Marketing Research JH

Marketing Research compiled by Jemal H.
2021
CHAPTER 1
THE NATEURE AND SCOPE OF MARKETING RESEARCH
This chapter should enable you to understand and explain:

o Definition and role of marketing research
o Scientific methods of research
o Characteristics of good research
o Classification of research
1. Definition and role of marketing research
Research simply seeks the answer of certain questions which have not been answered so far
and the answers depend upon human efforts. Research answers only those questions of which
the answers are not available in literature i.e., in human knowledge. Thus, we can say research
seeks the answer only of those questions of which the answers can be given on the basis of
available facilities.
Research is any organized inquiry carried out to provide information for the solution of a
problem. Marketing research is the planning, collection, and analysis of data relevant to
marketing decision making and the communication of the results of this analysis to
management. Marketing research is the function that links the consumer, customer, and public
to the marketer through information – information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions; monitor
marketing performance; and improve understanding of marketing as a process. Marketing
research specifies the information required to address these issues, designs the method for
collecting information, managers and implements the data collection process, analyzes the
results, and communicates the findings and their implications.
Why do we need to do research? Research is conducted with a problem and policy goal in
mind and its sole justification is to uncover till now unavailable information. To be specific, the
main role/objectives of a research are to:
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Marketing Research compiled by Jemal H. 2021
 Discover new knowledge

 Solve marketing problems
 Describe and explain phenomenon (happening)
 Enable prediction and
 Develop a theory
2. Scientific methods of research
Scientific research is a way of obtaining knowledge based on objective observations. Science

deals with phenomenon that is observable by anyone. All research, whether basic or applied,
involves the scientific method.
The scientific method is the way researchers go about using knowledge and evidence to reach
objective conclusions about the real world. The scientific method is the same in social
sciences, such as business, as in physical sciences, such as physics.
Prior Knowledge Observation
Hypothesis
Hypothesis Test
Conclusion (New knowledge)
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Hypothesis is a conjectural (proposed, theoretical) statement about a relationship between

two or more variables that can be tested with empirical data; it is considered to plausible
(reasonable), given the available information.
Generally the scientific method can be distinguished from other methods of investigation most
easily by the degree to which it provides reliability. If researchers are completely objective, if
their measurements are accurate, and if their studied are exhaustive, then their results will
be reliable – they and other researchers will get the same results if they reproduce the
investigation.
3. Characteristics of good research

Whatever may be the types of research works and studies, one thing that is important is that
they all meet on the common ground of scientific method employed by them. One expects
scientific research to satisfy the following criteria:
 The purpose of the research should be clearly defined and common concepts be used.
 The research procedure used should be described in sufficient detail to permit another
researcher to repeat the research for further advancement, keeping the continuity of
what has already been attained.
 The procedural design of the research should be carefully planned to yield results that
are as objective as possible.
 The researcher should report with complete frankness, flaws in procedural design and
estimate their effects upon the findings.
 The analysis of data should be sufficiently adequate to reveal its significance and the
methods of analysis used should be appropriate. The validity and reliability of the data
should be checked carefully.
 Conclusions should be confined to those justified by the data of the research and
limited to those for which the data provide an adequate basis.
 Greater confidence in research is warranted if the researcher is experienced, has a
good reputation in research and is a person of integrity.
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4. Classification of research
Think of marketing research as a search for information that will help you succeed in capturing
market share. To begin, let’s consider the differences between fundamental and applied
research. There are different categories of research. The Basis of Classification includes the
following:
 Fundamental (basic) research seeks to extend the boundaries of knowledge in a given

area and doesn’t necessarily solve your immediate problems. Nevertheless, it has useful
applications. It reveals information and relationships that could be useful at a later date.
For example, The Green Yogurt Company conducted fundamental research about
consumer preferences for certain combinations of fruits, nuts, and caramel that differ
in sugar type and strength of sweetness.
 Applied research gathers information to solve a specific problem or set of problems.
For instance, customers engaged in a blind taste test would respond with what they
specifically liked or disliked about a new yogurt product compared to a competitor’s
product. You would use this information to tune your business plan, focus your
advertising campaign, or improve your product.
 Quantitative research is based on the measurement of quantity or amount (analysis of
numerical data). It is applicable to phenomena that can be expressed in terms of
quantity.
 Qualitative technique involves the gathering and analysis of non-numerical data.
Quantitative research is concerned with qualitative phenomena. For example, studying
what makes people work hard or be lazy will lead to arriving at qualitative causes such
as whether the jobs are challenging or not, whether the salary is attractive or not and
whether there are opportunities to grow within the organization. Qualitative research is
especially important in the behavioral sciences where the aim is to discover the
underlying motives, interests, personality and attitudes of human beings.
 Conceptual research is related to some abstract ideas or theory. Philosophers and
thinkers generally use it to develop new concepts or to interpret existing ones.
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 Empirical research is data based, coming up with conclusions that are capable of being
verified, by observation or by experiment. Empirical research is appropriate when proof
that certain variables affect others variables in some way is sought. It is considered that
evidence gathered through experiments or empirical studies provides the most
powerful support possible for a given hypothesis.
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CHAPTER 2
THE RESEARCH PROCESS

o The research process
The research process
The research process will be listed as follows:
a) Establish the need for research
Research may not be needed: Management should not automatically commission a research
study each and every time a decision must be made. There are several situations in which
management should not consider a research project. Here are four situations in which
research may be inappropriate.
 Information is already available

 There is insufficient time for research
 Resources are not available
 Cost outweighs the value of the research
b) Define the problem
Defining the problem is the single most important step in the research process. A clear, concise
statement of the problem is a key to good research. There is much truth to the saying, “A
problem well defined is half solved”. Unfortunately, this is much easier to say than to do.
Often, clients themselves do not know what the problem is. They know that sales are falling
and that market share is shrinking, but they do not know the cause of these symptoms. Part of
the researcher’s job is to work closely with the client to correctly determine the problem. All
too often, research studies are commissioned without a clear understanding of the problem the
research should address. Take the following situation. The president was concerned about
declining profits during five consecutive quarters of business activity. He hired a consultant
who, after one visit to the firm, returned with a proposal to conduct tests of several advertising
copy alternatives to be used in the firm’s radio advertising program. Do you see anything wrong
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with this situation? How does the firm know that profits are declining as a result of problems
with advertising copy? They do not know, and neither does the consulting firm.
This is a classic situation where research is proposed that does not address the real problem. A
firm may spend literally hundreds, of thousands of dollars doing research but, if they have not
correctly identified the problem, those dollars will have been wasted. To avoid this scenario,
care must be taken to explore all possible causes of the symptom. This requires time and a
great deal of communication between the researcher and the client. Often, a form of research,
called exploratory research, is needed to clearly define the problem so that the proper
research may be conducted.
Problem definition involves:
1. Specifying the symptoms,
2. Itemizing the possible causes of the symptoms, and
3. Listing the reasonable alternative courses of action that the manager can undertake
to solve the problem.
c) Establish research objective
Research objectives, although relate to and determined by the problem definition, are set so
that, when achieved, they provide the necessary information to solve the problem.
 A good way of setting research objectives is to ask, “What information is needed in

order to solve the problem?”
 You should notice that the research objectives are different from the defined problem.
Yet, when the information is gathered as a result of carrying out the research objectives,
the problem, is solved.
A key aspect of the research objective step is the specification of the specific types of
information useful to the managers as they look for a solution to the management problem at
hand.
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d) Determine research design
Research design is the research methods and procedures used to collect and analyze data.
There are three types of research design:
1. Exploratory Research,
2. Descriptive Research, And
3. Causal research.
Exploratory research: Exploratory research is, defined as collecting information in an

unstructured and informal manner to formulate background of the study. A manager reading
periodicals about the status of his or her industry, for example, could be viewed as conducting
exploratory research. For instance an owner of a successful restaurant, often eat out at
competitor’s restaurants in order to gather information about menu selections, prices, and
service quality. Exploratory research is often used to define the problem. This might involve
examining not only company sales and profits but industry sales and profits as well. An
example of exploratory research is the ongoing research some companies conduct in order to
spot opportunities in the marketplace.
Descriptive research: Descriptive research designs refer to a set of methods and procedure that
describe research variables. Descriptive studies portray these variables by answering who,
what, why, and how questions. These types of research studies may describe such things as
consumers’ attitudes, intentions, and behaviors, the number of competitors and their
strategies. For instance, several banking firms conduct annual studies wherein consumers’
attitudes toward their own banks, as well as competitors’ banks, are described. These studies,
called ‘image analysis surveys,” essentially describe how consumers rate banks’ services,
availability of loans, convenience of locations and so on.
Causal research: Causal research designs allow us to isolate causes and effects. Causal
research is conducted by controlling various factors to determine which factor is causing the
problem. By changing one factor, say price, we can monitor its effects on a key consequence,
such as sales. In other words, causal designs allow us to determine causality, or which variable
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is causing another variable to change. We refer to the variables causing the change as
independent variables, and the variables that are affected by these factors are referred to as
the dependent variables. Causal research allows for the highest level of understanding that you
can achieve regarding any type of phenomenon. It gives the manager the ability to make if/then
statements.
e) Identify information types and sources
Basically, two types of information are available to a researcher.
1. Secondary data and

2. Primary data.
Secondary data: Secondary data, as its name implies, refers to information that has been
collected for some other purpose. That is, it is being used for a purpose that is secondary to its
original function. Sources of secondary data can be external, such as census data and other
publication. Or sources can be internal, arising from sources inside the firm, such as sales
record of the firm.
Primary data: it refers to information that has been gathered specifically to serve the research
objectives at hand.
f) Determine methods of accessing data
Once the researcher has determined which type or types of information are needed, he or she
must determine methods of accessing data. Methods of accessing internal secondary data
include information from company records, salespersons, other company executives,
management information systems which offer a wealth of information. Methods of accessing
external secondary have greatly improved over the last few years. Not only has the quantity of
information available increased but, perhaps more significantly, information-processing
technology (on-line computerized search, CD-ROM databases, and so on) has vastly improved
our ability to easily and quickly retrieve the information. Most libraries offer these services at
nominal fees, and there are many commercial sources of industry and even brand-specific data.
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There are several different methods of collecting primary data. These methods include
telephone surveys, mail surveys, door – to – door personal interviews, and mall intercept
studies. The computerized questionnaire program customized each question depending on the
respondent’s verbal response to the previous question.
g) Design data collection forms
There are two basic methods by which researchers collect information:
1. By asking questions or
2. By observing.
Both information– collecting formats use standardized forms, called questionnaires, which
record the information communicated by respondents or the respondents’ behavior as
observed by the researcher.
There are two types of forms: structured and unstructured.
 Structured questionnaires list questions that have pre-specified answer choices.

 Unstructured questionnaires have open – ended questions and/or questions that are
asked based on a prior response.
h) Determine sample plan and size (sampling procedures)

A sample is a subset from a larger population. Several questions must be answered before a
sampling procedure is selected:
 ‘’ Who is to be sampled?’’: the population or universe of interest must be defined. This
is the group from which the sample will be drawn. For example, all persons who eat
Mexican food at least once every 60 days. And then select the sampling unit from the
population to study.
 ‘’ How big should the sample be? ‘’: other things equal, larger samples are more
precise than smaller ones. However, proper probability sampling can allow a small
proportion of the total population to give a reliable measure of the whole.
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 ‘’ How to select sampling units ‘’: this is performed by using probability sample or non-
probability samples. Probability sample is a sample for which every element in the
population has a known nonzero probability of being selected. Such samples allow the
researcher to estimate how much sampling error is present in a given study. Non-
probability samples are those in which the chances of selection for the various
elements in the population are unknown. Here, sampling error cannot be determined.
i) Collect data
This is the process of collecting relevant information. Data may be gathered by human
observers or interviewers, or they may be recorded by machines as in the case of scanner data
and web-based surveys. Unobtrusive methods of data gathering are those in which the
subjects do not have to be distributed for data to be collected. They may even be unaware that
research is going on at all.
Data collection is usually done by trained interviewers who are employed by field data
collection companies to collect primary data. Many possible errors, called non- sampling errors
because they are attributable to factors other than sampling errors, may occur during data
collection. Such errors include:
 Selecting the wrong sample elements to interview,

 Securing subjects who refuse to participate or are simply not at home when the
interviewer calls,
 Interviewing subjects who intentionally give out the wrong information, or
 Hiring interviewers who cheat and fill out fictitious survey questionnaires.
 Even interviewers who honestly complete their interviews may make inadvertent no
sampling errors by copying down the wrong information on their survey form.
Needless to say good researchers must be aware of the errors that may occur during data
collection and should implement plans to reduce these errors. Unlike sampling error you cannot
measure the amount of non-sampling error that may exist in a research. Therefore, it is
important to know the possible causes of non-sampling error, so that, appropriate steps can be
taken to limit its occurrence.
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j) Analyze data
Some type of data analysis is needed to give the raw data any meaning. Data analysis involves:
 Entering data into computer files,

 Inspecting it for errors, and
 Running tabulation and various statistical tests.
Data editing (data cleaning) and coding: after the field work has been completed, the
information content will be mined (cleaned) from the raw data. Editing involves checking the
data collection forms for omissions, legibility, and consistency in classification. Coding is the
process of assigning all response categories a numerical value; that is, males, = 1, females = 2,
and so on. Coding is the rule for interpreting, categorizing, and transferring the data to the data
storage media.
Data analysis is the application of reasoning to understand the data that have been gathered.
An important step in data analysis is performed by tabulation, which refers to the actual
counting of the number of observations that fall into each possible response category. There
are several uses of tabulation, some devoted to data cleaning, and other allow the researcher
to understand what the collected data means. Examining two or more response categories at
the same time, called cross- tabulation, is another form of data analysis. Finally, a variety of
statistical analysis (tests) that range from portraying a simple frequency distribution such as
means to more complex multivariate techniques such as correlation’s trend analysis, regression
analysis will be undertaken.
The appropriate analytical technique for data analysis will be determined by:
 Management’s information requirements
 The characteristics of the research design
 The nature of the data gathered
k) Drawing conclusions and preparing a report
It consists of:
 Interpreting the research results
 Describing the implications, and
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 Drawing the appropriate conclusions for managerial decisions (management requires

only a summary of the findings).
l) Following up
This is following whether the recommendations were followed (implemented) by management
or not.
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CHAPTER 3
RESEARCH PROPOSAL
o What is a Research Proposal?

o Functions of Research Proposal
o General Format of research Proposal
1. The research proposal
The research proposal is a written statement of the research design. It is a document
developed, usually in response to an RFP (Request for Proposal), that presents the research
objectives, research design, time line, and cost of a project.
RFP is a solicitation (request) sent to marketing research supplier inviting them to submit a
formal proposal, including a bid (price). The research proposal becomes the primary
communication document between the researcher and the research user.
The researcher submits the proposal (planning tool) to management for acceptance,
modification, or rejection. Research clients (management) evaluate the proposed study with
particular emphasis on whether or not it will provide useful information, and whether it will do
so within a responsible resource budget.
The proposal serves as a contract, a client solicits several competitive proposals, and these
written offers help management judge the relative quality of alternative research suppliers. The
proposal functions as a formal, written statement of agreement between marketing
executives and researchers.
In basic research efforts, a formal proposal serves much the same purposes. Funded business
research generally refers to basic research usually performed by academic researchers and
supported by some public or private institution.
The proposal describes the data collection, measurement, data analysis, and so forth, in future
tense. In the report, the actual results are presented. In this sense the proposal anticipates the
research outcome (This anticipated hypothetical outcome or result in a table form is called
dummy tables).
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2. The purpose of the research proposal includes

 Present the management question to be researched and its importance.
 Discuss the research efforts of others who have worked on related management
questions.
 Suggest the data necessary for solving the management questions and how the data will
be gathered, treated, and interpreted.
Research proposal will be classified as follows (types of research proposal):
a) Internal Proposals
Internal proposals are more succinct than external ones.
o An internal proposal is done for the corporation by staff specialist or by the research
department of the firm.
o It is a memo from the researcher to management outlining the problem statement,
study objectives, research design, and schedule enough to start an exploratory study.
o Privately and publically held firms are concerned with how to solve a particular problem,
make a decision, or improve an aspect of their business.
o In the small scale proposal, the literature review and bibliography are consequently not
stressed and can often be stated briefly in the research design.
o For the smaller scale projects, descriptions are not required for facilities and special
resources, nor is there a need for a glossary.
b) External proposals
o An external proposal is either solicited or unsolicited.
o A solicited proposal is often in response to RFP.
o The proposal is likely competing against others for a contract or grant.
o An unsolicited proposal has the advantage of not competing against others but the
disadvantage of having to speculate on the ramification of a problem facing the firm’s
management.
o The writer of the unsolicited proposal must decide to whom the document should be
sent.
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o The external summary of an external proposal may be included within about project
management and the facilities and special resources.
3. THE MAJOR COMPONENTS OF RESEARCH PROPOSAL (STRUCTURE OF RESEARCH
PROPOSAL) INCLUDE
a) Title page of the study
A title ought to be well studied and give a definite and concise indication of what is to come.
The title of a research proposal should state your topic exactly in the smallest possible
number of words. Put your name, the name of your department/faculty/college
(organization), the name of your advisor(s) and date of delivery under the title. First
impressions are strong impressions: make your title an attention grabber.
b) Summary or abstract of the study
The abstract is a one page brief summary of the thesis proposal. It needs to show a reasonably
informed reader why a particular topic is important to address and how you will do it. Specify
the question that your research will answer, establish why it is a significant question; show how
you are going to answer the question. Do not put references, figures, or tables in the abstract.
The abstract is a concise summary of the material presented in the proposal. Though it appears
at the front of the proposal, it is written last.
c) Introduction/background of the study
The introduction is the part of the proposal that provides readers with the background
information for the research proposal. The introduction should address the following points:
 Sufficient background information to allow the reader to understand the context and
significance of the question you are trying to address.
 Proper acknowledgement of the previous work on which you are building.
 Internal trends and competitive trends of your research topic.
 Sufficient methods used in collecting background information and adequate references.
 The introduction should be focused on the research question(s).
 All cited work should be directly relevant to the goals of the research.
 Explain the scope of your work, what will and will not be included.
 A verbal "road map" or verbal "table of contents" guiding the reader to what lies ahead.
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d) Statement of the research problem

Statement of the problem encapsulates the question you are trying to answer. Effective
problem statements answer the question “Why does this research need to be conducted.”
e) Objective/aim of the study (statement of the research objective)
The objectives of a research delineate the ends or aim which the inquirer seeks to bring about
as a result of completing the research undertaken. An objective may be thought of as either a
solution to a problem or a step along the way toward achieving a solution; an end state to be
achieved in relation to the problem. The objectives of a research project summarize what is to
be achieved by the study. Objectives should be closely related to the statement of the
problem. After statement of the primary objective, secondary objectives may be mentioned.
Objectives should be:
o Simple (not complex),
o Specific (not vague),
o Stated in advance (not after the research is done), and
o Stated using “action verbs” that are specific enough to be measured.
o Commonly, research objectives are classified into general objectives and specific
objectives.
The formulation of objectives will help you to:
o Focus the study (narrowing it down to essentials);
o Avoid the collection of data which are not strictly necessary for understanding and
solving the problem you have identified; and
o Organize the study in clearly defined parts or phases.
f) Hypothesis/questions of the study
Hypotheses and questions are linked to the speculative proposition of the problem statement.
The term hypothesis implies a derivation, within a hypothetic-deductive theoretical system, of a
particular assertion or prediction. Hypotheses are tentative statements/solutions or
explanations of the formulated problem. The hypothesis is subject to test, i.e., to
confirmation or rejection on empirical grounds. The term question implies an interrogative
statement that can be answered by data.
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g) Significance /importance / benefits of the study

This allows describing explicit benefits that will accrue from your study. The importance of
“doing the study now” should be emphasized. If you find it difficult to write, then you will have
probably not understood the problem adequately. Return to the analysis of the problem and
ensure, through additional discussions with your research team, or by the reexamination of the
literature, that you have captured the essence of the problem. It requires you to understand
what is most troubling to your sponsor. It is more important to the unsolicited external
proposal.
h) Delimitation/determine the scope of the study
This is very often a practical matter of where you can get access. It involves stating conceptual,
geographical, and time scope of the study. You need to decide whether you will be:
o Studying one part of an organization;
o Making a comparison of several parts of an organization;
o Studying one organization;
o Making a comparison of two or more organization;
o Studying a secure.
i) Literature review of the study
Literature review examines recent research studies, company data, or industry reports that
acts as a basis for the proposed study. Discussion of literature should move from a
comprehensive perspective to more specific studies that are associated with your problem.
j) Research Methodologies
What belongs in the "methods" section of a research proposal?
o Information to allow the reader to assess the believability of your approach.
o Information needed by another researcher to replicate your experiment.
o Description of your materials, procedure, theory.
o Calculations, technique, procedure, equipment, and calibration plots.
o Limitations, assumptions, and range of validity.
o Description of your analytical methods, including reference to any specialized
statistical software.
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Research methodologies include:

 The research methods/design to be employed
 Sampling design: what is the study population (who will be sampled?) you are
interested in from which we want to draw a sample, how many subjects do you need in
your sample (the sample size)? How will these subjects be selected (sampling
techniques-probability vs. non-probability sampling)? Sampling is critical to external
validity—the extent to which findings of a study can be generalized to people or
situations other than those observed in the study.
Another reason for being concerned with sampling is that of internal validity—the
extent to which the outcomes of a study result from the variables that were
manipulated, measured, or selected rather than from other variables not systematically
treated.
 Data analysis: states which statistical techniques will be used to analyze the data.
k) Work plan/timing of the study
Work plan is a schedule, chart or graph that summarizes the different components of a
research proposal and how they will be implemented. Timing states when various phases of
the project will be completed and provides a final completion date.
l) Budget and financing (cost) of the study
Budget items need to be explicitly stated. Cost for every budget item should be quantitatively
shown. There might be a need for budget justification of certain costs whose requirement is not
obvious. Let us see the direct and indirect costs of research:
Direct costs:
 Personnel: Salaries and wages
 Consumable supplies
 Equipment
 Travel
 Communications
 Publication
 Other direct costs
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Indirect costs:
 Overhead costs for institutions or associations
 General administrative cost
 Operational and maintenance
 Depreciation and use allowance
m) References
References may be made in the main text using index numbers in brackets (Vancouver style) or
authors name (Harvard style).
For a journal paper give:
 the names of the authors,
 the year of publication,
 the title of the paper,
 the title of the journal,
 the volume number of the journal,
 The first and last page numbers of the paper.
For a book give:
 the author,
 the year of publication,
 the title, and the edition number if there is one,
 the name of the publisher,
 The page numbers for your reference.
For an internet reference give:
 the author of the web page,
 the title of the item on the web page,
 the date the item was posted on the web page
 the date the item was accessed from the web page
 The complete and exact URL.
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n) Appendices/annexes
It includes the appendices of your proposal and any additional information you think might be
helpful to a proposal reviewer.
Appendix includes:
 Questionnaire & other collection forms
 Dummy tables
 Biographical data on the principal investigator
 The consent form (if any)
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CHAPTER 4
DEFINING THE PROBLEM AND THE RESEARCH OBJECTIVES
o Define manager’s and research problem

o Develop the research objectives
1. Define manager’s and research problem
Problem definition: problem definition is ‘’the foundation of the research’’. A problem is a

situation that makes some significant negative consequences more likely. Many problems are
not easily observable. Instead, problems are commonly inferred from symptoms, which are
observable cues that serve as a signal of a problem because they are caused by that problem.
Research may help identify what is causing this symptom so that decision makers can actually
attack the problem, not just the symptoms (decision making is the process of developing and
deciding among alternative ways of resolving a problem or choosing from among alternative
opportunities. A decision maker must recognize the nature of the problem or opportunity,
identify how much information is currently available, how reliable it is, and determine what
additional information is needed to better deal with the situation.)
Under problem-focused decision making and conditions of high ambiguity (in which the nature
of the problem itself is unclear), symptoms may not clearly point to some problem. Indeed,
they may quite vague or subtle, indicating only small deviations from normal conditions. For
instance, a fast-food restaurant may be experiencing small change in the sales of its individual
products, but no change in overall sales. Such a symptom may not easily point to a problem
such as a change in consumer tastes.
As ambiguity is lessened, the symptoms are clear and are better indicators of a problem. A large
and sudden drop in overall sales may suggest the problem that the restaurant’s menu does
not fare well compared to competitor’s menus. Thus, a menu change may be in order.
However, it is also possible the drop in sales is due to new competition, a competitor’s price
drop or new promotional campaign. Thus, research is needed to clarify the situation.
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Similarly, in opportunity oriented research, ambiguity is characterized by environmental

trends that do not suggest a clear direction. As the trend become larger and clearer, they are
more diagnostic, meaning they point more clearly to a single opportunity. Translating a
business situation in to something that can be researched is somewhat like translating one
language in to another. It begins by coming to a consensus, on a decision statement or
question. A decision statement is a written expression of the key question(s) that a research
user wishes to answer. It is the reason that research is being considered. It must be well stated
and relevant. The researcher translates this in to research terms by rephrasing the decision
statement in to one or more research objectives. The researcher then further expresses these
in precise and scientific research terminology by clearing research hypotheses from the
research objectives. Research objectives are the goals to be achieved by conducting research.
In consulting, the term deliverables is often used to describe the objectives to a research client.
Problem definition is the process of defining and developing a decision statement and the
steps involved in translating it into more precise research terminology, including a set of
research objectives. If this process breaks down at any point, the research will almost certainly
be useless or even harmful. It will be useless if it presents results that simply are deemed
irrelevant and do not assist in decision making. It can be harmful both because of the wasted
resources and because it may misdirect the company in a poor direction.
A problem occurs when there is a difference between the current conditions and a more
preferable set of conditions. In other words, a gap exists between the way things are now and
a way that things could be better.
Problem definition could pertain to:
o Existing business problems where a manger looking for a solution,

o Situations that may not pose any current problems but which the manager feels have
scope for improvement ,
o Areas where some conceptual clarity is needed for better theory building, or
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o Situations in which a researcher is trying to answer a research question empirically

because of interest in the topic.
Management Decision Problem
The management decision problem asks what the Decision Makers (DM) needs to do, whereas
the marketing research problem ask what information is needed and how it can best be
obtained.
 Research can provide the necessary information to make a sound decision.

 The management decision problem is action oriented.
It is concerned with the possible actions the DM could take.
 How should the loss of market share be arrested?

 Should the market be segmented differently?
Marketing Research Problem
The marketing research problem is information oriented. It wants to determine what

information is needed to make the best decision.
 It involves determining what information is needed and how that information can be
obtained effectively and efficiently.
 Whereas the management decision problem focuses on symptoms, the marketing
research problem focuses on underlying causes.
Now before we are going to see the problem definition process, let us see a construct and
operational definition. A construct is a research term or concept that is somehow involved in
the management problem that will be researched. Although managers and researchers share
the language of constructs, the researcher translates the construct into an operational
definition, which describes how a researcher measures the construct. Operational definition
implies a specific question format that will be used in a survey to gather information about the
construct at hand.
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S/N Constructs Operational Definitions

1. Brand awareness Percent of respondents having heard of brand
2. Recall, recognition of advertising The number who remember seeing a specific ad
3. Knowledge of product , feature What they can tell about the product?
4. Brand familiarity Those who have seen the brand or tried it
5. Comprehension of product benefits What respondents think the product does for
them?
6. Attitude , feelings toward brand The number who feel positive, negative or ,
neutral
7. Intensions to purchase The number that are planning to buy it
8. Past purchase or use The percent that bought it
9. Satisfaction How they evaluate its performance?
10. Importance of some factor What factors determined their purchase choice?
11. Demographics How old, what gender, and so on?
12. Disposal of product and knowledge What they did with the box , wrapping , or
product?
13. Brand loyalty How many times bought the brand in the last six
months?
The problem definition process
a) Understand the situation (identify key symptoms)
Asituation analysis involves the gathering of background information to familiarize

researchers and managers with the decision making environment.
Giving an awareness of marketplace conditions and an appreciation of the situation often

requires exploratory research. Exploratory research is preliminary research, not the definitive
research used to determine a course of action. Exploratory research can take several forms:
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 Pilot studies: surveys using a limited number of respondents

 Experience survey: involve talking with knowledgeable individuals, both insides
and outside the organization.
 Secondary data analysis
 Case analysis: review of information from a few other situations that are similar
to the present research problem.
 Focus group (interview): in-depth discussions, usually consisting of 8 to 12
participants, which are led by a moderator and are generally limited to one
particular concept, idea, or theme.
Identifying symptoms: interviews with key decision makers also can be one of the best ways to
identify key problem symptoms. All problems have symptoms just as human disease is
diagnosed through symptoms. Once symptoms are identified, then the researcher must probe
(investigate) to identify possible causes of these changes.
Probing is an interview technique that tries to draw deeper and more elaborate explanations
from the discussion. This discussion may involve potential problem causes. This probing
process will likely be very helpful in identifying key variables that are prime candidates for
study.
One of the most important questions the researcher can ask during these interviews is, ‘’what
has changed?’’ Then, the researcher should probe to identify potential causes of the change.
The researcher should also look for changes in company documents, including financial
statements and operating reports. Changes may also be identified by tracking down news
about competitors and customers (sales or market share will decline…..).
What has changed?
Questions: what changes have occurred recently?
Probe: tell me about this change.
Probe: what has brought this about?
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Problem: how might this be related to your problem?
Question: what other changes have occurred recently (i.e., competitors, customers,
environment, pricing, promotion, suppliers, employees, etc.)?
Continue probing……….
Almost any situation can be framed from a number of different perspectives. A pricing problem
may be rephrased as a brand image problem. People expect high quality products to have high
prices. A quality problem may be rephrased as a packaging problem. For example, a potato chip
company thought that a quality differential between their potatoes and their competitor’s was
the cause for the symptoms showing sliding market share. However, one of the research
questions that eventually resulted dealt with consumer preferences for packaging. In the end,
research suggested that consumers prefer a foil package because it helps the chips stay fresher
longer. Thus, the key gap turned out to be a package gap!
b) Identify key problem(s) from symptoms
The preceding interview is extremely useful in translating the decision situation in to a working
problem definition by focusing on symptoms. However, the researcher needs to be doubly
certain that the research attacks real problems and not superficial symptoms.
For instance, when a firm has a problem with advertising effectiveness, the possible causes of
this problem may be low brand awareness, the wrong brand image, use of the wrong media,
or perhaps too small a budget. Certain occurrences that appear to be the problem may be only
symptoms of a deeper problem.
A symptom is a phenomenon that occurs because of the existence of something else. For
example, managers often talk about the problem of poor sales, declining profits, increased
customer complaints, or defecting customers. Each of these is a symptom of a deeper
problem. That is, something is causing a company’s customers to leave. It is lower prices
offered by the competition? Or is it better service? Focusing on the symptoms and not the true
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problem is often referred to as the iceberg principle. Approximately 10% of an iceberg rises out
of the ocean; the remaining 90% is below the surface.
c) Write managerial decision statement and corresponding research objectives
Multiple solutions are encouraged by using plural nouns to describe solutions. In other words,
a decision statement that says in what ‘’ways’’ a problem can be solved is better than one that
says in what ‘’way’’ a problem can be solved. Ultimately, research may provide evidence
showing results of several ways a problem can be attacked.
Decision statements must be translated in to research objectives. At this point, the researcher
is starting to visualize what will need to be measured and what type of study will be needed.
Research objective states a corresponding potential result(s) of the research project. Thus, in
some ways, it is stating the information that is needed to help make the decision. Once the
decision statement is written, the research essentially answers the question, ‘’what information
is needed to address this situation?’’. Let us see the following examples:
Research
Firm’s situation Symptoms Probable problem Decision statement
action
 Business users do not
see advantages of
 Distributors What things can be
Manufacturer of palm- smaller units
complain prices are done to improve
sized computer with  Advantages are not
too high. competitive
Situation 1 wireless internet access outweighed by costs
 Business users still positioning of the
believes B2B sales are  Transition costs may
use larger new product in B2B
too low. be a drawback for B2B
computers markets?
customers more than
for B2C customers
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Now let us translate the decision statement:
Decision statement Research objectives Research questions Research hypothesis

What product features can
List actions that may
be improved and Perceived difficulty in
overcome the objections What are the factors that
emphasized to improve learning how to use the new
(switching costs) of B2B most lead to perceptions of
competitive positioning of devise is related to switching
customers toward adoption high switching costs?
the new product in B2B costs
of the new product.
markets?
The marketing research problem specifies what information is needed to solve the problem
and how that information can be obtained efficiently and effectively. The marketing research
objectives are the goal statement, defining the specific information needed to solve the
marketing research problem. Management decision problem is action – oriented. It tends to be
much broader in scope and far more general than marketing research problems, which must be
narrowly defined and specific if the research effort is to be successful.
d) Determine the units of analysis
The unit of analysis for a study indicates what or who should provide the data and at what
level of aggregation.
Researchers specify whether an investigation will collect data aboutindividuals (such as

customers, employees, and owners), households (families, extended families, and so forth),
organizations (businesses and business units), departments (sales, finance, and so forth),
geographical areas, or objects (products, advertisements, and so forth). In studies of how
buying, for example, the husband/wife dyad (couple) typically is the unit of analysis (subject of
study) rather than the individuals because many purchase decisions are made jointly by
husband and wife.
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e) Determine relevant variables
A variable is anything that varies or changes from one instance to another. Variables can
exhibit differences in value, usually in magnitude or strength, or in direction. In research, a
variable is either observed or manipulated, in which case it is an experimental variable. The
converse of a variable is a constant. A constant is something that does not change. Constants
are not useful in addressing research questions. Since constants do not change, management
is not very interested in hearing the key to the problem is something that will not or cannot be
changed. In causal research, it can be important to make sure that some potential variable is
actually held constant while studying cause and effect between two other variables. In this way,
a spurious (resembling) relationship can be ruled out.
Types of variables
 Continuous variable: is one that can take on a range of values that correspond to some
quantitative amount. Consumer attitude toward different airline is a variable that
would generally be captured by numbers, with higher number indicating a more
positive attitude than lower numbers. Each attitude of airlines’ services, such as safety,
seat comfort, and baggage handling can be numerically scored in this way. Sales
volume, profits, and margins are common business metrics that represent continuous
variables.
 Categorical variable: one that indicates membership in some group. The term
classificatory variable is sometimes also used and is generally interchangeable with
categorical variable. Categorical variables sometimes represent quantitative that take
on only a small number of values (one, two, or three). However, categorical variables
more often simply identify membership. For example, people can be categorized as
either male or female. A variable representing biological sex describes these important
differences. The researcher could assign a ‘’0’’ for men and a ‘’1’’ for women.
A common categorical variable in consumer research is adoption, meaning the
consumer either did or did not purchase a new product. Thus, the two groups, purchase
or not purchase, comprise the variable.
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In descriptive and causal research, the term dependent variable and independent
variable describe different variable types. The distinction must be clear before one can
correctly apply certain statistical procedures like multiple regression analysis. In some
cases, however, such as when only one variable is involved in a hypothesis, the
researcher need not make this distinction.
 Dependent variable: a process outcome or a variable that is predicted and/or
explained by other variables (represented by letter Y).
 Independent variable: a variable that is expected to influence the dependent variable
in some way. Such variables are independent in the sense that they are determined
outside of the process being studied (represented by letter X). For example, average
customer loyalty may be a dependent variable that is influenced or predicted by an
independent variable such as perceptions of restaurant food quality, service quality, and
customer satisfaction.
The process of identifying the relevant variables overlaps with the process of
determining the research objectives. Typically, each research objectives will mention a
variable or variables to be measured or analyzed.
f) Write research questions and/or research hypothesis
Research questions express the research objectives in terms of questions that can be
addressed by research. Hypothesis is a conjectural (proposed) statement about a relationship
between two or more variables that can be tested with empirical data; it is considered to be
plausible (reasonable), given the available information (requires theoretical support).
Hypotheses are more specific than research questions. One key distinction between research
questions and hypothesis is that hypothesis can generally specify the direction of a
relationship. In other words, when an independent variable goes up, we have sufficient
knowledge to predict that the dependent variable should also go up (or down as the case may
be).
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At times, a researcher may suspect that two variables are related but have insufficient
theoretical rationale to support the relationship as positive or negative. In this case, hypothesis
cannot be offered. Research questions are interrogative, whereas research hypothesis are
declarative. Let us see the following example:
Managerial decision Research question(s) Research hypothesis

 Does nationality matter?  French consumers have more
 Will French and German consumers interest in purchasing our product
What market segments should be express interest in our product? than German consumers.
served?  Does the attitude toward Korean  Attitude toward Korean companies
companies influence purchase is related positively to product
intentions? interest.
2. Develop the research objectives
Research objectives are the goals to be achieved by conducting research. The research
objectives cannot be developed until managers and researchers have agreed on the actual
business ‘’problem’’ that will be addressed by the research. Thus, they set out to ‘’discover’’
this problem through a series of interviews and through a document called a research proposal.
Research objectives delineate the type of research, that is needed and what intelligence may
result that would allow the decision maker to make informed choices. The research objectives
represent a contract of sorts that commits the researcher to producing the needed research.
Let see the following example:
Decision statement Research objective Hypotheses
 Cleanliness is related positively to
customers’ service quality service
In what ways can we improve our service Identify the top factors that contribute to perceptions.
quality? customers’ perceptions.  Crowding is related negatively to
customers’ service quality
perceptions.
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Let us add additional examples (Research Question/RQ/ and Hypothesis/H/):
 RQ1: What foods are considered to be comfort foods?

 H1: Potato Chips are considered comfort foods.
 H2: Ice cream is considered comfort food.
 RQ2: When do people eat comfort foods?
 H3: People eat comfort foods when they are in a good mood.
 H4: People eat comfort foods when they are in a bad mood.
 RQ3: How do people become attached to comfort foods?
 H5: People are attached to comfort foods that are consistent with their
personality.
 H6: People are attached to comfort foods because of past association.
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CHAPTER 5
RESEARCH DESIGN
o The significance of research design

o Types of research design
1. The significance of research design
A research design is a master plan that specifies the methods and procedures for collecting
and analyzing the needed information. It is a plan for addressing the research objectives and
hypothesis. A common trade-off is between research costs and the quality of the decision
making information provided. Generally speaking, the more precise and error free the
information obtained, the higher the cost. Another common trade-off (an exchange that
occurs as a compromise) is between time constraints and the type of research design selected.
The researcher’s first task is to decide the type of research design: exploratory research,
descriptive research, and causal research.
Research design is significant simply because it allows for the smooth sailing of the various
research operations, thus making research as efficient as possible producing maximum
information with nominal expenses of effort, time and money.
Just as for better, economical and attractive construction of a home, we require a blueprint (or
what is typically known as the map of the home) well planned and prepared by an expert
architect, in the same way we require a design or a plan in advance of data collection and
analysis for our research study. It means advance planning of the techniques to be
implemented for accumulating the appropriate data and the strategies to be employed in
their analysis, keeping in view the purpose of the research and the availability of staff, time
and money.
Preparation of the design must be carried out meticulously as any error in it may upset the
complete project. Research design, actually, has a great significance and impact on the
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reliability of the results achieved and as such constitutes the firm base of the entire edifice of
the research work.
Even then the necessity for a well-planned design is at times not realized by many people. The
significance which this problem warrants is not given to it. Because of this many researches do
not serve the purpose for which they are undertaken. The truth is that they may even provide
misleading conclusions.
Thoughtlessness in developing the research project may lead to rendering the research exercise
futile. It is, for that reason, crucial that an efficient and appropriate design should be prepared
before beginning research operations.
The design assists the researcher to organize his ideas in a form whereby it will be possible for
him to watch out for flaws and inadequacies. This type of design can also be given to others for
their comments and critical evaluation. In the absence of such a strategy, it will likely be
challenging for the critic to supply a comprehensive review of the offered study.
A research design isn’t just a work plan. A work plan details what needs to be done to complete
the project but the work plan will flow from the project’s design. The function of a research
design is to make certain that evidence obtained allows us to answer the initial question as
unambiguously as possible. Acquiring relevant evidence involves specifying the kind of
evidence required to answer the research question, to test a theory, to judge a program or to
precisely describe some phenomenon.
It is like a blueprint which we require ahead of time to plan the methods to be used for
collecting the relevant data and techniques to be used in its analysis for preparation of research
project.
2. Types of research design
All research approaches can be classified into one of three general categories of research:
exploratory research, descriptive research, and causal research.
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The choice of the most appropriate design depends largely upon the objectives of research. It
has been said that research has three objectives:
 to develop hypotheses,
 to measure the state of a variable of interest (like, level of brand loyalty), or
 To test hypotheses that specify the relationships between two or more variables (that is,
level of advertising and brand loyalty.
We shall see how these basic research objectives are best handled by the various research
designs; the following table shows the three types of research designs and the basic research
objective that would prescribe a given design.
The three types of research differ significantly, in terms of:
o The research purpose

o Research questions
o The precision of the hypotheses that are formed and
o The data collection methods that are used
Research Objective Appropriate Design

To gain background information, to define terms, to clarify problems and hypotheses, to Exploratory
establish research priorities
To describe and measure a phenomena at a point in time Descriptive
To determine causality, to make “if-then” statements Causal
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a) Exploratory research
Exploratory research is most commonly unstructured, informal research that is undertaken to

gain background information about the general nature of the research problem.
o By unstructured, we mean that exploratory research does not have a formalized set of
objectives, sample plan, or questionnaire, It is usually conducted when the researcher
does not know much about the problem and needs additional information or desires
new or more recent information.
o Often, exploratory research is conducted at the outset of research projects because
exploratory research is aimed at gaining additional information about a topic and
generating possible hypotheses to test, it is described as informal. Such research may
consist of going to the library and reading published secondary data; of asking
customers, salespersons, and acquaintances for their opinions about a company, its
products, services, and prices; or of simply observing everyday company practices.
o Exploratory research is systematic, but it is very flexible in that it allows the researcher
to investigate whatever sources he or she desires and to the extent he or she feels is
necessary in order to gain a good feel for the problem at hand.
Exploratory research is used in a number of situations:
 Gain Background Information: When very little is known about the problem or when
the problem has not been clearly formulated, exploratory research may be used to gain
much-needed background. This is easily accomplished in firms having information
system in which a review of internal information tracked over time can provide useful
insights into the background of the firm, brand, sales territories, and so on.
 Define Terms: Exploratory research helps to define terms and concepts. By conducting
exploratory research to define a question such as, “what is image”? The researcher
quickly learns that “image” is composed of several components – perceived
convenience of location, friendliness of employees, and so on. Not only would
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exploratory research identify the components of bank image but it could also
demonstrate how these components may be measured.
 Clarify Problems and Hypotheses: Exploratory research allows the researcher to define
the problem more precisely and to generate hypotheses for the upcoming research. For
example, exploratory research on measuring bank image reveals the issue of different
groups of bank customers. Banks have three types of customers: retail customers,
commercial customers, and other banks for which services are performed for fees. This
information is useful in clarifying the problem of the measurement of bank image
because it raises the issue of which customer group bank image should be measured on.
Exploratory research can also be beneficial in the formulation of hypotheses, which are
statements describing the speculated relationships among two or more variables.
Formally stating hypotheses prior to conducting a research is very important to ensure
that the proper variables are measured. Once a research has been completed, it may be
too late to state which hypotheses are desirable to test.
 Establish Research Priorities: Exploratory research can help a firm prioritize research
topics in order of importance, especially when it is faced with conducting several
research studies. A review of customer complaint letters for example, may indicate
which product or services are most in need of management’s attention. For example,
one furniture store chain owner decided to conduct research on the feasibility of
carrying office furniture after some or exploratory interviews with salespeople revealed
that their customers often asked for directions to stores carrying office furniture.
A variety of methods are available to conduct exploratory research. These include:
 Secondary Data Analysis: By secondary data analysis, we refer to the process of

searching for and interpreting existing information relevant to the research problem.
Secondary date is data that have been collected for some other purpose. Libraries and
the internet are full of secondary data, which includes information found in books,
journals, magazines, special reports, bulletins, newsletters, and so on. An analysis of
secondary data is often the “core” of exploratory research. This is because there are
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many benefits to examining secondary data and the costs are typically minimal.
Furthermore, the costs for search time of such data are being reduced every day as
more and more computerized databases become available.
 Experience Surveys: Experience surveys refer to gathering information from those
thought to be knowledgeable on the issues relevant to the research problem. If the
research problem deals with difficulties encountered when buying infant clothing, then
surveys of mothers or fathers with infants may be in order. Experience surveys differ
from surveys conducted as part of descriptive research in that there is usually no formal
attempt to ensure that the survey results are representative of any defined group of
subjects. Nevertheless, useful information can be gathered by this method of
exploratory research.
 Case Analysis/case studies/previous research investigation: By case analysis, we refer
to a review of available information about a former situation(s) that has some
similarities to the present research problem. Usually, there are few research problems
that do not have some similarities to some situation in the past. Even which the
research problem deals with a radically new product, there are often some similar past
experiences that may be observed.
 Focus Groups: An increasingly popular method of conducting exploratory research is
though focus groups, which are small groups of people brought together and guided by
a moderator through an unstructured, spontaneous discussion for the purpose of
gaining information relevant to the research problem. Although focus groups should
encourage openness on the part of the participants, the moderator’s task is to ensure
the discussion is “focused” on some general area of interest.
 Projective Techniques: Projective techniques, borrowed from the field of clinical
psychology, seek to explore hidden consumer motives for buying goods and services
by asking participants to project themselves into a situation and then to respond to
specific questions regarding the situation. One example of such a technique is the
sentence completion test.
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 Pilot studies: is a small-scale research project that collects data from respondents
similar to those that will be used in the full study.
b) Descriptive research
When we wish to know how many customers we have, what brands they buy and in what
quantities, which advertisements they recall, and what their attitudes are toward our company
and our competitors, we turn to descriptive research which provides answers to questions
such as who, what, where, when, and how, as they are related to the research problem.
Typically, answers to these questions, are found in secondary data or by conducting surveys.
Descriptive research can sometimes provide an explanation by diagnosing differences among

competitors, but it does not provide direct evidence of causality. Descriptive research can
shed light on associations or relationships and helps the researcher select variables for a
causal study (but it cannot provide the magnitude of the effect of independent variables on the
dependent variable). Descriptive research can tell us about two variables, such as advertising
and sales, seem to be somehow associated, but it cannot provide convincing evidence that
high level of advertising cause high sales. Because descriptive research can shed light on
associations or relationships, it helps the researcher select variables for a causal study (it
cannot provide the magnitude of the effect).
There are two basic descriptive research studies (types) available to the business researcher:
 Cross-sectional studies: Cross-sectional studies measure a population at only one point

in time. Cross-sectional studies are very prevalent in business research, outnumbering
longitudinal studies and causal studies. Because cross-sectional studies are one-time
measurements they are often described as “snapshots” of the population. As an
example, many occupations, income, educational level, and so on. This sample data,
taken at one point in time, is used to describe the readership of the magazine in terms
of demographics. Cross-sectional studies normally employ fairly large sample sizes; so
many cross-sectional studies are referred to as sample surveys, sample surveys are
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cross-sectional studies whose samples are drawn in such a way as to be representative

of a specific population.
 Longitudinal Studies: Longitudinal Studies repeatedly measure the same population
over a period of time. Because longitudinal studies involve multiple measurements,
they are often described as “movies” of the population. Longitudinal studies are
employed by almost 50 percent of business using business research. To ensure the
success of the longitudinal research, researches must have access to the same
members of the sample, called a panel, so as to take repeated measurements.
Maintaining a representative panel of respondents is a major undertaking.
Type of Research Features of Research
One-time measurement, including a sample survey where

Cross-sectional
the emphasis is placed on a large, representative sample
Repeated measurements on the same sample, including a
Longitudinal traditional panel (questions remain the same) and an
omnibus panel (questions differ)
c) Causal research
Causality may be thought of as understanding a phenomenon in terms of conditional

statements of the form “if x, then y” These “if-then” statements become our way of
manipulating variables of interest. For example if the thermostat is lowered, then the air will
get cooler. If I spend more on advertising, then sales will rise. Commercial managers are
always trying to determine what will cause a change in consumer satisfaction, a gain in market
share, or an increase in sales. Unfortunately, our desire to understand our world in terms of
causal, if –then statements is very difficult, if not impossible because there are formal
conditions that must be in place before a researcher can attest to causality. Consumers are
bombarded on a daily and sometimes even hourly basis by a vast multitude of factors, all of
which could cause them to act in one way or another. Nevertheless, there is a high “reward” in
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the marketplace for even partially understanding. How are causal relationships determined?
They are determined through the use of experiments.
Causal research seeks to identify cause-and-effect relationships. When something causes an

effect (outcome), it means it brings it about or makes it happen. Rain causes grass to get wet.
Rain is the cause and wet grass is the effect. Causal inference is a conclusion that when one
thing happens, another specific thing will follow. A causal inference can only be supported
when very specific evidence exists. Three critical pieces of causal evidence are:
 Temporal sequence: deals with the time order of events. The cause must occur before
the effect/when the effect follows closely the hypothesized cause/ (the level of
advertising determines the level of sales).
 Concomitant variation: occurs when two events ‘’co-vary’’ or ‘’correlate’’ (Vary
together or occur together), meaning they vary systematically. In causal terms,
concomitant variation means that when a change in the cause occurs, a change in the
outcome also is observed. A correlation coefficient is often used to represent
concomitant variation.
Causality cannot possibly exist when there is no systematic variation between the
variables. For example, if a retail store never changes it employees’ vacation policy, then
the vacation policy cannot be responsible for a change in employee satisfaction. There is
no correlation between the two events.
On the other hand, if two events vary together, one event may be causing the other. If a
university increases its number of online MBA course offerings and experiences a
decrease in enrollment in its traditional in-class MBA offerings, the online course
offerings may be causing the decrease.
 Non-spurious association: means any co-variation between a cause and an effect is
true, rather than due to some other variables. A spurious association (a relationship
between a presumed cause and a presumed effect that occurs as a result of an
unexamined variable or set of variables/other uncontrollable variables/) is one that is
not true, often, a causal inference cannot be made even though the other two
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conditions exist because both the cause and effect have some common cause; that is,
both may be influenced by a third variable. For instance, there is a strong, positive
correlation between ice cream purchases and murder rates – as ice cream purchase
increases, so do murder rates. When ice cream sales decline, murder rates also drops.
Do people become murderers after eating ice cream? Should we outlaw (criminal) the
sale of ice cream? This would be silly because the concomitant variation observed
between ice cream consumption and murder rates is spurious. A third variation is
actually important here. People purchase more ice cream when the weather is hot.
People are also more active and likely to commit a violent crime when it is hot. The
weather, being associated with both may actually cause both. The researcher must use
logic or a theory to identify the most likely ‘’third’’ variables that would relate
significantly to both the cause and effect.
In summary, causal research should do all of the following:
 Establish the appropriate causal order or sequence of events.
 Measure the concomitant variation between the presumed cause and the
presumed effect.
 Examine the possibility of spuriousness by considering the presence of
alternative plausible causal factors.
Experiments: it is a carefully controlled study in which the researcher manipulates a proposed

cause and observes any corresponding change in the proposed effect. An experimental
variable represents the proposed cause and is controlled by the researcher by manipulating it.
Manipulation means that the researcher alters the level of the variable in specific increments.
An experiment may take place in a test-market (frequently used form of business
experimentation). A test-market is an experiment that is conducted within actual business
conditions. For instance, test-marketing of new product concepts by introducing them at
selected stores and monitoring sales and customer feedback.
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CHAPTER 6
QUALITATITATIVE & QUANTITATIVE RESEARCH (RESEARCH APPROACH)
o Qualitative research approach

o Quantitative research approach
1. Qualitative research
Qualitative research is research that addresses business objectives through techniques that
allow the researcher to provide elaborate interpretations of market phenomena without
depending on numerical measurement. Its focus is on discovering true inner meanings and
new insights. It is more researcher-dependent in that the researcher must extract meaning
from unstructured responses, such as text from a recorded interview or a collage
representing the meaning of some experiences, such as skateboarding. The researcher
interprets the data to extract its meaning and converts it to information.
Qualitative data are not characterized by numbers, and instead are textual, visual or oral; the
focus is on stories, visuals portrayals, meaningful characterization, interpretations, and other
expressive descriptions.
Any study that is conducted using an observational technique (unstructured questioning in

which there is no predetermined response) can be classified as qualitative research.
Qualitative research methodologies (tools)

a) Observation research
Observation is the systematic process of recording patterns of occurrences or behaviors

without normally questioning or communicating with the people involved (mystery shopping
is an exception). Observation requires something to observe, and because our memories are
faulty, researchers depend on recording devises such as videotapes, audiotapes, handwritten
notes, or some other tangible record of what is observed. Types of observation:
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 Direct observation: observing behavior as it occurs. For example, if we are interested in

finding out how much shoppers squeeze (crush) tomatoes to assess their freshness, we
can observe people actually picking up the tomatoes.
 Indirect observation: the researcher observes the effect or results of the behavior
rather than the behavior itself. In order to observe types of hidden behavior, such as
past behavior, we must rely on indirect observation.
 Disguised observation: here the subject is unaware that he or she is being observed.
An example of this method might be a ‘’secret shopper’’ that is used by a retail store
chain to record and report on sale clerks’ assistance and courtesy. One-way mirror
(practice of watching behaviors or activities from behind a one way mirror) and hidden
cameras are a few of the other ways that are used to prevent subjects from becoming
aware that they are being observed. It is important method because if the observes
were aware of the observation, it is possible that they would change their behavior,
resulting in observation of a typical behavior.
 Undisguised observation: here the subject is aware that he/she is the subject of
observation. Laboratory settings, observing a sales representative’s behavior on sales
calls, and people meters (a device that is attached to a television set to record when
and to what station a set is tuned) must all be used with the subjects’ knowledge.
 Structured observation: the researcher identifies beforehand which behaviors are
‘’ignored’’. It requires a minimum of effort on the part of the observer.
 Unstructured observation: places no restriction on what the observer observes. All
behavior in the episode under study is mentioned. This type of observation is often
used in exploratory research.
 Human observation: the observer is a person hired by the researcher, or, perhaps, the
observer is the researcher. However, it is sometimes possible or desirable to replace
the human observer with some form of observing devices, as in mechanical observation.
This substitution may be made because of:
 Accuracy
 Cost, or
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 Functional reasons.
Appropriate conditions for the use of observation:
 The event must occur in a short time interval. Examples include a shopping trip in a
supermarket, waiting in a teller line at a bank, or purchasing a clothing item.
 The observed behavior must occur in a public setting. Action such as cooking, playing
with one’s children, or private worshipping are not public activities.
 When the possibility of faulty recall rules out collecting information by asking the
person. Faulty recall occurs when actions or activities are so repetitive or automatic that
the respondent cannot recall specifies about the behavior under questions.
Advantages of observation research
 Observation research give the researcher insight in to actual, not reported,

behaviors.
 There is no chance for recall error. The subjects are not asked what they
remember about a certain action. Instead, they are observed while engaged in
the act.
 In some cases, observation may be the only way to obtain accurate
information. For instance, children who cannot yet verbally express their opinion
of a new toy will do so by simply playing or not playing with the toy.
 In some situations, data can be obtained with better accuracy and less cost by
using observational methods as opposed other means. For example, counts of
in-store traffic can often be made by means of observational techniques more
accurately and less expensively than by using survey techniques.
Limitations of observational research
 It is unrepresentative of the population (especially with direct observation,

small number of subjects is studied).
 Subjective interpretation required to explain the observed behavior.
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 The researcher’s inability to see beneath (under) the behavior observed and to
interrogate (question) the person on motives, attitudes, and all of the other
unseen aspects of why what was observed took place.
b) Focus group (in-depth discussion)
This is small group discussions about some topic led by a trained moderator. The goal of a
focus group is to draw out ideas, feelings, and experiences about a certain issue that would be
obscured or stifled by more structured methods of data collection.
Objectives of Focus Groups
o To generate ideas: for new product or service ideas, uses, or improvements.

o To understand consumers: such information may help in advertising copy design or in
the preparation of instruction pamphlets. This knowledge refines research problem
definitions and also helps structure questions for use in later quantitative research.
o To reveal consumer needs, motives, perceptions, and attitudes on products or
services. This application is useful in generating objectives to be addressed by
subsequent research.
o To understand findings from quantitative studies: sometimes a focus group can reveal
why the findings came out a particular way.
Advantages of focus group
 Can be done quickly

 Used to gain multiple perspectives
 Can be flexible
 Generally versatile-unlimited number of topics can be discussed.
Disadvantages of focus group
 Results are dependent on moderator (interpretation is subjective): certain perceptions

will enter in to their impressions of the research findings.
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 Results do not generalize to target population: focus group results should not be
viewed as conclusive research because the participants are not likely to be
representative of the target population.
 Difficult to use for sensitive topics.
 Cost per participant is high (expensive).
c) Depth interviews
It is a set of probing questions (investigative type of questions) posed one-on-one to a subject

by a trained interviewer so as to gain an idea of what the subject thinks about something or
why he/she behaves in a certain way. The objective is to obtain unrestrictive comments or
opinions. The interviewer (a trained field worker) may tape record responses or may take
detailed notes. Depth interviews are versatile (has many uses), but they require careful
planning, training, and preparations.
Advantages of depth interviews
 Gain considerable insights (understanding) from each individual.

 Good for understanding unusual behaviors.
Disadvantages of depth interviews
 Results depend on researcher’s interpretation.

 Results not meant to generalize.
 Very expensive.
d) Projective techniques
Projective techniques, borrowed from psychoanalysis, seek to explore hidden motives for
behaving in some way by asking participants to project/explain themselves in to a situation
and then to respond to specific questions about the situation.
Participants are placed in simulated activities (imitated environment or activities) in the hopes
that they will divulge (reveal) things about themselves that they might not reveal under direct
questioning. Projective techniques are appropriate in situations in which the researcher is
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convinced that respondents will be hesitant to relate their true opinions. Such situations may
include undesirable behaviors such as smoking or alcohol consumption. Projective techniques
include:
 Word association: the interviewer reads words to a respondent who then answers with
the first word that comes to his or her mind. For example, a cosmetic manufacturer
might ask consumers to respond to the following words as potential names for a new
perfume: infinity, encounter, flame, desire, and precious, erotic. One of these words or
a synonym suggested by respondents might then be selected as the brand name.
 Sentence and story completion test: respondents are given incomplete sentences and
asked to complete them in their own words. A few examples of incomplete sentences
follow:
 Best buy is ……………………..
 The people who shop at Best buy are …………………….
 Best buy showed really ……………………
 I don’t understand why Best buy doesn’t ………………..
 Someone who drinks hot tea is …………………..
 Tea is good to drink when ……………………
 Making hot tea is ………………………….
 My friends think tea is …………………
For instance, the theme identified for the above fifth incomplete sentence might be ‘’healthy’’,
which would signify that tea is perceived as a drink for those who are health conscious. Given
this information, Gumero tea factory might deduce that there is room to capitalize on the hot
tea market with teens.
 Cartoon tests/thematic appreciation test: consists of two characters with balloons,

similar to those seen in comic books; one balloon is filled with dialogue, and the other
balloon is blank. The respondent is asked to fill in the blank balloon.
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 Collages: respondents assemble pictures that represent their thought/feelings (photo

sort in which a respondent sorts photos of different types of people, identifying those
people who she or he feels would use the specified product or service). Etc.
Uses of qualitative research
o When it is difficult to develop specific and actionable problem statements or research
objectives.
o When the research objective is to develop an understanding of some phenomena in
great detail and in much depth (e.g., human motivations).
o When the research objective is to learn how a phenomena occurs in its natural setting
or to learn how to express some concept in colloquial (idiomatic, conversational,
everyday) terms (how do consumers actually use a product?).
o When some behavior the researcher is studying is particularly context dependent.
o When a fresh approach to studying some problem is needed.
2. Quantitative research
Quantitative research is research that addresses research objectives through empirical

assessments that involve numerical measurement and analysis. It represents phenomena by
assigning numbers in an ordered and meaningful way.
Quantitative research sometimes referred to as ‘’survey research’’. Quantitative research is a

research involving the use of structured questions where the response options have been
predetermined and a large number of respondents are involved.
Quantitative research methodologies
There are four different types of quantitative research methods:
 Survey Research
Survey Research is the most fundamental tool for all quantitative outcome research
methodologies and studies. Surveys used to ask questions to a sample of respondents, using
various types such as online polls, online surveys, paper questionnaires, web-intercept
surveys, etc. Every small and big organization intends to understand what their customers think
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about their products and services, how well are new features faring in the market and other
such details.
By conducting survey research, an organization can ask multiple survey questions, collect data
from a pool of customers, and analyze this collected data to produce numerical results. It is the
first step towards collecting data for any research.
This type of research can be conducted with a specific target audience group and also can be
conducted across multiple groups along with comparative analysis. A prerequisite for this type
of research is that the sample of respondents must have randomly selected members. This
way, a researcher can easily maintain the accuracy of the obtained results as a huge variety of
respondents will be addressed using random selection. Traditionally, survey research was
conducted face-to-face or via phone calls but with the progress made by online mediums such
as email or social media, survey research has spread to online mediums as well.
There are two types of surveys, either of which can be chosen based on the time in-hand and
the kind of data required:
Cross-sectional surveys: Cross-sectional surveys are observational surveys conducted in

situations where the researcher intends to collect data from a sample of the target population
at a given point in time. Researchers can evaluate various variables at a particular time. Data
gathered using this type of survey is from people who depict similarity in all variables except
the variables which are considered for research. Throughout the survey, this one variable will
stay constant.
 Cross-sectional surveys are popular with retail, SMEs, healthcare industries. Information
is garnered without modifying any parameters in the variable ecosystem.
 Using a cross-sectional survey research method, multiple samples can be analyzed and
compared.
 Multiple variables can be evaluated using this type of survey research.
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 The only disadvantage of cross-sectional surveys is that the cause-effect relationship of

variables cannot be established as it usually evaluates variables at a particular time and
not across a continuous time frame.
Longitudinal surveys: Longitudinal surveys are also observational surveys but, unlike cross-
sectional surveys, longitudinal surveys are conducted across various time durations to observe
a change in respondent behavior and thought-processes. This time can be days, months, years,
or even decades. For instance, a researcher planning to analyze the change in buying habits of
teenagers over 5 years will conduct longitudinal surveys.
 In cross-sectional surveys, the same variables were evaluated at a given point in time,
and in longitudinal surveys, different variables can be analyzed at different intervals of
time.
 Longitudinal surveys are extensively used in the field of medicine and applied sciences.
Apart from these two fields, they are also used to observe a change in the market trend,
analyze customer satisfaction, or gain feedback on products/services.
 In situations where the sequence of events is highly essential, longitudinal surveys are
used.
 Researchers say that when there are research subjects that need to be thoroughly
inspected before concluding, they rely on longitudinal surveys.
 Correlational research
A comparison between two entities is invariable. Correlation research is conducted to establish

a relationship between two closely-knit entities. This research method is carried out to give
value to naturally occurring relationships, and a minimum of two different groups are required
to conduct this quantitative research method successfully. Without assuming various aspects, a
relationship between two groups or entities must be established.
Researchers use this quantitative research design to correlate two or more variables using
mathematical analysis methods. Patterns, relationships, and trends between variables are
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concluded as they exist in their original set up. The impact of one of these variables on the
other is observed along with how it changes the relationship between the two variables.
Researchers tend to manipulate one of the variables to attain the desired results.
Ideally, it is advised not to make conclusions merely based on correlational research. This is
because it is not mandatory that if two variables are in sync that they are interrelated.
Example of Correlational Research Question: the relationship between stress and depression.
 Causal-comparative research
This research method mainly depends on the factor of comparison. Also called quasi-
experimental research, this quantitative research method is used by researchers to conclude
the cause-effect equation between two or more variables, where one variable is dependent
on the other independent variable. The independent variable is established but not
manipulated, and its impact on the dependent variable is observed. These variables or groups
must be formed as they exist in the natural set up. As the dependent and independent variables
will always exist in a group, it is advised that the conclusions are carefully established by
keeping all the factors in mind.
Causal-comparative research is not restricted to the statistical analysis of two variables but
extends to analyzing how various variables or groups change under the influence of the same
changes. This research is conducted irrespective of the type of relation that exists between two
or more variables. Statistical analysis is used to distinctly present the outcome obtained using
this quantitative research method.
Example of Causal-Comparative Research Question: the impact of drugs on a teenager.
 Experimental research
Also known as true experimentation, this research method is reliant on a theory. Experimental
research, as the name suggests, is usually based on one or more theories. This theory has not
been proven in the past and is merely a supposition. In experimental research, an analysis is
done around proving or disproving the statement. This research method is used in natural
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sciences. Traditional research methods are more effective than modern techniques.
There can be multiple theories in experimental research. A theory is a statement that can be
verified or refuted. After establishing the statement, efforts are made to understand whether it
is valid or invalid. This type of quantitative research method is mainly used in natural or social
sciences as there are various statements which need to be proved right or wrong.
Comparison between qualitative and quantitative research
Research aspect Qualitative research Quantitative research

Discover ideas, used in exploratory
Test hypotheses or specific research
Common purpose research with general research
questions
objectives
Observe and interpret unstructured, Measure and test structured
Data collection approach
free-form response categories provided
Research is intimately involved. Researcher uninvolved. Results are
Researcher independence
Results are subjective. objective.
Large samples to produce
Small samples-often in natural
Samples generalizable results (results that
settings.
apply to other situations).
Descriptive and causal research
Most often used Exploratory research design
design.
Pluralistic research: is the combination of qualitative and quantitative research

methods in order to gain the advantages of both. With pluralistic research, it is
common to begin with exploratory qualitative techniques as, for example, in-depth
interviews of selected dealers or a series of group discussion with customers in order to
understand how they perceive your product and service as compared to those of
competitors.
The qualitative phase serves as a foundation for the quantitative phase of the research project
because it provides the researcher with first-hand knowledge of the research problem. Armed
with this knowledge, the researcher’s design and execution of the quantitative phase is
invariably superior to what it might have been without the quantitative phase.
With pluralistic research, the qualitative phase serves to frame the subsequent quantitative
phase, and in some case, a qualitative study to help the researcher understand the findings in
the quantitative phase.
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CHAPTER 7
MEASURMENT IN RESEARCH
o Basic concepts in measurement

o Levels of measurements of scale
o Scaled response question forms
1. Basic concepts in measurement
Measurement is determining the amount or intensity of some characteristics of interest to the

researcher. We are measuring properties, sometimes called attributes or qualities of objects.
Objects include consumers, brands, stores advertisements, or whatever specific features or
characteristics of an object that can be used to distinguish it from another object. For example,
object of measurement is consumer; properties of interest to a manager who is trying to
define who buys a specific product are a combination of demographics such as age, income
level, gender, and buyer behavior such as buyer impressions or perceptions of various brands.
There are two types of properties:
 Objective: physically verifiable characteristics such as age, income etc.

 Subjective: mental constructs such as a person’s attitude or intensions (measured using
various scales that are using range of questions).
2. Levels of measurement of scales
a) Nominal scales: use only labels (they possess only the characteristics of description).
Description is the use of descriptor or label. For example,
 ‘’Yes’’ and ‘’no’’, ‘’agree’’, and ‘’disagree’’
 Respondents age
 Respondents’ occupation (like banker, medical doctors, etc.)
b) Ordinal scale: this is ranking the respondents or their responses. It has the
characteristics of order. Order is the relative sizes of the descriptors. It includes
‘’greater than’’, ‘’less than’’ or ‘’equal to’’. For example, a respondent’s least-preferred
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brand is ‘’less than’’ his/her most-preferred brand. Not all scale possess order
characteristics. For instance, is a ‘’buyer’’ greater than or less than a ‘’non-buyer’’? We
have no way of making a relative size distinction.
c) Interval scales: are those scales in which the distance between each descriptor is
known. It has the characteristics of distance. This is when absolute differences between
the descriptors are known and may be expressed units. The respondent who purchases
three bottles of diet cola buys two more than the one who purchases only one bottle.
A three car family owns one more automobile than a two car family. Note that, when a
characteristic of distance exists, we are also given order. The distance is normally
defined as one scale unit (one unit away from the preceding one). Let us see example,
 A coffee brand rate ‘’3’’ in taste is one unit away from one rated ‘’4’’.
 If you were asked to evaluate a store’s sales people by selecting a single
designation from a list of ‘’extremely friendly’’, ‘’very friendly’’, ‘’somewhat
friendly’’, ‘’somewhat unfriendly’’, ‘’very unfriendly’’, or ‘’extremely unfriendly’’,
the researcher would probably assume that each designation was one unit away
from the preceding one.
d) Ratio scales: are one in which a true zero origin exists such as an actual number of
purchases in a certain time period, dollars spent, miles traveled, number of children, or
years of college education. One person may spend twice as much as another, or travel
one-third as far (allows constructing and comparing ratio). Origin exists if there is a
unique beginning or trues zero point for the scale. Thus, ‘’0’’ is the origin for all age
scale just as it is for the number of miles traveled to the store or for the number of
bottles of soda consumed. All scales have a true zero point for the property they are
measuring. Many scales used by researchers have arbitrary neutral points, but they do
not possess origins. For instance, when a respondent says ‘’Not opinion’’ to the
question, ‘’Do you agree or disagree with the statement that Lexus is the best car on the
road today?’’, we cannot say that the person has a true zero level of agreement. If a
scale has a higher-level property, it also has all lower-level properties. But the opposite
is not true.
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3. Importance of measurement: it determines what information required about

the object of study (level of measurement) and dictates the types of statistical
analysis to be used. Let us see the following summary table:
Levels of measurement Statistical tools

Nominal scale
 Brands
 Male-female
Percentage, mode, chi-square test etc.
 Store types
 Sales territories
Ordinal scale
 Attitudes
 Preferences
Percentiles, median, rank-order correlation etc.
 Occupation
 Social class
Interval scale
 Attitudes
Range, mean, standard deviation, product-movement
 Opinions
correlation etc.
 Index numbers
Ratio scale
 Age
 Costs Geometric mean, harmonic mean, coefficient of
 Number of customers variation, regression etc.
 Sales
4. Scaled response question forms
Scaled-response questions are questions that have a predefined answer list with options that
are incrementally related to each other with the purpose of measuring the intensity to which
a respondent feels toward or about something. For example, you may want to ask your
customers how they rate the taste of a supermarket’s own brand tomato soup; the scaled-
response list might be on a scale of 1 to 7, where 1 means they do not like the taste at all, and
7 means they completely love the taste. Scaled questions can be based on any number of
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responses, but are often 5, 7 or 10 point scales. Scale is designing questions to measure the
subjective properties of an object.
There are different theories about which ‘length of scale’ to use to gain the best accuracy, but
the general consensus is that you should try and use, wherever possible, the same number of
points for all scaled-response questions in a particular research project.
Another example of a scaled-response question is satisfaction – these question types are used
a lot in market research, particular in customer satisfaction studies. You may want to ask one or
more questions based on the same scale, for example, get respondents to rate how satisfied
they were with both their in store and telephone customer experience – this might be on a
scale of 1 to 5, where 1 is completely unsatisfied and 5 is completely satisfied.
Another scaled-response question used a lot is recommendation; this asks respondents how
likely they are to recommend a product, service or company to their friends and family. It is
often rated on a scale of 0 to 10 and the results can then be used to calculate net promoter
score (NPS). This particular scaled-response question is used across many different research
projects, both ad hoc and tracker studies, meaning that it can be compared across different
products, companies, countries and sectors.
5. Validity and reliability of marketing research
Validity: addresses the issue of whether what the researcher was trying to measure was
actually measured. Validity of a measure refers to the extent to which the measurement
instrument and procedure are free from both systematic and random error. Random error
arises from variation in the difference between the sample value and the value of the
population (better take large sample to solve this problem). Whereas, systematic error (non-
sampling error results from mistakes or problems in the research design or from flaws in the
execution of the sample design. To minimize those type of error:
Define the population properly

Take relevant sample unit
Take care in sample selection
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Collect relevant information regarding the topic

Collect data from reliable sources
Questionnaire should be prepared based on research objectives
Questionnaire should be pretested
Reliability: this is a measurement scale that provides consistent results over time. Reliable
instruments provide stable measures at different time under different conditions. It is the
degree to which measures are free from random error. Survey often attempt to obtain
information from a representative cross section of a target population. The goal is to make
inferences about the total population based on the responses given by respondents sampled.
Even when all aspects of the sample are investigated properly, the results are still subject to a
certain amount of random error because of chance variation. Chance variation is the
difference between the sample value and the true value of the population mean. This error
cannot be eliminated, but it can be reduced by increasing the sample size.
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CHAPTER 8
SOURCES & METHODS OF DATA COLLECTION (SECONDARY AND PRIMARY DATA

COLLECTION SOURCES): DESIGNING A QUESTIONNAIRE
o Secondary data and its sources

o Primary data and its sources
 Secondary data
Secondary data consists of information that has already been gathered and might be relevant
to the problem at hand. Research projects often begin with secondary data. Secondary data
are gathered and recorded by someone else prior to (and for purposes other than) the current
project. Secondary data usually are historical and already assembled. They require no access
to respondents or subjects.
Objectives for secondary – data research designs
 Fact – finding
 Identifying consumption patterns: this is to uncover all available information
about consumption patterns for a particular product category or to identify
demographic trends that affect an industry.
 Tracking trends: market tracking is the observation and analysis of trends in
industry volume and brand share over time. Almost every large consumer goods
company routinely investigates brand and product category sales volume using
secondary data. This type of analysis typically involves comparisons with
competitors’ sales or with the company’s own sales in comparable time
periods. It also involves industry comparisons among different geographic areas.
 Model building: this is the use of secondary data to help specify relationships between
two or more variables; can involve the development of descriptive or predictive
equations.
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 Estimating market potential for geographic areas: in many cases exact figures
may be published by a trade association or another source. However, when the
desired information is unavailable, the researcher may estimate market
potential by transforming secondary data from two or more sources.
 Forecasting sales: accurate sales forecasts, especially for products in mature,
stable markets, frequently come from secondary-data research that identifies
trends and extrapolates (infer) past performances in to the future.
 Analysis of trade areas and sites: managers routinely examine trade areas (sites)
to select the best locations for retail or wholesale operations.
 Data base marketing: it is the use of customer databases to promote one-to-one
relationships with customers and create precisely targeted promotions.
 Data mining: is the use of powerful computers to dig through volume of data to
discover patterns about an organization’s customers and products.
 Market basket analysis: is a form of data mining that analyzes anonymous point-
of-sale transaction databases to identify coinciding purchases or relationships
between products purchased and other retail shopping information (CRM).
 A data-mining application of interest to some researchers is known as customer
discover, which involves mining data to look for patterns identifying who is likely
to be a valuable customer.
 The use of data mining to detect sequence patterns is a popular application
among direct marketers, such as catalog retailers. Data mining requires
sophisticated computer resources, and it is expensive.
Sources of secondary data: secondary data can be classified as either internal to the
organization or external. Let us discuss them:
 Internal data sources: often companies set up intranets so that employees can use web
tools to store and share data within the organization. Internal data sources includes:
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o Sources from the firm’s accounting system: sales by account, product and
region; information related to orders received, back orders, and unfulfilled
orders.
o Sales forecast
o Sales people’s call reports
o Customer complaints
o Service records
o Warranty card returns, and other records.
 External data sources: These are data created, recorded, or generated by an entity
other than the researcher’s organization. Today, computerized data archives and
electronic data interchange make external data as accessible as internal data. Because
secondary data have value, they can be bought and sold like other products. External
data sources include:
o Libraries: provides collection of books, journals, newspapers, and so on for
reading and reference. They also stock many bibliographies, abstracts, guides,
directories, and indexes, as well as offer access to basic databases (public or
university facilities).
o The internet: much secondary data is conveniently available over the internet
(e.g., www.census.gov).
o Vendors: many external producers make secondary data available directly from
the organizations that produce the data or through intermediaries, which are
often called vendors. Vendors allow managers to access thousands of external
databases via desktop computers and telecommunications systems. They
specialize in providing information about thousands of companies’ financial
situations and operations.
o Producers: publisher of books and periodicals, government sources, media
sources, trade association sources, and commercial sources.
 Books and periodicals: some researchers consider books and periodicals
found in a library to be essential secondary data source. A researcher
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who finds books on a topic of interest obviously is off to a good start.

Professional journals, such as Journal of Marketing and Journal of
Advertising research, are useful sources of information about markets.
 Government sources: most of the data published by the federal
government can be counted on for accuracy and quality of investigation
(e.g., Central Statistical Agency).
 Media sources: information on a broad range of subjects is available
from broadcast and print media. Data about the readers of magazines
and the audiences for broadcast media typically are profiled in media kits
and advertisements (EBC, The reporter, etc.).
 Trade association sources: trade associations, such as the Food
Marketing Institute, serve the information needs of a particular industry.
The trade association collects data on a number of topics of specific
interest to firms, especially data on market size and market trends.
 Commercial sources: numerous firms specialize in selling and/or
publishing information. Many of these organizations offer information in
published formats and as CD-ROM or Internet databases. They provide
data on: market share; demographic and census updates; consumer
attitude and public opinion research; consumption and purchase
behavior data; and advertising research-readership and audience data.
Advantages of secondary data
Secondary data is available. Obtaining secondary data is almost always faster and less
expensive than acquiring primary data.
Money and time will be saved.
Secondary data are essential in instances when data cannot be obtained using primary
data collection procedures.
Secondary data may help to clarify or redefine the problem during the exploratory
research.
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Secondary data may actually provide a solution to the problem. There is always the
possibility that someone else has addressed the identical problem or a very similar one.
Secondary data may provide necessary background information and build credibility
for the research report.
Secondary data may provide the sample frame – e.g., customer list from data base.
Disadvantages of secondary data
Lack of relevance – outdated information

Variation in definition of terms
Different units of measurement
Inaccuracy – lack of information to verify the data’s accuracy
Insufficiency – the information may not be sufficient to make decision or bring closure
to a problem.
 Primary data
Primary data are survey, observation, and experiment data collected to solve the particular
problem under investigation. Now let us discuss SURVEY research.
Survey research: involves an interviewer (except in mail and internet surveys) who interacts
with respondents to obtain facts, opinions, and attitudes. A questionnaire is used to insure an
orderly and structured approach to data gathering.
Questionnaire: is used to ask respondents questions. Set of questions designed to generate

the data necessary to accomplish the objectives of the research project (also called an
interview schedule or survey instrument). The questionnaire is the production line of
marketing research. It is here that the product, be it good or bad, is created. The questionnaire
is the tool that creates the basic product (respondent information).
Functions of questionnaire
It translates the research objective in to specific questions.
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It standardizes those questions and the response categories, so every participant

responds to identical stimuli.
It fosters cooperation and keeps respondents motivated throughout the interview.
Questionnaires serve as permanent records of the research.
Questionnaires speed up the process of data analysis.
Used in reliability assessment and in follow up validation of respondents, participants in
the survey.
Criteria for a good questionnaire
It should provide the necessary decision making information. The managers who will
be using the data should always approve the questionnaire.
It should consider the respondent.
 Avoid poorly designed, confusing, and lengthy surveys.
 The questionnaire designer must strip away any marketing jargon and business
terminology that may be misunderstood by the respondent. Use simple,
everyday language.
 It should be designed explicitly for the intended respondents.
It should meet editing and coding requirements.
Question format/type (Response format)
 Open-ended questions: it presents no response options to the respondent. It can be

un-probed format (seeks no additional information from the respondent) or probed
format (seeks additional information from the respondent. For instance, Can you think
of anything more?). The respondent replies in his/her own words. In other words, the
researcher does not limit the response choices. It provides the researcher with a rich
array of information. It may suggest additional alternatives not listed in a closed-ended
response format. Editing and coding can consume great amount of time and money if
done manually.
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 Close-ended questions: it provides response options on the questionnaire. It can be

dichotomous (has only two response options such as ‘’Yes’’ or ‘’No’’) or multiple
category closed ended questions or multiple-choice questions (has more than two
options for respondents). Questions that require the respondent to choose from a list of
answers. Probing is used, but a list is never read.
 Scaled-response questions: these are closed-ended questions where the response
choices are designed to capture intensity of feeling. It can be unlabeled (the scale may
be purely numerical or only the end points of the scale are identified) or labeled (use a
scale in which all of the scale positions are identified with some descriptor).
Scaling is a procedure for assigning numbers to properties of an object in order to impart some
numerical characteristics to the properties in question. Un-dimensional scales are designed to
measure only one attribute of a concept, respondent, or object. Multi-dimensional scales are
based on the premise that a concept, respondent, or object might be better described using
several dimensions. For example, target consumers for Jaguar automobiles may be defined in
three dimensions: level of wealth, degree of price sensitivity, and appreciation of fine motor
cars. Let us see some popular type of scaled-response questions:
a) Semantic differential scales: begins with determination of a concept to be rated, such

as the image of a company, brand, or store. The researcher selects dichotomous
(opposite) pairs of words or phrases that could be used to describe the concept.
Respondents then rate the concept on a scale (usually 1 to 7). The mean of the
responses for each pair of adjectives is computed, and the means are plotted as a
profile, or image. See example below:
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Adjective 1 Means of each adjective pair Adjective 2

1 2 3 4 5 6 7
Modern ● ● ● ● ● ● ● Old fashioned
Aggressive ● ● ● ● ● ● ● Defensive
Reliable ● ● ● ● ● ● ● Unreliable
Nice to deal with ● ● ● ● ● ● ● Hard to deal with
Successful ● ● ● ● ● ● ● Unsuccessful
Interesting ads. ● ● ● ● ● ● ● Uninteresting ads.
b) Likert scales: the scale consists of a series of statements expressing either a favorable
or an unfavorable attitude toward the concept under study. The respondent is asked to
indicate the level of his/her agreement or disagreement with each statement by
assigning it a numerical score. The score are then totaled to measure the respondent’s
attitude (labeled scale). In the world of marketing research, likert-scales are very
popular. See example below:
2 1 0 -1 -2
Attitudes SA A N DA SDA
1. KOJJ products are hygienic
2. KOJJ products are reasonably priced
3. KOJJ products are easily available
4. KOJJ products are easily identifiable
Where: SA = Strongly Agree, A = Agree, N = Neutral, DA = Disagree, and SDA = Strongly

Disagree.
Considerations in choosing a question-response format
 The nature of the property being measured
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 Previous research studies

 Data collection mode: For example, a mail or other self-administered questionnaire
accommodates scaled-response questions-well because the respondent can see the
response categories on the questionnaire itself.
 The ability of the respondent: if respondents are reluctant to verbalize their opinions,
the open-ended option is not a good choice.
 The scale level desired: the statistical analysis depends on the scale level.
Important points in questionnaire design
 The wording must be clear

 Ambiguous terminology should be avoided
 Clarity in wording – avoid ambiguous terminology, use reasonable, vernacular
(ordinary) language adjusted to the target group, and ask only one question at a
time.
 The researcher should avoid asking two questions in one, sometimes called a
double-barreled question.
 Avoid biasing the respondent
 Leading questions (such as ‘’weren’t you pleased with the good service you
received last night at the Holiday Inn?’’) that give away the research goal or
sponsor identity should be avoided.
 Sponsor identification early in the interviewing process can distort answers. An
opening statement such as ‘’we are conducting a study on the quality of banking
for Northeast National Bank and would like to ask you a few questions’’ should
be avoided.
 Consider the respondent’s ability to answer the questions: factors affecting this ability
include lack of required information, forgetfulness, or incomplete recall ability.
 Consider the respondent’s willingness to answer the question: embarrassing, sensitive,
or threatening questions divergent from respondent’s self-image may cause them to
refuse to answer.
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Questionnaire organization (questionnaire sequence)
The introduction: serves five functions

 Identification of the sponsor
 Purpose of the survey
 Explanation of respondent selection
 Request for participation/provide incentive
 Screening of respondent
Screener’s questions (qualifying questions): questions used to identify appropriate
respondents. For example, have you been snow skiing in the past 12 months? Do you
own a pair of skis?
First few questions: warm-ups – easy to answer questions show the respondent that
the survey is simple. Prompters (short encouraging statements to rebuild respondent
interest) should be used. For example, what brand of skis do you own? How many years
have you owned them?
First third questions: transitions-questions related to research objectives require
slightly more effort. For example, what features do you like best about the skis?
Second third: difficult and complicated questions. For example, Following are 10
characteristics of snow skis. Please rate your skis on each characteristic, using the scale
below.
Last third: classifying and demographic questions. For example, what is the highest level
of education you have attained?
Evaluate, pre-test and revise the questionnaire. Pre-test is trial run of a questionnaire.
Survey modes (types)
a) Person administered surveys: an interviewer reads questions to the respondent and

records his/her answer. The techniques of person administered survey include the
following:
o In-home interviews: interview conducted in the home of the respondent. It is
important when:
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 Personal contact is essential

 The in-home environment is conducive to the questioning process.
o Mall intercept interviews: in which the respondent is encountered and
questioned while he/she is visiting a shopping mall (large departmental
stores). It has acquired an advantage of a major role as a survey method due to
its ease of implementation and low cost. The disadvantages include:
 Sample representativeness is an issue. Some people shop at malls more
frequently than others and therefore have a greater chance of being
interviewed.
 A shopping mall does not have a comfortable environment that is
conducive to rapport (comfortable relationship) and close attention to
details. The respondents may feel uncomfortable.
o In-office interviews: take place in person while the respondent is in his/her
office. In-office personal interviews incur relatively high costs.
o ‘’Traditional’’ telephone interview: if physical contact is not necessary,
telephone interviewing is an attractive option. Let us see the advantages:
 It has the potential to yield a very high quality sample.
 Telephone surveys have very quick turnaround times (several interviews
per hour).
The shortcomings/disadvantages include:
 The respondent cannot be shown a product, prototypes,

advertisements, packages, or anything else.
 It does not permit the interviewer to make the various judgments and
evaluation that can be made by the face-to-face interviewer.
 The researcher is more limited in the quantity and type of information
he/she can obtain.
 The growing use of answering machines and caller recognition devices
being adopted by consumers.
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b) Computer-administered interviews: here, either the computer assists an interview, or

it interacts directly with the respondent. In the case of internet questionnaires, the
computer acts as the medium by which potential respondents are approached, and it is
the means by which respondents return their completed questionnaire. Computer-
administered interview techniques include:
Computer Assisted Telephone Interview (CATI): the interviewer reads the question to
the respondent enters the response code, and the computer moves on the next
appropriate question. The human interviewer is just the ‘’voice’’ of the computer. It has
advantages of cost savings, quality control, and time savings over the paper-and-pencil
method.
Fully computerized interview: in which the survey is is administered completely by a
computer. In the research industry, this approach is known as CATS, completely
automated telephone survey.
Now let us see the advantages and the disadvantage of computer-administered interviews.
The advantages include:
 Speed: it is much faster than the human interview approach.

 Error-free interviews: guarantees zero interviewer errors.
 Use of pictures, videos, and graphics: respondents can see the product in
use or can be shown a wide range of visual displays.
 Real-time capture of data: the information provided by respondents is
directly entered in to a computer’s data storage system and can be
accessed for tabulation or other analysis at completed in a matter of
minutes.
 Reduction of ‘’interview evaluation’’ concern in respondent: some people,
when they are involved in responding to questions in a survey, become
anxious about the possible reaction of the interviewer to their answers.
Respondents will provide more truthful answers to potentially sensitive
topics when interacting with a computer.
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The disadvantage includes: significant costs involved in computer design, programming, and set
up.
c) Self-administered surveys: the respondent completes the survey on his/her own.

There is no agent human or computer administering the interview. So, the respondent
reads the questions and responds directly on the questionnaire. Self-administered
survey techniques include:
o Group self-administered survey: administering a questionnaire to respondents
in groups, rather than individually, for convenience or to gain certain economies.
o Drop off survey: in which the survey representative approaches a prospective
respondent, introduces the general purpose of the survey to the prospect, and
leaves it with the respondent to fill out in his/her own.
o Mail survey: questions are mailed to prospective respondents who are asked to
fill them out and return them to the researcher by mail.Used to access very
specific groups of target respondents. It is the least expensive survey method.
The major problems include:
 Non-response, which refers to questionnaires that are not returned, will
be high.
 Self-selection bias, the sample gained through this method is non-
representative of the general population.
The advantages of self-administered surveys include:
 Reduced cost
 Respondent control: a respondent should be relaxed while responding.
 No interviewer evaluation apprehension: respondents may feel more at ease.
The disadvantages of self-administered surveys include:
 Respondents may not complete the survey.

 Respondents may answer questions erroneously.
 Respondents may not respond in a timely manner.
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 Respondents may refuse to return the survey at all.
Factors to select survey types
Researcher’s resources and objectives

 Survey data collection time horizon: some approaches, such as mail surveys,
door-to-door, and personal interviews require long time periods; whereas
other, principally telephone studies and mall intercept surveys, typically take
much less time.
 Data collection budget: if there is budget constraint, self-administered survey is
better.
 Desired quality of data collected
 Mail surveys suffer from low response and self-selection problems.
 For sensitive topics, the face-to-face alternatives may create
embarrassment for the respondent, who will then give socially desirable
answer rather than the truth.
Respondent characteristics
 Incidence Rate (IR): IR is the rate of occurrence of response. IR =
sample/population, is the percentage of people in the general population that
fits the qualifications of those people the researcher desires to have interviewed.
Telephone interviewing offers an efficient device to screen the population and
identify low-incidence prospective respondents.
 Willingness to participate: this is refusal rate. People find it more difficult to
refuse a face-to-face request to participate than to decline a telephone request
or a mailed questionnaire.
 Ability to participate: personal contact should increase the ability of prospective
respondents to participate because respondents will make time available more
readily when approached in person.
 Diversity of respondents: this is the degree to which some key trait is possessed
by prospective respondents. The more diverse the target group, the greater the
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necessity for the researcher to use a person-administered approach to solicit the

cooperation of the prospective respondents.
Characteristics of questions asked by researchers
 Complexity of tasks: the more complex the tasks and preparation activities in
the interview, the greater the need for personal administration.
 Amount of information required per respondent: the more information per
respondent required, self-administered survey will be used.
 Topic sensitivity: for sensitive issues, face-to-face interviews are less appropriate
than alternatives such as telephone interviews or computer-administered
interviews will be better.
Advantages of surveys
Standardization: uniform questions across respondents.

Ease of administration
Ability to tap the ‘’unseen’’: much observation is unobservable and requires direct
questions.
Suitability to tabulation and statistical analysis
Sensitive to subgroup difference: respondents can be divided into segments or
subgroup for comparisons in the search for meaningful differences.
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CHAPTER 9
DETERMINING THE SAMPLE PLAN AND SIZE
o Basic concepts in sampling

o Basic sampling methods
o Methods of determining sample size
o Computing the sample size using the confidence interval approach
1. Basic concepts in sampling
Sampling refers to the process of obtaining information from a subset (a sample) of a larger
group (the universe or population). Sample is a subset of all the members of a population of
interest. It used to make estimate about various characteristics of the total population. The
researcher may not be able to obtain a complete and accurate list of the entire population, or
certain members of the population may refuse to provide.
Population (population of interest): is the entire group of people about whom the researcher
needs to obtain information. Census data are obtained from or about every member of the
population of interest.
Steps in sampling plan
Define the population of interest - often stated in terms of:

 Geographic area (city, country etc.)
 Demographic characteristics (age, gender etc.)
 Product or service usage characteristics (user/non user), and/or awareness
measure (aware of company ad Or no).
Choose data collection method
Identify sampling frame (SF)
 SF is a list of the members or elements of the population from which units to be
sampled are be selected. Unfortunately, there usually are no such lists.
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 The unit of analysis is the subject of the study about which an analyst may
generalize. For example, the population for a study may be defined as those
individuals who have spent two or more hours on the internet in the past
week; there can be no complete listing of these individuals (random digit
dialing).
 Select a sampling method: this is the scientific procedure of selecting those
sampling units. It is of two types – probability and non-probability sampling. It
will depend on:
 The objective of the study
 The financial resources available
 Time limitations
 The nature of the problem under investigation
2. Basic sampling methods
Sampling methods include probability and non-probability sampling.
Probability sampling
It is selected in such a way that every element of the population has a known, non-zero
likelihood of selection. The following are probability sampling:
 Simple random sampling: all members of the population would have an equal chance
of selection and it may be used in marketing studies when the entire population is
listed and the sample might be chosen readily by some randomizing method (uses
table of random numbers). We use the following formula:
Population of selection = sample size/population size
 Systematic sampling: involves selecting every nth unit from the largest population list
after the beginning units is chosen at random. A random starting point should be used.
The following formula can be used:
Skip interval = population list size/sample size
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 Stratified sampling: is based on the concept that a homogeneous population produces

samples with smaller sampling errors than does a heterogeneous population. Then
specified number of units is chosen from each of the groups, or strata, by random
means. It can be proportionate or disproportionate.
 Cluster sampling: the initial sampling of groups of elements-clusters-developed
followed by the selection of elements within each selected cluster randomly. This is
used when lists of a population of a city, state, or of a nation, for example, may not be
available; or what is available is out of data or otherwise inadequate.
Non-probability sampling
These are those in which specific elements from the population have been selected in a non-
random manner. The following are non-probability sampling:
Convenience samples: this is used when people can easily be accessible.

Judgment samples: this is the researcher’s judgment (educated guess).
Quota sampling: this is when established quota for subgroups is used.
Snowball samples: this is when previous respondent provide additional respondent
list.
3. Methods of determining sample size
 Arbitrary approach: uses a ‘’rule of thumb’’ to determine the sample size (5% of the
population is used).
 Conventional approach: this might be an average of the sample sizes of similar studies.
It might be the largest sample size of previous surveys. It might be equal to the sample
size of a competitor’s survey.
 Cost basis approach: the sample size is determined bycost factors that ignore the value.
Hence, the sample size (n) = budget/cost per participant.
 Statistical approach: the type of statistical analysis determine ‘’n’’ (e.g., ANOVA, Chi-
square etc.).
 Confidence interval approach: it applies the concept of

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 Variability: the amount of dissimilarity in respondent’s answers to a

particular question. Variability measured by standard deviation (SD).
SD = Ԑ (xi – mean)2/n-1
 Confidence interval: a range whose end points define a certain percentage of
the responses in a question.
 Sampling distribution, and
 Standard error of a mean: indicates how far away from the true population
value a typical sample result is expected to fall. Ways to calculate:
 Standard error of the mean
S x = S/ n , where S x = standard error of the mean, S = standard

deviation of the sample, and n = sample size. Let us do the following example:
Assume that in a driving survey a standard deviation of 3000 miles was found with a sample of
100 drivers. Find the standard deviation error.
S x= 3000/ 100 = 300, this shows that the sample value is expected to fall 300, miles away
from the true population value.
 Standard error of a percentage (Sp)
Sp = p x q/n , where Sp = standard error of a percentage, p =

percentage found in the sample, q = 100 – p (or 1 – p) depending on how p is
given, and n = sample size. Let us see the following example:
Referring to the example given above, find the standard error of a percentage assuming that
40% of the 100 drivers is dictated that they had radical tries on their cars.
Sp = 40 x 60/100 = 4.899
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4. Sample size using confidence interval approach (for unknown or very large population
size)
Factors to be considered:
Variability: measured by standard deviation

The desired accuracy: measured by e value
Confidence level: measured by z value. Let us see commonly used z values.
z value % of z
68.27 1
90 1.645
95 1.96
95.45 2
99 2.58
99.73 3
The approach will be as follows:
a) Using percentage
n = z 2 (PQ)/e2, n = the sample size, z = the level of confidence (determined from the
standard error), P = estimated variability in the population, Q = (1 – P), and e = accepted
error or the desired degree of accuracy.
Assume that there is a great expected variability (probability) of 50% and the desired
degree of accuracy is + or – 10% at 95% level of confidence. Determine the sample size?
n = 1.962 (0.5 x 0.5)/ (0.10)2 = 96.04 nearly equal to 96.
b) Using a mean
n = s2 x z2/e2, where n = the sample size, z = the level of confidence (indicated by the
number of standard errors associated with it), s = standard deviation, and e = the
desired degree of accuracy/precision or acceptable error.
Assume that a decision maker wants a 95% level of confidence with an estimated
standard deviation of 100. If the desired degree of precision is + or – 10, what would be
the sample size?
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n = 1002 x 1.962/102 = 384. OR

c) n = (Z)2 X Sd X (1 – Sd)/(e)2
For example, assume confidence interval of 95%, Sd (standard deviation) of 0.5, and
error (e) of +/- 5%, calculate the sample size?
n = (1.96)2 X 0.5 X 0.5/ (0.5)2 = 385 respondents
Note: if the population is known, we will use the following formulas:
 n = N(Z)2/(Z)2 + 4N(e)2 OR n = N/1 + N(e)2 , if e is not given use 5%.

For example if N = 2000, Z = 97% (Hence, e = 100% - 97% = 3%), calculate the sample
size. Hence, n = 2000/1 + 2000 (0.03)2 = 714 respondents
5. Central Limit theorem
The sampling distribution of the sample mean is approximately a normal distribution. This
approximation improves with larger samples.
Normal distribution is where:
 Bell-shaped, symmetrical about the mean.

 Mean, median and mode are equal.
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CHAPTER 10
DATA PREPARATION AND ANALYSIS
o General concept about data analysis

o Data editing, coding, and tabulation
o Types of statistical analyses used in research (Descriptive statistics (mean, median,
mode, standard deviation), Inferential statistics (null hypothesis testing), Differential
statistics (ANOVA), and Associative statistics (regression analysis, correlation analysis,
cross tabulation))
1. General concept about data analysis
Statistical analysis is the refinement and manipulation of data that prepares them for the
application of logical inference. Interpretation is bringing out the meaning of data or
converting more data in to information or drawing conclusions from the data analyzed. Data
can be analyzed through descriptive and inferential statistics.
a) Descriptive statistics: it summarizes the characteristics of large sets of data. It includes:
 Measure of central tendency: mean, media, and mode

 Measure of dispersion: standard deviation, variance, and range
 Percentages: one way frequency tables and cross tabulations (shows
relationships)
 Statistical tests: hypothesis test through chi-square test, ANOVA, Z and t test.
 Simple tabulation: merely shows a distribution of one variable at a
time and may not yield the full values of the data. Cross-tabulation: is
an extension of the one-dimensional form in which the researcher
can investigate the relationship between two or more variables by
simultaneously counting the number of responses that fall in each of
the classifications.
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 Descriptive statistics can also be presented graphically like line chart,

pie chart and bar charts.
 Chi-square is used for non-parametric data (when the distribution of
the data is not normal).
 Z, t, ANOVA tests of hypothesis: these are used for parametric
interval or ratio (when the distribution of the data is normal –
distribution around their mean).
 One must also consider whether a one-tailed test (the situation in
which the alternative hypothesis is stated such that one specific
direction or  sign is considered) or a two – tailed test (a situation in
which the alternative hypothesis is stated in such a way that both
ends of the sampling distribution =, ≤, ≥ sign are considered)
situation exists.
b) Inferential statistics: this is finding something about a population based on a sample
taken from the population. It includes:
 Investigation of associations: dependent methods. This is when one or more
variables are designed as being predicted by a set of independent (predictor)
variables. It includes simple and multiple regressions.
 Investigation of associations: interdependence methods. This shows the
relationship of a set of variables in which no one variable is designed as being
predicted by other variables. It includes factor and cluster analysis.
2. Data editing, coding, and tabulation
Validation and editing: these are quality control tools.
 Validation: this is the process of ascertaining that interviews actually conducted

as specified.
 Editing: the process of ascertaining that questionnaires were filled out properly
and completely.
Coding: the process of grouping and assigning numeric codes to the various responses
to a question.
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Data entry: the process of converting information to an electronic format.

Tabulation and statistical analysis: this is tabulating the survey results.
3. Statistical analysis
 One way frequency table: table showing the number of respondents choosing each
answer to a survey question.
 Cross tabulation: examination of the responses to one question relative to the
responses to one or more other questions.
 Graphic representation of data: this includes line chart (useful for presenting a given
measurement taken at several points over time), pie charts, and bar charts (most
flexible representation).
 Descriptive statistics: which includes:
 Mean or average (X) = Ԑ(fixi)/n
 Median (Md): value below which 50% of the observation fall.
Md = LMd + (N/2) – (F)/fMD , where LMd = lower limit of median class, N = total
number of frequencies in the distribution, F = cumulative frequency, and fMD =
frequency of the median class.
 Standard deviation (S): this can be used to compare two means. Here an assumption is
made that the two means are about equal. Then the smaller the standard deviation
(smaller) of the two indicates that the distribution is more homogeneous.
S= Ԑ (xi – x) 2/n - 1
Standard deviation measures dispersion in the data (e.g., milk consumption variation of
two markets).
 Correlation (r): correlation shows a relationship between variables. The quantity r,
called the linear correlation coefficient, measures the strength and
the direction of a linear relationship between two variables. The linear correlation
coefficient is sometimes referred to as the Pearson product moment correlation
coefficient in honor of its developer Karl Pearson.
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 The value of r is such that -1 < r < +1. The + and – signs are used for positive linear
correlations and negative linear correlations, respectively.
 Positive correlation: If x and y have a strong positive linear correlation, r is
close
to +1. An r value of exactly +1 indicates a perfect positive fit. Positive values
indicate a relationship between x and y variables such that as values for x
increase, values for y also increase.
 Negative correlation: If x and y have a strong negative linear correlation, r is
close to -1. An r value of exactly -1 indicates a perfect negative fit. Negative
values indicate a relationship between x and y such that as values for x increase,
values for y decrease.
 No correlation: If there is no linear correlation or a weak linear correlation, r is
close to 0. A value near zero means that there is a random, nonlinear
relationship between the two variables.
 A perfect correlation of ± 1 occurs only when the data points all lie exactly on a
straight line. If r = +1, the slope of this line is positive. If r = -1, the slope of this
line is negative.
 A correlation greater than 0.8 is generally described as strong, whereas a
correlation less than 0.5 are generally described as weak. These values can vary
based upon the "type" of data being examined. A study utilizing scientific data
may require a stronger correlation than a study using social science data.
 Coefficient of determination (r2orR2): the coefficient of determination, r 2, is useful
because it gives the proportion of the variance (fluctuation) of one variable that is
predictable from the other variable. It is a measure that allows us to determine how
certain one can be in making predictions from a certain model/graph. The coefficient of
determination is the ratio of the explained variation to the total
variation. The coefficient of determination is such that 0 < r 2 < 1, and denotes the
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strength of the linear association between x and y. The coefficient of determination

represents the percent of the data that is the closest to the line of best fit. For example,
if r = 0.922, then=0.850, which means that 85% of the total variation in y can be
explained by the linear relationship between x and y (as described by the regression
equation). The other 15% of the total variation in y remains unexplained. The coefficient
of determination is a measure of how well the regression line represents the data. If the
regression line passes exactly through every point on the scatter plot, it would be able
to explain all of the variation. The further the line is away from the points, the less it is
able to explain.
 Regression: regression analysis is a set of statistical methods used for the estimation of
relationships between a dependent variable and one or more independent variables. It
can be utilized to assess the strength of the relationship between variables and for
modeling the future relationship between them.
Regression analysis includes several variations, such as linear, multiple linear, and
nonlinear. The most common models are simple linear and multiple linear. Nonlinear
regression analysis is commonly used for more complicated data sets in which the
dependent and independent variables show a nonlinear relationship.
Regression Analysis – Linear model assumptions
Linear regression analysis is based on six fundamental assumptions:
1. The dependent and independent variables show a linear relationship between the slope
and the intercept.
2. The independent variable is not random.
3. The value of the residual (error) is zero.
4. The value of the residual (error) is constant across all observations.
5. The value of the residual (error) is not correlated across all observations.
6. The residual (error) values follow the normal distribution.
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Regression Analysis – Simple linear regression
Simple linear regression is a model that assesses the relationship between a dependent variable
and an independent variable. The simple linear model is expressed using the following
equation:
Y = a + bX + ϵ
Where:
 Y – Dependent variable
 X – Independent (explanatory) variable
 a – Intercept
 b – Slope
 ϵ – Residual (error)
Regression Analysis – Multiple linear regression
Multiple linear regression analysis is essentially similar to the simple linear model, with the
exception that multiple independent variables are used in the model. The mathematical
representation of multiple linear regressions is:
Y = a + bX1 + cX2 + dX3 + ϵ
Where:
 Y – Dependent variable
 X1, X2, X3 – Independent (explanatory) variables
 a – Intercept
 b, c, d – Slopes
 ϵ – Residual (error)
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Multiple linear regressions follow the same conditions as the simple linear model. However,
since there are several independent variables in multiple linear analyses, there is another
mandatory condition for the model:
 Non-co-linearity: Independent variables should show a minimum of correlation with

each other. If the independent variables are highly correlated with each other, it will be
difficult to assess the true relationships between the dependent and independent
variables.
4. Hypothesis testing and interpretation
Hypothesis is the assumption or theory that a researcher makes about some characteristics of
the population under study. Let us see the steps in hypothesis testing:
a) State the hypothesis: using two basic forms
 Null hypothesis (Ho): this is the assumption to be tested. It is the hypothesis of

the status quo, no difference, no effect. Usually words, ‘’no’’, ‘’not’’, or ‘’same’’
will be part of the stated hypothesis.
 Alternative hypothesis (Ha or H1): it is the research hypothesis of interest (the

factual statement). The conclusion is accepted if Ho is rejected.
Both stated in such a way that they can’t be true.
b) Choose appropriate statistical test: X2 (Chi – square), Z test, etc.

c) Develop a decision rule: rules to determine whether to reject or fail to reject the null
hypothesis. The significance level (α) is critical in the process of choosing between the
null and alternative hypothesis (level of significance 0.1, 0.5. 0.01 …… may be used).
Rejection of the null hypothesis is equivalent to supporting the alternative hypothesis.
The rule states that – reject null hypothesis if calculated value is greater than (>)
critical value (α) or table value.
87
d) Calculate the value of the test statistics
 Use appropriate formula

 Compare the value just calculated to the critical value of the statistic (from the
appropriate table)
 Determine to reject or fail to reject the null hypothesis.

e) State the conclusion.
Error in hypothesis testing: there are two types of error in hypothesis testing.
 Type I error: this is rejecting the null hypothesis when it is, in fact, true.
 Type II error: this is failing to reject the null hypothesis when it is actually false.
Let us now see some examples:
A survey of 500 customers was conducted by a given bank. More than 74% had family
incomes of more than $50,000 per year. Management wants whether the true % is
greater than 65%. Survey result shows that 74.3% (n = 35) of the bank’s customers
surveyed reported family income of $50,000 or more per year. Let us do it:
 State the hypothesis
Ha: P> 0.60
Ho: P≤0.60
 α= 0.05, Z =? Z = 1.64 and the degrees of freedom (d.f) is infinity ( ).
 Standard error
Sp = P (1 – P)/n – 1 = 0.6 (1 – 0.6)/35 – 1 = 0.084
 Test statistic = z
Z = (Observed proportion – Proportion under null hypothesis)/Sp
= (0.7429 – 0.60)/0.084 = 1.7, calculated Z value > critical Z value (1.7 > 1.64).
Hence, Ho is rejected. Therefore, more than 60% of its customers have family
income of $ 50,000 or more.
88
H1 = alternative hypothesis
Ho = null hypothesis
H1 = price has a positive correlation (relationship) with sales
Ho = 0
H1 ≠ 0 if r = 0.5
Suppose the marketing manager of of a retail electronics chain needs to test the
effectiveness of three deals (deal 1, 2, and 3). Each deal will be offered for a month.
The manager wants to measure the effect of each deal on the number of customers
visiting a test store during the time the deal is on. The number of customers visiting the
store under each deal is as follows.
Deal Month Customer per month
1 April 11,700
2 May 12,100
3 June 11,780
Total 35,580
The marketing manager needs to know whether there is a significant difference

between the numbers of customers visiting the store during the time periods covered
by the three deals. The chi-square one-sample test is appropriate test to use to answer
to test the hypothesis. Let us test the hypothesis:
 State the hypothesis
Ho: The number of customers visiting the store under the various deals is equal.
Ha: There is a significant difference in the numbers of customers visiting the
store under the various deals.
 Determine the visitors who would be expected in each category
Ei = TV/N (Ei = expected number of the ith category, TV = total number of
visitors, and N = number of months).
Ei = 35,580/3 = 11,860
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 Calculate chi-square (X2):

X2 = Ԑk (Oi – Ei)2/Ei , where, Oi = observed number in the ith category, and K =
number of categories.
X2 = (11,700 – 11, 860)2/11,860 + (12,100 – 11,860)2/11,860 + (11,780 –
11,860)2/11, 860
= 7.6
 Select level of significance (α = 0.05, tabular X2 value with (K – 1) degrees of
freedom (d.f) = (3 – 1) = 2 is 5.99)
 State the result: because calculated value (7.6) > the table value (5.99), we
reject the null hypothesis.
Conclusion (interpretation): with 95% confidence that customer response to
the deals was significantly different.
90
CHAPTER 11
SELECTED APPLICATION OF MARKETING RESEARCH
o Marketing research and strategic marketing management

o Product research
o Pricing research
o Distribution research
o Promotion research
1. Marketing research and strategic marketing management
Effective marketing management requires research. Direct TV, the direct-broadcast satellite
television service, uses marketing research to determine which kinds of programming to add to
its lineup of channels. A company executive says, “Research has driven every aspect of our
business decisions.” At Ford Motor Company, research is so fundamental that the company
hardly makes any significant decision without the benefit of some kind of marketing research.
The prime managerial value of marketing research comes from the reduced uncertainty that
results from information and facilitates decision making about marketing strategies and
tactics to achieve an organization’s strategic goals. Developing and implementing a marketing
strategy involves four stages:
 Identifying and evaluating market opportunities
 Analyzing market segments and selecting target markets
 Planning and implementing a marketing mix that will provide value to customers and
meet organizational objectives
 Analyzing firm performance
One job that marketing research can perform is monitoring the competitive environment for
signals indicating a business opportunity. A mere description of some social or economic
activity, such as trends in consumer purchasing behavior, may help managers recognize
problems and identify opportunities for enriching marketing efforts. In some cases, this research
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can motivate a firm to take action to address consumer desires to the benefit of both the
customers and the firm.
Market opportunities may be evaluated using many performance criteria. For example, the
performance criterion of market demand typically is estimated using marketing research
techniques. Estimates of market potential or predictions about future environmental conditions
allow managers to evaluate opportunities. Accurate sales forecasts are among the most useful
pieces of planning information a marketing manager can have. Complete accuracy in
forecasting the future is not possible, because change is constantly occurring in the marketing
environment. Nevertheless, objective forecasts of demand or changing environments may be
the foundations on which marketing strategies are built.
The second stage of marketing strategy development is to analyze market segments and select
target markets. Marketing research is a major source of information for determining which
characteristics of market segments distinguish them from the overall market. Such research
can help “locate” or describe a market segment in terms of demographic and characteristics.
Geo- demographics can be important to study and track in this effort. Geo-demographics
refer to information describing the demographic profile of consumers in a particular
geographic region. The company may learn that consumers in a particular postal code within a
region tend to be middle-aged, have multiple children over the age of twelve, and have college
degrees and white-collar jobs. Once the company knows the geo-demographics of a market
segment, it can effectively communicate with those customers by choosing media that reach
that particular profile. For example, Architectural Digest is a magazine that is read
predominantly by consumers with very high social status in the most exclusive zip codes in the
United States.
Marketing research may be needed to support specific decisions about any aspect of the
marketing mix. For instance, the research can evaluate an alternative course of action. For
example, advertising research might investigate whether an actress like Julia Roberts or a
singer like Mariah Carey would make a better spokesperson for a specific brand of hair coloring.
Research might be conducted involving test ads with each celebrity examining questions such
as whether or not consumer attitudes toward the brand are higher for Julia or for Mariah and
92
how much each celebrity is liked, but also, perhaps not as obviously, how much credibility each
celebrity would have based on the beliefs consumers have about whether or not each would
really use the product. It is essential that an overall research plan involve all elements of
marketing strategy. In other words, once the research identifies a target market and media that
can be used in promotion, it needs to determine what benefits are required to create value for
the customers, what price is most appropriate and, not to be overlooked, what channels of
distribution will best reach the consumer. The integration of all of this research leads to
effective brand management.
After a marketing strategy has been implemented, marketing research may serve to inform
managers whether planned activities were properly executed and are accomplishing what
they were expected to achieve. In other words, marketing research may be conducted to
obtain feedback for evaluation and control of marketing programs. This aspect of marketing
research is especially important for successful total value management, which attempts to
manage the entire process by which a consumer receives benefits from a company.
Performance-monitoring research refers to research that regularly, sometimes routinely,
provides feedback for evaluation and control of marketing activity. For example, most firms
continuously monitor wholesale and retail activity to ensure early detection of sales declines
and other anomalies. In the grocery and drug industries, sales research may use Universal
Product Codes (UPCs) on packages read by electronic cash registers and computerized checkout
counters to provide valuable market-share information to store and brand managers interested
in the retail sales volumes of their products. Market-share analysis and sales analysis are the
most common forms of performancemonitoring research. Almost every organization compares
its current sales with previous sales and with competitors’ sales. However, analyzing marketing
performance is not limited to the investigation of sales figures. Marketing metrics refer to
quantitative ways of monitoring and measuring marketing performance. Research is needed to
determine marketing metrics that allow a firm to know whether the resources invested in
marketing activities have met their quantitative business goals. Marketing metrics allow the
firm to assess the return on investment (ROI) associated with marketing activities.
93
2. Product research
Product research takes many forms and includes studies designed to evaluate and develop
new products and to learn how to adapt existing product lines. Concept testing exposes
potential customers to a new product idea to judge the acceptance and feasibility of the
concept. Product testing reveals a product prototype’s strengths and weaknesses or
determines whether a finished product performs better than competing brands or according to
expectations. Brand-name evaluation studies investigate whether a name is appropriate for a
product. Package testing assesses size, color, shape, ease of use, and other attributes of a
package. Product research encompasses all applications of marketing research that seek to
develop product attributes that will add value for consumers.
3. Pricing research
In many ways, pricing research represents typical marketing research. Many test markets
address the question of how consumers will respond to a product offering two different
prices. Pricing involves finding the amount of monetary sacrifice that best represents the value
customers perceive in a product after considering various market constraints. Most
organizations conduct pricing research. Starbucks may seem expensive now, but if the price
doubled, would Starbucks lose many customers? How much more are Toyota customers willing
to pay for each extra mile per gallon? How much is too much to pay for gas? Pricing research
also investigates the way people respond to pricing tactics. How do consumers respond to
price reductions in one form or another? How much are people willing to pay for some critical
product attribute? Do consumers view prices and/ or quantity discounts as fair in a given
category? Do price gaps among national brands, regional brands, and private labels exist? Most
importantly, research also addresses the way consumers determine perceived value.
Pricing research addresses consumer quality perceptions by its very nature. A great deal of
research addresses consumer reactions to low prices and documents the fact that, in quite a
few instances, prices can actually be too low. In other words, sales can actually decrease with
lower prices instead of increasing.
94
4. Distribution research
Distribution involves the marketing channels that will physically “distribute” products from a
producer to a consumer. A marketing channel is a network of interdependent institutions that
perform the logistics necessary for consumption to occur. Some channels are very short and
involve only a producer and a consumer, and some are very long involving much transportation
and wholesale and retail firms. It may be somewhat obvious why the term supply chain is
sometimes used to refer to a channel of distribution. Distribution is necessary to remove the
physical separations between buyers and sellers.
Distribution research is typified by studies aimed at selecting retail sites or warehouse
locations. A survey of retailers or wholesalers may be conducted because the actions of one
channel member can greatly affect the performance of other channel members. Distribution
research often is needed to gain knowledge about retailers’ and wholesalers’ operations and
to learn their reactions to a manufacturer’s marketing policies. It may also be used to examine
the effect of just-in-time ordering systems or exclusive distribution on product quality.
Research focused on developing and improving the efficiency of marketing channels is
extremely important.
5. Promotion research
Promotion is the communication function of the firm responsible for informing and persuading
buyers. Promotion research investigates the effectiveness of advertising, premiums, coupons,
sampling, discounts, public relations, and other sales promotions. However, among all of
these, firms spend more time, money, and effort on advertising research.
Media research helps businesses make decisions about whether television, newspapers,
magazines, or other media alternatives are best suited to convey the intended message.
Choices among media alternatives may be based on research that shows the proportion of
consumers in each market segment that a particular advertising vehicle can reach.
The integrated marketing mix means that research studies often investigate effects of various
combinations of marketing mix elements on important outcomes like sales and image.
Research suggests that consumer- oriented firms are particularly oriented toward integrating all
aspects of their marketing into a single message.
95
CHAPTER 12
PRESENTING THE RESEARCH RESULTS (RESEARCH REPORT)
o Importance of the research report

o Organization of the research report
1. Importance of the research report
A research report is a well-crafted document that outlines the processes, data, and findings of a
systematic investigation. It is an important document that serves as a first-hand account of the
research process, and it is typically considered as an objective and accurate source of
information.
In many ways, a research report can be considered as a summary of the research process that
clearly highlights findings, recommendations, and other important details. Reading a well-
written research report should provide you with all the information you need about the core
areas of the research process. Let us discuss the importance of a research report:
 Knowledge transfer: as already stated above, one of the reasons for carrying out
research is to contribute to the existing body of knowledge, and this is made possible
with a research report. A research report serves as a means to effectively communicate
the findings of a systematic investigation to all and sundry.
 Identification of knowledge gaps: with a research report, you'd be able to identify
knowledge gaps for further inquiry. A research report shows what has been done while
hinting at other areas needing systematic investigation.
 In market research, a research report would help understand the market needs and
peculiarities at a glance.
 A research report allows you to present information in a precise and concise manner.
96
 It is time-efficient and practical because, in a research report, you do not have to spend
time detailing the findings of your research work in person. You can easily send out the
report via email and have stakeholders look at it.
2. Organization of the research report
The research report, whether it is dissertation, thesis, senior essay or a shorter term paper or
report, usually follows a fairly standardized pattern. The following outline presents the usual
sequence of topics.
 The title page: the first page of the report is the title page. Although title page forms
differ from one institution to another, they usually include:
 The name of the topic: title
 The name of the author
 The relationship of the report to a course or degree requirement
 The name of the institution where the report is to be submitted
 The date of presentation
 Abstract or Executive summary (optional for senior essay): includes the following
 The abstract should be between 100 and 250 words
 It should be written in the present tense
 Should normally include the following:
 A statement of the problem the research sets out to resolve
 The methodology used
 The major findings
 Other information as may be required by the department (or the institution)
 Acknowledgment or dedication (if any): is done to acknowledge people who provide

the author with assistance.
 Table of contents: the senior essay/thesis must have a table of contents page that is
listing chapter headings, section headings and sub-headings, appendices and
97
references as well as their corresponding page numbers. This should be done after final
editing so that pages referred to in the table of contents are correctly numbered.
 List of figures, abbreviations and tables of illustrations (if any): should be included on a
separate page immediately following the table of contents.
 Introduction (Chapter – 1): include background of the study (this can be merged with
the statement of the problem), statement of the problem, objectives of the study,
significance of the study, research methods, scope (delimitation) of the study,
limitations of the study, and organization of the paper.
 Background of the study: include
 Background notes for the study
 Briefly describes what other researchers have done in the area
 Indicates the gap between what has been done so far and what should be
done in this study (trend analysis).
 Statement of the problem: include
 Background notes for the study, its theoretical basis and underlying
assumptions
 Clearly states the problem in specific, concrete and workable research
questions (or provides the hypothesis)/logical and argumentative
presentation of the gap
 Provides objectives of the study
 Objectives of the study: clearly indicates the general and specific objectives of
the study.
 Research questions and or hypothesis: developed from the research objectives
 Significance of the study: include
 Provides the justification (importance) of the study.
 To enable other researchers make further studies in the area
 To help organizations use the research output as a reference
 To help organizations use findings of the research to solve problems or
make business decisions
98
 To add knowledge to already existing stock of knowledge

 Research methods: include
 The procedures used in collecting, organizing and analyzing data
 Sources of data
 Methods and instruments of data collection
 Scope (delimitation) of the study: the study is not without boundary. It covers
and addresses only certain areas. It tries to provide answers to specified
research problems. The research study has a limited scope and delimited to the
research problem at hand. Delimitations are thus the boundaries beyond which
the study is not concerned (geographical, conceptual and time scope).
 Limitation of the study: these are those conditions beyond the control of the
researcher that may place restrictions on the conclusion of the study and their
applications to other situations.
 Organization of the paper: this section describes the structure of the report in
brief.
 Review of related literature (Chapter – 2): the purpose of literature review is to

summarize, evaluate and where appropriate compare those main developments and
current debates in the field which are specifically relevant to the research area. The
literature review shows that the writer is familiar with the field and simultaneously lays
the ground for subsequent analysis or presentation and discussion of empirical data.
Rather than simply summarizing other author’s work, the chapter should make clear
the writer’s position in relation to the issues raised.
The study's theoretical/conceptual model and its hypotheses are developed based on
the researcher's logical reasoning as well as the implications of his/her literature review.
 Research methodology (Chapter – 3): include details of

 The methodology section includes a description of the research
sample (subjects), data collection method, measurement instruments,
and data analysis procedures. The description of sample/subjects
includes not only the sample size and statistics regarding the subjects but
99
also a definition and description of the population from which the sample
was selected. This section also describes the method used in selecting
the sample or samples. In the case of questionnaire surveys, information
on response rates also should be provided.
 The description of instruments should identify and briefly describe all
instruments used to collect data pertinent to the study, be they tests,
questionnaires, interview or observation forms, or unobtrusive data such
as absenteeism reports or productivity figures. When
possible, information on validity and reliability of the measures used
should be reported. Also, sources should be cited for measurement
instruments/procedures (e.g., scales) developed by other
researchers. The method section is usually concluded with a few
statements about the analysis procedures utilized to test the study's
hypotheses.
 Data presentation, analysis and interpretation (Chapter – 4): the statistical

techniques that were applied to the data must be mentioned and the results of each
analysis summarized, tabulated, and then discussed. For each research hypothesis, the
statistical test of significance selected and applied to the data is briefly described,
followed by a statement indicating whether the hypothesis was supported or not
supported. Tables, figures, and texts are used to present analyses results in summary
and/or graph form and to add clarity to the presentation. Good tables and figures are
uncluttered, self-explanatory, and non-redundant.
In addition to simply presenting the results in a straightforward manner, the author also
has to provide the readers with his/her interpretation of the results, implications of
the findings, conclusions and recommendations. Each result is discussed in terms of
the original hypothesis to which it relates and in terms of its agreement or disagreement
with results obtained by other researchers in similar/related studies. If the results are
consistent with the theoretical model, researcher's expectations, and/or findings of
other researchers, explanations must be provided as to what the results mean and what
100
their theoretical and practical implications are. When the results do not support the
hypotheses and/or contradict previous findings, not only their meaning, but also
possible reasons for the discrepancies must be discussed.
Finally, the researcher should address the study's limitations and make
recommendations for future research. It is notable that in the discussion portion of this
section the researcher is often permitted more freedom to express opinions and
reasonable speculations/assertions that may be rather indirectly and implicitly based on
data analysis results.
 Summary, conclusion and recommendation (Chapter – 5): this part is the final part of
the research work. It explains the practical implications of those findings, and points to
recommended directions for future research in that area. It includes:
 Restatement of the problem and brief description of the research procedures
used together with the summary of principal findings.
 Summary, conclusions or generalizations that the researcher arrived at
depending on his/her findings
 Recommendations (or suggestion of alternative approaches) to alleviate the
problems and recommendations for further research.
 Reference section: include

 Bibliography: include
 A list of the sources used in the essay must be supplied at the end.
 This list should include only those sources cited in the senior essay.
 An author should use uniform style in listing the bibliography.
 Important components of the bibliography: author/editor name, title of
book/article, publisher, and place of publication, and year of publication.
 Listing should be in alphabetical order of the authors.
101
Basic format:
Author (Year of Publication). Title. (edition). Place of publication: Publisher.

Examples:
Davis, K and J. Newstrom (1985). Human Behavior at Work: Organizational Behavior. (7 th ed.).
New York: Mc Graw Hill Book Company.
Griffin, R. (1990). Management. Boston: Houghton Miffin Company.
Schewartz, D., Ryan, S., & Wostbrock, F. (1995). The Encyclopedia of TV Game shows. New York:
Facts on File.
Article within a book:
Author of Article (Year). Title of the Article in Author of the Book (Year). Title of the Book. (pp.
of the article in the Book). Place of publication: Publisher.
Article from Journal:
Author of article (Year). Title of the Article. Name of the Journal, Journal issue no., pp.
 Appendices:
 May be needed for formulae, maps, diagrams, questionnaires, interview
guides or any similar data that are not contained in the body of senior
essay.
 Should be provided in the logical order they are mentioned in the main
body.
 Come immediately after Bibliography.
 Each appendix should be given a consecutive number or letter.
 If there are several appendices each should receive a title.
102

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Marketing Research compiled by Jemal H.

THE NATEURE AND SCOPE OF MARKETING RESEARCH

This chapter should enable you to understand and explain:

 Discover new knowledge

Scientific research is a way of obtaining knowledge based on objective observations. Science

Prior Knowledge Observation

Conclusion (New knowledge)

Hypothesis is a conjectural (proposed, theoretical) statement about a relationship between

3. Characteristics of good research

 Fundamental (basic) research seeks to extend the boundaries of knowledge in a given

THE RESEARCH PROCESS

This chapter should enable you to understand and explain:

The research process will be listed as follows:

a) Establish the need for research

 Information is already available

Problem definition involves:

1. Specifying the symptoms,

2. Itemizing the possible causes of the symptoms, and

c) Establish research objective

 A good way of setting research objectives is to ask, “What information is needed in

d) Determine research design

Exploratory research: Exploratory research is, defined as collecting information in an

e) Identify information types and sources

Basically, two types of information are available to a researcher.

1. Secondary data and

f) Determine methods of accessing data

g) Design data collection forms

There are two basic methods by which researchers collect information:

There are two types of forms: structured and unstructured.

 Structured questionnaires list questions that have pre-specified answer choices.

h) Determine sample plan and size (sampling procedures)

 Selecting the wrong sample elements to interview,

 Entering data into computer files,

 Drawing the appropriate conclusions for managerial decisions (management requires

This chapter should enable you to understand and explain:

o What is a Research Proposal?

2. The purpose of the research proposal includes

d) Statement of the research problem

g) Significance /importance / benefits of the study

Research methodologies include:

DEFINING THE PROBLEM AND THE RESEARCH OBJECTIVES

This chapter should enable you to understand and explain:

o Define manager’s and research problem

Problem definition: problem definition is ‘’the foundation of the research’’. A problem is a

Similarly, in opportunity oriented research, ambiguity is characterized by environmental

Problem definition could pertain to:

o Existing business problems where a manger looking for a solution,

o Situations in which a researcher is trying to answer a research question empirically

Management Decision Problem

 Research can provide the necessary information to make a sound decision.

It is concerned with the possible actions the DM could take.

 How should the loss of market share be arrested?

Marketing Research Problem

The marketing research problem is information oriented. It wants to determine what

S/N Constructs Operational Definitions

The problem definition process

a) Understand the situation (identify key symptoms)

Asituation analysis involves the gathering of background information to familiarize

Giving an awareness of marketplace conditions and an appreciation of the situation often

 Pilot studies: surveys using a limited number of respondents

What has changed?

Questions: what changes have occurred recently?

Probe: tell me about this change.