Advertising and Marketing Research Semester-VI- TYBMM
RESEARCH FUNDAMENTALS
MEANING OF RESEARCH
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learner’s Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and Mory define research as a “systematized effort to gain new knowledge.” Some people consider research as a movement from the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research.
OBJECTIVE OF RESEARCH
The purpose of research is to discover answers through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose, we may think of research objectives as falling into number of broad grouping:
•
To gain familiarity with a phenomenon or to achieve new insights into it (studies with this object in view are termed as exploratory or formulative research studies.•
To portray accurately the characteristics of a particular individual, situation or a group (studies with this object in view are known as descriptive research studies);•
To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are known as diagnostic research studies).• To test a hypothesis of a casual relationship between variables (such studies are known as hypothesis-testing research studies).
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.
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:
*To measure market potentials, characteristics of the market and market share. *To obtain information to make short range and long range forecasts.
*To evaluate new-product opportunities and acceptance, and to test existing products relative to competitors product.
*To help companies make better advertising decisions.
Other applications of MR
*Product optimization or product design studies.
*Tracking studies to measure brand acceptance or usage. *Basic marketing strategy studies
*Advertising campaign testing.
Advertising pre-testing or copy testing.
Why do we need MR?
*We don’t know enough about the consumer/potential customers.
*MR is to get to know them-their buying behavior, their attitudes, their tastes, their habits etc. *Budget for advertising/ product development is tremendous.
*Branding effort is long-term.
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Roles of Marketing Research
Roles of Marketing Research
2
2
Descriptive
Descriptive
Diagnostic
Diagnostic
Predictive
Predictive
Marketing Research
has three roles:
Marketing Research
Marketing Research
has three roles:
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Diagnostic
Diagnostic
Predictive
Predictive
Descriptive
Descriptive
Gathering and presenting
factual statements
Explaining data
Attempting to estimate the
results of a planned
marketing decision
Roles of Marketing Research
Roles of Marketing Research
2
2
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Management Uses of
Management Uses of
Marketing Research
Marketing Research
Improve the quality of decision making
Trace problems
Focus on keeping existing problems
Understand the ever-changing
marketplace
2
2
ADVANTAGES OF MR
For decision makers, faced with the decisions and doubts described above, what should be the benefits of having research conducted? The most universal and usually most vital is this: reduction of uncertainty. If research findings contribute any relevant knowledge of what exists, that the decision maker was ignorant of, or if it provides new clues to what is likely in the future, they should enable a more accurate conclusive decision to be reached.
Uncertainty can not be wholly eliminated with relevant research, but it may be markedly reduced. Research also may be of benefit in ways ordinarily thought of as uncertainty reduction:
(1) Problems may come to light that otherwise would be not be known until they became very serious or even insoluble
(2) Objectives may come under re-evaluation when evidence indicates that (a) they may be too high to be feasible under expected conditions or (b) they should be higher due to overlooked opportunity
(3) Better alternatives may be revealed or their conception stimulated (4) Marketing research may be useful as evidence in legal matters.
We would call attention to other benefits, such as the psychological one of making the decision-maker feel more confident and willing to be decisive. Prejudice against new ideas may be overcome by evidence from the market place. Sociologically, research can keep the executives attuned to changing consumer needs and wants and to the impacts of consumerism. Less laudable are political motives for marketing research, like the executives who wants it to confirm some preconceived ideas and overcome rivals in the organization (but would suppress if they fail to confirm).
LIMITATIONS TO MR
Some of the limitations faced by the researchers in MR are:1. The lack of scientific training in the methodology of research is a great impediment for researchers in our country. There is paucity of competent researchers. Many researchers take a leap in the dark without knowing research methods. Most of the work, which goes in the name of research, is not methodologically sound. Research to many researchers and even to their guides, is mostly a scissors and paste job without any sight shed on the collated materials. The consequence is obvious, viz, the research results, quite often, do not reflect the reality or realities. Before undertaking research projects, researchers should be well equipped with all the methodological aspects. As such, efforts should be made to provide short-duration
intensive courses for meeting this requirement.
2. There is insufficient interaction between the university research departments on one side and business establishments, government departments and research institutions on the other side. A great deal of primary data of non-confidential nature remain untouched/untreated by the researchers for want of proper contacts. Efforts should be made to develop satisfactory liaison among all concerned for better and
realistic researchers. There is need for developing some mechanisms of a university – industry interaction
programme so that academics can get ideas from practitioners on what needs to be researched and practitioners can apply the research done by the academics.
3. Most of the business units in our country do not have the confidence that the material supplied by them researchers will not be misused and as such they are often reluctant in supplying the needed information to researchers. The concept of secrecy seems to be sacrosanct to business organizations in the country so much so that it proves an impermeable barrier to researchers. Thus, there is the need for generating the
confidence that the information/data obtained from a business unit will not be misused.
4. Research studies overlapping one another are undertaken quite often for want of adequate information. This results in duplication and fritters away resources. This problem can be solved by proper compilation and revision, at regular intervals, of a list of subjects on which and the places where the research problems in various disciplines of applied science which are of immediate concern to the industries.
5. There does not exist a code of conduct for researchers and inter-university and inter-departmental rivalries are also quite common. Hence, there is need for developing a code of conduct for researchers which, if adhered sincerely, can win over this problem.
6. Many researchers in our country also face the difficulty of adequate and timely secretarial assistance, including computerial assistance. This causes unnecessary delays in the completion of research studies. All possible efforts be made in this direction so that efficient secretarial assistance is made available to researchers and that too well in time. University Grants Commission must play a dynamic role in solving this difficulty.
7. Library management and functioning is not satisfactory at many places and much of the time and energy of researchers are spent in tracing out the books, journals, reports, etc., rather than in tracing out relevant material from them.
8. There is also the problem that many of our libraries are not able to get copies of old and new Acts/Rules,
reports and other government publications in time. This problem is felt more in libraries, which are away
in places from Delhi and/or the state capitals. Thus, efforts should be made for regular and speedy supply of all governmental publications to reach our libraries.
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 and
3. Choosing appropriate media vehicles.
Advertising research is a part of MR
AMR also includes:
Product research Pricing research Sales research and Distribution research
Research process:
1. Define Research Problem/objective
2. Determine Expected value of perfect information
3. Research technique and Determine Data Collection method
4. Determine the measurement techniques 5. Research Design/ Sampling
6. Data Processing and Analysis 7. Determine Time And cost 8. Define the ethics of research 9. Prepare the research report
Step1
: Define Research Problem/objective
State the research questions and research objectives
a. PROBLEM DISCOVERY
It involves a search for causation among symptoms, problems, and decisions. A symptom is a condition that indicates the existence of a problem, and we, must be careful not to confuse this with a problem. Symptoms occupy an essential place in the problem-solving process, for the underlying problem. A problem exists whenever one faces a question whose answer – or a need whose fulfilment – involves doubt and uncertainty. If there is no answer or solution, there is no problem (although the consequences might be terrible); and if there is only a single possible answer or solution, there is no problem. A decision is a determination or resolution of a question. In the terms of a business executive, a decision is the determination of a course of action to be taken. 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. Business problems are not found by surprise or accidental circumstances. The persons who find problems are sensitized to be on the alert and are prepared to find them. Always there is evidence that the searching mind penetrates with insight. Our abilities can go beyond intuition or a sixth sense. Fortunately, there are means available to sharpen our capacities in problem discovery. First, an understanding of the different types of difficulties or symptoms which may call for decisions is useful. Second, provision of a marketing information system may often signify the existence of the problem to a decision maker.
b. PROBLEM DEFINITION
The first step in any marketing research project is to define the problem. 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. 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. Once the problem has been precisely defined, the research can be designed and conducted properly.
c. RESEARCH OBJECTIVES
The research objective is a statement, in as precise terminology as possible, of what information is needed. The research objective should be framed so that obtaining the information will ensure that the research purpose is satisfied.
D. HYPOTHESES DEVELOPMENT
Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research, and pragmatic considerations.
Hypothesis Definition: Tentative theory or supposition provisionally adopted to explain certain facts and
guide the investigation of others.
Hypothesis is tentative and declarative statement formulated to be tested describing relationship between concepts. A good hypothesis is set during exploratory research and tested during conclusive research.
Types of Hypothesis:
1. Null Hypothesis (H0): The hypothesis you will continue to believe unless your data convince you
otherwise. You usually don’t like the null hypothesis, and you would prefer not to believe it, but as the Rolling Stones said, “You can’t always get what you want.”
2. Alternative Hypothesis (HA or H1): The opposite of the null hypothesis, usually that which you are
trying to “prove” with your data. We construct the hypotheses such that logically, either H0 is true or HA is true. Between them, they cover all possible outcomes.
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:
• The ability and willingness to act on the information.
• The accuracy of the information.
• The level of indecisiveness that would exist without the information.
• The amount of variation in the possible results.
• The level of risk aversion.
• The reaction of competitors to any decision improved by the information.
• The cost of the information in terms of time and money.
Characteristics of Valuable Information
Relevance
Quality
Timeliness
Completeness Basic Questions -
How much will the study cost? Is the time frame acceptable? Is outside help needed?
Will this research design attain the stated research objectives? When should the research be scheduled to begin?
Step3: Research Technique and Determine Data Collection method
Basic Types of Research Approaches or Research Technique
There are two broad categories of research: qualitative research and quantitative research.
Difference between Qualitative &Quantitative research
The number of people you speak to determines whether the research is considered qualitative or quantitative. In a qualitative research study, such as a focus group, you are gathering information from a small number of people (typically under 100). On the other hand, in a quantitative study, such as a telephone survey, you are gaining input from a large number of people (normally at least 200).
Qualitative research is used when it is important to understand why someone does something, such as respond favorably to an advertisement. Quantitative research is used when you are seeking to learn how many people in a population are likely to respond a certain way, such as vote.
A. Qualitative Research - uses words, rather than numbers, to explain research findings.
B. Quantitative Research - uses numbers in a form of mathematical analysis to explain research findings.
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:
Measuring market size
Analyzing demand of a new product
Determining how many people exhibit a particular attitude or behavior Measuring the size of particular market segments
Quantitative research is the method to use when:
Measuring market size
Analyzing demand of a new product
Determining how many people exhibit a particular attitude or behavior 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.
A. Method of collecting primary data
1. Types of Surveys:
A. 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 interviews They allow more 'depth'
Physical prompts such as products and pictures can be used
Body language can emphasize responses
Respondents can be 'observed' at the same time
Disadvantages of face-to-face interviews Interviews can be expensive
It can take a long period of time to arrange and conduct.
Some respondents will give biased responses when face-to-face with a researcher
B. Mall-Intercept - Interview consumers in shopping malls or other high-traffic locations (usually done in
public areas or interviewees may be taken to some nearby private area). Also used to screen people for inclusion in focus groups. (this method is relatively simple, yet effective & efficient)
C. Executive Interview - Interviews conducted with business people about products or services. (Very
expensive and time consuming.)
D. From-Home Telephone Interview - Interviewers use their home phones to interview respondents, who
are usually consumers & industrial users of products. Advantages of telephone interviews
Can be geographically spread
Can be set up and conducted relatively cheaply Random samples can be selected
Cheaper than face-to-face interviews Disadvantages of telephone interviews
Respondents can simply hang up Interviews tend to be a lot shorter Visual aids cannot be used
Researchers cannot behavior or body language
Central Location Telephone Interview - Interviewers make calls from a company facility to reach and
interview respondents.
This allows the supervisor to unobtrusively monitor the interviewing while it is taking place, and can also facilitate the use of computer assisted interviewing capabilities [see next].
Computer Assisted Telephone Interview (CATI) - Central location telephone interviewing in which the
interviewer enters answers directly into the computer.This allows the interviewer to input responses directly into the data set which avoids the cost and processing errors associated with manual coding and entering of data into the computer sometime after the interviews generated the raw input data on paper.
E. Direct Computer Interview - Consumers are intercepted in a mall and interviewed by a computer that
asks questions and accepts responses from the consumer's (participant's/ subject's) own hand.
F. Self-Administered Questionnaire - A questionnaire filled out by the respondent with no interviewer
present. Used in mall-intercepts, classrooms and mail surveys.
G. Mail Surveys - Questionnaires are mailed to a sample of consumers or industrial users, along with
instructions, postage paid return envelopes, and cover letters. Respondents complete and return the
questionnaires by mail. The most serious problem with mail surveys is that the response rates are often very low (e.g., often less than 10%).
a) Ad Hoc (one shot) Mail Surveys - Questionnaires are sent to selected names and addresses with no prior
(no pretest) or posttest contact.
b) Mail Panel - Participants are precontacted and screened, then periodically sent questionnaires for
completion to produce data for a series of studies.
H. 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 Internet
• Relatively inexpensive
• Uses graphics and visual aids
• Random samples can be selected
• Visitors tend to be loyal to particular sites and are willing to give up time to complete the forms
Disadvantages of the Internet
• Only surveys current, not potential customers.
• Needs knowledge of software to set up questionnaires and methods of processing data
• May deter visitors from your website.
2. OBSERVATION
I. The Nature of Observation Research
It is the systematic process of recording the behavioural patterns (or events) of people, objects, and occurrences without questioning or communicating with them.
Conditions for Using "Observations" in Research: (all three must be present)
1. The desired information must be inferable from observation of subjects' behavior; 2. The behavior of interest must be frequent, repetitive, or predictable; and
3. The behavior of interest must be of relatively short duration.
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Observation Research
Observation Research
Mystery Shoppers
One-Way Mirrors
Types of
Observation
Research
Types of
Types of
Observation
Observation
Research
Research
Audits
Machines
Watching
People
Machines
Machines
Watching
Watching
People
People
People
Watching
People
People
People
Watching
Watching
People
People
People
Watching
an Activity
People
People
Watching
Watching
an Activity
an Activity
Traffic Counters
Passive People Meter
3
3
Approaches to Observation Research:
1. Natural versus Contrived Observations - Natural refers to counting naturally occurring events. Contrived refers to setting up an experiment, where most or all of the participants are at least aware of the specifics of the observations (such as when, where, and which products or services are involved in the exercise) that are being conducted.
2. Disguised versus Undisguised (Open) Observations - Disguised refers to the process of monitoring
people, objects, or occurrences that do not even know they are being watched, much less why.
Undisguised refers to OPEN OBSERVATIONS which is the process of monitoring people who know they are being watched (whether contrived or not).
3. Structured versus Unstructured Observations - Structured refers to a study in which the observer fills
out a questionnaire-like form, or counts the number of times an activity occurs.
Unstructured refers to a study in which the observer simply makes notes on the behavior being observed. (It is usually used when the researcher doesn't know much about the behavior or subject of interest; used in this way, it is a preliminary study to be followed later by a structured study or observation.)
4. Human versus Machine Observer - The use of machines, such as cameras and traffic counting devices,
are less expensive, more accurate, and can be deployed faster than humans.
Thus, they are used when the situation allows and when the machines are available.
5. Direct or Indirect Observations - Most marketing observations directly observe current behaviors.
However, past behavior can be indirectly observed by reviewing some record or evidence of past behaviors or lack thereof (such as how much of a product was "unused" over some period of time).
I. Human Observations
- refers to people (rather than machines) watching other people. Types include:
A. Mystery Shoppers - people that are employed by a firm to pose as consumers and shop at competitors'
stores to compare prices, displays, service performances, cleanliness, and the like.
B. One-Way Mirror Observations - The practice of watching unseen from behind a one-way mirror. Often
used for product testing and with focus groups.
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 - 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.
F. Audits - are examinations and verifications of the sales of subject products.
There are two general categories: Retail audits measure sales to final consumers, and wholesale audits
determine the amount of product movement from warehouses to retailers. Retail distribution audits are similar to store audits however these audits do not measure inventory sales: instead they are observational studies at the retail level. Field agents enter stores unannounced and without permission. They observe and record the brands present, price, shelf facings and other relevant data for selected product categories.
Audits provide relatively precise information on the movement of many different types of goods. Since most products are not sold directly to the end user, but to retailers, wholesalers and distributors, the manufacturer does not have information on sales at the retail level. Even though information on factory shipments are available, warehouse stocks might be accumulating because of limited retail sales. Moreover, audits give information on how competing products are faring in the marketplace.
II. People Watching an Activity
Audits: - are examinations and verifications of the sales of subject products. Audits involve the physical inspection of inventories, sales receipts, shelf facings, prices, and other aspects of the marketing mix to determine sales, market share, relative price, distribution, or other relevant information.
III. Machine Observation Types:
A. Traffic Counters - Machines used to measure vehicular flow over a particular stretch of roadway. B. Physiological Measurement - refers to measuring the level of involuntary change in a person's activation
Activation - refers a person's feeling of arousal, inner tension, or alertness.
Activation is stimulated via a subcortical unit, called the reticular activation system (RAS), which is located in the human brainstem.
3. EXPERIMENTATION
Experiment
-- refers to a research project constructed such that the researcher (experimenter) changes one element (an explanatory or independent variable) to observe the effect of that change on another element (the dependent variable).An experiment measures the change in the dependent variable created by a specific, controlled change in another variable(s) which is called the independent variable(s).
This is done by controlling or holding constant the other independent variables while manipulating the independent variable(s) of interest, and measuring the change created in the dependent variable.
Thus, the researcher is an active participant in the research process instead of a passive collector of data as with the survey or observation methods of research.
Experimental Settings
- are three types:1. Laboratory Experiments - Tests done in a sterile environment in which the researcher can control almost
all possible causal factors. 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 my 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.
2. Field Experiments - Tests conducted outside the laboratory in an actual market environment. 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.
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.
3. Continuous research:
Certain types of data are gathered on a regular basis as opposed to the ad hoc survey. Moreover, researchers will use standardized methods in order that the data collected at one point in time is comparable with that collected at other times.
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.
Diary panels
Diary panels involve samples of households that have agreed to provide specific information regularly over an extended period of time. For this reason they are often referred to as continuous panels. Respondents are asked to keep a specially designed dairy.
a. Media panels are primarily used for establishing advertising rates for radio, television and printed media.
Purchase panel data can be used to forecast sales levels or market shares of new products, for identifying trends and establishing demographic profiles of specific user groups, for evaluating test markets, for testing different advertising campaigns and for estimating brand switching and repeat purchase rates.
Although the discussion has focused on consumer panels it should be noted that panels can, and have been, successfully established using farmers.
b. Consumer Purchase Panels or Omnibus Panels
Of these types of panels, the consumer purchase panel is the most often used and has the widest range of applications. Such panels have been established by many different organizations, including the government, various universities, newspapers, manufacturers, and marketing research firms.
The typical consumer purchase panel furnishes information at regular intervals on continuing purchases of the products covered. The type of product, brand, weight or quantity of unit, number of units, kind of package or container, price per unit, whether a special promotion was in effect, store name, and date and day of week are reported for each product bought.
Advantages of consumer Panels Can Provide Information On:
Aggregate Sales Activity Brand Shares
Shifts in Buyer Characteristics Shifts in Retail Outlets
Limitations of Consumer Panels Possibility of Selection Bias Mortality Effect
Testing Effects
4. Focus group discussions (F.G.Ds):
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. In Europe, focus tend to consist of 6 to 8 respondents, vary in length from 1.5 to 4 hours and are often conducted in the home of the recruiter. Otherwise the interviewers are similar. 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:
1. Basic- need studies for product idea creation, 2. New product idea or concept exploration, 3. Product positioning studies,
4. Advertising and communications research,
5. Background studies on consumer’s frames or reference,
6. Establishment of consumer vocabulary as a preliminary step in questionnaire development and, 7. Determination of attitudes and behavior.
Advantages
1. Each individual is able to expand and refine their opinions in the interaction with the other members. This process provides more detailed and accurate information than could be derived from each separately.
2. A group interview situation is generally more exciting and offers more stimulation to the participants than the standard depth interviews.
3. The security of being in a crowd encourages some members to speak out when they otherwise would not.
4. 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.
5. 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. 88
6. A final major advantage of focus groups is that executives often observe the interview (from behind mirrors) or watch films of the interview.
Disadvantages
1. 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.
Minigroups
Minigroups consist of a moderator and 4 and 5 respondents rather than the 8 to 12 used in most focus groups. They are used when the issue being investigated requires more extensive probing than is possible in a larger group.
Minigroups do not allow the collection of a confidential or highly sensitive data as might be possible in an individual depth interview. However, they do allow the researcher to obtain substantially depth of response on the topics that are covered. Further the intimacy of the small group often allows discussion of quite sensitive issues.
The advantages and disadvantages of minigroups are similar to those of standard focus groups, but on a smaller scale.
In principle, these interviews are the same as the previous ones, excepting that they are conducted in groups rather than for individuals.
This method is therefore less expensive and less time consuming than the depth interviews.
This method is advantageous because it gives excellent leads to consumer attitudes that no other method can give.
Another advantage of this method is that each respondent receives stimulation for responding from his group members and so the interviewer need not prompt the interviewee to answer.
The disadvantage here is that one or two members could dominate in the group and others might not get a chance to answer. This would again make it an individual effort.
5. Depth interviews –
Depth interviews are frequently used by marketing researchers when direct questioning is impractical, more costly, or less accurate. These techniques generally referred to as Qualitative research.
Depth Interviews - (unstructured one-on-one interviews intended to discover deep seated motivations) --
One-on-one interviews that probe and elicit detailed answers to questions, often using clinical nondirective techniques to uncover hidden motivations. Thus, psychologists and people with Doctorates in Marketing (which is a combination of applied psychology and applied economics) are often called upon to conduct Depth Interviews, as well as Nominal Grouping Sessions.
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. 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.
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.
Individual depth interviews uses three questioning techniques namely:
1. 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 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 requires respondents to describe the opposites of the product/ activity of interest or a specific attribute of the product/ activity.
Individual depth interviews have been found to generate more and higher quality ideas on a per respondent basis than either focus or minigroups. They are particularly appropriate when:
2. The subject matter under discussion is likely to be of a highly confidential nature (e. g. personal investment)
3. The subject matter is of an emotionally charged or embarrassing nature;
4. Certain strong, socially acceptable norms exist (e.g. baby feeding) and the need to conform in a group discussion may influence responses;
5. 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)
6. Projective Techniques
Projective Techniques are based on the theory that the description of vague objects requires interpretation and
this interpretation can only be based on the individual’s own background, attitudes, and values. The more vague or ambiguous the object to be described the move one must reveal of oneself in order to complete the description.
The following general categories of projective techniques are described: association, completion, construction
and expression.
1. Association Techniques
Association techniques require the subject to respond to the presentation of a stimulus with the first things that come to mind.
a. Word association: The word association technique requires the respondent to give the first word or
thought that comes to mind after researcher presents a word or phrase. In free association only the first word or thought is required.
One of the oldest and simplest projection techniques.
Respondents are presented with a number of different words, one at a time. After each word, they are asked to give the first word that comes to mind.
The assumption here is that through free words, the respondents will indicate their inner feelings about the subject.
Responses are timed so that those responses that respondents “reason out” are identified and taken into account in the analysis. The time limit is usually 5 seconds.
The usual way of constructing such a test is to choose many stimulating and “neutral” words. The words are read out to the respondent one at a time, and the interviewer essentially records the “first word” association by the respondent.
Respondents should not be asked to write their responses because then the interviewer will not know if the responses were spontaneous or whether the respondent took time to think out the responses.
An example of such a test is: who would eat a lot of oatmeal? The first response is “athletes”. This means that the respondent feels that the product is more suited for sportspersons. More words on the same topic will reveal more about the respondent’s attitude about the product.
While analyzing the results of word-association tests, responses are arranged along such lines as “favorable - unfavorable” and “pleasant – unpleasant”.
b. Successive word association: In successive word association, the respondent is asked to give a series
of words or thoughts that occur after hearing a given word. The respondent is generally read a number of relatively neutral terms to establish the technique. Then the words of interest to the researcher are presented, each separated by several neutral terms. The order of presentation of the key words is randomized to prevent any position or order bias from affecting the results. The most common
approach to analyzing the resulting data is to analyze the frequency with a particular word or category or word is given in response to the word of interest to the researcher.
Word association techniques are used in testing potential brand names and occasionally for measuring attitudes about particular products, product attributes, brands, packages or advertisements.
2. Completion Techniques
This technique requires the respondent to complete an incomplete stimulus. Two types of completion are of interest to marketing researchers- sentence completion and story completion.
a. Sentence completion, as the name implies, involves requiring the respondent to complete a sentence. In most sentence completion tests the respondents are asked to complete the sentence with a phrase. Generally they are told to use the first thought that comes to their mind or “anything that makes sense”. Because the individual is not required directly to associate himself or herself with the answer conscious or subconscious defenses are more likely to be relaxed and allow a more revealing answer.
The respondent is given a number of incomplete sentences and asked to complete them. The rule here too, is that respondent must fill in the first thought that comes to mind. Responses are timed.
Here the interviewer gets more information than the word association technique.
However, it is difficult to disguise the motive of the study from the respondent, who is usually able to diagnose the investigator’s purpose of study.
For example, “a man who reads Sportstar is ---.”
The sentences can be worded in either first or third person. No evidence suggests that one of these approaches could be better than the other.
b. Story completion is an expanded version of sentence completion. As the name suggests part of a story is told and the respondent is asked to complete it.
Respondents are given a half-completed story. This is enough to draw their attention to a particular issue, but the ending is left vague, so that responses can be varied.
This technique is very versatile and has numerous applications to marketing problems.
The findings about products/ services give companies inputs to determine advertising and promotional themes and product characteristics.
3. Construction Techniques
This technique requires the respondent to produce or construct something generally a story, dialogue, or description. They are similar to completion techniques except that less initial structure is provided.
a. Third- person techniques allow the respondent to project attitudes onto some vague third person. This third person is generally “an average woman”, “your neighbors”, “the guys where you work”, “most doctors” or the like. Thus instead of asking the respondent why he or she did something or what he or she thinks about
something the researcher asks what friends, neighbors or the average person thinks about the issue. b. Picture response, another useful construction technique, involves using pictures to elicit stories. These pictures are usually relatively vague, so that the respondent must use his or her imagination to describe what is occurring.
These are similar to story completion method, except that here pictures are used as the stimuli. The two main methods used here are
i. Thematic Apperception Tests (TAT) ii. Cartoon method
i. TAT
Clinical psychologists have long used this method.
Here the respondent is shown many ambiguous pictures and he is asked to spin stories about them. The interviewer may ask questions to help the respondent to think. For example “what is happening
here?” makes the answer focused towards an action. Or “which one is the aggressor?” makes the respondent think about the picture as one of aggression. The reason that respondents must be asked such prompting questions is that the pictures are very abstract and general and as such are open to very broad and irreverent interpretations. So some amount of focus is needed to channel the respondent’s thinking.
Each subject in the pictures is a medium through which the respondent projects his feelings, ideas, emotions and attitudes. The respondent attributes these feelings to the characters because he sees in the picture something related to himself.
Responses differ widely and analysis depends upon the ambiguity of the picture, the extent to which the respondent is able to guess the conclusions and the vagueness of the support questions asked by the interviewer.
ii. Cartoon Tests
They are a version or modification of the TAT, but they are simpler to administer and analyze. Cartoon Characters are shown in a specific situation pertinent to a problem. One or more “balloons” indicating the conversation of the characters is left open. The respondent has to then fill these balloons and then analyzed. Instead of having the bubble show replies or comments, it can be drawn to indicate the unspoken thoughts of one or more of the characters. This device allows the respondent to avoid any restraints that might be felt against having even a carton character speak as opposed to think certain thoughts.
c. Fantasy scenario requires the respondent to make up a fantasy about the product or brand.
d. Personification asks the respondent to create a personally for the products or brands. With the pictures and words technique, the subjects are given a number of words and pictures and are asked to choose those they associate with a brand or product and to explain their choice.
This allows the researcher to discover the more emotional responses to brands and imagery. The product or brand becomes a person (or vice versa)
• Helps bring brands to life
• Feeling, thought, character etc (like brand values)
• Or respondents can project themselves into the roles of user and non-users
• Making up eulogies or obituaries can help
4. Expressive Techniques
a. Role-playing is the only expressive technique utilized to any extent by marketing researchers. In role playing the consumer is asked to assume the role or behavior of an object or another person, such as a sales
representative for a particular department store. The role-playing customer can then be asked to try to sell a given product to a number of different “consumers” who raise varying objections. The means by which the role player attempts to overcome these objections can reveal a great deal about his or her attitudes. Another
version of the technique involves studying the role-player’s attitudes on what type of people ”should” shop at the store in question.
b. 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
1. 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. 4. Disadvantages of Projective Techniques
5. Suffer from many of the disadvantages of unstructured direct techniques, but to a greater extent. 6. Require highly trained interviewers.
7. Skilled interpreters are also required to analyze the responses. 8. There is a serious risk of interpretation bias.
9. They tend to be expensive.
10. May require respondents to engage in unusual behavior. 11. Guidelines for Using Projective Techniques
12. Projective techniques should be used because the required information cannot be accurately obtained by direct methods.
13. Projective techniques should be used for exploratory research to gain initial insights and understanding.
14. Given their complexity, projective techniques should not be used naively.
Disadvantages of Projective Techniques
1. 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 Techniques
1. 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.
B. Method of collecting secondary data
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Sources of Secondary Data
Sources of Secondary Data
Government Agencies
Trade and Industry Associations
Marketing Research Firms
Commercial Publications
News Media
Internal Corporate Information
3
3
Secondary data were collected for some purpose other than helping to solve the current problem. Where as primary data are collected expressly to help solve, the problem at hand.
Secondary data is data which has been collected by individuals or agencies for purposes other than those of our particular research study. For example, if a government department has conducted a survey of, say, family food expenditures, then a food manufacturer might use this data in the organisation's evaluations of the total potential market for a new product.
No marketing research study should be undertaken without a prior search of secondary sources (also termed desk research). There are several grounds for making such a bold statement.
Secondary data may be available which is entirely appropriate and wholly adequate to draw conclusions and answer the question or solve the problem. Sometimes primary data collection simply is not necessary. It is far cheaper to collect secondary data than to obtain primary data. For the same level of research budget a
thorough examination of secondary sources can yield a great deal more information than can be had through a primary data collection exercise.
The time involved in searching secondary sources is much less than that needed to complete primary data collection. Secondary sources of information can yield more accurate data than that obtained through primary research. This is not always true but where a government or international agency has undertaken a large scale survey, or even a census, this is likely to yield far more accurate results than custom designed and executed surveys when these are based on relatively small sample sizes.
It should not be forgotten that secondary data can play a substantial role in the exploratory phase of the research when the task at hand is to define the research problem and to generate hypotheses. The assembly and analysis of secondary data almost invariably improves the researcher's understanding of the marketing problem, the various lines of inquiry that could or should be followed and the alternative courses of action which might be pursued.
Secondary sources help define the population. Secondary data can be extremely useful both in defining the population and in structuring the sample to be taken. For instance, government statistics on a country's agriculture will help decide how to stratify a sample and, once sample estimates have been calculated, these can be used to project those estimates to the population.
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. Organizations frequently overlook this valuable resource by not beginning their search of secondary sources with an internal audit of sales invoices, orders, inquiries about products not stocked, returns from customers and sales force customer calling sheets. 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. Such data has many uses in marketing research including allowing measurement of the efficiency of marketing operations. It can also be used to estimate the costs attached to new products under consideration, of particular utilisation (in production, storage and transportation) at which an organization’s unit costs begin to fall.
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. Good data on transport operations enables the enterprise to perform trade-off analysis and thereby establish whether it makes economic sense to own or hire vehicles, or the point at which a balance of the two gives the best financial outcome.
Storage data: The rate of stockturn, stock handling costs, assessing the efficiency of certain marketing
operations and the efficiency of the marketing system as a whole. More sophisticated accounting systems assign costs to the cubic space occupied by individual products and the time period over which the product occupies the space. These systems can be further refined so that the profitability per unit, and rate of sale, are added. In this way, the direct product profitability can be calculated.
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. Too often, the researcher has secretly (sometimes subconsciously) concluded from the outset that his/her topic of study is so unique or specialised that a research of secondary sources is futile. Consequently, only a specified search is made with no real expectation of sources. Cursory researches become a self-fulfilling prophecy.
Large numbers of organizations provide marketing information, including national and local government agencies, quasi-government agencies, trade associations, universities, research institutes, financial institutions, specialist suppliers of secondary marketing data and professional marketing research enterprises. Dillon et al further advice that searches of printed sources of secondary data begin with referral texts such as directories, indexes, handbooks and guides. These sorts of publications rarely provide the data in which the researcher is interested but serve in helping him/her locate potentially useful data sources.
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 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 Published market research reports and other publications are available from a wide range of organisations 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 organization 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 four:
Select the Measurement Technique:
A) Questionnaires Design B) Attitude scales,
A) Questionnaires
Questionnaire construction
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.
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Questionnaire Design
Questionnaire Design
3
3
Open-Ended
Question
Open-Ended
Question
Closed-Ended
Question
Closed-Ended
Question
Scaled-Response
Question
Scaled-Response
Question
An interview question that
encourages an answer phrased in
respondent’s own words.
An interview question that
encourages an answer phrased in
respondent’s own words.
An interview question that asks
the respondent to make a selection
from a limited list of responses.
An interview question that asks
the respondent to make a selection
from a limited list of responses.
A closed
- ended question
designed to measure the intensity
of a respondent’s answer.
A closed
- ended question
designed to measure the intensity
of a respondent’s answer.
STRUCTURED Vs UNSTRUCTURED DATA COLLECTION
The data collection through questionnaires can be done through four ways as follows; 1. Structured disguised
2. Structured - nondisguised 3. Non-structured - disguised 4. Non structured - nondisguised
Note : non disguised data collection is also called as direct method & disguised is also called as indirect
method .
Structured data collection
A structured data collection is a formal list of questions framed so as to get the facts. The interviewer asks the questions strictly in accordance with pre- arranged order. For e.g. this method can be used when the
