Marketing Research Coetzee AJ Chapter 4
Marketing Research Coetzee AJ Chapter 4
Marketing Research Coetzee AJ Chapter 4
RESEARCH METHODOLOGY
4.1.
INTRODUCTION
Chapter four presents the methodology used for the empirical research. This
discussion elaborates on the summary of the research methodology set out in
chapter one. The main objective of this chapter is to discuss the marketing research
process and specifically the process that was applied to this study.
Marketing
The American Marketing Association defines marketing research as the function that
links the consumer, customer, and public to the marketer through information;
specifically information that is used to identify and define marketing opportunities and
problems and to generate, refine and evaluate marketing as a process (McDaniel &
Gates, 2010:7). Also, marketing research is concerned with the information required
to address these issues as well as methodological designs for collecting information.
Marketing research, furthermore, is concerned with managing and implementing the
collection process, analysis of results, and communication of the findings and their
implications (McDaniel & Gates, 2010:7).
McDaniel and Gates (2010:7) note their preferred definition of marketing research as
the planning, collection, and analysis of data relevant to marketing decision-making
and the communication of the results of this analysis to management.
Marketing research is further defined by Malhotra (2010:39) as the systematic and
objective identification and use of information for the purpose of improving decisionmaking related to the identification and solution of problems and opportunities in
marketing. The author further asserts that this definition points to noteworthy aspects
that need to be considered, such as the notion that marketing research is systematic,
which means that systematic planning is required at all stages of the marketing
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research process. Zikmund and Babin (2010a:5) note that marketing research is the
application of the scientific method in searching for the truth about marketing
phenomena. The authors elaborate that research applications include defining
marketing opportunities and problems, generating and evaluating marketing ideas,
monitoring performance, and generally understanding the marketing process.
Malhotra and Birks (2006:6) argue that the definition of marketing research indicates
that marketing research entails a process. These authors note that this means that
research aims and objectives need to be defined as a first step. Malhotra (2010:39)
asserts that marketing research involves the identification, collection, analysis,
dissemination, and use of information. The author argues that all phases of this
marketing research process are equally important.
4.3.
Marketing research attempts to provide accurate information that reflects a true state
of affairs (Malhotra, 2010:46). Although research is always influenced by the
researchers philosophy, it should be free from the personal or political biases of the
researcher or the management (Malhotra, 2010:46).
The main goal of marketing research is to identify and then satisfy the needs of
various customer groups (e.g. consumers, employees, channel members, suppliers)
(Malhotra, 2010:39). The author notes that marketing managers will need information
about various customer groups, which can be achieved by conducting marketing
research. This is because marketing managers are not always able to make
meaningful and accurate decisions with the available data (Wiid & Diggines,
2009:31). Zikmund and Babin (2010a:19) propose that the need to make intelligent,
informed decisions ultimately motivates marketing research.
The need for marketing research arises in particular when managers need to make
decisions but have inadequate information at their disposal (Burns & Bush, 2010:51).
These authors continue that because research takes time and costs money, not all
decisions will require research. Managers must weigh the value that may possibly be
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derived from conducting research and having information at hand against the cost of
obtaining such information (Burns & Bush, 2010:51).
Company policy toward marketing research and the role that management wants to
allocate to marketing research in the business affects whether and how much
research is conducted (Burns & Bush, 2010:52). Marketing research is not needed
when the information is already available, if the timing is wrong, if funds are not
available or if the costs outweigh the value of the marketing research (Burns & Bush,
2010:53). Zikmund and Babin (2010a:18) further assert that when a manager is
confronted with a key decision, he or she must initially decide whether or not to
conduct marketing research. The authors further note that determining the need for
marketing research centres on time constraints, the availability of data, the nature of
the decision to be made and the value the research information in relation to costs.
Burns and Bush (2010:55) concurrently state that marketing research will be more
likely to be considered when it is believed that such research will help the brand gain
a competitive advantage, or when research will be able to help marketing managers
identify changes in the marketplace, or if the research will provide the best
alternative to pursue among a set of proposed alternatives. Once management has
decided that research is indeed required, the problem or opportunity must be clearly
defined; as noted, this is considered to be the first step of the marketing research
process (Burns & Bush, 2010:55). Hair et al. (2010:31) concur that defining the
problem is an important first step also in determining if research is indeed necessary.
4.4.
Wiid and Diggines (2009:31) suggest that marketing research is used to collect and
process data, which is then presented in a usable and relevant way for the purpose
of making decisions. The authors further add that the key characteristic of marketing
research is that it is a systematic process used for collecting, analysing and
interpreting information. This implies that the marketing research process is an
orderly and systematic procedure that provides reliable information (Wiid & Diggines,
2009:31).
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Table 4.1
Phase 1:
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The research problem for this study has been discussed in chapter one, where the
need for this research project has also been demonstrated. The aim of this study is
to provide information to cricket unions that can assist these unions towards gaining
a better understanding of the decision-making process their sponsors follow when
selecting a sport property to sponsor. The main aim is to develop and improve the
cricket unions understanding of sponsorship proposals.
4.4.3. Step 3: Specify research objectives and confirm the information value
According to Hair et al. (2010:35), research objectives should be based on the
research problem that has been identified in the previous step. Research objectives,
although related to and determined by the problem definition, are set in such a
manner that when achieved, they would provide the information necessary to solve
the problem (Burns & Bush, 2010:56). Research objectives state what the
researcher must do in order to provide the information necessary to solve the
problem (Burns & Bush, 2010:56).
Research objectives must be very detailed and specific; they spell out exactly what
information should be collected, in what format, by what method, and from whom
(Burns & Bush, 2010:56). According to Wiid and Diggines (2009:33), marketing
research objectives broadly indicate what the marketing research hopes to achieve.
Finally, the expected value of the information must be evaluated by both the
researcher and the decision-makers (Hair et al., 2010:35). These authors assert that
certain questions need to be answered. Questions such as whether the information
be collected at all, whether the information will tell the decision-maker something not
already known, whether it will provide significant insights, and questions pertaining to
the benefits that will be delivered by this information are examples of these (Hair et
al., 2010:36).
The following primary objective and research questions were determined for this
study.
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4.4.3.1
Primary objective
The primary objective of this study was to determine the degree to which businesses
follow the decision-making process when selecting a sponsorship opportunity In
order to answer the primary objective of this study, a number of relevant research
questions have been identified and these will be answered during the course of the
study.
4.4.3.2
Research questions
In order to address the primary objective of the study, the following research
questions were formulated:
1. Which objectives are considered to be more likely, and which are less likely to be
set for the sponsorship when making a sponsorship decision?
2. What are the differences between the objectives set for the sponsorship by
medium and large sponsors?
3. What are considered to be the most important decision-making criteria that are
used when evaluating a sponsorship proposal?
4. What is the degree of involvement of different role-players who are part of the
sponsorship decision-making process within a business?
5. Is there a difference regarding the extent to which medium and large sponsors
would follow the decision-making process?
4.4.4. Step 4: Determine the research design and data sources
A discussion of the research design used in this study and also the data sources
used follow below.
4.4.4.1.
Research design implies research planning (Wiid & Diggines, 2009:33). The
research design serves as an overall plan of the methods used to collect and
analyse the data (Hair et al., 2010:36). A research design is the framework or plan
Chapter 4: Research Methodology
90
for a study used, it details the procedures necessary for obtaining the information
needed to structure or solve marketing research problems (Malhotra, 2010:102).
Determining the most appropriate research design is a function of the research
objectives and information requirements (Hair et al., 2010:36). These authors assert
that the researcher must consider the types of data, the data collection method,
sampling method, schedule and the budget. There are three broad categories of
research designs, and an individual research project may sometimes require a
combination of these techniques in order to achieve the objectives of the study (Hair
et al., 2010:36).
Kumar (2000:60) explains that the choice of research approach depends on the
nature of the research. According to Burns and Bush (2010:56), almost all research
projects are different, but they have enough similarities to categorise them by the
methods and procedures used to collect and analyse data. The authors further
explain that the different types of research can be classified within three broad
categories, exploratory research designs, descriptive research designs and causal
(experimental) research designs.
Exploratory research
Causal research
In causal research, the research design is concerned with determining the causeand-effect relationship between variables (Churchill & Iacobucci, 2005:74; Zikmund
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answers the question why?. They continue that causal research can be called
experimental research, because tests usually need to be done physically in order to
determine the outcome.
Descriptive research
Data sources
In order for research to provide information that helps to solve problems, researchers
must identify types and sources of information they will use (Burns & Bush, 2010:57).
There are two methods that can be used towards collecting data, according to
Malhotra and Peterson (2006:40): a secondary source involves information that
already exists, and primary sources which involve collecting new information firsthand for the specific research problem at hand (Malhotra, 2010:73).
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Secondary sources
Secondary information should always be sought first, since it is much cheaper and
faster to collect than primary information (Burns & Bush, 2010:57).
Wiid and
Diggines (2009:34) define secondary data as historical data that has already been
gathered, either by the business or by outsiders, for the purpose other than the study
currently in question. If a problem or opportunity remains unsolved after collecting
the secondary data, a formal marketing research investigation must be conducted,
provided it is economical (Wiid & Diggines, 2009:34).
In this study, secondary data was used for the literature review. The literature
review were conducted in order to explore and to become familiar with the research
problem through the use of textbooks and reliable academic research articles.
Primary sources
During the formal marketing research investigation, primary data is collected (Wiid &
Diggines, 2009:34).
specifically intended to solve the problem or make use of the opportunity. Malhotra
(2010:132) explains that primary data can be collected in either a qualitative or
quantitative way.
Qualitative research
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Quantitative research
The population
Kumar (2000:219) refers to the population as the set of all objects that possess
some common set of characteristics with respect to some marketing research
problem. Each individual member is referred to as a population element (Zikmund &
Babin, 2010b:412). Churchill et al. (2010:327) define the target population as that
part of the total population (universe) to which the study is directed. This is the
group from which the sample will be drawn (Tustin et al., 2005:337).
The idea behind sampling is that by selecting only certain elements of that
population, a researcher may draw conclusions about the entire population (Cooper
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Furthermore, the researcher must specify the type of sampling plan to be used and
as well as the size of the sample. There are two basic types of sampling plans,
namely probability and non-probability sampling (Churchill et al., 2010:39). Table 4.2
portrays same main differences between probability and non-probability sampling.
Table 4.2
Probability sample
Simple random sample
Stratified random sample
Systematic sample
Non-probability sample
Convenience sample
Probability sampling
Kumar (2000:222) explains that for probability sampling, each member of the
population has a known probability of being selected; however, the researcher needs
to have a definite sampling frame of the sampling units. Zikmund and Babin
(2010b:417) state that a sampling frame is also called a working population because
these units will eventually provide units involved in analysis. They state that a list of
members of the target population is thus needed.
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Non-probability sampling
Non-probability sampling does not require a sample frame, and as a result, sampling
efficiency and precision are absent in these methods (Kumar, 2000:224). Hill et al.
(1999:25) explain that non-probability samples tend to suffer from problems relating
to bias; furthermore, there is no way of ensuring that the sample is representative of
the total population. Non-probability sampling does not depend upon chance as a
selection procedure, and thus the researcher cannot properly control the probability
of a sampling unit being included in the sample. The representativeness of the
sample and the quality of the parameters estimates must be determined subjectively
(Hill et al., 1999:26).
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Therefore only population elements, for which information was available, were
reached with the electronic questionnaire. Table 1.1 depicts the target populations
size and how each unions sponsors were reached (see section 1.5.2.2).
4.4.6 Step 6: Examine measurement issues and scales
This step involves identifying the concepts to study and measuring the variables
related to the research problem (Hair et al., 2010:38). These authors continue that
researchers must be able to answer questions such as: how should a variable such
as customer satisfaction or service quality be defined and measured?.
These measurement issues and scales are important for both primary and
secondary research; for instance, if database mining is used, the researcher must
understand the measurement approach used for creating the database as well as
any measurement biases (Hair et al., 2010:38).
Zikmund and Babin (2010a:238) note that while following a recipe may seem easy,
understanding the quantities represented and the units of measure can be critical.
They further assert that if a mistake is made in measuring something, the dish may
be completely ruined in the same way that marketing and business concepts can
often be measured in more than one way.
Measurement is defined as the process of developing methods that are used to
characterise or quantify information about persons, events, ideas, or objects of
interest in a systematic manner (Hair et al., 2010:150). These authors continue that
this measurement process consists of two tasks: construct selection or development
and scale measurement.
The goal of the construct development process is to identify and define precisely
what is to be measured (Hair et al., 2010:151). The authors further explain that the
scale measurement process determines how to measure each construct precisely.
For the purpose of this study, only scale measurement will be discussed in detail,
because construct development is only the process during which researchers identify
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characteristics that define the concept being studied by the researcher (Hair et al.,
2010:152).
4.4.6.1
Scale measurement
Scale measurement
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Nominal scales
A nominal scale is the most basic of the four types of scale designs (Hair et al.,
2000:381). These authors further argue that in this type of scale, the questions
require respondents to provide only some type of descriptor as the raw response.
Malhotra (2010:285) explains that nominal scales use numbers as labels or tags for
identifying and classifying objectives. The author further explains that the number
assigned in a nominal scale does not reflect the relative amounts of the
characteristics being measured. Figure 4.2 indicates examples of nominal scales.
Figure 4.2
Example 1:
Please indicate your marital status.
___ Married
___Single ___Separated
___Divorced
___Widowed
Example 2:
Do you like or dislike chocolate ice cream?
___Like
___Dislike
Example 3:
Which of the following supermarkets have you shopped at in the last 30 days? Check all that apply.
___Pick n Pay
___Woolworths
___Spar
___Checkers
Ordinal scales
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Example 1:
Which category best describes your knowledge about the services offered by your local government? (Please
check just one category.)
___Complete knowledge of services
___Good knowledge of services
___Basic knowledge of services
___Little knowledge of services
___No knowledge of services
Example 2: (Likert scale)
The following list of library services, activities and resources may or may not be important to you when using a
local public library. Using the scale provided below, for each listed item please check the response that best
expresses how important you feel it is.
Services, activities, resources
Variety of books that can be borrowed
Availability of current magazines
Availability of a designated area for children
Constant arrival of new books that can be
borrowed
Computers with online access
Example 3:
We would like to know your preferences to different banking methods. Among the methods listed below, please
indicate your top three preferences using 1 to represent your first choice, 2 for you second preference and 3
for your third choice of methods. (Please write the numbers on the lines next to your selected methods.)
___Inside the bank
___Bank by telephone
___24-hour ATM
___Online banking
___Bank by mail
___Banking at a bank-operated vehicle regularly visiting our community
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McDaniel and Gates (2010:348) point out that Likert scales are very popular for
marketing research purposes, since these scales are easy to construct and can be
administered by telephone or an internet survey. Hair et al. (2010:163) assert that
Likert scales are most appropriate for research designs that use self-administered
surveys, personal interviews, or online surveys. Figure 4.3 depicts several examples
of ordinal scales.
Interval scales
The structure of a true interval scale activates not only the assignment and order
scaling properties, but also the distance property (Hair et al., 2000:382). Hair et al.
(2010:155) explain that interval scales can measure the absolute difference between
scale points. Figure 4.4 provide examples of interval scales.
Figure 4.4
Example 1:
How likely are you to recommend the Santa Fe Grill to a friend?
Definitely will not recommend
1
2
Example 2:
Using a scale of 1-10, with 10 being Highly satisfied and 1 being Not satisfied at all, how satisfied are you
with the banking services you are currently receiving (read name of your primary bank)?Answer: ___
Ratio scales
Ratio scales possesses all the properties of the nominal, ordinal and interval scales
(Malhotra, 2010:288). They assert that in addition a zero point is specified, and thus
ratio scales possess the characteristics of origin (and distance, order, and
description). Figure 4.5 shows some examples of ratio scales.
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Figure 4.5
Example 1:
Please circle the number of children under 18 years of age currently living in your household.
0
1
2
3
4
5
6
7
If more than 7, please specify:___
Example 2:
In the past seven days, how many times did you go shopping at a retail shopping mall? ___#of items
Example 3:
In years, what is your current age?
___# of years old
Scale evaluation
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Scale reliability
Reliability describes research that obtains the same results when the same research
is repeated or undertaken by different researchers (Wiid & Diggines, 2009:7).
Reliability also refers to the extent to which a scale produces consistent results if
repeated measurements are made (Malhotra, 2010:318; Hair et al., 2010:165).
Zikmund and Babin (2010a:248) concur that a measure is reliable when different
attempts at measuring something converge on the same result.
Hair et al. (2010:165) state that reliability is thus a measure of consistency in
measurement. Malhotra (2010:318) argues that reliability can be defined as the
extent to which measures are free from random error. Popular approaches for
assessing reliability are test-retest, alternative forms and internal-consistency
(Malhotra, 2010:318).
In test-retest reliability, respondents are administered identical scales at two
different times under nearly equivalent conditions (as far as possible) (Malhotra,
2010:319). The author explains that the retest follows the original measurement by
two to four weeks. Hair et al. (2010:165) explain that the idea behind the test-retest
reliability is that if random variations are present, these will be revealed by variations
in the scores between the two sampled measurements.
In order to test alternative forms reliability, two equivalent forms of the scale are
constructed; the same respondents are measured using alternative scale forms
(Malhotra, 2010:319). The author continues that correlation between the responses
to the two equivalent forms of the scale provides measure of reliability.
Internal-consistency reliability is used to assess the reliability of a summated
scale (Likert scale), or subscale, where scores for several items are summed to
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arrive at a total score for a construct (e.g. attitude) (Malhotra, 2010:319). A construct
is compiled of various items within the same question or division (see section 4.4.7).
The simplest measure of internal consistency is split-half reliability. When applying
this procedure, the scale items are randomly divided into two halves and the
resulting half scores are correlated (Malhotra, 2010:319). The authors explain that
high correlations between the haves indicate high internal consistency, but the
correlation between the haves will be affected by the manner in which the groups
have been split.
Malhotra (2010:319) suggests that the Coefficient alpha, or Cronbachs alpha
coefficient can overcome this problem. The author explains that the Cronbachs
alpha coefficient is calculated by averaging the coefficients that result from all
possible combinations of split halves. The coefficient varies from 0 to 1, and a value
of 0.6 or less generally indicates unsatisfactory internal-consistency reliability
(Malhotra, 2010:319). Furthermore, Cronbach alpha values higher than 0.70 indicate
good reliability.
In this study, Cronbachs alpha coefficient was used in order to determine the
reliability of the data gathered, because a convenience sampling method was
applied and Likert scale questions were used.
Validity
Hair et al. (2010:157) explain that scale validity assesses whether a scale measures
what it is supposed to measure. The validity of a scale can be defined as the extent
to which differences in observed scale scores reflect true differences in what is being
measured, rather than systematic or random error (Malhotra, 2010:320). The author
asserts that a scale that reflects a perfect validity would contain no measurement
error.
Zikmund and Babin (2010a:250) explain that validity is the accuracy of a measure or
the extent to which a score truthfully represents a concept. There are three ways by
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means of which validity can be assed: criterion validity, construct validity and content
validity (Malhotra, 2010:320).
Criterion validity reflects whether a scale performs as expected given other
variables considered relevant to the construct (Malhotra, 2010:320). The author
explains that these variables may include demographic and psychographic
characteristics, attitudinal and behavioural measures, or scores obtained from other
scales.
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Mouthino and Evans (1992:56) explain that the relationship between data collection
methods and research instruments is inevitably close. A major advantage of
questioning over observation is that questioning enables the researcher to collect a
wider array of data (Hair et al., 2010:39).
The research instrument used for this study was a web-based questionnaire.
According to Kumar (2000:62), surveys are a popular means of collecting primary
data and are conducted using questionnaires. McDaniel and Gates (2010b:216)
state that web survey software is a popular means of conducting online surveys. The
authors assert that the advantages of online surveys far outweigh the disadvantages.
Aaker et al. (2011:230) concurrently state that web-based surveys have many
advantages over traditional methods: they can be high quality, fast, and inexpensive.
When developing a questionnaire, researchers must select the right type of
questions, consider the sequence and format, and pre-test the questionnaire (Hair et
al., 2010:38). During a pre-test, people representative from those who will be
questioned are asked to complete the questionnaire and to comment on issues such
as clarity of instructions and questions, sequence of the topics and questions, and
anything that may be potentially difficult or confusing (Hair et al., 2010:38). For this
study, a pre-test was undertaken and distributed to the cricket unions, and not to the
sponsors of the cricket unions. The cricket unions were able to also provide
feedback and check for any issues regarding the clarity of the questions and the
concepts used in the questionnaire.
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Questionnaire summary
Question/ Division
Subject related
Section A
Sample profile
Question/Division 1 5 Sample profile /
Demographic information
Section B
Marketing
communication tool
Question/Division 6
Specific sponsorship
Question/Division 7
Benefits received
Question/Division 8
Marketing
communication activities
Section C
Objectives and criteria
Question/Division 9
Objectives
Question/Division 10
Criteria
Section D
Question/Division 11
Decision-making
Decision-making unit
Question/Division 12
Question/Division 13
Question/Division 14
Question/Division 15
2&5
Nominal scale
Nominal scale
Ordinal scale
(Likert scale)
Ordinal scale
(Likert scale)
Ordinal scale
(Likert scale)
1&2
Ordinal scale
(Likert scale)
Decision-making process Ordinal scale
(Likert scale)
Evaluate
Nominal scale
Success
Nominal scale
Continue
Nominal scale
4
5
-
Table 4.3 presents important information relating to the questionnaire used in this
study. In further discussions, the questions in the questionnaire will be referred to as
divisions. The main reason for this is that some divisions, specifically referring to the
Likert scale questions, which consist of more than one question. These individual
statements within each question will be referred to as items. For example, 9.1.1. and
9.1.2. are items of construct 9.1 which is labelled broad corporate objectives.
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For the purpose of this study, statistical analysis in terms of reliability and validity
as well as descriptive analysis was conducted through the statistical consultation
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Source: Adapted from Shui et al. (2009:495) and Hair et al. (2010:39).
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4.4.9.1
4.4.9.2
Coding
Coding refers to the process of grouping and assigning numeric codes to the various
responses to a particular question (McDaniel & Gates, 2010b:486). These authors
further explain that most questions in a survey are close-ended and pre-coded,
meaning that numeric codes have been assigned to the various responses on the
questionnaire.
In the case of internet surveys, which are the type of survey used in this study,
coding is completely eliminated (McDaniel & Gates, 2010b:489). The authors note
that for open-ended questions, however, a coding process is still required. Aaker et
al. (2011:382) assert that the difficulty of coding and analysing open-ended
responses provides a reason for avoiding them in a questionnaire whenever
possible.
4.4.9.3
Data entry
Data entry refers to the process of converting data to a form that can be read by a
computer (McDaniel & Gates, 2010b:478); for electronic surveys this step is
eliminated. The survey program, Survey Monkey which was used for this study
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presents the data in an Excel file, which makes it easy to export to SAS, which is the
program used to analyse the data from the collected responses.
4.4.9.4
This step is necessary in order to perform final error checking before proceeding to
statistical analysis (McDaniel & Gates, 2010b:491); the authors further note that this
computerised error checking of the data is referred to as logical or machine cleaning
of data. This is done by error checking routines and/or marginal reports (McDaniel &
Gates, 2010b:492).
4.4.9.5
Data tabulation
Tabulation is the process of counting the number of respondents who are classified
into each different category of a variable (Shui et al., 2009:509). These authors
continue that only those variables which are categorical or have been categorised
can be used for tabulation purposes. According to Aaker et al. (2010:385) the
primary use of data tabulation is to determine the empirical distribution (frequency
distribution) of the variables in question and calculating the descriptive statistics,
mainly the mean and percentages.
Tabulation assumes two common forms: one-way tabulation and cross-tabulation
(Shui et al., 2009:509). The authors further explain that one-way tabulation is the
categorisation of only one selected variable at a time, and it shows the number of
respondents who belong to each one of the different categories of the selected
variable. In this study data are tabulated only using one-way tabulation. Crosstabulation is discussed for a better understanding of the different techniques that can
be used in marketing research.
Cross-tabulation compares two or more variables in a study simultaneously; it
categorises the number of respondents based on their responses (Shui et al.,
2009:509). According Malhotra (2010:493), cross-tabulation is used to describe two
or more variables simultaneously. Aaker et al. (2010:389) explain that cross-
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tabulation study the relationship between two nominal variables, and also serve as
the basis of several other statistical techniques such as chi-square and log-linear
analysis.
4.4.9.6
Data analysis
Statistical analysis can be used to analyse data is three ways, namely to describe
data, to measure significance and to indicate the relationship between sets of data
(Wiid & Diggines, 2009:242).
I.
Descriptive statistics
Frequency distribution
The frequency is the number of times a number (raw response) is in a data set (Shui
et al., 2009:514). Tustin et al. (2005:523) indicate that frequencies entail the
construction of a table that shows in absolute and relative terms (in percentages)
how often the different values of the variable are encountered in a sample. The
authors further explain that, in other words, a frequency distribution indicates how
popular the different values of the variable are among the units of analysis.
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Percentage
According to Tustin et al. (2005:538), there are three measures of central tendency,
namely the mean, the median and the mode. Each of these measures will be
discussed below.
The mean, also called the average, is defined as the sum of a set of values divided
by their number (Tustin et al., 2005:538). Aaker et al. (2011:387) define the mean as
the average number obtained by dividing the sum of the responses to a question by
the sample size (the number of respondents to that question).
The median is defined as the value above or below which one half of the
observations fall; in other words, the median is the value of the middle case when all
individual observations have been arranged in rank order (Tustin et al., 2005:540).
Wiid and Diggines (2009:243) explain that if the sample consists of an equal number
of respondents, the median is calculated by adding the two middle values and
dividing the total by two.
The simplest form of central location is the mode, which is defined as the most
frequently occurring value (Tustin et al., 2005:544). Wiid and Diggines (2009:243)
add that in a graph, the mode will always be represented by the highest point.
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Measures of dispersion
The range is a statistic that represents the spread of the data and is the distance
between the largest and the smallest values of a frequency distribution (Shui et al.,
2009:515).
The variance and standard deviation are the most widely used and highly regarded
measures of variance (Tustin et al., 2005:550). Variance involves the following:
subtracting the mean from each individual value, squaring the deviations, summing
them and taking their average.
The standard deviation is the measure of the average dispersion of the values in a
set of responses about their mean; it provides an indication of how similar or
dissimilar the values are in the set of responses (Shui et al., 2009:515). Zikmund and
Babin (2010a:332) explain that the standard deviation is an index of a distributions
variability; it provides a formula used to determine the standard deviation:
II.
Measuring significance
Significance is a statistical term that indicates how sure one is that a difference or
relations exists (Wiid & Diggines, 2009:245). These authors continue that various
statistical tests can be used to determine significance, for example the Z- and ttest,
chi-square analysis, variance analysis and the U-test.
According to Bradley
(2010:326) there are two different types of significance namely statistical significance
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and practical significance. In this study only practical significance were measured,
and will be discussed in more detail.
Practical significance
Practical significance indicates that the manager may need to take action and that
decisions must be made to make changes (Bradley, 2010:327). The authors
continue that it is important to determine the size of the effect. Ellis and Steyn
(2003:51) posit that by using effect sizes for difference between means, researchers
can observe whether the effect is practically significant. Cohen (1988:20-27)
represents the effect size for the difference between means as a d-value, which is
calculated by using the following formula:
where:
d = effect size;
is the difference between means of two compared groups; and
is the maximum standard deviation of the two compared groups.
The effect sizes for the difference between means were interpreted as follows
(Cohen, 1988:20-27):
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III.
The researcher must often determine whether there is a relationship between a set
of dependent and a set of independent variables (Wiid & Diggines, 2009:248). These
authors mention two ways that are used to measure the relationship between two or
more interval variables: correlation- and regression analysis.
Correlation methods are concerned with the simultaneous occurrence between
variables (Wiid & Diggines, 2009:248). These authors note that this measuring
method is designed to provide information about the degree and association
between the variables. Aaker et al. (2010:440) state that Pearson correlation
coefficient measures the degree to which there is a linear association between two
variables.
Regression methods, on the other hand, are used to explore cause-and-effect
relationships between the variables (Wiid & Diggines, 2009:249).
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4.5
Conclusion
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