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Marketing research

Introduction to marketing

 IBM:
 In the year 2008 revenues of $103.6
billion, conducts international
tracking study twice a year in 14
different languages across 27
different countries in Europe, North
and South America and Asia to
capture trend data on main frame
computing. The result of such a
study allows IBM to see how
successful it is in penetrating key
 Recipo:
 An application service provider, it
gives its clients the ability to view
customer feedback the second it is
entered on their website, to capture
true word and emotion of the
consumer. “Live” marketing

 Portico research:
 It specializes in observing individuals
recording them on videos and selling
these tapes for tens of thousands of
dollars to its major clients such as
Honda, Delta, Lipton and P&G. For
Lipton: to determine people’s
attitudes towards tea.

 P&G
 It created a website
to target teens. Company improved
products also based on feedbacks
and chats.
 Marketing research has become
global (IBM) and real time
(Recipo), is being conducted in a
specialized manner (Portico) and
has become much more integrated
with marketing (P&G)

 According to the American Marketing

 “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 is the systematic and
objective identification, collection,
analysis, dissemination and use of
Classification of Marketing

 To identify:
 Problem identification research
▪ Market Potential research
▪ Market Share research
▪ Image research
▪ Market characteristics Research
▪ Sales analysis Research
▪ Forecasting Research
▪ Business trends Research
 To solve:
 Problem solving Research
▪ Segmentation Research
▪ Product Research
▪ Pricing research
▪ Promotion Research
▪ Distribution research

A survey of companies conducting
marketing research indicates that
97% of those who responded were
conducting market potential,
market share and market
characteristics research
 About 90% also reported that they
were using other types of problem
identification research.
 Table 1.1: Problem solving research
 However problem identification and
problem solving research go hand
in hand as shown by Kellogg’s
example in the case “Crunchy nut
Red adds color to Kellogg’s sales”
 Problem identification and problem
solving research not only go hand
in hand as shown by the Kellogg’s
Example, but they also follow a
common marketing research
 Marketing Research Process:
 It is a set of six steps that defines the
tasks to be accomplished in
conducting a marketing research
study. These include problem
definition, development of an
approach to the problem, research
design formation, field work, data
preparation and analysis, and report

 STEP 1:
 Problem definition:
▪ Purpose of study
▪ The relevant background information
▪ The information needed. How it will be used
in decision making.
 STEP 2:
 Development of an approach to the
▪ An objective or theoretical framework
▪ Analytical methods
▪ Research questions
▪ Hypotheses
▪ Identify the information needed.
 STEP 3 :
 Research design Formulation:
▪ Research design is a blue print or a
framework for conducting the Marketing
research Project. It involves following
▪Definition of the information needed
▪Secondary data analysis
▪Qualitative research
▪Methods of collecting quantitative data (survey,
observation and experimentation)
▪Measurement and scaling procedures
▪Questionnaire design
▪Sampling process and sample size
▪Plan of data analysis
 STEP 4:
 Field work or Data Collection
 Step 5:
 Data Preparation and analysis.
▪ Editing
▪ Coding
▪ Transcription and verification of data
 STEP 6:
 Report preparation and presentation
▪ Addressing the specific research
▪ Questions identified
▪ Describing the approach
▪ The research design
▪ Data collection
▪ Data analysis procedure adopted
▪ Results and major findings
 The nature of marketing
 Fig: 1.2: The role of marketing
 Case study: Johnson and Johnson
introduced gentle aspirin for babies
which failed in the market.

 Marketing research suppliers
and services:
 Fig: 1.3: Marketing research suppliers
and services:

 The role of MR in MIS and DSS
 MIS: Marketing information system: A
formalized set of procedures for
generating, analyzing, storing and
distributing pertinent information to
marketing decision makers on an
ongoing business.
 DSS: Decision support systems:
Information systems that enable
decision makers to interact directly
with both databases and analysis
 Structured problems
 Use of reports
 Rigid structures
 Information displaying restricted
 Can improve decision making by clarifying
the raw data
 Unstructured problems
 Use of models
 User friendly interactions
 Adaptability
 Can improve decision making by using
“what if” analysis.
International Marketing

 Some Facts:
 US accounts for only 39% of the MR
expenditure worldwide.
 40% of MR is conducted in western
 9% of MR is conducted in Japan
 Most of European research is done in
Germany, UK, France, Italy and

 Group Discussion:
 Can ethical Standards be enforced in
marketing research? If So, How?
 Role playing:
 You are a project director working for a
major research supplier. You have just
received a telephone call from an irate
respondent who believes that an
interviewer has violated her privacy by
calling at an inconvenient time. The
respondent expresses several ethical
concerns. Ask a fellow student to play
the role of this respondent. Address the
respondents concerns and pacify her.


 Defining the marketing research problem

and developing an approach
 Harley goes Whole Hog:
▪ Comeback in 2000s- so that there was a long
waiting list to get a bike
▪ In 2001, HD’s revenue exceeded $3.3 billion.
▪ Distributors urged HD to build more motorcycles
but the company was skeptical about investing in
new production facilities.
▪ The management decision problem was “should HD
invest to produce more motorcycles?”
 Importance of defining a problem:
 Problem definition: A broad statement of the
general problem and identification of the
specific components of the marketing research
problem. All efforts, time , money spent will be
wasted if the problem is misunderstood or ill
 The process of defining the problem and developing
an approach:
 Fig: 2.1
 Tasks Involved:
 Discussions with decision makers.
 Interviews with industry experts
 Secondary data analysis
 Qualitative research
 Environmental context of the problem:
 Past information and forecasts
 Resources and constraints
 Objectives
 Buyer behavior
 Legal environment
 Economic environment
 Marketing and technological skills.

 Management decision problem and
marketing research problem
 Defining marketing research problem:
 Broad statement - specific components
 Components of the approach:
 Objective / theoretical framework
 Analytical model
 Research questions
 Hypotheses:
▪ An unknown statement or proposition about a
factor or phenomenon that is of interest to
 Specification of information needed.

 Cases:
 1.1 Life in fast lane: fast food chains race to
be number one.
 1.2 Nike sprints ahead of the competition,
yet has a long way to run.
 1.3 Lexus Imparting value to luxury and
luxury to value.
 Video Cases:
 Burke: Learning and growing through MR (
 Accenture: the accent is in the name (
Part 2
Research Design
A research design is formulated
 The problem has been defined
 The approach developed

Research design

 Types of research design:

 Exploratory
 Conclusive
▪ Descriptive
▪ Causal
 Ata broad level two main types of
research designs are employed in
marketing research:
 Exploratory
 conclusive
 Exploratory research involves
sec0ndary data and qualitative
 Descriptive research makes use of
survey and observation methods
 The major methodology used in
causal designs is experimental
 Ina study of cause related
marketing, exploratory research in
the form of secondary data
analysis and focus groups was
conducted to identify the social
causes that American businesses
should be concerned about. As a
result the following causes were
identified as salient :
 Child care, drug abuse, public
education, hunger, crime,
 Then conclusive research in the form of a
descriptive cross sectional survey was
undertaken to quantify how and why
causes related marketing influences,
consumer’s perception of the company
and brands to determine the relative
salience of the causes identified in
exploratory research.
 A random sample of 2,000 Americans was
surveyed by telephone. About 61% of
the respondents said that when price
and quality are equal, they would
 Thesurvey also revealed that 68%
of the consumers would pay more
for a product that is linked to a
good cause. Company support of
good causes produces a more
positive image and greater trust of
the company according to 66% of
those surveyed.
 Inkeeping with these findings,
Starbucks wants to help the
environment by providing a new
“eco-friendly” coffee cup. The
company also has initiatives to
help small coffee bean farmers,
local community programs and
charitable giving. There are even
employee incentives and awards
for volunteering for these causes.
Research design:
 A research design is a framework or
blueprint for conducting the
marketing research project. It
specifies the details of the
procedures necessary for obtaining
the information needed to structure
and / or solve marketing research
 Typically a research design involves the
following components or tasks:
 Define the information needed.
 Define the exploratory , descriptive and/or
causal phases of the research.
 Specify the measurement and scaling
process and procedures.
 Construct and pretest a questionnaire
(interview form) or an appropriate form for
data collection.
 Specify the sampling process and sample.
 Develop a plan of data analysis.
Research Design :
 Exploratory Research:
 One type of research design, which has as it’s
primary objective the provision of insights into, and
comprehension of the problem situation
confronting the researcher.
 The primary aim of the exploratory research is to
provide insights, into, and an understanding of, the
problem confronting the researcher.
 Exploratory research is used in cases when you must
define the problem more precisely, identify
relevant courses of action, or gain additional
insights before an approach can be developed. The
information needed is only loosely defined at this
stage, and the research process that is adopted is
flexible and unstructured. For example: personal
interviews with the industry experts. Primary data
 Conclusive Research:
 Research designed to assist the decision maker in
determining, evaluating and selecting the best
course of action to take in a given situation.
 Conclusive research is typically more formal and
structured then exploratory research.
 It is based on large representative samples and the
data obtained are subjected to quantitative
analysis. The findings from this research are
considered to be conclusive in nature in that they
are used as input into managerial decision making.
 Conclusive research decisions can be either
descriptive or causal and descriptive research
designs may be either cross sectional or
Differences Between Exploratory and Conclusive Research
Exploratory Conclusive
Objective: To Provide insights To test hypothesis and
Characteristics: and understanding.
Information needed is examine
Information needed is
Findings/ results: defined
Tentative. relationships.
only loosely. clearly defined.
Outcome: Research
followedis Research process
Findings used is
as input
flexible and
by further exploratory formal and structured.
into decision making.
or conclusive Sample Sample is large and
is small and non
research. representative. Data
representative. analysis is
Analysis of primary quantitative.
data is qualitative.
A comparison of the basic research designs
Exploratory Descriptive Causal
Objective: Discover ideas Describe market Determine the
Characteristics: and insights
Flexible, characteristics
Marked by the cause and effect
Manipulation of
Methods: Versatile,
Expert Surveys, or functions.
Often prior
Secondary relationships.
Data, one or more
Pilotfront end of formulation
Surveys, of independent
Surveys, Panels,
the total design
Secondary specific
Data, Observational variables.
Qualitative hypothesis.
and other data. Control of other
Research. Preplanned and mediating
structured variables.
Exploratory Research

 Objective is to explore or search through

a problem or situation to provide
insights and understanding.
 Purpose:
 Formulate a problem or define a problem
more precisely.
 Identify alternative courses of action.
 Develop hypothesis.
 Isolate key variables and relationships for
further examination.
 Gain insights for developing an approach to
the problem.
 The creativity and ingenuity of the researcher
plays a major role in exploratory research.
Researchers are alert to new ideas and
insights as they proceed. Once a new idea or
insight is discovered, they may redirect their
exploration in that direction.
 Yet the ability of the researcher are not the sole
determinations of good exploratory research.
Exploratory research can generally benefit
from the use of following methods:
 Survey of experts.
 Pilot Surveys
 Secondary data analyzed in a qualitative
Descriptive Research

A type of conclusive research that

has as its major objective the
description of something-usually
market characteristics or
 It assumes that the researcher has
much prior knowledge about the
problem situation.
 It is preplanned and structured.
 A descriptive design requires a clear
 Purpose:
 To describe the characteristics of
relevant groups, such as consumers,
salespeople, organizations, or
market areas.
 To estimate the percentage of units in
a specified population exhibiting a
certain behavior.
 To determine the perceptions of
product characteristics.
 To determine the degree to which
marketing variables are associated.
 Descriptive research, in contrast to
exploratory research is marked by a
clear statement of the problem, specific
hypotheses, and detailed information
 Market studies.
 Market share studies.
 Sales analysis studies.
 Image studies.
 Product usages studies.
 Distribution studies.
 Pricing studies.
Methods of Descriptive
 Secondary data analyzed in a
quantitative as opposed to a
qualitative manner.
 Surveys.
 Panels.
 Observational and other data.

Cross-sectional Designs
 Involves the collection of information from any
given sample of population elements only
 In single cross-sectional designs, there is
only one sample of respondents and
information is obtained from this sample only
 In multiple cross-sectional designs, there are
two or more samples of respondents, and
information from each sample is obtained only
once. Often, information from different
samples is obtained at different times.
 To predict changes
 Find trends
 Cohort analysisconsists of a series of surveys
conducted at appropriate time intervals,
Consumption of Various Soft Drinks
by Various
Table 3.3
Age Cohorts
Percentage consuming on a typical day

Age 1950 1960 1969 1979

8-19 52.9 62.6 73.2 81.0

20-29 45.2 60.7 76.0 75.8
30-39 33.9 46.6 67.7 71.4
40-49 23.2 40.8 58.6 67.8
50+ 18.1 28.8 50.0 51.9
C1 C2 C3

C1: cohort born prior to 1900 C5: cohort born 1931-40

C2: cohort born 1901-10 C6: cohort born 1940-49
C3: cohort born 1911-20 C7: cohort born 1950-59
C4: cohort born 1921-30 C8: cohort born 1960-69
Longitudinal Designs
 A fixed sample (or samples) of population
elements is measured repeatedly on the
same variables
 A longitudinal design differs from a cross-
sectional design in that the sample or
samples remain the same over time. In
other words, the same people are
studied over time and the same
variables are measured.
 How did the American people rate the
performance of George w. Bush
immediately after the war in Afghanistan?
▪ Cross sectional design
Relative Advantages and Disadvantages
Table 3.4
and Cross-Sectional
Evaluation Cross-Sectional Design Longitudinal
Criteria Design

Detecting Change - +
Large amount of data collection - +
Accuracy - +
Representative Sampling + -
Response bias + -

Note: A “+” indicates a relative advantage over the other design, whereas a “-”
indicates a relative disadvantage.

“A major advantage of longitudinal design over the cross sectional design is the
ability to detect change as a result of repeated measurement of the same variables
on the same sample.”
 Another advantage of the panels is that
relatively large amount of data can be
collected, because panel members are
usually compensated for their
participation, they are willing to
participate in lengthy and demanding
 Panel data can be more accurate than
cross sectional data.
 The main disadvantage of panels is that
they may not be representative
Causal Research
 A type of conclusive research where the major
objective is to obtain evidence regarding
cause-and-effect (causal) relationship.
 It requires a planned and structured design.
 A relatively controlled environment is one in
which the other variables that may affect the
dependent variable are controlled or checked
as much as possible. The effect of
manipulation on one or more dependent
variables is then measured to infer causability.
 In a departmental store, the presence and
helpfulness of salespeople (causal variable)
will influence the sales of housewares(effect
Uses of Casual Research

 To understand which variables are

the cause (independent variables)
and which variables are the effect
(dependent variables) of a
 To determine the nature of the
relationship between the causal
variables and the effect to be
 METHOD: Experiments
Relationship among
Exploratory, Descriptive
and Causal Research
 When little is known about the problem
situation, it is desirable to begin with
exploratory research. Exploratory
research is appropriate when the
problem needs to be defined more
precisely, alternative courses of action
identified, research questions or
hypotheses developed.
 Exploratory research is the initial step in
the overall research design framework.
It should, in most instances, be followed
by descriptive or causal research.
Citicorp Banks on Exploratory,
and Causal Research

Marketing Research at Citicorp is typical in that it is used to measure consumer

awareness of products, monitor their satisfaction and attitudes associated with
the product, track product usage and diagnose problems as they occur. To
accomplish these tasks Citicorp makes extensive use of exploratory, descriptive,
and causal research. Often it is advantageous to offer special financial packages
to specific groups of customers. In this case, a financial package is being
designed for senior citizens.

The following seven-step process was taken by marketing research to help in

the design.
Citicorp Banks on Exploratory,
and Causal Research

1) A taskforce was created to better define the market parameters to include all
the needs of the many Citicorp branches. A final decision was made to include
Americans 55 years of age or older, retired, and in the upper half of the
financial strata of that market.
Citicorp Banks on Exploratory,
and Causal Research
2) Exploratory research in the form of secondary data analysis
of the mature or older market was then performed and a study of
competitive products was conducted. Exploratory qualitative
research involving focus groups was also carried out in order to
determine the needs and desires of the market and the level of
satisfaction with the current products.

In the case of senior citizens,

a great deal of diversity was
found in the market. This
was determined to be due to
such factors as affluence,
relative age, and the
absence or presence of a
Citicorp Banks on Exploratory,
and Causal Research

3) The next stage of research was brainstorming. This involved the

formation of many different financial packages aimed at the target market.
In this case, a total of 10 ideas were generated.
Citicorp Banks on Exploratory,
and Causal Research
4) The feasibility of the 10 ideas generated in step 3 was then tested.
The ideas were tested on the basis of whether they were possible in
relation to the business. The following list of questions was used as
a series of hurdles that the ideas had to pass to continue on to the
next step.

• Can the idea be explained in a manner that the target

market will easily understand?
• Does the idea fit into the overall strategy of
Citicorp Banks on Exploratory,
and Causal Research
 Is there an available description of a specific target market
for the proposed product?

 Does the research conducted so far indicate a potential
match for target market needs, and is the idea perceived to
have appeal to this market?

 Is there a feasible outline of the tactics and strategies for
implementing the program?

 Have the financial impact and cost of the program been
thoroughly evaluated and determined to be in line with
company practices?

In this study, only one idea generated from the brainstorming session
made it past all the listed hurdles and on to step 5.
Citicorp Banks on Exploratory,
and Causal Research
5) A creative work-plan was then generated. This plan was to
emphasize the competitive advantage of the proposed product as
well as better delineate the specific features of the product.

6) The previous exploratory research was now followed up with

descriptive research in the form of mall intercept surveys of people
in the target market range. The survey showed that the list of
special features was too long and it was decided to drop the
features more commonly offered by competitors.
Citicorp Banks on Exploratory,
and Causal Research
7) Finally, the product was test marketed in six of the Citicorp
branches within the target market. Test marketing is a form of
causal research. Given successful test marketing results, the
product is introduced nationally.
Potential Sources of Error in
Fig. 3.2
Total Error

Random Non-sampling
Sampling Error Error

Response Non-response
Error Error

Researcher Interviewer Respondent

Error Error Error

Surrogate Information Error Respondent Selection Error Inability Error

Measurement Error Questioning Error Unwillingness Error
Population Definition Error Recording Error
Sampling Frame Error Cheating Error
Data Analysis Error
Errors in Marketing
 The total erroris the variation between the true
mean value in the population of the variable of
interest and the observed mean value
obtained in the marketing research project.
 Random sampling erroris the variation
between the true mean value for the
population and the true mean value for the
original sample.
 Non-sampling errorscan be attributed to
sources other than sampling, and they may be
random or nonrandom: including errors in
problem definition, approach, scales,
questionnaire design, interviewing methods,
and data preparation and analysis. Non-
sampling errors consist of non-response errors
Errors in Marketing
 Non-response errorarises when some of the
respondents included in the sample do not
 Response error arises when respondents give
inaccurate answers or their answers are
misrecorded or misanalyzed.
Budgeting and scheduling
the project
 Management tools needed to help ensure that the
marketing research project is completed within the
available resources-financial, time and manpower etc.
 Once a research design, appropriately controlling the total
error, has been specified, the budgeting and scheduling
decision should be made
 CPM- critical path method.
 Management technique of dividing a research project into
component activities, determining the sequence of these
components and the time each activity will require.
 PERT- Program evaluation and review techniques.
 A more sophisticated critical path method that accounts for
the uncertainty in project completion times.
 GERT- graphical evaluation and review techniques.
 A sophisticated critical path method that accounts for both
the completion probabilities and the activity costs.
Marketing Research
 The official layout of the planned
marketing research activity for
 It describes the research problem, the
approach, the research design, data
collection methods, data analysis
methods, and reporting methods.
 Once the research design has been
formulated and budgeting and
scheduling of the project accomplished,
a written research proposal should be
Marketing Research
Proposal contains:
 Executive Summary
 Background
 Problem Definition/Objectives of the Research
 Approach to the Problem
 Research Design
 Kind of information to be obtained
 Methods of administrating the questionnaire.
 Scaling techniques.
 Nature of the questionnaire.
 Sampling plan and sample size.
 Fieldwork/Data Collection
 Data Analysis
 Reporting
 Cost and Time
 Appendices
Chapter Four
Exploratory Research Design:
Secondary Data
Primary vs. Secondary
 Primary dataare originated by a
researcher for the specific purpose of
addressing the problem at hand. The
collection of primary data involves all
six steps of the marketing research
 Secondary dataare data which have
already been collected for purposes
other than the problem at hand. These
data can be located quickly andCensu

D a ta
A Comparison of Primary &
Table 4.1 Data

Primary Data Secondary Data

Collection purpose For the problem at hand For other problems

Collection process Very involved Rapid & easy
Collection cost High Relatively low
Collection time Long Short
Uses of Secondary Data

 Identify the problem

 Better define the problem
 Develop an approach to the problem
 Formulate an appropriate research
design (for example, by identifying
the key variables)
 Answer certain research questions
and test some hypotheses
 Interpret primary data more
Criteria for Evaluating
Secondary Data

 Specifications: Methodology Used to

Collect the Data
 Error: Accuracy of the Data
 Currency: When the Data Were
 Objective(s): The Purpose for Which the
Data Were Collected
 Nature: The Content of the Data
 Dependability: Overall, How
Dependable Are the Data
Criteria for Evaluating Secondary
DataTable 4.2

Criteria Issues Remarks

Specifications & Data collection method, response rate, Data should be reliable,
Methodology quality & analysis of data, sampling valid, & generalizable to the
technique & size, questionnaire design, problem.
Error & Accuracy Examine errors in approach, Assess accuracy by
research design, sampling, data comparing data from
collection & analysis, & reporting. different sources.
Time lag between collection & Census data are updated by
Objective publication, frequency of updates. syndicated firms.
Why were the data collected? The objective determines
Nature the relevance of data.
Definition of key variables, units of Reconfigure the data to
measurement, categories used, increase their usefulness.
Dependability relationships examined.
Expertise, credibility, reputation, & Data should be obtained
trustworthiness of the source. from an original source.
A Classification of
Fig. 4.1 Data

Secondary Data

Internal External

Ready to Requires Further Published Computerized Syndicated

Use Processing Materials Databases Services
Internal Secondary Data
 Department Store Project
Sales were analyzed to obtain:

 Sales by product line

 Sales by major department (e.g., men's wear,
house wares)
 Sales by specific stores
 Sales by geographical region
 Sales by cash versus credit purchases
 Sales in specific time periods
 Sales by size of purchase
 Sales trends in many of these classifications
were also examined.
Type of Individual/Household Level Data
Available from Syndicated Firms
I. Demographic Data
- Identification (name, address, telephone)
- Sex
- Marital status
- Names of family members
- Age (including ages of family members)
- Income
- Occupation
- Number of children present
- Home ownership
- Length of residence
- Number and make of cars owned
Type of Individual/Household Level Data
Available from Syndicated Firms

II. Psychographic Lifestyle Data

- Interest in golf
- Interest in snow skiing
- Interest in book reading
- Interest in running
- Interest in bicycling
- Interest in pets
- Interest in fishing
- Interest in electronics
- Interest in cable television
There are also firms such as Dun & Bradstreet and American Business
Information which collect demographic data on businesses.
A Classification of Published Secondary
Fig. 4.2

Published Secondary

General Business Government

Sources Sources

Guides Directories Indexes Statistical Census Other

Data Data Government
A Classification of Computerized
Fig. 4.3


Online Internet Off-Line

Bibliographic Numeric Full-Text Directory Special-

Databases Databases Databases Databases Purpose
Published External Secondary

 Guides
 An excellent source of standard or recurring information
 Helpful in identifying other important sources of
directories, trade associations, and trade publications
 One of the first sources a researcher should consult

 Directories
 Helpful for identifying individuals or organizations that
collect specific data
 Examples: Consultants and Consulting Organizations
Directory, Encyclopedia of Associations, FINDEX: The
Directory of Market Research Reports, Studies and
Surveys, and Research Services Directory

 Indices
 Helpful in locating information on a particular topic in
several different publications
Classification of Computerized

 Bibliographic databases are composed

of citations to articles.
 Numeric databasescontain numerical
and statistical information.
 Full-text databasescontain the
complete text of the source documents
comprising the database.
 Directory databasesprovide
information on individuals,
organizations, and services.
 Special-purpose databases provide
specialized information.
Syndicated Services

 Companies that collect and sell common

pools of data of known commercial
value designed to serve a number of
 Syndicated sources can be classified
based on the unit of measurement
(households/consumers or institutions).
 Household/consumer data may be
obtained from surveys, diary panels, or
electronic scanner services.
 Institutional data may be obtained from
retailers, wholesalers, or industrial
A Classification of Syndicated
Fig. 4.4

Unit of

Consumers Institutions
Syndicated Services:
Fig. 4.4 cont.
Households /


Electronic scanner
Purchase Media

Surveys Volume Scanner Diary Scanner Diary

Tracking Data Panels Panels with
Cable TV

Psychographic Advertising
& Lifestyles General Evaluation
Syndicated Services:
Fig. 4.4 cont.

Retailers Wholesalers Industrial firms


Direct Clipping Corporate

Inquiries Services Reports
Overview of Syndicated
Services Table 4.3
Characteristics Advantages Disadvantages Uses

Surveys Surveys conductedat Most flexiblewayof Interviewer errors; Market

regular intervals obtainingdata; respondent errors segmentation,
information on advertisingtheme
underlyingmotives selectionand
Purchase Households provide Recordedpurchase Lackof Forecastingsales,
Panels specificinformation behavior canbe representativeness; market shareand
regularlyover an linkedtothe responsebias; trends; establishing
extendedperiodof demographic/ maturation consumer profiles,
time; respondent psychographic brandloyaltyand
askedtorecord characteristics switching; evaluating
specificbehaviors as test markets,
theyoccur advertising, and
MediaPanels Electronicdevices Sameas purchase Sameas purchase Establishing
automatically panel panel advertisingrates;
recordingbehavior, selectingmedia
supplementedbya programor air time;
diary establishingviewer
Overview of Syndicated
Services Table 4.3 cont.
Type Characteristics A
dvantages Disadvantages
ScannerVolume H ouseholdpurchases D atareflectactual D atam aynotbe
TrackingData arerecordedthrough purchases;tim elydata, representative;errorsin
electronicscannersin lessexpensive recordingpurchases;
superm arkets difficulttolink
purchasestoelem ents
ofm arketingm ixother
ScannerD iaryPanels Scannerpanelsof D atareflectactual D atam aynotbe
withCableT V householdsthat purchases;sam ple representative;quality
subscribetocableTV control;abilitytolink ofdatalim ited
Overview of Syndicated
Services Table 4.3 cont.
Audit services Verification of productRelatively precise Coverage may be Measurement of
movement by information at the incomplete; matching consumer sales and
examining physical retail and wholesale of data on competitive market share,
records or performing levels activity may be competitive activity,
inventory analysis difficult analyzing distribution
patterns; tracking of
new products
industrial products Data banks on Important source of Data are lacking in Determining market
syndicated services industrial information on terms of content, potential by geographic
establishments created industrial firms, quantity, and quality area, defining sales
through direct inquiriesparticularly useful in territories, allocating
of companies, clippinginitial phases of the advertising budget
services, and corporateprojects
Single-Source Data
Single-source data provide integrated
information on
household variables, including media consumption

purchases, and marketing variables, such as

sales, price, advertising, promotion, and in-store

marketing effort.

 Recruit a test panel of households and meter

each home's TV sets.
 Survey households periodically on what they
 Grocery purchases are tracked by UPC scanners.
A Classification of International
Fig. 4.5

International Secondary Data

Domestic Organizations International Organizations in

in the United States Organizations in the Foreign Countries
United States

Government Nongovernment International Trade

Sources Sources Governments Organizations Associations
Chapter Five
Exploratory Research Design:
Qualitative Research
A Classification of Marketing
Fig. 5.1 Data
Marketing Research Data

Secondary Data Primary Data

Qualitative Data Quantitative Data

Descriptive Causal

Survey Observational Experimental

Data and Other Data Data
Qualitative vs.
Table 5.1 Research
Qualitative Research Quantitative Research

To gain a qualitative To quantify the data and

understanding of the generalize the results from the
underlying reasons and sample to the population of
motivations interest

Small number of non- Large number of representative

representative cases cases

Unstructured Structured
Data Collection
Non-statistical Statistical
Data Analysis
Develop an initial Recommend a final course of
understanding action
A Classification of Qualitative Research
Fig. 5.2
Qualitative Research

Direct (Non Indirect

disguised) (Disguised)

Focus Groups Depth Interviews

Association Completion Construction Expressive

Techniques Techniques Techniques Techniques
Characteristics of Focus
Groups Table 5.2

Group Size 8-12

Group Composition Homogeneous, respondents,


Physical Setting Relaxed, informal atmosphere

Time Duration 1-3 hours

Recording Use of audiocassettes and videotapes

Moderator Observational, interpersonal, and

communication skills of the moderator
Key Qualifications of Focus Group

1. Kindness with firmness: The moderator must combine a disciplined

detachment with understanding empathy so as to generate the
necessary interaction.

2. Permissiveness: The moderator must be permissive yet alert to signs

that the group’s cordiality or purpose is disintegrating.

3. Involvement: The moderator must encourage and stimulate intense

personal involvement.

4. Incomplete understanding: The moderator must encourage

respondents to be more specific about generalized comments by
exhibiting incomplete understanding.
Key Qualifications of Focus Group

5. Encouragement: The moderator must encourage unresponsive

members to participate.

6. Flexibility: The moderator must be able to improvise and alter the

planned outline amid the distractions of the group process.

7. Sensitivity: The moderator must be sensitive enough to guide the

group discussion at an intellectual as well as emotional level.
Procedure for Planning and Conducting Focus
Fig. 5.3

Determine the Objectives and Define the Problem

Specify the Objectives of Qualitative Research

State the Objectives/Questions to be Answered by Focus Groups

Write a Screening Questionnaire

Develop a Moderator’s Outline

Conduct the Focus Group Interviews

Review Tapes and Analyze the Data

Summarize the Findings and Plan Follow-Up Research or Action

Variations in Focus
 Two-way focus group. This allows one target
group to listen to and learn from a related
group. For example, a focus group of
physicians viewed a focus group of arthritis
patients discussing the treatment they

 Dual-moderator group. A focus group
conducted by two moderators: One
moderator is responsible for the smooth
flow of the session, and the other ensures
that specific issues are discussed.

 Dueling-moderator group. There are two
moderators, but they deliberately take
opposite positions on the issues to be
Variations in Focus
 Respondent-moderator group. The moderator
asks selected participants to play the role of
moderator temporarily to improve group

 Client-participant groups. Client personnel are
identified and made part of the discussion

 Mini groups. These groups consist of a
moderator and only 4 or 5 respondents.

 Tele-session groups. Focus group sessions by
phone using the conference call technique.

Advantages of Focus

1. Synergism
2. Snowballing
3. Stimulation
4. Security
5. Spontaneity
6. Serendipity
7. Specialization
8. Scientific
9. Structure
Disadvantages of Focus
Depth Interview Techniques:

In laddering, the line of questioning proceeds from product

to user characteristics. This technique allows the researcher

to tap into the

consumer's network of meanings.

Wide body aircrafts (product characteristic)


I can get more work done


I accomplish more

I feel good about myself (user characteristic)


Advertising theme: You will feel good about yourself when


Depth Interview Techniques:
Hidden Issue Questioning

 In hidden issue questioning, the focus is

not on socially shared values but rather on
personal “sore spots;” not on general lifestyles
but on deeply felt personal concerns.

fantasies, work lives, and social lives


 historic, elite, “masculine-camaraderie,”

competitive activities

Advertising theme: communicate

aggressiveness, high status, and competitive
heritage of the airline.

Depth Interview Techniques:
Symbolic Analysis

 Symbolic analysisattempts to analyze the symbolic

meaning of objects by comparing them with their
opposites. The logical opposites of a product that are
investigated are: non-usage of the product, attributes of an
imaginary “non-product,” and opposite types of products.

 “What would it be like if you could no longer use

 “Without planes, I would have to rely on letters and
long distance calls.”

 Airlines sell to the managers face-to-face

 Advertising theme: The airline will do the same thing
for a manager as Federal Express does for a package.

Definition of Projective
 An unstructured, indirect form of
questioning that encourages
respondents to project their underlying
motivations, beliefs, attitudes or
feelings regarding the issues of
 In projective techniques, respondents are
asked to interpret the behavior of
 In interpreting the behavior of others,
respondents indirectly project their own
motivations, beliefs, attitudes, or
Word Association
 In word association, respondents are presented with
a list of words, one at a time and asked to respond to each
with the first word that comes to mind. The words of
interest, called test words, are interspersed throughout the
list which also contains some neutral, or filler words to
disguise the purpose of the study. Responses are analyzed
by calculating:

 (1) the frequency with which any word is given as a

 (2) the amount of time that elapses before a response
is given; and
 (3) the number of respondents who do not respond at
all to a test word within a reasonable period of time.
Word Association


washday everyday ironing
fresh and sweet clean
pure air soiled
scrub don't; husband does clean
filth this neighborhood dirt
bubbles bath soap and
family squabbles children
towels dirty wash
Completion Techniques
 In Sentence completion, respondents are given
incomplete sentences and asked to complete them.
Generally, they are asked to use the first word or
phrase that comes to mind.

 A person who shops at Sears is

 A person who receives a gift certificate good for
Sak's Fifth Avenue would be
 J. C. Penney is most liked by
 When I think of shopping in a department store, I

 A variation of sentence completion is paragraph

completion, in which the respondent completes a
Completion Techniques
 In story completion, respondents are given
part of a story – enough to direct attention to a
particular topic but not to hint at the ending.
They are required to give the conclusion in their
own words.

Construction Techniques
 With a picture response, the respondents
are asked to describe a series of pictures of
ordinary as well as unusual events. The
respondent's interpretation of the pictures gives
indications of that individual's personality.

 In cartoon tests, cartoon characters are

shown in a specific situation related to the
problem. The respondents are asked to indicate
what one cartoon character might say in
response to the comments of another character.
Cartoon tests are simpler to administer and
analyze than picture response techniques.
A Cartoon Test
Figure 5.4


Let’s see if we can pick up some house wares

Expressive Techniques
 In expressive techniques, respondents are
presented with a verbal or visual situation and
asked to relate the feelings and attitudes of other
people to the situation.

 Role playing Respondents are asked to

play the role or assume the behavior of someone

 Third-person technique The respondent is

presented with a verbal or visual situation and
the respondent is asked to relate the beliefs and
attitudes of a third person rather than directly
expressing personal beliefs and attitudes. This
third person may be a friend, neighbor,
Advantages of Projective
 They may elicit responses that subjects
would be unwilling or unable to give if
they knew the purpose of the study.

 Helpful when the issues to be addressed
are personal, sensitive, or subject to
strong social norms.

 Helpful when underlying motivations,
beliefs, and attitudes are operating at a
subconscious level.
Disadvantages of Projective

 Suffer from many of the disadvantages of

unstructured direct techniques, but to a
greater extent.
 Require highly trained interviewers.
 Skilled interpreters are also required to
analyze the responses.
 There is a serious risk of interpretation
 They tend to be expensive.
 May require respondents to engage in
unusual behavior.
Guidelines for Using Projective

 Projective techniques should be

used because the required
information cannot be accurately
obtained by direct methods.
 Projective techniques should be
used for exploratory research to
gain initial insights and
 Given their complexity, projective
techniques should not be used
Comparison of Focus Groups, Depth
and Table
5.3 Techniques

Criteria Focus Depth Interviews Projective

Groups Techniques
1. Degree of Structure Relatively high Relatively medium Relatively low
2. Probing of individual Low High Medium
3. Moderator bias Relatively medium Relatively high Low to high
4. Interpretation bias Relatively low Relatively high
5. Uncovering Low Relatively medium High
subconscious Medium to high
6. Discovering innovative High Low
information Medium
7. Obtaining sensitive Low High
information Medium
8. Involve unusual behavior No Yes
or questioning To a limited extent
9. Overall usefulness Highly useful Useful Somewhat useful
Advantages of Online
Focus Groups
 Geographical constraints are removed and
time constraints are lessened.

 Unique opportunity to re-contact group
participants at a later date.

 Can recruit people not interested in
traditional focus groups: doctors, lawyers,

 Moderators can carry on side conversations
with individual respondents.

 There is no travel, video taping, or facilities to
arrange; so the cost is much lower.
Disadvantages of Online Focus
 Only people that have access to the Internet
can participate.

 Verifying that a respondent is a member of a
target group is difficult.

 There is lack of general control over the
respondent's environment.

 Only audio and visual stimuli can be tested.
Products can not be touched (e.g., clothing)
or smelled (e.g., perfumes).
Chapter Six
Descriptive Research Design:
Survey and Observation
A Classification of Survey
Fig. 6.1

Telephone Personal Mail Electronic

In-Home Mall Computer-Assisted Internet

Intercept Personal

Traditional Computer-Assisted
Mail Mail
Telephone Telephone
Interview Panel
Some Decisions Related to the Mail Interview
Table 6.1

Outgoing Envelope
Outgoing envelope: size, color, return address
Postage Method of addressing
Cover Letter
Sponsorship Type of appeal Postscript
Personalization Signature
Length Size Layout Format
Content Reproduction Color Respondent anonymity
Return Envelope
Type of envelope Postage
Monetary versus non-monetary Prepaid versus promised amount
Criteria for Evaluating Survey

Flexibility of Data Collection

 The flexibility of data collection is determined primarily by
the extent to which the respondent can interact with
the interviewer and the survey questionnaire.

Diversity of Questions

 The diversity of questions that can be asked in a survey

depends upon the degree of interaction the respondent
has with the interviewer and the questionnaire, as well
as the ability to actually see the questions.

Use of Physical Stimuli

 The ability to use physical stimuli such as the product, a

product prototype, commercials, or promotional
displays during the interview.
Criteria for Evaluating Survey

 Sample Control
 Sample control is the ability of the survey mode to reach
the units specified in the sample effectively and

Control of the Data Collection Environment

 The degree of control a researcher has over the
environment in which the respondent answers the

Control of Field Force

 The ability to control the interviewers and supervisors

involved in data collection.

Quantity of Data

 The ability to collect large amounts of data.

Criteria for Evaluating Survey

 Response Rate
 Survey response rate is broadly defined as the percentage
of the total attempted interviews that are completed.

Perceived Anonymity
 Perceived anonymity refers to the respondents'
perceptions that their identities will not be discerned by
the interviewer or the researcher.

Social Desirability/Sensitive Information

 Social desirability is the tendency of the respondents to

give answers that are socially acceptable, whether or
not they are true.

Criteria for Evaluating Survey

Potential for Interviewer Bias

 The extent of the interviewer's role determines

the potential for bias.


 The total time taken for administering the

survey to the entire sample.


 The total cost of administering the survey and

collecting the data.
A Comparative Evaluation of Survey
Table 6.2
Criteria Phone/ In-Home Intercept Mail Mail
CATI Interviews Interviews CAPI Surveys Panels E-Mail Internet

Flexibility of data
Diversity of question
Observation Methods
Structured versus Unstructured


 For structured observation, the

researcher specifies in detail what is to
be observed and how the
measurements are to be recorded, e.g.,
an auditor performing inventory
analysis in a store.

 In unstructured observation, the
observer monitors all aspects of the
phenomenon that seem relevant to the
problem at hand, e.g., observing
children playing with new toys.
Observation Methods
Disguised versus Undisguised

 In disguised observation, the

respondents are unaware that they are
being observed. Disguise may be
accomplished by using one-way mirrors,
hidden cameras, or inconspicuous
mechanical devices. Observers may be
disguised as shoppers or sales clerks.

 In undisguised observation, the
respondents are aware that they are
under observation.
Observation Methods
Natural versus Contrived Observation

 Natural observationinvolves observing

behavior as it takes places in the
environment. For example, one could
observe the behavior of respondents
eating fast food in Burger King.

 In contrived observation, respondents'
behavior is observed in an artificial
environment, such as a test kitchen.
A Classification of Observation
Fig. 6.3


Observation Methods

Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis
Observation Methods
Personal Observation

A researcher observes actual

behavior as it occurs.
 The observer does not attempt to
manipulate the phenomenon being
observed but merely records what
takes place.
 For example, a researcher might
record traffic counts and observe
traffic flows in a department store.
Observation Methods
Mechanical Observation

Do not require respondents' direct

 the AC Nielsen audimeter
 turnstiles that record the number of people
entering or leaving a building.
 On-site cameras (still, motion picture, or
 Optical scanners in supermarkets

Do require respondent involvement.

 eye-tracking monitors
 pupilometers
 psychogalvanometers
Observation Methods

 The researcher collects data by

examining physical records or
performing inventory analysis.
 Data are collected personally by the
 The data are based upon counts, usually
of physical objects.
Observation Methods
Content Analysis

 The objective, systematic, and

quantitative description of the manifest
content of a communication.
 The unit of analysis may be words,
characters (individuals or objects),
themes (propositions), space and time
measures (length or duration of the
message), or topics (subject of the
 Analytical categories for classifying the
units are developed and the
communication is broken down
Observation Methods
Trace Analysis

Data collection is based on physical traces, or evidence, of


 The selective erosion of tiles in a museum indexed by the

replacement rate was used to determine the relative
popularity of exhibits.
 The number of different fingerprints on a page was used
to gauge the readership of various advertisements in a
 The position of the radio dials in cars brought in for
service was used to estimate share of listening
audience of various radio stations.
 The age and condition of cars in a parking lot were used to
assess the affluence of customers.
 The magazines people donated to charity were used to
determine people's favorite magazines.
 Internet visitors leave traces which can be analyzed to
A Comparative Evaluation of Observation
Table 6.3

Criteria Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis Analysis

Degree of structure Low Low to high High High Medium

Degree of disguise Medium Low to high Low High High
Ability to observe High Low to high High Medium Low
in natural setting
Observation bias High Low Low Medium Medium
Analysis Bias High Low to Low Low Medium
General remarks Most Can be Expensive Limited to Method of
flexible intrusive commu- last resort
Relative Advantages of
 They permit measurement of actual
behavior rather than reports of
intended or preferred behavior.
 There is no reporting bias, and potential
bias caused by the interviewer and the
interviewing process is eliminated or
 Certain types of data can be collected
only by observation.
 If the observed phenomenon occurs
frequently or is of short duration,
observational methods may be cheaper
and faster than survey methods.
Relative Disadvantages of

 The reasons for the observed behavior may not

be determined since little is known about the
underlying motives, beliefs, attitudes, and
 Selective perception (bias in the researcher's
perception) can bias the data.
 Observational data are often time-consuming
and expensive, and it is difficult to observe
certain forms of behavior.
 In some cases, the use of observational methods
may be unethical, as in observing people
without their knowledge or consent.

 It is best to view observation as a complement
to survey methods, rather than as being in
A Comparative Evaluation of Survey
Methods for International Marketing
Table 6.4
Criteria Telephone Personal Mail Electronic
High sample control + + - -
Difficulty in locating + - + +
respondents at home
Inaccessibility of homes + - + +
Unavailability of a large + - + +
pool of trained interviewers
Large population in rural areas - + - -
Unavailability of maps + - + +
Unavailability of current - + - +
telephone directory
Unavailability of mailing lists + + - +
Low penetration of telephones - + + -
Lack of an efficient postal system + + - +
Low level of literacy - + - -
Face-to-face communication culture - + - -
Poor access to computers & Internet ? + ? -
Note: A (+) denotes an advantage, and a (–) denotes a disadvantage.
Chapter Seven
Causal Research Design:
Concept of Causality
A statement such as "X causes Y " will have the
meaning to an ordinary person and to a scientist.

 ____________________________________________________
 Ordinary Meaning Scientific Meaning

X is the only cause of Y. X is only one of a number of

 possible causes of Y.

 X must always lead to Y The occurrence of X makes

(X is a deterministic occurrence of Y more probable
cause of Y). (X is a probabilistic cause of Y).

It is possible to prove We can never prove that X is a

that X is a cause of Y. cause of Y. At best, we can
 infer that X is a cause of Y.
Conditions for Causality

 Concomitant variation is the extent to

which a cause, X, and an effect, Y,
occur together or vary together in the
way predicted by the hypothesis under
 The time order of occurrencecondition
states that the causing event must
occur either before or simultaneously
with the effect; it cannot occur
 The absence of other possible causal
factorsmeans that the factor or
variable being investigated should be
Evidence of Concomitant Variation between
Purchase of Fashion Clothing and Education
Table 7.1

Purchase of Fashion Clothing, Y

High Low
Education, X

High 363 (73%) 137 (27%) 500 (100%)

Low 322 (64%) 178 (36%) 500 (100%)

Purchase of Fashion Clothing By
Income and Education

Low Income High Income

Purchase Purchase

High Low High Low

122 (61%) 78 (39%) High 241 (80%) 59 (20%) 300

High 200 (100%)

171 (57%) 129 (43%) 300 (100%) Low 151 (76%) 49 (24%) 200
Definitions and Concepts
 Independent variablesare variables or
alternatives that are manipulated and whose
effects are measured and compared, e.g.,
price levels.
 Test unitsare individuals, organizations, or
other entities whose response to the
independent variables or treatments is being
examined, e.g., consumers or stores.
 Dependent variablesare the variables which
measure the effect of the independent
variables on the test units, e.g., sales, profits,
and market shares.
 Extraneous variables are all variables other
than the independent variables that affect the
response of the test units, e.g., store size,
Experimental Design

 An experimental design is a set

of procedures specifying

 the test units and how these units are

to be divided into homogeneous
 what independent variables or
treatments are to be manipulated,
 what dependent variables are to be
measured, and
 how the extraneous variables are to
be controlled.
Validity in
 Internal validityrefers to whether the
manipulation of the independent
variables or treatments actually caused
the observed effects on the dependent
variables. Control of extraneous
variables is a necessary condition for
establishing internal validity.
 External validityrefers to whether the
cause-and-effect relationships found in
the experiment can be generalized. To
what populations, settings, times,
independent variables and dependent
variables can the results be projected?
Extraneous Variables
 History refers to specific events that are
external to the experiment but occur at the
same time as the experiment.
 Maturation (MA) refers to changes in the test
units themselves that occur with the passage
of time.
 Testing effectsare caused by the process of
experimentation. Typically, these are the
effects on the experiment of taking a measure
on the dependent variable before and after
the presentation of the treatment.
 The main testing effect (MT) occurs when a
prior observation affects a latter observation.
Extraneous Variables
 In the interactive testing effect(IT), a prior
measurement affects the test unit's response
to the independent variable.
 Instrumentation(I) refers to changes in the
measuring instrument, in the observers or in
the scores themselves.
 Statistical regressioneffects (SR) occur when
test units with extreme scores move closer to
the average score during the course of the
 Selection bias(SB) refers to the improper
assignment of test units to treatment
 Mortality(MO) refers to the loss of test units
while the experiment is in progress.
Controlling Extraneous
 Randomizationrefers to the random
assignment of test units to experimental
groups by using random numbers. Treatment
conditions are also randomly assigned to
experimental groups.
 Matching involves comparing test units on a set
of key background variables before assigning
them to the treatment conditions.
 Statistical control involves measuring the
extraneous variables and adjusting for their
effects through statistical analysis.
 Design controlinvolves the use of experiments
designed to control specific extraneous
Limitations of
 Experiments can be time consuming,
particularly if the researcher is
interested in measuring the long-term
 Experiments are often expensive. The
requirements of experimental group,
control group, and multiple
measurements significantly add to the
cost of research.
 Experiments can be difficult to
administer. It may be impossible to
control for the effects of the extraneous
variables, particularly in a field
Chapter Eight
Measurement and Scaling: Fundamentals and
Comparative Scaling
Measurement and
 Measurementmeans assigning numbers or
other symbols to characteristics of objects
according to certain prespecified rules.
 One-to-one correspondence between the
numbers and the characteristics being
 The rules for assigning numbers should be
standardized and applied uniformly.
 Rules must not change over objects or time.

Measurement and
 Scalinginvolves creating a continuum upon
which measured objects are located.

 Consider an attitude scale from 1 to 100.

Each respondent is assigned a number from 1 to
100, with 1 = Extremely Unfavorable, and 100 =
Extremely Favorable. Measurement is the actual
assignment of a number from 1 to 100 to each
respondent. Scaling is the process of placing the
respondents on a continuum with respect to their
attitude toward department stores.

Primary Scales of
Scale Figure 8.1
Nominal Numbers Finish
7 8 3
to Runners

Ordinal Rank Order Finish

of Winners
Third Second First
place place place
Interval Performance
Rating on a
0 to 10 Scale 8.2 9.1 9.6

Ratio Time to
Finish, in 15.2 14.1 13.4
Primary Scales of Measurement
Nominal Scale

 The numbers serve only as labels or tags for

identifying and classifying objects.
 When used for identification, there is a strict
one-to-one correspondence between the
numbers and the objects.
 The numbers do not reflect the amount of the
characteristic possessed by the objects.
 The only permissible operation on the numbers
in a nominal scale is counting.
 Only a limited number of statistics, all of which
are based on frequency counts, are
permissible, e.g., percentages, and mode.

Illustration of Primary Scales of
Table 8.2

Nominal Ordinal Interval Ratio

Scale Scale Scale Scale
Preference Preference $ spent last
No. Store Rankings 3
months 1-7 11-17
7 79 5 15 0
1. Lord & Taylor
2 25 7 17 200
2. Macy’s 8 82 4 14 0
3. Kmart 3 30 6 16 100
4. Rich’s 1 10 7 17 250
5. J.C. Penney 5 53 5 15 35
6. Neiman Marcus 9 95 4 14 0
7. Target 6 61 5 15 100
8. Saks Fifth Avenue 4 45 6 16 0
9. Sears 10 115 2 12 10
Primary Scales of Measurement
Ordinal Scale

 A ranking scale in which numbers are assigned

to objects to indicate the relative extent to
which the objects possess some characteristic.
 Can determine whether an object has more or
less of a characteristic than some other object,
but not how much more or less.
 Any series of numbers can be assigned that
preserves the ordered relationships between
the objects.
 In addition to the counting operation allowable
for nominal scale data, ordinal scales permit
the use of statistics based on centiles, e.g.,
percentile, quartile, median.
Primary Scales of Measurement
Interval Scale

 Numerically equal distances on the scale

represent equal values in the characteristic
being measured.
 It permits comparison of the differences
between objects.
 The location of the zero point is not fixed. Both
the zero point and the units of measurement
are arbitrary.
 Any positive linear transformation of the form y
= a + bx will preserve the properties of the
 It is meaningful to take ratios of scale values.
 Statistical techniques that may be used include
all of those that can be applied to nominal and
ordinal data, and in addition the arithmetic
Primary Scales of Measurement
Ratio Scale

 Possesses all the properties of the nominal,

ordinal, and interval scales.
 It has an absolute zero point.
 It is meaningful to compute ratios of scale
 Only proportionate transformations of the form y
= bx, where b is a positive constant, are
 All statistical techniques can be applied to ratio
Primary Scales of
Table 8.1

Sca le Ba sic Com m on Ma rke ting Pe rm issible Sta tistics

Cha ra cte ristics Ex a mple s Ex am ple s Descriptive Inferential
Nomina l Numbers identify Social Security Brand nos., storePercentages, Chi-square,
& classify objects nos., numbering types mode binomial test
of football players
Ordina l Nos. indicate the Quality rankings, Preference Percentile, Rank-order
relative positions rankings of teamsrankings, market median correlation,
of objects but not in a tournament position, social Friedman
the magnitude of class ANOVA
between them
Inte rva l Differences Temperature Attitudes, Range, mean, Product-
between objects (Fahrenheit) opinions, index standard moment
Ra tio Zero point is fixed,Length, weight Age, sales, Geometric Coefficient of
ratios of scale income, costs mean, harmonic variation
values can be mean
A Classification of Scaling
Scaling Techniques

Comparative Noncomparative
Scales Scales

Paired Rank Constant Q-Sort and Continuous Itemized

Comparison Order Sum Other Rating Scales Rating Scales

Semantic Stapel
A Comparison of Scaling
 Comparative scalesinvolve the direct
comparison of stimulus objects. Comparative
scale data must be interpreted in relative
terms and have only ordinal or rank order

 In noncomparative scales, each object is

scaled independently of the others in the
stimulus set. The resulting data are generally
assumed to be interval or ratio scaled.

Relative Advantages of Comparative

 Small differences between stimulus objects can

be detected.
 Same known reference points for all
 Easily understood and can be applied.
 Involve fewer theoretical assumptions.
 Tend to reduce halo or carryover effects from
one judgment to another.
Relative Disadvantages of
Comparative Scales

 Ordinal nature of the data

 Inability to generalize beyond the stimulus
objects scaled.

Comparative Scaling Techniques
Paired Comparison Scaling

 A respondent is presented with two objects and

asked to select one according to some
 The data obtained are ordinal in nature.
 Paired comparison scaling is the most widely
used comparative scaling technique.
 With n brands, [n(n - 1) /2] paired comparisons
are required
 Under the assumption of transitivity, it is
possible to convert paired comparison data to
a rank order.
Obtaining Shampoo Preferences
Using Paired Comparisons
Figure 8.3
Instructions: We are going to present you with ten pairs of
shampoo brands. For each pair, please indicate which one of the
two brands of shampoo you would prefer for personal use.
J hirmack Finesse Vidal Head & Pert
Recording Form: Sassoon Shoulders
J hirmack 0 0 1 0
Finesse 1a 0 1 0
Vidal Sassoon 1 1 1 1
Head & Shoulders 0 0 0 0
Pert 1 1 0 1
Number of Times 3 2 0 4 1
aA 1 in a particular box means that the brand in that column was preferred over
the brand in the corresponding row. A 0 means that the row brand was
preferred over the column brand. bThe number of times a brand was preferred
is obtained by summing the 1s in each column.
Paired Comparison
The most common method of taste testing is paired comparison. The
consumer is asked to sample two different products and select the one
with the most appealing taste. The test is done in private and a
minimum of 1,000 responses is considered an adequate sample. A blind
taste test for a soft drink, where imagery, self-perception and brand
reputation are very important factors in the consumer’s purchasing
decision, may not be a good indicator of performance in the
marketplace. The introduction of New Coke illustrates this point. New
Coke was heavily favored in blind paired comparison taste tests, but its
introduction was less than successful, because image plays a major role
in the purchase of Coke.

A paired comparison taste

Comparative Scaling Techniques
Rank Order Scaling

 Respondents are presented with several objects

simultaneously and asked to order or rank
them according to some criterion.
 It is possible that the respondent may dislike the
brand ranked 1 in an absolute sense.
 Furthermore, rank order scaling also results in
ordinal data.
 Only (n - 1) scaling decisions need be made in
rank order scaling.
Preference for Toothpaste Brands
Using Rank Order Scaling
Figure 8.4

Instructions: Rank the various brands of toothpaste in order of

preference. Begin by picking out the one brand that you like
most and assign it a number 1. Then find the second most
preferred brand and assign it a number 2. Continue this
procedure until you have ranked all the brands of toothpaste in
order of preference. The least preferred brand should be
assigned a rank of 10.
No two brands should receive the same rank number.
The criterion of preference is entirely up to you. There is no
right or wrong answer. Just try to be consistent.
Preference for Toothpaste Brands
Using Rank Order Scaling
Figure 8.4 cont.

Brand Rank Order
1. Crest _________
2. Colgate _________
3. Aim _________
4. Gleem _________
5. Macleans _________

6. Ultra Brite _________

7. Close Up _________
8. Pepsodent _________
9. Plus White _________
10. Stripe _________
Comparative Scaling Techniques
Constant Sum Scaling

 Respondents allocate a constant sum of units,

such as 100 points to attributes of a product to
reflect their importance.
 If an attribute is unimportant, the respondent
assigns it zero points.
 If an attribute is twice as important as some
other attribute, it receives twice as many
 The sum of all the points is 100. Hence, the
name of the scale.
Importance of Bathing Soap Attributes
Using a Constant Sum Scale
Figure 8.5

On the next slide, there are eight attributes of
bathing soaps. Please allocate 100 points among
the attributes so that your allocation reflects the
relative importance you attach to each attribute.
The more points an attribute receives, the more
important the attribute is. If an attribute is not at all
important, assign it zero points. If an attribute is
twice as important as some other attribute, it
should receive twice as many points.
Importance of Bathing Soap Attributes
Using a Constant Sum Scale
Figure 8.5 cont.

Average Responses of Three Segments
Segment I Segment II Segment III
8 2 4
1. Mildness
2 4 17
2. Lather
3 9 7
3. Shrinkage 53 17 9
4. Price 9 0 19
5. Fragrance 7 5 9
6. Packaging 5 3 20
7. Moisturizing 13 60 15
8. Cleaning Power 100 100 100
Chapter Nine
Measurement and Scaling:
Noncomparative Scaling
Noncomparative Scaling
 Respondents evaluate only one object at a time,
and for this reason noncomparative scales are
often referred to as monadic scales.
 Noncomparative techniques consist of
continuous and itemized rating scales.
Continuous Rating Scale
Respondents rate the objects by placing a mark at the
appropriate position
on a line that runs from one extreme of the criterion variable to

the other.
The form of the continuous scale may vary considerably.


 How would you rate Sears as a department store?

 Version 1
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Probably the


Version 2

Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - Probably the

0 10 20 30 40 50 60 70 80 90 100

Version 3

 Very bad Neither good Very good

 nor bad
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - -Probably the

0 10 20 30 40 50 60 70 80 90 100

RATE: Rapid Analysis and Testing

A relatively new research tool, the perception analyzer, provides continuous measurement of “gut
reaction.” A group of up to 400 respondents is presented with TV or radio spots or advertising
copy. The measuring device consists of a dial that contains a 100-point range. Each participant
is given a dial and instructed to continuously record his or her reaction to the material being

As the respondents turn the dials, the information is

fed to a computer, which tabulates second-by-
second response profiles. As the results are
recorded by the computer, they are superimposed
on a video screen, enabling the researcher to view
the respondents' scores immediately. The
responses are also stored in a permanent data file
for use in further analysis. The response scores
can be broken down by categories, such as age,
income, sex, or product usage.
Itemized Rating Scales
 The respondents are provided with a scale that
has a number or brief description associated
with each category.
 The categories are ordered in terms of scale
position, and the respondents are required to
select the specified category that best
describes the object being rated.
 The commonly used itemized rating scales are
the Likert, semantic differential, and Stapel
Likert Scale
The Likert scale requires the respondents to indicate a degree of
agreement or
disagreement with each of a series of statements about the stimulus


 Strongly Disagree Neither Agree Strongly

 disagree agree nor agree
 disagree
1. Sears sells high quality merchandise. 1 2X 3 4 5

2. Sears has poor in-store service. 1 2X 3 4 5


3. I like to shop at Sears. 1 2 3X 4 5


 The analysis can be conducted on an item-by-item basis (profile

analysis), or a total (summated) score can be calculated.
Semantic Differential
The semantic differential is a seven-point rating scale with
points associated with bipolar labels that have semantic


 Powerful --:--:--:--:-X-:--:--: Weak
 Unreliable --:--:--:--:--:-X-:--: Reliable
 Modern --:--:--:--:--:--:-X-: Old-fashioned

 The negative adjective or phrase sometimes appears at

the left side of the scale and sometimes at the right.
 This controls the tendency of some respondents,
particularly those with very positive or very negative
attitudes, to mark the right- or left-hand sides without
reading the labels.
 Individual items on a semantic differential scale may be
scored on either a -3 to +3 or a 1 to 7 scale.
A Semantic Differential Scale for Measuring
Self- Concepts, Person Concepts, and Product
1) Rugged :---:---:---:---:---:---:---: Delicate
2) Excitable :---:---:---:---:---:---:---: Calm
3) Uncomfortable :---:---:---:---:---:---:---: Comfortable
4) Dominating :---:---:---:---:---:---:---: Submissive
5) Thrifty :---:---:---:---:---:---:---: Indulgent
6) Pleasant :---:---:---:---:---:---:---: Unpleasant
7) Contemporary :---:---:---:---:---:---:---: Obsolete
8) Organized :---:---:---:---:---:---:---: Unorganized
9) Rational :---:---:---:---:---:---:---: Emotional
10) Youthful :---:---:---:---:---:---:---: Mature
11) Formal :---:---:---:---:---:---:---: Informal
12) Orthodox :---:---:---:---:---:---:---: Liberal
13) Complex :---:---:---:---:---:---:---: Simple
14) Colorless :---:---:---:---:---:---:---: Colorful
15) Modest :---:---:---:---:---:---:---: Vain
Stapel Scale
The Stapel scale is a unipolar rating scale with ten
numbered from -5 to +5, without a neutral point (zero).

This scale
is usually presented vertically.



 +5 +5
 +4 +4
 +3 +3
 +2 +2X
 +1 +1
 -1 -1
 -2 -2
 -3 -3
 -4X -4
 -5 -5

The data obtained by using a Stapel scale can be

analyzed in the
same way as semantic differential data.
Basic Noncomparative Scales
Table 9.1
Scale Basic Examples Advantages Disadvantages
Continuous Place a mark on a Reaction to Easy to construct Scoring can be
Rating continuous line TV cumbersome
Scale commercials unless
Itemized Rating

Likert Scale Degrees of Measurement Easy to construct, More

agreement on a 1 of attitudes administer, and time - consuming
(strongly disagree) understand
to 5 (strongly agree)

Semantic Seven - point scale Brand, Versatile Controversy as

Differential with bipolar labels product, and to whether the
company data are interval

Stapel Unipolar ten - point Measurement Easy to construct, Confusing and

Scale scale, - 5 to +5, of attitudes administer over difficult to apply
witho ut a neutral and images telephone
point (zero)
Summary of Itemized Scale
1) Number of categories
 Although there is no single, optimal
traditional guidelines suggest that there
should be between five and nine categories

2) Balanced vs. unbalanced

 In general, the scale should
be balanced to
obtain objective data

3) Odd/even no. of categories

 If a neutral or indifferent
scale response is
possible from at least some of the respondents,
an odd number of categories should be used

4) Forced vs. non-forced

 In situations where the respondents are
expected to have no opinion, the accuracy of
the data may be improved by a non-forced scale

5) Verbal description
 An argument can be made for labeling all or
many scale categories. The category
descriptions should be located as close to the
Balanced and
Figure 9.1 Scales
Balanced Unbalanced
Jovan Musk for Men is Scale
Jovan Musk for Men is
Extremely good Extremely good
Very good Very good Good
Bad Somewhat good
Very bad Bad Extremely
bad Very bad
Rating Scale Configurations
A variety of scale configurations may be employed to measure the
gentleness of Cheer detergent. Some examples include:
Cheer detergent is:
1) Very harsh --- --- --- --- --- --- --- Very gentle

2) Very harsh 1 2 3 4 5 6 7 Very gentle

3) . Very harsh
. Neither harsh nor gentle
. Cheer
. Very gentle
4) ____ ____ ____ ____ ____ ____ ____
Very Harsh Somewhat Neither harsh Somewhat Gentle Very
harsh Harsh nor gentle gentle gentle


Very Neither harsh Very

harsh -2 -1 nor gentle0 +1 +2 gentle+3
Some Unique Rating Scale
Figure 9.3
Thermometer Scale
Instructions: Please indicate how much you like McDonald’s hamburgers by coloring in
the thermometer. Start at the bottom and color up to the temperature level that best
indicates how strong your preference is.
Like very 100
much 75
Dislike 0
very much
Smiling Face Scale
Instructions: Please point to the face that shows how much you like the Barbie Doll. If
you do not like the Barbie Doll at all, you would point to Face 1. If you liked it very much,
you would point to Face 5.

1 2 3 4 5
Chapter Eleven
Design and Procedures
The aggregate of all elements, sharing some common
set of characteristics, that comprises the universe for
the purpose of the marketing research.
A complete enumeration of the elements of a
population or study object.
A subgroup of the elements of the population
selected for participation in the study.
Table 11.1
vs. Census

Type of Study

1. Budget
The Sampling Design
Fig. 11.1

Define the Population

Determine the Sampling Frame

Select Sampling Technique(s)

Determine the Sample Size

Execute the Sampling Process

Define the Target
 The target population is the collection of
elements or objects that possess the information
sought by the researcher and about which
inferences are to be made. The target population
should be defined in terms of elements, sampling
units, extent, and time.

 An elementis the object about which or

from which the information is desired, e.g.,
the respondent.
 A sampling unitis an element, or a unit
containing the element, that is available
for selection at some stage of the
sampling process.
 Extent refers to the geographical
Define the Target
 Important qualitative factors in determining
the sample size

 the importance of the decision

 the nature of the research
 the number of variables
 the nature of the analysis
 sample sizes used in similar studies
 incidence rates
 completion rates
 resource constraints
Sample Sizes Used in Marketing
Research Studies
Table 11.2

Type of Study

Problem identificati
Classification of Sampling
Sampling Techniques

Nonprobability Probability
Sampling Techniques Sampling Techniques

Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling

Simple Random Systematic Stratified Cluster Other Sampling

Sampling Sampling Sampling Sampling Techniques
Convenience Sampling
 Convenience samplingattempts to obtain a
sample of convenient elements. Often,
respondents are selected because they happen
to be in the right place at the right time.

 use of students, and members of social

 mall intercept interviews without qualifying
the respondents
 department stores using charge account
 “people on the street” interviews
Judgmental Sampling
 Judgmental sampling is a form of
convenience sampling in which the population
elements are selected based on the judgment of
the researcher.

 test markets
 purchase engineers selected in industrial
marketing research
 bellwether precincts selected in voting
behavior research
 expert witnesses used in court
Quota Sampling
 Quota samplingmay be viewed as two-stage restricted
judgmental sampling.
 The first stage consists of developing control categories,
or quotas, of population elements.
 In the second stage, sample elements are selected based
on convenience or judgment.

 Population Sample
composition composition
Characteristic Percentage Percentage Number
Male 48 48 480
Female 52 52 520
____ ____ ____
100 100 1000
Snowball Sampling
 In snowball sampling, an initial group of
respondents is selected, usually at random.

 After being interviewed, these respondents

are asked to identify others who belong to
the target population of interest.
 Subsequent respondents are selected based
on the referrals.
Probability sampling
Simple Random
 Each element in the population has a known and
equal probability of selection.
 Each possible sample of a given size (n) has a
known and equal probability of being the
sample actually selected.
 This implies that every element is selected
independently of every other element.
Systematic Sampling
 The sample is chosen by selecting a random starting point
and then picking every ith element in succession from
the sampling frame.
 The sampling interval, i, is determined by dividing the
population size N by the sample size n and rounding to
the nearest integer.
 When the ordering of the elements is related to the
characteristic of interest, systematic sampling increases
the representativeness of the sample.
 If the ordering of the elements produces a cyclical pattern,
systematic sampling may decrease the
representativeness of the sample.
 For example, there are 100,000 elements in the
population and a sample of 1,000 is desired. In this case
the sampling interval, i, is 100. A random number between
1 and 100 is selected. If, for example, this number is 23,
the sample consists of elements 23, 123, 223, 323, 423,
523, and so on.
Stratified Sampling
 A two-step process in which the population is
partitioned into subpopulations, or strata.
 The strata should be mutually exclusive and
collectively exhaustive in that every
population element should be assigned to one
and only one stratum and no population
elements should be omitted.
 Next, elements are selected from each stratum
by a random procedure, usually SRS.
 A major objective of stratified sampling is to
increase precision without increasing cost.
Stratified Sampling
 The elements within a stratum should be as homogeneous
as possible, but the elements in different strata should
be as heterogeneous as possible.
 The stratification variables should also be closely related
to the characteristic of interest.
 Finally, the variables should decrease the cost of the
stratification process by being easy to measure and
 In proportionate stratified sampling, the size of the sample
drawn from each stratum is proportionate to the
relative size of that stratum in the total population.
 In disproportionate stratified sampling, the size of the
sample from each stratum is proportionate to the
relative size of that stratum and to the standard
deviation of the distribution of the characteristic of
interest among all the elements in that stratum.
Cluster Sampling
 The target population is first divided into mutually
exclusive and collectively exhaustive subpopulations, or
 Then a random sample of clusters is selected, based on a
probability sampling technique such as SRS.
 For each selected cluster, either all the elements are
included in the sample (one-stage) or a sample of
elements is drawn probabilistically (two-stage).
 Elements within a cluster should be as heterogeneous as
possible, but clusters themselves should be as
homogeneous as possible. Ideally, each cluster should
be a small-scale representation of the population.
 In probability proportionate to size sampling, the
clusters are sampled with probability proportional to
size. In the second stage, the probability of selecting a
sampling unit in a selected cluster varies inversely with
the size of the cluster.
Types of Cluster
Fig. 11.3 Cluster Sampling

One-Stage Two-Stage Multistage

Sampling Sampling Sampling

Simple Cluster Probability

Sampling Proportionate
to Size Sampling
Strengths and Weaknesses of
Basic Sampling Techniques
Table 11.3
Technique Strengths Weaknesses
Nonprobability Sampling Least expensive, least Selection bias, sample not
Convenience sampling time-consuming, most representative, not recommended for
convenient descriptive or causal research
Judgmental sampling Low cost, convenient, Does not allow generalization,
not time-consuming subjective
Quota sampling Sample can be controlled Selection bias, no assurance of
for certain characteristics representativeness
Snowball sampling Can estimate rare Time-consuming

Probability sampling Easily understood, Difficult to construct sampling

Simple random sampling results projectable frame, expensive, lower precision,
(SRS) no assurance of representativeness.
Systematic sampling Can increase Can decrease representativeness
easier to implement than
SRS, sampling frame not
Stratified sampling Include all important Difficult to select relevant
subpopulations, stratification variables, not feasible to
precision stratify on many variables, expensive
Cluster sampling Easy to implement, cost Imprecise, difficult to compute and
effective interpret results
Choosing Nonprobability vs.
Probability Sampling


Nature of research