Research methodology

Research Methodology

RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT

Definition of Marketing Research: “ Systematic

design, collection, record, analysis and reporting of data for

aid in making business decisions.”

Literally Research means to “search again”. It connotes

scientific investigation wherein the researcher takes another,

more careful look at the data to discover all that can be known

about the subject of study

If information generated or data collected and analyzed are to

be accurate, researcher must have an objective, without

engaging in a biased attempt to prove preconceived ideas.

Objective is to facilitate the managerial decision making process

for all aspect of business: Finance, Marketing, Personal and so

on.

1suresh


RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd

Information for

marketing decisions

Marketing

Strategy

Marketing Plan

LEVEL 1(Strategic)

LEVEL 2(Tactical)

Segmentati

on

Targeting

Positioning

Product

Price

Promotion

Place

2suresh



Market & Sales Research

Who constitute

s the buyers ?

Why do some

people buy and

some don’t?

From which

outlet are the

product bought ?

What are the

market share of

the respective

brands?

Product Research

What drives a

consumer to buy a brand ?

Which alternati

ve packaging is most preferred

?

What features /attributes of product

is important

3suresh



Price Research

What are the

responses to various

price levels ?

To what extent is

sales affected by

price?

What pricing policy should be adopted

for new product

introduction ?

Promotion(Advertising) Research

Which is the most

effective advertising

mix ?

What product features

should be emphasized ?

What advertising

theme, appeal,

slogan to use ?

How successful

are discounts coupons,

lucky draws ?

4suresh



Place (Distribution) Research

What channels should be

used ?

What type of stores

display the product and

in what quantity?

Where and what volumes

should the product be stocked ?



Four stages of decision making process:

I. Identifying problems or Opportunities: Organization must

determine where it wants to go and how it will get there.

E.g.: Develop package for a new brand

Increase the amount of repeat purchasing

Allocate advertising budget geographically.

II. Diagnosing and assessing problems or opportunities: Manager

need to gain insights about the underlying factors causing the

situation

III. Selecting and implementing a course of action: Research is

often conducted to obtain specific information that will aid in

evaluating the alternatives and in selecting the best course of

action

6suresh



IV. Evaluating the course of action: Objective measurement and

the appraisal of extent to which a given activity, project or

program has achieved its objective

7suresh



Determining when Research should be conducted:

Is sufficient time

available before

managerial decision must be made ?

YES

Is the information already on

hand, inadequate for making

the decision ?

YES

Is the decision of

considerable strategic or

tactical importance

?

YES

Does the value of the

research information exceed the

cost of conducting Research ?

NO

Conduct

Research

NO

NO

NO

YES

Research should not be conducted

Time Constraint Availability of Data Nature of decision Benefit v/s cost

8suresh


STEPS INVOLVED IN THE RESEARCH PROCESS

Decision making: Process of resolving a problem or choosing among alternative

opportunities . Decision making situation ranges from complete certainty to

absolute ambiguity

Complete Certainty Uncertainty Absolute Ambiguity

Decision

maker has all

the information

and exact

nature of

business

problem.

Research may

not be needed

at all.

Information

about

alternatives is

incomplete

Research has to

be done.

Business

problem is

unclear

Research may

be a waste of

time, however

can be

attractive for

decision

makers9suresh


STEPS INVOLVED IN THE RESEARCH PROCESS …contd

Problem discovery

Selection of exploratory

research technique

Secondary (historical

data)Pilot study

Experience survey Case study

Problem definition (statement of research

objective)

Selection of basic

research method

Survey ExperimentSecondary data study Observation

Problem discovery and definition

Planning the research design

10suresh


STEPS INVOLVED IN THE RESEARCH PROCESS …contd

Selection of sample design

Probability sampling

Nonprobability sampling

Sampling

Collection of data

(fieldwork)

Editing and coding data

Data processing

and analysis

Interpretation of findings

Report

Data gathering

Data processing and analysis

Drawing conclusion and preparing report

11suresh


“The formulation of a problem is often more essential than its solution” - Albert Einstein

Develop package for a new product

Evaluate effectiveness of alternate package design

Allocate advertising budget geographically

Determine current level of market penetration in the respective areas

Introduce new productDesign a test market to assess the likely acceptance of the new product

Adopt pricing strategy for a new product

Assess the potential levels of demand associated with various price levels

Problem discovery

Problem definition

(statement of research

objective) G

enera

l st

ate

ment

Speci

fica

lly

iden

tifi

ed

12suresh


RESEARCH DESIGN

QualitativeResearch

QuantitativeResearch

Focus of research

not on numbers but

on words and

observations

Exploratory Research

Descriptive Research

Causal Research

Determines the

extent of some

phenomena in form

of numbers

Conducted during initial

stage of research process

Clarifies the thought

about research problem

Eg. What are the10 most

important variable

consumers use to decide

while buying TV?

(ABSOLUTE AMBIGUITY)

Describes characteristics

a population

Determines the answers

to who, what, when,

where and how kind of

questions

Helps in segment and

target the market.

Eg. What are the ratings

given to variables? Who

gave the ratings? Where

(which zone/state) rating

was given?

(UNCERTAINTY)

Identifies cause-and-

effect relationship

among variables. Eg:

Influence of price,

packaging, advertising

on sales.

Exploratory and

Descriptive research

normally precede

Causal research

Eg. Will buyer purchase

TV if a variable/feature

incorporated in it?

(COMPLETE CERTAINTY)

* Degree of uncertainty of a research problem determines the research methodology13suresh

Research Design



research technique


data)

14suresh

Data gathered and recorded by someone else prior to the current needs of the

researcher. Secondary data are usually historical.

Objective for Secondary data:

Fact Finding: Eg. Sales, Market share of a product.

Population, age, gender (Census data)

Model Building: Specifying relationship between two or more variables.

Eg. Used to estimate growth, inflation for financial research

Used to calculate market potential (population X per capita income)



research technique


data)

15suresh

Classification of Secondary data:

Internal and Proprietary data: E.g.. Purchase/sales volume of products for a Shopping Mall

Books and Periodicals: E.g.. Journal of Marketing research, Business week, Financial Analyst journal

Government Sources: E.g.. Census Data (No. of members in family, gender, age etc). Economic data series like GDP, balance of Payment

Regional Publications: E.g.. Publications generated by different banks

Metro political planning agencies of the city provides about population, economies, transportation

…contd



research technique


data)

16suresh

Classification of Secondary data:

Media Sources: E.g.. TV channel viewership data

Market Share data: Retail sales volume data based on product movement.

Consumer attitude and public opinion research: Syndicated service for report findings from attitude research and opinion poll

Stock Market sources: E.g.. Reports provided by BSE, NSE,

moneycontrol.com,

…contd



research technique

Pilot study

17suresh

Pilot study generates primary data usually for qualitative analysis. It serve as a

guide for the larger study. Include focus group interviews, projective techniques and depth

interviews Focus Group Interview (FGD):



research technique

Pilot study

18suresh

Focus Group Interview (FGD):

Moderator (interviewer) and 6-10 participants.

Participants meet at a central location.

Moderator introduces the topic and encourages the group

members to discuss.

Often used for concept and refinement . (E.g.. New name or attribute for a product)

Videoconferenced focus group allows managers to send messages

to moderator

Quickly analyzed and less expensive, however small discussion group will rarely be representative sample.

…contd



research technique

Pilot study

19suresh

Projective Techniques: Questioning that enable to “project” belief and feeling of a person onto a third party, which otherwise is not expressed. Objective is to discover an individual’s attitude, motivation.

Word Association: Frequently used in testing potential brand

names.

Sentence Completion: Respondents are required to complete a number of partial statements. E.g.:

I. High salary will help me purchasing ___________________

II. Brand A is better than B because_____________________

…contd



research technique

Pilot study

20suresh

Third-Person Techniques:

Respondents are asked why a third person (e.g. a neighbor) does what he does or thinks what he thinks about a brand, company or a concept. (Providing a mask is a basic idea)

Thematic Apperception Test (TAT): Consist of pictures or cartoon in which the Research topic is centre of attention

…contd



research technique

Pilot study

22suresh

…contd II. Or respondent to construct a story looking at series of

pictures with continuity



research technique

Pilot study

23suresh

Depth interview:

Interview is extensive, unstructured and undisguised (not direct

questions).

Most of the questions are open ended

Respondent is free to respond the way he/she likes

Interpretation of such data is highly subjective

…contd



research technique

Experience survey

24suresh

Issues and ideas are discussed with those having experience in subject on which Research is being done.

Interview is done with small no. of knowledgeable people.

The purpose is to help formulate the problem and clarify the

concept.

Exploratory information from an Experience survey is not expected to be conclusive.



research technique

Case study

25suresh

Purpose is to obtain information from one or a few situation that are similar to researcher’s problem situation.


Selection of descriptive/

causal research

Survey

26suresh

Defined as a method of gathering primary data based on communication with

representative sample. Most surveys are descriptive but they can be also be designed to

provide causal explanation

Ways to carry out a Survey:

Door-to-Door Personal Interview: Personal interview conducted at the respondents home or the place of business

Mall Intercept Personal Interview: Personal interview conducted in shopping malls

Telephone Interviews: Contacting respondents by telephone to gather responses to survey questions.

Mail Survey: A self-administered questionnaire sent through the mail to

respondent.

Internet Survey: A self-administered questionnaire posted on a web site



causal research

Survey

27suresh

Speed of data collection

Respondent cooperation

Questionnaire length

Possibility of respondent misunderstanding

Degree of interviewer influence on ans.

Cost

Door to Door PI

Mall Intercep

t PI

Telephone

Interview

Mail Survey

Interview

Survey

Moderate Fast Very Fast Slow Instantaneous

ExcellentModerate

to LowGood Moderate Varies

LongModerate

to longModerate Varies Moderate

Low Low Average High High

High High Moderate None None

HighestModerate to high

Low to moderate

Lowest Low



causal research

Survey

28suresh

Cross Sectional Studies

Longitudinal Studies

Classification of Survey on

Temporal Basis

Data collected at a

single point in time.

Various segments of

population are sampled.

Relationship among

variables are

investigated by cross

tabulation (Profiling).

Eg. Ad Hoc studies,

Usage

and Attitude (U & A)

studies.

Respondents are

questioned at

different moments in

time

Similar group of

people are expected

to be in each sample.

Done usually through

a panel

Eg. Consumer panel

study,

Retail panel study



causal research

Observation

29suresh

Business Researchers can observe people, objects, events or other phenomena by

assigning the task to human observer or by using machines designed for specific

observation tasks.



causal research

Observation

30suresh

Physical patternsFootfall recorded in a shopping mall on weekend

Verbal and pectoral recordNumber of illustrations in a text book

Expressive behaviorFacial expression, tone of voice while seeing demo of a consumer durable

Temporal patternsTime taken to complete a task

Verbal behaviorCommunication of an employee with subordinates and boss

Human behavior or actionSelection of products from a shelf



causal research

Observation

31suresh

Mechanical Observation:

Television Monitoring: Eg. ‘PeopleMeter’ used to obtain ratings of

television program.

Monitoring website traffic: Recording no. of people visiting a

particular website

Measuring physiological reactions: Eg:

Eye tracking monitor: Measures unconscious eye movement, used in

recording the pattern of a hoarding or print ad being noticed

Voice Pitch analysis: Measures emotional reaction as reflected in

physiological changes in persons voice

Optical scanner and bar codes: Used in providing sales

information for particular a product



32suresh

Sampling: The process of using a small number of items or part of a large population to

make conclusion about the whole population.

Probability Non Probability

Sampling

Technique in which every

member of the population

has a known, nonzero

probability of selection.

Types:

Simple random

Systematic

Stratified

Cluster

Technique in which units

of sample are selected on

the basis of personal

judgment or convenience.

Types:

Quota

Judgment/purposive

Convenience

Snowball



Probability

33suresh

Simple random: Each possible sample has an equal

probability of being included in the sample. Each member of

sample is assigned a number and sample unit is selected by

random method.

Eg. Random digit dialing for Telephone interviews or random

selection of respondents from census data.

Systematic: Elements are selected from population at a

uniform interval that is measured in time or order.

Eg. Mall Intercept PI conducted every Wednesday in

Bigbazaar or 2 houses skipped after every door to door

interview.



Probability

34suresh

Stratified: Population divided into relatively homogeneous

group, called strata. From each stratum, a specified no. of

elements corresponding to the proportion of that stratum in

the population is selected by simple random sampling. Eg.

Out of an entire population of 50,000 of an area, if people

from age group 20-24 yrs are 10,000, then after a sample of,

say 200 is achieved by simple random sampling, the number

people between that age group will be more or less 40.

Cluster: Population is divided into groups or cluster. Eg.

Survey to be conducted in North and West.*In Stratified, each group has small variation within itself but wide variation

between groups.

There is considerable variation within each group but the groups are

similar to each other.



Non Probability

35suresh

Quota: Various subgroup in a population are represented by

sample to the exact extent that the researcher desires. Eg.

Out of an entire population of 50,000 of an area, if people

from age group 20-24 yrs are 10,000, then

a Quota of 40 people should be achieved in that age group if

the sample size is selected as 200.

Purpose is to ensure various subgroups in a population are

represented

by the sample. Quota sampling have a tendency to include

people who are

easily found within the Quota (unlike Stratified in which strata

are formed

and people are selected by simple random sampling)



Non Probability

36suresh

Judgment/purposive : Experienced researcher selects the

sample based on his/her judgment about some

characteristics required of the sample member. Eg. For a

telecom company study, the proportion of people to be

studied for a sample of 1000 are:

1. 600 (60%) those who presently use company’s sim

card

2. 250 (25%) those who have never used company’s

sim card

3. 150 (15%) those who switched after using

company’s sim card

The above proportion of sample may be less than fully

representative of population



Non Probability

37suresh

Convenience : Refers to sampling by obtaining people who

are most conveniently available. Eg. News reporters present

reviews of a movie from people coming out of theatre, who

are presumed to reflect public opinion

Snowball : Sampling procedure in which initial respondents

are selected by probability method and additional

respondents are obtained from information provided by the

initial respondents.


Types of question

38suresh

Open-ended and Closed-ended :

What do u like about Surf detergent:

1. Cleaning power

2. Fragrance

3. Dissolve easily

4. Any other (please specify)______________

Dichotomous Questions: Two alternatives given to choose

Are you a user of Surf detergent?

1. Yes

2. No


Types of question

39suresh

Multiple Choice : Usually an extension of Dichotomous

What do u like about Surf detergent:

1. Cleaning power

2. Fragrance

3. Dissolve easily

4. Any other (please specify)______________

Scaling questions (rating/ranking):

Rating: Rate the following detergent brands on a scale of 1-

10Brand A 1 2 3 4 5 6 7 8 9 10

Brand B 1 2 3 4 5 6 7 8 9 10

Brand C 1 2 3 4 5 6 7 8 9 10


Types of question

40suresh

Scaling questions (rating/ranking):

Ranking: Rank the following brand on their ability to clean

clothes: (1=best, 2=next best etc.)

Brand A ____

Brand B ____

Brand C ____


Scales used in

questionnaire

41suresh

Nominal Ordinal Scale

Scales

Number are only used

as labels

Eg.

1.Bank Account

No.

2.No. of element

in each category

Permissible

operation:

1. Mode

2. No. of element

in each category

Test of Significance:

Chi Square

Ratio

Variable have

meaningful orders

Eg.

1.Ranking of

products

Permissible

operation:

1. Mode

2. Median

3. Percentile


1. Non parametric

statistical test

2. Sign test

Variables used to

compute statistical

measures (avg, std

deviation)

Eg.

1.Rating given to

attributes of

products

Permissible

operation:

1. Mode

2. Median

3. Mean

4. Std deviation


1. z-test

2. t-test

3. F-test

Interval

All arithmetic operations

are possible on a ratios

scale.

Eg.

1.Age

2. Income

3. Weight

Permissible

operation:

1. Mode

2. Median

3. Mean

4. Std deviation


All


CASE

42suresh

Background

Rockledge Corporation shows its presence in various sectors: Steel, Telecom, Banking, and

Automobile. The company has decided to diversify its portfolio by getting in Consumer

durable sector, beginning with manufacturing of TV.

Need

Entering in TV industry


CASE

43suresh

Research Objective

Identifying preference and potential demand among various

age and income group.

Finding media sources used before buying TV

Determining appropriate price levels for sizes of TV intended

to launch: 21inches and 29 inches.

Analyzing competition on various parameters

Identifying aspiration for buying TV


CASE

44suresh

Research Design

Sources of Data

Descriptive

Primary


CASE

45suresh

Data Collection

Research approach:

• Survey Research

Research instrument:

• Questionnaire, to collect primary data

Sampling plan:

• Sampling unit (Target Population):

I. Male and Female

II. Above 27 years

III. Household income not lesser than 2,00,000 Rs.

IV. Owning TV at home

V. Location: Mumbai, Delhi, Kolkata, Chennai and

Bangalore


CASE

46suresh

Data Collection

Sampling plan:

• Sample size : 3500 (700 in each Metro) Age Group: 28 to 39 yrs - 1250

40 to 51 yrs - 1250

58 yrs and above - 1000

Income Group: 2,00,000 R s to 4,00,000 Rs - 750

4,10,000 Rs to 6,00,000 Rs - 1250

6,10,000 and above - 1500

…contd


CASE

47suresh

Data Collection

Sampling plan:

• Sampling procedure: Non Probability

(Judgment/purposive)

Contact Method: Door to door personal interview

…contd

2,00,000 R s – 4,00,000 Rs

4,10,000 Rs– 6,00,000 Rs

6,10,000 and above

Sub Total

28 – 39 yrs 250 500 500 1250

40 – 51 yrs 250 500 500 1250

58 yrs and above 250 250 500 1000

Sub Total750 1250 1500 3500


CASE

48suresh

Data Analysis

Identifying potential demand among various age group.

Definitely buy

Probably buy

May or may not buy

Probably not buy

Definitely not buy

Sub Total

28 – 39 yrs 388 225 275 163 200 1250

40 – 51 yrs 150 300 288 425 88 1250

58 yrs and above

170 120 190 400 120 1000

Sub Total 708 645 753 988 408 3500

Using Chi Square concept, at 5% significance level, there is a significant difference

among proportion and thus age group and purchase intention are dependent.


CASE

49suresh

Data Analysis

Identifying potential demand among various income group.

Definitely buy

Probably buy

May or may not buy

Probably not buy

Definitely not buy

Sub Total

2,00,000 – 4,00,000 Rs

143 248 165 143 53 750

4,10,000 – 6,00,000 Rs

350 225 338 175 163 1250

6,10,000 – 5,00,000 Rs

195 225 495 360 225 1500

Sub Total 688 698 998 678 440 3500

Using Chi Square concept, at 5% significance level, there is a significant difference

among proportion and thus income group and purchase intention are dependent.


CASE

50suresh

Data Analysis

Finding media sources used before buying TV

2

0

15

8

2

0

Chart TitleHoardings

TV Advertisement

Friends

Relatives

Colleagues

Manufacturer / dealer brochure

Newspaper

Internet

Dealer sales staff


CASE

51suresh

Data Analysis

Determining appropriate price levels for 21inches

Rs 7,000 Rs 8,000 Rs 9,000 Rs 10,000

Rs 11,000

Rs 12,000

Rs 13,000

0

5

10

15

20

25

30

Rs 7,000 Rs 8,000 Rs 9,000 Rs 10,000

Rs 11,000

Rs 12,000

Rs 13,000

05

101520253035

TV is cheap but of acceptable

quality

TV is expensive but will possibly

buy


CASE

52suresh

Data Analysis

Analyzing competition on various parameters

Price

Brand Image

Latest Model

Features

Latest Technology

Offers/Schemes 1.3

3.8

4.1

3.7

4.8

2

4.3

3

2.6

3.3

2.7

3.4

1.9

3.1

3.3

3.5

3.9

2

4.7

1

1.5

2.3

2.1

4.5

Sony

LG

Samsung

Videocon


CASE

53suresh

Data Analysis

Rating given to Brands for attribute “Latest Model” :

Sony LG Samsung VideoconRespondent 1 3 4 2 2

Respondent 2 3 2 3 1




. . . . .

. . . . .

. . . . .

. . . . .

. . . . .

. . . . .

. . . . .



Analyzing competition on various parameters….contd


CASE

54suresh

Data Analysis

Analyzing competition on various parameters….contd

Testing data by Anova at 5% significance level, there is a significant difference

in rating given to brands for “Latest Model”.

No significant difference shown on Further analysis of Sony and Samsung on

mean rating given for “latest Technology” at 5% significance, using 2 sample

hypothesis concept