Observation

Presentation and collation by Prof Amruta Vadnerkar

 Mechanical observation Human Observations
 Store scanners and store cameras  Observation and recording done by
human observers.
 Media panel audit use Audio meter and
people meter  The investigator is considered to be like
a ‘fly on the wall’,
 Psychogalvanometer to measure GSR
(Galvanic Skin Response)  There has to be absolutely no
contribution in any way to the situation
 Oculometers, eye cameras or eye view
being observed.
minuters
 Pupilometers
 Voice pitch meters
 People Meter

Presentation and collation by Prof Amruta Vadnerkar

 Observation
Content Analysis Ex Trace Analysis-
Personal post Facto (previous Mechanical
Audit leftovers of
Observation recording/ consumer basket Observation
communication)

Disguised ( no privacy): Pupilometer

One way mirror, hidden
camera, recorder
Eye tracking
monitors
Undisguised:
CCTV surveillance On- site cameras
• Participating
• Non participating Optical scanners in
Naturalistic : Behaviour supermarket
in canteen

Voice pitch
Simulated/ Artificial analysers
environment: Tolerance (modulator- pitch)
level for Army

Presentation and collation by Prof Amruta Vadnerkar

 Observations
Intro, Background, Observations, Qualitative interpretations, Conclusion

 Wellness Medical store  Shivneri Bus Stand- Dadar

 Dadar Railway station  Food court in a mall
 Vegetable market  Supermarket
 Chheda stores – Matunga  McDonald’s
 Big Bazaar/ D Mart  Shivaji Park, Dadar (W)

Presentation and collation by Prof Amruta Vadnerkar

 Observations- Neuro

Presentation and collation by Prof Amruta Vadnerkar Frontal, Parietal, Temporal, Occipital lobes
 Psychogalvanometer

Eye Trackers

Pupilometer

Presentation and collation by Prof Amruta Vadnerkar

Presentation and collation by Prof Amruta Vadnerkar
 Survey-
A quick, less expensive, efficient and accurate means of assessing information about a population

Effective Survey Used in

 Clear  Consumer Satisfaction
 Complete  Complaint identification and monitoring
 Easy to understand  Development of preferred product features
 Easy to process  Segmenting customer base
 Analysable  Measure willingness to pay for a product
 Timely  Customer retention
 Loyalty program planning
 Profile evaluation of customer
 Advertising effectiveness measurement
 Interest areas of viewers and readership
 Acquisition of customers
Presentation and collation by Prof Amruta Vadnerkar
 Survey
A structured questionnaire given to a sample of population and designed to elicit specific
information from respondents

Survey
Methods

Telephone Personal Mail Electronic

Traditional Interview Mall Mail

In Home CAPI Mail Panel Email Internet
phone (CATI) Intercept Interview

Presentation and collation by Prof Amruta Vadnerkar

 Relative advantages of Observation

 They permit measurement of actual behaviour rather than

reports of intended or preferred behaviour
 There is no reporting bias or potential bias caused by the
interviewer as the interviewing process is eliminated or reduced
 Some types of data can be collected only by observation
 If the observed phenomenon occurs frequently or is of short
duration, the method can be cheaper and faster than a survey
method

Presentation and collation by Prof Amruta Vadnerkar

 Research Errors
Total Error

Random Sampling Non Sampling Imperfect aspects of Research

Error (Systematic) Error Design and Mistakes in
Research execution

Difference between true Response Error Non Response Error

mean of population and
true mean of original
sample Researcher Respondent Interviewer

Respondent
Surrogate Info Inability
Selection

Measurement Unwillingness Questioning

Population
Response Bias Recording
Definition
1. Deliberate
2. Unconscious
Sampling Frame Cheating
• Acquiescence bias
• Extremity bias
Data Processing and • Interviewer bias
Analysis • Social Desirability bias
Presentation and collation by Prof Amruta Vadnerkar
 Measurement

 Assigning numbers or other symbols to characteristics of objects

according to certain prespecified rules

 Measurement of variables is a necessary requirement

 Abstract concepts- employee morale, job satisfaction, customer

satisfaction

Presentation and collation by Prof Amruta Vadnerkar

 Scaling- Primary scales of measurement
 Scale is a continuous spectrum or series of categories
 A series of items that can be arranged progressively according to value or
magnitude into which an item can be placed according to its quantification

 Nominal Scale- Identify

 Ordinal Scale- Rank/ Order- Psychiatric assessment
 Interval Scale- Intervals/ Order- No of centuries
 Ratio Scale- with absolute zero point- categorical data- Weight

Presentation and collation by Prof Amruta Vadnerkar

 Scaling Techniques
Comparative (Non Non Comparative
Metric) (Metric)

Paired comparison Continuous Rating Scale

Itemised Rating Scale

Rank Order • Likert

• Semantic Differential
(Quality- No Quality)
Constant Sum
• Stapel

Q- sort

Presentation and collation by Prof Amruta Vadnerkar

 Scaling Techniques
Comparative (Non Metric) Non Comparative (Metric)

Paired comparison Continuous Rating Scale

Rank Order Itemised Rating Scale

Constant Sum • Likert

Q- sort • Semantic Differential

(Quality- No Quality)
Dichotomous
• Stapel
Category

Numerical

Graphic rating

Consensus
Presentation and collation by Prof Amruta Vadnerkar
 Questionnaire Design

Clearly Have Avoid

 What  Counter biasing statements
 How  Leading and Loaded Questions
 Sequence  Split ballot technique

 Layout  Ambiguity
 Pretesting and revisions  Double Barrelled questions
 Assumptions
 Ambiguity
 Burdensome questions

Presentation and collation by Prof Amruta Vadnerkar

 Causal Research (Explanatory)

 Obtain evidence of Cause and Effect Relationship

 Independent variable- Cause- Antecedent
 Dependent variable- Effect- Consequence
 Moderating and Mediating variables affect the relationship/ interaction between
independent and dependent variable
 Ex Post Facto- empirical enquiry for the situations that have already occurred
 Experimental research- study of causal relationship among variables by controlling
different variables
 Examples- Pricing research, Virtual reality Vs advertising industry, Impact of packaging on
Sales, Decoy Effect, Impact of sponsorship etc

Presentation and collation by Prof Amruta Vadnerkar

 Experiments

Complete
No Randomly assign randomisation- Basic
randomisation
Presentation and collation by Prof Amruta Vadnerkar
test units not possible experiments-
 Reliability Validity

Reliability refers to the degree of reproducibility of Validity refers to a situation when a test or
the results if the measurement is repeated. instrument is accurately measuring what it’s
supposed to.

A reliable instrument is not valid A valid instrument is always reliable

Reliability has no role to play while evaluating a Validity is important while evaluating the multi-
multi-item scale. item scale.

Assessing reliability is easy Assessing validity is a difficult task

Reliability concentrates on precision, which Validity checks whether the scale produces the
measures the extent to which a scale produces a expected result.
consistent outcome.

Presentation and collation by Prof Amruta Vadnerkar

 Validity is the expected outcome of a research, whereas reliability is the
consistent outcome that the research produces.

Reliability is the probability that an asset will perform its intended function
under given or stated conditions for a specified period of time

• Reliability is a must have to have validity. Lower the reliability, lower the validity.
Validity automatically implies reliability
• Validity implies that something is able to meet a stated requirement
Presentation and collation by Prof Amruta Vadnerkar
 Reliability
Consistency, Accuracy, Predictability of a scale- Free from random errors

 Test Retest Reliability

 Repeated measurement of the same person or group using the same scale under
similar condition is taken
 Optimum time difference in the 2 questions
 Split Half Reliability
 Multiple item scale randomly divided into 2 parts to find correlation
 Coefficient α (Cronbach α): average score of all possible split half reliabilities for a
multiple item scale
 Does not address validity, but some researchers use it as a sole indicator of Validity
 α= 0 No consistency between various items of the multiple item scale
 α= 1 Complete consistency
 α >= 0.9 Excellent reliability
 0.8 <= α < 0.9 Good reliability
 0.7 <= α < 0.8 Acceptable
 0.6 <= α < 0.7 Questionable
 α < 0.6 Poor reliability- Unacceptable
Presentation and collation by Prof Amruta Vadnerkar
 Validity
Are we measuring what we are supposed to be measuring
Measurement process is free from Systematic and Random errors

 Content Validity/ Face Validity

 Multiple Item Scale for a perception of a company
 A set of items- cover all possible items
 Exploratory research to form an exhaustive list of items
 Concurrent Validity
 Measures validity of a new measuring technique by correlating them with established techniques
 Predictive Validity
 Ability of a measured phenomena at one point of time to predict another phenomenon at a
future point of time
 CAT scores predict a candidate’s aptitude for Business studies

Presentation and collation by Prof Amruta Vadnerkar

 Sensitivity

 Changes in attitudes
 Instrument’s ability to accurately measure the variability in a concept
 Likert scale instead of a dichotomous question
 Add questions or items
 Composite measures allow for a greater range of possible scores, hence more sensitive than a
single scale

Presentation and collation by Prof Amruta Vadnerkar

 Population Sampling Frame
Sample Census
Sampling Unit

Sampling Error Non Sampling Error

SOME CONCEPTS

Presentation and collation by Prof Amruta Vadnerkar

 Sampling Design

Probability Sampling Design Non Probability Sampling Design

Simple random sampling Convenience Sampling

Judgemental (Purposive)
Systematic Sampling
Sampling

Stratified Random Sampling Snowball Sampling

Cluster Sampling Quota Sampling

Presentation and collation by Prof Amruta Vadnerkar

 Ethics in Marketing Research
 Who is doing the research?
 Where are you from?
 Why are you doing the research?
 Who is the supervisor?
 How were they selected to participate?
 What do participants need to do and how long will this take?
 Is there a potential for them to be harmed (or will there be any disadvantage if they don’t
participate)
 Whether their confidentiality/ anonymity will be protected
 What happens to the data or any report?
 How will they be informed of the results?

Presentation and collation by Prof Amruta Vadnerkar

 Correlation-
degree of Relationship between 2 categorical variables-
Unitless, standardised
 Covariance measures the extent to which X (IV) and Y (DV) co vary
 Correlation is measured by coefficient of correlation (-1< r<1) and indicates nature and
strength of the relationship (+ve or –ve and how much)
 A correlation greater than 0.8 is generally described as strong, whereas a correlation less
than 0.5 is generally described as weak
 Examples-
 Monthly earnings of a household (IV) and monthly expenses on entertainment (DV)
 When price of a commodity (IV) increases, the demand (DV) for it reduces

Presentation and collation by Prof Amruta Vadnerkar

Presentation and collation by Prof Amruta Vadnerkar
 Linear Regression-
- Relation of the DV to IV is assumed to be a linear function
- estimate Y (DV), given the values of x (IV)
 Correlation indicates a relationship between the two variables, but cannot forecast or
predict values or evaluate impact for which Regression is used
 Y = b + mX;
X Independent variable b Intercept
 Examples
Y Dependent variable m Slope
 predict the sale of products in the future based on past buying behaviour
 predict the amount of crop yield based on the amount of rainfall received.
 Economists use Linear Regression to predict the economic growth of a country or
state.
 Sports analyst use linear regression to predict the number of runs or goals a player
would score in the coming matches based on previous performances.
 An organisation calculates how much they would pay to a new joinee basis the years of
experience.
 A builder can predict how many houses it would sell in the coming months and at what
price.
 Petroleum prices can be predicted.
Presentation and collation by Prof Amruta Vadnerkar
 Find the slope

Find the y-intercept

On y axis, line passes through 40

Write the equation in y=mx+b

y = -0.5 x + 40

Estimate what percent of adults smoked in 1997

y = -0.5 x + 40
x= 30, 1967+30= 1997
y= 25

Presentation and collation by Prof Amruta Vadnerkar

Regression 2015- 1

Presentation and collation by Prof Amruta Vadnerkar

Regression 2015- 2

Presentation and collation by Prof Amruta Vadnerkar

 Factor analysis
Dimension reduction into Super variables

 Examines interrelationships among a

large number of variables and attempts to
explain them in terms of their common
underlying dimensions (FACTORS)
 Interdependence Technique- No DV and
IV- No causal
 All variables are considered
simultaneously
 Simplifies complex data sets with many
variables
 Easier explanation of lesser factors than
all variables
 Output can be used as IV or DV later on
Principal Component Analysis
(PCA)
Exploratory FA
Presentation and collation by Prof Amruta Vadnerkar
Confirmatory FA
 Used in various areas regardless of purpose

 Interval scale- metric variables  Variables must be related

 Determination of small number of factors  Unrelated variables are factors
basis particular number of inter related
 Matrix must have sufficient number of
quantitative variables
correlations
 Speed, Weight, Height
 Homogenous sample
 Concepts/ entity/ Construct not measurable:
 Sample size: Min 50, preferably 100
Creativity, Egoism, Happiness, Comfort
derived from other observable variable  Min 5 observations per item, preferably 10

Presentation and collation by Prof Amruta Vadnerkar

 Exploratory Factor Analysis
 Scientific data reduction
 Virtually similar items
 Objective: Simplification of items into
subset of concepts or measures
 Construct validity: Underlying patterns in
the data
 Assesses homogeneity and Dimensionality
Issues:
 How many factors, rotation
 PCA (principal component analysis):
Considers total variance and derives
factors containing little variance
 Common factor analysis (Spearman’s):
considers only common variance
(principal axis factoring in SPSS)
 Similar results if no of variables are >30.

CONFIRMATORY FACTOR ANALYSIS:

• Test the data for a priori expectations for data structure
• SEM (structural equation modelling
Presentation and collation by Prof Amruta Vadnerkar
Factor 2015- 1
1

Presentation and collation by Prof Amruta Vadnerkar

Factor 2015- 1
2

Presentation and collation by Prof Amruta Vadnerkar

 Cluster analysis

Create clusters out of a large pool of respondents

Presentation and collation by Prof Amruta Vadnerkar

 Applications and uses
 Psychiatry: Cluster of symptoms
 Biology- Genes having same function-
roots to cluster analysis
 Information retrieval- query on google-
sub-clusters (www)
 Climate- patterns in atmosphere and
ocean- atmospheric pressure- similar
climatic conditions
 Market and Sales Segmentation- grouping
people with purchasing power, willingness
to buy, authority to buy etc, which
customers buy what product
 Credit risk, Operations, Insurance, City
planning, geographical
 Behavioural state, genetic
taxonomy
Presentation and collation by Prof Amruta Vadnerkar
 Data Reduction- large number of
observations classified into manageable
groups
 Hypothesis Generation- hypothesis
regarding nature of data or examine
previously stated hypothesis
 Credit risk, Insurance
 Operations
 Geographical/ City-planning basis house
type, value, geographical location etc
 Insurance providers use cluster analysis to
detect fraudulent claims, and banks use it
for credit scoring.
study,
 Dendogram

Objectives
 Taxonomy description- groups within the data
 Clustering- even a baby can do
 Data simplification- analyse groups with similar observations- not individual
 Relationship identification- simplified relationship between variables
 Define structure of data (outliers)
 How to form clusters?
 How many clusters should be formed?
 How to measure similarity? Degree of correspondence among objects across all the
characteristics used in the analysis- set of rules serving as criteria for grouping or
separating items

Presentation and collation by Prof Amruta Vadnerkar

 Outputs- Dendogram

Presentation and collation by Prof Amruta Vadnerkar

 Discriminant analysis
 Statistical tool to assess the adequacy of a
classification, given the group memberships;
or to assign objects to one group among a
number of groups.
 For any kind of Discriminant Analysis, some
group assignments should be known
beforehand.
 Criterion/ dependent variable: categorical
(Continuous)
 Predictor/ independent variable: interval

Presentation and collation by Prof Amruta Vadnerkar

 Discriminant analysis

Presentation and collation by Prof Amruta Vadnerkar

 Applications in business
 Discriminant analysis is most often used to help a researcher predict the group or category to
which a subject belongs.
 Useful to understand differences and factors leading to consumers to make different choices
allowing them to develop marketing strategies which take into account the role of predictors
 Examples
 Customer loyalty
 Shopper profile and Segmentation
 Determinants of purchase and non purchase
 Hiring for a job- characteristics like high performer, average performer and low performer- employee
background, education, participation
 estimating coefficients, or weighting factors, that can be applied to the known characteristics of job
candidates (i.e., the independent variables) to calculate some measure of their tendency or propensity to
become high performers. This measure is called a "discriminant function.“
 this information can then be used to develop a decision rule that specifies some cut-off value for
predicting which job candidates are likely to become high performers.
 Whether to offer insurance or loan- sincere, fake, defaulters

Presentation and collation by Prof Amruta Vadnerkar

 Conjoint Analysis

 Conjoint analysis is the optimal market research approach for measuring the value that
consumers place on features of a product or service.
 This commonly used approach combines real-life scenarios and statistical techniques with the
modelling of actual market decisions.
 Menu-based conjoint analysis is an analysis technique that is fast gaining momentum in the
marketing world. One reason is that menu-based conjoint analysis allows each respondent to
package their own product or service.

Presentation and collation by Prof Amruta Vadnerkar

 Conjoint Analysis

 Choose product attributes/ factors (Size,

Price, Model)
 Choose values/ options for each attribute
 Define products as a combination of
attribute options
 A value of relative utility is assigned to
each level of an attribute called part-
worth utilities
 Combination with the highest utilities
should be the most preferred one (Partial
utility values together)

Presentation and collation by Prof Amruta Vadnerkar

 Real life situations

 In real life situations, consumers rarely make choices based on a single variable like resolution
 Consumers examine a range of features or attributes and then make judgments or trade-offs to
determine their final purchase choice
 Conjoint analysis examines these trade-offs to determine the combination of attributes that will
be most satisfying to the consumer

Presentation and collation by Prof Amruta Vadnerkar

 Conjoint Analysis

Presentation and collation by Prof Amruta Vadnerkar

 Multi- dimensional scaling
 Multidimensional Scaling (MDS) is a class of procedures for representing perceptions and
preferences of respondents spatially by means of visual display.
 Perceived or psychological relationships among stimuli are represented as geometric
relationships among points in a multi dimensional space
 Allows researchers to find and explore underlying themes, or dimensions, in order to
explain similarities or dissimilarities (i.e. distances) between investigated datasets.
 These geometrical representations are often called spatial/ perceptual maps.
 Axes of the spatial map are assumed to denote the psychological bases or underlying
dimensions respondents use to form perceptions or preferences for stimuli.
 Image measurement
 New product development
 Gaps analysis
 Pricing analysis
 Channel decisions
 Assess advertising effectiveness
 Attitude scale construction
Presentation and collation by Prof Amruta Vadnerkar
 Quality Vs Price of various brands- Perceptual mapping

25

BRAND 1

20

BRAND 2
15
PRICE

BRAND 4

10

5
BRAND 3

0
0 2 4 6 8 10 12 14 16 18 20
QUALITY
Presentation and collation by Prof Amruta Vadnerkar Size of the bubble: Market share
 Uses of MDS

 The number and nature of dimensions

consumers use to perceive different brands
in the marketplace
 Positioning of different brands on various
dimensions

Presentation and collation by Prof Amruta Vadnerkar

Presentation and collation by Prof Amruta Vadnerkar
 Uses

 Brand Image measurement

 Market segmentation
 New product development
 Assessing advertising effectiveness
 Pricing analysis
 Channel decisions

Presentation and collation by Prof Amruta Vadnerkar