Definition of Marketing Research

Marketing Research is the systematic and objective

 identification,
 collection,
 analysis,
 dissemination, and
 use of information,

for the purpose of improving decision making related to the

 identification and
 solution of problems and opportunities in marketing.
What Constitutes Good Market
Research
 Clearly defining the problem and purpose
 Process of research well described
 Research design thoroughly planned
 Maintaining high ethical standards
 Limitations clearly revealed
 Adequate analysis of the data
 Findings presented unambiguously
 Conclusions justified
 Integrity of researcher
Why Market Research Sometimes Fails
 When the problem is not carefully designed

 When researchers are less competent, not well

trained and lack creativity

 When sufficient time and finance is not provided

 When there exists a lack of co-ordination and

understanding between researchers and
marketing managers
Pros & cons of In-house M R Activity
 Better knowledge of the company, its history,
background and current problems

 Better control and liaison

 Commitment may be higher

 More assurance of confidentiality

Pros & cons of In-house M R Activity

 Commissioning costs can be lower

 Lack of objectivity due to close relations with

clients

 Friendship and company politics

Pros of Outsourced M R Activity

 Good value

 A wider skill base

 Objectivity

 Anonymity
Pros of Outsourced M R Activity

 Superior facilities

 Agency specialization

 Less chance of bias since a fresh look is possible

Evaluation of external agency

 Personal recommendation
 Recommendations by trade associations
 Experience and Qualifications of key personnel
 Matching agency specializations of the agency
to the need
 Agency orientation towards client’s decision
makers
Evaluation of external agency

 Facilities and resources of the agency

 Level of creativity and innovation in previous
research
 Time conscious and organization culture
 Stability and reliability of the agency personnel
Qualities of a good Researcher
 Must be innovative and ready to look at any problem with
fresh perspective
 Must have skill and knowledge and prepared to try out
new ideas
 Must be familiar with recent developments in industrial
sectors, markets, products etc.
 Must be familiar with and absorb recent trends in research
techniques
 Must have considerable selling skills to convince the top
management or sponsor regarding the accuracy and
soundness of recommendations
Market Intelligence

An ongoing process of continuously collecting

information about the industry in which our
company operates, competitors’ moves in
marketing or other areas, related industries,
government policies and actions in the areas
of export, import, taxation, liberalization,
consumer law enforcement, environmental
protection, and so on
Marketing Intelligence V/s Market
Research

Marketing Intelligence Marketing Research

Ongoing process Project based on information
gap
Usually done in-house Mostly outsourced

Not meant for immediate action Action oriented

General purpose Focused to current issues

Focus on competition, environment Focus on consumers,

influencers, etc.
Marketing Research Industry:
Suppliers & Services

Research
Suppliers

Internal External

Full Service Limited Service

Customized Field Services

Services Internet/Social
Media Services Other Services
Qualitative Services
Syndicated
Services Analytical Services
 Unit 2 – Defining the Problem
 

a) Problem Definition Process

b) Role of Analytics and Hypothesis
c)Hypothesis Framing, Problem Definition and
Research Question
 
Tasks Involved in Problem
Definition

 Discussions with Decision Makers

 Interviews with Industry Experts

Problem definition
begins with
 Secondary Data Analysis discussions with the
key decision
makers(s).

 Qualitative Research
Management Decision Problem vs.
Marketing Research Problem

Management Decision Problem Marketing Research Problem

 Asks what the decision  Asks what information is
maker needs to do needed and how it should be
obtained

 Action oriented  Information oriented

 Focuses on symptoms  Focuses on the underlying

causes
Management Decision Problem and the
Corresponding Marketing Research Problem

Management Decision Problem

Marketing Research Problem
 Should a new product be  To determine consumer
introduced? preferences and purchase
intentions for the proposed
new product.

 Should the advertising  To determine the effectiveness

campaign be changed? of the current advertising
campaign.
 Should the price of the brand
be increased?  To determine the price
elasticity of demand and the
impact on sales and profits of
various levels of price changes.
 Unit 3 – Research Design

• Basic Research Designs

• Primary vs Secondary Data
• Secondary Data Classification, Evaluation and
Types
• Syndicated Data and its Role
• Syndicated Services for Customer and
Institutional Data
• MR and Social Media
Research Design: Definition

 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 or solve marketing research
problems.

Just a builder can take a blueprint and

construct a house according to
specifications, so can a marketing
research supplier take a research design
and conduct the project as designed.
Differences Between Exploratory and
Conclusive Research

Exploratory Conclusive
To test specific
To provide insights
Objective: hypotheses and
and understanding.
examine relationships.
Characteristics: Information needed
Information needed
is clearly defined.
is defined only loosely.
Research process
Research process
is formal and
is flexible and
structured.
unstructured.
Differences Between Exploratory and
Conclusive Research
Exploratory Conclusive
Characteristics: Sample is small and Sample is large and
(Cont.) nonrepresentative. representative.

Data analysis is Data analysis is

qualitative. quantitative.
Findings: Tentative. Conclusive.
Generally followed by Findings used as input
Outcome: further exploratory or into decision making.
conclusive research.
Uses of Exploratory Research

 Formulate a problem or define a problem more

precisely
 Identify alternative courses of action
 Develop hypotheses
 Isolate key variables and relationships for further
examination
 Gain insights for developing an approach to the problem
 Establish priorities for further research
 Use of Descriptive Research

 To describe the characteristics of relevant groups, such as

consumers, salespeople, organizations, or market areas
 To estimate the percentage of units in a specified population
exhibiting a certain behavior
 To determine the perceptions of product characteristics
 To determine the degree to which marketing variables are
associated
 To make specific predictions
Cross-sectional and Longitudinal
Designs
 A cross-sectional design involves the collection of
information from any given sample of population
elements only once.

 In a longitudinal design, a fixed sample (or samples) of

population elements is measured repeatedly on the
same variables.

 A longitudinal design differs from a cross-sectional

design in that the sample or samples remain the same
over time.
Uses of Causal Research

 To understand which variables are the cause

(independent variables) and which variables are the
effect (dependent variables) of a phenomenon

 To determine the nature of the relationship between the

causal variables and the effect to be predicted

 METHOD: Experiments
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 six steps of
the marketing research process (Chapter 1).

 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.
Unit 4 – Qualitative Research
• Qualitative v/s Quantitative
• Qualitative Research procedures
• Focus Groups and its Interviews
• Projective Techniques
• Mystery Shopping and innovative Methods
A Classification of Marketing Research Data
A Classification of Qualitative Research
Procedures
Qualitative Research
Procedures

Direct Indirect
(Nondisguised) (Disguised)

Depth Projective
Focus Groups
Interviews Techniques

Picture Role Playing

Word Sentence
Response and and
Association Completion
Cartoon Test Third Person
Focus Group Discussion
 It is a formal discussion between representative samples on
a particular subject
 Ideally, the group should consist of 8-10 representatives
 The representatives should be homogeneous to have a
meaningful discussion
 It should be conducted by an experienced specialist whose
role is of a catalyst
 FGD is fast and cheap and is the method for generating the
hypothesis
 They are flexible in approach, direct and easily
understandable to the client
 The limitation is that the sample may be inadequate since it
may be drawn on the basis of convenience
Advantages of F G D
 Ability to quickly and inexpensively grasp the core
issues of a topic
 They are brief and extremely flexible
 Provide an opportunity to observe reactions to the
research questions in an open ended group setting
 They bring out surprise information and new ideas
In-depth Interview
 It involves a detailed probing of the respondent by
specialist interviewer
 An informal approach where appropriate questions are
developed during the interview
 The focus is to identify and record subtle reactions of the
respondent
 It discovers the hidden motivations affecting consumer
behaviour
 It provides a strong stimulus to the insights of the
researcher
 Being unstructured, the information can be subjective
leading to different interpretations by different
researchers of the same information
 Definition of Projective Techniques
 A projective technique is an unstructured, indirect
form of questioning that encourages respondents
to project their underlying motivations, beliefs,
attitudes, or feelings regarding the issues of
concern.
 In projective techniques, respondents are asked to
interpret the behavior of others.
 In interpreting the behavior of others, respondents
indirectly project their own motivations, beliefs,
attitudes, or feelings into the situation.
 Word Association
In word association, respondents are presented with a list of words, one at a
time and asked to respond to each with the first word that comes to mind. The
words of interest, called test words, are interspersed throughout the list which
also contains some neutral or “filler” words to disguise the purpose of the study.
Responses are analyzed by calculating:

1. the frequency with which any word is given as a response;

2. the amount of time that elapses before a response is given;

3. the number of respondents who do not respond at all to a test word within a
reasonable period of time.
 Sentence Completion

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 drives a Harley is _______________.

As compared to Bullet, Pulsor or Avenger, Harley is
_________________.
Harley is most liked by ______________.

A variation of sentence completion is paragraph completion, in

which the respondent completes a paragraph beginning with the
stimulus phrase.
 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.
Cartoon Test
In cartoon tests, cartoon characters are shown
in a specific situation related to the problem.
The respondents are asked to indicate what
one cartoon character might say in response to
the comments of another character. Cartoon
tests are simpler to administer and analyze
than picture response techniques.
Role Playing and Third-Person
Techniques
Respondents are presented with a verbal or visual situation
and asked to relate the feelings and attitudes of other
people to the situation.
Role playing: Respondents are asked to play the role or
assume the behavior of someone else.
Third-person technique: The respondent is presented with a
verbal or visual situation and the respondent is asked to
relate the beliefs and attitudes of a third person rather than
directly expressing personal beliefs and attitudes. This
third person may be a friend, neighbor, colleague, or a
“typical” person.
Advantages of Projective
Techniques
 They may elicit responses that subjects would be
unwilling or unable to give if they knew the purpose of
the study.

 Helpful when the issues to be addressed are personal,

sensitive, or subject to strong social norms.

 Helpful when underlying motivations, beliefs, and

attitudes are operating at a subconscious level.
Disadvantages of Projective
Techniques
 Suffer from many of the disadvantages of unstructured
direct techniques, but to a greater extent.
 Require highly trained interviewers.
 Skilled interpreters are also required to analyze the
responses.
 There is a serious risk of interpretation bias.
 They tend to be expensive.
 May require respondents to engage in unusual behavior.
Guidelines for Using Projective
Techniques

 Projective techniques should be used because the

required information cannot be accurately obtained by
direct methods.

 Projective techniques should be used for exploratory

research to gain initial insights and understanding.

 Given their complexity, projective techniques should not

be used naively.
Unit 5 – Survey And Observation
• Survey Methods
• Offline and Online Survey Methods
• CAPI and CATI
• Response Rates
• Observation Methods
Methods of Obtaining Quantitative Data in
Descriptive Research

Quantitative Descriptive
Research

SURVEY OBSERVATION
Information Obtained Information Obtained
by Questioning by Observing Behavior or
Respondents Phenomena
The Survey Method
 The survey method of obtaining information is based on
questioning respondents.

 Perhaps the biggest issue researchers face is how to

motivate respondents to candidly answer their
questions.

 Questions regarding behavior, intentions, attitudes,

awareness, motivations, and demographic and lifestyle
characteristics all lend themselves to survey research.
The Survey Method
Advantages of Survey Research
 Ease. Questionnaires are relatively easy to administer.

 Reliability. Using fixed-response (multiple-choice)

questions reduces variability in the results that may be
caused by differences in interviewers and enhances
reliability of the responses.

 Simplicity. It also simplifies coding, analysis, and

interpretation of data.
Disadvantages of Survey Research
 Respondents may be unable or unwilling to provide the
desired information.

 Structured data collection involving a questionnaire

with fixed-response choices may result in loss of
validity for certain types of data, such as beliefs and
feelings.

 Properly wording questions is not easy.

Classification of Survey Methods

Survey Methods

Telephone Personal Mail Electronic

Traditional In-Home Mail/Fax E-Mail

Telephone Interview
Mall Intercept Internet
Computer-
Mail Panel
Assisted Computer-
Telephone Assisted
Interviewing Personal
(CATI) Interviewing
(CAPI)
 Traditional Telephone Interviews
 Traditional telephone interviews involve phoning a sample of
respondents and asking them a series of questions.

 The interviewer uses a paper questionnaire and records the

responses with a pencil.

 Telephone interviews are generally conducted from centrally

located research facilities.

 Field service supervisors can closely monitor the telephone

conversations.
Computer-Assisted Telephone
Interviewing
 Computer-assisted telephone interviewing (CATI) uses a
computerized questionnaire administered to respondents
over the telephone.

 The interviewer sits in front of a computer screen wearing a

mini-headset.

 When contact is made, the interviewer reads the questions

posed on the CRT screen and records the respondent's
answers directly into the computer.

 Interim and update reports can be compiled instantaneously,

as the data are being collected.
Computer-Assisted Telephone
Interviewing (Cont.)

 Data quality is also enhanced with

on-the-spot review of completed questionnaires.

 The program will personalize questions and

control for logically incorrect answers, such as
percentage answers that do not add up to 100
percent.

 The software has built-in branching logic,

which will skip questions that are not
applicable or will probe for more detail when
warranted.
Personal In-Home Interviews
 In personal in-home interviews, respondents
are interviewed face-to-face in their homes.
 The interviewer's task is to contact the
respondents, ask the questions, and record
the responses.
 In recent years, the use of personal in-home
interviews has declined.
Mall-Intercept Personal Interviews
mall-intercept interviews,
respondents are intercepted in shopping in malls.
 The process involves stopping the shoppers,
screening them for appropriateness, and either
administering the survey on the spot or inviting them
to a research facility located in the mall to complete
the interview.
 While not representative of the population in general,
shopping mall customers do constitute a major share
of the market for many products.
Computer-Assisted Personal
Interviewing (CAPI)
 In computer-assisted personal interviewing (CAPI) the
respondent sits in front of a computer terminal and
answers a questionnaire on the screen by using the
keyboard or a mouse.
 Help screens and courteous error messages are
provided.

 The colorful screens and on- and off-screen stimuli add

to the respondent's interest and involvement in the task.
Computer-Assisted Personal
Interviewing (CAPI) (Cont.)
 This method has been classified as a personal
interview technique since an interviewer is usually
present to serve as a host and to guide the respondent
as needed.

 This approach is used in shopping malls, preceded by

the intercept and screening process described earlier.

 It is also used to conduct business-to-business

research at trade shows or conventions.
Mail Interviews
 A typical mail interview package consists
of the outgoing envelope, cover letter,
questionnaire, postage-paid return
envelope, and possibly an incentive.

 Those individuals motivated to do so

complete and return the questionnaire
through the mail.

 There is no verbal interaction between the

researcher and the respondent.
Mail Interviews (Cont.)

 Individuals are selected for cold surveys

through mailing lists the client maintains
internally or has purchased commercially.

 The type of envelope, the cover letter, the length

of the questionnaire, and the incentive (if one is
offered) all affect response rates.
E-mail Surveys
 If the addresses are known, the e-mail survey
can simply be sent electronically to
respondents included in the sample.

 Respondents key in their answers and send an

e-mail reply.

 Typically, a computer program is used to

prepare the questionnaire and email address list,
and to prepare the data for analysis.
E-mail Surveys (Cont.)
 Respondent anonymity is difficult to maintain because
a reply to an email message includes the sender’s
address.

 E-mail surveys are especially suited to projects where

the email lists are readily available, such as surveys of
employees, institutional buyers, and consumers who
frequently contact the organization via e-mail (e.g.,
frequent fliers of an airline).
 An Internet survey is a questionnaire posted
on a Web site that is self administered by
the respondent.

 The questions are displayed on the screen

and the respondents provide answers by
clicking an icon, keying in an answer, or
highlighting a phrase.

 Web survey systems are available for

constructing and posting Internet surveys
Internet Surveys (Cont.)
 The researcher can obtain at any time survey
completion statistics, descriptive statistics of the
responses, and graphical display of the data.

 As compared to email surveys, Internet surveys offer

more flexibility, greater interactivity, personalization,
automatic skip patterns and visual appeal.

 Several Web sites, such as SurveyMonkey (www.

surveymonkey.com), allow users to design surveys
online.
 Relative Advantages of Survey Methods

Method Advantages Disadvantages

Telephone Fast No use of physical stimuli
High sample control Limited to simple questions
Good control of field force Quantity of data is low
Good response rate
Moderate cost
In-Home Complex questions can be asked Low control of field force
Good for physical stimuli High social desirability
Very good sample control Potential for interviewer bias
High quantity of data Most expensive
Very good response rate May take longer
Mall- Complex questions can be asked High social desirability
intercept Very good for physical stimuli Potential for interviewer bias
Very good control of environment Quantity of data is moderate
Very good response rate High cost
Relative Advantages of Survey Methods
Method Advantages Disadvantages
CAPI Complex questions can be asked High social desirability
Very good for physical stimuli Quantity of data is moderate
Very good control of environment High cost
Very good response rate
Low potential for interviewer bias
Mail No field force problems Limited to simple questions
No interviewer bias Low sample control for cold mail
Moderate/High quantity of data No control of environment
Social desirability is low Low response rate for cold mail
Low cost Low speed
Mail Panel No field force problems Limited to simple questions
No interviewer bias Low/moderate speed
Low/moderate cost No control of environment
High quantity of data
Good sample control
Low social desirability
 Relative Advantages of Survey Methods

Method Advantages Disadvantages

Electronic: Low cost Moderate quantity of data
E-mail No interviewer bias Low sample control
High speed No control of environment
Social desirability is low Low response rate
Contact hard-to-reach Security concerns
respondents
Electronic: Visual appeal and interactivity Moderate quantity of data
Internet No interviewer bias Low sample control
Low cost No control of environment
Social desirability is low Low response rate
Very high speed
Personalized, flexible questioning
Contact hard-to-reach
respondents
 Improving Response Rates

Methods of Improving Response Rates

Prior Other
Incentives Follow-up
Notification Facilitators

Monetary Nonmonetary

Prepaid Promised
Observation Methods
Observation involves recording the behavioral
patterns of people as well as data on objects and
events in a systematic manner to obtain
information about the phenomenon of interest.
The observer does not question or communicate
with the people being observed.
Information can be recorded as the events occur
or from records of past events.
 For structured observation, the researcher specifies
in detail what is to be observed and how the
measurements are to be recorded, e.g., an auditor
performing inventory analysis in a store.

 In unstructured observation, the observer monitors

all aspects of the phenomenon that seem relevant
to the problem at hand, e.g., observing children
playing with new toys.
 In disguised observation, the respondents are
unaware that they are being observed. Disguise may
be accomplished by using one-way mirrors, hidden
cameras, or inconspicuous mechanical devices.
Observers may be disguised as shoppers or sales
clerks.

 In undisguised observation, the respondents are

aware that they are under observation.
 Natural observation involves observing behavior as
it takes places in the environment.

 In contrived observation, respondents' behavior is

observed in an artificial environment.
Observation Methods: Personal
Observation
 In personal observation, a researcher observes
actual behavior as it occurs.

 The observer does not attempt to manipulate

the phenomenon being observed but merely
records what takes place.

 For example, a researcher might record traffic

counts and observe traffic flows in a
department store.
Unit 6 – Experimentation & Causal
Research

• Causality Concepts
• Experimentation
• Concept of Validity
• Internal vs External Validity
• Experimental Designs
Experimentation as Conclusive
Research
Conclusive
Research

Descriptive Causal

Experimentation

Field Laboratory
Experiments Experiments
Conditions for Causality
 Concomitant variation is the extent to which a cause, X,
and an effect, Y, occur together or vary together in the
way predicted by the hypothesis under consideration.
 The time order of occurrence condition states that the
causing event must occur either before or
simultaneously with the effect; it cannot occur
afterwards.
 The absence of other possible causal factors means
that the factor or variable being investigated should be
the only possible causal explanation.
What is an Experiment?
Manipulate

Independent Variables Measure

Test Units

Dependent
Variables

Extraneous Variables

Control
Controlled Experiments

Controlled experiments, in which the

extraneous variables are controlled, can
provide strong evidence on all three
conditions for causality.
Definitions and Concepts

 Independent variables are variables or alternatives that are

manipulated and whose effects are measured and compared,
e.g., price levels.
 Test units are individuals, organizations, or other entities
whose response to the independent variables or treatments is
being examined, e.g., consumers or stores.
 Dependent variables are the variables which measure the
effect of the independent variables on the test units, e.g.,
sales, profits, and market shares.
 Extraneous variables are all variables other than the
independent variables that affect the response of the test
units, e.g., store size, store location, and competitive effort.
Validity in Experimentation
Validity in Experiments

Internal Validity External Validity

Whether the manipulation of the

independent variables or treatments Whether the cause-and-effect
actually caused the observed effects relationships found in the
on the dependent variables experiment can be generalized
 History refers to specific events that are external to the
experiment but occur at the same time as the experiment.
 Maturation (MA) refers to changes in the test units
themselves that occur with the passage of time.
 Testing effects are caused by the process of
experimentation. Typically, these are the effects on the
experiment of taking a measure on the dependent variable
before and after the presentation of the treatment.
 The main testing effect (MT) occurs when a prior
observation affects a latter observation.
 In the interactive testing effect (IT), a prior measurement
affects the test unit's response to the independent variable.
 Instrumentation (I) refers to changes in the measuring
instrument, in the observers, or in the scores themselves.
 Statistical regression effects (SR) occur when test units with
extreme scores move closer to the average score during the
course of the experiment.
 Selection bias (SB) refers to the improper assignment of test
units to treatment conditions.
 Mortality (MO) refers to the loss of test units while the
experiment is in progress.
Controlling Extraneous Variables
 Randomization refers to the random
assignment of test units to experimental
groups by using random numbers.
Treatment conditions are also randomly
assigned to experimental groups.

 Extraneous variables can be controlled by

randomization.
A Classification of Experimental Designs
Experimental Designs

Pre Experimental
•One-Shot Case Study
•One-Group Pretest- Statistical
Posttest •Factorial Design
•Static Group

True Experimental
•Pretest-Posttest Control Group
•Posttest-Only Control Group
One-Shot Case Study
X 01

 A single group of test units is exposed to a treatment X.

 A single measurement on the dependent variable is
taken (01).
 There is no random assignment of test units.
 The one-shot case study is more appropriate for
exploratory than for conclusive research.
One-Group Pretest-Posttest Design
01 X 02

 A group of test units is measured twice.

 There is no control group.
 The treatment effect is computed as
02 – 01.
 The validity of this conclusion is questionable since
extraneous variables are largely uncontrolled.
Static Group Design
EG: X 01
CG: 02

 A two-group experimental design.

 The experimental group (EG) is exposed to the
treatment, and the control group (CG) is not.
 Measurements on both groups are made only after the
treatment.
 Test units are not assigned at random.
 The treatment effect would be measured as 01 - 02.
True Experimental Designs:
Pretest-Posttest Control Group Design

EG: R 01 X 02
CG: R 03 04

 Test units are randomly assigned to either the

experimental or the control group.
 A pretreatment measure is taken on each group.
 The treatment effect (TE) is measured as:(02 - 01) - (04 -
03).
Post test-Only Control Group Design
EG : R X 01
CG : R 02

 The treatment effect is obtained by

TE = 01 - 02
 Except for pre-measurement, the implementation of this
design is very similar to that of the pretest-posttest
control group design.
Statistical Designs
Statistical designs consist of a series of basic experiments that
allow for statistical control and analysis of external variables and
offer the following advantages:

The effects of more than one independent variable can be measured.

Specific extraneous variables can be statistically controlled.

Economical designs can be formulated when each test unit is
measured more than once.

The most common statistical design is the factorial design.

 An Example of a Factorial Design
Amount of Humor
Amount of Brand Information
No Humor Medium Humor High Humor

Low

Medium

High
Laboratory vs. Field Experiments
Factor Laboratory Field

Environment Artificial Realistic

Control High Low
Reactive error High Low
Demand artifacts High Low
Internal validity High Low
External validity Low High
Time Short Long
Number of units Small Large
Ease of implementation High Low
Cost Low High
Limitations of Experimentation
 Experiments can be time consuming,
particularly if the researcher is interested in
measuring the long-term effects.
 Experiments are often expensive. The
requirements of experimental group, control
group, and multiple measurements
significantly add to the cost of research.
 Experiments can be difficult to administer. It
may be impossible to control for the effects
of the extraneous variables, particularly in a
field environment.
 Competitors may deliberately contaminate
the results of a field experiment.
Unit 7 – Measurement & Scaling
Classification of Scales
 Single item scale : There is only one item to
measure a given construct.
 Example: How satisfied are you with your current job
- Highly dissatisfied
-Dissatisfied
-Neither satisfied nor dissatisfied
-Satisfied
-Highly satisfied
The problem here is there are many attributes that lead
to satisfaction. It may be difficult to analyze the
problem areas
 Scaling Techniques

Comparative Scales Non-comparative Scales

Paired Comparison Graphic rating Scale

Itemized rating Scale
(Continuous rating)

Constant Sum
Likert

Rank Order
Semantic
Differential

Q-Sort and other

procedures Stapel
 Paired comparison method
Five mutual funds are given to investors. He has to choose one from two
funds at a time. Responses are summarized as under:

A B C D E A B C D E
A ----- 0.6 0.3 0.6 0.35 A ----- 1 0 1 0

B 0.4 ----- 0.28 0.7 0.4 B 0 ----- 0 1 0

C 0.7 0.72 ----- 0.65 0.1 C 1 1 ----- 1 0

D 0.4 0.3 0.35 ----- 0.42 D 0 0 0 ----- 0

 The first table indicates proportion of respondents who have chosen
one fund over the other i.e. 60% have chosen B over A
E 0.65 0.6 0.9 0.58 ----- E 1 1 1 1 -----
 For convenience, values <= 0.5 is taken as 0 and >0.5 as 1
 Column totals indicate that D fund isTotal
the most
2 preferred.
3 1 4 0
 Can result in a ‘circular error’
 Rank order scaling
Five mutual funds are given to investors. He has to rank the funds as per
his preference on the basis of his perceived performance of the
funds. Responses are summarized as under:

Mutual Funds Rank

FT Blue Chip
ICICI Prud Blue chip
BlackRock Equity
UTI equity
Reliance Opportunity

 The approach is also comparative in nature

 If the respondent does not like any of the choices and is forced to
rank in order of choice, the fund ranked one shall be interpreted as
the one least disliked and so on.
 Constant sun rating scale
Respondents are asked to allocate 100 points between various objects in
the order of their preference. :

Mutual Funds Points

FT Blue Chip
ICICI Prud Blue chip
BlackRock Equity
UTI equity
Reliance Opportunity
Total 100

 The data is not only comparative but also results in a ratio scale
Non-comparative-Graphic method
1 2 3 4 5 6 7

Least Most
Preferred preferred

Respondent to put a tick mark at appropriate place as

per his priority
Itemized rating-Likert Scale
 Large number of statements are collected. Number can
be 30 to 50. Statements should cover all attributes to
measure the construct
 Statements are collected through secondary data, FGD
 No numerical values are assigned when the statements
are administered to respondents
 Only anchor labels i.e. agreement-disagreement are
assigned
 Numerical values are assigned only after the responses
are collected
 It can be a 5 point or 7 point rating scale
 Numerical values are reversed for negative worded
statements
Itemized rating-Semantic Differential
 Widely used for measuring self-concept, product-
concept
 Bipolar adjectives or statements are used
 Bipolar adjectives are collected through secondary data,
FGD
 No numerical values are assigned when the statements
are administered to respondents
 Numerical values are assigned only after the responses
are collected
 It can be a 5 point or 7 point rating scale
 Numerical values are reversed for unfavourable
descriptors
 Stapel Scale

The Stapel Amazon The data

scale is a +5 +5
obtained by
unipolar rating +4 +4
using a
scale with ten Stapel scale
+3 +3
categories can be
+2 +2x
numbered analyzed in
+1 +1
from -5 to +5, the same
High Quality Poor Service
without a way as
neutral point -1 -1 semantic
(zero). This -2 -2 differential
scale is usually -3 -3 data.
presented -4x -4
vertically. -5 -5
Some Unique Rating Scale
Configurations
Smiling Face Scale
Instructions: Please point to the face that shows how
much you like the Barbie Doll. If you do not like the
Barbie Doll at all, you would point to Face 1. If you liked
it very much, you would point to Face 5.
Form:
12345
 Scale
Evaluation

Reliability Validity
Reliability

 Reliability can be defined as the extent to

which measures are free from random error.
Reliability: Advanced Concepts
 In test-retest reliability, respondents are administered identical sets of
scale items at two different times and the degree of similarity between the
two measurements is determined.

 Internal consistency reliability determines the extent to which different

parts of a summated scale are consistent in what they indicate about the
characteristic being measured.

 In split-half reliability, the items on the scale are divided into two halves and
the resulting half scores are correlated.

 The coefficient alpha, or Cronbach's alpha, is the average of all possible

split-half coefficients resulting from different ways of splitting the scale
items. This coefficient varies from 0 to 1, and a value of 0.6 or less
generally indicates unsatisfactory internal consistency reliability.
Validity
 The validity of a scale may be defined as the extent to which
differences in observed scale scores reflect true differences among
objects on the characteristic being measured, rather than systematic
or random error.

 Perfect validity requires that there be no measurement error. That is,

random error must be zero and systematic error must be zero.
Research Proposal Defined

It is a researcher’s offer to render market

research service to a potential buyer
or a sponsor
Purpose Of Proposal
 To present management question to be
researched and its importance and relevance
 To indicate the research efforts of other
researchers on related management questions
 To highlight the data necessary for solving the
management questions
 To present the methodology of the research
 To state the means of gathering and treating the
data and interpretation of the data
Benefits Of Making Proposal

 It helps the researcher to have a tentative work

plan
 Charts the logical steps needed to accomplish the
stated goals
 It helps the researcher to review the project steps
 It helps the researcher to assess previous
approaches to the problem and revise the plan
accordingly
Benefits Of Making Proposal

 It provides an opportunity to spot errors in

assumptions and correct them if necessary
 It gives the time and budget estimates
 It becomes a milestone for the sponsor to
review the progress of the study
 It serves as a logical guide for investigation