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Chapter 10 - Preparing Data for Quantitative Analysis

Chapter 10
Preparing Data for Quantitative Analysis

Learning Objectives (PPT slide 10-2)

1. Describe the process for data preparation and analysis.

2. Discuss validation, editing, and coding of survey data.
3. Explain data entry procedures and how to detect errors.
4. Describe data tabulation and analysis approaches.

Key Terms and Concepts

1. Coding
2. Cross-tabulation
3. Curbstoning
4. Data entry
5. Data validation
6. Editing
7. One-way tabulation
8. Tabulation

Chapter Summary by Learning Objectives

Describe the process for data preparation and analysis.

The value of marketing research is its ability to provide accurate decision-making information to
the user. To accomplish this, the data must be converted into usable information or knowledge.
After collecting data through the appropriate method, the task becomes one of ensuring the data
provide meaning and value. Data preparation is the first part of the process of transforming data
into useful knowledge. This process involves several steps: (1) data validation; (2) editing and
coding; (3) data entry; (4) error detection; and (5) data tabulation. Data analysis follows data
preparation and facilitates proper interpretation of the findings.

Discuss validation, editing, and coding of survey data.

Data validation attempts to determine whether surveys, interviews, or observations were

conducted correctly and are free from fraud. In recontacting selected respondents, the researcher

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Chapter 10 - Preparing Data for Quantitative Analysis

asks whether the interview (1) was falsified; (2) was conducted with a qualified respondent; (3)
took place in the proper procedural setting; (4) was completed correctly and accurately; and (5)
was accomplished in a courteous manner. The editing process involves scanning of interviews or
questionnaire responses to determine whether the proper questions were asked, the answers were
recorded according to the instructions given, and the screening questions were executed properly,
as well as whether open-ended questions were recorded accurately. Once edited, the
questionnaires are coded by assigning numerical values to all responses. Coding is the process of
providing numeric labels to the data so they can be entered into a computer for subsequent
statistical analysis.

Explain data entry procedures and how to detect errors.

There are several methods for entering coded data into a computer. First is the PC keyboard.
Data also can be entered through terminals having touch-screen capabilities, or through the use
of a handheld electronic pointer or light pen. Finally, data can be entered through a scanner using
optical character recognition. Data entry errors can be detected through the use of error edit
routines in the data entry software. Another approach is to visually scan the actual data after it
has been entered.

Describe data tabulation and analysis approaches.

Two common forms of data tabulation are used in marketing research. A one-way tabulation
indicates the number of respondents who gave each possible answer to each question on a
questionnaire. Cross-tabulation provides categorization of respondents by treating two or more
variables simultaneously. Categorization is based on the number of respondents who have
responded to two or more consecutive questions.

Chapter Outline

Opening Vignette: Scanner Data Improves Understanding of Purchase Behavior

The opening vignette in this chapter describes Walmart’s use of scanners. With the information
supplied by the scanners, Walmart knows what is there, what is selling, and what needs
replenishment. The same scanners can scan customer cards so the customer is associated with his
or her purchase in a central database. This only requires a second or two per transaction and for
the customer to produce the card at purchase time. Scanner technology is used by the marketing
research industry. Questionnaire can be prepared and printed on a laser printer. Respondents can
complete the questionnaire with any type of writing instrument and with the appropriate software
and scanning device, the researcher can scan the completed questionnaires. The data are checked
for errors, categorized, and stored within a matter of seconds.

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Chapter 10 - Preparing Data for Quantitative Analysis

I. Value of Preparing Data for Analysis (PPT slides 10-3 and 10-4)

Converting information from surveys or other data sources so it can be used in statistical analysis
is referred to as data preparation. The data preparation process typically follows a four-step
approach (PPT slide 10-3).
 Data validation
 Editing and coding
 Data entry
 Data tabulation

Data preparation is essential in converting raw data into usable coded data for data analysis. But
data preparation also plays an important role in assessing and controlling data integrity and
ensuring data quality by detecting potential response and nonresponse biases created by
interviewer errors and/or respondent errors, as well as possible coding and data entry errors. Data
preparation also is important in dealing with inconsistent data from different sources or in
converting data in multiple formats to a single format that can be analyzed with statistical
software.

With traditional data collection methods, the data preparation process starts after the interviews,
questionnaires, or observation forms have been completed and returned to the field supervisor or
researcher. But new technology associated with online surveys and data collection methods
involving handheld terminals or scanners enables researchers to complete some data preparation
tasks in real time and also eliminate data collection errors. In fact, technology advances are
reducing and sometimes eliminating the need to manually code, verify, and enter data when
creating electronic files.

The stages of data preparation and analysis are shown in Exhibit 10.1 (PPT slides 10-4). Some
data collection methods require activities in all stages while other methods involve only limited
data preparation.

II. Validation (PPT slide 10-5 and 10-6)

The purpose of validation is to determine if surveys, interviews, and observations were

conducted correctly and free of bias, and if data from other sources is accurate and consistent.
When data collection involves trained interviewers obtaining data from respondents, the
emphasis in validation most often is on interviewer errors, or failure to follow instructions. If
data collection involves online surveys, validation often involves checking to see if instructions
were correctly followed.

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Chapter 10 - Preparing Data for Quantitative Analysis

In marketing research, interviewers submitting false data for surveys are referred to as
curbstoning. As the name implies, curbstoning is when interviewers find an out-of-the-way
location, such as a curbstone, and fill out the survey themselves rather than follow procedures
with an actual respondent. Because of the potential for such falsification, data validation is an
important step when the data acquisition process involves interviewers.

To minimize fraudulent responses, marketing researchers target between 10 percent and 30

percent of completed interviews for “callbacks.” Specifically for telephone, mail, and personal
interviews, a certain percentage of respondents from the completed interviews are recontacted by
the research firm to make sure the interview was conducted correctly. Generally, the process of
validation covers five areas (PPT slide 10-6).
 Fraud: Was the person actually interviewed, or was the interview falsified? Did the
interviewer contact the respondent simply to get a name and address, and then proceed to
fabricate responses? Did the interviewer use a friend to obtain the necessary information?
 Screening: Data collection often must be conducted only with qualified respondents. To
ensure accuracy of the data collected, respondents are screened according to some
preselected criteria, such as household income level, recent purchase of a specific product
or brand, brand or service awareness, gender, or age.
 Procedure: In many marketing research projects data must be collected according to a
specific procedure. For example, customer exit interviews typically must occur in a
designated place as the respondent leaves a certain retail establishment.
 Completeness: In order to speed through the data collection process, an interviewer may
ask the respondent only a few of the questions. To determine if the interview is valid, the
researcher could recontact a sample of respondents and ask about questions from different
parts of the questionnaire. Another problem could arise if the data collection process
incorporates “skip” questions to direct interviewers (or respondents) to different parts of
the questionnaire. With some data collection approaches the research supervisor can
recontact respondents and verify their response to skip questions.
 Courtesy: Respondents should be treated with courtesy and respect during the interviewing
process. To ensure a positive image, respondent callbacks are common to determine
whether the interviewer was courteous.

III. Editing and Coding (PPT slides 10-7 to 10-9)

Following validation, the data must be edited for mistakes. Editing is the process where the raw
data are checked for mistakes made by either the interviewer or the respondent. By reviewing
completed interviews from primary research, the researcher can check several areas of concern
(PPT slide 10-7).
 Asking the proper questions
 Accurate recording of answers

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Chapter 10 - Preparing Data for Quantitative Analysis

 Correct screening of respondents

 Complete and accurate recording of open-ended questions

A. Asking the Proper Questions (PPT slide 10-7)

One aspect of the editing process especially important to interviewing methods is to make
certain the proper questions were asked of the respondent. As part of the editing process, the
researcher will check to make sure all respondents were asked the proper questions. In cases
where they were not, respondents are recontacted to obtain a response to omitted questions.
This task is not necessary with online surveys if they were designed and set up correctly.

B. Accurate Recording of Answers (PPT slide 10-7)

Completed questionnaires sometimes have missing information. The interviewer may have
accidentally skipped a question or not recorded it in the proper location. With a careful check
of all questionnaires, these problems can be identified. In such cases, if it is possible,
respondents are recontacted and the omitted responses recorded. This task is not necessary
with online surveys if they were designed to prevent respondents from skipping questions.

Sometimes a respondent will accidentally not complete one or more questions for various
reasons (carelessness, in a hurry to complete the survey, not understanding how to answer the
question, etc.), resulting an incomplete response.

C. Correct Screening Questions (PPT slide 10-7)

The first two questions on the Santa Fe Grill employee questionnaire shown in Exhibit 10.2
are actually screening questions that determine whether the respondent is eligible to complete
the survey. During the editing phase, the researcher makes certain only qualified respondents
were included in a survey. It is also critical in the editing process to establish that the
questions were asked and (for self-administered surveys) answered in the proper sequence. If
the proper sequence is not followed in self-completion surveys, the respondent must be
recontacted to verify the accuracy of the recorded data.

Increasingly surveys are completed online. When online surveys are used respondents are
automatically asked the screening questions and are not allowed to continue if the questions
are not correctly answered.

D. Responses to Open-Ended Questions (PPT slide 10-7)

Responses to open-ended questions often provide very meaningful data. Open-ended

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Chapter 10 - Preparing Data for Quantitative Analysis

questions may provide greater insight into the research questions than forced-choice
questions. A major part of editing the answers to open-ended questions is interpretation.
Exhibit 10.3 shows some typical responses to an open-ended question and thus points to
problems associated with interpreting these questions.

Coding is necessary in online surveys if they have open-ended questions. As with traditional
data collection methods, the responses must be reviewed, themes and common words and
patterns must be identified, and then codes must be assigned to facilitate quantitative data
analysis.

E. The Coding Process (PPT slides 10-8 and 10-9)

Coding involves grouping and assigning values to various responses from the survey
instrument (PPT slide 10-8). Typically, the codes are numerical—a number from 0 to 9—
because numbers are quick and easy to input, and computers work better with numbers than
alphanumerical values. Like editing, coding can be tedious if certain issues are not addressed
prior to collecting the data. A well-planned and constructed questionnaire can reduce the
amount of time spent on coding and increase the accuracy of the process if it is incorporated
into the design of the questionnaire.

Open-ended questions pose unique problems to the coding process. An exact list of potential
responses cannot be prepared ahead of time for open-ended questions. Thus, a coding process
must be prepared after data is collected. But the value of the information obtained from open-
ended questions often outweighs the problems of coding the responses.

Researchers typically use a four-step process to develop codes for responses (PPT slide 10-9):
 The procedure is similar for all types of data collection and begins by generating a list
of as many potential responses as possible. Responses are then assigned values within a
range determined by the actual number of separate responses identified.
 Consolidation of responses is the second phase of the four-step process. Exhibit 10.4
illustrates several actual responses to the question “Why are you dining less frequently
at the _____ restaurant?” Four of these—related to not liking the food—can be
consolidated into a single response category because they all have the same shared
meaning. Developing consolidated categories is a subjective decision that should be
made only by an experienced research analyst with input from the project’s sponsor.
 The third step of the process is to assign a numerical value as a code. While at first this
may appear to be a simple task, the structure of the questionnaire and the number of
responses per question need to be considered. If correlation or regression is used in data
analysis, then for categorical data there is another consideration. The researcher may
wish to create “dummy” variables in which the coding is “0” and “1.” Assigning a

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Chapter 10 - Preparing Data for Quantitative Analysis

coded value to missing data is very important. The best way to handle the coding of
omitted responses is first to check on how your data analysis software treats missing
data.
 The fourth step in the coding process is to assign a coded value to each response. This is
probably the most tedious process because it is done manually. Each questionnaire is
assigned a numerical value. The numerical value typically is a three-digit code if there
are fewer than 1,000 questionnaires to code, and a four-digit code if there are 1,000 or
more.

IV. Data Entry (PPT slide 10-10)

Data entry follows validation, editing, and coding. Data entry refers to the tasks involved with
the direct input of the coded data into some specified software package that ultimately allows the
research analyst to manipulate and transform the raw data into useful information (PPT slide 10-
10). This step is not necessary when online data collection is used.

There are several ways of entering coded data into an electronic file. With CATI and Internet
surveys, the data are entered simultaneously with data collection and a separate step is not
required. However, other types of data collection require the data to be entered manually, which
typically is done using a personal computer.

Scanning technology also can be used to enter data. This approach enables the computer to read
alphabetic, numeric, and special character codes through a scanning device. Respondents use a
number two pencil to fill in responses, which are then scanned directly into a computer file.

Online surveys are becoming increasingly popular for completing marketing research studies.
Indeed, online surveys now represent almost 60 percent of all data collection approaches. They
not only are often faster to complete but also eliminate entirely the data entry process.

A. Error Detection (PPT slide 10-11)

Error detection identifies errors from data entry or other sources (PPT slide 10-11). The first
step in error detection is to determine whether the software used for data entry and tabulation
performs “error edit routines” that identify the wrong type of data.

Another approach to error detection is for the researcher to review a printed representation of
the entered data (Exhibit 10.5; PPT slide 10-11).

B. Missing Data (PPT slide 10-12 and 10-13)

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Chapter 10 - Preparing Data for Quantitative Analysis

Missing data are often a problem in data analysis. Missing data are defined as a situation in
which respondents do not provide an answer to a question. Sometimes respondents purposely
do not answer a question creating a missing data situation. This most often arises when
questions of a sensitive nature are asked, such as asking for a respondent’s age or income. It
also may occur because a respondent simply does not see a question, or is in a hurry to
complete the survey and simply skips a question. Missing data are most often a problem with
self-completion surveys. With online surveys respondents can be required to answer all
questions but this may cause some respondents to simply stop answering questions and
terminate the survey. In general, with online surveys it is recommended to require answers on
all questions since the problem of respondents quitting a survey is not as substantial as is the
problem of missing data.

If missing data are encountered, there are several ways to deal with it.
 One approach is to replace the missing value with a value from a similar respondent.
 Another approach, if there are other similar questions to the one with missing data, is to
use the answers to the other similar questions as a guide in determining the replacement
value.
 A third approach is to use the mean of a subsample of the respondents with similar
characteristics that answered the question to determine a replacement value.
 A final alternative is to use the mean of the entire sample that answered the question as
a replacement value, but this is not recommended because it reduces the overall
variance in the question.

C. Organizing Data

Several useful data organizing functions are available in SPSS. One function under the Data
pull-down menu is Sort Cases. This can be used to sort your data cases (observations) in
either ascending or descending order. Another is the Split File function, which can be used for
example to split the Santa Fe Grill and Jose’s Southwestern Café customer respondents into
two groups so they can be compared. A third useful function is the Select Cases option, which
can be used to select only males, or only customers over age 35, and so on. This option can
also be used to select a random subsample of your total sample. The specific steps to execute
these and other functions are explained in the SPSS instructions available from the book’s
website.

V. Data Tabulation (PPT slide 10-14)

Tabulation, sometimes referred to as a frequency count, is the simple process of counting the
number of observations (cases) that are classified into certain categories. Two common forms of
tabulation are used in marketing research projects.

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Chapter 10 - Preparing Data for Quantitative Analysis

 One-way tabulation: It categorizes single variables existing in a study (PPT slide 10-14).
In most cases, a one-way tabulation shows the number of respondents (frequency count)
who gave each possible answer to each question on the questionnaire. The number of one-
way tabulations is determined by the number of variables measured in the study.
 Cross-tabulation: It simultaneously treats two or more variables in the study (PPT slide
10-14). It categorizes the number of responses to two or more questions, thus showing the
relationship between those two variables. It is most often used with nominal or ordinal
scaled data.

One-way and cross-tabulation are considered descriptive statistics.

A. One-Way Tabulation (PPT slides 10-15 to 10-18)

One-way tabulations serve several purposes.

 They can be used to determine the amount of nonresponse to individual questions.
Based on the coding scheme used for missing data, one-way tabulations identify the
number of respondents who did not answer various questions on the questionnaire.
 They can be used to locate mistakes in data entry.
 Means, standard deviations, and related descriptive statistics often are determined from
a one-way tabulation.
 One-way tabulations are also used to communicate the results of the research project.
They can profile sample respondents, identify characteristics that distinguish between
groups (e.g., heavy users versus light users), and show the percentage of respondents
who respond differently to different situations.

The most basic way to illustrate a one-way tabulation is to construct a one-way frequency
table. A one-way frequency table shows the number of respondents who answered each
possible response to a question given the available alternatives. An example of a one-way
frequency table is shown in Exhibit 10.6 (PPT slide 10-16). In addition to listing the number
of responses, one-way frequency tables also identify missing data and show valid percentages
and summary statistics.

B. Descriptive Statistics (PPT slide 10-19)

Descriptive statistics are used to summarize and describe the data obtained from a sample of
respondents. Two types of measures are often used to describe data.
 Measures of central tendency
 Measures of dispersion
Exhibit 10.8 provides an overview of the major types of descriptive statistics used by
marketing researchers.

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Chapter 10 - Preparing Data for Quantitative Analysis

C. Graphical Illustration of Data (PPT slide 10-20)

The next logical step following development of frequency tables is to translate them into
graphical illustrations. Graphical illustrations can be very powerful for communicating key
research results generated from preliminary data analysis.

Marketing Research in Action

Deli Depot (PPT slides 10-21 and 10-22)

The Marketing Research in Action in this chapter provides a questionnaire used by Deli Depot, a
restaurant selling cold and hot sandwiches, soup and chili, yogurt, and pies and cookies. The
exhibit provides the variables measured, the sample questions, and coding.

Answers to Hands-On Exercises

1. Should the Deli Depot questionnaire have screening questions?

Screening questions are used in a study or research to make certain that only qualified
respondents are included in the survey. The three screening questions provided in the Deli
Depot questionnaire make certain that only qualified respondents—people who eat out,
people who eat at Deli Depot, and people who have not completed a restaurant
questionnaire on Deli Depot before—were included in the survey, otherwise the purpose of
the study would not be served. Therefore, yes, the Deli Depot questionnaire should have
these screening questions.

2. Run a frequency count on variable X3–Competent Employees. Do the customers perceive

employees to be competent?

Students’ responses will vary for this question.

3. Consider the guidelines on questionnaire design you learned in Chapter 8. How would you
improve the Deli Depot questionnaire?

Students’ answers for this question will differ.

Suggestive answer:
They want to know the important factors that people use to select a place to eat and how
Deli Depot compares on these important factors with their direct competitors. How do they
know that the list offered are important selection factors? Why are the customers not given
a list of many possible factors? There is nothing in the survey to indicate how people feel

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Chapter 10 - Preparing Data for Quantitative Analysis

about the factors Deli Depot considers to be its competitive advantages—special sauces,
supplementary menu items, and quick delivery. Those need to be evaluated, too. Once they
have the validated list of important factors, they can ask for a comparative evaluation of
each, like “How does Deli Depot stack up against Subway and the other local
competitors?” Finally, once that data has been evaluated, Deli Depot can focus on
emphasizing their strengths and fixing their important weaknesses.

Answers to Review Questions

1. Briefly describe the process of data validation. Specifically discuss the issues of fraud,
screening, procedure, completeness, and courtesy.

Data validation is something akin to a system of “checks and balances” which allows the
research team to determine if interviews and observations were conducted with accuracy
and precision. It is important for the team to audit the data, with a keen eye regarding the
following five issues.
(i) Fraud: Was the person actually interviewed, or was the interview falsified?
(ii) Screening: Was a qualified respondent interviewed?
(iii) Procedure: Was the data collected in the correct area?
(iv) Completeness: Were all questions asked to all respondents?
(v) Courtesy: Were the respondents treated with propriety and respect during the
interview process?

2. What are the differences between data validation, data editing, and data coding?

The process of validating data is all about ensuring the interviews or observations were
conducted correctly and free of fraud on the part of interviewers. Data editing and data
coding, unlike data validation, approaches the data captured from respondents in a “what
we see is what we get” fashion. In other words, the focus of error hovering above the
editing and coding process has more to do with administrative error than slips in
“procedure” and “character.” Data editing involves checking survey instruments for
mistakes which may have occurred during the process of data collection. As an example,
when a questionnaire is reviewed, responses suggest that the data is being provided by a
person who is employed. However, in an early question the interviewer checked
“Unemployed” by mistake. This is an administrative error, not indicative of the kind of
underhanded issues of character which hover around practices such as “curbstoning.” Data
coding involves grouping and assigning values to various responses from the survey
instrument.

3. Explain the differences between developing codes for open-ended questions and for

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Chapter 10 - Preparing Data for Quantitative Analysis

closed-ended questions.

Open-ended questions are useful to researchers and clients since they allow us to probe
answers more deeply for clarity and specifics. The downside of establishing codes for
open-ended questions is that the process of analysis is far more protracted. As well, open-
ended responses are always open to “interpretation” on the part of the team analyzing the
data. Ultimately, the analysis of an open-ended question ends up in the same spot as close-
ended questions; for example, with the research assigning a numerical value as a code and
attaching a coded value to each response. The challenge is taking all the many and varied
responses provided by respondents to open-ended questions (sometimes illegible, often
downright nasty—even foul, most of the time left blank) generating a master list of
potential responses and assigning values to the responses. When developing a survey
instrument, class participants are often enticed by the opportunity to include three or four
open-ended questions in their instrument. However, once confronted with the data captured
by a set of open-ended questions, it is a painful and time-consuming process.

4. Briefly describe the process of data entry. What changes in technology have simplified this
procedure?

Data entry has often been characterized as “grunt work” in the marketing research industry.
It is quite likely class participants will approach this topic (and actually do it) with similar
perceptions. However, changes in technology such as touch-screen capability, hand-held
electronic pointers, hand-held (e.g., palm pilots) and optical scanners have done a lot to
alter this unsavory (and quite unjustified) image of data entry. As well, great leaps have
been made in the online arena by such companies as Mercator Corporation. Their “Snap”
software provides a seamless transition between data entry on the part of respondents and
analysis on the part of the research team, effectively removing the task of data entry by
“grunts” (a thing of the past). Data entry includes all those tasks involved with people
(your class participants) directly inputting coded data into a software package (e.g.,
Minitab, SAS, SPSS, etc.). This essential and important step in the research process allows
an analyst to manipulate and transform raw data into useful information.

5. What is the purpose of a simple one-way tabulation? How does this relate to a one-way
frequency table?

One-way tabulations can be used to:

 determine the degree of nonresponse to each question in the survey (nonresponse can
suggest either a “bad” question, or that the survey was given to a respondent not
aligned with the target population)
 ferret out simple slip-ups in the data entry process

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Chapter 10 - Preparing Data for Quantitative Analysis

 profile a host of summary statistics of interest to the research team

Answers to Discussion Questions

1. Explain the importance of following the sequence for data preparation and analysis
described in Exhibit 10.1.

The sequence moves from error detection through validation, editing, coding, data entry,
data tabulation, and analysis to analysis and interpretation. One could not begin to interpret
without first ensuring that errors were not in the data set or the results would not be
accurate.

2. Identify four problems a researcher might find while screening questionnaires and
preparing data for analysis.

The four areas that researchers must consider when preparing the data are listed below.
 Were the proper questions asked?
 Were the answers recorded accurately?
 Were the respondents correctly screened?
 Were open-ended questions recorded completely and accurately?

3. How can data tabulation help researchers better understand and report findings?

Data tabulations help researchers to find indications of missing data, determine valid
percentages, and offer summary statistics. Missing data are indicators of problems in the
data set, while percentages and summary statistics help in presenting overviews of the
findings.

4. SPSS Exercise. Using SPSS and the Santa Fe Grill employee database, develop
frequencies, means, modes, and medians for all the relevant variables on the questionnaire.

This is an excellent way to introduce students to using the SPSS software.

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