Advertising and Marketing Research

Research • Research Def: The systematic gathering of information to answer a question or solve a problem.• Research is a human activity based on intellectual investigation, and aimed at discovering,

interpreting, and revising human knowledge on different aspects of the world. • What Research Is? : Research is the systematic process of collecting and analyzing information

(data) in order to increase our understanding of the phenomenon about which we are concerned or interested.Marketing Research and Advertising

• Research in Marketing: Marketing Research is the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing.

• The AMA (AMA-American Marketing Association) redefines MR: “Marketing Research is the function which 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”.

Uses of MR undertaken by companies:1. To measure market potentials, characteristics of the market and market share.2. To obtain information to make short range and long range forecasts.3. To evaluate new-product opportunities and acceptance, and to test existing products relative to

competitors product.4. To help companies make better advertising decisions.• What does research contribute to the advertising effort?1. Insurance2. Information3. Insight4. Inspiration • Various effects of an advertising message1. Create awareness2. Communicate information about attributes and benefits.3. Associate a brand with feelings and emotions.4. Create group norms5. Precipitate behavior.

Advertising Research• Research in Advertising: The foundation of any successful advertising campaign is the

understanding of motivations, perceptions and attitudes behind consumers’ choice. • Research is an important tool and is used most often in the following ways:1. To help identify consumers.2. To help look for new ideas in products or services.

3. To help improve current offerings.4. To help pinpoint causes of certain problems.5. To monitor activities.6. To help in communication development.7. To study promotional tools.

• Objectives of advertising research:We can distinguish four possible objectives for advertising research. These are, in time-order:

1. To help define advertising strategy and to provide understanding of the market and the target consumer.

2. To provide a basis for developing and modifying campaign ideas through looking at consumer reactions.

3. To provide a basis for final decisions about whether or not a campaign is fit to run.4. To help us decide what our advertising has achieved once it has been exposed.

This should be seen as a cyclical process, since the output of research done to meet the fourth objective feeds naturally back into the first objective for the development of a subsequent campaign.

• Advertising research primarily relates to three critical decisions that have to be made to develop an advertising program:1. Setting objectives.2. Selecting the message and3. Choosing appropriate media vehicles.Research process:

1. Define Research Problem/objective2. Determine Expected value of perfect information3. Research technique and Determine Data Collection method4. Determine the measurement techniques5. Research Design/ Sampling6. Data Processing and Analysis7. Determine Time And cost8. Define the ethics of research9. Prepare the research report

Step 1 a) Problem discoveryb) Problem definitionc) State Research objectivesd) Development of hypotheses

Step1: Define Research Problem/objectivea. PROBLEM DISCOVERY

1. It involves a search for causation among symptoms, problems, and decisions. 2. A symptom is a condition that indicates the existence of a problem, and we, must be careful not

to confuse this with a problem.

3. Symptoms occupy an essential place in the problem-solving process, for the underlying problem. 4. A problem exists whenever one faces a question whose answer – or a need whose fulfilment –

involves doubt and uncertainty.5. If there is no answer or solution, there is no problem (although the consequences might be

terrible); 6. and if there is only a single possible answer or solution, there is no problem.7. A decision is a determination or resolution of a question. 8. In the terms of a business executive, a decision is the determination of a course of action to be

taken i.e. which alternative to choose. 9. Many routines or repetitive decisions to which marketing research is applied often invoke a

complex of problems, and considerable work is entailed in the choice of the best available course of action or best alternative.

10. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. b. Problem definition

1. Problem definition involves discussion with the decision-makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups.

2. Once the problem has been precisely defined, the research can be designed and conducted properly.c. State Research objectives

1. The research objective is a statement, in as precise terminology as possible, of what information is needed.

2. The research objective should be framed so that obtaining the information will ensure that the research purpose is satisfied.

• Research objectives have three components:Research question:

1. It specifies the information the decision maker needs. 2. The research question asks what specific information is required to achieve the research. 3. If the research question is answered by the research, then the information should aid the

decision maker.d. Development of hypotheses:

1. A hypothesis is a possible answer to a research question. 2. The research determines which of these alternative answers is correct. 3. A hypothesis is a proposed explanation for an observable phenomenon. A hypothesis is a

tentative statement that proposes a possible explanation to some phenomenon or event. A useful hypothesis is a testable statement which may include a prediction.

4. A hypothesis should not be confused with a theory. Theories are general explanations based on a large amount of data.

Formalized Hypotheses example: • If skin cancer is related to ultraviolet light, then people with a high exposure to uv light will have

a higher frequency of skin cancer. • If leaf color change is related to temperature, then exposing plants to low temperatures will

result in changes in leaf color.• Notice that these statements contain the words, if and then. They are necessary in a formalized

hypothesis. But not all if-then statements are hypotheses. For example, "If I play the lottery, then I will get rich." This is a simple prediction. In a formalized hypothesis, a tentative relationship is stated.

• For example, if the frequency of winning is related to frequency of buying lottery tickets. "Then" is followed by a prediction of what will happen if you increase or decrease the frequency of buying lottery tickets. If you always ask yourself that if one thing is related to another, then you should be able to test it.

• Formalized hypotheses contain two variables. One is "independent" and the other is "dependent." The independent variable is the one you, the "scientist" control and the dependent variable is the one that you observe and/or measure the results. In the statements above the dependent variable is blue and the independent variable is red.

• The ultimate value of a formalized hypothesis is it forces us to think about what results we should look for in an experiment.

We have two types of hypothesis:• Null Hypothesis Ho: represents the status quo, the conservative theory from previous

experience that we accept until proven false. • (Trial defendant assumed not guilty unless otherwise proved)• Ho always contains the = sign. We always assume that Ho is true. It states that there is no

difference between a parameter and a hypothesized value.• Alternative Hypothesis Ha: a theory that contradicts the null hypothesis, by specifying a

DIFFERENCE between the parameter and the hypothesized value. It contains the claim, or what the researcher wants to prove.

• Ho: : ¹ :o or Ho: : < :o or Ho: : > :o• Example: A chemical company claims its products will increase the life of car batteries. The

mean lifetime of cars’ batteries is 36 months........Test the company’s claim. If it’s more than 36 months its accepted or otherwise rejected.Step2: Determine Expected value of perfect information

• Greater the information available the better the management is poised to take a decision. • However care should be taken to note that the sourcing of the information should not cost the

Management greater than the value of the information generated.The Value of Information

• Information can be useful, but what determines its real value to the organization? In general, the value of information is determined by:

1. The ability and willingness to act on the information. 2. The accuracy of the information.

3. The level of indecisiveness that would exist without the information. 4. The amount of variation in the possible results. 5. The level of risk aversion. 6. The reaction of competitors to any decision improved by the information. 7. The cost of the information in terms of time and money.

Characteristics of Valuable Information1. Relevance2. Quality3. Timeliness4. Completeness

Step3: Research Technique and Determine Data Collection method• There are two broad categories of research: 1. Qualitative research and2. Quantitative research.

Qualitative research• Qualitative research takes measurements that are difficult to analyze mathematically. • Qualitative researchers aim to gather an in-depth understanding of human behavior and the

reasons that govern such behavior. The qualitative method investigates the why and how of decision making, not just what, where, when. Hence, smaller but focused samples are more often needed, rather than large samples.

• Qualitative methods produce information only on the particular cases studied, and any more general conclusions are only hypotheses (informative guesses). Quantitative methods can be used to verify which of such hypotheses are true.Quantitative research

• Quantitative research is research which collects measurements that can be analyzed mathematically. Quantitative research refers to the systematic empirical investigation of quantitative properties and phenomena and their relationships. The objective of quantitative research is to develop and employ mathematical models, theories and/or hypotheses pertaining to phenomena.Some examples of when qualitative research is helpful include:

• Testing response to advertising messages and concepts • Analyzing response to products and features

– Exploring what issues should be tested during quantitative research Quantitative research is the method to use when:

1. Measuring market size 2. Analyzing demand of a new product 3. Determining how many people exhibit a particular attitude or behavior 4. Measuring the size of particular market segments

Qualitative methods have at least four distinguishing characteristics:1. Small numbers of respondents. The idea is to devote a considerable amount of time on each interview to get to the heart of a matter.

2. Unstructured question formats. That is, the questions are not completely predetermined and the interviewer is free to probe for all details and underlying feelings. 3. Indirect measurement of respondents' feelings and beliefs. Respondents provide descriptive information about their thought and feelings. These are not easily projected to the population.4. Direct observation. The interviewer not only records answers but observes how questions affect interviewees. Hesitant answers, agitation, smiling, sweating, calmness, boredom etc. are all observable and all tell us something about the individuals’ state of mind.Data collection technique or research Technique:

• Data play an important role in research. Facts, information or premises systematically collected and formally presented for the purpose of drawing inferences may be called data. Sources of Data - Primary and Secondary

• There are two main sources of data - primary and secondary. • Primary research is conducted from scratch.• It is original and collected to solve the problem in hand. Secondary research, also known as desk

research, already exists since it has been collected for other purposes.Primary vs. Secondary Data

• Primary data are originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all nine steps of the marketing research process.

• Secondary data are data which have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively.

• Primary data1. Surveys2. Observation Research3. Depth interviews4. Focus Groups.5. Experimentation

• A. Method of collecting primary data 1. Surveys:

• The Survey method is the technique of gathering data by asking questions to people who are thought to have desired information. A formal list of questionnaire is prepared. Generally a non disguised approach is used. The respondents are asked questions on their demographic interest opinion.

• 1. Types of Surveys:1. Telephone2. Face-to-face Interviews3. Mail4. Internet / Computer • 1.Telephone Interview.• Telephone ownership is very common in developed countries. It is ideal for collecting data from

a geographically dispersed sample.

• The interviews tend to be very structured and tend to lack depth. Telephone interviews are cheaper to conduct than face-to-face interviews (on a per person basis).

• Advantages of telephone interviews1. Can be geographically spread2. Can be set up and conducted relatively cheaply3. Random samples can be selected4. Cheaper than face-to-face interviews• Disadvantages of telephone interviews1. Respondents can simply hang up2. Interviews tend to be a lot shorter3. Visual aids cannot be used4. Researchers cannot behavior or body language• 2. Face-to-face Interviews.• Face-to face interviews are conducted between a market researcher and a respondent. • Data is collected on a survey. Some surveys are very rigid or 'structured' and use closed

questions. • Data is easily compared. Other face-to-face interviews are more 'in depth,' and depend upon

more open forms of questioning. The research will probe and develop points of interest. • Advantages of face-to-face interviews1. They allow more 'depth' 2. Physical prompts such as products and pictures can be used 3. Body language can emphasize responses 4. Respondents can be 'observed' at the same time • Disadvantages of face-to-face interviews1. Interviews can be expensive 2. It can take a long period of time to arrange and conduct. 3. Some respondents will give biased responses when face-to-face with a researcher • 3. The Internet• The Internet can be used in a number of ways to collect primary data. Visitors to sites can be

asked to complete electronic questionnaires. • However responses will increase if an incentive is offered such as a free newsletter, or free

membership. Other important data is collected when visitors sign up for membership. • Advantages of the Internet1. Relatively inexpensive 2. Uses graphics and visual aids 3. Random samples can be selected 4. Visitors tend to be loyal to particular sites and are willing to give up time to complete the forms • Disadvantages of the Internet1. Only surveys current, not potential customers. 2. Needs knowledge of software to set up questionnaires and methods of processing data3. May deter visitors from your website.

• 4.Mail Survey• In many countries, the mail survey is the most appropriate way to gather primary data. • Lists are colleted, or purchased, and a predesigned questionnaire is mailed to a sample of

respondents. • Mail surveys do not tend to generate more than a 5-10% response rate. • However, a second mailing to prompt or remind respondents tends to improve response rates. • Mail surveys are less popular with the advent of technologies such as the Internet and

telephones, especially call centers.2. Observation Research:

• Observational methods are tools to gather information on current behavior.• A wide ranging set of research techniques aimed at observing consumers interacting naturally

with their surroundings including products and services in use. • A key advantage of observation research is that often the respondent or consumer is unaware

that they are being observed, allowing their behavior to be observed naturally.• Observational is use for collecting purely behavioral data such as in-store traffic patterns or

traffic passing a certain point on a highway system.

1. People watching peoplea. Mystery Shoppersb. One-Way Mirror Observations

A research method

that relies on three types of

observation:

people watching people

people watching an activity

machines watching people

Observation Research

Mystery ShoppersOne-Way MirrorsTypes of

ObservationResearch

Types ofObservation

ResearchAudits

Machines Watching

People

Machines Watching

People

People Watching

People

People Watching

PeoplePeople Watching an Activity

People Watching an Activity

Traffic CountersPassive People Meter

33

c. Shopper Patternsd. Content Analysis e. Humanistic Inquiry

a. Mystery Shoppers

b. One-Way Mirror Observations• The practice of viewing focus groups, depth interviews or other respondent interviews through a

one-way mirror, so that the respondent cannot see the observers. c. Shopper Patterns

• Refers to drawings that record the footsteps of a shopper through a store. They show the flow of a representative sample of shoppers through a store.

• [Also used to study the effect of music on shopper behavior. For instance, we know that slow music makes them stay longer and buy more.]

d. Content Analysis • Content analysis is an observation techniques used to analyze written material into meaningful

units, using carefully applied rules.• It is defined as the objective, systematic and quantitative description of the manifest content of

communication.• A technique used to study written material, usually advertising copy, by breaking it into

meaningful units, using carefully applied rules. • Content Analysis attempts to determine what is being communicated to a target audience by

objectively and systematically describing the communication's content.e. Humanistic Inquiry

• A method of inquiry in which the researcher is immersed in [becomes a part of] the system or group under study, rather than using the scientific method of standing apart from the system being studied. 2. People Watching an Activity

• - refers to people (rather than machines) watching other people. Types include:• Audit: Audits involve the physical inspection of inventories, sales receipts, shelf facing and other

aspects of marketing mix to determine sales, market share, relative price, distribution and other

People employed to pose

as typical consumer

s and shop at

retail stores or

other businesse

s to measure service

levels and business

performance.

relevant information. The different types of audits are store audits, product audits and retail distribution audits

• Physiological Measurement refers to measuring the level of involuntary change in a person's activation based upon the stimuli of interest.3. Machine Observation Types:

• a. Traffic Counters - Machines used to measure vehicular flow over a particular stretch of roadway. 3. Depth interviews:

• Depth interviews are like lengthy psychoanalytic sessions between a single respondent and a highly skilled interviewer.

• The idea is to get to the deep, hidden underlying attitudes and feelings the respondent has towards a product, service, company or problems which a product is trying to solve.

• Individual depth interviews typically require 30-45minutes. The interviewer does not have a specific set of pre-specified questions that must be asked according to the order imposed by a questionnaire. Instead, there is freedom to create questions, to probe those responses that appear relevant, and generally to try to develop the best set of data in any way practical.

• Subject of interest is discussed in detail.• There is no fixed pattern for eliciting information from the respondents.• Generally conducted by highly trained interviewers. They must be thorough in probing the

respondents.• The interviewee is asked about the subject of his choice, coffee, for example, and an attempt is

made to explore the respondents’ attitudes in depth by probing extensively into any other areas which may come up.

• Interviewers have a general series of topics that they will introduce – perhaps such topics as coffee, or sleep, and will introduce them from time to time if the respondent does not bring them up.

• Tone of the interview is permissive and the respondent is allowed to talk as much as he likes.• The interviewer must not influence the answers of the respondent.• The interpretation of the answers is very subjective and knowledge of human behavior is

required to analyze the information received.• However the interviewer must follow one rule; one must not consciously try to affect the

content of the answers given by the respondents. • The respondent. The respondent must feel free to reply to the various questions, probes, and

other, subtler, ways of encouraging responses in the manner deemed most appropriate.• Individual depth interviews uses three questioning techniques namely:• 1. Laddering: “The laddering method of interviewing…is a technique that is particularly helpful

in eliciting goals and underlying values, and therefore, possibly helpful during early stages of user experience research.

• The laddering method of interviewing is technique to understanding people’s core values and beliefs.

• Laddering Technique is use to describe the linkages between customers’ values and their overall purchasing behavior: the Means End Chain theory.

• This theory provides both a framework for capturing qualitative laddering research data in the consumer space and a model for assessing consumer values and behaviors.

• According to the Means End Chain theory, there is a hierarchy of consumer perceptions and product knowledge that ranges from attributes (A) to consumption consequences (C) to personal values (V), as follows:

• Attribute: At the top level of this hierarchy, attributes are most recognizable by individuals. Individuals recognize the attributes of a product or system easily. For example, “I like this car, because it is a convertible.”

• Consequence: In turn, the attributes have consequences for the individual. For example, the convertible makes its driver feel young and free. Each attribute may have one or more consequences for any given individual.

• Core values: finally, each consequence is linked to a core value of the person’s life. For example, the sense of youth makes that driver feel attractive.

• Laddering involves having respondents identify attributes that distinguish brands by asking questions.

• Each distinguishing attribute is then probed to determine why it is important or meaningful. • These reasons are then probed to determine why it is important, and so forth.• The purpose is to uncover the “network of meanings” associated with the product, brand, or

concept.• 2.Hidden-issue questioning: Hidden-issue questioning focuses on individual respondents

feelings about sensitive issues. • Analysis on focus on common underlying themes across respondents. These themes can then be

used to guide advertising development• 3.Symbolic questioning: symbolic analysis is a technique used by depth interviewers in which

deeper symbolic meanings are probed by asking questions about their opposites • Individual depth interviews have been found to generate more and higher quality ideas on a per

respondent basis than either focus or minigroups. • Depth interviews are particularly appropriate when:• Detailed probing of an individual’s behavior, attitude or needs is required;• The subject matter under discussion is likely to be of a highly confidential nature (e. g. personal

investment)• The subject matter is of an emotionally charged or embarrassing nature;• Certain strong, socially acceptable norms exist (e.g. baby feeding) and the need to conform in a

group discussion may influence responses;• Where highly detailed understanding of complicated behavior or decision- making pattern (e.g.

planning the family holiday) are required; or• The interviews are with professional people or with people on the subject of their jobs 9 e.g.

finance directors)• Depth interviews are of most value where a study deals with

• (1) a confidential, emotionally charged or embarrassing matter; • (2) a behaviour for which socially acceptable norms exist and the need to conform in group

discussions influences responses; (• (3) a complex behavioural or decision-making process that requires a detailed idiosyncratic,

step-by-step description; and • (4) when group interviews are difficult to schedule for the target population.

4. Focus Groups.• A Focus group discussion is the process of obtaining possible ideas or solutions to a marketing

problem from a group of respondents by discussing it.• The emphasis in this method is on the results of group interaction when focused on a series of

topics a group moderator introduces.• The standard focus group interview involves 8 and 12 individuals and lasts about 2 hours. • Normally each group is designed to reflect the characteristics of a particular market segment.

The respondents are selected according to the relevant sampling plan and meet at a central location that generally has facility for taping and/ or filming the interviews.

• The discussion itself is “led” by a moderator. • The moderator attempts to progress through three stages during the interviewer: • (1) establish rapport with the group, structure the rules of group interaction, and set objectives; • (2) provoke intense discussion in the relevant areas; and• (3) summarize the group’s responses to determine the extent of agreement. The general either

the moderator or a second person prepares a summary of each session after analyzing the session’s transcript.

• Focus Group Interviews can be applied to:• Basic- need studies for product idea creation,• New product idea or concept exploration,• Product positioning studies,• Advertising and communications research,• Background studies on consumer’s frames or reference,• Establishment of consumer vocabulary as a preliminary step in questionnaire development and,• Determination of attitudes and behavior. • Advantages

1. Each individual is able to expand and refine their opinions in the interaction with the other members.

2. This process provides more detailed and accurate information than could be derived from each separately.

3. A group interview situation is generally more exciting and offers more stimulation to the participants than the standard depth interviews.

4. The security of being in a crowd encourages some members to speak out when they otherwise would not.

5. As the questions raised by the moderator are addressed to the entire group rather than an individual the answer contains a degree of spontaneity that is not produced by other techniques.

6. Focus groups can be used successfully with children over five. They are also very useful with adults in developing countries where literacy rates are low and survey research is difficult.

7. A final major advantage of focus groups is that executives often observe the interview (from behind mirrors) or watch films of the interview

• Disadvantages1. Since focus group interviews last 1.5 to 3 hours and take place at a central location, securing

cooperation from a random sample is difficult.2. Those who attend group interviews and actively participate in them are likely to be different in

many respects from those who do not.3. There are chances that participants may go along with the popular opinion instead of expressing

their own which may be contrary to the popular opinions.4. The presence of a one-way mirror and /or an observer(s) has been found to distort participant’s

responses. 5. The moderator can introduce serious biases in the interview by shifting topics too rapidly

verbally or nonverbally encouraging certain answers, failing to cover specific areas, and so forth.6. Focus groups are expensive on a per respondent basis.

5. EXPERIMENTATION• Experimentation is a research method in which one or more variables are consciously

manipulated and the outcome or effect of that manipulation on other variables is observed.• Experimental methods are commonly applied to determine causal relationships or to quantify

the magnitude of response of a variable. • Thus Experiments are defined as studies in which conditions are controlled so that one or more

independent variable(s) can be manipulated to test a hypothesis about a dependent variable(s).• In other words, in experimental research the researcher manipulates the independent/

experimental variable(s) and then measures the effect of this manipulation on the dependent variable(s)

• Examples• The effect of price changes on sales volume of a particular product can be examined by actually

varying the price of the product• The very basis of experimental research lies in the manipulation of independent variables• Advertising Experiment• Will replacing commercial A with commercial B lead to a marked increase in consumer

preference for a company’s brand?• Pricing Experiment• Can a company improve the profitability of its fashion clothing line by increasing its price by 10

percent?• Sales Productivity Experiment• Will an increase in the average number of sales calls per customer from six to eight per year

significantly improve sales?

• Shelf Space Experiment• Will decreasing the shelf space allocated to brand X detergent by 25 percent significantly lower

its sales?• Direct Mail Experiment• Will it be worthwhile to mail last year's donors an attractive (but expensive) brochure describing

the company’s activities and soliciting higher contributions for this year?

• Experimental Settings - are three types:• a. Laboratory Experiments - Experiments conducted in a carefully controlled environment (i.e.,

laboratory) where all (or most) variables can be controlled.• However, while the laboratory allows the researcher to control the variables involved, the lab

may not accurately represent the real marketplace. • Thus, the research results may not hold up when transferred to (generalized to) the actual

marketplace.• Thus, lab results are said to have good internal validity, but often lack external validity.• This suggests that lab results are more likely to be statistically correct than results from field

experiments, but less likely to be generalizable to the population of interest which is always located outside of the laboratory

• b. Field Experiments - Tests conducted outside the laboratory in an actual market environment.• A field experiment is a research study conducted in a natural setting in which the experimenter

manipulates one or more independent variables under conditions controlled as carefully as the situation will permit

• A test market is a good example. • This solves the problem of realism of the test environment, but factors other than the

independent variable(s) of interest may influence the observed changes in the dependent variable of interest because the researcher cannot control all other independent variables that may affect the dependent variable.

• For instance, the researcher cannot control nor even precisely measure the effects of competitive actions, the weather, the economy, societal trends, the political climate, nor other elements of the uncontrollable environment.

• A major difference between the two approaches is the degree of control available during the manipulation and measurement process. A laboratory experiment clearly offers better control than a field experiment with respect to extraneous factors capable of influencing consumer preferences.

• A laboratory experiment is a research study conducted in a contrived setting in which the effect of all, or nearly all, influential but irrelevant independent variables is kept to a minimum.

• A field experiment is a research study conducted in a natural setting in which the experimenter manipulates one or more independent variables under conditions controlled as carefully as the situation will permit.

• A.--External and Internal Validity• The validity of experimental results is usually evaluated on two dimensions: external validity and

internal validity.

• Internal validity is the extent to which observed results are solely due to the experimental manipulation.

• External validity is the extent to which observed results are likely to hold beyond the experimental setting.

• An ideal experiment is one whose results will have high internal as well as external validity, although there is usually a trade-off between these two forms of validity.

• Laboratory experiments generally have an advantage over field experiments in terms of internal validity but not external validity.

• Field experiments generally have an advantage over laboratory experiments in terms of external validity but not internal validity.

• Internal Validity• Internal validity is the extent to which observed results are solely due to the experimental

manipulation• Laboratory experiments are generally high on internal validity• Field experiments are generally low on internal validity• External Validity• External validity is the extent to which observed results are likely to hold beyond the

experimental setting• Laboratory experiments are generally low on external validity• Field experiments are generally high on external validity• Thus, field experiments often lack internal validity, while having better external validity.• This suggests that the results have a better chance of being statistically wrong, but they are

more likely generalizable to other similar market situations, if they are statistically correct.• Continuous research• A survey conducted on a regular and frequent basis among parallel samples within the same

population or a survey in which the interviews are spread over a long period of time. . • In this way, a picture of market trends can be built up. • This type of longitudinal research is often funded on a syndicated basis. • Syndicated research usually involves an independent research company collecting data and

supplying it simultaneously to a number of clients.

• Consumer Panels

Same people Different people

Same questions True panel Cohort panel

Different questions Omnibus panel Cross-sectional survey

• B. Method of collecting secondary data• Secondary data is data which has been collected by individuals or agencies for purposes other

than those of our particular research study.• Uses of Secondary Data1. Identify the problem2. Better define the problem3. Develop an approach to the problem4. Formulate an appropriate research design (for example, by identifying the key variables)5. Answer certain research questions and test some hypotheses6. Interpret primary data more insightfully

• A Classification of Secondary Data

• Sources of information• Secondary sources of information may be divided into two categories: internal sources and

external sources. • Internal sources of secondary information• Sales data: All organizations collect information in the course of their everyday operations.

Orders are received and delivered, costs are recorded, sales personnel submit visit reports, invoices are sent out, and returned goods are recorded and so on. Much of this information is of potential use in marketing research but a surprising amount of it is actually used.

• For example, consider how much information can be obtained from sales orders and invoices: • Sales by territory• Sales by customer type• Prices and discounts• Average size of order by customer, customer type, geographical area• Average sales by sales person and• Sales by pack size and pack type, etc.• This type of data is useful for identifying an organization’s most profitable product and

customers. It can also serve to track trends within the enterprise's existing customer group. • Financial data:• An organization has a great deal of data within its files on the cost of producing, storing,

transporting and marketing each of its products and product lines.

Secondary Data

Ready to Use

Requires Further Processing

PublishedMaterials

Computerized Databases

Syndicated Services

Fig. 4.1

Internal External

• Such data has many uses in marketing research including allowing measurement of the efficiency of marketing operations.

• Transport data:• Companies that keep good records relating to their transport operations are well placed to

establish which are the most profitable routes, and loads, as well as the most cost effective routing patterns.

• Storage data:• The rate of stockturn, stockhandling costs, assessing the efficiency of certain marketing

operations and the efficiency of the marketing system as a whole.• External sources of secondary information• The marketing researcher who seriously seeks after useful secondary data is more often

surprised by its abundance than by its scarcity. • The main sources of external secondary sources are (1) government (federal, state and local) (2)

trade associations (3) commercial services (4) national and international institutions. • Government statistics: These may include all or some of the following:· Population censuses·

Social surveys, family expenditure surveys· Import/export statistics· Production statistics· Agricultural statistics. Trade associations

• Trade associations: Trade associations differ widely in the extent of their data collection and information dissemination activities. However, it is worth checking with them to determine what they do publish. At the very least one would normally expect that they would produce a trade directory and, perhaps, a yearbook.

• Commercial services: Commercial services: Published market research reports and other publications are available from a wide range of organizations which charge for their information.

• Typically, marketing people are interested in media statistics and consumer information which has been obtained from large scale consumer or farmer panels.

• The commercial organisation funds the collection of the data, which is wide ranging in its content, and hopes to make its money from selling this data to interested parties.

• National and international institutions: Bank economic reviews, university research reports, journals and articles are all useful sources to contact. International agencies such as World Bank, IMF, IFAD, UNDP, ITC, FAO and ILO produce a plethora of secondary data which can prove extremely useful to the marketing researcher.Step: 4. Determine the measurement techniques

• There are three basic measurement TechniqueA. Questionnaires B. Attitude scalesC. Projective techniques

• A. Questionnaires• A Questionnaire is simply a formalized schedule to obtain and record specified and relevant

information with tolerable accuracy and completeness.• In other words, it directs the questioning process and promotes clear and proper recording.• Questionnaires are frequently used in quantitative marketing research.

• They are a valuable method of collecting a wide range of information from a large number of respondents.

• Good questionnaire construction is critical to the success of a survey. • Inappropriate questions, incorrect ordering of questions, incorrect scaling, or bad questionnaire

format can make the survey valueless. • A useful method for checking a questionnaire for problems is to pretest it. • This usually involves giving it to a small sample of respondents, then interviewing the

respondents to get their impressions and to confirm that the questions accurately captured their opinions.

• The Major Decisions in Questionnaire Design• 1. What should be asked?• 2. How should each question be phrased?• 3. In what sequence should the questions be arranged?• 4. What questionnaire layout will best serve the research objectives?• 5. How should the questionnaire be pretested? Does the questionnaire need to be revised?• Phrasing Questions• Open-Ended Questions• Fixed-Alternative Questions or close-ended• Classifying Surveys by Degree of Structure and Degree of Disguise

• Guidelines for Devising a Good Questionnaire• 1. Write specific questions only after you have thoroughly thought through your research

questions. Write the research questions down.• 2. When you are working on the questionnaire, constantly refer to your research questions.• 3. For each question you write, explain how the information obtained from responses will help

in answering your research questions.• Preliminary Considerations for Questionnaire Construction

Structured Unstructured

Undisguised

Disguised

Example:

Typical descriptive surveywith straight-forward, structured questions

Example:

Survey with open-endedquestions to discover “new”answers or focus group interview

Example:

Survey interview to measurebrand A’s image versuscompetitive brands’ images or brand recall (unaided recall)

Example:

Projection techniques usedmostly for exploratory research

• 1. Exactly what information is required?• 2. Exactly who are appropriate target respondents?• 3. What data collection method will be used to survey respondents?• Principles of Developing Questions1. Be clear and precise.2. Response choices should not overlap.3. Use natural and familiar language.4. Do not use words or phrases that show bias.5. Avoid double-barreled questions.6. State explicit alternatives.7. Questions should meet criteria of validity and reliability.• Which questionnaire design to use in case study:• In exploratory research design, flexible and open ended questionnaire is used.• In descriptive and causal research design close ended and structured questionnaire is used. • Question order1. Questions should be ordered so as to seem logical to the respondent2. First questions should be relevant and easy3. Questions are effectively ordered from most salient to least salient4. Demographic questions should not be covered at the beginning5. Potentially objectionable questions are placed near the end • B. ATTITUDE MEASUREMENT TECHNIQUES

• Attitude Measurement • Majority of questions in marketing research are designed to measure attitudes• Attitudes include1. Information possessed2. Feelings of like and/or dislike3. Intentions to behave4. Management wants to understand and influence behavior• Reasons for Measuring Attitudes1. Attitudes lead to behavior2. More feasible to ask questions on attitudes than to observe and interpret behavior3. Large capacity for diagnosis and explanation

• Attitude Research • Attitudes directly affect purchase decisions and these in turn, directly affect attitudes.

• What Are Attitudes?• Mental states used by individuals to structure the way they perceive their environment and

guide the way they respond to it• Components of Attitude1. Cognitive or Knowledge Component2. Liking or Affective Component3. Intentions or Actions Components

• Three Components of Attitude

• The relationship of beliefs to attitudes• Beliefs are translated into attitudes through values • BELIEF: Lawyers overcharge their clients• VALUE: Fairness• ATTITUDE: I don’t like lawyers• Cognitive structure

AttitudeAction/Behavior

Affective Component

Cognitive Component

ActionComponent

Beliefs:Lawyers overchargetheir clientsValues:Fairness

Attitude:I don’t like lawyers

• Cognitive structure

• Cognitive structure

• Cognitive structure

Beliefs:Lawyers overchargetheir clients

Lawyershelp theirclients lieValues:FairnessHonesty

Attitude:I don’t like lawyers

Beliefs:Lawyers overchargetheir clients

Lawyershelp theirclients lie

Lawyershelp richpeopleValues:FairnessHonestyEquality

Attitude:I don’t like lawyers

Beliefs:Lawyers overchargetheir clients

Lawyershelp theirclients lie

LawyershelpeverybodyValues:FairnessHonestyEquality

Attitude:I don’t like lawyers

• Measurement and Scaling• Measurement :Standardized process of assigning numbers or other symbols to certain

characteristics of objects of interests according to pre-specified rules • Characteristics for Standardization • One-to-one correspondence between the symbol and the characteristic in the object that is

being measured • Rules for assignment should be invariant over time and the objects being measured• Scaling :Process of creating a continuum on which objects are located according to the amount

of the measured characteristic that the object possesses• Measurement:

• Attitude measurement is commonly referred to as scaling.• Structured techniques can provide a more objective measurement system, one that is more

comparable to a scale or yardstick. The term scaling has been applied to the efforts to measure attitudes objectively, and a number of useful scales have been developed.

• Scales of Measurement• Scales of measurement include:

1. Nominal2. Ordinal3. Interval4. Ratio

• The scale determines the amount of information contained in the data.• The scale indicates the data summarization and statistical analyses that are most appropriate.• Various scaling method• 1. Nominal scale• A set of data is said to be nominal if the values / observations belonging to it can be assigned a

code in the form of a number where the numbers are simply labels. • You can count but not order or measure nominal data. • For example, in a data set males could be coded as 0, females as 1; marital status of an

individual could be coded as Y if married, N if single. • 2. Ordinal Scale:• They are the simplest attitude measuring scales used in marketing research.

Standardized process of assigning numbers to certain characteristics of objectsType of measurement depends on type of data!

Type of Measurement

NominalOrdinalIntervalRatio

Information contentincreases

• They serve to rank respondents according to some characteristics such as favorability to a certain brand, or to rank items such as brands in order of consumer preference.

• They do not measure the degree of favorability of the different rankings. • All the scale tells is that the individual or item has more, less, or the same amount of the

characteristic being measured as some other time.• They are the most widely used type of scales in marketing research.• A set of data is said to be ordinal if the values / observations belonging to it can be ranked (put

in order) or have a rating scale attached. You can count and order, but not measure, ordinal data.

• A rating of 5 indicates more enjoyment than a rating of 4, for example, so such data are ordinal.• However, the distinction between neighboring points on the scale is not necessarily always the

same. • 3. Interval Scales• They separate individuals or items by rank order but measure the distance between rank

positions in equal units.• Such a scale permits the researcher to say that the position 4 is above position 3 on the scale,

and also the distance from position 5 to 4 is same as from 4 to 3. • Such a scale however does not permit conclusions that position 6 is twice as strong as position 3

because no zero position has been established.• An interval scale is a scale of measurement where the distance between any two adjacent units

of measurement (or 'intervals') is the same but the zero point is arbitrary. Scores on an interval scale can be added and subtracted but cannot be meaningfully multiplied or divided.

• For example, the time interval between the starts of years 1981 and 1982 is the same as that between 1983 and 1984, namely 365 days.

• The zero point, year 1 AD, is arbitrary; time did not begin then. Other examples of interval scales include the heights of tides, and the measurement of longitude.

• 4. Ratio Scales• If one measures the distance between two points as four feet and between two other points as

two feet, it is possible say that one distance is twice that of the other because each distance is measured from an absolute zero.

• A scale that permits such measurements is called ratio scale.• This is the only type of scale that permits us to make comparisons of absolute magnitude. For

example, we can say that an annual income of $ 80,000 is two times as large as an income of $ 40,000.

• Various scaling method• 1. Simple Attitude Scaling• In its most basic form, attitude scaling requires that an individual agree with a statement or

respond to a single question. This type of self-rating scale merely classifies respondents into one of two categories;Simplified Scaling ExampleTHE PRESIDENT SHOULD RUN FOR RE-ELECTION _______ AGREE ______ DISAGREE

• 2. Category Scales

• A category scale is a more sensitive measure than a scale having only two response categories - it provides more information.

• Questions’ working is an extremely important factor in the usefulness of these scales.• Example of Category Scale

How important were the following in your decision to visit Kashmir (check one for each item) VERY SOMEWHAT NOT TOOIMPORTANT IMPORTANT IMPORTANT

CLIMATE ___________ ___________ ___________COST OF TRAVEL ___________ ___________ ___________FAMILY ORIENTED ___________ ___________ ___________EDUCATIONAL/HISTORICAL ASPECTS _________ ___________ ___________FAMILIARITY WITH AREA ___________ ___________ ___________

• 3. Method of Summated Ratings: The Likert Scale• Likert Scaling - Respondents are asked to indicate the amount of agreement or disagreement

(from strongly agree to strongly disagree) on a five-point scale. The same format is used for multiple questions.

• It was developed Rensis Likert. Here the respondents are asked to indicate a degree of agreement and disagreement with each of a series of statement. Each scale item has 5 response categories ranging from strongly agree and strongly disagree.

• Likert Scale for Measuring Attitudes Toward TennisIt is more fun to play a tough, competitive tennis match than to play an easy one.___Strongly Agree ___Agree ___Not Sure ___Disagree ___Strongly DisagreeThere is really no such thing as a tennis stroke that cannot be mastered.___Strongly Agree___Agree ___Not Sure ___Disagree ___Strongly DisagreePlaying tennis is a great way to exercise.___Strongly Agree___Agree ___Not Sure ___Disagree ___Strongly Disagree

• 4. Semantic differential scaling

• Respondents are asked to rate on a 7 point scale an item on various attributes. Each attribute requires a scale with bipolar terminal labels. Bipolar adjectives, such as “good” and “bad”, anchor both ends (and poles) of the scale.

• Begins by determining the concept to be rated. • Then select dichotomous pairs of words or phrases that could be used to describe the concept• Respondents then rate the concept on a scale • Finally, compute the mean of these responses for each pair of adjectives and plotted as a

“profile” or imageService is discourteous 1…2…3…4…5…6…7 Service is courteousLocation is convenient 1…2…3…4…5…6…7 Location is inconvenientHours are inconvenient 1…2…3…4…5…6…7 Hours are convenientLoan interest rates 1…2…3…4…5…6…7 Loan interest rates are high are low

• A weight is assigned to each position on the rating scale. Traditionally, scores are 7, 6, 5, 4, 3, 2, 1, or +3, +2, +1, 0, -1, -2, -3.

• Semantic Differential Scales for Measuring Attitudes Toward TennisExciting ___ : ___ : ___ : ___ : ___ : ___ : ___ : Calm

Interesting ___ : ___ : ___ : ___ : ___ : ___ : ___ : Dull Simple ___ : ___ : ___ : ___ : ___ : ___ : ___ Complex

Passive ___ : ___ : ___ : ___ : ___ : ___ : ___ Active

• 5. Stapel scaling• Stapel scaling - This is a unipolar ten-point rating scale or 6 point rating scale. It ranges from +5

to -5 and has no neutral zero point. • Stapel’s Scale• It was developed by Jan Stapel. This scale has some distinctive features:-• Each item has only one word/phrase indicating the dimension it represents.• Each item has ten response categories.• Each item has an even number of categories.• The response categories have numerical labels but no verbal labels.• For example, in the following items, suppose for quality of ice cream, we ask respondents to

rank from +5 to -5. Select a plus number for words which best describe the ice cream accurately. Select a minus number for words you think do not describe the ice cream quality accurately. Thus, we can select any number from +5,for words we think are very accurate, to -5,for words we think are very inaccurate. This scale is usually presented vertically.

• +5+4+3+2+1High Quality

-1-2-3-4-5

• This is a unipolar rating scale.• Stapel Scale• The Stapel scale is a unipolar rating scale with ten categories numbered from -5 to +5, without a

neutral point (zero). This scale is usually presented vertically.

SEARS

+5 +5+4 +4+3 +3+2 +2X+1 +1

HIGH QUALITY POOR SERVICE-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.

• Stapel Scales• Modern versions of the Stapel scale place a single adjective as a substitute for the semantic

differential when it is difficult to create pairs of bipolar adjectives.• The advantage and disadvantages of a Stapel scale, as well as the results, are very similar to

those for a semantic differential. However, the Stapel scale tends to be easier to conduct and administer.

• A Stapel Scale for Measuring a Store’s ImageDepartment Store Name+3+2+1Wide Selection-1-2-3

• 6. Thurstone ScaleFirst step:

• Generate a large set of candidate statements (e.g., 80 -- 100) statements that describe specific attitudes:

• e.g. statements that describe specific attitudes that people might have towards persons with AIDS.

• The procedure is as follows:• Collect a large number of statements (perhaps as may as several hundred) related to the

attitude in question• Have a number of judges (perhaps 20 or more) sort the statements independently into 11 piles

that vary from the most favorable statement to neutral statements to most unfavorable statements.

• Study the frequency distribution of ratings for each statement and eliminate those statements that the different judges have given widely scattered ratings – that are in a number of different piles

• Determine the scale value of each of the remaining statements – that is, the number of the pile in pile in which the median of the distribution falls

• Select one of the two statements from each of the 11 piles for the final scale. Those statements with the narrowest range of rating are preferred as the most reliable.people get AIDS by engaging in immoral behavioryou can get AIDS from toilet seatsAIDS is the wrath of Godanybody with AIDS is either gay or a junkieAIDS is an epidemic that affects us allpeople with AIDS are badpeople with AIDS are real peopleAIDS is a cure, not a diseaseyou can get AIDS from heterosexual sexpeople with AIDS are like my parentsSecond step

• The next step is to have your participants (i.e., judges) rate each statement on a 1-to-11 scale in terms of how much each statement indicates a favorable attitude towards people with AIDS.

• Mean or median scores are calculated for each item• Select statements evenly spread across the scale.• 7. Paired Comparisons

• Description - Paired comparison scales ask a respondent to pick one of two objects from a set based upon a given criterion

• Example - Which brand do you prefer? ___ Coca-Cola ___ Pepsi ___ Dr. Pepper ___ Pepsi___ Coca-Cola ___ Seven-Up___ Dr. Pepper ___ Seven-Up

• 8. Graphic Rating Scales• A graphic rating scale presents respondents with a graphic continuum.• Graphic Rating Scale Stressing Pictorial Visual Communications

• 9. Monadic Rating Scale• A Monadic Rating Scale asks about a single concept

3 2

1Very

VeryGood

Poor

• Now that you’ve had your automobile for about 1 year, please tell us how satisfied you are with its engine power and pickup.Completely Very Fairly Well Somewhat VerySatisfied Satisfied Satisfied Dissatisfied Dissatisfied

• 10. A Comparative Rating Scale• A Comparative Rating Scale asks respondents to rate a concept by comparing it with a

benchmark • Please indicate how the amount of authority in your present position compares with the

amount of authority that would be ideal for this position.TOO MUCH ABOUT RIGHT TOO LITTLE

• 11. An Unbalanced Scale• An Unbalanced Scale has more responses distributed at one end of the scale • How satisfied are you with the bookstore in the Student Union?

Neither Satisfied Quite VerySatisfied nor Dissatisfied Satisfied Dissatisfied

• Figure 10.4 Balanced and Unbalanced Scales

• 12. Constant sum scaling• The constant sum scale requires the respondent to divide a constant sum, generally 10 or 100,

among two or more objects or attributes on order to reflect the respondent’s relative preference for each object, the importance of the attribute, or the degree to which an object contains each attribute.

• A constant sum measure of the importance of the same attributes could be obtained from the following procedure:

• Divide 100 points among the characteristics listed so that the division will reflect how important each characteristic is to your selection of a new automobile.Price ____Economy ____Dependability ____Safety ____Comfort ____Style ____

Total 100

• 13. Bogardus social distance scaling Measures the degree to which a person is willing to associate with a class or type of people. It asks how willing the respondent is to make various associations. The results are reduced to a single score on a scale. There are also non-comparative versions of this scale.

• 14. Q-Sort scaling Up to 140 items are sorted into groups based a rank-order procedure.

• 15. Guttman scaling • A Guttman scale presents a number of items to which the person is requested to agree or not

agree. This is typically done in a 'Yes/No' dichotomous format. • Questions in a Guttman scale gradually increase in specificity. The intent of the scale is that the

person will agree with all statements up to a point and then will stop agreeing.• The scale may be used to determine how extreme a view is, with successive statements showing

increasingly extremist positions.• If needed, the escalation can be concealed by using intermediate questions.

Surfing the Internet is

____ Extremely Good

____ Very Good

____ Good

____ Bad

____ Very Bad

____ Extremely Bad

Surfing the Internet is

____ Extremely Good

____ Very Good

____ Good

____ Somewhat Good

____ Bad

____ Very Bad

Place a check-mark against all statements` with which you agree 

• Projective Techniques: An unstructured, indirect form of questioning that encourages respondents to project their underlying motivations, beliefs, attitudes or feelings regarding the issues of concern.

• What is a Projective Technique?1. Psychological technique to get answers without asking a direct question2. Participants project their unconscious beliefs into other people or objects3. Reduces threat of personal vulnerability4. Consists of a stimulus and a response• Associations1. Uncovers a brand’s identity or product attributes2. Word association for a product/brand3. Draw brands as people• Construction1. Process allows participant to construct meaning2. Participant constructs a story or picture from a concept3. Collages are developed on a topic4. Bubble drawings or cartoon tests ask participant to construct a dialog• Completion1. For insight into participant’s need-value system.2. Sentences, stories or conversations are completed3. I.e. “When I think of beer…..”• Expressive1. For situations when participants cannot describe their actions but can demonstrate them.2. Participants role play or act out a story3. Themes are developed based on participants’ personal interpretations of pictures4. House where brand lives (Bud vs Guiness)• Choice Ordering1. Useful for rank ordering characteristics associated with a brand, product or service2. Participants lists benefits from most to least important3. Used with probing techniques to gather insight into consumer benefit choices4. In projective techniques, respondents are asked to interpret the behavior of others. 5. In interpreting the behavior of others, respondents indirectly project their own motivations,

beliefs, attitudes, or feelings into the situation. • Projective Techniques:• 1. Free Associationa. Free word associationb. Successive word association• 2. Completion techniquea. Sentence completionb. Story completion• 3. Construction technique:a. Picture response

b. Cartoon techniquec. Personificationd. Fantasy scenarioe. Psycho drawing • 4. Expressive Techniquea. Role playingb. 3rd person technique• a. Free Association:• The word- association techniques asks respondents to give the first word or phrase that comes

to mind after the researcher presents a word or phrase.• i. Free word association: • Ask respondents to say what comes into their head when thinking about a certain topic or word. • Then follow up with probes and amplifications. Initial reactions tend to be pragmatic but later

ones show paths to emotional ideas Useful for relaxing and warming up a group• Word Association• The 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 response; • (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

reasonable period of time. • b. Successive word association: The particular association technique adopted was successive

word association, where the respondent is asked to list all words or thoughts that occur after being exposed to the given cue.

• 2. Completion Techniques• The simplest completion test involves giving respondent incomplete and ambiguous sentences,

which is to be completed with a phrase.• a. 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 Bigbazar is ______________________A person who receives a gift certificate from Raymond's would be _________________

Shoppers stop 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 paragraph beginning with the stimulus phrase.

• Completion Techniques

• b. In story completion, respondents are given part of a story and are asked to complete it – 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.

• 3. Construction Techniques• a. Picture Response: 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.

• b. Cartoon tests: Cartoon tests - pictures of cartoon characters are shown in a specific situation and with dialogue balloons - one of the dialogue balloons is empty and the respondent is asked to fill it in

• c. Personification• A simple and flexible projective technique in which respondents are asked to imagine something

inanimate (often a brand) as if it were a person. • They are asked to describe this person's lifestyle, appearance and so on, and may be asked to

imagine where and how they might live, go on holiday, what kind of work they might do, and so on.

• As with all projective material, this is most useful if fed back into the discussion, respondents being invited to themselves consider what they have 'said' about the brand in this way.

• A common variant of this task is to ask respondents to imagine the brand as an animal, or as a car, or as some other object, and again to explore the parallels they are thus drawing.

• d. Fantasy scenario• Fantasy Role-playing Games require participants to enact individual or team roles, often within a

science-fiction or fantasy scenario.• These role-play activities focus on skills and concepts related to such topics as leadership,

teamwork, and planning. Debriefing after the role-play draws parallels between the fictional fantasy and workplace reality.

• e. Psycho drawing• Example of a projective technique in which participants are asked to draw, in abstract form,

something relevant to the research project. So they might for example draw a specific brand, or

A Cartoon

TestLet’s

see if

we can

pick

up some house

wares at Shoppers

Stop

Figure 5.4

an experience (such as a having a headache). These drawings are usually described and interpreted by respondents themselves as part of the subsequent discussion.

• Uses colours, shapes and symbols to express how they feel about brands (Ralph Lauren)• Can be analysed for symbolism• Can be used as catalysts for probing when respondents are asked to elaborate on what they

were trying to visualise• 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. • a. Role playing: In role playing - respondents are asked to play the role of someone else -

researchers assume that subjects will project their own feelings or behaviors’ into the role • b. Third-person technique: a verbal or visual representation of an individual and his/her

situation is presented to the respondent - the respondent is asked to relate the attitudes or feelings of that person - researchers assume that talking in the third person will minimize the social pressure to give standard or politically correct responses. This third person may be a friend, neighbor, colleague, or a “typical” person.

• Advantages of Projective Techniques1. They may elicit responses that subjects would be unwilling or unable to give if they knew the

purpose of the study. 2. Helpful when the issues to be addressed are personal, sensitive, or subject to strong social

norms. 3. Helpful when underlying motivations, beliefs, and attitudes are operating at a subconscious

level. • Disadvantages of Projective Techniques1. Suffer from many of the disadvantages of unstructured direct techniques, but to a greater

extent. 2. Require highly trained interviewers. 3. Skilled interpreters are also required to analyze the responses. 4. There is a serious risk of interpretation bias. 5. They tend to be expensive. 6. May require respondents to engage in unusual behavior. • Guidelines for Using Projective Techniques1. Projective techniques should be used because the required information cannot be accurately

obtained by direct methods.2. Projective techniques should be used for exploratory research to gain initial insights and

understanding.3. Given their complexity, projective techniques should not be used naively.

Step: Five: Research Design/ Sampling• A research design is a framework or blueprint for conducting the marketing research project. • It details the procedures necessary for obtaining the information needed to structure and/or

solve marketing research problems. • Research design means to prepare detailed plan and procedures for the conduct of the research

project.

• It is like preparing a master plan/blue print for the conduct of formal investigation. • It is the basic plan that guides researcher in the execution of the research project undertaken. • It is like road map which enables the researcher to conduct various activities for the completion

of research project.• In short, research design is a systematic planning, organizing and executing a research project

within specified time limit and resource allocation.• Research design tells the type of data to be collected, the sources of data and the procedures to

be followed in data collection.• Research design provides suitable framework that guides the collection and analysis of data.• Definitions of Research Design:

1. According to David J Luck and Ronald S Rubin, “A research design is the determination and statement of the general research approach or strategy adopted for the particular project. It is the heart of planning. If the design adheres to the research objective, it will ensure that the client’s needs will be served.2.According to Kerlinger, “ Research in the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance.3.According to Green and Tull, “ A research design is the specification of methods and procedures for acquiring the information needed. It is the over-all operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedures.

• Importance/utility of research designResearch design is important as it prepares proper framework within which the research work/activity will be actually carried out. Research design acts as a blue print for the conduct of the whole.

• Types of Research design:• On the basis of information to be collected, research designs can be classified into the following

three categories:• a) Exploratory research• b) Descriptive research• c) Casual research• Exploratory Research design:

1. It is used when the researcher wants to know general trend and acquire qualitative information. 2. When only psychographic profile is needed. 3. New launch for the first time. 4. Multinational entering the country for the first time. 5. New concept/new idea been introduced for the first time.

• Descriptive research design: 1. It used when researcher requires demographic profile of the respondent. Here we require

numbers, statistics, and quantitative data.

2. Brand extension3. Marketing expansion within the country.4. Pricing research, product research, branding research.

• Causal research design: 1. Is used when researcher want to know the cause and effect relationship between various

variables. Here impact is studied.2. Backward and forward integration3. Diversification4. Any kind of image studies, effect studies and backward studies.

• Exploratory research:• It provides insights into, and an understanding of, the problem confronting the researcher• OBJECTIVE :• Exploratory research is to explore or search through a problem or situation to provide insights

and understanding• EXPLORATORY RESEARCH DESIGN• Main purpose is identification of problems, more precise formulation of problems, identifying

the relevant variable and the formulation of new alternative courses of action.• Main objective of exploratory RD is to find tune the broad problem into specific problem

statement and generate possible hypotheses.• Used for following purposes:1. Formulate a problem or define a problem more precisely.2. Identify alternative courses of action.3. Develop hypotheses.4. Isolate key variables and relationships for further examination.5. Gain insights for developing an approach to the problem.6. Establish priorities for further research• Methods used in Exploratory Research:• a. Key-Informant Technique• Conducting exploratory research by interviewing knowledgeable individuals is sometimes called

the key-informant technique. • It is also known as an expert-opinion survey or a lead-user survey.• An effective way to do exploratory research is to seek out and talk to individuals with expertise

in areas related to the situation being investigated.• The technique is necessarily a very subjective and flexible procedure with no standard approach.• b. Focus Group Interviews• In a focus group interview, an objective discussion leader introduces a topic to a group of

respondents and directs their discussion of that topic in a nonstructured and natural fashion. This is sometimes simply called a focus group.

• c. Analysis of Secondary Data• Examining appropriate secondary data is a fast and inexpensive way of conducting exploratory

research that can generate valuable insights.

• Such insights, in turn, will provide a proper focus for conclusive research. Sometimes the insights revealed by secondary-data analysis may even eliminate the need for conclusive research.

• d. Case Study Method• The case study method is an in-depth examination of a unit of interest. The unit can be a

customer, store, salesperson, firm, market area, website, and so on. • By virtue of its insight-generating potential, the case study method is a useful form of

exploratory research. This method is suitable in a research setting in which the company has a general research objective but is unsure of exactly what it is looking for.

• It involves collecting in-depth data on a variety of important dimensions or factors for the unit of interest. Only the investigator’s time and imagination limit the number and types of factors to be examined.

• e. Observational Method• The observational method involves human or mechanical observation of what people actually

do or what events take place during a buying or consumption situation. • In this method of data collection, researchers or mechanical/electronic devices witness and

record information as events occur or compile evidence from past events. • It is useful to assess behavior such as use of products, frequency of store visits, teens shopping

with and without supervision, use of media, and time spent on specific websites. • It is particularly useful in researching young children, a group that is typically not amenable to

many research techniques.

• Descriptive research:• Descriptive research is undertaken when the researcher desires to know the characteristics of

certain groups such as age, sex, occupation, income or education. The objective of descriptive research is to answer the “who, what, when, where and how” of the subject understudy/investigation.

• Descriptive research is normally factual and simple.• However, such studies can be complex, demanding scientific skill on the part of researcher.• Descriptive studies are well structured. It tends to be rigid and its approach cannot be changed

often and again.• In Descriptive research, the researcher has to give adequate thought to framing research

questions and deciding the data to be collected and the procedures to be used for this purpose. • Data collected may prove to be inadequate if the researcher is not careful in the initial stages of

data collection.• Descriptive research is designed to describe the present situation or the features of a group or

users of a product.• In marketing, such research is undertaken to know the characteristics of certain groups or users

of a product such as age, sex education, income etc. Such research studies are based on secondary data or survey research.

• Descriptive Research is to describe market characteristics or functions• Descriptive research is conducted for the following reasons:

1. Describing the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas. 2. Estimating the percentage of units in a specified population exhibiting a certain behavior. 3. Determining the perceptions of product characteristics. 4. Determining the degree to which marketing variables are associated. 5. Making specific predictions.

• Descriptive Design requires clear specifications of :1. Who—Who should be considered a patron of a particular department store? 2. What—What information should be obtained from the respondents? 3. When—When should the information be obtained from the respondents? 4. Where—Where should the respondents be contacted to obtain the required information? 5. Why—Why are we obtaining information from the respondents? Why is the marketing

research project being conducted? 6. Way—In what way are we going to obtain information from the respondents?

• Uses of Descriptive research:• 1.Useful to collect demographic information of consumers/users of a product or issue• 2. Used/applied directly for marketing decision making.• 3. Useful for finding out views and attitudes of customers or target group.• 4. Can be used to make predictions about future marketing or social trends.• 5. Discovers the relationship between certain variables.

• Conducting Descriptive Research• Descriptive research is by far the more frequently used form of conclusive research. Descriptive

research studies are classified into two basic types: cross-sectional studies and longitudinal studies.

• A. Cross-Sectional Studies• Cross-sectional studies are one-time studies involving data collection at a single period in time.• They provide a “snapshot” of a situation being researched. • Cross-sectional studies can also be used to obtain data pertaining to different periods in time.• A cross-sectional study makes use of a cross-sectional sample or a group of units (e.g.,

consumers, stores, organizations) selected specifically and solely for the one-time data collection.

• The sample is disbanded after the data are collected.• Several firms maintain omnibus panels as a source of samples for cross-sectional studies. Such

samples are composed of panel members who are returned to the panel after participating in a cross-sectional study.

• Within the domain of descriptive research the cross-sectional study is the most popular method. • Cross-sectional studies account for the majority of formal research projects involving primary-

data collection.• B. Longitudinal Studies

• Longitudinal studies are repeated-measurement studies that collect data over several periods in time.

• The primary purpose of longitudinal studies is to monitor changes over time.• A longitudinal study produces a “motion picture” (or a series of snapshots) of a situation over

time. • In general, longitudinal studies are more informative than cross-sectional studies, just as motion

pictures are more revealing than still pictures. • Longitudinal studies are also more expensive than cross-sectional studies.• C. True Panel Studies• A longitudinal study using the same sample of respondents will provide richer information than

one using a series of different samples. • The dynamics of changes between measurements can be captured only by using the same panel

of respondents. • Such a panel has been labeled a true panel to distinguish it from omnibus panels used to

generate different cross-sectional samples at various periods in time• A true-panel study, compared with a longitudinal study using different samples for the various

measurements, is also capable of generating more data directly pertaining to the research purpose, for the following reasons:

• A true panel is a captive sample of willing respondents who are likely to tolerate extended interviews or fill out lengthy questionnaires.

• Background data such as demographic and lifestyle data need not be collected from panel respondents during each measurement. Therefore, for a given interview or questionnaire length, more data of primary research interest can be collected.

• Cross-sectional and Longitudinal research• Descriptive research can be divided into the following two categories:

a) Cross-sectionalb) Longitudinal

• It is a study involving a sample of elements from the population of interest at a single point of time.

• It is a study concerned with a sample of elements from a given population. Such sample may deal with households, dealers, retail stores and other entities.

• Information / data on a number of characteristics are collected from the sample elements. • Such data are analyzed for drawing conclusions. • Cross-sectional research studies include field studies and surveys.• Longitudinal studies:• Longitudinal studies are based on panel methods and panel data. • A panel is a sample is a sample of respondents who are interviewed not only once but thereafter

from time to time. • Here data to be collected relate to same variable but the measurements are taken repeatedly.• eg. TRP• Casual Research/Design• Casual Research design is the third type of research design.

• As the name indicates, casual design investigates the cause and effect relationship between two or more variables.

• This design measures the extent of relationship between the variables. • Casual Research designs attempt to specify the nature of functional relationship between two or

more variables.• Casual Research is useful to show the impact of one variable on the other. for example price and

market demand relationship or relationship between market competition and sales performance.

• Data for Casual Research can be collected through field survey with the help of a questionnaire or by conducting laboratory experiments/controlled experiments.

• Casual Research design is based on reasoning. The designs for Casual Research can be divided into three categories: a) Historical, (b) Survey and (c) Experimental.

• Sampling Designs And Sampling Procedures • Sample : Subset of a larger population• Population : Any Complete Group

- People- Sales Territories- Stores

• Census: Investigation of all individual elements that make up a population.

• Target Population• The population is defined in terms of:

a. element,b. units, c. extent andd. time. E.g.: Comic Book Reader?

• Sampling frame

Define the target population

Select a sampling frame

Conduct fieldwork

Determine if a probability or nonprobability sampling method will be chosen

Plan procedure for selecting sampling units

Determine sample size

Select actual sampling units

Stages in the Selectionof a Sample

• A sampling frame is a means of representing the elements of the population. • A sampling frame may be a telephone book, city directory, an employee roster, a listing of all

students attending a university, or a list of possible phone numbers. • Maps also serve frequently as sampling frames. • A sample of areas within a city may be taken and another sample of household then be taken

within each area. • City blocks are sometimes sampled and all households on each sample block are included.• A perfect sampling frame is one in which every element of the population is represented once

but only once. • One does not need a sampling frame to take a non-probability sample.• e.g. Sampling Frame• A list of elements from which the sample may be drawn• For example telephone book, map, or city directory –. • Mailing Lists - Data Base Marketers• Sampling Units• The sampling unit is the basic unit containing the elements of the population to be sampled. It

may be the element itself or a unit in which the element is contained.• For example, if one wanted a sample of males over 13 years of age, it might be possible to

sample them directly. In this case, the sampling unit would be identical with the element. • However, it might be easier to select households as the sampling unit and interview all males

over 13 years of age in each household. • Here the sampling unit and the population element are not the same.• The unit for sampling – for example, city block, company, or household – is selected. The

sampling unit may contain one or several population elements. Group selected for the sample:• Two Major Categories of Sampling

1. Probability Sampling: Known, nonzero probability for every element2. Nonprobability Sampling: Probability of selecting any particular member is unknown

• Non-probability sampling: A non-probability sampling technique that attempts to obtain a sample of convenient elements. The selection of sampling units is left primarily to the interviewer.

• Explanation:• This type of sampling is normally used to get basic information to take elementary decisions.• Convenience samples are often used in exploratory situations when there is a need to get only

an approximation of the actual value quickly and inexpensively.• Commonly used Convenience samples are associates and “the man on the street”. Such samples

are often used in the pre-test phase of the study, such as pre-testing of a questionnaire.• Examples:• Use of students, religious groups, and members of social organizations, • Mall-intercept interviews without qualifying the respondents,• Department stores using charge account lists• Tear out questionnaire included in a magazines, and• People on the street interviews• Non-probability sampling techniques:• It relies on the personal judgment of the researcher rather than t he chance to select sample

elements. • The researcher can arbitrarily or consciously decide which element to include in the sample. • Non-probability may yield good estimates of the population characteristic. • However they do not allow for objective evaluation of the precision of the sample results.

• Nonprobability Sampling:1. Convenience2. Judgment3. Quota4. Snowball

• Convenience Sampling• Also called haphazard or accidental sampling• The sampling procedure of obtaining the people or units that are most conveniently available• Judgment Sampling• Also called purposive sampling • An experienced individual selects the sample based on his or her judgment about some

appropriate characteristics required of the sample member• Quota Sampling• Ensures that the various subgroups in a population are represented on pertinent sample

characteristics• To the exact extent that the investigators desire• It should not be confused with stratified sampling.• Snowball Sampling• A variety of procedures • Initial respondents are selected by probability methods • Additional respondents are obtained from information provided by the initial respondents• Since there is no way of determining the probability of selecting any particular element for

inclusion in the sample, the estimates obtained are not statistically projectable to the population.

• Probability sampling techniques:• Sampling units are selected by chance. • It is possible to pre-specify every potential sample of a given size that could be drawn from the

population, as well as the probability of selecting each sample. • Probability sampling• Probability sampling techniques vary in terms of sampling efficiency.• Sampling efficiency is a concept that reflects a trade-offs between sampling cost and precision. • Precision refers to the level of uncertainty about the characteristic being measured. The greater

the precision, the greater the cost and most studies require trade-off.• Every potential sample need not have the same probability of selection, but it is possible to

specify the probability of selecting any particular sample of a given size. • This requires not only a precise definition of the target population, but also a general

specification of the sampling frame. Because sample elements are selected by chance.• It is possible to determine the precision of the sample estimated of the characteristics of

interest.• Confidence intervals, which contain the true population value with a given level of certainty,

can be calculated. • This permits the researcher to make inferences of projections about the target population from

which the sample was drawn. • Probability Sampling

1. Simple Random Sample2. Systematic Sample3. Stratified Sample4. Cluster Sample

5. Multistage Area Sample• What sampling method to use in the case study:• Nonprobability: It is used with exploratory research design.• Probability: It is used with descriptive and causal research design.• 1.Simple Random Sampling: A sampling procedure that ensures that each element in the

population will have an equal chance of being included in the sample.• Simple random sampling (SRS):• A probability sampling technique in which each element in the population has a known and

equal probability of selection is known as simple random sampling (SRS).• Every element is selected independently of every other element and the sample is drawn by a

random procedure from a sampling frame. • 2.Systematic sampling : A probability sampling technique in which the sample is chosen by

selecting a random starting point and then picking every nth element in succession from the sampling frame.

• Explanation• In systematic sampling, the sample is chosen by selecting a random starting point and then

picking every nth element in succession from the sampling frame.• The sampling interval, n, is determined by dividing the population size N by the sample size n

and rounding to the nearest integer.

• Example• Suppose there are 100,000 elements in the population and a sample of 1000 desired. In this

case the sampling interval, n, is 100. A random number between 1 to 100 is selected. If say number 23 is selected, the sample will then consists of elements 23, 123, 223, 323, 423, 523, and so on.

• Systematic Sampling• A simple process• Every nth name from the list will be drawn• 3. Stratified Random Sampling: Definition: A probability sampling technique that uses a two-

step process to partition the population into subpopulations, or strata is known as stratified random sampling. Elements are selected from each stratum by a random procedure.

• Stratified Random Sampling emerges from the word Stratum.• A Stratum in a population is a segment of that population having one or more characteristics.

E.g. people in the age strata of 35-40, people in the income strata to Rs. 20000 p.m. etc• Stratified Sampling involves treating each stratum as a separate subpopulation for sampling

purposes, and from each stratum sampling units would be drawn randomly.• The reasons for conducting Stratified Random Sampling are:• To reduce sampling error by ensuring representation from the population.• The required sample size for the same level of sampling error will usually be smaller.• As compared to other methods of sampling, in Stratified Random Sampling representativeness

to a certain degree is forced. • The greater degree to which there is similarity within stratum, smaller is the sample size

required to provide information about that stratum. • Thus the more homogeneous each stratum is with respect to the variable of interest the smaller

is the sample required.• Example: If the head of the household age strata (18-34, 35-49, 50+) are of interest in a study

on household spending habits on household furnishings, then each of these groups would be

taken separately for sampling purposes. That is, the total population could be divided into age groups and a separate sample is drawn from each group.

• Stratified Sampling• Probability sample• Subsamples are drawn within different strata• Each stratum is more or less equal on some characteristic• Do not confuse with quota sample• Total Voters: 10,000 Total Voters: 10,000• Sample size: 1000 Sample size: 1000• % of Muslim 15------- % of Muslim 15-------150• % of Hindus 55------ % of Hindus 55------550• % of Jains 07----- % of Jains 07----- 70• % of Sikhs 02------ % of Sikhs 02------20• % of SC/ST 21----- % of SC/ST 21-----210• Total 100---- Total 100----1000• 4. Cluster Sampling: Definition: The target population is divided into mutually exclusive and

collectively exhaustive subpopulation called clusters.• Then a random sample of clusters is selected based on probability sampling techniques such as

simple random sampling.

• Explanation• If all the elements in each selected cluster are included in the sample, the procedure is called

one stage cluster sampling. • If a sample of elements is drawn probabilistically from each selected cluster, the procedure is

called two-stage cluster sampling.• The key distinction between cluster sampling and stratified sampling is that in cluster sampling

only a sample of subpopulations (clusters) is chosen, whereas in stratified sampling all the subpopulations are selected.

• The objective of the cluster sampling is to increase the sampling efficiency by decreasing costs.• Example: If the study requires studying the households in the city then in cluster sampling the

whole city is divided into Blocks and to take each household on each block selected. Thus to get a representative whole of the universe.

• Cluster Sampling• The purpose of cluster sampling is to sample economically while retaining the characteristics of

a probability sample. E.g. Test Marketing• The primary sampling unit is no longer the individual element in the population • The primary sampling unit is a larger cluster of elements located in proximity to one another • Examples of Clusters

• Single Stage V/s Multistage Sampling• Explanation: The number of stages involved in the sampling method is partially a function of the

number of sampling frame available. • If a perfect frame were always available complete with all the associated information one might

want for purposes of clustering and / or stratifying, there would be far fewer multiple samples taken than there are now.

• In practice, it is not uncommon to have a first stage area sample of, say, census tracts, followed by a second stage sample of blocks, and completed with a systematic sample of households within each block.

• These stages would not be necessary if a complete listing of households were available.Step: Six: Data Processing and Analysis

• DATA PROCESSING : Data processing’s total task in carrying out the analytical program is to convert crude fragments of observation and responses into orderly statistics for interpretation.

• There are three stages necessary in either manual or computer processing: a. editingb. classifying and c. coding.

• An additional stage with computers is card punching.

• DATA ANALYSIS • After the data have been collected, the researcher turns to the task of analyzing them.

Population Element Possible Clusters in India

Indian adult population StatesdistrictsMetropolitan Statistical AreaCensus tractsBlocksHouseholds

Population Element Possible Clusters in the United StatesCollege seniors CollegesManufacturing firms Districts

Metropolitan Statistical AreasLocalitiesPlants

Population Element Possible Clusters in the United StatesAirline travelers Airports

Planes

Sports fans Football stadiumsBasketball arenasBaseball parks

• The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, tabulation and then drawing statistical inferences.

• The unwieldy data should necessarily be condensed into as few manageable groups and tables for further analysis.

• Thus, researcher should classify the raw data into some purposeful and usable categories. • Analysis work after tabulation is generally based on the computation of various percentages,

coefficients etc., by applying various well-defined statistical formulae. Step: Seven: Determine Time and cost

• Basic Questions - Overall Evaluation1. How much will the study cost?2. Is the time frame acceptable?3. Is outside help needed?4. Will this research design attain the stated research objectives?5. When should the research be scheduled to begin?

Step: Eight: Define the ethics of research• Ethics: Moral principles or values generally governing the conduct of an individual or group.• Research Ethics : Guidelines researchers follow to protect the rights of humans who participate

in studies. Some common guidelines include:1. Protection from harm2. Informed consent3. Confidentiality4. Knowledge of results5. Deception, if used, must be explained fully • Abuse of respondents1. Most common problem: lengthy interviews2. Refusal rate now averages 60 percent. 3. Selling unnecessary research4. Violating client confidentiality• Client Ethics1. Requesting when a supplier has been predetermined2. Obtaining free advice and methodology via bid requests3. Making false promises4. Unauthorized request for proposals

Step: Nine: Prepare the research report• RESEARCH REPORT• Finally, the researcher has to prepare the report of what has been done by him. Writing of

report must done with great care keeping in view the following: • The layout of the report should be as follows: • FORMAT OF RESEARCH REPORTS1. Title Page 2. Acknowledgments (if any)3. Introduction

a. Statement of the Problem b. Significance of the Problem (and historical background) c. Purpose d. Statement of Hypothesis

4. Review of Related Literature (and analysis of previous research)

5. Description of Research Design and Procedures Used 6. Sources of Data & Methods and Instruments of Data Gathering7. Sampling Procedures 8. Analysis of Data 9. Summary and Conclusions 10. Major Findings (reject or fail to reject Ho) 11. Conclusions 12. Recommendations for Further Investigation 13. Reference Section 14. End Notes (if in that format of citation) 15. Bibliography or Literature Cited 16. Appendix

Marketing and advertising research• 1.Product Research• Product has utility (need satisfying capacity) and is useful for the satisfaction of human wants.• In brief product is a set of tangible and intangible attributes that facilitates consumer

satisfaction. • Definition of Product Research: marketing research that yields information about desired

characteristics of the product or service • NEED OF PRODUCT RESEARCH:1. Product research acts as an insurance against risk of obsolescence of existing products of the

company.2. In addition, product research is needed in order to develop new products which will have good

demand over a long period. • In short, the following points suggest/justify the need of product research:• (1) To assist in the setting up of objectives towards which the research and development

department will have to work in order to develop and introduce new features in the market.• (2) To pinpoint the needs and wants of consumers which the new features are expected to

satisfy.• (3) To estimate the sales potential of the new features• (4) To verify the benefits of the new features to the consumers.• WHEN PRODUCT RESEARCH IS NECESSARY?• (1) Introduction of new product /modifications in the existing product: Product research is

necessary when company develops a new-product or desires to introduce an existing product with suitable modifications as per the requirements of consumers.

• (2) Introduction of new product by competitor: Product research is necessary when a competitor introduces a new product or improved version of the existing one in the market.

• METHODS OF CONDUCTING PRODUCT RESEARCH:There are three methods used for the conduct of product research as explained below: (1) Staggered Comparison Test:

• In the staggered comparison test, the respondent is first given one product and is asked to give his opinion about the same. Later on, he is asked to try a second product and give his opinion on that product.

• This test is very natural in character as in actual life also a consumer uses one product and forms his opinion.

• Thereafter, he may shift to another product if he is not satisfied with the first one. However, he will certainly not like to use two identical products at one and the same time.

• Staggered comparison test is useful for knowing the views of respondents accurately. However, this method is rather costly.

• Secondly, consumers’ views may be bias as they may not be fully away from the influence of the product used previously. (2) Paired Comparison Test:

• In the paired comparison test, consumers are offered two products for giving their opinion. • The products are outwardly identical but they differ in some way or ways which ordinary

consumers cannot readily identify.• This test is useful for judging the attitudes of consumers. • Such test is also useful for brand reference studies, pre-testing of advertisements and multi-

dimensional scaling. • Paired comparison test can be used to compare an experimental product with an existing

product or for evaluating several existing products with slight differences.• Here, two different products are compared by the consumer.• If more than two products are to be evaluated, the products are paired off for the purpose of

study. • Paired comparison method of product testing has certain limitations. • Here, the respondent participating in a test may behave differently from the way he normally

would.• If these tests are repeated in order to verify results, it becomes visible that there is considerable

instability among the respondents. • However, this test is useful in identifying those individualswho have no real preference for any

of the products actually tested(3) Non-directive Method (Test)

• In the non-directive method, information is collected from the respondents without giving them any idea before hand as regards the research work undertaken.

• For example, a housewife is given a pair of identically wrapped products and is asked to use them.

• She is given no reason to believe that the products are different. • In addition, she is also not given any idea that she will be interviewed subsequently. In brief, an

impression should be created in her mind that free samples are provided to her for use. • In due course i.e. after about two week’s duration, the respondent (housewife) is called on again

and asked whether she has used both the products.• In case of actual use of the products, a brief interview is taken which will give adequate

information about product differences. • Direct questions may be asked to the respondent to collect adequate information, if she fails to

give information in the conversation. • This method is better than the previous two methods as it represents real market situation. The

information supplied can be used effectively for drawing certain conclusions.• 2. Pricing Research• Pricing research involves: Pricing strategy assessment supported by strong pricing research

capabilities. • Sound pricing market research requires a broad strategic perspective together with a focus on

pricing decision options.• NINE PRICE QUALITY STRATEGIES

• Pricing research finds optimum price-product-feature configurations in the context of market positioning opportunities.

• Pricing studies employ both qualitative research and quantitative research tools.• Pricing research usually concentrates on customers' sensitivity to pricing.• This price sensitivity is driven by the nature of the market, the target within that market, the

differentiation level of product or service, and the value of brand.• There are four main approaches:

Several different research methods are commonly used in pricing research—each with their own strengths and weaknesses. There are four techniques that are commonly used the four techniques are:

1. Gabor-Granger or Van Westendorp Price Sensitivity Meter2. Concept Test3. Conjoint Analysis4. Discrete Choice Modeling• 1. Gabor-Granger or Van Westendorp Price Sensitivity Meter (PSM)

P R I C E

High Medium Low

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gh

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iu

m

Low

QUALITY

1.Premium

Strategy

2.High-value Strategy

3.Super-value Strategy

4.Overcharging

Strategy

5.Medium-value Strategy

6.Good-value Strategy

7.Rip-off Strategy

8.False economy Strategy

9.Economy Strategy

( Contd.. )

• The Price Sensitivity Meter (PSM) is used fervently by some researchers. The premise of the PSM is to ask respondents four price-related questions and then evaluate the cumulative distributions for each question.

• Specifically, respondents are asked:1. At what price would you consider the product to be so expensive that you would not consider buying it? (Too expensive)2. At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good? (Too cheap)3. At what price would you consider the product starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it? (Expensive)4. At what price would you consider the product to be a bargain—a great buy for the money? (Cheap)

• In this method, the optimal price point for a product is the point at which the same number of respondents indicate that the price is too expensive as those who indicate that the price is too cheap. Many pricing researchers question that this is the definitive optimal price for a product

• 2.Concept Test/Concept Evaluation• The standard purchase intent question from a concept test is also commonly used for pricing

research. • Respondents are presented with a product concept and asked how likely they would be to

purchase this product at a specific price. • Typically the researcher will expose independent samples of respondents to different prices. The

standard purchase intent question is shown below.• After introducing the product concept) • How likely, would you be to purchase this product in the next 12 months if it costs Rs 9000? 1. Definitely would purchase2. Probably would purchase3. Might or might not purchase4. Probably would not purchase5. Definitely would not purchase• To evaluate price sensitivity using this example, a sample of respondents evaluates this concept

at Rs 9000, a different sample of respondents evaluates the same concept at Rs5000, and another sample of respondents evaluates the concept at Rs 14000.

• A demand curve is constructed by evaluating purchase intent at each price• 3. Conjoint analysis:• Like concept tests, conjoint analysis presents concepts to respondents. However, instead of

exposing each respondent to a single concept, in conjoint analysis each respondent is exposed to many concepts.

• For each treatment, respondents are asked to make hypothetical trade-offs between configured products. For example, a respondent might be asked to express his preference between two VCR alternatives, as follows:

• In conjoint analysis, respondents are forced to make trade-offs between products and product features, much as buyers are forced to do when actually shopping.

• Each respondent answers a series of trade-off questions; in each question the combination of features shown together changes. In this way, a large number of product features can be evaluated.

• Each respondent provides enough information through his or her trade-offs that the utility of each product characteristic (including price) can be estimated for each respondent.

• This individual-level estimation allows for the identification of individual differences that can lead to a market segmentation scheme and can be used to help predict acceptance of products by different individuals in a heterogeneous market.

• These utilities also allow prediction of preference for any product that can be defined using the product characteristics in the study.

• These preferences can be modeled in a market simulator. A market simulator allows “what-if” analysis for any configuration of products in any competitive environment. A demand curve can be produced from these simulations.

• 4.Discrete Choice• Discrete choice modeling, referred to by some as choice-based conjoint, enjoys many of the

benefits of conjoint analysis (e.g., competitive products, ability to include a large number of features, simulation capability), but it also includes a more realistic respondent task. In discrete choice, the respondent is presented with a set of products and the respondent is asked to pick one, as illustrated below

• The results from discrete choice modeling are very similar to those from conjoint. For instance, both approaches are able to produce utilities at the individual level, and both discrete choice

and conjoint allow what-if simulations. Discrete choice modeling has been used with great success in pricing research

• 3. PACKAGING RESEARCH• MEANING OF PACKAGING RESEARCH• Packaging research deals with the needs and expectations of consumers about the package

(size, shape, color combination, durability, material used, etc.) used. • Packaging research is useful for making product packages secured, attractive and agreeable to

consumers. • WHY PACKAGING RESEARCH UNDERTAKEN?• Packaging research is undertaken in order to find out reasonably correct and reliable answers to

the following packaging problems/issues:1. Understand how consumers shop the product category and what role packaging plays in

purchase decisions2. Understand brand and product perceptions and how deeply rooted they are3. Identify unmet needs4. Understand how the new packaging departs from consumers’ expectations and what visual

elements can be used to preserve brand identity5. Assess how the new packaging will stand out in a cluttered environment among competitor

brands6. Test different packaging concepts and evaluate the effectiveness of graphic elements and label

information in adding uniqueness and encouraging purchase intent• Following are the packaging research methods:1. Package Screen2. Package Check3. Package Test4. Custom/Ad Hoc Packaging Research5. Shelf impact6. Simulated Display • 1. Package Screen• Early-Stage Package Design• The package design process typically begins with the creation of a large number of “rough” or

early-stage designs. • Ten to twenty package designs, or more, are common at this beginning stage. • The research objective is to identify the package designs that resonate with consumers, so that

creative efforts can be focused on further development of the better designs.• How Does Package Screen Work?• A representative sample of 200 to 300 target audience consumers are recruited from a panel. • These participants are invited to come to a location and view the early-stage package designs. • Each respondent sees all of the package designs one at a time (front panel only) on his/her

computer monitor, in randomized order. • Then, each person views the package designs a second time and answers four questions about

each design. • The answers to these four questions are fed into a mathematical model to calculate an overall

score for each design.• The highest-rated designs are recommended for further development.• 2. Package Check Diagnostic Feedback• The next step in the design process is to learn more about the better designs so that further

improvements can be made.

• Package Check is, designed to provide this diagnostic feedback. • How Does Package Check Work?• A representative sample of target-audience consumers are recruited to as a panel and view each

package design.• The respondents see only one package design (i.e., a monadic test) and then answer a series of

questions about their reactions, including a series of open-ended questions. • The verbatim detail is valuable to creative teams as they strive to improve the graphic design, as

well as the copy, on the package. • A typical Package Check study is based on 75 completed interviews • 3. Package Test• Finished Or Near-Finished Package Designs • As packages near the end of the design process, a more complete evaluation is required, with

comprehensive measurements to assess all of the important elements of package design.• Package Test is comprehensive, testing system to evaluate finished (or near-finished) package

designs. • A representative sample of qualified respondents is invited to evaluate the package design.• Respondents first see the package’s front panel, and later view the other panels. The research

design is monadic. • A mathematical model, based on a number of key variables, calculates an overall score for the

package design and compares it to action standards.• A typical Package Test project is based on 150 completes. • 4. Custom/Ad Hoc Packaging Research• Package Communication

What is the package communicating? What is the package failing to communicate? • Depth interviews are typically used to explore package communication issues. Usually, the test

package is shown at different time exposures (1/500 of a second, 1/200 of a second, etc.) using a tachistoscope.

• At each exposure level, package recognition and communication are examined. • Then the respondents are asked to examine and to read the package in detail, with no time

limits.• The consumer’s reactions to every detail of package graphics and copy are explored in the

interview. • The purpose of this research is to learn how to improve brand recognition and package

communication.• 5. Shelf Impact• Does the average consumer notice the package on the shelf? • To evaluate shelf impact, we typically build representative displays of the test package in a

competitive environment. • These displays are photographed from angles representative of the consumer’s perspective. • The test package is rotated within the display.• The best photographs (with correct rotations) are shown to a representative sample of

consumers, at various time exposures (1/200 of a second, 1/100 of a second, and so on) with a tachistoscope.

• The respondents are questioned about what they see and what they understand, as the length-of-time exposure increases.

• This methodology helps determine the visibility (or attention value) of a test package, relative to competitive packages.

• 6. Simulated Display

• The ultimate test of a package is whether it stimulates trial of a product. • To measure a package’s trial potential, a representative display of a product category (with all

major competitive brands) is assembled. Matched samples of consumers are instructed to “shop” the display.

• Their brand decisions, and the reason for those decisions, are explored in post-shopping interviews.

• Simulated display allows us to measure a package’s trial potential and helps us learn how to improve its trial potential.

• 4. BRAND RESEARCH• MEANING OF BRANDING AND TRADE MARK: Branding means naming a product. Packaging and

branding go together as brand is generally put on the package itself. • What is Branding Research? • Branding Research answers "How do people perceive your product, service, company or

personality?" • Different people and cultures have different perceptions of things, colors, words and ideas.

When different languages join in, confusion is guaranteed. • Research Methodology• Branding Research first determines attributes and benefits for a product in a specific target

market. • This information is obtained through qualitative research such as primary interviews or

ethnographic research. • The perception of each of these attributes is then tested quantitatively. • Why Brand Research?• Brands exist in a business world which is constantly changing. • Nothing stands still and to just leave a brand without planning its future is a recipe for eventual

decline. • Consider the broad strategies which can be applied in planning any brand:• a. Strengthen or build the brand. 1. This will lead in turn to higher sales of the products under the brand umbrella and hopefully

higher profits - either through maintaining current margins or improving them and the latter can be very much tied up with brand strength - a strong brand can command a premium price for one thing.

• b. Protecting a brand. 1. Building a brand can be thought of as dynamic or attacking strategy but the defense of a brand

cannot be ignored.2. Virtually all brands exist in a competitive market and must fight to at least hold their position

against competitors. 3. The need for this will be on-going.• c. Extending a brand.1. If a brand is an umbrella over the product range, there is the option of bringing in other

products to market under the established name. In other words brand extension. 2. There are many successful examples of this strategy but it can be high risk. Get it wrong and not

only may the extensions falter but the whole brand may be de-valued.• Brand research

Brand research is not just Focus Groups or Attitude and Awareness. It’s an integrated marketing research program which addresses:

1. Attribute2. Ownership

3. Attitude and Awareness • Various elements of the brand can be measured depending on what has to be decided. Some

common measures include:• a. Awareness: How well known is the brand? Both in the sense of the proportion of the target

audience aware of the name and those having some depth of knowledge about it and the products marketed under the brand.

• b. The relative importance of the brand values: If a brand is a bundle of attributes or values how important is each; either relative to each other or to the comparable values of competing brands?

• c. Changing brand values: Brands, or at least successful brands have a long life but their values may change. Another type of measure for strategic planning is, therefore, plotting changes in a brand's values over time.

• d. Brand strengths and weaknesses: Perceptions of a brand can be either positive or negative and qualitative research can identify both sorts of values. In successful brands the positive values clearly outweigh the negative but even the best of brands may have some downside.

• The need is to quantify values on some sort of evaluative scale.• Branding Research can be done at every stage of Brand building process, the various methods

related to Brands research are:• Various methods of Brands research are:

1. Brand Character Research2. Brand Logo Research3. Brand Name Research:4. Latent Association5. Brand Association Research6. Customer Satisfaction & Brand Loyalty Research7. Brand Health research8. Brand awareness Research

• 1. Brand Character Research:• The main premise of Brand Character is that advertising must not only communicate what the

brand is or what it does, but must also communicate a sense of who the brand is, how it looks and feels, and what its role is in the consumer's life.

• Exploring these new dimensions of a product and communicating them through advertising helps to distinguish it from other products, just like an individual's personality distinguishes that person from any other

• To create a Brand Character, an extra bit of insight is needed about a brand and its target consumer to go beyond the expectations of simple positioning to convey a strong sense of what the brand means.

• While every brand potentially has a Brand Character, some brands have been more successful in establishing and owning one than others.

• 2. Brand Logo Research:• When a new logo is to be chosen it is always advisable to evaluate it among two independent

sets of people one to evaluate the logo in isolation and the other to evaluate the logo on the pack.

• Evaluation of logo in isolation looks at its likeability, distinctiveness, comprehension of message conveyed, by logo options, preference among logo options, and preference of logo among key competition.

• Evaluation of logo on the pack also looks at the same alternatives along with the speed with which the respondent would identify the test logo pack among a clutter of other similar packs.

• This helps to evaluate how the logo would stand out in the shelf. • 3. Brand Name Research:• A Brand name research is important for any brand throughout its lifecycle.• Brand Name Research Is Vital When Naming a Business or Choosing the Right Service or Product

Name. • Whether you're naming a business or researching the perfect product name, our proprietary

qualitative Brand Name research can pinpoint that one best brand name that: • Fits the concept • Can be pronounced easily • Is durable and elastic across time, cultures and categories • Emotional Bonding Power - When naming a business or developing a product name, are you

connecting with your target market? Are you measuring the name's emotional bonding power?• Memorability - Brand name research shows memorability is the true litmus test of exceptional

names. Can your target market recall the new product name after seeing it just once?• Fit to Concept - Which brand name candidate best positions your company, product or service

offering?• Pronouncability - Brand name research reveals what should be common sense: If your target

market can't pronounce the brand name, they won't ask for it. Can you quantify your product name pronouncability?

• Sound Symbolism - • Brand name research involves personal interviews in which some basic concept statements may

be exposed to respondents along with the name. • Then the respondent are asked to recall the name after having read the same. This indicates the

names notice ability and ease of recall. • Then spontaneous responses are ascertained to name in terms of: • 4. Latent Association

What negative and positive associations exist with the brand? What barriers have to be overcome with negative latent associations?

• 5. Brand Association Research:• For existing brands or existing competition of new brands, respondents mind would already

have brand associations. • A brand specific association is defined as an attribute or benefit that differentiates a brand from

competing brands (MacInnis & Nakamoto, 1990). • According to David Aaker a brand association is anything linked in memory to a brand. efficient

and effective service and satisfied kids.• McDonalds is an easy company to perform brand association research on. • The McDonalds concept has several associations depending on your personality and age. • Young kids may associate McDonalds with the funny clown Ronald McDonald and the “free” toy

that comes along with the happy meal, whether adults associate McDonalds with• The level of associations can be divided into different intensity of strength. • The link to the brand will be stronger if the associations are based on many positive experiences. • In such cases, the evaluation should include the following questions:• Ascertain the current state of affairs, without exposing the respondents to the new concepts• Expose new concepts• Ascertain the response to new concepts• Compare the responses generated before and after exposure of new concepts to understand

their effects. • 6. Customer Satisfaction & Brand Loyalty Research

• There are many strategic and tactical business reasons for conducting regular customer satisfaction & Brand Loyalty research.

• Poor business performance and / or reducing revenues have, in the past, been preceded by falling customer satisfaction ratings.

• Customer satisfaction & Brand Loyalty research helps company to take the broader view of the customer relationship, and look what lies beyond 'customer satisfaction'.

• While customer satisfaction ratings are a reasonable indicator of the health of the business, a satisfied customer is not necessarily a committed or long term customer.

• Customer satisfaction & Brand Loyalty research research incorporates measures that are designed to evaluate the strength of the relationship the customer has with the product or service — and the brand

• 7. Brand Health research• Brand health is determined by the attitudes, perceptions, expectations, and behaviors resulting

from all brand interactions and experiences that ultimately shape preference for the brand. • When a company need to understand the strength of it brand, Brand Health research provides

the analytic framework for identifying the drivers of brand health as well as assessing how effective its marketing efforts are at reinforcing or changing brand perceptions.

• Brand Health research provide the conventional analyses, such as awareness, usage, loyalty, and brand image measures.

•

• 8. Brand awareness Research:• The likelihood that consumers recognize the existence and availability of a company's product or

service. Creating brand awareness is one of the key steps in promoting a product. • A gauge of marketing effectiveness measured by the ability of a customer to recognize and/or

recall a name, image or other mark associated with a particular brand.• Market awareness and perceptions of brand can rise and fall quickly in a changing market. • As Tom Peters says, you are constantly being branded by others, so it is important to take

control now. • The first step is to obtain a systematic understanding of the shape of market perception of

brand through survey research.• Typical Brand Awareness Research questions include:1. Which single company comes to mind first as a provider for IT solutions?2. Which other companies come to mind?3. What qualities does the market leader possess that the other companies do not?4. What factors drove your decision to select your primary vendor?

5. To what degree are you aware of the company’s capabilities in the area of IT solutions?6. Please list the types of products that you know the company sells.7. What three words best describe the company’s position in the industry?8. What is your perception of the company’s products? Experience? Technology? Service? Sales

processes?9. Based on your understanding of the company’s direction how do you perceive its position over

the next 12–24 months.• Brand Awareness research is critical to establishing and maintaining the desired market

awareness and perceptions of company. • 5. New Product Research• New product development is a company's lifeblood. • Growth and profits suffer without aggressive product development providing new product and

services into the market.• New product development research is not always about looking at the product in isolation - the

product, the packaging, the advertising and the pricing strategy are all integral parts of the research.

• New product launches are inherently risky as it is a venture into the unknown. • A well planned research can accurately pinpoint the richest areas of opportunity and therefore

prioritize the most promising areas of new product development. • The key to successful market research for new product development comes from an

understanding of what customers’ value and not simply from asking them to submit their own solutions.

• Types of New product Research• 1. New Markets/ Existing Products: • Every company has a product that can travel. It can travel to new geographical markets or to

new industry segments that have not been tapped before. • New markets wherever they are - new countries or new segments - carry risk. • New Markets/ Existing Products help collect information on potential customers and markets

wherever they are in the world. • With this knowledge a company can build growth and value more quickly and more securely

than by working from guesswork.• 2. Existing Markets/Existing Products :• For many companies, the first place to look for more sales is amongst existing customers. • Current customers have already made the ultimate gesture of approval and paid money to buy

your products.• A bit more persuasion and they may buy more.• However, how many companies know their customer so well that they know if they have every

available piece of business? Ask yourself the following questions:1. How much is each customer buying of the products (or services) I sell to them? 2. What share do my competitors and I have of each customer's account? 3. What does the customer think of me against the other suppliers it could or does use? 4. What would make each customer buy more?• 3. Existing Markets/Existing Products research• Existing Markets/Existing Products research answer these questions. This can be achieved by

relatively straightforward research.• All that require is a customer list and a good briefing. An appropriate questionnaire is designed,

interviews are carry out and report on how to win more business. • 4. New Markets/New Products:

The most dangerous territory of all is that of new markets and new products. Here market research is a must.

• 5. Existing Markets/New Products: • The assets of every company are its customers. Existing customers know and trust the company

sufficiently well to do business. So much so, they may give serious consideration to buying a new product or service from the company.

• In the research researcher find the opportunities for new products or services with existing customers as part of its new markets programme.

• Researcher take a brief during which he would discuss the products company want to sell and learn about their current customer.

• Researcher would then design a programme of interviews that could include face to face and telephone contacts to determine how much business company could win and at what price.