
• An application of a controlled experiment done
in limited, but carefully selected test market.
 It involves replication of the planned national
marketing programme for a product in test
market
 Test Market-A carefully selected part of the
market place that is particularly suitable for test
marketing
 Objectives
To determine market acceptance of the product
To test alternative levels of marketing mix variable
MBA
Advantages of Test Marketing
• Data provided is from actual customer
spending
• Reduces the risk of a full-scale launch – if
the product fails a test then significant
costs may be saved
• Provides a way to twist the marketing mix
before full launch
• Can create a promotional "noise" which
supports the main launch
MBA
Disadvantages of Test Marketing
• Danger of the competition learning about the product

and coming up with a response before the full launch
• Test market may not be representative of the full target
market, leading to inappropriate decisions
• Delays in full launch may limit the revenue opportunity
in markets subject to rapid change
• Costly and time-consuming to administer
MBA
Classification
1. Standard Test Market
2. Controlled & mini market
3. Simulated Test Market
MBA
Standard Test Market
• A test market in which the product is sold
through the regular distribution channels
• Constitutes one shot case study
• Criteria for Selecting Test Market
• How many test Markets to use
• Duration of the test market
MBA
Criteria for the Selection of Test
Markets
1) Be large enough to produce meaningful projections. They
should contain at least 2% of the potential actual population.
2) Be representative demographically.
3) Be representative with respect to product consumption behavior.
4) Be representative with respect to media usage.
5) Be representative with respect to competition.
6) Be relatively isolated in terms of media and physical distribution.
7) Have normal historical development in the product class
8) Have marketing research and auditing services available
9) Not be over-tested
MBA
How many test Markets to use
• Two test Market if resources are limited
• Four test Market
MBA
Duration of the test market
• Depends upon
1. Repurchase cycle
2.Probability of competitive response
3. Cost
MBA
Controlled Test Market
• A test marketing program conducted by
an outside research company in field
experimentation
• The research company guarantees
distribution of the product in retail outlet
that represents a predetermined
percentage of the market
MBA
Simulated Test market
• A quasi test market in which respondents are
preselected:then they are interviewed and
observed on their purchases and attitudes
towards the product
• The selected are exposed to new product
concept & given an opportunity to purchase
• On purchasing evaluation of the product,repeat
purchase intention
MBA
Selecting a Test-Marketing Strategy
Competition
Very +ve New Product Development -ve

Other Factors Research on Existing Products
Socio-Cultural Environment
Need for Secrecy

Research on other Elements
Stop and Reevaluate

Very +ve -ve
Simulated Test Marketing
Other Factors
Very +ve -ve
Controlled Test Marketing
Other Factors
-ve
Standard Test Marketing
National Introduction
Overall Marketing Strategy

MBA
Examples
• Danone test marketed its dahi and
flavoured yoghurts in parts of Maharashtra
and Pune and its Choco Plus milk (a
chocolate smoothie) in Hyderabad.
• HUL test marketed its fabric conditioner
'Comfort' in Tamil Nadu, then across South
India prior to a national launch
• Hindustan Lever's Lipton Iced Tea, Kinley,
Coca-Cola's Sunfill, Johnson's Nizarol anti-
dandruff shampoo-Hyderabad
MBA
Examples
• Pureit sachets -Bhopal, Madhya Pradesh,
where it is distributing free
MBA
Unit 4
Course Code:305MKT
MBA
Factor Analysis
MBA
Factor Analysis
• Multivariate Data Reduction technique

• There is no distinction between
dependant & independent variables
• Reducing large number of variables
results in complexity
• Leads to few Manageable Factors
MBA
Factor Analysis
• A factor is a linear combination of

variables
• It is construct not directly observable
• Needs to be inferred from the input

variables
MBA
Factor Analysis
• The variables for factor analysis are

gathered through exploratory research
• Focus Group Research, unstructured
interview with Knowledeagable people,
literature survey and analysis of case
study
MBA
Conditions for a FA Exercise
• Requires Metric data-interval or ratio scale
in nature
• All responses obtained through different
scales should be standardized
• Size of the sample respondents should be 4-
5 times more than number of statements
• Initial set of variables should be highly
correlated (Check correlation coefficient)
MBA
Steps in Factor Analysis
• Formulate the problem
• Construct the correlation Matrix
• Determine the methods of Factor Analysis
• Determine the number of factors
• Rotate the Factors
• Interpret the Factors
• Determine the model fit
MBA
Establishing The Strength Of Factor Analysis
• Essential to establish the reliability &

validity of obtained reduction
• Testing the appropriateness of the factor
model
• Bartlett‘s Test Of Sphericity
• Kaiser Meyer Olkin(KMO)
MBA
Bartlett‘s Test Of Sphericity
• Variables should be highly correlated
• Significance of Correlation matrix can be
conduced by BTS
• Testing for the significance of the correlation
matrix of variables
• P value corresponding to chi square
• P value .000 which is less than .05
• Rejection of Hypothesis that the correlation
matrix of the variables is insignificant
MBA
Kaiser Meyer Olkin(KMO)
• Measure of sampling adequacy
• Sampling size =80
• Variables =7
• Sample size should be 5 times the
variables
• KMO should be greater than .500
• If fulfilled factor analysis can be used
MBA
Establishing the strength of factor analysis
MBA
Establishing the strength of
factor analysis
• KMO> .5
• Bartletts test of sphericity
• Testing for the significance of the
correlation matrix of variables
• P value corresponding to chi square
• P value .000 which is less than .05
• Rejection of Hypothesis that the
correlation matrix of the variables is
insignificantDr Ashish R Jaswal,SCOE-Department of
MBA
Component Score Coefficient Matrix
MBA
• To decide how many factors are to be
extracted from the given set of data
• Principal component method is used
• First factor is extracted in such a way that
it explains the larger portion of total
variance
MBA
Factor Loading And Computation of Eigen Value
• Factor loading : The correlation coefficient between the

factor score and the variables included in the study
MBA
Computation of Eigen Value
• Total variance explained by each factor
MBA
Total Variances Explained
MBA
Communality
Indicates how much each variable is accounted for by the underlying

factors taken together
The communality for the first variable is .598 which means 59.8 percent
of variance or information content of first variable ,namely risk
averseness is explained byDrtwo factors
Ashish R Jaswal,SCOE-Department of
MBA
Rotated Component Matrix
MBA
Chi Square
MBA
Chi Square Test of
Interdependence
MBA
Contingency Table
Second First Classification Categories
Classification
of Category
1 1(1,1) 2(1,2) 3(1,3) R1
2 R2
3 R3
Total C1 C2 C3 N
MBA
T Test
MBA
Conjoint Analysis
MBA
Conjoint Analysis
• Technique for predicting how the
product created and designed by the
organization performs when taken to the
market.
• Understanding how people make choice
between product/service or combination
of product/services so that organization
can design new product /services that
best meet customers underlying needs
MBA
Applications in Marketing
• Determining the relative importance of attributes in
the consumer choice process
• Estimating market share of the brands that differ in
attribute levels
• Determine the composition of the most preferred
brand
• Segmenting the market based on similarity of
preferences for attribute levels
• Conjoint analysis is used in areas of New
product/concept identification, competitive analysis,
pricing ,market segmentation ,Advertising &
distribution.
MBA
Steps in conjoint Analysis
Formulate The Problem
Pair Wise Approach/Full Profile Approach

Construct The Stimuli
Metric Data-Rank Order /Non Metric Data-Rating

Decide On The Form Of Input Data
Select A Conjoint Analysis Procedure
Interpret The Results
Assessing Reliability & Validity
MBA
To purchase a smart phone
Colour RAM Technology
Option-I Black 2GB Dual Core
Option-II Red 3GB Quadra Core
MBA
Attribute Level
Colour Black Red
RAM 2GB 3GB
Technology Dual Core Quadra Core
MBA
Values Assumed by the attributes
Value Value
Level assig Level assig
Attribute ned ned
Colour Black -1 Red 1
RAM 2GB -1 3GB 1
Technology Quadra Core -1 Dual Core 1
Number of combination
possible=2*2*2( Number of levels).
MBA
Conjoint Attributes Conjoint Matrix
Sr.No Ranking
Colour RAM Technology Xc XRAM Xtech
1 Black 2GB Quadra Core -1 -1 -1 8
2 Red 2GB Quadra Core 1 -1 -1 7
3 Black 3GB Quadra Core -1 1 -1 6
4 Red 3GB Quadra Core 1 1 -1 5
5 Black 2GB Dual Core -1 -1 1 4

6 Red 2GB Dual Core 1 -1 1 3
7 Black 3GB Dual Core -1 1 1 2

8 Red 3GB Dual Core 1 1 1 1
MBA
Mathematical Model
m ki
U(X )  
i 1
 x
j 1
ij ij
where
U(X) = overall utility of an alternative
= the part-worth contribution or utility associated with the j th level (j, j = 1, 2, i)of the i th attribute
(i, i = 1, 2, . . . m)
xjj= 1 if the j th level of the i th attribute is present= 0 otherwise
ki= number of levels of attribute i
m= number of attributes
MBA
Unit 5
Course Code:305MKT
MBA
Cluster Analysis
What is cluster analysis? Discuss its

application for analysis of
Psychographic and life style
segmentation
MBA
MBA
Used to classify objects or cases into relatively homogeneous groups
Objects in each cluster tend to be similar to each other
Best Classification Technique

Dissimilar to objects in other clusters
MBA
Reducing to smaller or more Homogeneous group
• SOTC Travelling Company

• Vijay-Tour Packages to exotic Location Like Egypt
• Problem- July /August – Ramzaan- Abstinence
• Mr Gupta his Boss –Sift through database to find
out –exciting offers
• Pleasant/special incentives/
• Age group/occupations/group members/time of
travel/place & mode of Payment
MBA
Psyco-graphic Segmentation
Personality Trait
lifestyle
Interest
Attitudes
Values
Use of Psychology & Demography to better understand customer

MBA
• CAR
• ORGANIC FOOD
• CRUISE
• Traditional Vs Modern
• Blackberry
• Harley Davidson Owners
MBA
Role of Psychographic
Segmentation by Lipton
SR.n VALS Attributes Product Offering
o Segment
1 Innovators Succesful, Sophasticated,Image Summer Peach(Tea &
Honey
Most Receptive to new ideas Ice Tea Lemonade
2 Thinkers Conservative, practical,look for Pure green Tea
durability, functinality & Value of Lipton Natural Agency
the product
3 Achievers Self Motivated by the desire for Lipton Fresh Brewed
achievement, favours Ice Tea
established Prestige product, Lipton Spiced
respect Authority Cinnamon tea
4 Experiences Young Enthusiastic &impulsive Lipton Refresh k Cup
consumers- seek variety & Pack
excitement Tropical Mango Ice
Dr Ashish R Jaswal,SCOE-Department of Tea Mix
MBA
Role of Psychographic
Segmentation by Lipton
SR.n VALS Attributes Product Offering
o Segment
5 Believers Motivated by Ideas and are Lipton Herbal Tea
conservative
Concrete belief Ice Tea Lemonade
6 Strivers Trendy Fun Loving Motivated by Peach Mango White
achievement Tea
Favour Stylish Products but
lacks finance
7 Makers Prefer value to luxury Lipton Pure Green Tea
8 survivors Cautious Consumers, loyal to Lipton Black Tea
favourite brand if they can
purchase at discount
MBA
Application of Cluster Analysis
MBA
MBA
Application of Conjoint Analysis
• Market Segmentation
• Segmenting Industries /Sector- Grouping
Blocks having common traits
• Easier for Policy Makers evaluating &
framing Policy
• Segmenting Financial Sectors/Instruments
– Investment Behavior & Benefit
• Career Planning & training analysis
– Educational
Qualification/Experience/Aptitude/Aspiration
MBA
What is MDS. Discuss approaches to MDS &
Perceptual Mapping
MBA
Magazines Dimension- Dimension-II
I(coverage) (credibility)
Frontline -1.03 -0.80
Society -0.85 -0.85
India Today 1.44 1.39
Outlook 0.32 0.49
Business World -0.27 0.59
Open 1.93 -0.66
Investor -1.28 -0.52
Business India -0.71 1.25
Ife & Time 0.45 -1.35
MBA
1.5
DIMENSION-II(CREDIBILITY)
0.5
-0.5
-1
-1.5
-2 0 2
DIMENSION-I(COVERAGE)
MBA
MBA
MDS
• It is a class of procedure for representing
perceptions and preferences of
respondents spatially by means of visual
display
• The geometric representation is called as
spatial maps
• The axes of the spatial map are assumed to
denote the psychological bases
• Form perception and preferences for
stimuli
MBA
Why Used in Marketing
To identify
1.The number & nature of dimensions use
to perceive different brands in market
place.
2.The positioning of current brands on the
selected dimensions
3.The positioning of consumers ideal
brand on the selected dimensions
MBA
Marketing Applications
• Image Measurement: By comparing the customers, non
costumers & firms perception of itself would help to identify
the perceptual gap.
• Market segmentation: Positioning brands and consumers
in the same space would help in grouping of consumers in
Homogeneous group
• New product development: The gap in the spatial map
which indicates potential opportunities for new product
• Assessing advertising effectiveness: Spatial maps can be
used to study the effectiveness of the advertising in
achieving the desired brand positioning
• Pricing analysis: Spatial map can be used to determine
the effect on pricing.
Dr Ashish R Jaswal,SCOE-
Department of MBA
Steps in conducting MDS
Formulate the problem
Obtain Input data
Select an MDS procedure
Decide on Number of dimensions
Assess Reliability & Validity

MBA
Step no :1 Formulate the
problem
• Specify the purpose for which the MDS
results would be used
• Select the brands to be included in the
analysis.
• At a minimum eight brands
• To obtain a well defined spatial map.
Dr Ashish R Jaswal,SCOE-Department
of MBA
Step no :2 Obtain Input data
• Input data is obtained from the
respondents related to perceptions or
preferences.
• Perception data is either of Direct
(similarity) Approach or Derived
(Attribute Rating) approach
of MBA
Perception Data Direct
Approach
Very Very
Dissimilar similar
Pairs 1 2 3 4 5 6 7
Colgate Vs Aquafresh
Sensodyne Vs
Pepsodent
The number of pairs to be evaluated is n(n-1)/2
of MBA
Perception Data Derived
Approach
Does not
Whitens teeth Whitens
teeth
Do Not
Prevents tooth
Prevents
decay
tooth decay
Unpleasant
Pleasing Taste
taste
of MBA
Step no :3 Select An MDS
Procedure
• Nature of input data & whether the
analysis will be done at an individual
respondent level or at an aggregate
level.
• MDS procedure could be either Non
Metric MDS or Metric MDS.
• The metric & Non metric data produce
the same results
Department of MBA
Step no :4 Decide on number of
Dimensions
• Prior Knowledge- Theory or past research
may suggest number of dimensions
• Interpretability of the spatial map: It is
difficult to interpret maps derived in more
than three dimensions
• Elbow Criterion: A plot of stress versus
dimensionality used in MDS. The point at
which an elbow or sharp bends occurs
indicates an appropriate number of
dimensions.
Department of MBA
MBA
Step no :5 Assess Reliability & Validity
Stress(%) Goodness of Fit

20 Poor
10 Fair
5 good
2.5 Excellent
0 Perfect
This is a lack of Fit Measure. Higher Value

Indicates poorer fit
of MBA
Perceptual Mapping
MBA
• Perceptual mapping is a graphic display
explaining the perceptions of customers with
relation to product characteristics.
MBA
Perceptual maps
• “Perceptual maps measure the way products
are positioned in the minds of consumers and
show these perceptions on a graph whose
axes are formed by product
attributes.” (Kardes, Cronley, & Cline, 2011).
• “A perceptual map represents customer
perceptions and preferences spatially by
means of a visual display” (Ferrell & Hartline,
2008).
MBA
Benefits of Perceptual Maps
Reason Benefits of Perceptual Maps
Check reality To see how the target consumers actually perceive the various
offerings and positions
Impact of campaigns To measure/track the impact of recent marketing campaigns and

any other marketing mix changes
Monitor new products To identify how well any new products have been positioned into
the market
Monitor competition To monitor the impact of various competitive offerings over time
Look for gaps To assist the company identify market gap, as an input into the new
product development process
Understand segments To provide information that will help further understand different
market segments
Track preference changes To track any changes in consumer preferences (and other
environmentalMBA factors) over time
Limitations of Perceptual Maps
• Perceptual maps often simplify the consumer‘s
purchase decision down to two product
attributes
• They tend to be more beneficial for low-
involvement purchase decisions
• They are more relevant for individual brands,
and less helpful for corporate brand image
• The data is often difficult or expensive to obtain
(via marketing research)
• There is a often difference between consumer‘s
perception of the brand‘s benefits versus reality
MBA
DISCRIMINANT ANALYSIS
• CONCEPT- 03M
• OBJECTIVE-02
• APPLICATION-05
of MBA
Concept
Mr.Ghosh –owner of Restaurant –Rasoi
20 Years
Rasoi- Indian & Chinese
3 Years Back- New Restaurant
Clientage of Rasoi started decline sharply
Possible Reasons
Variables that differentiate
Relative importance of variables in
discriminating between the choice
MBA
Concept
• A technique for analyzing Marketing
Research Data when the criterion(Variable
to be Predicted) or dependant variable is
categorical(nominal) and predictor (is
a variable that is being manipulated in an
experiment in order to observe the effect
on a dependent variable) or the
independent Variable are interval in nature
• Predict Group Membership
of MBA
Objectives
1. To find a linear combination of variables that
discriminate between categories of dependant
variables in best possible manner
2. To find out which independent variables are relatively
better in discriminating between groups
3. To determine the statistical significance of the
discriminant function and whether any statistical
difference exist among groups in terms of predictor
variable
4. To evaluate the accuracy of classification,i.e the
percentage of customers that it is able to classify
correctly
of MBA
Application
1. Scale Construction
– Identify Variables that are discriminating and on which
people with diverse views will respond differently
2.Segment Discrimination
Helps understand what are the key variables on which
two or more groups differ from each other
a. What are the demographic Variables on which
potentially successful salesman & potentially
unsucessfull sales man differ?
b. What are the variables on which users/non Users of the
product can be differentiated
c. What are the variables on which buyers of
local/national brand of product be differentiated
MBA
Application
3. Perceptual Mapping
– Attribute based spatial map can be created
– Help to determine what attribute is the USP of
which Brand
MBA
MBA

305 MKT COntemporary Marketing Research DR Ashish R Jaswal MBA-II (Sem-III)

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305 MKT COntemporary Marketing Research DR Ashish R Jaswal MBA-II (Sem-III)

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• Course :Contemporary Marketing Research

Research is an Objective and

Data Analysis and Interpretation

 Methodology is Systematic Way of

Research is an Objective and

• It is required and applicable to all areas of

• Marketing research is of both types i.e.

The Importance of Marketing Research to

• Tests different decision alternatives such as new

• Evaluation of performance of programs

Information Suppliers: Information Suppliers:

 Main Divisions of Marketing Research

– Information only as good as the

• As per the report, in 2015, Indians will buy 118 million

Rather, the goal of data analysis is to PROVIDE

Once that was done, I found that much of

Indigo Airlines, as other major airlines, had

Discussion Interviews Secondary Qualitative

Understand the Background problem by analyzing Environmental Context of the Problem

Step I: Problem Definition

Facilitates Management Decision Problem

Translated to Marketing Research Problem

Step II: Approach to the Problem is developed

Analytical Model: Specification

Step III: Research

Discussions with Decision Makers

Interviews with Industry Experts

Secondary Data Analysis

Needs to understand the capabilities & limitations

Provides information but cannot provide solutions

Understand what decision manager face

comprehensive Examination of a marketing problem to

Vague idea of the

Inside & outside the Firm(Why)

Helps formulate Market Research

Data collected for some purpose

Data made available by Business &

Economical & Quick source of

Based on small sample

Discussion Interviews Secondary Qualitative

Understand the Background problem by analyzing Environmental Context of the Problem

Step I: Problem Definition

Facilitates Management Decision Problem

Translated to Marketing Research Problem

Step II: Approach to the Problem is developed

Analytical Model: Specification

Step III: Research

Action oriented. Information Oriented.

Should a New product To determine the consumer

To determine the price

Discussion Interviews Secondary Qualitative

Understand the Background problem by analyzing Environmental Context of the Problem

Step I: Problem Definition

Facilitates Management Decision Problem

Translated to Marketing Research Problem

Step II: Approach to the Problem is developed

Analytical Model: Specification

Step III: Research

• In the process of developing an approach, we must

Evidence-unbiased Conceptual scheme

Conducting The Marketing

Define the Information Needed

Design the Exploratory, Descriptive, and/or