DATA ANALYSIS

AND
INTERPRETATION

SOME PROBLEMS OF
UNDERSTANDING
This slide is dedicated to those who feel any
discussion of mathematics or statistics with a
feeling of withdrawal.
A few statements are given on the next two
slides, acceptance of which may reduce such
apprehensions so that they will not interfere
with increasing ones research ability with
regard to analytical tools.
2

FOLLOWING STATEMENTS ARE

TRUE
Sheer unfamiliarity with mathematical
language presents a serious obstacle that
disappears as one employs it.
Mathematical expressions are simply an
alternative to verbal ones. They are much
more efficient in being able to say quickly in
numbers and nonverbal symbols what would
require many words.
3

 Mathematical expressions are clear and

specific. They avoid ambiguities that obscure
our verbal communication.
Numbers and formulas are abstractions and
thus should offer no inherent confusions.
If you regard quantitative analytical methods
as possible keys to unlock the meaning of data
and expand your interpretive powers, you will
welcome their assistance and adopt a positive
attitude towards them.
4

NATURE AND FUNCTIONS OF

STATISTICAL ANALYSIS
STATISTICAL ANALYSIS: The refinement
and manipulation of data that prepares them
for the application of logical inferences.
Statistical analytical methods may be used in
valid ways or in specious ways. This depends
both on the honesty of the researcher in
selecting the appropriate formulas and data
inputs, and on his or her understanding of the
5
formulas and their outputs.

NATURE AND FUNCTIONS OF

STATISTICAL ANALYSIS Contd.
For each analytical method, there is an
appropriate sequence that can be used.
However, there are three chief phases
for analysis:
Bringing the raw data into order (arrays,
tabulations, establishing categories,
percentages)
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NATURE AND FUNCTIONS OF

STATISTICAL ANALYSIS Contd.
Summarising the data: measures of central
tendency and dispersion, and graphical
presentation
Applying analytical methods to manipulate
the data so that their interrelationships and
quantitative meaning become evident. For
this purpose an appropriate analytical
method is to be selected: Selection criteria
7

INTERRELATIONSHIP BETWEEN
ANALYSIS AND INTERPRETATION
(a) Consider the following exchange regarding
survey data:
RESEARCHER: Look at the answers to a
question, If you were buying an electric
range or a gas range completely equipped
with all modern features, what would it price
be? Average price given for electric range
was Rs. 11,900 and for gas range was Rs.
10,250. I think, it is advantageous for the gas
range.
8

INTERRELATIONSHIP BETWEEN
ANALYSIS AND INTERPRETATION
MARKETING MANAGER: I wouldnt say
that at all. It seems to me what that shows is,
that most women just cannot conceive of a
gas range that has all the features of a modern
range. So, that is a mark against gas.
As per the researcher, the company would
have gone for gas ranges. In light of the data
collected, a proper analysis has been made by
the researcher. However, the interpretation
made was faulty because the data were not
properly related to other information that the
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Marketing Manager had injected.

INTERRELATIONSHIP BETWEEN
ANALYSIS AND INTERPRETATION
(b) Suppose that a detergent manufacturer is
trying to decide which of three advertisements
would be the most effective in increasing sales
of their detergent. They test the three ads by
running each at different times in newspapers
in six different cities. Sales are
Advertise
1
2
3
Sales of boxes
2,396
3,654
2,576
This indicates that the ad 2 is the most effective.
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INTERRELATIONSHIP BETWEEN
ANALYSIS AND INTERPRETATION
Looking to the big difference, the researcher
felt that there may be another variable. Hence,
following table was prepared:
Advt. A B C D E F
1
379 400 420 380 421 396
2
401 384 1527 424 447 471
3
429 351 451 425 487 433

TOTAL
2,396
3,654
2,576
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INTERRELATIONSHIP BETWEEN
ANALYSIS AND INTERPRETATION
There was an unusual demand during
advertisement 2 in city C, otherwise three
advertisements did not differ significantly
in any city.
If the researcher had used the combined
data, it would have been an improper
analysis, but correct interpretation.
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INTERPRETIVE PROCESS
Our perceptions can be distorted and
limited very easily, and our thinking
processes can take wrong turns too easily.
There is no truth in the adage that
figures speak for themselves.
When people have the figures to interpret,
they state what the figures mean, and
dangerous errors are often committed. 13

INTERPRETIVE PROCESS
Firm discipline over ones mental processes
and the ability to work as dispassionately as
possible are necessary.
For this purpose, every researcher will have
to follow certain maxims. They can be:
1. Produce honest and sober interpretations.
2. Keep objectives and simple principles in
the forefront.
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INTERPRETIVE PROCESS
3. Beware of the limitations of small samples.
4. Give fair weight to all evidence.
5. Give due attention to infrequent significant
answers.
6. Recognise averages as mere tendencies.
7. Distinguish between opinion and fact.
8. Look for causes and do not confuse them
with effects.
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BRINGING THE DATA INTO ORDER

Simplest way in which data can be
brought into order is an array. This is a
simple tabulation.
- Minimum and maximum can be found.
- Range can be found.
- Quartiles can be found.
- Mode can be found.
When there are only a few observations,
setting up an array may not be too
tedious.

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BRINGING THE DATA INTO ORDER

In spite of the advantages of data array, this
would be inefficient with a sizable array of
data such as is usually obtained in a marketing
study. For such data, suitable classifications
are to be established. Then, we can place
individual observations in those categories.
This is called a simple tabulation. It is also
referred to as a one-way or a marginal
tabulation.
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BRINGING THE DATA INTO ORDER

Many research questions may be answered by
simple tabulation of data. However, simple
tabulation merely shows a distribution of one
variable at a time, and may not yield the full
value of data. Most data can be further
organised to yield additional information.
Cross-tabulation is an extension of 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
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classifications.

Types of Statistical Analyses Used in

Marketing Research

Copyright 2010 Pearson

Education, Inc. publishing as
Prentice Hall

19

Types of Statistical Analyses Used in

Marketing Research
Five Types of Statistical Analysis:
1. Descriptive analysis: used to describe
the data set
2. Inferential analysis: used to generate
conclusions about the populations
characteristics based on the sample
data

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Types of Statistical Analyses Used in

Marketing Research
3. Differences analysis: used to compare
the mean of the responses of one group
to that of another group
4. Associative analysis: determines the
strength and direction of relationships
between two or more variables
5. Predictive analysis: allows one to make
forecasts for future events
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A Classification of Univariate Techniques

Univariate Techniques

Non-numeric Data

Metric Data
One Sample
* t test
* Z test

Two or More
Samples

Independent
* Two- Group
test
* Z test
* One-Way
ANOVA

Related
* Paired
t test

One Sample
*
*
*
*
*

Frequency
Chi-Square
K-S
Runs
Binomial

Two or More
Samples

Independent
*
*
*
*
*

Chi-Square
Mann-Whitney
Median
K-S
K-W ANOVA

Related
*
*
*
*

Sign
Wilcoxon
McNemar
Chi-Square

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A Classification of Multivariate Techniques

Multivariate Techniques
Dependence
Technique
One Dependent
Variable
* CrossTabulation
* Analysis of
Variance and
Covariance
* Multiple
Regression
* Conjoint
Analysis

More Than One

Dependent
Variable
* Multivariate
Analysis of
Variance
and
Covariance
* Canonical
Correlation
* Multiple
Discriminant
Analysis

Interdependen
ce Technique
Variable
Interobject
Interdependenc
Similarity
e
* Factor
* Cluster
Analysis
Analysis
*
Multidimension
al Scaling

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WHEN TO USE A PARTICULAR

STATISTIC

Copyright 2010 Pearson Education, Inc.

publishing as Prentice Hall

24

Statistics Associated with Cross-Tabulation

Phi Coefficient
The phi coefficient () is used as a measure of the
strength of association in the special case of a table with
two rows and two columns (a 2 x 2 table).
The phi coefficient is proportional to the square root of
the chi-square statistic:
=

2
n

It takes the value of 0 when there is no association,

which would be indicated by a chi-square value of 0 as
well. When the variables are perfectly associated, phi
assumes the value of 1 and all the observations fall just
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on the main or minor diagonal.

Statistics Associated with Cross-Tabulation

Contingency Coefficient
While the phi coefficient is specific to a 2 x 2 table, the
contingency coefficient (C) can be used to assess the
strength of association in a table of any size.
C=

2
2+n

The contingency coefficient varies between 0 and 1.

The maximum value of the contingency coefficient
depends on the size of the table (number of rows and
number of columns). For this reason, it should be used
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only to compare tables of the same size.

Statistics Associated with Cross-Tabulation

Cramers V
Cramer's V is a modified version of the phi
correlation coefficient, , and is used in tables
larger than 2 x 2.
2

V=

min(r1),(c1)

V=

2/n
min(r1),(c1)

or

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