MARKETING RESEARCH

PREFINAL PERIOD

Quantitative Market Research VS Qualitative Market Research

Quantitative Marketing Research is the application of quantitative research techniques

to the field of marketing. It has roots in both the positivist view of the world, and the
modern marketing viewpoint that marketing is an interactive process in which both the
buyer and seller reach a satisfying agreement on the "four Ps" of marketing: Product, Price,
Place (location) and Promotion.
As a social research method, it typically involves the construction of questionnaires and
scales. People who respond (respondents) are asked to complete the survey. Marketers use
the information to obtain and understand the needs of individuals in the marketplace, and
to create strategies and marketing plans.

Data Collection
The most popular quantitative marketing research method is a survey. Surveys typically
contain a combination of structured questions and open questions. Survey participants
respond to the same set of questions, which allows the researcher to easily compare
responses by different types of respondent. Surveys can be distributed in one of four ways:
telephone, mail, in-person and online (whether by mobile or desktop).
Another quantitative research method is to conduct experiments into how individuals
respond to different situations or scenarios. One example of this is A/B testing of a piece of
marketing communications, such as a website landing page. Website visitors are shown
different versions of the landing page, and marketers track which is more effective.

Typical General Procedure

Simply put, there are five major and important steps involved in the research process:
 Defining the problem
 Research design
 Data collection
 Data analysis
 Report writing and presentation
A brief discussion on these steps is:
 Problem audit and problem definition - What is the problem? What are the various
aspects of the problem? What information is needed?
 Conceptualization and operationalization - How exactly do we define the concepts
involved? How do we translate these concepts into observable and measurable
behaviors?
 Hypothesis specification - What claim(s) do we want to test?
 Research design specification - What type of methodology to use? - examples:
questionnaire, survey
 Question specification - What questions to ask? In what order?
 Scale specification - How will preferences be rated?
 Sampling design specification - What is the total population? What sample size is
necessary for this population? What sampling method to use?- examples: Probability
Sampling:- (cluster sampling, stratified sampling, simple random sampling, multistage
sampling, systematic sampling) & Nonprobability sampling:- (Convenience Sampling,
Judgement Sampling, Purposive Sampling, Quota Sampling, Snowball Sampling, etc. )
 Data collection - Use mail, telephone, internet, mall intercepts
 Codification and re-specification - Make adjustments to the raw data so it is compatible
with statistical techniques and with the objectives of the research - examples: assigning
numbers, consistency checks, substitutions, deletions, weighting, dummy variables,
scale transformations, scale standardization
 Statistical analysis - Perform various descriptive and inferential techniques (see below)
on the raw data. Make inferences from the sample to the whole population. Test the
results for statistical significance.
 Interpret and integrate findings - What do the results mean? What conclusions can be
drawn? How do these findings relate to similar research?
 Write the research report - Report usually has headings such as: 1) executive
summary; 2) objectives; 3) methodology; 4) main findings; 5) detailed charts and
diagrams. Present the report to the client in a 10-minute presentation. Be prepared for
questions.
The design step may involve a pilot study in order to discover any hidden issues. The
codification and analysis steps are typically performed by computer, using statistical
software. The data collection steps, can in some instances be automated, but often require
significant manpower to undertake. Interpretation is a skill mastered only by experience.
Statistical Analysis
The data acquired for quantitative marketing research can be analyzed by almost any of the
range of techniques of statistical analysis, which can be broadly divided into descriptive
statistics and statistical inference. An important set of techniques is that related to
statistical surveys. In any instance, an appropriate type of statistical analysis should take
account of the various types of error that may arise, as outlined below.

Reliability and Validity

Research should be tested for reliability, generalizability, and validity.
Generalizability is the ability to make inferences from a sample to the population.
Reliability is the extent to which a measure will produce consistent results.
Test-retest reliability checks how similar the results are if the research is repeated under
similar circumstances. Stability over repeated measures is assessed with the Pearson
coefficient.
Alternative forms reliability checks how similar the results are if the research is repeated
using different forms.
Internal consistency reliability checks how well the individual measures included in the
research are converted into a composite measure. Internal consistency may be assessed by
correlating performance on two halves of a test (split-half reliability). The value of the
Pearson product-moment correlation coefficient is adjusted with the Spearman–Brown
prediction formula to correspond to the correlation between two full-length tests. A
commonly used measure is Cronbach's α, which is equivalent to the mean of all possible
split-half coefficients. Reliability may be improved by increasing the sample size.
Validity asks whether the research measured what it intended to.
Content validation (also called face validity) checks how well the content of the research
are related to the variables to be studied; it seeks to answer whether the research
questions are representative of the variables being researched. It is a demonstration that
the items of a test are drawn from the domain being measured.
Criterion validation checks how meaningful the research criteria are relative to other
possible criteria. When the criterion is collected later the goal is to establish predictive
validity.
Construct validation checks what underlying construct is being measured. There are three
variants of construct validity: convergent validity (how well the research relates to other
measures of the same construct), discriminant validity (how poorly the research relates to
measures of opposing constructs), and nomological validity (how well the research relates
to other variables as required by theory).
Internal validation, used primarily in experimental research designs, checks the relation
between the dependent and independent variables (i.e. Did the experimental manipulation
of the independent variable actually cause the observed results?)
External validation checks whether the experimental results can be generalized.
Validity implies reliability: A valid measure must be reliable. Reliability does not
necessarily imply validity, however: A reliable measure does not imply that it is valid.

Types of Errors
Random Sampling Errors:
 sample too small
 sample not representative
 inappropriate sampling method used
 random errors

Research Design Errors:

 bias introduced
 measurement error
 data analysis error
 sampling frame error
 population definition error
 scaling error
 question construction error

Interviewer Errors:
 recording errors
 cheating errors
 questioning errors
 respondent selection error

Respondent Errors:
 non-response error
 inability error
 falsification error

Hypothesis Errors:
 type I error (also called alpha error)
the study results lead to the rejection of the null hypothesis even though it is actually true
 type II error (also called beta error)
the study results lead to the acceptance (non-rejection) of the null hypothesis even though
it is actually false
Qualitative Marketing Research involves a natural or observational examination of the
philosophies that govern consumer behavior. The direction and framework of the research
is often revised as new information is gained, allowing the researcher to evaluate issues
and subjects in an in-depth manner. The quality of the research produced is heavily
dependent on the skills of the researcher and is influenced by researcher bias.

Data Collection
Qualitative marketing researchers collect data ranging from focus group, case study,
participation observation, innovation game and individual depth interview.

Focus Group
The focus group is marketing research technique for qualitative data that involves a small
group of people (6–10) that share a common set characteristics (demographics, attitudes,
etc.) and participate in a discussion of predetermined topics led by a moderator. There are
opportunities to conduct focus groups with the use of focus group software. There are
many types of focus group as well, but they always involve discussion among the group(s).
The problem of the focus group is the issue of observer dependency: the results obtained
are influenced by the researcher or his own reading of the group's discussion, raising
questions of validity. Non-verbal cues, which may contradict the views participants
articulate, are important and can easily be missed if the researcher is not familiar with
visual cues, body language and other non verbal cues.

Qualitative Case Study

Qualitative case study methodology provides tools for researchers to study complex
phenomena within their contexts. Because it only studies one case, so it is very up-close, in-
depth. It contains high levels of internal validity (the extent to which one is able to say that
no other variables except the one being studied caused the result), but the external validity
is low. Customer behavior is a good example for qualitative market research.

Participation Observation
Participation observation is watching participants' behavior in real world settings without
trying to manipulate their actions. This method is high in external validity but low in
internal validity.
Innovation Game
Innovation game refers to a form of primary market research developed by Luke Hohmann
where customers play a set of directed games as a means of generating feedback about a
product or service. A facilitator explains the game(s) to be played and controls the paces,
monitors the participants' levels and manages the time. There are many types of innovation
games, such as 20/20 vision, me and my shadow, and buy a feature.

Individual Depth Interviews

In-depth interviews, also called IDIs, have been an integral component of market research
since its inception in the 1920s. This method is useful when you want detailed information
about a person’s thoughts and behaviors or want to explore new issues in depth. One can
get unique points from each respondent, and their answers will not be influenced by other
people as in a focus group. In-depth interviews are held one-on-one between the
respondent and the interview via a telephone, conducted in person, or through an online
platform (increasingly common).
The primary advantage of in-depth interviews is the amount of detailed information
provided as compared to other data collection methods, such as surveys. Another
advantage is reaching respondents that are geographically dispersed, which cannot occur
in a focus group. This method is often used to refine future research or provide context to
future studies. The primary disadvantage of in-depth interviews is the time to conduct,
transcribe, and analyze. As such, this method could have higher costs associated with it
than other methods.

Uses
Qualitative market research is often part of survey methodology, including telephone
surveys and consumer satisfaction surveys. We apply the qualitative market research
when:
 New product idea generation and development
 Investigating current or potential product/service/brand positioning and marketing
strategy
 Strengths and weaknesses of products/brands
 Understanding dynamics of purchase decision dynamics
 Studying reactions to advertising and public relations campaigns, other marketing
communications, graphic identity/branding, package design, etc.
 Exploring market segments, such as demographic and customer groups
 Assessing the usability of websites or other interactive products or services
 Understanding perceptions of a company, brand, category and product

Typical General Procedure

 Setting the question
 Deciding the objectives
 Planning research design
 Select data collection techniques
 Sample design
 Data collection
 Analysis
 Do the report

Advantages
 More detailed and in-depth questions
 Reduced cost, since the scale of this kind of research is small
 Discovering the "why" behind certain behaviors
 Quick turnaround: the direction of the research can be changed easily

Disadvantages
 Issues on confidentiality and anonymity can pose problems during presentation of
findings.
 If researcher does not have enough skills such as communication skill, the quality of
research is likely to be low.
 The sample size is relatively small, the result may not be very accurate.
 Qualitative research produces large amounts of data which requires a tremendous
amount of work and labor on the part of the researcher.
VS. Quantitative Marketing Research

Objective
Qualitative research is usually aimed to have an inside look about opinions or motivations,
while quantitative research uses data to simplify the result.

Sample
Qualitative research usually has a smaller sample size than quantitative research due to the
complexity of its data.

Data Collection
Qualitative research usually uses unstructured or semi-structured techniques to collect
data, e.g. individual depth interviews or group discussions, while quantitative research only
uses structured techniques such as online questionnaires, on-street or telephone
interviews.

Outcome
The outcomes of qualitative marketing research are usually conclusive and cannot be used
to make generalizations about the population of interest, instead developing an initial
understanding and sound base for further decision making. The findings of quantitative
marketing research are conclusive and usually descriptive in nature.

Data Analysis

Coding
Coding is an interpretive technique that both organizes the data and provides a means to
introduce the interpretations of it into certain quantitative methods.

Cross Tabulation
Cross tabulation divides raw data into subgroups, showing how each dependent variable
changes when represented in each subgroup. This is typically the most used data analysis
tool due to its ability to clarify how data variables relate to each other.