Intro to Marketing Research

Short Answer Questions

1. Discuss the role of Observation as a marketing research method and list the type of observable
phenomena, giving an example of each.
• In business research, observation is a systematic process of recording actual behavioral
patterns of people, objects, and events as they happen. Observational studies gather a wide
variety of information about behavior.
• Eight kinds of observable phenomena are listed as below:

(1) Physical activities - shopping patterns or television viewing; a worker’s movement during an
assembly process

(2) Verbal behavior - sales conversations

(3) Expressive behavior - facial expressions

(4) Spatial relations and locations - traffic patterns; proximity of managers’ offices to production
floor

(5) Temporal patterns - amount of time spent shopping; time it takes to execute a stock
purchase order

(6) Physical objects - amount of newspaper recycled

(7) Verbal and pictorial records - content of advertisements; number of illustrations in a training
booklet

2. With respect to developing a measurement instrument, such as survey, discuss the differences
between reliability and validity. Discuss whether an instrument can be valid, but not reliable.
How about reliable, but not valid.
• The differences between reliability and validity can be illustrated by the rifle targets in
figure.
• Suppose someone fires an equal number of rounds with a century-old rifle and a modern
rifle. The shots from the older gun are considerably scattered, but those from the newer gun
are closely clustered. The variability of the old rifle compared with that of the new one
indicates it is less reliable. The target on the right illustrates the concept of a systematic bias
influencing validity.
• The shots fired with the new rifle are reliable because they show little variance. However,
because the person firing the gun is not very good at it, they all miss the target in much the
same way. The shots are reliable, but not valid.
• Only if they were reliable and valid would it be a good idea to test by having him shoot an
apple off your head!
4. Compare and contrast the four different levels of scale measurement.
• The four levels or types of scale measurement are:

(1) Nominal scale - represents the most elementary level of measurement. It assigns a value to
an object for identification or classification purposes. The value can be a number, but does not
have to be, because no quantities are being represented.

(2) Ordinal scale - ranking scales allowing things to be arranged based on how much of some
concepts they possess. They have nominal properties, but they also allow things to be arranged
based on how much of some concept they possess.

(3) Interval scale - has both nominal and ordinal properties, but also captures information about
differences in quantities of a concept. Unlike ordinal scales, it captures relative quantities in the
form of distances between observations.

(4) Ratio scale - represents the highest form of measurement in that is has all the properties of an
interval scale with the additional attribute representing absolute quantities. Interval scales
represent only relative meaning whereas ratio scales represent absolute meaning. Therefore,
zero has meaning in that it represents an absence of some concept.

5. Name and describe the types of probability sampling.

• Probability sampling techniques are:

(1) Simple random sampling - assures each element in the population of an equal chance of being
included in the sample.

(2) Systematic sampling - a starting point is selected by a random process and then every nth
number on the list is selected.

(3) Stratified sampling - simple random subsamples that are more or less equal on some
characteristic are drawn from within each stratum of the population.

(4) Cluster sampling - the primary sampling unit is not the individual element in the population
but a large cluster of elements and clusters are selected randomly.

(5) Multistage area sampling - involves using a combination of two or more probability sampling
techniques.
7. Explain the difference between random sampling error and systematic (non-sampling) error.
Which term best explains errors due to sample selection problems, such as sampling frame
errors?

(Compare and contrast random sampling and systematic (nonsampling) errors.)

• Random sampling error is the difference between the sample result and the result of an
accurate census. It occurs because of chance variations in the selection of sampling units.
The sampling units, even if properly selected according to sampling theory, may not
perfectly represent the population because of chance variation. Random sampling error is a
function of sample size, and as sample size increases, random sampling error decreases.
• Systematic (nonsampling) errors result from non-sampling factors, primarily the nature of a
study’s design and the correctness of execution. These errors are systematic in some way
and not due to chance fluctuations. Errors due to sample selection problems are non-
sampling errors and should not be classified as random sampling errors.

8. List and describe four different types of attitudinal scales that you could use in constructing a
survey.

(Produce a scale that measures an attitudinal concept.)

• Category scale: A rating scale that consists of several response categories, often providing
respondents with alternatives to indicate positions on a continuum.
• Likert scale: A measure of attitudes designed to allow respondents to rate how strongly they
agree or disagree with carefully constructed statements, ranging from very positive to very
negative attitudes toward some object.
• Semantic differential: A measure of attitudes that consists of a series of seven-point rating
scales that use bipolar adjectives to anchor the beginning and end of each scale.
• Constant-sum scale: A measure of attitudes in which respondents are asked to divide a
constant sum to indicate the relative importance of attributes; respondents often sort cards,
but the task may also be a rating task.
• Graphic rating scale: A measure of attitude that allows respondents to rate an object by
choosing any point along a graphic continuum.

9. Describe an application scenario for using observation research and then discuss the ethical
considerations for/when observing humans.

(Discuss the ethical issues particular to research using observation. What should a researcher
consider when collecting observational data?)

• Observation methods introduce a number of ethical issues. Hidden observation raises the
issue of the respondent’s right to privacy. If the researcher obtains permission to observe
someone, the subject may not act naturally. So, at times there is a strong temptation to
 observe without obtaining consent or gaining input from an IRB (Institutional Review Board).
A researcher can ask him- or herself these questions when considering using observation:

(1) Is the behavior being observed commonly performed in public where it is expected that
others can observe the behavior?

(2) Is the behavior performed in a setting in which the anonymity of the person being observed
is assured (meaning there is no way to identify individuals)?

(3) Has the person agreed to be observed?

• Also, some might see contrived observation as unethical based on the notion of
entrapment, which means to deceive or trick into difficulty. That is clearly abusive.
However, if no possibility of harm exists, then the researcher can likely proceed, although
this particular instance should be done under the auspices of an IRB.

10. What are the advantages and disadvantages of using self-administered, Internet surveys?
• Advantages:
o Speed of data collection
o Geographic flexibility
o Versatility of questioning
o Questionnaire length (customized)
o Item non-response rate (Software can assure none)
o Degree of interviewer influence on answers (none)
o Cost (Low)
o Special features (Streaming media software allows use of graphics and animation)
• Disadvantages:
o Possibility for respondent misunderstanding (High)
o Ease of callback or follow-up (Difficult, unless e-mail address is known)