Introduction to Marketing Research By Sanjay Kumar

Redefining Marketing Research

The American Marketing Association (AMA) redefined Marketing Research as:

The function which links the consumer, the customer, and public to the marketer through INFORMATION

Redefining Marketing Research to identify and Used

define market opportunities and problems Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process

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.

A Classification of Marketing Research

Fig 1.1

Marketing Research

Problem Identification Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research

Problem Solving Research

Segmentation Research Product Research Promotion Research Distribution Research

Marketing Research Process

Step 1: Problem Definition Step 2: Development of an Approach to the Problem Step 3: Research Design Formulation Step 4: Fieldwork or Data Collection Step 5: Data Preparation and Analysis Step 6: Report Preparation and Presentation

The Role of Marketing Fig 1.2 Research

Customer Groups Consumers Employees Shareholders Suppliers Controllable Marketing Variables Product Pricing Promotion Distribution Assessing Information Needs Providing Information Marketing Decision Making Uncontrollable Environmental Factors Economy Technology Laws & Regulations Social & Cultural Factors Political Factors

Marketing Research

Marketing Managers Market Segmentation Target Market Selection Marketing Programs Performance & Control

The Dept. Store Project

The following information was solicited:
1. Familiarity with the ten department stores. 2. Frequency with which household members shopped at each of the ten stores. 3. Relative importance attached to each of the eight factors of the choice criteria. 4. Evaluation of the ten stores on each of the eight factors of the choice criteria. 5. Preference ratings for each store. 6. Rankings of the ten stores (from most preferred to least preferred). 7. Degree of agreement with 21 lifestyle statements. 8. Standard demographic characteristics (age, education, etc.) 9. Name, address, and telephone number.

Research Design

A Classification of Marketing Research Designs Fig. 3.1

Research Design

Exploratory Research Design

Conclusive Research Design

Descriptive Research

Causal Research

Cross-Sectional Design

Longitudinal Design

Single CrossSectional Design

Multiple CrossSectional Design

Potential Sources of Error in Research Designs Fig. 3.2

Total Error Random Sampling Error Non-sampling Error

Response Error

Non-response Error

Researcher Error
Surrogate Information Error Measurement Error Population Definition Error Sampling Frame Error Data Analysis Error

Interviewer Error
Respondent Selection Error Questioning Error Recording Error Cheating Error

Respondent Error
Inability Error Unwillingness Error

Exploratory Research Design: Secondary Data

A Classification of Fig. 4.1 Secondary Data

Secondary Data

Internal

External

Ready to Use

Requires Further Processing

Published Materials

Computerized Databases

Syndicated Services

A Classification of Published Secondary Sources Fig. 4.2

Published Secondary Data

General Business Sources

Government Sources

Guides

Directories

Indexes

Statistical Data

Census Data

Other Government Publications

A Classification of Computerized Databases

Fig. 4.3 Computerized Databases

Online

Internet

Off-Line

Bibliographic Databases

Numeric Databases

Full-Text Databases

Directory Databases

SpecialPurpose Databases

A Classification of Syndicated Fig. 4.4 Services

Unit of Measuremen t Households/ Consumers

Institutions

Syndicated Services: Fig. 4.4 cont. Consumers Households /

Consumers Panels Electronic scanner services

Purchase

Media

Surveys

Volume Scanner Diary Scanner Diary Tracking Data Panels Panels with Cable TV Advertising Evaluation

Psychographic General & Lifestyles

A Classification of International Sources Fig. 4.5

International Secondary Data

Domestic Organizations in the United States

International Organizations in the United States

Organizations in Foreign Countries

Government Nongovernment Sources Sources

International Governments Organizations

Trade Associations

Exploratory Research Design: Qualitative Research

A Classification of Marketing Research Data Fig. 5.1

Marketing Research Data

Secondary Data

Primary Data

Qualitative Data Descriptive Survey Data Observational and Other

Quantitative Data Causal Experiment al Data

A Classification of Qualitative Research Procedures Fig. 5.2

Qualitative Research Procedures

Direct (Non disguised)

Indirect (Disguised)

Focus Groups

Depth Interviews

Projective Techniques

Association Techniques

Completion Techniques

Construction Techniques

Expressive Techniques

Completion Techniques
In Sentence completion, respondents are given incomplete sentences and asked to complete them. Generally, they are asked to use the first word or phrase that comes to mind. A person who shops at Big Bazaar is ______________________ A person who receives a gift certificate good for Videocon Gift vocher would be __________________________________ Kelloggs corn flakes is most liked by _________________________ When I think of shopping in a department store, I ________ A variation of sentence completion is paragraph completion, in which the respondent completes a paragraph beginning with the stimulus phrase.

Completion Techniques
In story completion, respondents are given part of a story enough to direct attention to a particular topic but not to hint at the ending. They are required to give the conclusion in their own words.

Construction Techniques
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. 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.

Expressive Techniques
In expressive techniques, respondents are presented with a verbal or visual situation and asked to relate the feelings and attitudes of other people to the situation. 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.

Descriptive Research Design: Survey and Observation

A Classification of Survey Fig. 6.1 Methods Survey

Methods

Telephone

Personal

Mail

Electronic

In-Home

Mall Intercept

ComputerAssisted Personal Interviewing Mail Interview

E-mail

Internet

Traditional Telephone

ComputerAssisted Telephone Interviewing

Mail Panel

A Classification of Observation Methods Fig. 6.3

Classifying Observation Methods

Observation Methods

Personal Observation

Mechanical Observation

Audit

Content Analysis

Trace Analysis

Causal Research Design: Experimentation

Experimental Design
An experimental design is a set of procedures specifying
the test units and how these units are to be divided into homogeneous subsamples, what independent variables or treatments are to be manipulated, what dependent variables are to be measured, and how the extraneous variables are to be controlled.

Validity in Experimentation
Internal validity refers to whether the manipulation of the independent variables or treatments actually caused the observed effects on the dependent variables. Control of extraneous variables is a necessary condition for establishing internal validity. External validity refers to whether the cause-andeffect relationships found in the experiment can be generalized. To what populations, settings, times, independent variables and dependent variables can the results be projected?

Extraneous Variables
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.

Extraneous Variables
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. Matching involves comparing test units on a set of key background variables before assigning them to the treatment conditions. Statistical control involves measuring the extraneous variables and adjusting for their effects through statistical analysis. Design control involves the use of experiments designed to control specific extraneous variables.

A Classification of Experimental Designs Figure 7.1

Experimental Designs

Pre-experimental One-Shot Case Study One Group PretestPosttest Static Group

True Experiment al Pretest-Posttest Control Group Posttest: Only Control Group Solomon FourGroup

Quasi Experimental Time Series Multiple Time Series

Statistical Randomize d Blocks Latin Square Factorial Design

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: CG: X 02 01

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: CG: R R 01 03 X 04 02

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). Selection bias is eliminated by randomization. The other extraneous effects are controlled as follows: 02 01= TE + H + MA + MT + IT + I + SR + MO 04 03= H + MA + MT + I + SR + MO = EV (Extraneous Variables) The experimental result is obtained by: (02 - 01) - (04 - 03) = TE + IT Interactive testing effect is not controlled.

Posttest-Only Control Group Design

EG : CG : R R X 01 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.

Quasi-Experimental Designs: Time Series Design

01 02 03 04 05 X 06 07 08 09 010

There is no randomization of test units to treatments. The timing of treatment presentation, as well as which test units are exposed to the treatment, may not be within the researcher's control.

Multiple Time Series Design

EG : 01 02 03 04 05 CG : 01 02 03 04 05 X 06 07 08 09 010 06 07 08 09 010

If the control group is carefully selected, this design can be an improvement over the simple time series experiment. Can test the treatment effect twice: against the pretreatment measurements in the experimental group and against the control group.

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 designs are the randomized block design, the Latin square design, and the factorial design.

Randomized Block Design

Is useful when there is only one major external variable, such as store size, that might influence the dependent variable. The test units are blocked, or grouped, on the basis of the external variable. By blocking, the researcher ensures that the various experimental and control groups are matched closely on the external variable.

Randomized Block Design

Table 7.4

Block Store Commercial Number Patronage 1 2 3 4 Heavy Medium Low None

Treatment Groups Commercial Commercial A A A A A B B B B B C C C C C

Latin Square Design

Allows the researcher to statistically control two noninteracting external variables as well as to manipulate the independent variable. Each external or blocking variable is divided into an equal number of blocks, or levels. The independent variable is also divided into the same number of levels. A Latin square is conceptualized as a table (see Table 7.5), with the rows and columns representing the blocks in the two external variables. The levels of the independent variable are assigned to the cells in the table. The assignment rule is that each level of the independent variable should appear only once in each row and each column, as shown in Table 7.5.

Table 7.5

Latin Square Design

Interest in the Store

Store Patronage Low Heavy Medium A Low and none B

High B C A

Medium A B C C

Factorial Design
Is used to measure the effects of two or more independent variables at various levels. A factorial design may also be conceptualized as a table. In a two-factor design, each level of one variable represents a row and each level of another variable represents a column.

Table 7.6

Factorial Design

Amount of Store Information Low Medium High

Amount of Humor No Medium High Humor Humor Humor A D G B E H C F I

Laboratory versus Field Table 7.7 Experiments

Factor
Environment Control Reactive Error Demand Artifacts Internal Validity External Validity Time Number of Units Ease of Implementation Cost High

Laboratory Field
Artificial High High High Low Short Small High Long Large Low Low High Low Realistic Low Low Low High

Limitations of Experimentation
Experiments can be time consuming, particularly if the researcher is interested in measuring the longterm 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.

Measurement and Scaling: Fundamentals and Comparative Scaling

Primary Scales of Scale Figure 8.1 Measurement

Nominal
Numbers Assigned to Runners
Finish
7 8 3

Ordinal

Rank Order of Winners

Third place Second place 9.1 First place 9.6

Finish

Interval

Performance Rating on a 0 to 10 Scale

8.2

Ratio

Time to Finish, in

15.2

14.1

13.4

Primary Scales of Table 8.1 Measurement

Sca le Nomina l Ba sic Com m on Ma rke ting Pe rm issible Sta tistics Cha ra cte ristics Ex am ple s Ex a m ple s Descriptive Inferential Numbers identify Social Security Brand nos., store Percentages, Chi-square, & classify objects nos., numbering types mode binomial test of football players Nos. indicate the Quality rankings, Preference Percentile, Rank-order relative positions rankings of teamsrankings, market median correlation, of objects but not in a tournament position, social Friedman the magnitude of class ANOVA differences between them Differences Temperature Attitudes, Range, mean, Productbetween objects (Fahrenheit) opinions, index standard moment Zero point is fixed, Length, weight Age, sales, Geometric Coefficient of ratios of scale income, costs mean, harmonic variation values can be mean compared

Ordina l

Inte rva l Ra tio

Measurement and Scaling

Measurement means assigning numbers or other symbols to characteristics of objects according to certain prespecified rules. One-to-one correspondence between the numbers and the characteristics being measured. The rules for assigning numbers should be standardized and applied uniformly. Rules must not change over objects or time.

A Classification of Scaling Figure 8.2 Techniques

Scaling Techniques

Comparative Scales

Noncomparative Scales

Paired Rank Comparison Order

Constant Q-Sort and Sum Other Procedure s Likert

Continuous Itemized Rating ScalesRating Scales

Semantic Differential

Stapel

Measurement and Scaling: No comparative Scaling Techniques

Noncomparative Scaling Techniques

Respondents evaluate only one object at a time, and for this reason noncomparative scales are often referred to as monadic scales. Noncomparative techniques consist of continuous and itemized rating scales.

Continuous Rating Scale

Respondents rate the objects by placing a mark at the appropriate position on a line that runs from one extreme of the criterion variable to the other. The form of the continuous scale may vary considerably.
How would you rate Bigbazaar as a department store? Version 1 Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - Version 2 Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - 0 10 20 30 40 50 60 Version 3 Very bad Neither good Very good nor bad Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - -0 10 20 30 40 50 60 - - - - - - - - - - - - - - - Probably the best

- - - - - - - - - - - - -- - Probably the best 70 80 90 100

- - - - - - - - - - - - - - - -Probably the best 70 80 90 100

Itemized Rating Scales

The respondents are provided with a scale that has a number or brief description associated with each category. The categories are ordered in terms of scale position, and the respondents are required to select the specified category that best describes the object being rated. The commonly used itemized rating scales are the Likert, semantic differential, and Stapel scales.

Likert Scale
The Likert scale requires the respondents to indicate a degree of agreement or disagreement with each of a series of statements about the stimulus objects.
Strongly disagree disagree Disagree Neither agree nor Agree agree Strongly

1. Bigbazaar sells high quality merchandise. 2. Bigbazaar has poor in-store service. 3. I like to shop at Bigbazaar. 1 2

1 1 3X

2X 2X 4

3 3 5

4 4

5 5

The analysis can be conducted on an item-by-item basis (profile analysis), or a total (summated) score can be calculated. When arriving at a total score, the categories assigned to the negative statements by the respondents should be scored by reversing the scale.

Semantic Differential Scale

The semantic differential is a seven-point rating scale with end points associated with bipolar labels that have semantic meaning.

Bigbazaar IS: Powerful --:--:--:--:-X-:--:--: Weak Unreliable --:--:--:--:--:-X-:--: Reliable Modern --:--:--:--:--:--:-X-: Old-fashioned

The negative adjective or phrase sometimes appears at the left side of the scale and sometimes at the right. This controls the tendency of some respondents, particularly those with very positive or very negative attitudes, to mark the right- or left-hand sides without reading the labels. Individual items on a semantic differential scale may be scored on either a -3 to +3 or a 1 to 7 scale.

A Semantic Differential Scale for Measuring SelfConcepts, Person Concepts, and Product Concepts
1) Rugged 2) Excitable 3) Uncomfortable 4) Dominating 5) Thrifty 6) Pleasant 7) Contemporary 8) Organized 9) Rational 10) Youthful :---:---:---:---:---:---:---: Delicate :---:---:---:---:---:---:---: Calm :---:---:---:---:---:---:---: Comfortable :---:---:---:---:---:---:---: Submissive :---:---:---:---:---:---:---: Indulgent :---:---:---:---:---:---:---: Unpleasant :---:---:---:---:---:---:---: Obsolete :---:---:---:---:---:---:---: Unorganized :---:---:---:---:---:---:---: Emotional :---:---:---:---:---:---:---: Mature

Stapel Scale
The Stapel scale is a unipolar rating scale with ten categories numbered from -5 to +5, without a neutral point (zero). This scale is usually presented vertically.
Bigbazaar +5 +5 +4 +4 +3 +3 +2 +2X +1 +1 HIGH QUALITY -1 -1 -2 -2 -3 -3 -4X -4 -5 -5

POOR SERVICE

The data obtained by using a Stapel scale can be analyzed in the same way as semantic differential data.

Questionnaire & Form Design

Questionnaire Definition
A questionnaire is a formalized set of questions for obtaining information from respondents.

Choosing Question Structure Unstructured Questions

Unstructured questions are open-ended questions that respondents answer in their own words. Do you intend to buy a new car within the next six months? __________________________________

Choosing Question Structure Structured Questions

Structured questions specify the set of response alternatives and the response format. A structured question may be multiple-choice, dichotomous, or a scale.

Choosing Question Structure Multiple-Choice Questions

In multiple-choice questions, the researcher provides a choice of answers and respondents are asked to select one or more of the alternatives given. Do you intend to buy a new car within the next six months? ____ Definitely will not buy ____ Probably will not buy ____ Undecided ____ Probably will buy ____ Definitely will buy ____ Other (please specify)

Choosing Question Structure Dichotomous Questions

A dichotomous question has only two response alternatives: yes or no, agree or disagree, and so on. Often, the two alternatives of interest are supplemented by a neutral alternative, such as no opinion, don't know, both, or none. Do you intend to buy a new car within the next six months? _____ Yes _____ No _____ Don't know

Choosing Question Structure Scales

Scales were discussed in detail in Chapters 8 and 9: Do you intend to buy a new car within the next six months?
Definitely Definitely will not buy will buy 1 Probably will not buy 2 3 Undecided Probably will buy 4 5

Choosing Question Wording Define the Issue Define the issue in terms of who, what, when, where, why, and way (the six Ws). Who, what, when, and where are particularly important. Which brand of shampoo do you use? (Incorrect)

Which brand or brands of shampoo have you personally used at home during the last month? In case of more than one brand, please list all the brands that apply. (Correct)

Choosing Question Wording

The W's
Who

Defining the Question

The Respondent It is not clear whether this question relates to the individual respondent or the respondent's total household. The Brand of Shampoo It is unclear how the respondent is to answer this question if more than one brand is used. Unclear The time frame is not specified in this question. The respondent could interpret it as meaning the shampoo used this morning, this week, or over the past year. At home, at the gym, on the road?

What

When

Where

Choosing Question Wording Use Ordinary Words

Do you think the distribution of soft drinks is adequate? (Incorrect) Do you think soft drinks are readily available when you want to buy them? (Correct)

Choosing Question Wording Use Unambiguous Words

In a typical month, how often do you shop in department stores? _____ Never _____ Occasionally _____ Sometimes _____ Often _____ Regularly (Incorrect) In a typical month, how often do you shop in department stores? _____ Less than once _____ 1 or 2 times _____ 3 or 4 times _____ More than 4 times (Correct)

Determining the Order of Questions

Opening Questions The opening questions should be interesting, simple, and non-threatening. Type of Information As a general guideline, basic information should be obtained first, followed by classification, and, finally, identification information. Difficult Questions Difficult questions or questions which are sensitive, embarrassing, complex, or dull, should be placed late in the sequence.

Determining the Order of Questions

Logical Order The following guidelines should be followed for branching questions: The question being branched (the one to which the respondent is being directed) should be placed as close as possible to the question causing the branching. The branching questions should be ordered so that the respondents cannot anticipate what additional information will be required.

Classification of Sampling Techniques Fig. 11.2

Sampling Techniques Nonprobability Sampling Techniques Convenience Judgmental Sampling Sampling Quota Sampling Probability Sampling Techniques Snowball Sampling

Simple Random Sampling

Systematic Sampling

Stratified Sampling

Cluster Other Sampling Techniques Sampling

Convenience Sampling
Convenience sampling attempts to obtain a sample of convenient elements. Often, respondents are selected because they happen to be in the right place at the right time. use of students, and members of social organizations mall intercept interviews without qualifying the respondents department stores using charge account lists people on the street interviews

Judgmental Sampling
Judgmental sampling is a form of convenience sampling in which the population elements are selected based on the judgment of the researcher. test markets purchase engineers selected in industrial marketing research bellwether precincts selected in voting behavior research expert witnesses used in court

Quota Sampling
Quota sampling may be viewed as two-stage restricted judgmental sampling. The first stage consists of developing control categories, or quotas, of population elements. In the second stage, sample elements are selected based on convenience or judgment. Population composition Sample composition Percentage 48 ____ 100 52 Number 480 ____ 1000 520

Control Characteristic Percentage Sex Male 48 Female 52 ____ 100

Snowball Sampling
In snowball sampling, an initial group of respondents is selected, usually at random. After being interviewed, these respondents are asked to identify others who belong to the target population of interest. Subsequent respondents are selected based on the referrals.

Simple Random Sampling

Each element in the population has a known and equal probability of selection. Each possible sample of a given size (n) has a known and equal probability of being the sample actually selected. This implies that every element is selected independently of every other element.

Systematic Sampling
The sample is chosen by selecting a random starting point and then picking every ith element in succession from the sampling frame. The sampling interval, i, is determined by dividing the population size N by the sample size n and rounding to the nearest integer. When the ordering of the elements is related to the characteristic of interest, systematic sampling increases the representativeness of the sample. If the ordering of the elements produces a cyclical pattern, systematic sampling may decrease the representativeness of the sample. For example, there are 100,000 elements in the population and a sample of 1,000 is desired. In this case the sampling interval, i, is 100. A random number between 1 and 100 is selected. If, for example, this number is 23, the sample consists of elements 23, 123, 223, 323, 423, 523, and so on.

Stratified Sampling
A two-step process in which the population is partitioned into subpopulations, or strata. The strata should be mutually exclusive and collectively exhaustive in that every population element should be assigned to one and only one stratum and no population elements should be omitted. Next, elements are selected from each stratum by a random procedure, usually SRS. A major objective of stratified sampling is to increase precision without increasing cost.

Stratified Sampling
The elements within a stratum should be as homogeneous as possible, but the elements in different strata should be as heterogeneous as possible. The stratification variables should also be closely related to the characteristic of interest. Finally, the variables should decrease the cost of the stratification process by being easy to measure and apply. In proportionate stratified sampling, the size of the sample drawn from each stratum is proportionate to the relative size of that stratum in the total population. In disproportionate stratified sampling, the size of the sample from each stratum is proportionate to the relative size of that stratum and to the standard deviation of the distribution of the characteristic of interest among all the elements in that stratum.

Cluster Sampling
The target population is first divided into mutually exclusive and collectively exhaustive subpopulations, or clusters. Then a random sample of clusters is selected, based on a probability sampling technique such as SRS. For each selected cluster, either all the elements are included in the sample (one-stage) or a sample of elements is drawn probabilistically (two-stage). Elements within a cluster should be as heterogeneous as possible, but clusters themselves should be as homogeneous as possible. Ideally, each cluster should be a small-scale representation of the population. In probability proportionate to size sampling, the clusters are sampled with probability proportional to size. In the second stage, the probability of selecting a sampling unit in a selected cluster varies inversely with the size of the cluster.

Types of Cluster Sampling Fig. 11.3

Cluster Sampling One-Stage Sampling Two-Stage Sampling Multistage Sampling

Simple Cluster Sampling

Probability Proportionate to Size Sampling

Fieldwork/Data Collection Fig. 13.1 Process

Selecting Field Workers Training Field Workers Supervising Field Workers Validating Fieldwork Evaluating Field Workers

A Classification of Multivariate Techniques Fig. 14.7 Multivariate Techniques

Dependence Technique One Dependent More Than One Variable Dependent Variable * Cross* Multivariate Tabulation Analysis of * Analysis of Variance Variance and and Covariance Covariance * Multiple * Canonical Regression Correlation * Conjoint * Multiple Analysis Discriminant Analysis Interdependen ce Technique Interobject Variable Similarity Interdependenc e * Factor * Cluster Analysis Analysis * Multidimension al Scaling

A General Procedure for Hypothesis Testing Step 1: Formulate the Hypothesis

A null hypothesis is a statement of the status quo, one of no difference or no effect. If the null hypothesis is not rejected, no changes will be made. An alternative hypothesis is one in which some difference or effect is expected. Accepting the alternative hypothesis will lead to changes in opinions or actions. , , The null hypothesis refers to a specified value of the X population parameter (e.g., ), not a sample statistic (e.g., ).

A General Procedure for Hypothesis Testing Step 1: Formulate the Hypothesis

The test of the null hypothesis is a one-tailed test, because the alternative hypothesis is expressed directionally. If that is not the case, then a two-tailed test would be required, and the hypotheses would be expressed as:

H 0 : = 0.40 H1: 0. 0 4

A General Procedure for Hypothesis Testing Step 3: Choose a Level of Significance

Type I Error Type I error occurs when the sample results lead to the rejection of the null hypothesis when it is in fact true. The probability of type I error ( ) is also called the level of significance. Type II Error Type II error occurs when, based on the sample results, the null hypothesis is not rejected when it is in fact false. The probability of type II error is denoted by . Unlike , which is specified by the researcher, the magnitude of depends on the actual value of the population parameter (proportion).

Probabilities of Type I & Type II Error

Figure 15.4
95% of Total Area

= 0.05
0 = 0.40 Z = 1.645 99% of Total Area Critical Value of Z

Z
= 0.01

= 0.45 Z = -2.33

A Classification of Hypothesis Testing Procedures for Examining Differences Fig. 15.9 Hypothesis Tests
Parametric Tests (Metric Tests) One Sample * t test * Z test Two or More Samples Non-parametric Tests (Nonmetric Tests) One Sample * ChiSquare * KS * Runs * Binomial Independe nt Samples * Chi-Square * MannWhitney * Median Two or More Samples

Independe nt Samples * TwoGroup t test * Z test

Paired Samples * Paired t test

Paired Samples * Sign * Wilcoxon * McNemar * Chi-

Hypothesis Testing Related to Differences

Parametric tests assume that the variables of interest are measured on at least an interval scale. Nonparametric tests assume that the variables are measured on a nominal or ordinal scale. These tests can be further classified based on whether one or two or more samples are involved. The samples are independent if they are drawn randomly from different populations. For the purpose of analysis, data pertaining to different groups of respondents, e.g., males and females, are generally treated as independent samples. The samples are paired when the data for the two samples relate to the same group of respondents.

Chi-square Distribution Figure 15.8

Do Not Reject H0

Reject H0

Critical Value

Report Preparation and Presentation

The Report Preparation and Presentation Process

Fig. 22.1 Problem Definition, Approach, Research Design, and Fieldwork Data Analysis Interpretations, Conclusions, and Recommendations Report Preparation Oral Presentation Reading of the Report by the Client Research Follow-Up

Report Format
X. Problem definition a. Background to the problem b. Statement of the problem X. Approach to the problem XI. Research design a. Type of research design b. Information needs c. Data collection from secondary sources d. Data collection from primary sources e. Scaling techniques f. Questionnaire development and pretesting g. Sampling techniques h. Fieldwork

Report Format
XIII. Data analysis a. Methodology b. Plan of data analysis XIII. Results XIV. Limitations and caveats XV. Conclusions and recommendations XVI. Exhibits a. Questionnaires and forms b. Statistical output c. Lists

Report Writing
Readers. A report should be written for a specific reader or readers: the marketing managers who will use the results. Easy to follow. The report should be easy to follow. It should be structured logically and written clearly. Presentable and professional appearance. The looks of a report are important. Objective. Objectivity is a virtue that should guide report writing. The rule is, "Tell it like it is." Reinforce text with tables and graphs. It is important to reinforce key information in the text with tables, graphs, pictures, maps, and other visual devices. Terse. A report should be terse and concise. Yet, brevity should not be achieved at the expense of completeness.

Guidelines for Tables

Title and number. Every table should have a number (1a) and title (1b). Arrangement of data items. The arrangement of data items in a table should emphasize the most significant aspect of the data. Basis of measurement. The basis or unit of measurement should be clearly stated (3a). Leaders, rulings, spaces. Leaders, dots or hyphens used to lead the eye horizontally, impart uniformity and improve readability (4a). Instead of ruling the table horizontally or vertically, white spaces (4b) are used to set off data items. Skipping lines after different sections of the data can also assist the eye. Horizontal rules (4c) are often used after the headings. Explanations and comments: Headings, stubs, and footnotes. Designations placed over the vertical columns are called headings (5a). Designations placed in the lefthand column are called stubs (5b). Information that cannot be incorporated in the table should be explained by footnotes (5c). Sources of the data. If the data contained in the table are secondary, the source of data should be cited (6a).

U.S. Auto Sales 1997 - 2001

Table 22.1
1 a 3 a 5 a 4 c

1 b

TABLE 22.1 U.S . Autom otive S a le s 1997-2001

4 a 4 b

5 b

M FG GM Ford Chrysle r Honda Toyota Nissa n Othe r* Tota l

1997 4,766,000 4,432,000 2,312,400 940,037 1,230,583 658,000 1,161,980 15,501,000

1998 4,604,000 4,370,000 2,548,900 1,009,600 1,361,025 628,000 1,444,475 15,966,000

Unit S a le s 1999 5,017,000 4,787,000 2,693,000 1,076,893 1,515,366 713,000 1,615,741 17,418,000

2000 4,953,000 4,933,000 2,470,000 1,158,860 1,656,981 744,000 1,901,159 17,817,000

2001 4,898,517 4,661,685 2,196,000 1,207,639 1,787,882 695,640 1,752,637 17,200,000

2 a

6 a

5 c

* - includes all other producers Source: Company Websites

Guidelines for Graphs Geographic and Other Maps

Geographic maps can pertain to countries, states, counties, sales territories, and other divisions. Chapter 21 showed examples of productpositioning.

Guidelines for Graphs Round or Pie Charts

In a pie chart, the area of each section, as a percentage of the total area of the circle, reflects the percentage associated with the value of a specific variable. A pie chart is not useful for displaying relationships over time or relationships among several variables. As a general guideline, a pie chart should not require more than seven sections.

Pie Chart of 1996 U.S. Auto Sales

Fig. 22.2

Guidelines for Graphs Line Charts

A line chart connects a series of data points using continuous lines. This is an attractive way of illustrating trends and changes over time. Several series can be compared on the same chart, and forecasts, interpolations, and extrapolations can be shown.

Line Chart of Total U.S. Auto Sales Fig. 22.3

Units

Year

Guidelines for Graphs Line Charts

A stratum chart is a set of line charts in which the data are successively aggregated over the series. Areas between the line charts display the magnitudes of the relevant variables.

Fig. 22.4

Stratum Chart of Total U.S. Auto Sales

Stratum Chart of Auto Sales by Manufacturer (1997-2001)

20,000,000 18,000,000 16,000,000 Other 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 1997 Nissan Toyota Honda Chrysler Ford GM

1998

1999

2000

2001

Guidelines for Graphs Pictographs

A pictograph uses small pictures or symbols to display the data. Pictographs do not depict results precisely. Hence, caution should be exercised when using them.

Pictograph for 1996 U.S. Auto Sales Fig. 22.5

Pictograph of Auto Sales (2001) Nissan Toyota Manufacturer Honda Chrysler Ford GM
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

Cars Sold

*Each Symbol Equals 1,000,000 Units

Guidelines for Graphs Histograms and Bar Charts

A bar chart displays data in various bars that may be positioned horizontally or vertically. The histogram is a vertical bar chart and in which the height of the bars represents the relative or cumulative frequency of occurrence of a specific variable.

Histogram of 1996 U.S. Auto Sales

Figure 22.6
Histogram of Auto Sales by Manufacturer (2001) 6,000,000 5,000,000 4,000,000

Units

3,000,000 2,000,000 1,000,000 0 GM Ford Chrysler Honda Toyota Nissan Other

Make

Guidelines for Graphs Schematic Figures and Flow Charts

Schematic figures and flow charts take on a number of different forms. They can be used to display the steps or components of a process, as in Figure 22.1. Another useful form of these charts is a classification diagram. Examples of classification charts for classifying secondary data were provided in Chapter 4 (Figs. 4.1 to 4.4). An example of a flow chart for questionnaire design was given in Chapter 10 (Figure 10.2).

Oral Presentation
The key to an effective presentation is preparation. A written script or detailed outline should be prepared following the format of the written report. The presentation must be geared to the audience. The presentation should be rehearsed several times before it is made to the management. Visual aids, such as tables and graphs, should be displayed with a variety of media. It is important to maintain eye contact and interact with the audience during the presentation.

Oral Presentation
Filler words like "uh," "y'know," and "all right," should not be used. The "Tell 'Em" principle is effective for structuring a presentation. Another useful guideline is the "KISS 'Em" principle, which states: Keep It Simple and Straightforward (hence the acronym KISS). Body language should be employed. The speaker should vary the volume, pitch, voice quality, articulation, and rate while speaking. The presentation should terminate with a strong closing.

Reading the Research Report

Addresses the Problem The problem being addressed should be clearly identified and the relevant background information provided. The research design should be clearly described in non-technical terms. Execution of the Research Procedures The reader should pay special attention to the manner in which the research procedures were executed. Numbers and statistics reported in tables and graphs should be examined carefully by the reader.

Reading the Research Report

Interpretation and Conclusions The interpretation of the basic results should be differentiated from the results per se. Any conclusions or recommendations made without a specification of the underlying assumptions or limitations should be treated cautiously by the reader. Generalizability It is the responsibility of the researcher to provide evidence regarding the reliability, validity, and generalizability of the findings. Disclosure The reader should carefully examine whether the spirit in which the report was written indicates an honest and complete disclosure of the research procedures and results.

Research Follow-up
Assisting the Client The researcher should answer questions that may arise and help the client to implement the findings. Evaluation of the Research Project Every marketing research project provides an opportunity for learning and the researcher should critically evaluate the entire project to obtain new insights and knowledge.