Advertsing and Marketing Research

ADVERTSING AND MARKETING
RESEARCH
Revised SYLLABUS
2021-2022
Semester-V- TYBAMMC
EDITION I
By: Dr HANIF LAKDAWALA
[email protected]
NOTE: This material is for non commercial purpose. Only for the purpose of reference.
BY: Dr Hanif Lakdawala www.haniflakdawala.com

ADVERTISING AND MARKETING RESEARCH
Max. Marks: 100 (Theory:75, Internals: 25)
Objectives:
• To inculcate the analytical abilities and research skills among the students.
• To understand research methodologies – Qualitative vs Quantitative
• To discuss the foundations of Research and audience analysis that is imperative to successful advertising.
• To understand the scope and techniques of Advertising and Marketing research, and their utility.
MODULE: I
FUNDAMENTALS OF RESEARCH
a. Literature review
b. Stages in Research process
c. Statement of the problem
d. Aims and objectives’ of the study
e. Relevant Research questions
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).
Qualitative Research and Quantitative Research

Qualitative Research is primarily exploratory research. It is used to gain an understanding of underlying reasons,
opinions, and motivations. It provides insights into the problem or helps to develop ideas or hypotheses for potential
quantitative research. Qualitative Research is also used to uncover trends in thought and opinions, and dive deeper
into the problem. Qualitative data collection methods vary using unstructured or semi-structured techniques. Some
common methods include focus groups (group discussions), individual interviews, and participation/observations.
The sample size is typically small, and respondents are selected to fulfill a given quota.
Qualitative research is any which does not involve numbers or numerical data.
It often involves words or language, but may also use pictures or photographs and observations.
Almost any phenomenon can be examined in a qualitative way, and it is often the preferred method of investigation
in the UK and the rest of Europe; US studies tend to use quantitative methods, although this distinction is by no
means absolute.
Qualitative analysis results in rich data that gives an in-depth picture and it is particularly useful for
exploring how and why things have happened.
However, there are some pitfalls to qualitative research, such as:

• If respondents do not see a value for them in the research, they may provide inaccurate or false
information. They may also say what they think the researcher wishes to hear. Qualitative researchers
therefore need to take the time to build relationships with their research subjects and always be aware of this
potential.

• Although ethics are an issue for any type of research, there may be particular difficulties with
qualitative research because the researcher may be party to confidential information. It is important
always to bear in mind that you must do no harm to your research subjects.
• It is generally harder for qualitative researchers to remain apart from their work. By the nature of their
study, they are involved with people. It is therefore helpful to develop habits of reflecting on your part in the
work and how this may affect the research. See our page on Reflective Practice for more.
Sources of Qualitative Data

Although qualitative data is much more general than quantitative, there are still a number of common
techniques for gathering it. These include:
• Interviews, which may be structured, semi-structured or unstructured;
• Focus groups, which involve multiple participants discussing an issue;
• ‘Postcards’, or small-scale written questionnaires that ask, for example, three or four focused questions of
participants but allow them space to write in their own words;
• Secondary data, including diaries, written accounts of past events, and company reports; and
• Observations, which may be on site, or under ‘laboratory conditions’, for example, where participants are
asked to role-play a situation to show what they might do.
Analysing Qualitative Data

Because qualitative data are drawn from a wide variety of sources, they can be radically different in scope.
There are, therefore, a wide variety of methods for analysing them, many of which involve structuring and coding the
data into groups and themes. There are also a variety of computer packages to support qualitative data analysis. The
best way to work out which ones are right for your research is to discuss it with academic colleagues and your
supervisor.
Quantitative Research is used to quantify the problem by way of generating numerical data or data that can be
transformed into useable statistics. It is used to quantify or for the measurement of the attitudes, opinions, behaviors,
and other defined variables – and generalize results from a larger sample population. Quantitative Research uses
measurable data to formulate facts and uncover patterns in research. Quantitative data collection methods are much
more structured than Qualitative data collection methods. Quantitative data collection methods include various forms
of surveys – online surveys, paper surveys, mobile surveys and kiosk surveys, face-to-face interviews, telephone
interviews, longitudinal studies, website interceptors, online polls, and systematic observations.
The data produced are always numerical, and they are analysed using mathematical and statistical methods.
If there are no numbers involved, then it’s not quantitative research.
Some phenomena obviously lend themselves to quantitative analysis because they are already available as numbers.
Examples include changes in achievement at various stages of education, or the increase in number of senior

managers holding management degrees. However, even phenomena that are not obviously numerical in nature can be
examined using quantitative methods.
Sources of Quantitative Data

The most common sources of quantitative data include:
• Surveys, whether conducted online, by phone or in person. These rely on the same questions being asked in
the same way to a large number of people;
• Observations, which may either involve counting the number of times that a particular phenomenon occurs,
such as how often a particular word is used in interviews, or coding observational data to translate it into
numbers; and
• Secondary data, such as company accounts.
Analysing Quantitative Data

There are a wide range of statistical techniques available to analyse quantitative data, from simple graphs to show the
data through tests of correlations between two or more items, to statistical significance. Other techniques include
cluster analysis, useful for identifying relationships between groups of subjects where there is no obvious hypothesis,
and hypothesis testing, to identify whether there are genuine differences between groups.
The development of Likert scales and similar techniques mean that most phenomena can be studied using
quantitative techniques.
This is particularly useful if you are in an environment where numbers are highly valued and numerical data is
considered the ‘gold standard’.
However, it is important to note that quantitative methods are not necessarily the most suitable methods for
investigation. They are unlikely to be very helpful when you want to understand the detailed reasons for particular
behaviour in depth. It is also possible that assigning numbers to fairly abstract constructs such as personal opinions
risks making them spuriously precise.
Variable:
A variable is defined as anything that has a quantity or quality that varies. The dependent variable is the variable a
researcher is interested in. An independent variable is a variable believed to affect the dependent variable.
Confounding variables are defined as interference caused by another variable.
Variable is central idea in research. Simply defined, variable is a concept that varies. There are two types
of concepts: those that refer to a fixed phenomenon and those that vary in quantity, intensity, or amount (e.g. amount
of education). The second type of concept and measures of the concept are

variables. A variable is defined as anything that varies or changes in value. Variables take on two or more values.
Because variable represents a quality that can exhibit differences in value, usually magnitude or strength,
it may be said that a variable generally is anything that may assume different
numerical or categorical values. Once you begin to look for them, you will see variables everywhere.
For example gender is a variable; it can take two values: male or female. Marital status is a variable; it can take on
values of never married, single, married, divorced, or widowed. Family income is a variable; it can take on
values from zero to billions of Rupees. A person's attitude toward women empowerment
is variable; it can range from highly favorable to highly unfavorable. In this way the variation can be
in quantity, intensity, amount, or type; the examples can be production units,
absenteeism, gender, religion, motivation, grade, and age. A variable may be situation specific; for example gender is
a variable but if in a particular situation like a class of Research Methods if there are
only female students, then in this situation gender will not be considered as a variable.
Relationship among Variables

Once the variables relevant to the topic of research have been identified, then the researcher is interested in
the relationship among them. A statement containing the variable is called a proposition. It may contain one or
more than one variable. The proposition having one variable in it may be called as
univariate proposition, those with two variables as bivariate proposition, and then of course multivariate
containing three or more variables. Prior to the formulation of a proposition the researcher has to
develop strong logical arguments which could help in establishing the relationship. For example, age at
marriage and education are the two variables that could lead to a proposition: the higher the education,
the higher the age at marriage. What could be the logic to reach this conclusion? All relationships have to
be explained with strong logical arguments. If the relationship refers to an
observable reality, then the proposition can be put to test, and any testable proposition is hypothesis
Literature review
A literature review is a text of a scholarly paper, which includes the current knowledge including substantive
findings, as well as theoretical and methodological contributions to a particular topic. Literature reviews are
secondary sources, and do not report new or original experimental work.
A literature review can be a precursor in the introduction of a research paper, or it can be an entire paper in itself,
often the first stage of large research projects, allowing the supervisor to ascertain that the student is on the correct
path. A literature review is a critical and in depth evaluation of previous research. It is a summary and synopsis of a

particular area of research, allowing anybody reading the paper to establish why you are pursuing this particular
research program. A good literature review expands upon the reasons behind selecting a particular research question.
A literature review goes beyond the search for information and includes the identification and articulation of
relationships between the literature and your field of research. While the form of the literature review may vary with
different types of studies, the basic purposes remain constant:
Purpose of Literature Review
The following are the purposes of literature review:
1. To avoid duplication of research work, in case an almost similar work as the present one has already been
done by some one.
2. To adopt an alternative method of study in case an almost similar work as already done has to be for some
reason carried out.
3. To fill up gaps in research by incorporating objectives not thoroughly probed by earlier researchers.
4. To effectively, formulate hypotheses in the light of findings of earlier research works or policy
pronouncement of governments or statutory development.
5. To test the efficacy of suggested courses of action in earlier works.
6. To ward of methodological problems or troubles that might have been suffered by earlier researchers.
7. To refine the methodology of research in the light of suggested improvement by or for earlier works.
8. To add new dimensions of research in a study based on recommendations of earlier research works or
scholarly research papers or legal pronouncements or investigations or other reports.
9. To have an idea of the diverse tools of analysis used by others and that could be used for the present
research.
10. To build a theory, review of literature is needed. Fitting the findings of the present work with the findings of
earlier work, and on that basis evolving a theory becomes possible.
11. Review of earlier research works also helps in developing on impressive structuring of research report.
Based on knowledge gained on this aspect from the structures adopted in earlier works, right structuring of report
is worked out.
Objectives of Literature Review

Review of research report is done to know what research works have already been done on this and related topics or
fields, the methodology adopted by them, the hypotheses formulated and tested by them, the findings and
conclusions, the listed scope for further research, and so on. Similarly review of research papers is intended to know
from the papers the thrust issues, the hypothesis, the tool of data collection, the methodology, the findings and the
implications of them for the research for his current work. Review of literature helps understanding the present

research in a better way. In fact, review of literature beginning with a research for a suitable topic for research and
continues until final stages of the current research work.
A literature review has four main objectives:

• It surveys the literature in your chosen area of study
• It synthesises the information in that literature into a summary
• It critically analyses the information gathered by identifying gaps in current knowledge; by showing
limitations of theories and points of view; and by formulating areas for further research and reviewing areas
of controversy
• It presents the literature in an organised way
A literature review shows your readers that you have an in-depth grasp of your subject; and that you understand
where your own research fits into and adds to an existing body of agreed knowledge.
Here’s another way of describing those four main tasks. A literature review:
• demonstrates a familiarity with a body of knowledge and establishes the credibility of your work;
• summarises prior research and says how your project is linked to it;
• integrates and summarises what is known about a subject;
• demonstrates that you have learnt from others and that your research is a starting point for new ideas.
Steps for Conducting a Literature Review

1. Choose a topic. Define your research question: Your literature review should be guided by a central
research question. Remember, it is not a collection of loosely related studies in a field but instead represents
background and research developments related to a specific research question, interpreted and analyzed by
you in a synthesized way.
• Make sure your research question is not too broad or too narrow.
• Is it manageable? Begin writing down terms that are related to your question.
• These will be useful for searches later.
• If you have the opportunity, discuss your topic with your professor.
2. Decide on the scope of your review: How many studies do you need to look at? How comprehensive
should it be? How many years should it cover?
• This may depend on your assignment.
• How many sources does the assignment require?
3. Select the databases you will use to conduct your searches: Make a list of the databases you will search.
Remember to include comprehensive databases such as WorldCat and Dissertations & Theses, if you need
to. Tips: Look at the Library's research guides in your discipline to select discipline-specific databases.

Don't forget to look at books!Make an appointment with or contact your subject librarian to make sure you
aren't missing major databases.
4. Conduct your searches and find the literature: Keep track of your searches:
• Review the abstracts of research studies carefully. This will save you time.
• Write down the searches you conduct in each database so that you may duplicate them if you need to
later (or avoid dead-end searches that you'd forgotten you'd already tried).
• Use the bibliographies and references of research studies you find to locate others.
• Ask your professor or a scholar in the field if you are missing any key works in the field.
• Use RefWorks to keep track of your research citations.
5. Review the literature: Some questions to help you analyze the research: What was the research question
of the study you are reviewing? What were the authors trying to discover? Was the research funded by a
source that could influence the findings? What were the research methodologies? Analyze its literature
review, the samples and variables used, the results, and the conclusions. Does the research seem to be
complete? Could it have been conducted more soundly? What further questions does it raise? If there are
conflicting studies, why do you think that is? How are the authors viewed in the field? Has this study been
cited?; if so, how has it been analyzed?
• Again, review the abstracts carefully.
• Keep careful notes so that you may track your thought processes during the research process.
Stages in Research process.
Stage 1: Formulating the Marketing Research Problem

Formulating a problem is the first step in the research process. In many ways, research starts with a problem that
management is facing. This problem needs to be understood, the cause diagnosed, and solutions developed.
However, most management problems are not always easy to research. A management problem must first be
translated into a research problem. Once you approach the problem from a research angle, you can find a solution.
For example, “sales are not growing” is a management problem.
Translated into a research problem, we may examine the expectations and experiences of several groups: potential
customers, first-time buyers, and repeat purchasers. We will determine if the lack of sales is due to:
• Poor expectations that lead to a general lack of desire to buy, or
• Poor performance experience and a lack of desire to repurchase.
What then is the difference between a management problem and a research problem? Management problems focus
on an action. Do we advertise more? Do we change our advertising message? Do we change an under-performing

product configuration? If so, how? Research problems, on the other hand, focus on providing the information you
need in order to solve the management problem.
Stage 2: Method of Inquiry

The scientific method is the standard pattern for investigation. It provides an opportunity for you to use existing
knowledge as a starting point and proceed impartially.
The scientific method includes the following steps:
1. Formulate a problem
2. Develop a hypothesis
3. Make predictions based on the hypothesis
4. Devise a test of the hypothesis
5. Conduct the test
6. Analyze the results
The terminology is similar to the stages in the research process. However, there are subtle differences in the way the
steps are performed. For example, the scientific method is objective while the research process can be subjective.
Objective-based research (quantitative research) relies on impartial analysis.
The facts are the priority in objective research. On the other hand, subjective-based research (qualitative research)
emphasizes personal judgment as one collect and analyze data.
Stage 3: Research Method

In addition to selecting a method of inquiry (objective or subjective), one must select a research method.
There are two primary methodologies that can be used to answer any research question:
• Experimental research and
• Non-experimental research.
Experimental research gives you the advantage of controlling extraneous variables and manipulating one or more
variables that influences the process being implemented.
Non-experimental research allows observation but not intervention. One simply observe and report on findings.
Stage 4: Research Design

The research design is a plan or framework for conducting the study and collecting data. It is defined as the specific
methods and procedures one use to acquire the information needed.
Stage 5: Data Collection Techniques:

Research design will develop as researcher selects techniques to use. There are many ways to collect data. Two
important methods to consider are interviews and observation.
Interviews require researcher to ask questions and receive responses.

Common modes of research communication include interviews conducted face-to-face, by mail, by telephone, by
email, or over the Internet. This broad category of research techniques is known as survey research. These techniques
are used in both non-experimental research and experimental research.
Another way to collect data is by observation. Observing a person’s or company’s past or present behavior can
predict future purchasing decisions. Data collection techniques for past behavior can include analyzing company
records and reviewing studies published by external sources. In order to analyze information from interview or
observation techniques, researcher must record the results. Because the recorded results are vital, measurement and
development are closely linked to which data collection techniques researcher decide on. The way researcher record
the data changes depends on which method researcher use.
Stage 6: Sample Design

Marketing research project rarely examine an entire population. It’s more practical to use a sample—a smaller but
accurate representation of the greater population. In order to design sample, researcher must find answers to these
questions:
1. From which base population is the sample to be selected?
2. What is the method (process) for sample selection?
3. What is the size of the sample?
Once researcher has established who the relevant population is (completed in the problem formulation stage),
researcher have a base for sample. This will allow researcher to make inferences about a larger population. There are
two methods of selecting a sample from a population:
• Probability or
• Non-probability sampling.
The probability method relies on a random sampling of everyone within the larger population.
Non- probability is based in part on the judgment of the investigator, and often employs convenience samples, or by
other sampling methods that do not rely on probability. The final stage of the sample design involves determining the
appropriate sample size. This important step involves cost and accuracy decisions. Larger samples generally reduce
sampling error and increase accuracy, but also increase costs.
Stage 7: Data Collection

Once researcher established the first six stages, he can move on to data collection.
Depending on the mode of data collection, this part of the process can require large amounts of personnel and a
significant portion of research budget. Personal (face-to-face) and telephone interviews may require researcher to use
a data collection agency (field service). Internet surveys require fewer personnel, are lower cost, and can be
completed in days rather than weeks or months. Regardless of the mode of data collection, the data collection process
introduces another essential element to research project: the importance of clear and constant communication.

Stage 8: Analysis and Interpretation
In order for data to be useful, researcher must analyze it. Analysis techniques vary and their effectiveness depends on
the types of information researcher is collecting, and the type of measurements been used. Because they are
dependent on the data collection, analysis techniques should be decided before this step.
Stage 9: Research Report

The marketing research process culminates with the research report. This report will include all of information,
including an accurate description of research process, the results, conclusions, and recommended courses of action.
The report should provide all the information the decision maker needs to understand the project. It should also be
written in language that is easy to understand. It’s important to find a balance between completeness and
conciseness. Researcher don’t want to leave any information out; however, he can’t let the information get so
technical that it overwhelms the reading audience.
One approach to resolving this conflict is to prepare two reports: the technical report and the summary report. The
technical report discusses the methods and the underlying assumptions. In this document, researcher discusses the
detailed findings of the research project. The summary report, as its name implies, summarizes the research process
and presents the findings and conclusions as simply as possible.
Another way to keep research findings clear is to prepare several different representations of findings. PowerPoint
presentations, graphs, and face-to-face reports are all common methods for presenting research information.
Along with the written report for reference, these alternative presentations will allow the decision maker to
understand all aspects of the project.

MODULE: II
RESEARCH DESIGNS
Meaning, Definition, Need and Importance,

Scope of Research Design
Types- Descriptive, Exploratory and Causal.
Research Design: Meaning and Importance

A research design is a framework or blueprint for conducting the marketing research project. It details the procedures
necessary for obtaining the information needed to structure or solve marketing research problems. In simple words it
is the general plan of how you will go about your research.
Definitions of Research Design:

1. According to David J Luck and Ronald S Rubin, “A research design is the determination and statement of
the general research approach or strategy adopted for the particular project. It is the heart of planning. If the
design adheres to the research objective, it will ensure that the client’s needs will be served.
2. According to Kerlinger, “Research in the plan, structure and strategy of investigation conceived so as to
obtain answers to research questions and to control variance.
3. According to Green and Tull, “ A research design is the specification of methods and procedures for
acquiring the information needed. It is the over-all operational pattern or framework of the project that
stipulates what information is to be collected from which source by what procedures.
The function of a research design is to ensure that requisite data in accordance with the problem at hand is collected
accurately and economically. Simply stated, it is the framework, a blueprint for the research study which guides the
collection and analysis of data. The research design, depending upon the needs of the researcher may be a very
detailed statement or only furnish the minimum information required for planning the research project.
To be effective, a research design should furnish at least the following details.

• A statement of objectives of the study or the research output.
• A statement of the data inputs required on the basis of which the research problem is to be solved.
• The methods of analysis which shall be used to treat and analyze the data inputs.

• More explicitly, the design decisions happen to be in respect of:
• What is the study about?

• Why is the study being made?
• Where will the study be carried out?
• What type of data is required?
• Where can the required data be found?
• What periods of time will the study include?
• What will be the sample design?
• What techniques of data collection will be used?
• How will the data be analyzed?
• In what style will the report be prepared?
Advantages of research design

• Consumes less time.
• Ensures project time schedule.
• Helps researcher to prepare himself to carry out research in a proper and a systematic way.
• Better documentation of the various activities while the project work is going on.
• Helps in proper planning of the resources and their procurement in right time.
• Provides satisfaction and confidence, accompanied with a sense of success from the beginning of the work of
the research project.
Need for Research Design: Research design is needed because it facilitates the smooth sailing of the various
research operations, thereby making research as efficient as possible yielding maximal information with minimal
expenditure of effort, time and money. Research design has a significant impact on the reliability of the results
obtained. It thus acts as a firm foundation for the entire research. For example, economical and attractive
construction of house we need a blueprint (or what is commonly called the map of the house) well thought out and
prepared by an expert architect, similarly we need a research design or a plan in advance of data collection and
analysis for our research project.
Research design stands for advance planning of the methods to be adopted for collecting the relevant data and the
techniques to be used in their analysis.
The need for research design is as follows:
• It reduces inaccuracy;
• Helps to get maximum efficiency and reliability;

• Eliminates bias and marginal errors;
• Minimizes wastage of time;
• Helpful for collecting research materials;
• Helpful for testing of hypothesis;
• Gives an idea regarding the type of resources required in terms of money, manpower, time, and efforts;
• Provides an overview to other experts;
• Guides the research in the right direction.
Importance and scope of Research Design

Research design carries an important influence on the reliability of the results attained. It therefore provides a solid
base for the whole research. It is needed due to the fact that it allows for the smooth working of the many research
operations. This makes the research as effective as possible by providing maximum information with minimum
spending of effort, money and time. For building of a car, we must have a suitable blueprint made by an expert
designer. In a similar fashion, we require a suitable design or plan just before data collection and analysis of the
research project. Planning of design must be carried out cautiously as even a small mistake might mess up the
purpose of the entire project. The design helps the investigator to organize his ideas, which helps to recognize and fix
his faults, if any. In a good research design, all the components go together with each other in a coherent way. The
theoretical and conceptual framework must with the research goals and purposes. In the same way, the data
gathering method must fit with the research purposes, conceptual and theoretical framework and method of data
analysis.
The importance and scope of research design in research methodology is due to the following:
1. It may result in the preferred kind of study with helpful conclusion.
2. It cuts down on inaccuracy.
3. Allows you get optimum efficiency and reliability.
4. Reduce wastage of time.
5. Reduce uncertainty, confusion and practical haphazard related to any research problem.
6. Of great help for collection of research material and testing of hypothesis.
7. It is a guide for giving research the right path.
8. Gets rid of bias and marginal errors.
9. Provides an idea concerning the type of resources needed in terms of money, effort, time, and manpower.
10. Smooth & efficient sailing (sets boundaries & helps prevent blind search) Maximizes reliability of results.
11. Provides firm foundation to the endeavor.
12. Averts misleading conclusions & thoughtless useless exercise. Provides opportunity to anticipate flaws &
inadequacies (anticipates problems). I
13. ncorporates by learning from other people’s critical comments & evaluations.

Types of Research design:
On the basis of information to be collected, research designs can be classified into the following three categories:
a) Exploratory research
b) Descriptive research
c) Causal research

Exploratory Research:
Exploratory research is conducted to clarify ambiguous situations or discover potential business opportunities. As the
name implies, exploratory research is not intended to provide conclusive evidence from which to determine a
particular course of action. In this sense, exploratory research is not an end unto itself. Usually exploratory research
is a first step, conducted with the expectation that additional research will be needed to provide more conclusive
evidence.
i. Exploratory research is often used to guide and refine these subsequent research efforts.
ii. Exploratory research aims to develop initial hunches or insights and provide direction for any further
research needed.
iii. The primary purpose of exploratory research is to shed light on the nature of a situation and identify any
specific objectives or data needs to be addressed through additional research.
iv. Exploratory research is most useful when a decision maker wishes to better understand a situation and/or
identify decision alternatives.
v. Exploratory research is conducted when decision makers sense a need for marketing research but are unsure
of the specific direction the research should take.
Methods for Conducting Exploratory Research

a. Key-Informant Technique: Conducting exploratory research by interviewing knowledgeable
individuals is sometimes called the key-informant technique. It is also known as an expert-opinion
survey or a lead-user survey. An effective way to do exploratory research is to seek out and talk to
individuals with expertise in areas related to the situation being investigated. The technique is
necessarily a very subjective and flexible procedure with no standard approach. In today’s fast-
changing technological world, very few individuals possess all of the relevant information about the
market. Careful attention must be given to the selection of knowledgeable people. This observation is
not limited to business-to-business market settings; it is relevant in almost every context requiring
exploratory research. When properly used, the key-informant technique can be very productive in
situations where a decision maker senses the need for research but lacks well-defined research
objectives.
b. Focus Group Interviews: In a focus group interview, an objective discussion leader introduces a topic
to a group of respondents and directs their discussion of that topic in a non-structured and natural
fashion. This is sometimes simply called a focus group. Respondents (typically about 8 to 12) discuss a
given topic in a fairly informal fashion. A well-trained researcher, called a moderator, leads the

discussion. The moderator’s primary tasks are to ensure that key aspects of the topic are discussed and
to observe or record the participants’ reactions. Focus groups are used in a variety of situations.
c. Analysis of Secondary Data: Examining appropriate secondary data is a fast and inexpensive way of
conducting exploratory research that can generate valuable insights. Such insights, in turn, will provide
a proper focus for conclusive research. Sometimes the insights revealed by secondary-data analysis
may even eliminate the need for conclusive research.
d. Case Study Method: The case study method is an in-depth examination of a unit of interest. The unit
can be a customer, store, salesperson, firm, market area, website, and so on. By virtue of its insight-
generating potential, the case study method is a useful form of exploratory research. This method is
suitable in a research setting in which the company has a general research objective but is unsure of
exactly what it is looking for. It involves collecting in-depth data on a variety of important dimensions
or factors for the unit of interest. Only the investigator’s time and imagination limit the number and
types of factors to be examined. The analysis of case data is nonquantitative and primarily involves
numerous comparisons and contrasts of the data. It requires an alert investigator capable of recognizing
even subtle differences across cases as well as possible relationships among factors within a case.
e. Observational Method: The observational method involves human or mechanical observation of what
people actually do or what events take place during a buying or consumption situation. In this method
of data collection, researchers or mechanical/electronic devices witness and record information as
events occur or compile evidence from past events. It is useful to assess behavior such as use of
products, frequency of store visits, teens shopping with and without supervision, use of media, and time
spent on specific websites. It is particularly useful in researching young children, a group that is
typically not amenable to many research techniques. Exploratory research is not limited to the five
methods just described, although they are the most frequently used methods. Variations or
combinations of these methods can also be employed in an exploratory research project. Insights
gained through exploratory research pave the way for conclusive research. Many research projects
involve an exploratory phase followed by a conclusive phase.
Descriptive Research
As the name implies, the major purpose of descriptive research is to describe characteristics of objects,
people, groups, organizations, or environments. In other words, descriptive research tries to “paint a
picture” of a given situation by addressing who, what, when, where, and how questions.
This research describes the who, what, when, where, and how regarding the current economic and
employment situation. Unlike exploratory research, descriptive studies are conducted after the
researcher has gained a firm grasp of the situation being studied. This understanding, which may have

been developed in part from exploratory research, directs the study toward specific issues. These
statements help greatly in designing and implementing a descriptive study. Without these, the
researcher would have little or no idea of what questions to ask.
Descriptive research often helps describe market segments. For example, researchers used descriptive
surveys to describe consumers who are heavy consumers (buy a lot) of organic food products. The
resulting report showed that these consumers tend to live in coastal cities with populations over
500,000, with the majority residing on the West Coast. The most frequent buyers of organic foods are
affluent men and women ages 45–54 (36 percent) and 18–34 (35 percent).
Interestingly, consumers who buy organic foods are not very brand-oriented—81 percent of them
cannot name a single organic brand. Research such as this helps high-quality supermarkets such as
Whole Foods make location decisions. Over half of Whole Foods’ food products are organic.
Methods for Conducting Descriptive Research

Descriptive research is by far the more frequently used form of conclusive research. Descriptive research
studies are classified into two basic types: cross-sectional studies and longitudinal studies.
i. Cross-Sectional Studies: Cross-sectional studies are one-time studies involving data collection at
a single period in time. They provide a “snapshot” of a situation being researched. Cross-
sectional studies can also be used to obtain data pertaining to different periods in time. A cross-
sectional study makes use of a cross-sectional sample or a group of units (e.g., consumers, stores,
organizations) selected specifically and solely for the one-time data collection. The sample is
disbanded after the data are collected. Several firms maintain omnibus panels as a source of
samples for cross-sectional studies. Such samples are composed of panel members who are
returned to the panel after participating in a cross-sectional study. Within the domain of
descriptive research the cross-sectional study is the most popular method. Cross-sectional
studies account for the majority of formal research projects involving primary-data collection.
ii. Longitudinal Studies: Longitudinal studies are repeated-measurement studies that collect data
over several periods in time. The primary purpose of longitudinal studies is to monitor changes
over time. A longitudinal study produces a “motion picture” (or a series of snapshots) of a
situation over time. In general, longitudinal studies are more informative than cross-sectional
studies, just as motion pictures are more revealing than still pictures. Longitudinal studies are
also more expensive than cross-sectional studies. A longitudinal study typically employs a panel,
or a group of units recruited to provide measurements over a period of time. At the conclusion of
each measurement phase, a panel is maintained intact for future use. Successive measurements in

longitudinal studies can be obtained from a physically different but representative sample of units
or from the same sample of units each time. Although both sample options will yield longitudinal
data, the nature of the findings and the implications can differ.
Types of Longitudinal studies:
a. True Panel Studies: A longitudinal study using the same sample of respondents will
provide richer information than one using a series of different samples. The dynamics of
changes between measurements can be captured only by using the same panel of
respondents. Such a panel has been labeled a true panel to distinguish it from omnibus
panels used to generate different cross-sectional samples at various periods in time. A
true-panel study, compared with a longitudinal study using different samples for the
various measurements, is also capable of generating more data directly pertaining to the
research purpose, for the following reasons: A true panel is a captive sample of willing
respondents who are likely to tolerate extended interviews or fill out lengthy
questionnaires. Background data such as demographic and lifestyle data need not be
collected from panel respondents during each measurement. Therefore, for a given
interview or questionnaire length, more data of primary research interest can be
collected.
b. Omnibus survey: An omnibus survey is a method of quantitative marketing
research where data on a wide variety of subjects is collected during the same interview.
Usually, multiple research clients will provide proprietary content for the survey (paying
to 'get on the omnibus'), while sharing the common demographic data collected from
each respondent. The advantages to the research client include cost savings (because the
sampling and screening costs are shared across multiple clients) and timeliness (because
omnibus samples are large and interviewing is ongoing). An omnibus survey generally
uses a stratified sample and can be conducted either by mail, telephone, or Internet.
c. A cohort study is a particular form of longitudinal study (panel study) that sample
a cohort (a group of people who share a defining characteristic, typically who
experienced a common event in a selected period, such as birth or graduation),
performing a cross-section at intervals through time. A cohort study is a panel study, but
a panel study is not always a cohort study as individuals in a panel study do not always
share a common characteristic.

Different types of panels
Same people Different people
Same questions True panel Cohort panel
Different questions Omnibus panel Cross-sectional

survey
Causal or Experimental Research

If a decision maker knows what causes important outcomes like sales, stock price, and employee satisfaction, then he
or she can shape firm decisions in a positive way. Causal inferences are very powerful because they lead to greater
control. Causal research seeks to identify cause and effect relationships. When something causes an effect, it means it
brings it about or makes it happen. The effect is the outcome. Rain causes grass to get wet. Rain is the cause and wet
grass is the effect.
The different types of research discussed here are often building blocks—exploratory research builds the foundation
for descriptive research, which usually establishes the basis for causal research.
Thus, before causal studies are undertaken, researchers typically have a good understanding of the phenomena being
studied. Because of this, the researcher can make an educated prediction about the cause-and-effect relationships that
will be tested. Although greater knowledge of the situation is a good thing, it doesn’t come without a price. Causal
research designs can take a long time to implement. Also, they often involve intricate designs that can be very
expensive. Even though managers may often want the assurance that causal inferences can bring, they are not always
willing to spend the time and money it takes to get them.
CAUSALITY
Ideally, managers want to know how a change in one event will change another event of interest. As an example,
how will implementing a new employee training program change job performance?

Causal research attempts to establish that when we do one thing, another thing will follow. A causal inference is just
such a conclusion. While we use the term “cause” frequently in our everyday language, scientifically establishing
something as a cause is not so easy. A causal inference can only be supported when very specific evidence exists.
Three critical pieces of causal evidence are:
i. Temporal Sequence
ii. Concomitant Variance
iii. Nonspurious Association
Temporal Sequence
Temporal sequence deals with the time order of events. In other words, having an appropriate causal order of events,
or temporal sequence, is one criterion for causality. Simply put, the cause must occur before the effect. It would be
difficult for a restaurant manager to blame a decrease in sales on a new chef if the drop in sales occurred before the
new chef arrived. If a change in the CEO causes a change in stock prices, the CEO change must occur before the
change in stock values.
Concomitant Variation
Concomitant variation occurs when two events “covary” or “correlate,” meaning they vary systematically. In causal
terms, concomitant variation means that when a change in the cause occurs, a change in the outcome also is
observed. A correlation coefficient, which we discuss in a later chapter, is often used to represent concomitant
variation. Causality cannot possibly exist when there is no systematic variation between the variables. For example,
if a retail store never changes its employees’ vacation policy, then the vacation policy cannot possibly be responsible
for a change in employee satisfaction. There is no correlation between the two events. On the other hand, if two
events vary together, one event may be causing the other.
Nonspurious Association
Nonspurious association means any covariation between a cause and an effect is true, rather than due to some other
variable. A spurious association is one that is not true. Often, a causal inference cannot be made even though the
other two conditions exist because both the cause and effect have some common cause; that is, both may be
influenced by a third variable. For instance, there is a strong, positive correlation between ice cream purchases and
murder rates—as ice cream purchases increase, so do murder rates. When ice cream sales decline, murder rates also
drop. Do people become murderers after eating ice cream? Should we outlaw the sale of ice cream? This would be
silly because the concomitant variation observed between ice cream consumption and murder rates is spurious. A
third variable is actually important here. People purchase more ice cream when the weather is hot. People are also
more active and likely to commit a violent crime when it is hot. The weather, being associated with both may
actually cause both.

Differences Between descriptive and causal research design
Data collected through experimental research can provide much stronger evidence of cause and effect
than can data collected through descriptive research. This does not necessarily mean that analysis of
descriptive research data cannot suggest possible causal linkages among variables, especially when the
effects of uncontrolled variables are filtered through certain analysis techniques available for that purpose.
Viewing descriptive versus experimental research is not a clear-cut dichotomy. Conclusive projects vary
from “purely descriptive with no control” at one extreme to “purely experimental with strict control and
manipulation” at the other extreme.
Conducting Causal or Experimental Research

Causal or Experimental research is intended to generate the type of evidence necessary for confidently making
causal inferences about relationships among variables.
To make causal inferences with confidence, then, we must manipulate the causal variable and effectively
control the other variables.

MODULE III
PREPARING QUESTIONNAIRE
1. Survey Instruments
2. Designing the questioning using projective
3. Technique for Qualitative research
4. Designing the Questionnaire using attitude measuring scale for Quantitative research
1. Survey instrument: The term "survey instrument" is used to refer to questionnaires that serve as the
primary source of information on a given respondent. The primary variables found within the main data set are
derived directly from one or more survey instruments. Good survey instrument design is the most important step and
ensures that you are able to get the insights and results your research objectives.
One of the most important areas of research tools in the field of applied social science is the ‘survey research’. It is
one of the most relevant techniques basically used for collecting data and involves any measurement procedures that
prominently include asking questions from respondents or the subjects selected for the research study. The term
“survey” can be defined as a process which may involve an investigation/ examination or assessment in the form of a
short paper- and-pencil feedback form to an intensive one-on-one in-depth interview. With the help of the
questionnaire or other statistical tools, the method tries to gather data about people, their thoughts a behaviours.
CONCEPT AND MEANING OF ‘SURVEY RESEARCH’

The method of survey research is a non-experimental (that is, it does not involves any observation under controlled
conditions), descriptive research method which is one of the quantitative method used for studying of large sample.
In a survey research, the researcher collects data with the help of standardised questionnaires or interviews which is
administered on a sample of respondents from a population (population is sometimes referred to as the universe of a
study which can be defined as a collection of people or object which possesses at least one common characteristic).
The method of survey research is one of the techniques of applied social research which can be helpful in collection

of data both through direct (such as a direct face to face interview) and indirect observation (such as opinions on
library services of an institute).
It has been argued that surveys should be designed in such a way that helps in making accurate decisions.
Predominantly there are three major ways which canbe used as an instrument in collecting data with the help of
survey research. They are being explained below:
1) Sampling: As discussed earlier, a sample is a representation of the population or universe selected for the
study. The technique of sampling can in itself act as an instrument in collecting data in survey research. For
example if the researcher wants to study the level of job satisfaction amongst the employees of an
organisation, then the researcher can select and study the attitude of atleast ten persons of each department
of the organisation. In order to avoid any bias, the sampling can be done with the help of randomisation (a
methodof sampling which provides an equal chance for each subject to be involvedin the study, which can be
done with the help of lottery or fish bowl technique)or stratification (a method of sampling which categorizes
the population into various categories and subcategories and then conducting the research).
2) Questionnaire: Questionnaires are basically a kind of paper pencil and multiple choice test in which the
individual needs to select the most suitable alternative. The researcher may collect data with the help of a
questionnaire from a large number of samples at a single time. Questionnaires can be administered to the
sample in three ways: (i) Mail survey (ii) Group administered questionnaire and (iii) household drop off
survey.These are being discussed in detail below:
i) Mail survey: The researcher may forward a soft copy of the questionnaire to a large number of
respondents through mail and can get the data collected from them at a single time. It is one
of the relatively inexpensive, less time consuming and convenient method of getting responses.
Yet, the questions which require on the spot response or detailed answer is difficult to be achieved
through mail survey.
ii) Group administered questionnaire: It is one of the traditional methods of administering questionnaire.
The researcher calls for a large number of respondents to be present at a stipulated time period as a
group. Under such group settings, the respondents are asked to respond to a structured sequence of
questions written in paper or questionnaire. The greatest advantage of this method is that the
respondents can clarify their doubt regarding any questioned that has been asked by the researcher
instantly
iii) Household drop-off survey: In this method, the researcher goes door to door to the respondents and
personally hands over as well as collects the questionnaire from them. It is a kind of pick and drop
facility whichis provided by the researcher so that the researcher can answer the questions according
to their convenience.

Interview: Interview is a kind of face to face interaction which helps in providing more honest answers and
responses from the sample, as the interviewer (the one who is interviewing i.e., the researcher) works directly with
the respondent or the interviewee (the one who is being interviewed). Unlike questionnaires, the interviewer has an
opportunity to ask follow-up questions. They are the best suitable methods for those questions which require
opinions or impressions from the respondents. Interviews can be of different types as given below:
i) Structured interview: Structured interviews are those interviews in which the questions that are to be
asked from the respondents are prepared and preplanned in advance by the researcher. The researcher
imposes those prepared questions on the respondents serially and notesdown the answers given by them.
ii) Unstructured interview: Interviews are said to be unstructured when the researcher conducts an interaction
with the respondent in an informal atmosphere. Nothing is preplanned in advance. The response of the
sample gives a clue to the researcher to ask the next question.
iii) Telephonic interview: In order to save time and money, the researcher may call the subjects or sample
through telephone and ask them questions to collect data. This method helps in saving time and energybut
the sample gets limited to only that part of the population who have the facility of telephones at their
residences or offices.
TYPES OF SURVEY RESEARCH

Based on the selection of an instrument or method of data collection, the researchercan use qualitative (e.g. ask open-
ended questions) or quantitative (e.g. use forced-choice questions) measures. Basically there are two major types of
survey: cross- sectional surveys and longitudinal surveys, though there exist some other types of surveys also.
These are explained below:
Cross sectional survey
Cross sectional surveys are used by the researcher when he or she wants to collect data from varied or different
types of groups ( that may be in terms of age, sex,group, nation, tribes and so on) at a single time. An example of
such a survey can be a study on the effect of socialisation of children of different age groups of a particular
country. This type of survey is less time consuming and economicalas well.
Longitudinal survey
This type of research is used only when the subject wants to study the same sample for a longer period of time.
Such longitudinal studies may be used to study behavioural changes, attitude changes, religious effects or any
event or practice that may have a long time effect on the selected sample or population. There are three main
types of longitudinal studies which help the researcher to analyse the long term effects on the selected sample.
These three include (i) Trend studies (ii) Cohort studies and (iii) Panel studies. These are explained in the
following paragraphs.
a. Trend studies: When the researcher needs to analyse a trend of a phenomenon in a population, they
conduct trend studies. The sample of the selected population might not bethe same (as over a period of

time they might have shifted or not available for various reasons) but they belong to the same population.
This selected populationis sampled and examined regularly. Since it is a type of longitudinal research, it
may not be started as well as ended by just one researcher or research project. An example of trend studies
may be a yearly survey of number of graduates actively using books and journals from the library of a
university.
b. Cohort studies: The focus of this type of longitudinal study is also on a particular population which is
sampled and studied more than once within a time gap. The example of this study can be an
investigation of the number of graduates of the year 2009 who have been actively using the library and
four years later, the researcher mayexamine the same issue on another sample of the 2009 graduates and
investigatewhether after the time gap has there been any difference in the attitudes towardsthe
importance of the library within the members of the same class. Wherein, inthe trend study, the research
scholar would study such an attitude within the graduates of different batches of the same university.
c. Panel studies: The researcher in a panel study uses the same sample of people every time and that
sample is called as a ‘panel’. Such a study is used in order to investigate the changes in attitudes,
behaviour or practices of the same panel within a period oftime. They are more specific and focused as
the researcher studies a particular change in the attitude, behaviour, belief or practice of the same
group. For example, a researcher may study the library usage trends amongst the graduate students and
ask them questions related to their frequency of library usage habits. Thereafter, the researcher may ask
the same group or panel, similar questions and also the reasons behind the changes in their habits, if it
has occurred. The study is difficult enough as it faces a greater trend of attrition rates (difficulty in
availability of the same people).
TYPES OF QUESTIONS IN A SURVEY RESEARCH

As discussed earlier, the researcher needs to be very careful while preparing or constructing the questions of a survey
research. Selection of the type of questions is a very crucial aspect, as the whole research would depend upon such
questions. Broadly survey questions can be divided as structured and unstructured questions. Each one of them is
explained below:
Structured Questions: Structured questions are those questions, the format of which is preplanned and predefined in
advance. Some of the types of structured questions include (i) Dichotomous Questions. (ii) Level of measurement
based questions (iii) Filteror Contingency Questions
i. Dichotomous questions: Belonging to the closed-ended family of questions, dichotomous questions are
ones that only offer two possible answers, which are typically presented to survey takers in the following
format – Yes or No, True or False, Agree or Disagree and Fair or Unfair.
ii. Level of measurement based questions : There are four levels of measurement – nominal, ordinal, and

interval/ratio – with nominal being the least precise and informative and interval/ratio variable being most
precise and informative.
iii. Filter questions or Contingency Questions: have closed-ended response options that divide the sample into
subgroups. They are also called screening questions. For example, "Do you own or rent your home?"
Contingency questions are questions that are only to be answered by some subgroup(s) of respondents.
Unstructured Questions: Unstructured questions are usually used in interview, where either the researcher does not
prepare a list of questions and the series of questions might depend upon the response of the subjects or they ask
questions in an informal atmosphere. In order to get adequate and required information, the researcher should take full
care and should give a silent probe, verbally encourage, ask for clarification andhave full empathy with the respondent.
Questionnaire construction:
STRUCTURED Vs UNSTRUCTURED DATA COLLECTION
The data collection through questionnaires can be done through four ways as follows;
1. Structured disguised
2. Structured – non-disguised
3. Non-structured - disguised
4. Non structured – non-disguised
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 information is
based on the expenditures of the consumer on different types of clothing like. Cotton woolen or synthetic, etc. This
structured questionnaire can be of two types, disguised and non- disguised, based on whether the object or the
purpose of the survey is revealed to the respondent. The main advantage of this method is that, the information can
be collected in a systematic and orderly manner. However when it comes to personal questions, this method seems
to be less effective.
Structured disguised: - in this case the researcher does not disclose the object of the interview, because he feels that
by revealing that the very purpose of the interview will get defeated.
Structured – non-disguised: - in this case the everything is pre- arranged and the researcher reveals the objective of
the survey to the respondent. This is the most widely followed approach in market research. This is because it is
generally felt that the respondent should be taken into confidence, so that he can realize the relevance and give
desired information.

Non-structured data collection
It is a kind of data collection method where the data to be collected is not pre- arranged or not listed in a proper
structured format. Therefore the entire responsibility is left on the researcher to ask the respondent, in the way he
feels fit. The researcher only has certain main points on which he develops the questions to be asked. Such a method
is devoid of rigidity and the researcher has sufficient amount of freedom to collect the data in the order he wants.
Normally this kind of method is used in exploratory research
This kind of data collection is most suitable when it comes to personal or motivational factors.
Again here there are two main types of non-structured methods of data collection.
(1) Non structured disguised: - again here the objective of interview is not described to the respondent
(2) Non structured - non-disguised: - like in case of structured non- disguised, the respondent is taken into
confidence by revealing the purpose of the survey.
CONCLUSION: The researcher should use the already viable data only when he finds them reliable, suitable and
adequate. But he should not blindly discard the use of such data if they are readily available from authentic sources
and are also suitable and adequate for in that case it will not be economical to spend time and energy in field surveys
for collecting information. At times there may be wealth of usable information in the already available data which
must be used by an intelligent researcher but with due precaution.
Guidelines for Devising a Good Questionnaire

1. The wording must be kept simple : no technical or specialized words. Use short sentences. Writing style
should be conversational, yet concise and accurate.
2. The meaning should be clear. Avoid ambiguous words and equivocal sentence structures. Avoid double
negatives. Even single negatives should be reworded as positives.
3. Avoid biasing the responses. A biased question or questionnaire encourages respondents to answer one way
rather than another. Avoid “loaded” questions.
4. Ask one question at a time. Avoid complex questions. If more than one question is hidden in a survey
question, the researcher will not know which one the respondent is answering.
5. Avoid personal or intimate questions. Most people will not answer them.
6. Consider the respondent’s frame of reference. What is their background, and how will this effect their
interpretation of the questions? Do respondents have enough information or expertise to answer the
question?

7. Ask yourself if each question is really necessary. Unneeded questions are an expense to the researcher and
an unwelcome imposition on the respondents. To answer this question, you must consider the objective(s) of
the research.
8. Ask yourself what type of data analysis techniques are available for various kinds of questions. Will the
question provide you with the statistical analysis that you want?
9. What type of content will responses to the question yield? Will the question responses provide facts, beliefs,
feelings, descriptions of past behavior, or standards of action?
10. What type of scale, index, or typology should be used?
11. How should the questions be presented on the page (or computer screen)? How much white space? How
many colours? Do you use pictures, charts, or other graphics? It should be colourful enough to gain and
maintain respondent interest, but not so graphic as to distract from the of the questions.
12. Should questions be open-ended or should respondents’ answers be limited to a fixed set of responses?
13. What order should the questions be in? Is there a “natural” grouping to the questions? Will previous
questions bias later questions?
14. Should the questions be numbered? Generally this is a good idea.
15. Are possible responses mutually exclusive? The respondent should not find themselves in more than one
category, for example in both the “married” category and the “not living with spouse” category. Categories
should not overlap.
16. Is the list of possible question responses inclusive? The respondent should not find themselves with no
category that fits their situation.
17. Is the questionnaire going to be administered by research staff, or will it be self-administered by the
respondents. Self administered questionnaires must give clear, detailed instructions.
Principles of Developing Questions

1. Be clear and precise.
2. Response choices should not overlap.
3. Use natural and familiar language.
4. Do not use words or phrases that show bias.
5. Avoid double-barreled questions.
6. State explicit alternatives.
7. Questions should meet criteria of validity and reliability.

3
Questionnaire Design
Clear
Clear and
and Concise
Concise
No
No Ambiguous
Ambiguous Language
Language
Qualities
Qualities Unbiased
Unbiased
of
of
Good
Good
Questionnaires
Questionnaires Reasonable
Reasonable Terminology
Terminology
34
Types of Questions
1. Contingency questions - A question that is answered only if the respondent gives a particular
response to a previous question. This avoids asking questions of people that do not apply to them
(for example, asking men if they have ever been pregnant).
2. Matrix questions - Identical response categories are assigned to multiple questions. The questions
are placed one under the other, forming a matrix with response categories along the top and a list of
questions down the side. This is an efficient use of page space and respondents’ time.
3. Scaled questions - Responses are graded on a continuum (example : rate the appearance of the
product on a scale from 1 to 10, with 10 being the most preferred appearance). Examples of types of
scales include the Likert scale, semantic differential scale, and rank-order scale
4. Closed ended questions - Respondents’ answers are limited to a fixed set of responses. Most scales
are closed ended. Other types of closed ended questions include:
* Dichotomous questions - The respondent answers with a “yes” or a “no”.
* Multiple choice - The respondent has several option from which to choose.
5. Open ended questions - No options or predefined categories are suggested. The respondent supplies
their own answer without being constrained by a fixed set of possible responses. Examples of types
of open ended questions include:
6. Completely unstructured - For example, “What is your opinion of questionnaires?”

Question Sequence
1. Questions should flow logically from one to the next.
2. The researcher must ensure that the answer to a question is not influenced by previous questions.
3. Questions should flow from the more general to the more specific.
4. Questions should flow from the least sensitive to the most sensitive.
5. Questions should flow from factual and behavioural questions to attitudinal and opinion questions.
6. Questions should flow from unaided to aided questions
7. According to the three stage theory (also called the sandwich theory), initial questions should be screening
and rapport questions. Then in the second stage you ask all the product specific questions. In the last stage
you ask demographic questions.
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.
3
Questionnaire Design
An
An interview
interview question
question that
that
Open-Ended
Open-Ended encourages
encourages anan answer
answer phrased
phrased in
in
Question
Question respondent’s
respondent’s own
own words.
words.
An interview
interview question
question thatthat asks
Closed-Ended theAn
Closed-Ended
respondent to make
asks
aa selection
Question the respondent to make selection
Question from
from aa limited
limited list
list of
of responses.
responses.
Scaled-
Scaled- AA closed
closed -- ended
ended question
question
Response
Response designed
designed to measure the
to measure the intensity
intensity
Question
Question of
of aa respondent’s
respondent’s answer.
answer.
33

1. Types of data and sources- Primary and Secondary data sources
2. Methods of collection of primary data:
a. Observation
b. Experimental
c. Interview Method:
i) Personal Interview
ii) focused group,
iii) in-depth interviews -
d. Survey
e. Survey instrument – i) Questionnaire designing.
f. Scaling techniques- i) Likert scale, ii) Semantic Differential scale, iii) Staple scale, iv) Constant sum scale
Types of data and sources- Primary and Secondary data sources
Market research can be either primary or secondary. In marketing research, there are two types of data. Primary data
is data that has to be collected and analyzed from scratch, while secondary data refers to data that already exists and
was gathered for purposes other than current research project. Primary research is new research, carried out to
answer specific issues or questions. It can involve questionnaires, surveys or interviews with individuals or small
groups. Secondary research makes use of information previously researched for other purposes and publicly
available. This is also known as 'desk research'. Secondary research includes published research reports in a library,
surveys or the Internet. It can also include scientific reports produced by medical councils, universities or
government, for example, the Royal College of Physicians, the Indian Heart Foundation and the Department of
Health.
Primary research is defined as factual, firsthand accounts of the study written by a person who was part of the
study. Primary research involves the collection of original primary data by researchers. It is often undertaken after
researchers have gained some insight into an issue by reviewing secondary research or by analyzing previously
collected primary data. The methods vary on how researchers run an experiment or study, but it typically follows the
scientific method. One way you can think of primary research is that it is typically original research. Secondary data
comes in all sorts of shapes and sizes. There are plenty of raw data sources like the Census data, Data.gov, the stock
market, and countless others.

Secondary research is defined as an analysis and interpretation of primary research. Secondary research (also
known as desk research) involves the summary, collation and/or synthesis of existing research rather than primary
research, in which data are collected from, for example, research subjects or experiments. The method of writing
secondary research is to collect primary research that is relevant to a writing topic and interpret what the primary
research found. For instance, secondary research often takes the form of the results from two or more primary
research articles and explains what the two separate findings are telling us. Or, the author may have a specific topic
to write about and will find many pieces of primary research and use them as information in their next article or
textbook chapter. Internal company data like customer details, sales figures, employee timecards, etc. can also be
considered secondary data. Published articles, including peer-reviewed journals, newspapers, magazines, and even
blog postings like this count as secondary data sources. Sometimes, secondary research is required in the
preliminary stages of research to determine what is known already and what new data is required or else to inform
research design. At other times, it may be the only research technique used. A key performance area in secondary
research is the full citation of original sources, usually in the form of a complete listing or annotated listing.
Secondary sources could include previous research reports, newspapers, magazines and journals as well as
government and NGO statistics.
You can break the sources of secondary data into internal sources and external sources. Internal sources include
data that exists and is stored inside your organization. External data is data that is collected by other people or
organizations from your organization's external.
Internal sources include data that exists and is stored inside your organization. External data is data that is
collected by other people or organizations from your organization's external environment.
Let's dig a little deeper into each of these general categories. Examples of internal sources of data include, but are
certainly not limited to, the following:
• Profit and loss statements
• Balance sheets
• Sales figures
• Inventory records
• Previous marketing research studies
If the secondary data you have collected from internal sources will not be sufficient, you can turn to external
sources of data. Some external sources include:
• Government sources, such as the U.S. Census Bureau
• Corporate filings, such as annual reports to the U.S. Securities and Exchange Commission (SEC)
• Trade, business and professional associations
• Media, including broadcast, print and Internet
• Universities
• Foundations

• Think tanks, such as the Rand Corporation or Brookings Institute
• Commercial data services
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 Bank economic reviews, university research reports, journals and articles are all
institutions 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.
2. Projective Techniques
Qualitative market research is often aimed at increasing understanding of consumers’ thoughts and feelings toward
brands, products, concepts, advertising, social issues and other important topics. Projective techniques are indirect
methods used in qualitative research. These techniques allow researchers to tap into consumers’ deep motivations,
beliefs, attitudes and values. This is important because psychology has told us for a long time that much of what

drives behavior can be emotional and irrational in nature. To some extent, these emotional drivers of behavior lie
below conscious awareness.
Consumers tend to be aware of their conscious motivations and decision-making processes. Therefore, when a
researcher directly asks a consumer why they like a product, favor a brand, or prefer a competitor, responses tended
to be rational and purposeful. However, we know that our connections to brands and our preferences for some
products over others stem from motivations and values in which consumers are not consciously aware.
Projective techniques are useful because people tend to have limited understanding of their own behavior; likewise,
people often have difficulty articulating their motivations and desires. While direct questioning works well most of
the time, sometimes market researchers want to investigate consumers’ deeper values and beliefs. In such cases,
projective techniques are typically used in conjunction with direct questioning in qualitative research.
The following general categories of projective techniques are described: association, completion, construction and
expression.
1. Association Techniques
A form of projective technique where participants are presented with some stimulus material and they are then asked
to respond with the first thing that comes to their minds.
Types of Association techniques:
a. Word association: An individual is given a clue or hint and asked to respond to the first thing that comes to
mind. The association can take the shape of a picture or a word. There can be many interpretations of the
same thing. A list of words is given and you don’t know in which word they are most interested. The
interviewer records the responses which reveal the inner feeling of the respondents. The frequency with
which any word is given a response and the amount of time that elapses before the response is given are
important for the researcher. For eg: Out of 50 respondents 20 people associate the word “ Fair” with
“Complexion”.
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.

2. Completion Techniques
In this the respondents are asked to complete an incomplete sentence or story. The completion will reflect their
attitude and state of mind. 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
defences are more likely to be relaxed and allow a more revealing answer.
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. This is
more or less like completion test. They can give you a picture and you are asked to write a story about it. The
initial structure is limited and not detailed like the completion test. For eg: 2 cartoons are given and a
dialogue is to written.
a. 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: A thematic apperception test (TAT), sometimes called the picture interpretation technique,
presents subjects with an ambiguous picture(s) and asks the subject to tell what is happening in the
picture(s) now and what might happen next. Hence, themes (thematic) are elicited on the basis of the
perceptual-interpretive (apperception) use of the pictures. The researcher then analyzes the contents
of the stories that the subjects relate. A TAT represents a projective research technique. Frequently,

the TAT consists of a series of pictures with some continuity so that stories may be constructed in a
variety of settings. 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.
b. Fantasy scenario requires the respondent to make up a fantasy about the product or brand.
c. 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
In this the people are asked to express the feeling or attitude of other people.
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
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.
3. Given their complexity, projective techniques should not be used naively.
3. Attitude measuring Scaling techniques
Attitude scales are used to measure people's attitude towards a product in market. Products are often measured
using product rating in consumer research.
Four types of scales are generally used for Marketing Research.

1. Nominal Scale: A Nominal Scale is a measurement scale, in which numbers serve as “tags” or “labels” only,
to identify or classify an object. A nominal scale measurement normally deals only with non-numeric
(quantitative) variables or where numbers have no value. Example numbers representing subjects in mark
sheet.
2. Ordinal Scale: An ordinal scale is a scale (of measurement) that uses labels to classify cases
(measurements) into ordered classes. ... Some examples of variables that use ordinal scales would be movie
ratings, political affiliation, military rank, etc.
3. Interval Scale. An interval scale is one where there is order and the difference between two values is
meaningful. Examples of interval variables include: temperature (Farenheit), temperature (Celcius), pH, SAT
score (200-800), credit score (300-850)
4. Ratio Scale: The most common examples of ratio scales are weight, age, height, and money. In the case of
marketing research, sales, market share, price, and number of consumers are measured on a ratio scale.
These are the most informative scales as it tells about the order and the number of objects between the values
of the scale.

Various Methods of Attitude measuring scale:
1. Simple Attitude Scaling: In its most basic form, attitude scaling requires that an individual agree with a
statement or respond to a single question. This type of self-rating scale merely classifies respondents into
one of two categories
Example
Iphone should offer more choices in colour
_______ AGREE ______ DISAGREE
2. Likert scale: A Likert scale is an ordered scale from which respondents choose one option that best aligns
with their view. It is often used to measure respondents' attitudes by asking the extent to which they agree or
disagree with a particular question or statement. Example: Iphone is the most awesome smart phone
available in the market. Responders specify their level of agreement to above statement typically in five
points: (1) Strongly disagree; (2) Disagree; (3) Neither agree nor disagree; (4) Agree; (5) Strongly agree.
3. Semantic differential scale: The semantic differential scale measures the connotative meaning of things.
For example, while the word “heart” is defined as the organ that pumps blood around the body, it's
connotative meaning is love or heartache. The scale is used in surveys to gauge people's feelings towards a
particular subject. When scoring a semantic differential scale assessing evaluation, responses are coded from
1 to 7 or from –3 to +3, with higher numbers reflecting more positive evaluations. Responses to individual
items are then summed or averaged to provide an overall score. The answer options consist of opposite
adjectives at each end. For eg. Love/hate, like/dislike, happy/sad etc.
Example: the taste of the new flavor ice cream
1 7
2 3 4 5 6
Like dislike
4. Stapel Scale: It is a unipolar (one adjective) rating scale designed to measure the respondent's attitude
towards the object or event. The scale is comprised of 10 categories ranging from –5 to +5 without any
neutral point (zero).
Example: The service at Big Bazar is
+5
+4
+3
+2

+1
High Quality
-1
-2
-3
-4
-5
5. The Constant Sum Scaling: It is a technique wherein the respondents are asked to allocate a constant
sum of units, such as points, currency, chips or chits among the stimulus objects according to some specified
criterion. For example, you may want to ask respondents to allocate 100 points among four different
package designs in a way that reflects their likelihood to purchase.
Example:
Divide 100 points among the characteristics listed so that the division will reflect how
Important each characteristic is to your selection of a new automobile.
Price ____
Economy ____
Dependability ____
Safety ____
Comfort ____
Style ____
Total 100
6. The paired-comparison test: It is used to determine whether two products differ in a specified attribute,
such as sweetness, crispness, yellowness, etc. The paired comparison implicates the “forced” choice and
therefore the judges must give an answer in any case.
• Example: Which brand do you prefer?
___ Coca-Cola ___ Pepsi
7. Guttman scale: In the social sciences, the Guttman or “cumulative” scale measures how much of a positive
or negative attitude a person has towards a particular topic. ... For example, on a 5-point quiz, if a person gets
to question 3 and then stops, it implies they do not agree with questions 4 and 5
8. Thurstone scale: It is defined as a unidimensional scale that is used to track respondent's behavior, attitude
or feeling towards a subject. Respondents indicate the statements that they agree with, and an average is
computed. These are also known as equal appearing interval scales. They are used to measure the attitude
towards a given concept or construct. For this purpose a large number of statements are collected that relate

to the concept or construct being measured. The judges rate these statements along an 11 category scale in
which each category expresses a different degree of favourableness towards the concept. The items are then
ranked according to the mean or median ratings assigned by the judges and are used to construct
questionnaire of twenty to thirty items that are chosen more or less evenly across the range of ratings.
DATA COLLECTION
Methods of collecting Primary Data
1. Depth interview
2. Focus group
3. Survey
4. Observation
5. Experimentation
1. 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: “The laddering method of interviewing is technique to understanding people’s core values and
beliefs. The technique is powerful, because it provides a simple and systematic way of establishing an
individual’s core set of constructs on how they view the world. Laderring Technique is use to describe the
linkages between customers’ values and their overall purchasing behavior: the Means End Chain theory. This
theory provides both a framework for capturing qualitative laddering research data in the consumer space and a
model for assessing consumer values and behaviors. According to the Means End Chain theory, there is a
hierarchy of consumer perceptions and product knowledge that ranges from attributes (A) to consumption
consequences (C) to personal values (V), as follows:
• Attributes—At the top level of this hierarchy, attributes are most recognizable by individuals. Individuals
recognize the attributes of a product or system easily. For example, “I like this car, because it is a
convertible.”
• Consequences—In turn, the attributes have consequences for the individual. For example, the convertible
makes its driver feel young and free. Each attribute may have one or more consequences for any given
individual.
• Core values—finally, each consequence are linked to a core value of the person’s life. For example, the
sense of youth makes that driver feel attractive.
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:
1. Detailed probing of an individual’s behavior, attitude or needs is required;
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)
2. 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.

3. Survey Method:
The Survey method is the technique of gathering data by asking questions to people who are thought to have desired
information. A formal list of questionnaire is prepared. Generally a non disguised approach is used. The respondents
are asked questions on their demographic interest opinion.
Types of Surveys:
There are mainly 4 methods by which we can collect data through the Survey Method
a. Telephonic Interview
b. Personal Interview
c. Mail Interview
d. Computer or Internet or Electronic Interview
1. Telephonic Interview
Telephone Interviewing stands out as the best method for gathering quickly needed information. Responses
are collected from the respondents by the researcher on telephone.
Advantages of Telephonic Interview
a. It is very fast method of data collection.
b. It has the advantage over “Mail Questionnaire” of permitting the interviewer to talk to one or more
persons and to clarifying his questions if they are not understood.
c. Response rate of telephone interviewing seems to be a little better than mail questionnaires
d. The quality of information is better
e. It is less costly method and there are less administration problems
Disadvantages of Telephonic Interview
f. They cant handle interview which need props
g. It cant handle unstructured interview
h. It cant be used for those questions which requires long descriptive answers
i. Respondents cannot be observed
j. People are reluctant to disclose personal information on telephone
k. People who don’t have telephone facility cannot be approached
2. Personal Interviewing

It is the most versatile of the all methods. They are used when props are required along with the verbal
response non-verbal responses can also be observed.
Advantages of Personal Interview
a. The person interviewed can ask more questions and can supplement the interview with personal
observation.
b. They are more flexible. Order of questions can be changed
c. Knowledge of past and future is possible.
d. In-depth research is possible.
e. Verification of data from other sources is possible.
f. The information obtained is very reliable and dependable and helps in establishing cause and effect
relationship very early.
Disadvantages of Personal Interview
g. It requires much more technical and administrative planning and supervision
h. It is more expensive
i. It is time consuming
j. The accuracy of data is influenced by the interviewer
k. A number of call banks may be required
l. Some people are not approachable
3. Mail Survey
Questionnaires are send to the respondents, they fill it up and send it back.
Advantages of Mail Survey
a. It can reach all types of people.
b. Response rate can be improved by offering certain incentives.
Disadvantages of Mail Survey
c. It can not be used for unstructured study.
d. It is costly.
e. It requires established mailing list.
f. It is time consuming.
g. There is problem in case of complex questions.
4. Computer or Internet or Electronic Interview

Electronic interviewing is a process of recognizing and noting people, objects, occurances rather than asking
for information. For example-When you go to store, you notice which product people like to use. The
Universal Product Code (UPC) is also a method of observing what people are buying.
Advantages of Electronic Interview

a. There is no relying on willingness or ability of respondent.
b. The data is more accurate and objective.
Disadvantages of Electronic Interview
c. Attitudes cannot be observed.
d. Those events which are of long duration cannot be observed.
e. There is observer bias. It is not purely objective.
f. If the respondents know that they are being observed, their response can be biased.
g. It is a costly method.
4. OBSERVATION
A. Observation Research - Observing consumers without communicating with them. It is the systematic process of
recording the behavioural patterns (or events) of people, objects, and occurrences without questioning or
communicating with them. Observational methods are tools to gather information on current behaviour. A wide
ranging set of research techniques aimed at observing consumers interacting naturally with their surroundings
including products and services in use. A wide ranging set of research techniques aimed at observing consumers
interacting naturally with their surroundings including products and services in use. A key advantage of observation
research is that often the respondent or consumer is unaware that they are being observed, allowing their behavior to
be observed naturally.
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 behaviour of interest must be frequent, repetitive, or predictable; and
3. The behaviour of interest must be of relatively short duration.

3
Observation Research
People
People Mystery Shoppers
Watching
Watching
People
People One-Way Mirrors
Types
Types of
of People
People
Observation
Observation Watching
Watching Audits
Research
Research an
anActivity
Activity
Machines
Machines Traffic Counters
Watching
Watching
People
People Passive People Meter
36
Advantages of Observation Method

1. If the researcher observes and record events, it is not necessary to rely on the willingness and ability of
respondents to report accurately.
2. The biasing effect of interviewers is either eliminated or reduced. Data collected by observation are, thus,
more objective and generally more accurate.
Disadvantages of Observation Method
1. The most limiting factor in the use of observation method is the inability to observe such things such as
attitudes, motivations, customers/consumers state of mind, their buying motives and their images.
2. It also takes time for the investigator to wait for a particular action to take place.
3. Personal and intimate activities, such as watching television late at night, are more easily discussed with
questionnaires than they are observed.
4. Cost is the final disadvantage of observation method. Under most circumstances, observational data are more
expensive to obtain than other survey data. The observer has to wait doing nothing, between events to be
observed. The unproductive time is an increased cost.
Types of observation research
I. People watching people: refers to people (rather than machines) watching other people.
Various Types of People watching people:
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.
d. [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.]
e. 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.
f. 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.
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. 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.
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 based upon the stimuli of interest. 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.
5. EXPERIMENTATION
Experiment -- experiments are widely used in causal research designs. Experimental research allows a researcher to
control the research situation so that causal relationships among variables may be evaluated. The experimenter
manipulates one or more independent variables and holds constant all other possible independent variables while
observing effects on dependent variable(s). Events may be controlled in an experiment to a degree that is simply not
possible in a survey.
Independent variables are expected to determine the outcomes of interest. In an experiment, they are controlled by
the researcher through manipulations. Dependent variables are the outcomes of interest to the researcher and the
decision makers. A simple example would be thinking about how changes in price would influence sales. Price
would be an independent variable and sales would be a 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).
• Thus the researcher’s goal in conducting an experiment is to determine whether changing an experimental
independent variable causes changes in the specified dependent variable.
Examples
i. The effect of price changes on sales volume of a particular product can be examined by actually
varying the price of the product
ii. Advertising Experiment: Will replacing commercial A with commercial B lead to a marked increase in
consumer preference for a company’s brand?
iii. Pricing Experiment: Can a company improve the profitability of its fashion clothing line by increasing
its price by 10 percent?
iv. Sales Productivity Experiment: Will an increase in the average number of sales calls per customer
from six to eight per year significantly improve sales?
Three types of Experimental research:

a. 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.
b. 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. A major difference between
the two approaches is the degree of control available during the manipulation and measurement process. A
laboratory experiment clearly offers better control than a field experiment with respect to extraneous factors
capable of influencing consumer preferences.
A laboratory experiment is a research study conducted in a contrived setting in which the effect of all, or
nearly all, influential but irrelevant independent variables is kept to a minimum. A field experiment is a
research study conducted in a natural setting in which the experimenter manipulates one or more
independent variables under conditions controlled as carefully as the situation will permit.
The validity of experimental results is usually evaluated on two dimensions: external validity and internal
validity.
• Internal validity is the extent to which observed results are solely due to the experimental
manipulation.
• External validity is the extent to which observed results are likely to hold beyond the experimental
setting. An ideal experiment is one whose results will have high internal as well as external validity,
although there is usually a trade-off between these two forms of validity.
• Laboratory experiments generally have an advantage over field experiments in terms of internal
validity but not external validity. Field experiments generally have an advantage over laboratory
experiments in terms of external validity but not internal validity.
•
c. Continuous research: A survey conducted on a regular and frequent basis among parallel samples within
the same population or a survey in which the interviews are spread over a long period of time. 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.

SECONDARY DATA
Secondary data are data that were developed for some purpose other than helping to solve the problem at hand.
Secondary data can be gathered quickly and is inexpensive as compared to primary data. Even when reports or
publications are ordered, the time involved is generally less than the time required to collect original data.
A thorough search on secondary data will often provide sufficient information to resolve the problem. In some cases
where the secondary data cannot solve the problem, they can often help to structure the problem and eliminate some
variables from consideration. Or, it may be possible to utilize the secondary data in conjunction with primary data.
Secondary data can provide a complete or partial solution to many problems and help in structuring other problems.
They tend to cost substantially less than primary data and can be collected in less time also.
Problems Encountered with Secondary Data

Before secondary data are applied to a particular marketing problem, their relevance and accuracy must be assessed.
Relevancy refers to the extent to which the data fits the information needs of research problem. Even when the data
covers the same general topic as that required by the research problem, they may not fit the requirements of the
problem.
Three general problems’ reduces the relevance of data that would otherwise be useful. They are:
1) There is often a difference in the units of measurement. E.g. many retail decisions require detailed
information on the characteristics of the population within their trade area. However, the available
population statistics may focus on countries, cities or census tracts that do not match the trade area of the
retail outlet.
2) The second general problem that can reduce relevancy of secondary data is the definition of classes. E.g. a
manufacturer may have a product that appeals to children 8 to 12 years old. If available secondary data are
based on age categories 5 to 9 and 10 to 14, the firm will have a hard time utilizing it.
3) The final major factor that is affecting relevancy is time. Generally, research problems require current, if not
future, data. Most secondary data, on the other hand, have been in existence for some time. E.g. complete
census reports are not available for several years. Data are frequently collected one to three years prior to its
publication.
Accuracy is the second major concern of the user of secondary data. The real problem is not inaccuracy, it is the
difficulty of determining how inaccurate the data is likely to be.

While using secondary data, the original source should be used if possible. This is important because, the original
report is generally more complete than the second or third reports. Secondly using original source allows the data to
be examined in context and may provide a better basis for assessing the competence and motivation of the collector.
Sources of Secondary Data

There are two general sources of secondary data:
• Internal sources and
• External sources.
Internal data are available within the firm whereas external sources provide data that are developed outside the firm.
Internal Sources
Internal sources include sales record, sales force reports, operating statements, budgets, previous research reports and
the likes. The most useful type of internal information is generally sales data. But, unfortunately many companies do
not collect or maintain sales data in the manner that allows the researcher to tap their full potential. Such records, if
properly utilized, allows the researcher to isolate profitable and unprofitable customers, territories, and product lines,
to identify developing trends and perhaps to measure the effects of manipulations of marketing mix variables.
Internal data must be collected in a usable format and must be analyzed to be of value. Many firms have useful but
unutilized data. By changing the format of collection forms (sales invoices, salesman call reports, etc) other useful
data can be often collected. They are available and inexpensive; internal data are the best information buy.
External Sources
Numerous sources external to the firm may produce data relevant to the firm’s requirements. There are four types of
general external secondary information, they are:
1) Trade associations
2) Government Agencies
3) Other published sources, and
4) Syndicated services
a) Trade Associations: Trade associations frequently publish or maintain detailed information on industry sales,
operating characteristics, growth patterns and the like. They may also conduct special studies of factors relevant to
their industry. Since trade associations have good reputation for not revealing data on individual firms as well as

good working relationships with the firms in the industry, they may be able to secure information that may be
unavailable to other researchers. These materials may be published in the form of annual reports or as special reports.
b) Government agencies: Federal, state and local government agencies produce a massive amount of data that is of
relevance to marketers. The federal government maintains five major agencies whose primary function is the
collection and dissemination of statistical data, they are:
a) Bureau of Census
b) Bureau of Labor Statistics
c) National Center for Educational Statistics
d) National Center for Health Statistics, and
e) Statistical Reporting Service, Department of Agriculture
There are also a number of specialized analytic and research agencies, numerous administrative and regulatory
agencies.
These sources produce two types of data
a) Statistics focused on people are produced. These include demographics, vital and health statistics, labor and
social conditions.
b) The second broad category focuses on economic activity – commerce, finance, agriculture and the like.
Both types of data are widely used by business firms as an aid in decision-making.
The data available may be standardized, such as census data, or it may be in the form of special reports. Census
publications are one of the most widely used sources of secondary data.
c) Other published Sources: There is virtually endless array of periodicals, books, dissertations, newspapers and the
like, that contain information relevant to marketing decisions.
d) Syndicated Services: A number of firms regularly collect data of relevance to marketers that they sell on a
subscription basis. Two types of syndicated services are widely used by marketing researchers – channel information
and omnibus surveys.
Channel information is available to the firm at four levels – manufacturers, intermediaries, retailers and consumers.
A manufacturers sales and shipment are generally available only through the firms own internal records. Therefore,
although a firm can monitor its own activities at this level, it can only infer the output of other manufacturing firms.
At the intermediary or wholesale level, several syndicated firms provide information on the flow of products and
brands to retail outlets.
Store audits provide data on the movement of brands through retail outlets.
At the consumer level, consumer panels provide data on both purchasing pattern and media habits.
Omnibus surveys collect data that are useful to a number of subscribers from a series of independent samples.

MODULE: IV
SAMPLING
1. Meaning of Sample and Sampling,

2. Process of Sampling
3. Methods of Sampling:
i) Non Probability Sampling – Convenient, Judgment, Quota, Snow ball.
ii) Probability Sampling – Simple Random, systematic, Stratified, Cluster, Multi Stage.
Meaning of Sample and Sampling

In statistics, a sample is a subset of a population that is used to represent the entire group as a whole. When doing
research, it is often impractical to survey every member of a particular population because the sheer number of
people is simply too large. Sampling is a process used in statistical analysis in which a predetermined number of
observations are taken from a larger population. Thus Sampling is the process of selecting units (e.g., people,
organizations) from a population of interest so that by studying the sample we may fairly generalize our results back
to the population from which they were chosen.
Why Do Researchers Use Samples?

When researching an aspect of the human mind or behavior, researchers simply cannot collect data from every single
individual in most cases. Instead, they choose a smaller sample of individuals that represent the larger group. If the
sample is truly representative of the population in question, researchers can then take their results and generalize
them to the larger group.
Basic Principles of Sampling

Theory of sampling is based on the following laws-
• Law of Statistical Regularity – This law comes from the mathematical theory of probability. According to King,”
Law of Statistical Regularity says that a moderately large number of the items chosen at random from the large group

are almost sure on the average to possess the features of the large group.”
According to this law the units of the sample must be selected at random.
• Law of Inertia of Large Numbers – According to this law, the other things being equal – the larger the size of the
sample; the more accurate the results are likely to be.
Process of Sampling
There are seven steps in sampling process:
Step Description
1. Define the population The population is defined in terms of a) element, b) units, c)
extent and d) time.
2. Specify sampling frame The means of representing the elements of the population –
for example telephone book, map, or city directory – are
described.
3. Specify sampling unit The unit for sampling – for example, city block, company, or
household – is selected. The sampling unit may contain one
or several population elements.
4. Specify sampling method The method by which sampling units are to be selected is
described.
5. Determine sample size The number of elements of the population to be sampled is
chosen.
6. Specify sampling plan The operational procedures for selection of the sampling units
are selected.
7. Select the sample The office and fieldwork necessary for the selection of the
sample are carried out.
Step 1: Define the population

At the outset of the sampling process, the target population must be carefully defined so that the proper sources from
which the data are to be collected can be identified. The usual technique for defining the target population is to
answer questions about the crucial characteristics of the population. The question to answer is, “Whom do we want
to talk to?” The answer may be users, nonusers, recent adopters, or brand switchers. To implement the sample in the

field, tangible characteristics should be used to define the population. A baby food manufacturer might define the
population as all women still capable of bearing children. However, a more specific operational definition would be
women between the ages of 12 and 50. While this definition by age may exclude a few women who are capable of
childbearing and include some who are not, it is still more explicit and provides a manageable basis for the sample
design.
Step 2: Specify the Sampling frame

In practice, the sample will be drawn from a list of population elements that often differs somewhat
from the defined target population. A list of elements from which the sample may be drawn is called a sampling
frame. The sampling frame is also called the working population because these units will eventually provide units
involved in analysis. A simple example of a sampling frame would be a list of all members of the Indian Medical
Association. A sampling frame may be a telephone book, city directory, an employee roster, a listing of all students
attending a university, or a list of possible phone numbers. Maps also serve frequently as sampling frames. A sample
of areas within a city may be taken and another sample of household then be taken within each area. City blocks are
sometimes sampled and all households on each sample block are included. A sampling of street intersections may be
taken and interviewers given instructions as to how to take “Random walks”. From the intersection and select the
households to be interviewed. A perfect sampling frame is one in which every element of the population is
represented once but only once. One does not need a sampling frame to take a non-probability sample.
Step 3: Specify the sampling Unit

The sampling unit is the basic unit containing the elements of the population to be sampled. It may be the element
itself or a unit in which the element is contained. During the actual sampling process, the elements of the population
must be selected according to a certain procedure. The sampling unit is a single element or group of elements subject
to selection in the sample. For example, if an airline wishes to sample passengers, it may take every 25th name on a
complete list of passengers. In this case the sampling unit would be the same as the element. Alternatively, the airline
could first select certain flights as the sampling unit and then select certain passengers on each flight. In this case the
sampling unit would contain many elements. For example, if one wanted a sample of males over 13 years of age, it
might be possible to sample them directly. In this case, the sampling unit would be identical with the element.
However, it might be easier to select households as the sampling unit and interview all males over 13 years of age in
each household. Here the sampling unit and the population element are not the same.
Step 4: Specify the Sampling Methods

It indicates how the sample units are selected. One of the most important decisions in this regard is to determine
which of the two –probability and non-probability sample –is to be chosen. Probability samples are also known as
random samples and non-probability samples as non-random samples.

There are various types of sample designs, which can be covered under two broad groups – random or probability
samples and non-random, or non-probability samples.
Step 5: Determination of the Sample size

The sample size is decided based on the precision required from the sample estimates, time and money available to
collect the required data. While determining the sample size due consideration should be given to the variability of
the population characteristic under investigation, the level of confidence desired in the estimates and the degree of
the precision desired in estimating the population characteristic. The number of prospective units to be contacted to
ensure that the estimated sample size is obtained and the additional cost involved should be considered. The
researcher should calculate the reachable rates, overall incidence rate and expected completion rates associated with
the sampling situation.
Step 6: Specify the Sampling Plan

The actual procedure to be used in contacting each of the prospective respondents selected to form the sample should
be clearly laid out. The instruction should be clearly written so that interviewers know what exactly should be done
and the procedure to be followed in case of problems encountered in contacting the prospective respondents.
Step 7: Select the Sample

The sample respondents are met and actual data collection activities are executed in this stage. Consistency and
control should be maintained at this stage.
Characteristics of a good Sample Design

A good sample design requires the judicious balancing of four broad criteria –goal orientation, measurability,
practicality and economy.
1. Goal orientation: This suggests that a sample design “should be oriented to the research objectives, tailored to
the survey design, and fitted to the survey conditions”. If this is done, it should influence the choice of the
population, the measurement as also the procedure of choosing a sample.
2. Measurability: A sample design should enable the computation of valid estimates of its sampling variability.
Normally, this variability is expressed in the form of standard errors in surveys. However, this is possible only
in the case of probability sampling. In non-probability samples, such a quota sample, it is not possible to know
the degree of precision of the survey results.
3. Practicality: This implies that the sample design can be followed properly in the survey, as envisaged earlier. It
is necessary that complete, correct, practical, and clear instructions should be given to the interviewer so that
no mistakes are made in the selection of sampling units and the final selection in the field is not different from
the original sample design. Practicality also refers to simplicity of the design, i.e. it should be capable of being
understood and followed in actual operation of the field work.

4. Economy: Finally, economy implies that the objectives of the survey should be achieved with minimum cost
and effort. Survey objectives are generally spelt out in terms of precision, i.e. the inverse of the variance of
survey estimates. For a given degree of precision, the sample design should give the minimum cost.
Alternatively, for a given per unit cost, the sample design should achieve maximum precision (minimum
variance).
It may be pointed out that these four criteria come into conflict with each other in most of the cases, and the
researcher should carefully balance the conflicting criteria so that he is able to select a really good sample design.
Methods of Sampling
Sampling Techniques
Sampling techniques may be broadly classified as non-probability and probability sampling techniques.
Non-probability sampling techniques:

1. It relies on the personal judgment and convenience of the researcher rather than the chance to select sample
elements.
2. The researcher can arbitrarily or consciously decide which element to include in the sample.
3. Non-probability may yield good estimates of the population characteristic. However they do not allow for
objective evaluation of the precision of the sample results.
4. Since there is no way of determining the probability of selecting any particular element for inclusion in the
sample, the estimates obtained are not statistically projectable to the population.
Probability sampling techniques:

1. Researcher uses the element of chance for selecting sample.
2. It is possible to pre-specify every potential sample of a given size that could be drawn from the population, as
well as the probability of selecting each sample.
3. Every potential sample need not have the same probability of selection, but it is possible to specify the
probability of selecting any particular sample of a given size.
4. This requires not only a precise definition of the target population, but also a general specification of the
sampling frame. Because sample elements are selected by chance.

5. It is possible to determine the precision of the sample estimated of the characteristics of interest. Confidence
intervals, which contain the true population value with a given level of certainty, can be calculated. This
permits the researcher to make inferences of projections about the target population from which the sample was
drawn. Probability sampling techniques are classified based on :
− Element versus cluster sampling
− Equal unit probability versus unequal probabilities
− Unstratified versus stratified selection
− Random versus systematic selection
− Single-stage versus multistage techniques
Diagrammatic representation of the sampling techniques.
Sampling techniques
Non probability Probability sampling

sampling techniques techniques
Convenience Judgmental Quota

Sampling Sampling Sampling
Simple Systematic Stratified Cluster Multistage

Sampling Sampling
Random Sampling Sampling
Sampling

Non-probability method of sampling:
1. Convenience Sampling: Convenience sampling involves using participants in a study because they are
convenient and available. A non-probability sampling technique that attempts to obtain a sample of
convenient elements. The selection of sampling units is left primarily to the interviewer.
Explanation
• It is a form of Non-Probability sampling.
• It is mainly used for Dipstick studies. This type of sampling is normally used to get basic information to
take elementary decisions.
Convenience samples are often used in exploratory situations when there is a need to get only an
approximation of the actual value quickly and inexpensively. Commonly used Convenience samples are
associates and “the man on the street”. Such samples are often used in the pre-test phase of the study, such as
pre-testing of a questionnaire. Examples: Use of students, church groups, and members of social
organizations, Mall-intercept interviews without qualifying the respondents, Department stores using charge
account lists Tear out questionnaire included in a magazines, and People on the street interviews
2. Judgmental sampling: A form of convenience sampling in which the population elements are purposively
selected based on the judgment of the researcher. A judgment sample is one in which there is an attempt to
draw a representative sample of the population using judgmental selection procedures. Judgment samples are
common in industrial market research. Example: A sample of addresses taken by the municipal agency to
which questionnaires on bicycle riding habits were sent. A judgment sample was taken after researchers
looked at traffic maps of the city, considered the tax assessment on houses and apartment buildings (per
unit), and kept location of schools and parks in mind.
3. Quota Sampling: Definition: A non probability sampling techniques that is a two stage restricted
judgmental sampling. The first stage consists of dividing the population into various groups or quotas based
on predefined population elements. In the second stage, sample elements are selected from each group based
on convenience or judgment
Explanation: The main reason why researchers choose quota samples is that it allows the researchers
to sample a subgroup that is of great interest to the study. If a study aims to investigate a trait or a
characteristic of a certain subgroup, this type of sampling is the ideal technique. In Quota Sampling, the
samples are selected in such a way that the interest parameters represented in the sample are in the same
proportion as they are in the universe/ population. Quota Sampling is widely used in consumer panels.

4. Snowball Sampling: A variety of procedures. Initial respondents are selected by probability methods.
Additional respondents are obtained from information provided by the initial respondents. For example, in
the interview phase, snowball sampling can be used to reach hard-to-reach populations. Participants or
informants with whom contact has already been made can use their social networks to refer the researcher to
other people who could potentially participate in or contribute to the study. It is also know as reference or
network sampling.
5. Purposive sample: Purposive sampling is when a researcher chooses specific people within the population
to use for a particular study or research project. Subjects selected on the basis of specific characteristics or
qualities. Users of a particular technology. Such as Young mothers with small children, doctors, members of
a fan club, target market members.
Probability Method of sampling:

Probability sampling techniques vary in terms of sampling efficiency. Sampling efficiency is a concept that reflects a
trade-offs between sampling cost and precision. Precision refers to the level of uncertainty about the characteristic
being measured. The greater the precision, the greater the cost and most studies require trade-off.
1. Simple Random Sampling: A probability sampling technique in which each element in the population has a
known and equal probability of selection is known as simple random sampling (SRS). Every element is
selected independently of every other element and the sample is drawn by a random procedure from a
sampling frame. Explanation In random sampling, each element in the population has a known and equal
probability or chance of selection. Furthermore, each possible sample of a given size (n) has a known and
equal probability or chance of being the sample actually selected. This implies that every other element is
selected independently of every other element. The sample is drawn by a random procedure from a sampling
frame. This method is equivalent to a lottery system in which names are placed in a container, the container
is shaken, and the names of the winners are then drawn out in an unbiased manner. To draw a simple random
sample, the researcher first compiles a sampling frame in which each element is assigned a unique
identification number. Then random numbers are generated to determine which element to include in the
sample. The random numbers may be generated with a computer routine or a table.
2. Systematic sampling: A probability sampling technique in which the sample is chosen by selecting a
random starting point and then picking every ith element in succession from the sampling frame. In
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. Example It’s a three step process:
a. Find out Sampling Interval. Sampling interval = Population divided by sample size

b. To select random starting point through simple random process
c. To select the sample
Suppose there are 100,000 elements in the population and a sample of 1000 desired. In this case the sampling
interval, is calculated by dividing 100,000 by 1000. It comes to 100. A random number between 1 to 100 is
selected. If say number 23 is selected, the sample will then consists of elements 23, 123, 223, 323, 423, 523,
and so on.
Systematic sampling is similar to SRS in that each population element has a known and equal probability of
selection. However, it is different from SRS in that only the permissible samples of size n that can be drawn
have a known and equal probability of selection. The remaining samples of size n have a zero probability of
being selected.
For systematic sampling, the researcher assumes that the population elements are ordered in some respect. In
some cases the ordering (alphabetic listing in a telephone book) is unrelated to the characteristic of interest.
In other instances, the ordering is directly related to the characteristic under investigation. (Credit card
customers may be listed in order of outstanding balances. If the population elements are arranged in a
manner unrelated to the characteristic of interest, systematic sampling will yield result quite similar to SRS.
On the other hand, when the ordering of the element is related to the characteristic of interest, systematic
sampling increases the representatives of the sample.
3. Stratified Random Sampling: A probability sampling technique that uses a two-step process to partition the
population into subpopulations, or strata is known as stratified random sampling. Elements are selected from
each stratum by a random procedure. Explanation: A probability sampling technique that uses a two-step
process to partition the population:
It’s a two step process:
a. Divide the populations into subpopulations, or strata based on well defined criteria.
b. Elements are selected from each stratum or group based on the proportionate representation by a
random procedure.
Stratified Random Sampling emerges from the word Stratum. A Stratum in a population is a segment of that
population having one or more characteristics. E.g. people in the age strata of 35-40, people in the income
strata to Rs. 20000 p.m. etc
Stratified Sampling involves treating each stratum as a separate subpopulation for sampling purposes, and
from each stratum sampling units would be drawn randomly.
4. Cluster Sampling: The target population is divided into mutually exclusive and collectively exhaustive
subpopulation called clusters. Then a random sample of clusters is selected based on probability sampling

techniques such as simple random sampling. For each selected clusters, either all the elements are included
in the sample or a sample of elements is drawn probabilistically.
Explanation
• If all the elements in each selected cluster are included in the sample, the procedure is called one stage
cluster sampling.
• If a sample of elements is drawn probabilistically from each selected cluster, the procedure is called
two-stage cluster sampling.
• The key distinction between cluster sampling and stratified sampling is that in cluster sampling only a
sample of subpopulations (clusters) is chosen, whereas in stratified sampling all the subpopulations are
selected.
• The objective of the cluster sampling is to increase the sampling efficiency by decreasing costs.
Example
If the study requires studying the households in the city then in cluster sampling the whole city is divided
into Blocks and to take each household on each block selected. Thus to get a representative whole of the
universe.
5. Multistage sampling: Multistage sampling is the taking of samples in stages using smaller and smaller
sampling units at each stage. Multistage sampling can be a complex form of cluster sampling because it is a
type of sampling which involves dividing the population into groups. Cluster sampling uses several levels
of clusters. Whereas cluster sampling uses clusters whereas multistage sampling uses stages

MODULE V: Preparing Data Sheet & Processing
Practical work in class room with live demonstration of using

Excel.
MODULE VI: DATA ANALYSIS
Practical work in class room with live demonstration of

conducting data analysis with the help of dummy data

MODULE: VI & VII
Data Analysis & Methods of Data Analysis
WHAT IS STATISTICS
Statistics is a mathematical science pertaining to the collection, analysis, interpretation or explanation and
presentation of data. It provides tools for predicting and forecasting the economic, marketing and other activities.
Meaning of Statistics: Statistics is concerned with scientific methods for collecting, organising, summarising,
presenting and analysing data as well as deriving valid conclusions and making reasonable decisions on the basis of
this analysis. Statistics is concerned with the systematic collection of numerical data and its interpretation. The word
‘ statistic’ is used to refer to 1. Numerical facts, such as the number of people living in particular area. 2. The study
of ways of collecting, analysing and interpreting the facts.
TYPE OF STATISTICS:
1. Descriptive Statistics consists of methods for organizing, displaying, and describing data by using tables, graphs,
and summary measures.
2. Inferential Statistics consists of methods that use sample results to help make decisions or predictions about a
population.
DESCRIPTIVE STATISTICS
Descriptive statistics is the term given to the analysis of data that helps describe, show or summarize data in a
meaningful way such that, for example, patterns might emerge from the data. Descriptive statistics do not, however,
allow us to make conclusions beyond the data we have analysed or reach conclusions regarding any hypotheses we
might have made. They are simply a way to describe our data.
Descriptive statistics are very important because if we simply presented our raw data it would be hard to visualize
what the data was showing, especially if there was a lot of it. Descriptive statistics therefore enables us to present the
data in a more meaningful way, which allows simpler interpretation of the data. For example, if we had the results of

100 pieces of students' coursework, we may be interested in the overall performance of those students. We would
also be interested in the distribution or spread of the marks. Descriptive statistics allow us to do this.
Typically, there are five general types of statistic that are used to describe
data:
A. Frequency table
B. The central tendency (Mean, Median & Mode)
C. The dispersion: S,D, Variance, Range
D. Distribution (Skewness & Kurtosis)
E. Measures of Position ( Percentile, Quartile )
A. Frequency table:
In statistics, a frequency distribution is a list, table or graph that displays the frequency of various outcomes in a
sample. Each entry in the table contains the frequency or count of the occurrences of values within a particular group
or interval.
B. Measures of Central Tendency

1. Mean/ Average:
This measure of central tendency summarizes the data, by considering a value which is an estimate of the total data
set. It helps us to ascertain the spread in variables between the minimum and maximum values.
EXAMPLE: 15, 15,15,20,20,21,25,36
The sum of these 8 values is 167, so the mean is 167/8 = 20.875.
2. Median
• Median is the middle item in a data set arranged in ascending/descending order.
• If there are n observations then the Median = (n+1)/2 th observation.
• Computational Rule.
• If n is odd, then (n+1)/2 is an integer.
• If n is even, then use an average of n/2 and (n/2) +1th observation.
• The Median is the score found at the exact middle of the set of values.
For example:
• If we order the 8 scores shown above, we would get:
• 15,15,15,20,20,21,25,36 = 20
3. Mode

• Mode is the highest occurring observation.
• The greatest frequency can occur at two or more different values.
• If the data has only two modes, the data is bimodal.
• If the data has more than two modes, the data is multimodal.
• Mode: The mode is the most frequently occurring value in the set of scores.
• The most frequently occurring value is the mode.
• In our example, 15,15,15,20,20,21,25,36 = 20
• the value 15 occurs three times and is the model. In some distributions there is more than one modal
value.
Comparison of Mean, Median, and Mode

Mean Median Mode
Defined as the most frequently

Defined as the middle value in
Defined as the arithmetic average occurring value in the
the data set arranged in
of all observations in the data set. distribution; it has the largest
ascending or descending order.
frequency.
Requires measurement on all It does not require measurement It does not require measurement
observations. on all observations. on all observations.
Uniquely and comprehensively Cannot be determined under all Not uniquely defined for multi-
defined. conditions. modal situations.
Affected by extreme values. Not affected by extreme values. Not affected by extreme values.
Can be treated algebraically. In Cannot be treated algebraically, Cannot be treated algebraically,

other words, Means of several meaning, Medians of several since Modes of several groups
groups can be combined. groups cannot be combined. cannot be combined.
Measures of central tendency: these are ways of describing the central position of a frequency distribution for a
group of data. In this case, the frequency distribution is simply the distribution and pattern of marks scored by the
100 students from the lowest to the highest. We can describe this central position using a number of statistics,
including the mode, median, and mean.
C. Measures of spread or Dispersion

Measures of spread or Dispersion: these are ways of summarizing a group of data by describing how spread out
the scores is. For example, the mean score of our 100 students may be 65 out of 100. However, not all students will
have scored 65 marks. Rather, their scores will be spread out. Some will be lower and others higher. Measures of
spread help us to summarize how spread out these scores are. To describe this spread, a number of statistics are
available to us, including the range, quartiles, absolute deviation, variance and standard deviation.
When we use descriptive statistics it is useful to summarize our group of data using a combination of tabulated
description (i.e., tables), graphical description (i.e., graphs and charts) and statistical commentary (i.e., a discussion
of the results).
Measures of spread describe how similar or varied the set of observed values are for a particular variable (data
item). Measures of spread include:
1. Range
2. variance
3. standard deviation
1. Range
• The range of a data set is the difference between the largest and smallest data values.
• It is the simplest measure of variability.
• It is very sensitive to the smallest and largest data values.
• Range = X max – X min
EXAMPLE: 15,15,15,20,20,21,25,36
• The range is simply the highest value minus the lowest value. In our example distribution, the high value is
36 and the low is 15, so the range is 36 - 15 = 21.
• 15,15,15,20,20,21,25,36
2. Variance — Variance measures how far are data points spread out from the mean. A high variance indicates that
data points are spread widely and a small variance indicates that the data points are closer to the mean of the data set.
• The variance is a measure of variability that utilizes all the data.

• It is based on the difference between the value of each observation (xi) and the mean (x for a
sample, m for a population).
3. Standard Deviation:
Its a quantity or number expressing by how much the members of a group differ from the mean value for the group.
Standard deviation is the measure of dispersion of a set of data from its mean. It measures the absolute variability of

a distribution; the higher the dispersion or variability, the greater is the standard deviation and greater will be the
magnitude of the deviation of the value from their mean.
Coefficient of Variation
• The coefficient of variation indicates how large the standard deviation is in relation to the mean.
• If the data set is a sample, the coefficient of variation is computed as follows:
• If the data set is a population, the coefficient of variation is computed as follows:
D. Distribution:
The distribution is a mathematical function that describes the relationship of observations of different heights. A
distribution is simply a collection of data, or scores, on a variable. Usually, these scores are arranged in order from
smallest to largest and then they can be presented graphically.
a. Skewness: Skewness is a measure of symmetry, or more precisely, the lack of symmetry. A distribution, or data
set, is symmetric if it looks the same to the left and right of the center point. Skewness characterizes the degree of
asymmetry of a distribution around its mean.
The concept of skewness is mainly used to understand the distribution of the data and steps taken to normalize the
data for further building of machine learning models.
In case of negatively skewed data, Mean<Median<Mode. This indicates, more data points are to the right of the
curve where the data has very high values in large numbers.
In case of positively skewed data, Mode<Median<Mean. This means that more data points are to the left of the curve
where the data has very low values in large numbers.

b. Kurtosis
Kurtosis characterizes the symmetric distribution through the relative peaks or flatness of the curve. Kurtosis is a
measure of whether the data are heavy-tailed or light-tailed relative to a normal distribution.
The main difference between Skewness and Kurtosis is:
Skewness measures the degree of the slope in the frequency distribution.
Kurtosis measures the degree of thickness in the tails of the distribution curve.
There are 3 types of Kurtosis:
• Platykurtic (relatively flat)
• Mesokurtic (normal)
• Leptokurtic (relatively peaked)
E. Percentiles and Quartiles

What is Percentile
Percentiles indicate the percentage of scores that fall below a particular value. They tell you where a score stands
relative to other scores. For example, a person with an IQ of 120 is at the 91st percentile, which indicates that their IQ
is higher than 91 percent of other scores.
Percentiles are a great tool to use when you need to know the relative standing of a value. Where does a value fall
within a distribution of values? While the concept behind percentiles is straight forward, there are different
mathematical methods for calculating them. In this post, learn about percentiles, special percentiles and their
surprisingly flexible uses, and the various procedures for calculating them.

Using Percentiles to Understand a Score or Value
Percentiles tell you how a value compares to other values. The general rule is that if value X is at the kth percentile,
then X is greater than K% of the values. Let’s see how this information can be helpful.
What Is a Quartile?
A quartile is a statistical term that describes a division of observations into four defined intervals based on the values
of the data and how they compare to the entire set of observations.
Understanding Quartiles
To understand the quartile, it is important to understand the median as a measure of central tendency. The median in
statistics is the middle value of a set of numbers. It is the point at which exactly half of the data lies below and above
the central value.
So, given a set of 13 numbers, the median would be the seventh number. The six numbers preceding this value are
the lowest numbers in the data, and the six numbers after the median are the highest numbers in the dataset given.
Because the median is not affected by extreme values or outliers in the distribution, it is sometimes preferred to
the mean.
The median is a robust estimator of location but says nothing about how the data on either side of its value is spread
or dispersed. That's where the quartile steps in. The quartile measures the spread of values above and below the mean
by dividing the distribution into four groups.
How Quartiles Work
Just like the median divides the data into half so that 50% of the measurement lies below the median and 50% lies
above it, the quartile breaks down the data into quarters so that 25% of the measurements are less than the lower
quartile, 50% are less than the median, and 75% are less than the upper quartile.
A quartile divides data into three points—a lower quartile, median, and upper quartile—to form four groups of the
dataset. The lower quartile, or first quartile, is denoted as Q1 and is the middle number that falls between the smallest
value of the dataset and the median. The second quartile, Q2, is also the median. The upper or third quartile, denoted
as Q3, is the central point that lies between the median and the highest number of the distribution.
Now, we can map out the four groups formed from the quartiles. The first group of values contains the smallest
number up to Q1; the second group includes Q1 to the median; the third set is the median to Q3; the fourth category
comprises Q3 to the highest data point of the entire set.
Each quartile contains 25% of the total observations. Generally, the data is arranged from smallest to largest:
1. First quartile: the lowest 25% of numbers
2. Second quartile: between 25.1% and 50% (up to the median)
3. Third quartile: 50.1% to 75% (above the median)
4. Fourth quartile: the highest 25% of numbers

INFERENTIAL STATISTICS
Inferential statistics are the statistical procedures that are used to reach conclusions about associations between
variables. They differ from descriptive statistics in that they are explicitly designed to test hypotheses.
Inferential statistics is mainly used to derive estimates about a large group (or population) and draw conclusions on
the data based on hypotheses testing methods.
Inferential statistics makes use of sample data because it is more cost-effective and less tedious than collecting data
from an entire population. It allows one to come to reasonable assumptions about the larger population based on a
sample’s characteristics. Sampling methods need to be unbiased and random for statistical conclusions and
inferences to be validated.
Inferential statistics is strongly associated with the logic of hypothesis testing.
With inferential statistics, you are trying to reach conclusions that extend beyond the immediate data alone. For
instance, we use inferential statistics to try to infer from the sample data what the population might think. Or, we use
inferential statistics to make judgments of the probability that an observed difference between groups is a dependable
one or one that might have happened by chance in this study. Thus, we use inferential statistics to make inferences
from our data to more general conditions; we use descriptive statistics simply to describe what’s going on in our data.
Inferential statistics are useful in experimental and quasi-experimental research design or in program outcome
evaluation. Perhaps one of the simplest inferential test is used when you want to compare the average performance of
two groups on a single measure to see if there is a difference. You might want to know whether eighth-grade boys
and girls differ in math test scores or whether a program group differs on the outcome measure from a control group.
Whenever you wish to compare the average performance between two groups you should consider the t-test for
differences between groups.
Most of the major inferential statistics come from a general family of statistical models known as the General
Linear Model. This includes the t-test, Analysis of Variance (ANOVA), Analysis of Covariance (ANCOVA),
regression analysis, and many of the multivariate methods like factor analysis, multidimensional scaling, cluster
analysis, discriminant function analysis, and so on. Given the importance of the General Linear Model, it’s a good
idea for any serious social researcher to become familiar with its workings. The discussion of the General Linear
Model here is very elementary and only considers the simplest straight-line model. However, it will get you familiar
with the idea of the linear model and help prepare you for the more complex analyses described below.
Thus Inferential statistics helps to suggest explanations for a situation or phenomenon. It allows you to draw
conclusions based on extrapolations, and is in that way fundamentally different from descriptive statistics that
merely summarize the data that has actually been measured.

The most common methodologies in inferential statistics are hypothesis tests, confidence intervals, and regression
analysis. Interestingly, these inferential methods can produce similar summary values as descriptive statistics, such
as the mean and standard deviation.
The following types of inferential statistics are extensively used and relatively easy to interpret:
1. Pearson Correlation
2. Regression
3. T-test
4. Factor Analysis
5. Disciminant analysis
CORRELATION AND LINEAR REGRESSION

The most commonly used techniques for investigating the relationship between two quantitative variables
are correlation and linear regression.
• Correlation quantifies the strength of the linear relationship between a pair of variables
• Correlation is a single statistic, or data point
• Correlation shows the relationship between the two variables
• Regression expresses the relationship in the form of an equation.
• Regression is the entire equation with all of the data points that are represented with a line.
• Regression allows us to see how one affects the other
It all comes down to correlation and regression, which are statistical analysis measurements used to find connections
between two variables, measure the connections, and make predictions. Measuring correlation and regression is
commonly used in a variety of industries, and it can also be seen in our daily lives.
For instance, have you ever seen someone driving an expensive car and automatically thought that the driver must be
financially successful? Or how about thinking that the further you run on your morning workout, the more weight
you’ll lose?
Both of these are examples of real-life correlation and regression, as you’re seeing one variable (a fancy car or a long
workout) and then seeing if there is any direct relation to another variable (being wealthy or losing weight). As we
investigate the relationships between two variables, it’s important to know the differences and the similarities
between correlation and regression.
Correlation vs. regression

It’s not uncommon for correlation and regression to be confused for one another as correlation can often drive into
regression. However, there is a key difference.
What is the difference between correlation and regression?
The difference between these two statistical measurements is that correlation measures the degree of a relationship
between two variables (x and y), whereas regression is how one variable affects another.
Basically, you need to know when to use correlation vs. regression. Use correlation for a quick and simple summary
of the direction and strength of the relationship between two or more numeric variables. Use regression when you’re
looking to predict, optimize, or explain a number response between the variables (how x influences y).
What is correlation?
When it comes to correlation, think of it as the combination of the words “co” meaning together and “relation”
meaning a connection between two quantities.
In this sense, correlation is when a change to one variable is then followed by a change in another variable, whether
it is direct or indirect. Variables are considered “uncorrelated” when a change in one does not affect the other. In
short, it measures the relationship between two variables.
For example, let’s say our two variables are x and y. The changes between these two variables can be considered
positive or negative. A positive change would be when two variables move in the same direction, meaning an
increase in one variable result in an increase in another variable. So, if an increase in x increases y, it’s positively
correlated.
An example of this would be demand and price. This is because an increase in demand causes the corresponding
increase in price. The price would increase because there are more consumers who want it are willing to pay more
for it.
If two variables are moving in opposite directions, like when an increase in one variable results in a decrease in
another, this is known as a negative correlation. An example of a negative correlation would be the price and demand
for a product because an increase in price (x) results in a decrease in demand (y).
Knowing how two variables are correlated allows for predicting trends in the future, as you’ll be able to understand
the relationship between the variables — or if there's no relationship at all.
Correlation analysis
The main purpose of correlation, through the lens of correlation analysis, is to allow experimenters to know the
association or the absence of a relationship between two variables. When these variables are correlated, you’ll be
able to measure the strength of their association.
Overall, the objective of correlation analysis is to find the numerical value that shows the relationship between the
two variables and how they move together. One key benefit of correlation is that it is a more concise and clear
summary of the relationship between the two variables than you’ll find with regression.

Example of correlation
A correlation chart, also known as a scatter diagram, makes it easier to visually see the correlation between two
variables. Data in a correlation chart is represented by a single point. In the chart above you can see that correlation
plots various points of single data.
Let's think of correlation as real-life scenarios. In addition to the price and demand example, let's take a look at
correlation from a marketing standpoint to see the strength of a relationship between the two variables. For instance,
it could be in your company's best interest to see if there is a predictable relationship between the sale of a product
and factors like weather, advertising, and consumer income.

What is regression?
On the other hand, regression is how one variable affects another, or changes in a variable that trigger changes in
another, essentially cause and effect. It implies that the outcome is dependent on one or more variables.
For instance, while correlation can be defined as the relationship between two variables, regression is how they affect
each other. An example of this would be how an increase in rainfall would then cause various crops to grow, just like
a drought would cause crops to wither or not grow at all.
Regression analysis
Regression analysis helps to determine the functional relationship between two variables (x and y) so that you’re able
to estimate the unknown variable to make future projections on events and goals.
The main objective of regression analysis is to estimate the values of a random variable (z) based on the values of
your known (or fixed) variables (x and y). Linear regression analysis is considered to be the best fitting line through
the data points.
Let’s use the example of tracking the value of a single share in the stock market over the years. X will be time in
years and Y will be the value in dollars.
We know that the value of a stock is changed by time passing, among other things. We can’t control those other
things, but we can control when we sell the stock, so we control the time variable. But how dependent is the value of
a stock on time passed?
If we bought a stock for $1 and in one year its value went up to $100, does that mean every year the value will go up
another $100? Does that mean in 25 years it will be valued at $2500? We don’t know.
We figure it out by looking at how much the stock earned over several years. That’s fairly simple because we’re only
measuring how much we change one thing or one variable. Then we put those measurements on a graph or plot. The
dots could be all over the place or scattered.
Could we draw a line through the dots that would show a trend? Let’s call that a trendline. Yes, we can certainly try.
That line is a simple linear regression trendline through a scatter plot.
For example given below if the data of increase in share price year after year for 20 years.
Time (Yrs) Stock Value ($)
2000 1498
2001 1160
2002 1147
2003 848

2004 1126
2005 1180
2006 1294
2007 1420
2008 1322
2009 797
2010 1169
2011 1325
2012 1408
2013 1569
2014 1872
2015 2067
2016 2059
2017 2362
2018 2640
2019 2834
2020 2584
Want to know what it will be worth in 2030? You can get a rough idea by adding 10 periods, or years, to the
trendline in the Forecast Forward field. It will show that it’s valued at somewhere around $2500 by the dot in
the green circle as shown in the figure below.

The main advantage in using regression within your analysis is that it provides you with a detailed look of your data
(more detailed than correlation alone) and includes an equation that can be used for predicting and optimizing your
data in the future.
When the line is drawn using regression, we can see two pieces of information:
Regression formula
A → refers to the y-intercept, the value of y when x = 0
B → refers to the slope, or rise over run
The prediction formula used to see how data could look in the future is:
Y = a + b(x)
Differences between correlation and regression

There are some key differences between correlation and regression that are important in understanding the two.
• Regression establishes how x causes y to change, and the results will change if x and y are swapped. With
correlation, x and y are variables that can be interchanged and get the same result.

• Correlation is a single statistic, or data point, whereas regression is the entire equation with all of the data
points that are represented with a line.
• Correlation shows the relationship between the two variables, while regression allows us to see how one
affects the other.
• The data shown with regression establishes a cause and effect, when one changes, so does the other, and not
always in the same direction. With correlation, the variables move together.
Similarities between correlation and regression

In addition to differences, there are some key similarities between correlation and regression that can help you to
better understand your data.
• Both work to quantify the direction and strength of the relationship between two numeric variables.
• Any time the correlation is negative, the regression slope (line within the graph) will also be negative.
• Any time the correlation is positive, the regression slope (line within the graph) will be positive.
So much more than just cause and effect
Even though they’re studied together, it’s clear that there are obvious differences and similarities between correlation
and regression. When you’re looking to build a model, an equation, or predict a key response, use regression. If
you’re looking to quickly summarize the direction and strength of a relationship, correlation is your best bet.
T-Test?
A t-test is a type of inferential statistic used to determine if there is a significant difference between the means of two
groups, which may be related in certain features. It is mostly used when the data sets, like the data set recorded as the
outcome from flipping a coin 100 times, would follow a normal distribution and may have unknown variances. A t-
test is used as a hypothesis testing tool, which allows testing of an assumption applicable to a population.
For example:
• Compare if the people of one country are taller than people of another one.
• Compare if the brain of a person is more activated while watching happy movies than sad movies.
This comparison can be analyzed by conducting different statistical analysis, such as t-test
Factor analysis:
Factor analysis is a way to condense the data in many variables into a just a few variables. For this reason, it is
also sometimes called “dimension reduction.” You can reduce the “dimensions” of your data into one or more
“super-variables.” The most common technique is known as Principal Component Analysis (PCA). Factor analysis is
used to uncover the latent structure of a set of variables. It reduces attribute space from a large no. of variables to
a smaller no. of factors and as such is a non dependent procedure.

Example. What underlying attitudes lead people to respond to the questions on a political survey as they do?
Examining the correlations among the survey items reveals that there is significant overlap among various subgroups
of items--questions about taxes tend to correlate with each other, questions about military issues correlate with each
other, and so on. With factor analysis, you can investigate the number of underlying factors and, in many cases,
identify what the factors represent conceptually. Additionally, you can compute factor scores for each respondent,
which can then be used in subsequent analyses. For example, you might build a logistic regression model to predict
voting behavior based on factor scores.
Discriminant analysis
Discriminant analysis is a versatile statistical method often used by market researchers to classify observations
into two or more groups or categories. In other words, discriminant analysis is used to assign objects to one group
among a number of known groups. By performing discriminant analysis, researchers are able to address
classification problems in which two or more groups, clusters, or populations are known up front, and one or more
new observations are placed into one of the known classifications based on measured characteristics.
Discriminant analysis is also used to investigate how variables contribute to group separation, and to what degree.
For this reason, it’s often leveraged to compliment the findings of cluster analysis.
Market researchers are continuously faced with situations in which their goal is to obtain a better understanding of
how groups (customers, age cohorts, etc.) or items (brands, ideas, etc.), differ in terms of a set of explanatory or
independent variables.
These situations are where discriminant analysis serves as a powerful research and analysis tool.

MODULE: VIII
REPORT WRITING
1. Essential of a good report,

2. Content of report,
3. Steps in writing a report,
4. Footnotes and Bibliography
Essential of a good report

1. Information collected in the report must be relevant and focused to derive desired results. Pictorial and
graphical presentation of data and related information help to understand the details easily. There is a
possibility that the collected data in the report needs to be represented at many places in different formats to
fulfil the report goals. The ultimate goal is to determine all the issue and make suitable strategies to cope up
with these issue or problems.
2. Report should follow the exact predefined goals and objectives. If there is any sort of divergence of related
information which does not match the goals then the results are of no use. In fact there is a probability of
landing up in making negative or out of focus strategies, which will be very dangerous.
3. The report should always contain the executive summary of the work. This is generally kept before the
actual report starts as it shows the summary of the desired business plan.
4. Apart from the actual analysis the report should also depict the reasons of making this report and what
advantages and profit it can provide after successful implementation of business plans described inside the
report.
5. It should also contain the methodology of the research which shows the overall process adopted to create
the report.
6. It is important that the report contains the possibility of errors in any of the module or process so that
immediate measures could be taken to cope up with these errors.
7. The report should contain the description of the questionnaires used in analysis and the way it has been
prepared.

8. The methodology used in the interviews should also be elaborated and what was achieved in this should also
be described.
9. If the information show that some aspects needs to predict the future trends then the reports should depict
that prediction. This prediction should have scale of success so that the accuracy could be judged
efficaciously. The report should also define each and every variable and element used in creating these
predictive analyses.
10. The report should be flexible enough to be changed accordingly. The analytical information described inside
the report should be maintained in such a way that there is no extra effort laboured if any strategy or process
it to be changed in future. It should necessarily mould the changes without changing the structure of the
report.
Contents of Research Report

The researcher must keep in mind that his research report must contain following aspects:
1. Purpose of study
2. Significance of his study or statement of the problem
3. Review of literature
4. Methodology
5. Interpretation of data
6. Conclusions and suggestions
7. Bibliography
8. Appendices
1. Purpose of study: Research is one direction oriented study. He should discuss the problem of his study.
He must give background of the problem. He must lay down his hypothesis of the study. Hypothesis is
the statement indicating the nature of the problem. He should be able to collect data, analyze it and prove
the hypothesis. The importance of the problem for the advancement of knowledge or removed of some
evil may also be explained. He must use review of literature or the data from secondary source for
explaining the statement of the problems.
2. Significance of study: Research is re-search and hence the researcher may highlight the earlier research
in new manner or establish new theory. He must refer earlier research work and distinguish his own
research from earlier work. He must explain how his research is different and how his research topic is
different and how his research topic is important. In a statement of his problem, he must be able to
explain in brief the historical account of the topic and way in which he can make and attempt. In his
study to conduct the research on his topic.

3. Review of Literature: Research is a continuous process. He cannot avoid earlier research work. He
must start with earlier work. He should note down all such research work, published in books, journals
or unpublished thesis. He will get guidelines for his research from taking a review of literature. He
should collect information in respect of earlier research work. He should enlist them in the given below:
• Author/researcher
• Title of research /Name of book
• Publisher
• Year of publication
• Objectives of his study
• Conclusion/suggestions
Then he can compare this information with his study to show separate identity of his study. He must
be honest to point out similarities and differences of his study from earlier research work.
4. Methodology: It is related to collection of data. There are two sources for collecting data; primary and
secondary. Primary data is original and collected in field work, either through questionnaire interviews.
The secondary data relied on library work. Such primary data are collected by sampling method. The
procedure for selecting the sample must be mentioned. The methodology must give various aspects of
the problem that are studied for valid generalization about the phenomena. The scales of
measurement must be explained along with different concepts used in the study. While conducting a
research based on field work, the procedural things like definition of universe, preparation of source list
must be given. We use case study method, historical research etc. He must make it clear as to which
method is used in his research work. When questionnaire is prepared, a copy of it must be given in
appendix.
5. Interpretation of data: Mainly the data collected from primary source need to be interpreted in
systematic manner. The tabulation must be completed to draw conclusions. All the questions are not
useful for report writing. One has to select them or club them according to hypothesis or objectives of
study.
6. Conclusions/suggestions: Data analysis forms the crux of the research problem. The information
collected in field work is useful to draw conclusions of study. In relation with the objectives of study the
analysis of data may lead the researcher to pin point his suggestions. This is the most important part of
study. The conclusions must be based on logical and statistical reasoning. The report should contain not
only the generalization of inference but also the basis on which the inferences are drawn. All sorts of
proofs, numerical and logical, must be given in support of any theory that has been advanced. He should
point out the limitations of his study.

7. Bibliography: The list of references must be arranged in alphabetical order and be presented in
appendix. The books should be given in first section and articles are in second section and research
projects in the third. The pattern of bibliography is considered convenient and satisfactory from the point
of view of reader.
8. Appendices: The general information in tabular form which is not directly used in the analysis of data
but which is useful to understand the background of study can be given in appendix.
Steps in writing a report

A research report must be well drafted so that it is seriously taken by others and all that have to be said are well said.
Reader orientation, purpose orientation, time orientation, technology orientation, etc are all needed. The steps in
writing a research report are presented below.
1. Organization of Thought: Organization of thought as to how the report be presented is the most
fundamental starting point in the journey of preparation of a research report. Ideas come before the mind eye.
These are thought over again and a frame of presentation is planned. This plan does not in itself constitute
style, but it is the foundation.
2. Acquaintance with the Research: Full acquaintance with research is needed. This is facilitated by notes. It
is desirable to make notes on separate cards or slips called form-facet. Accuracy and Adequacy are required
– The second facet of mastery over notes consists in the investigator’s complete control over the data, called
study facet, i.e., understanding each fact by itself and in terms of others and of the researcher’s own
thoughts; the notes to be compared; criticized and revalued in order to enable the investigator to direct and
organize the data in his own way and perhaps differently from what others have done.
3. First Draft: The first draft concentrates on substance, i.e., fullness of facts. All the facts of value are to be
brought together. In addition to fullness, accuracy of the facts incorporated into the text becomes necessary.
Another requirement is that there should be balance, proportion and development in facts. Importance is to
be given to the comprehensiveness of the report but not to the language and form. For writing the first draft
the researcher should have control over his notes and should think continuously over the problem. In a way,
the first draft is the most important of the different stages in reporting. This report may have to be re-written
a number of times and still it continues to remain only a working draft. There are three purposes in writing
the first draft, viz., to weave the material together for making clear connections, to assure the investigator
himself of a satisfactory organizations and fullness of the facts, and to avoid blank paper fright that may be
present in every young researcher.
4. Second Draft: After a lapse of some time from the completion of first draft, the revision is made for writing
the second draft. While drafting the second one, the researcher should concentrate largely on form and
language. The researcher should give the first draft, at this stage, a shape so that it can be readable, clear and

lucid. Considerable trimming or editing will have to be done to make the writing precise, concise and brief.
Finally, at the second draft stage, critical evaluation will have to be made of all that has been written-facts,
findings, conclusions and recommendations. To make the report readable and effective, the language plays
major part.
5. Third Draft: The final stage in drafting is the preparation of final report. It concentrates mainly on the finish
and final touches, i.e. on documentation and polish to make the report weighty, authoritative, convincing and
attractive. Documentation indicates the references to the sources, other previous and current work and view,
additional data and discussion and suggested further reading on the specific problem as handled by the
researcher. In other words, it indicates the thoroughness of the investigation and on the other a guide to
further work. A good research paper depends not only upon the amount of reading or notes taken or upon the
form of presentation but also upon the accurate and thorough recording of the investigation.
Footnotes and Bibliography
Footnotes and endnotes: The biggest difference between footnotes and endnotes is where the notes are
placed. Footnotes appear at the bottom of the page for any notes that apply to each specific page; endnotes appear
collectively at the end of a paper, starting on a separate page and labeled as “Endnotes.”
What is the purpose of a footnote or endnote? Footnotes and endnotes are both ways to add clarifying
information into a document. They provide important details with which the reader may be unfamiliar. They often
save the reader from looking up unfamiliar words, people, places or sources. The footnote takes the form of a
superscripted number, just after a paraphrased piece of information. Subsequently, a cross-reference to this number is
inserted at the bottom of the same page. In fact, for dissertations and theses, many writers use footnotes to keep track
of their citations, adding a short note of what exactly each one adds to the paper. The biggest difference between
footnotes and endnotes is where the notes are placed. Footnotes appear at the bottom of the page for any notes that
apply to each specific page; endnotes appear collectively at the end of a paper, starting on a separate page and
labeled as “Endnotes.”
Bibliography: a list of the books referred to in a scholarly work, typically printed as an appendix. Bibliography as a
discipline, is traditionally the academic study of books as physical, cultural objects; in this sense, it is also known
as bibliology describe bibliography as a twofold scholarly discipline—the organized listing of books (enumerative
bibliography) and the systematic description of books as physical objects (descriptive bibliography).
General Rules for Footnotes
Books should include:
• Author’s full name (as it appears on the title page of the book)

• Complete title
• Editor, compiler, or translator (if any)
• Name of series, volume or series number (if any)
• Number of volumes (if more than one)
• City, publisher, and date of publication
• Volume number and page number
Articles should include:
• Author
• Title of article
• Periodical
• Date of periodical
• Page numbers of article
Unpublished material should include:
• Author
• Title (if any)
• Type of material
• Where it may be found
• Date
• Page number (if any)
General Rules for a Bibliography
Footnote style can be changed into bibliographic style by transposing the author’s first and last names, removing
parentheses from facts of publication, omitting page references, and repunctuating with periods instead of commas.
Books should include:
• Name of author(s), editors, or responsible institutions
• Full title, including subtitles if one exists
• Series (if any)
• Volume number
• Edition (if not the original)
• Publisher’s location and name
• Date of publication
Articles should include:
• Name of author
• Title of article
• Name of periodical
• Date of issue
• Pages

MODULE: IX
ADVERTISING RESEARCH
Introduction to Advertising Research
Advertising research is a specialized form of marketing esearch conducted to improve the efficiency of
advertising. Advertising research is the systematic gathering and analysis of information to help develop or
evaluate advertising strategies, ads and commercials, and media campaigns. Advertising research is as old as
advertising in India and key advertising decisions are made based on advertising research. Many major marketing
campaigns are launched in India and advertising research is used for many of these campaigns.
WhyisAdvertising ResearchImportant?
The crafting of advertising: Advertising research can be implemented not only to measure the
potential/effectiveness of a specific advert, but to clarify the need for advertising in a specific audience. What kind of
advertising is liked by the consumers of our products and services? What values should be communicated? What
type of humor should be used? What kind of lifestyle should be reflected? Research into the crafting of advertising
allows for the creation of adverts, which provide a clearer and more attractive delivery of your desired message to
your audience.
It defines which market to best target with your advertisements,
It conveys the identity of the ideal consumer base in which to advertise your product or service,
It determines which advertising medium will make the greatest impact on these consumers,
It identifies whether or not your targeted consumers are receiving your advertisements with the intended message.
There are four stages where Advertising Research can take place:
1. Beginning of creation process (Copy Research)
2. End of creation process (Copy Testing)
3. End of the production stage (Pretesting)
4. After the campaign has been launched (Post Testing)

I. Copy Research
a. Concept testing, b. Name testing, c. Slogan testing
Copy Research
It starts with the beginning of creation process. Account team wants assurance that the ad does what it is
supposed to do. The client wants to see how well a particular ad scores against the average commercial of its
type. Copy research is a good idea most of the time--it can yield important data that management can use to
determine the suitability of an ad concept and basic idea.
Purposes of Copy Research

1. Idea Generation. An agency is often called on to invent new, meaningful, ways of presenting a brand to
a target audience.
2. Concept Testing seeks feedback designed to screen the quality of new ideas or concepts.
3. Audience Definition. Once a target segment have been identified, advertising planning can proceed with
a developing a message that will be meaningful to the consumers.
4. Audience Profiling. Creative need to know as much as they can about the people to whom their ads
will speak.
Evaluative Criteria in Copy Research

a. Clarity : Do consumers understand the ad?
b. Knowledge: Tests of recall and recognition
c. Attitude change: Determine where a brand stands
d. Feelings and emotions
e. Physiological changes: Changes in eye movements or respiration
f. Behavioral intent: Do people say they will buy the product

Copy Research Methods
Copy Research Methods

• 1. Concept Testing
a. Card concept
b. Poster test
c. Layout test
• 2. Name testing
• 3. Slogan testing
•
1. Concept Testing
Concept testing involves testing the “idea” of something, rather than the actual thing itself. The concept is
communicated with a rough illustration or photograph, along with a written description. Think of a concept as a
rough print ad, although concepts can be presented in storyboard or video form.
Concept testing is widely used to evaluate new product ideas, so that potentially successful new products can be
identified early on. Then limited research and development resources (and limited marketing resources) can be
focused on the new product concepts with the greatest probability of consumer acceptance in the marketplace.
Concept testing can also be used to help evaluate advertising concepts, promotional concepts, packaging concepts,
and strategy concepts.
Concept testing is used to generate communication designed to alter consumer attitudes toward existing products.
These methods involve the evaluation by consumers of product concepts having certain rational benefits, such as "a
detergent that removes stains but is gentle on fabrics," or non-rational benefits, such as "a shampoo that lets you be
yourself." Such methods are commonly referred to as concept testing and have been performed using field surveys,

personal interviews and focus groups, in combination with various quantitative methods, to generate and evaluate
product concepts.
The concept generation portions of concept testing have been predominantly qualitative. Advertising professionals
have generally created concepts and communications of these concepts for evaluation by consumers, on the basis of
consumer surveys and other market research, or on the basis of their own experience as to which concepts they
believe represent product ideas that are worthwhile in the consumer market.
The quantitative portions of concept testing procedures have generally been placed in three categories:
a. concept evaluations: where concepts representing product ideas are presented to consumers in verbal or
visual form and then quantitatively evaluated by consumers by indicating degrees of purchase intent,
likelihood of trial, etc.,
b. Positioning: which is concept evaluation wherein concepts positioned in the same functional product class
are evaluated together, and
c. Product/concept tests: where consumers first evaluate a concept, then the corresponding product, and the
results are compared.
Types of Concept Testing:
a. Card concept test– Creative strategies are presented to respondents in the form of headline, followed by
body copy placed on a white card for review. Each concept is placed n the separate card.
b. Poster test: This is similar to card test but expands illustrations and copy and places them on a large poster
instead of a white card.
c. Layout test: Layout test involves showing a rough copy of a print ad or artwork for a TV ad. Layout tests
are more finished than a poster tests in that they use the total copy and illustration as they will appear in the
finished ad. Additionally, whereas a card or poster test measures the appeal of the basic concept, the purpose
of the layout test may e to measure more subtle effects such as communication, understanding and confusion.
2. Name testing
Starting with the right campaign name (and logo) is the cornerstone of Ad campaign. A good name to identify a Ad
campaign or distinguish from others must be unique and original, yet capable of carrying a favorable message to
motivate the customer to have dealings with that company. Creating such a name is an art as well as a science with
rules and guidelines rooted in sociology, psychology, semantics, and the law. Simply put, a good Ad campaign name
gives a good first impression and evokes positive associations with the brand.
3. Slogan testing:

A slogan, a tagline etc. of a product or service is tested by a manufacturer or researcher. As the samples are informed
about the product or service, it enables them to form a connection between the proposed slogans and taglines and
products or services. Rating scales are used to choose the most preferred slogan.
Slogans are also tested in a similar fashion where the respondents are given details about the product or service and
chose the best fit.
The purpose of the slogan testing is to find out whether the slogan achieves the following:
1. Aid memory recall: It should be easy and pleasant to remember.
2. To describe the use of a product.
3. To suggest the product’s special advantage or unique benefit.
II. Copy testing measures and methods:
Copy testing start at the end of creation process and before the production start. Copy testing is a general class of
tests that evaluate and diagnose the communication power of an advertisement – either broadcast (television, radio),
print (newspapers, magazines), or more recently, the Internet.
When Used
Copy tests are an integral part of the creative development process, and (of necessity) always follow the development
of one or more advertising alternatives. These alternatives attempt to embody an advertising strategy that has been
identified through previous phases of research.
Copy Testing definition: Research that measures responses to marketing communication copy in a test environment
to evaluate the copy's effectiveness in fulfilling the intended objectives. Copy testing is a method used by advertisers
to see whether or not an ad will work once it is produced. The premise is that exposure to an ad should affect the way
a consumer perceives a product or service.
By conducting copy testing, advertising campaigns can be revised and sometimes corrected. It is believed that by
using copy testing an advertising agency will be able to lower the chances that their advertising campaign will be
unsuccessful.
Copy tests are usually conducted

a. After a strategic/positioning study indicated an opportunity for the brand that, in turn, feed copy
development
b. After qualitative research (focus groups, in-depths) has been used in the creative development
process; or
c. After tracking research has indicated that the current campaign is no longer building awareness or
image. Practically speaking, copy tests can be conducted at any time there is new advertising that
needs to be evaluated.
Copy testing questions

• What message are we really communicating?
• Is anyone offended by our advertising?
• Is our advertising clear and easy to understand?
• Does our advertising project the right image?
• Are we saying the right things?
Techniques of Copy Testing for preparing rough Ads for research:
a. ANIMATICS: This is art work in the form of either cartoons or realistic drawings showing limited
movement.
b. PHOTOMATICS: These are photographs shot in sequence still images are worked into a sequence. Like a
storyboard, it shows staccato frames to show how the story goes. Various elements can be changed in this
method and as you look at the image you can decide what changes need to be made. This makes
manipulation easier and involves lesser time and technology.
c. LIVEMATICS: This involves filming or taping live talent and is very close tote finished commercial. This
method is useful because it can showcase the entire range of emotions that the respondents display when
shown the product. This can be used to convey the mood of the final commercial when the real model will be
used.
d. RIPOMATICS: The conversion is made from footage of other commercials taken from ad agency
promotional reels. They are usually used for experimentation on visual techniques.(e.g. Prints taken from
foreign miniature samples and customized).
Copy Test Designs

There are two basic copy testing approaches for TV – – off-air, and on-air.
(a) Off-air: Off-air tests focus on whether the copy effectively communicated its intended strategy, and provides
more diagnostic information on specific copy elements than on-air tests. Off-air approaches are "forced exposure"

tests (usually in a mall or theater environment), in which respondents view a clutter reel of competitive ads, with the
test ad in the middle. Because a lower state-of-finish is acceptable, off-air stimuli are less costly, and these tests are
more often used at an earlier stage of the copy development process.
(b) On-air tests: On-air tests are executed on an unused cable TV channel among people who have been recruited to
view a fictitious ½-hour pilot TV show. Respondents see ads for other categories, but see only one test ad. On-air
tests excel at evaluating copy performance in a real-world setting, and whether the advertisement "broke through"
(i.e., was recalled).
Similar off-air approaches are used for radio testing (no "on-air" versions exist). Print testing usually involves
placement of the test ad in a mocked-up version of a national magazine, or can also involve eye-tracking to
determine which elements were seen while reading the ad.
Various methods of Copy testing
1. Direct questioning
2. Focus Groups
3. Direct Mail Tests
4. Statement-comparison tests
5. Qualitative interviews
6. Free Association tests
1. Direct questioning: Direct questioning - elicits a full range of responses from which researchers can infer
how well test advertising messages convey key copy points. It is especially effective for testing alternative
ads in the early stages of development. The heart and soul of copy research is the depth interview, a lengthy
(one to two hours), one-on-one, personal interview, conducted directly by the copy researcher. Much of the
power of the depth interview is dependent upon the insight, sensitivity, and skill of the researcher. The
interviewing task cannot be delegated to traditional marketing research interviewers—who have no training
in motivational techniques.
2. Focus Groups: Definition: limited to those situations where the assembled group is small enough to permit
genuine discussion among all its members“. Interviewing more than one person at a time sometimes proves
very useful; some young people need company to be emboldened to talk, and some topics are better
discussed by a small group of people who know each other. Interviewer asks group members very specific
questions about the test ads after considerable research has already been completed. Focus group can be

define as a "carefully planned discussion designed to obtain perceptions about the test copy in a permissive,
non-threatening environment"
3. Direct Mail Tests: A group of prospects are selected from the mailing list randomly and are sent different
test ads. Then to measure the response, the orders against each lot are noted.
4. Statement-comparison tests: In Statement comparison, respondents are given different sentences related to
the various aspects of the test ads and asked to give their opinion.
5. Qualitative interviews: The heart and soul of copy research is the depth interview, a lengthy (one to two
hours), one-on-one, personal interview, conducted directly by the copy researcher. Much of the power of the
depth interview is dependent upon the insight, sensitivity, and skill of the researcher. The interviewing task
cannot be delegated to traditional marketing research interviewers—who have no training in motivational
techniques. Unlike conversations in daily life, which are usually reciprocal exchanges, qualitative interviews
involve an interviewer who is in charge of structuring and directing the questioning. In qualitative
interviews, open-ended responses to questions provide the evaluator with quotations, which are the main
source of raw data. It reveals the respondents' levels of emotion with respect to copy. Qualitative interviews
also promote understanding and change, the emphasis is on intellectual understanding of the test copy rather
than on producing personal views. The task for the qualitative evaluator is to provide a framework within
which people can respond in a way that represents accurately and thoroughly their point of view about the
copy."
6. Free Association tests: Free association utilizes the ‘projective hypothesis’ by encouraging the
respondent to provide the first set of words or associations that comes to mind after their exposure to a
stimulus - such as a product category, brand name or brand symbol Then follow up with probes and
amplifications. Initial reactions tend to be pragmatic but later ones show paths to emotional ideas
▪ Ask respondents to say what comes into their head when exposed to the copy
▪ Then follow up with probes and amplifications
▪ Initial reactions tend to be pragmatic but later ones show paths to emotional ideas
▪ Verbal association tests help to obtain information about the attitude of a respondent to certain idea or
concepts named by the words of the respondent's native language. A typical procedure is as follows:
participants are asked to respond to a copy with the words that the stimulus evokes in their mind.

III. Pretesting
Test of the Ads before its release to Media
Pre-testing is a type of research that involves gathering reactions to messages and materials prior to release in Media.
Pre-testing is the stage of advertising research in which a complete ad is tested. It is important that the objectives of
pre-testing research relate back to the agreed advertising strategy. Pre-tests may occur at a number of points, from as
early on as idea generation to rough execution to testing the final version before implementing it. More than one type
of pre-test may be used. A number of variables can be evaluated in pre-testing, including the ability of the ad to
attract attention, comprehension by the reader/viewer, recall, persuasion, attitude toward the brand, credibility and
irritation level. Pre-tests should be used as guides and not as absolute predictors of winners or losers.
The purpose of pre-testing is as follows:

• To spot errors in the copy
• To make communication more effective
• To design the ad better
• To reduce wastage in advertising
• To ensure that the money is spent prudently.
In pre-testing it is always best to use multiple measures to evaluate. In particular, the multiple measures
recommended are:
1. Impact: The ability of the advertising to be noticed and remembered.
2. Communication: The ability of the advertising to impart a message, which is clearly and uniformly understood by
the target market.
3. Relevancy: The ability of the advertising to persuade consumers that their needs will be met by the product.
4. Affinity Building: The ability of the advertising to generate consumer affinity (liking) for both the advertisement
and the brand being advertised.
5. Call to Action: The ability of the advertising to motivate consumers to try or re-buy the brand being advertised.
6. Brand Building Ability: The ability of the advertising to create, change or reinforce certain key predetermined
brand attributes (features, benefits, feelings) as encompassed in the brand’s positioning objectives and strategy.
7. Involvement: The ability of the advertising to involve the consumers, or keep him/her interested.
8. Brand fit: The ability of the advertising to demonstrate brand fit, or keep him/her interested.

9. Creative Diagnostics: The pre-test should elicit a host of creative diagnostics to help answer the “whys?” that
always emerge from behind the above measures.
Types of Pre-testing
1. Print Pre-testing
2. Broadcasting Pretesting
3. Physiological pretesting
A. Print Pretesting
a. Consumer Jury Test, b. Portfolio test, c. Paired comparison test, d. Order-of-merit test, e. Mock magazine test, f.
Direct mail test.
1. Direct questioning
2. Focus group
3. Direct mail test.
4. Portfolio test
5. Paired comparison test
6. Order-of-merit test
7. Mock magazine test
1. Direct questioning: Direct questioning - elicits a full range of responses from which researchers can infer
how well test advertising messages convey key copy points. It is especially effective for testing alternative
ads in the early stages of development. The heart and soul of copy research is the depth interview, a lengthy
(one to two hours), one-on-one, personal interview, conducted directly by the copy researcher. Much of the
power of the depth interview is dependent upon the insight, sensitivity, and skill of the researcher. The
interviewing task cannot be delegated to traditional marketing research interviewers—who have no training
in motivational techniques.
2. Focus Groups: Definition: limited to those situations where the assembled group is small enough to permit
genuine discussion among all its members“. Interviewing more than one person at a time sometimes proves
very useful; some young people need company to be emboldened to talk, and some topics are better
discussed by a small group of people who know each other. Interviewer asks group members very specific
questions about the test ads after considerable research has already been completed. Focus group can be

define as a "carefully planned discussion designed to obtain perceptions about the test copy in a permissive,
non-threatening environment"
3. Direct Mail Tests: A group of prospects are selected from the mailing list randomly and are sent different
test ads. Then to measure the response, the orders against each lot are noted.
4. Portfolio test: Along with the regular advertisements some dummy copies are kept in a folio. Then the
consumer-sample sees the folio. The consumer is then asked about what he has seen in each ads. The ad
giving minimum playback is considered the best. But then it is necessary to observe whether the chosen
advertisement is dummy or regular. If found dummy the actual one is improved on the same lines.
5. Paired comparison test: In the paired comparison test at a time two ad copies are compared one-to-one.
Every single ad is compared with all others. Sources are recorded on cards. They are summed up. The
winner gets the highest score. This technique is easier than order of merit. Till ten copies, there is good
accuracy; which later decreases. The number of comparisons one is required to make with the help of the
following formula: n. (n-l) / 2. Where n= the number of ads to be rested.
6. Order-of-merit test: Here the ranking of the advertisements are done by a group of people called the jurors.
The point system is given to an average of 4-5 copies that they are given to rank. The order of merit is the
one, which determine which the best advertisement by the jurors is and which has been rated as the worst.
The points given by the jurors are then added together to determine which is the ad, which has got the
maximum points. This is the one that is the chosen one.
7. Mock (“dummy”) magazine test: Unlike the above method of keeping the advertisements in a folio, test
ads are introduced in a real magazine to an experimental group to read. The control group is also exposed to
the same magazine, but is without test ads. Later a recall test is conducted to assess the effectiveness о I test
ads Readers are told the magazines publisher is interested in evolutions of editorial content and asked to read
the magazines as they normally a would. In an improvement on the portfolio test, ads are placed in “dummy”
magazines developed by an agency or research firm. The magazines combine regular editorial features of
interest to the reader, as well as the test ads, and are distributed to a random sample of homes in
predetermined geographic arrears. Then they are interview-generating capabilities of the ads are assessed.
The advantage of this method is that it provides a more natural setting than the portfolio tests. Readership
occurs in the participant’s own home, the test more closely approximates a natural reading situation, and the
reader any go back to the magazines, as people typically do.
B. Broad casting Pretesting

a. Trailer tests:
b. Theatre test:
c. Live telecast tests:
d. Clutter test
a. Trailer tests: Two groups of customers are considered. Both are given discount coupons to purchase the
brand under consideration and are invited to shop in a real life shopping environment, a departmental store, a
shopping centre etc. The prospects are invited to the display their products. Now one group is shown the test
ads whereas the other group is not. The redemption rate of coupons is measured for both groups which may
give an idea about the effectiveness of test ads.
b. Theatre test: During a regular show in a theatre, advertisements are shown in regular slots and are tested for
recall. The audiences in the theatre are unaware of the tests and are asked to recall the ad. Consumers in the
theatre are asked then to remember the ad (or maybe even all the ads) – to check if the ad is clutter breaking.
c. Live telecast tests: Ads are put on air either by narrow casting or live telecasting. These ads are test ads, and
not the regular ads. Later, viewers are interviewed to know their reactions. Here the inaccuracies of artificial
testing environment are not encountered.
d. Clutter test: Advertising or marketing clutter refers to the large volume of advertising messages that the
average consumer is exposed to on a daily basis. This phenomenon results from a marketplace that is
overcrowded with products leading to huge competition for customers. It is the method of pre-testing in
which commercials are grouped with non-competitive control commercials and shown to prospective
customers to measure their effectiveness in gaining attention, increasing brand awareness and
comprehension, and causing attitude shifts. Commercials are shown with non competing control ads to
determine attitude shifts and detect weaknesses.
C. Challenges to pre-testing
Example: The Halo effect
HALO EFFECT: The tendency for an impression created in one area to influence opinion in another area
Halo effect is the greatest limitation of pretesting. When we like or dislike one aspect of the ad good, we are likely
to make a similar evaluation in other aspects of the ads. Factors other than advertising creatively and/or presentation
may affect recall during pre-testing. Interest in the product or product category, the fact that respondents know they

are participating in a test, or interviewer instructions (among others) may account for more differences than the ads
itself.
In marketing, a halo effect is one where the perceived positive features of a particular item extend to a broader brand.
It has been used to describe how the iPod has had positive effects on perceptions of Apple Computer are other
products. Sometimes participants rate an ad good on all characteristics because they like a few and overlook specific
weaknesses. This tendency, called the halo effect, distorts the ratings and defeats the ability to control for specific
components. Of course, the reverse may also occur-rating an ad bad overall due to only a few bad attributes. The
phrase was first coined by Edward Thorndike, a psychologist who used it in a study published in 1920 to describe the
way that commanding officers rated their soldiers. He found that officers usually judged their men as being either
good right across the board or bad. There was little mixing of traits; few people were said to be good in one respect
but bad in another.
Other challenges to pretesting:

a. Recall may not be the best. Some researchers argue that for certain types of products (those of low
involvement) ability to recognize the ads when shown may be better measures than recall.
b. Limitation of the juror: Jury selected may not be competent enough to evaluate the ad copy.
c. Limited concepts: Even the quantity of concepts exposed to the respondents is limited. Here creativity is
restricted.
d. Subjective reaction on the part of consumers noticed by researchers when attempting to analyze consumer
attitudes and their relationship to the market structure, particularly in the area of advertising or brand
evaluation. For example, in theory, an individual should be able to evaluate each feature of a given brand
independently and should have no difficulty giving a high rating to one feature while giving another a low
rating. However, in practice, researchers have noticed that respondents have a tendency to give a high rating
to all the brand's features if they like the brand, and a low rating to all the features if they do not like the
brand. This is known as a halo effect.

4. Post-testing
Research after the ads are release in the media
a. Recall tests, b. Recognition test, c. Triple association test, d. Sales effect tests ,e. Sales results tests, f. Enquires test
Post-Testing:
This is the testing, which is done after the ad copy has come out in the media and the audience has seen the
advertisement.
Post-testing typically involves interviewing readers to determine how many remember seeing a particular ad, if they
read it, and what they remember about it. Post-testing or Ad tracking, as otherwise known, can be customised or
syndicated. Tracking studies provide either periodic or continuous in-market research monitoring a brand’s
performance, including brand awareness, brand preference, product usage and attitudes. Advertising tracking can be
done by telephone interviews or online interviews—with the two approaches producing fundamentally different
measures of consumer memories of advertising, recall versus recognition.
Purpose of Post Testing:

The purpose of ad tracking is generally to provide a measure of the combined effect of the media weight or spending
level, the effectiveness of the media buy or targeting, and the quality of the advertising executions or creative. Some
newer forms of online tracking, separate the issues of the quality of the creative component from the quality of the
media buy and instead focus on the relative performance of ads versus the competitive ads that are airing at the same
time. All forms of tracking data are used to provide inputs to Marketing Mix Models which marketing science
statisticians build to estimate advertising return on investment (ROI).
Some ad tracking studies are conducted by telephone while others are conducted on the Internet. The two approaches
produce very different measures of advertising awareness because the interviews tap into consumer memories of
advertising using fundamentally different measures, recall versus recognition.
Post-testing measures the following factors:

▪ Has the advertisement campaign result in sales?
▪ Has it created memorability for the brand name?
▪ Has it created positive image and a favorable attitude towards the company and the brand?
▪ How much advertising is necessary on a continued basis, to sustain the same level of consumers’ interest in
the brand?
▪ Are the consumers convinced that the brand is superior of competitors

The purpose of post-testing is as below:
• To find out the impact of an ad in terms of it being noticed, seen and read.
• To find out its credibility.
• To find out its comprehension
• To measure its memorability.
• To assess its effect on buyers.
• To assess its fit with the promotion and marketing mix
• To assess whether it has achieved its objectives.
• To assess the relative effectiveness of different copies and media plans.
• To improve future advertising efforts.
The post-testing methods.
• 1. Recall tests
• 2. Recognition test
• 3. Triple association test
• 4. Sales effect tests
• 5. Enquires test
• 6. Sales results tests
This actually gives us an idea about the actual performance of the ad in terms of exposure, perception,
communication and sales effect. We can assess the credibility and comprehension of the ads.
Few of the methods of this type of tests are:
1. Recall tests: In this type of tests the individuals are asked to answer about the ads entirely on the basis of
their memory. It could be aided recall, where they are given few cues to help them recall and unaided
recall, which of course is based on memory alone.
Unaided Recall Tests: This is a kind of recall test where the respondents are not given any clue to recall
the ad. This proves to be more demanding than the aided recall, as respondents recalling the brands
without help shows a greater degree of penetration of the ad.
Types of Unaided Recall:
• Day-After- Recall (DAR): One day after the advertisement appears the readers or viewers are
questioned after that.

• Total Prime Time (TPT): Here the main item of research is viewer’s television viewing time.
2. Recognition test: It determines the readership of advertisements in the publications and is conducted by
personal interviews with readers and magazines or newspapers. The interviewers locate the readers of
the particular issue of the publication in questions. They then go through the publication, page by page,
with the respondent indicating those advertising elements which he or she recognizes as having read.
The scores developed by the recognition method indicate the proportion of qualified readers of a
publication who claim to have “seen” (noted), “read some” or “read most” of the individual
advertisements. The above describes the method used for post-test, In a pre-test, a portfolio of
advertisements is used. The respondent is asked to go through the portfolio, then it is taken away, and the
respondent is asked; What advertisements do you remember seeing?' the recognition test may thus be
combined with the recall or impact test which has been described below.
3. Triple association test: This test measures how much a viewer or reader has learnt about the brand from
the advertisement. The respondent is told about some product feature or benefit and he is to find the
brand name for that. For example if a respondent is asked that which toothpaste ad shows that it has salt
in it and the respondent says Colgate active salt we understand that the learning objective of the
advertisement is successful. Here the respondent is given certain cues wherein he can relate to a certain
brand. Another example – “Thanda Matlab”, if the answer is coca cola, then it is correct. And if the
respondent is able to connect the product with the company then it is a triple association.
4. Sales effect tests: They measure the various stages of buyer awareness, preference, buying intention and
actual purchase in relation to actual advertising effort.
5. Sales results tests: The additional sales generated by the ads are recorded. It is difficult however to
correlate an increase in sales to advertising alone. Following are some of sales results tests which
measure the additional sales generated by the ads. Past Sales before and after the ad are recorded and the
difference is accounted for as an impact of advertisement. An audit may be run on the dealers inventory
before and after the advertisement.
6. Enquires test: Some consumer durables companies issue coupons as a part of the advertisement copy
and when they are circulated to the customers, they are supposed to fill it up and send it back to the
company. So when the customers are filling in the coupons they are seeing the ad copy as well. So from
the number of coupons received estimation can be made as to the number of the readership of the
advertisement.

Physiological rating scales
1. Pupil metric devices,

2. Eye-movement camera,
3. Galvanometer,
4. Voice pitch analysis,
5. Brain pattern analysis
Advertisers also have access to a variety of physiological testing methods that measure involuntary responses to a
specific element of an advertisement. In this test, rather than what respondents say, what is considered more
important is the physiological reaction of the respondents. Physiological measures detect how consumers react to
messages, based on physical Reponses.
1. Pupil metric testing: Perceptoscope or Pupilometric Devices Record changes in pupil’s dilatation.
Dilatation indicates reading and attention. Contraction shows his dislike to what is being read. It evaluates
interesting appealing visual stimuli. It is developed by Eekhard Hess and James Polk. Left eye is
photographed o record dilatation.
Physiological Test Measures.
2. Eye-movement camera: It is used in advertising research; this equipment tracks the movement of the eye
over press advertisements, showing the path which the eye takes and indicating the sequence of interest that
the features arouse. It measures the eye movement over the layout of test ads. The route taken by the eye is

noted. The pauses are noted. The areas of interest and attention can be judged.
Eye Movement Research

➢ Objective:
– To track eye movements to determine . . .
▪ What readers read on print ads
▪ Where attention is focused in TV commercials
➢ Method:
– Eye movements are tracked using . . .
▪ Fiber optics
▪ Digital data processing
▪ Advanced electronics
– Scan paths on
▪ Print ads and material
▪ Billboards
▪ Commercials
➢ Output:
– Relationships among what is . . .
▪ Seen
▪ Recalled
▪ Comprehended
Using EyeTracking to test ads

3. Galvanometric Response: It measures skin responses to ad stimuli like perspiration by gland activity through
palm. More perspiration decreases the resistance and faster current passes. The tension is generated. The greater
it is, the more effective the ad is. The technique is of limited use for ads of a very sensitive nature.
Galvanic skin response (GSR), [aka Electodermal response (EDR)]
▪ Sensitive to affective stimulation
▪ May present a picture of attention
▪ May measure long-term recall
▪ Useful in measuring effectiveness
4. Voice pitch analysis

A type of analysis that examines changes in the relative frequency of the human voice that accompany
emotional arousal. Greater the deviation from the person’s normal (baseline) voice, the greater the emotional
intensity of the person’s reaction to a stimulus, such as a question. Used in packaged research, to predict brand
preference, and to determine predisposition to buy a product. It is also now used to measure consumers’
emotional responses to advertising. How ever, the validity of Voice Pitch studies is questionable.
5. Brain Wave Research:

Brain pattern analysis or Brain wave analysis equipment are non-invasive and resembles a pair of headphones. It
takes brain wave measurement continuously from the surface of the head and converts them into an Engagement
Index (EI) five times per second through a proprietary algorithm NASA. It helps in evaluating winners from
also-rans, which ads do a better job of engaging the viewers. Brain waves measure the amount of energy being
produced by the brain moment-by-moment in real time, as a consumer watches an ad. The first Picture Sort is
called the Flow of Attention because it is a measure of selective attention and is, in fact, most predictive of the
attention score of an ad. But because visual recognition is collected after the fact, some minutes after images
have been sorted out by the brain and encoded into long-term memory, the Flow of Attention graph can also be
interpreted as a map of remembering and forgetting. The higher a picture is plotted on a Flow of Attention graph
the more a consumer audience remembers that image.

MODULE: X
MARKETING RESEARCH
1. Introduction to Marketing Research

2. New product research,
3. Branding Research,
4. Pricing research,
5. Packaging research,
6. Product testing
Introduction to Marketing Research
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.
“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”.
(AMA-American Marketing Association).
Market research gives companies insight into how their market may react to these changes without the risk and
expense of implementing them. Oftentimes market research reveals serious flaws in a business plan that must be
corrected before launch; other times it confirms existing assumptions. Market research is about listening to people,
analysing the information to help organisations make better decisions and reducing the risk. It is about analysing and
interpreting data to build information and knowledge that can be used to predict, for example, future events, actions
or behaviours. This is where the real skill and value of market research lies.

Nature/Features of Marketing Research:
1. Continuous process: Marketing research is not only continuous but also a scientific and systematic process.
It is scientific and systematic because it has well-defined procedures. It is a process of generating and
evaluating data, and then refining it. It is professionally organized. It is a continuous process because every
firm is faced with problems and opportunities.
2. Wide scope: Marketing is a specialized activity. It encompasses several functions. Thus, marketing research
has a wide scope. It includes product research, market research, consumer research, promotion research,
international market research, price research and distribution research.
3. Aid to decision-making: It helps the managers take practical decisions. Decisions based on experience and
research is better than decisions based on intuition. Functions such as description, evaluation, explanation
and prediction by the marketing researcher help in practical decision-making. Thus, it an essential tool not
only for marketing managers but also for other functional managers.
4. Uncertainty of conclusions: Consumer is the focal point of marketing research. However, consumer
behaviour is difficult to judge precisely. It is not a physical science, but social science. Due to this inherent
nature, it suffers from certain levels of inaccuracy.
5. Applied research: Marketing research is not a fundamental research because it does not reveal conceptual
aspects. It is an applied research, as it begins with defining or identifying a problem or opportunity, and ends
with a follow-up of recommendations made from research. Moreover, it is related to the commercial aspects.
6. Commercial intelligence: Marketing research is equivalent of military intelligence. It provides vital insights
and information of product, price, place and promotional aspects. It is the soul of modem marketing
management.
7. Statistical tools: Various mathematical and statistical tools are used for data analysis and interpretation.
Percentages, ratios, averages, z-test, t-test, chi-square tests, etc. are used for presentation and interpretation
of findings. The use of computer software has made it more convenient for in-depth analysis, cross-sectional
studies, detection of errors in sampling and questionnaires.
8. Research approaches: A researcher has several options of research methodology. Methods include the
field survey method, the observation method and the experimental research. The choice depends on factors
such as time availability, funds, number of respondents to be covered, location of respondents and literacy
levels.
9. Links a company to the consumers and public: Marketing research is a function that links a company to
the consumers, customers and public, through information. It evaluates marketing actions, marketing
performances and marketing processes. This evaluation results in collection of information that brings
company closer to its customer and society.

1. New product research
New product research helps you to understand what customers really want. Thus, allowing you to customize the
products according to the customer’s needs and offers you a competitive edge. New product research help companies
refine their product designs and strategies and also drive innovation, keeping them one step ahead in competition.
Product definition is a critical starting point in the development of any new product. New ideas for products and
services are conceived every day — yet many of them fail because they weren’t properly introduced to the market.
New Product research helps ensure both that the product launch will hit the ‘right buttons’ in the consumer, and
ensures that the product idea itself addresses the (often unspoken) desires of the customer. In general, we can speak
of seven different steps in the New Product research process: understanding the market and the competition,
targeting the customer, devising a unique value proposition, determining marketing strategy, testing the product and
overall approach, rolling out the campaign, and keeping track of the overall lifecycle.
Types of New product Research

1. New Markets/ Existing Products research: Every company has a product that can travel. It can travel to
new geographical markets or to new industry segments that have not been tapped before. New markets
wherever they are - new countries or new segments - carry risk. New Markets/ Existing Products research
help collect information on potential customers and markets wherever they are in the world. With this
knowledge a company can build growth and value more quickly and more securely than by working from
guesswork.
2. Existing Markets/Existing Products research: For many companies, the first place to look for more sales
is amongst existing customers. Current customers have already made the ultimate gesture of approval and
paid money to buy your products. A bit more persuasion and they may buy more. However, how many
companies know their customer so well that they know if they have every available piece of business? Ask
yourself the following questions:
a. How much is each customer buying of the products (or services) I sell to them?
b. What share do my competitors and I have of each customer's account?
c. What does the customer think of me against the other suppliers it could or does use?
d. What would make each customer buy more

Existing Markets/Existing Products research answer these questions. This can be achieved by relatively
straightforward research. All that require is a customer list and a good briefing. An appropriate questionnaire
is designed; interviews are carrying out and report on how to win more business.
3. New Markets/New Products research: The most dangerous territory of all is that of new markets and new
products. Here market research is a must.
4. Existing Markets/New Products research: The assets of every company are its customers. Existing
customers know and trust the company sufficiently well to do business. So much so, they may give serious
consideration to buying a new product or service from the company. In the research researcher find the
opportunities for new products or services with existing customers as part of its new markets programme. In
this method researcher take a brief during which he would discuss the products company want to sell and
learn about their current customer. Researcher would then design a programme of interviews that could
include face to face and telephone contacts to determine how much business company could win and at what
price.
4. Product specification:
• Organizing Customer Needs: Once customer needs are gathered, they then have to be organized.
The mass of interview notes, requirements documents, market research, and customer data needs to
be distilled into a handful of statements that express key customer needs. Affinity diagramming is a
useful tool to assist with this effort. Brief statements which capture key customer needs are
transcribed onto cards. A data dictionary which describes these statements of need are prepared to
avoid any misinterpretation. These cards are organized into logical groupings or related needs. This
will make it easier to identify any redundancy and serves as a basis for organizing the customer
needs. In addition to "stated" or "spoken" customer needs, "unstated" or "unspoken" needs or
opportunities should be identified. Needs that are assumed by customers and, therefore not
verbalized, can be identified through preparation of a function tree. Excitement opportunities (new
capabilities or unspoken needs that will cause customer excitement) are identified through the voice
of the engineer, marketing, or customer support representative. These can also be identified by
observing customers use or maintain products and recognizing opportunities for improvement.
• Comprehensive Specification: These customers needs then have to be translated into a set of
product requirements (more technical expressions of customer needs) that can be acted upon by
Engineering. Quality function deployment (QFD) is an excellent methodology to support this
objective while considering the competitive situation. QFD is a structured planning and decision-
making methodology for capturing customer needs and translating those requirements into product
requirements, part characteristics, process plans and quality/production plans through a series of
matrices. These product requirements are often expressed in the form of a product specification,
functional specification, or marketing requirements specification.

Seven steps of New Product research
1. Know your market — and your competitors New Product research often reveals counter intuitive facts
about your market, even if you think you are already well acquainted with it. For example, research has
shown that ‘snacks’ are often used as a meal substitute, and that therefore successful confectionery-type
snack products tend to be more ‘foody’ than one might expect: ingredients like cereal, peanuts, biscuits,
and fruit which help break up the overall chocolate are very well received by customers. Similarly, the
beginning of a product launch also means understanding your competitors, and what products and services
they have on offer. Though you might believe there’s currently no competition for your new product, put
yourself in the shoes of your customers and consider what they could buy instead of what you’re planning to
offer. Review those competitors’ marketing materials, and evaluate how your new offering will stand up
against what’s available. Where will you excel? Which companies or products are the greatest threats to a
successful launch?
2. Target your customer: In order to get maximum results from your marketing with minimal cost, it’s
crucial to focus on those prospects most likely to buy from you. Perhaps they are currently buying a
similar product and will appreciate your new offering’s added features. The best customers perceive they
have a need for your product, have the ability to buy it, and have already demonstrated a willingness to
make the purchase (perhaps by buying from the competition). In general, it’s much easier to fill an existing
need than it is to create a new one.
3. Devise your Unique Value Proposition: Why will customers want to purchase from you, compared with
the competition? What are you offering that makes you stand out? Not only does your new product or
service have to be unique and meet your customers’ desires and needs, but you must be able
to communicate why and how it does so. This is your Unique Value Proposition, and an excellent way to
come up with one is by speaking with customers to see what they value.
4. Determine your marketing strategy: At this point you will have enough information on your market to
understand how to best market and sell your product. What channels should you use — via retailers?
Catalogues? Online? Using multiple channels is, as most marketers are aware, an excellent idea.
Also remember to consider direct response marketing, whi1ch can offer extreme levels of ROI.
5. Test your product and overall approach: How will your product fly when your customers have it in their
hands? Ultimately the customer’s response will determine which features to emphasise and which
marketing approach to use, so product testing is crucial. Product testing can be as simple as having

a research participant test a single product (monadic testing) and fill out a suvey on the “key performance
indicators” like likelihood of purchase. Or, it can go into the various sensory qualities (appearance, flavour,
etc) and make use of sophisticated video recording and observational techniques. You should also test your
marketing message and marketing materials. With all the money you’ll be spending on advertising, it’s
worth making sure your ads and graphics and packaging will be well-received by the customers. Testing
here might range from traditional focus groups to mall intercept studies and online research. Whatever
methods you use, you should not finalise your marketing materials until testing is complete.
6. Roll out your marketing campaign: Once it comes time to launch, you’ll want to employ both advertising
and public relations to maximize the impact of your new product launch. Media relations, for example, can
help you get articles and press coverage on the new product, or build buzz that drives interest in the new
item. Whichever you choose, of course, be sure the product is completely available for purchase — if the
product is not yet in stock when the coverage hits, consumers may be disappointed. Market research plays a
role here too, of course: especially in the first few weeks, you’ll want to monitor the results of your
campaign and adjust your techniques to focus on those that work best.
7. Monitor your product lifecycle: Finally, as your product matures you’ll start to see points of diminishing
return that mean it’s time to alter your marketing message, revise the packaging, alter the product itself, or
even start to phase it out to make room for your next big idea.
2. Branding Research
Manufacturers, traders and consumers support branding practice as it is useful to them in different ways. Large
number of products is sold in the market by brand name as consumers develop affinity to such brands and refer to
them when they visit retail shops. In order to secure these advantages, brand selected should be promising. An ideal
brand needs certain qualities. For example, it should be brief, simple and easy to remember and pronounce.
Similarly, it should be suggestive, decent, attractive and as per the current tests and fashions accepted by consumers.
Research department suggests appropriate brand names to the products of the company. For this, surveys are
conducted and information is collected through interviews, etc.
Such studies offer suitable guidance to management for the introduction of appropriate brand name for the product.
The research team will provide necessary information on the basis of which the management will have to take final
decision regarding brand name. This decision is critical as the results (good or bad) will be available only when the
brand is actually introduced in the market.

Various Branding research Methods
Branding Research can be done at every stage of Brand building process, the various researches related to
Brands are:
1. Brand Character Research
2. Brand Logo Research
3. Brand Name Research:
4. Brand Association Research
5. Customer Satisfaction & Brand Loyalty Research
6. Brand Health research
7. Brand awareness Research:
1. Brand Character Research: A brand research tool is introduced called Ethography. “Ethography is the study of
a brand’s ethos, its underlying character and influence. Ethography is the intimate study of a brands values, beliefs
and character. These things reveal a company’s internal culture and they spring from leadership vision and values.
They set the tone for how key relationships are nourished. Knowing that all markets evolve, that consumer tastes
evolve, and that important values and meanings in society also evolve, tells us that successful brands must evolve as
well. It’s simply not reasonable to expect that a brand field defined twenty, ten, or even three years ago will resonate
as strongly with the customers of today. Hence, a formal study of brand meaning is essential, and brand ethography
is an important tool for doing this work.
The brand character research can be done using both qualitative and quantitative techniques.
Qualitative research involves the understanding of:
• Personality of each option
• Fit with the name of each option
• Fit with the brand association of each option
• Fit on the pack
• Fit with the proposed role in advertising of each option
• Comparison among the character options
• Fit with specific brand extension options
• Quantitative research focuses on ascertaining the following information:
• Thoughts evoked by each options, and grouping of these thoughts as positive and negative

• Likeability of each option
• Specific likes and dislikes of each option
• Uniqueness of each option
• Comparison of each option with the symbols of the competition
• Rating of each option’s fit with the pack
• Preference amongst symbol options
• Preference amongst name options
2. Brand Logo Research: When a new logo is to be chosen it is always advisable to evaluate it among two
independent sets of people one to evaluate the logo in isolation and the other to evaluate the logo on the pack.
Evaluation of logo in isolation looks at its likeability, distinctiveness, comprehension of message conveyed, by logo
options, preference among logo options, and preference of logo among key competition. Evaluation of logo on the
pack also looks at the same alternatives along with the speed with which the respondent would identify the test logo
pack among a clutter of other similar packs. This helps to evaluate how the logo would stand out in the shelf.
3. Brand Name Research: A Brand name research is important for any brand throughout its lifecycle. It involves
personal interviews in which some basic concept statements may be exposed to respondents along with the name.
then the respondent are asked to recall the name after having read the same. This indicates the names notice ability
and ease of recall. Then spontaneous responses are ascertained to name in terms of:Latent Association
• What thoughts come to mind upon hearing this name?
• What negative and positive associations exist with new corporate name, product name or service name?
What barriers have to be overcome with negative latent associations? How does sound symbolism or
phonosemantics (the meaning of sounds) affect the evaluation of a name's latent association?
• What does the name mean to you?
• How would you pronounce this name?
• What do you particularly like/dislike about this name?
• Which product the name suit? Or not suit?
• Which name you like the most and why?
After the ascertaining the responses to these, a preference ranking is done of the names and the best among them is
chosen. This method also helps in ascertaining the names ability to communicate to the respondent, the barriers to
comprehension, descriptiveness of the name etc.

4. Brand Association Research: For existing brands or existing competition of new brands, respondents mind
would already have brand associations. In such cases, the evaluation should include the following questions:
• Ascertain the current state of affairs, without exposing the respondents to the new concepts
• Expose new concepts
• Ascertain the response to new concepts
• Compare the responses generated before and after exposure of new concepts to understand their effects.
5. Brand Loyalty Research: Brand Loyalty research explore the relationship among brand trust, brand affect, and
brand performance outcomes (market share and relative price) with an emphasis on understanding the linking role
played by brand loyalty. Brand Loyalty research generate both statistical and qualitative data — benchmarked,
comparative and evaluative measures. These, combined with specific diagnostic data, provide the tools to effect
improvements:
➢ Overall satisfaction
➢ Ratings of performance on specific aspects of the product/service
➢ Reasons for lack of satisfaction/poor ratings
➢ Salience and hierarchy of needs/preferences/expectations
➢ Gap Analysis/Strategic Priority Analysis
➢ Loyalty and propensity to recommend/re-purchase
➢ Drivers of satisfaction and loyalty
➢ Reputation/image of the brand
➢ Value for money
➢ Customer Segmentation
➢ and include, where feasible, lapsed and potential customers
6. Brand Health research: The health of a brand is measured by its brand equity. Brands with high equity can
command and sustain price premiums and are more successful with line extensions and new category entries.
Brand Health research allows companies to set competitive brand strategies and provides brand with a Brand Equity
Index. The BEI can be analysed in relation to the brand’s market share and will help determine whether the brand’s
share gain is at the expense of long-term brand equity or whether the brand has the potential to expand its market
share.
7. Brand awareness research: Brand awareness studies are a relatively quick way to check on your brand’s position
with consumers in relation to your competition. Done right, these important questions allow you to adapt your
marketing strategy to changing market conditions quickly and accurately.

Four Vital Measurements in a Brand Awareness Study
Each brand faces unique challenges that they will need to address in their brand awareness studies — new
competition or a product recall, for example — but addressing these four pieces will give you an accurate picture of
how your brand stands.
a. General Brand Awareness: This is often tracked through measures of brand recall and recognition. A brand
that is easily recalled in certain situations is more likely to be considered for purchase than one that is only
recognized when the consumer is prompted.
b. Brand Usage: This can be measured through recency (how recently a consumer engaged with your product),
frequency of usage, and total spending in the brand and product categories. These brand tracking measures
reveal insights about consumer shopping behavior and preferences. They are also indicators of market share
and share of wallet.
c. Brand Attitudes and Perceptions: These are usually captured through questions related to brand image and
associations that consumers develop based on their experience with the brand and exposure to its message
through PR, advertising, and promotional programs. Brand associations include beliefs about product- and
non-product related attributes and benefits, as well as perceptions related to price and value. Some brand
associations are stronger than others, are more easily recalled, and are appealing enough that they become a
driver in a consumer’s decision to buy a brand.
d. Purchase Intent: Measures of likelihood to buy a brand or switch to a competitor are also indicators of
brand health that should be part of brand awareness studies. These questions should be asked in the context
of a specific product or brand, reason for the purchase, time, channel, price, and other relevant factors in the
purchasing decision.
3. Pricing Research
Pricing research involves first a pricing strategy assessment supported by strong pricing research capabilities. Sound
pricing market research requires a broad strategic perspective together with a focus on your pricing decision options.
Pricing research finds optimum price-product-feature configurations in the context of market positioning
opportunities. Pricing studies, we employ both qualitative research and quantitative research tools.Pricing research
usually concentrates on customers' sensitivity to pricing. This price sensitivity is driven by the nature of the market,
the target within that market, the differentiation level of product or service, and the value of brand.
Pricing is one of the more technical areas of market research.
Pricing research involves pricing strategy assessment supported by strong pricing research capabilities. Sound
pricing market research requires a broad strategic perspective together with a focus on pricing decision options.

Pricing research usually concentrates on customers' sensitivity to pricing. This price sensitivity is driven by the
nature of the market, the target within that market, the differentiation level of product or service, and the value of
brand. Pricing is one of the more technical areas of market research.
There are six main approaches:

•Several different research methods are commonly used in pricing research—each with their own strengths and
weaknesses. There are four techniques that are commonly used the four techniques are:
1. Gabor-Granger
2. Van Westendorp Price Sensitivity Meter
3. Concept Test
4. Conjoint Analysis
5. Brand Price Trade-Off (BPTO)
6. Discrete Choice Modeling
1. The Gabor–Granger method is a method to determine the price for a new product or service. It was
developed in the 1960s by Clive Granger and André Gabor. To use the Gabor Granger method in a survey,
one must find the highest price that respondents are willing to pay. There are many ways to do this but the
most common is usually done by choosing 5 price points for the survey and then asking the respondent a 5-
point purchase intent question for a random price from those 5 established price points. If the respondent
answers in the top 2 for this question, they are then asked the same question for a random price that is higher
than was just asked. If it is not top 2 then the respondent is asked the same question for a random lower
price. This is done until you find the highest price the respondent is top 2 on purchase intent. If they are not
top 2 for the lowest of the 5 prices, the respondent is usually coded as a zero or deleted from the analysis. For
example, say the 5 prices chosen are $1, $2, $3, $4 and $5. A first random chosen price might be $4. If the
respondent is top 2 on purchase intent, then there is only $5 left higher so the respondent is asked purchase
intent at that price. If they are top 2 on $5 then the respondent is coded $5 as this is the highest price they are
top 2 to pay. If they are not top 2 on $5 then the respondent is coded as $4 as this was the highest price they
are willing to pay. If the respondent is not top 2 on $4, then they are asked a random lower price. Continue
until you have found the highest price the respondent is top 2 box on purchase intent. This is your Gabor-
Granger variable. Once you have this Gabor Granger variable, the results can be used to produce a demand
chart (where x-axis are the prices and y axis the percentage of people willing to pay that price) and a revenue
curve (where y-axis is the percentage of optimal revenue and x-axis is still price).
2. Van Westendorp Price Sensitivity Meter: The traditional PSM approach asks four price-related questions,
which are then evaluated as a series of four cumulative distributions, one distribution for each question. The
standard question formats can vary, but generally take the following form:

• At what price would you consider the product to be so expensive that you would not consider buying it?
(Too expensive)
• At what price would you consider the product to be priced so low that you would feel the quality
couldn’t be very good? (Too cheap)
• At what price would you consider the product starting to get expensive, so that it is not out of the
question, but you would have to give some thought to buying it? (Expensive/High Side)
• At what price would you consider the product to be a bargain—a great buy for the money? (Cheap/Good
Value)
The cumulative frequencies are plotted, and PSM advocates claim interpretive qualities exist for any
intersecting of the cumulative frequencies for each of the four price categories. Note that the standard method
requires that two of the four cumulative frequencies must be inverted in order to have the possibility of four
intersecting points. Conventional practice inverts the cumulative frequencies for "too cheap" and "cheap".
3. Concept Test/Concept Evaluation: The standard purchase intent question from a concept test is also
commonly used for pricing research. Respondents are presented with a product concept and asked how likely
they would be to purchase this product at a specific price. Typically the researcher will expose independent
samples of respondents to different prices. The standard purchase intent question is shown below.
•(After introducing the product concept)

•How likely, would you be to purchase this product in the next 12 months
•if it costs Rs 9000?
•Definitely would purchase
•Probably would purchase
•Might or might not purchase
•Probably would not purchase
•Definitely would not purchase
•To evaluate price sensitivity using this example, a sample of respondents evaluates this concept at Rs 9000,
a different sample of respondents evaluates the same concept at Rs5000, and another sample of respondents
evaluates the concept at Rs 14000. A demand curve is constructed by evaluating purchase intent at each price
4. Conjoint analysis: Conjoint (trade-off) analysis is one of the most widely-used quantitative methods in
Marketing Research. It is used to measure preferences for product features, to learn how changes to price
affect demand for products or service, and to forecast the likely acceptance of a product if brought to market.
Like concept tests, conjoint analysis presents concepts to respondents. However, instead of exposing each

respondent to a single concept, in conjoint analysis each respondent is exposed to many concepts. For each
treatment, respondents are asked to make hypothetical trade-offs between configured products. Like concept
tests, conjoint analysis presents concepts to respondents. However, instead of exposing each respondent to a
single concept, in conjoint analysis each respondent is exposed to many concepts. For each treatment,
respondents are asked to make hypothetical trade-offs between configured products. For example, a
respondent might be asked to express his preference between two VCR alternatives, as follows:
In conjoint analysis, respondents are forced to make trade-offs between products and product features, much
as buyers are forced to do when actually shopping. Each respondent answers a series of trade-off questions;
in each question the combination of features shown together changes. In this way, a large number of product
features can be evaluated. Each respondent provides enough information through his or her trade-offs that
the utility of each product characteristic (including price) can be estimated for each respondent. This
individual-level estimation allows for the identification of individual differences that can lead to a market
segmentation scheme and can be used to help predict acceptance of products by different individuals in a
heterogeneous market. These utilities also allow prediction of preference for any product that can be defined
using the product characteristics in the study. These preferences can be modeled in a market simulator. A
market simulator allows “what-if” analysis for any configuration of products in any competitive
environment. A demand curve can be produced from these simulations.
5. Brand Price Trade-Off (BPTO): Brand Price Trade-Off (BPTO) technique is a variation of the Conjoint
Analysis, where several brands are shown at once and the customer chooses the preferred option. This
technique is used to identify the impact of price increases and decreases on the sales of the brand. Unlike

Gabor Granger technique and Van Westendorp Price Sensitivity Monitor (PSM) techniques it is also capable
of providing the response to competitors’ changes in price and provides an analysis of gains and losses. This
technique also helps identify how much premium a brand can charge. In this case customers evaluate a range
of products and prices are adjusted until customers stop purchasing.
6. Discrete Choice: Choice-Based Conjoint (CBC) is used for discrete choice modeling, a research technique
that is now the most often used conjoint-related method in the world. The main characteristic distinguishing
choice-based from other types of conjoint analysis is that the respondent expresses preferences by choosing
from sets of concepts, rather than by rating or ranking them. The choice-based task is similar to what buyers
actually do in the marketplace. Choosing a preferred product from a group of products is a simple and
natural task that everyone can understand. CBC is often used to study the relationship between price and
demand, and is especially useful when the price-demand relationship differs from brand to brand, and when
only a few features need to be considered. One of the strengths of CBC is its ability to deal with interactions,
such as when different brands have different sensitivities to price changes. Most conjoint methods are based
on "main effects only" models that ignore the existence of such interactions. In contrast, CBC may be used to
evaluate all two-way interactions. The researcher must decide on attributes and their levels, and compose
whatever explanatory text is desired for the interview screens. Apart from that, everything can be done
automatically. The CBC System provides all the tools needed to conduct a choice-based conjoint study via
Web, CAPI (PCs not connected to the Web), or paper-based surveys. Our CBC system includes three
analysis modules and a market simulation module for testing "what if" scenarios. In discrete choice, the
respondent is presented with a set of products and the respondent is asked to pick one, as illustrated below

The results from discrete choice modeling are very similar to those from conjoint. For instance, both
approaches are able to produce utilities at the individual level, and both discrete choice and conjoint allow
what-if simulations. Discrete choice modeling has been used with great success in pricing research
4. Packaging Research
MEANING OF PACKAGING RESEARCH: Packaging research is one aspect of product research. It deals with
the needs and expectations of consumers about the package (size, shape,colour combination, durability, material
used, etc.) used. Packaging research is useful for making product packages secured, attractive and agreeable to
consumers.
Packaging research plays a positive role in modem marketing.

➢ It acts as a sales promotion technique.
➢ It makes the product attractive and agreeable to consumers.
➢ Packaging needs constant changes as per the expectations of consumers and also as per the current trends in
packaging designs.
For achieving these objectives, packaging research is useful.
Moreover, the advantages of packaging (as noted above) indicate the importance and need of packaging and
packaging research. For large-scale marketing, attractive packaging is a must. It should be used for established as
well as for new products. In addition, renovations should be made in the packages after some interval.
For this package research is useful. Manufacturers, in India, now take active interest in package research. As a result,
we observe new packages of varied sizes, shapes and colour combinations in the market for all types of products
particularly consumer items such as soaps, cosmetics and oils.
Packaging research has special significance in export marketing as packaging of export items needs to be safe,
secured, and also attractive to foreign buyers. Packaging needs to be as per the standard packaging norms used in
different countries. In addition, packaging of export items needs to be as per the legal provisions made in different
countries. Moreover, packaging rules and procedures are very strict in European countries.
WHY PACKAGING RESEARCH UNDERTAKEN? Packaging research is undertaken in order to find out
reasonably correct and reliable answers to the following packaging problems/issues:

(1) Whether the existing package used for the specific product is attractive and agreeable to consumers and is also as
per the current trends in the field of packaging.
(2) Whether certain modifications/alterations are necessary in the existing packages (used by the company) so as to
make them attractive and as per the tastes and requirements of consumers.
(3) Whether the existing packages are eco-friendly (in regard to material used and colour-combination) and to
introduce suitable modifications in them so as to make them eco-friendly. (e.g., avoiding the use of thin plastic bag
or replacement of plastic containers through the use of thick paper, wood, etc.)
(4) Whether the packaging material used is safe, durable and gives full protection to the product against moisture,
light, high temperature and shock and whether any other material which is more economical and safe can be
used/introduced.
(5) Whether the existing package gives clearly visible identity to the product and its brand.
(6) Whether the cost of packaging is high and how to bring down the packaging cost and thereby to make the product
competitive as well as attractive in the market.
(7)Whether the existing package facilitates proper disposal or reuse of the packaging material after the use of the
product.
(8) Whether there is scope for improvement in the packaging so as to make it attractive, eco-friendly and
easily/quickly saleable.
Package graphics and copy are critical marketing variables in many product categories, particularly for non
advertised or under advertised brands in self-serve shopping environments.
The package on a retail shelf is the last opportunity to influence consumers before they decide to buy. It’s the final
sales pitch at the “moment of truth,” when the brand-choice decision is made. The better the package design and
copy, the greater the likelihood that consumers will choose that brand. Any new package design, or significant
change in an existing package, should always be subjected to the scrutiny of objective consumer feedback.
Following are the packaging research methods:

1. Package Screen
2. Package Check
3. Package Test
4. Custom/Ad Hoc Packaging Research
5. Shelf Impact
6. Simulated display

1. Package Screen: Early-Stage Package Designs
The package design process typically begins with the creation of a large number of “rough” or early-stage designs.
Ten to twenty package designs, or more, are common at this beginning stage. The research objective is to identify the
package designs that resonate with consumers, so that creative efforts can be focused on further development of the
better designs. Package Screen is an Internet-based system to accomplish this winnowing task.
How Does Package Screen Work?

A representative sample of 200 to 300 target audience consumers are recruited from a panel. These participants are
invited to come to a location and view the early-stage package designs. Each respondent sees all of the package
designs one at a time (front panel only) on his/her computer monitor, in randomized order.
Then, each person views the package designs a second time and answers four questions about each design.
The answers to these four questions are fed into a mathematical model to calculate an overall score for each design.
The highest-rated designs are recommended for further development.
2. Package Check: Diagnostic Feedback

The next step in the design process is to learn more about the better designs so that further improvements can be
made. Package Check is, designed to provide this diagnostic feedback.
How Does Package Check Work?

A representative sample of target-audience consumers are recruited to as a panel and view each package design. The
respondents see only one package design (i.e., a monadic test) and then answer a series of questions about their
reactions, including a series of open-ended questions. The report includes answers to standard questions, compared to
the organizations action standards, as well as verbatim responses to open-ended questions. The verbatim detail is
valuable to creative teams as they strive to improve the graphic design, as well as the copy, on the package. A typical
PackageCheck study is based on 75 completed interviews
3. Package Test: Finished Or Near-Finished Package Designs

As packages near the end of the design process, a more complete evaluation is required, with comprehensive
measurements to assess all of the important elements of package design. Package Test is comprehensive, testing
system to evaluate finished (or near-finished) package designs. A representative sample is recruited from one of our
worldwide Internet the panels, and qualified respondents are invited to evaluate the package design. Respondents
first see the package’s front panel, and later view the other panels. The research design is monadic. The report
includes answers to standard questions, as well as the coded responses to all open-ended questions, along with our
analysis and interpretation. A mathematical model, based on a number of key variables, calculates an overall score
for the package design and compares it to action standards. A typical Package Test project is based on 150
completes.

4. Custom/Ad Hoc Packaging Research: Package Communication
What is the package communicating? What is the package failing to communicate?
Depth interviews are typically used to explore package communication issues. Usually, the test package is shown at
different time exposures (1/500 of a second, 1/200 of a second, etc.) using a tachistoscope.
At each exposure level, package recognition and communication are examined.
Then the respondents are asked to examine and to read the package in detail, with no time limits.
The consumer’s reactions to every detail of package graphics and copy are explored in the interview. The purpose of
this research is to learn how to improve brand recognition and package communication.
5. Shelf Impact
Does the average consumer notice the package on the shelf?
To evaluate shelf impact, we typically build representative displays of the test package in a competitive environment.
These displays are photographed from angles representative of the consumer’s perspective. The test package is
rotated within the display.
The best photographs (with correct rotations) are shown to a representative sample of consumers, at various time
exposures (1/200 of a second, 1/100 of a second, and so on) with a tachistoscope. The respondents are questioned
about what they see and what they understand, as the length-of-time exposure increases. This methodology helps
determine the visibility (or attention value) of a test package, relative to competitive packages.
6. Simulated Display
The ultimate test of a package is whether it stimulates trial of a product.
To measure a package’s trial potential, a representative display of a product category (with all major competitive
brands) is assembled. Matched samples of consumers are instructed to “shop” the display.
Their brand decisions, and the reason for those decisions, are explored in post-shopping interviews. Simulated
display allows us to measure a package’s trial potential and helps us learn how to improve its trial potential.

6. PRODUCT TESTING
The purpose of product testing is to develop a product line which meets the needs of consumers in general.
Product research facilitates the process of making products more attractive, useful and agreeable to consumers.
Meaning of Product Testing:
Product testing is one major area of MR. It is concerned with different aspects of a product which include name,
features, uses, package used, brand name given, price, consumer support and so on.
The term product research covers all aspects relating to manufacturing and marketing of a product. Product planning
and development, product innovation and modification, product pricing, product life cycle studies branding,
labelling, packaging, etc. are the different areas aspects) of product research
Packaging and branding are treated as two components of product testing. This is because they are closely connected
with the product itself. Moreover, sale depends on the product as well as on its packaging and branding. In product
research, existing products of the company are made superior (in quality) and agreeable to consumers.
In addition, new products with promising market demand are developed. This is called new product research.
Product research is directly related to product-mix which is one component of basic marketing mix.
There are four components of product mix.

These are:
1. Product range
2. Brand,
3. Package and
4. Service after sale.
Product testing has two important aspects. These are:

a. Technical aspect of a product, and
b. Marketing aspect of a product.
Technical research of a product is conducted in the laboratory in order to develop a product with latest design and
features at the lowest possible cost. Products marketing research relates to the attitudes of consumers and their
preferences towards the specific product.

Product research is necessary at the product planning stage. This is because marketing will be easy and quick when
the produce manufactured is as per the needs and expectations of consumers. For this, product opportunities must be
studied and product must be adjusted accordingly. Marketing efforts will not be rewarded if the product to be sold is
not as per the needs and expectations of consumers.
This suggests that marketing research should start at the product promotion stage.
The researcher should suggest the details of product (nature, features, packaging, etc.) which can be marketed
effectively. This creates proper background for success in marketing efforts
NEED OF PRODUCT TESTING:

Product testing acts as an insurance against risk of obsolescence of existing products of the company.
In addition, product research is needed in order to develop new products which will have good demand over a long
period.
In short, the following points suggest/justify the need of product testing:

(1) To assist in the setting up of objectives towards which the research and development department will have to
work in order to develop and bring out a new product in the market.
(2) To pinpoint the needs and wants of consumers which the proposed product is expected to satisfy.
(3) To estimate the sales potential of the new product
(4) To verify the benefits of the new product to the consumers.
(5) To find out the possible impact of the new competitive products on the sales potential of the existing product of
the company.
(6) To test prototypes of the product.
(7) To predict the possible success or failure of the product once it is introduced in the market.
(8) To reduce the chances of product failure after its modification or after its entry in the new market and also
to increase the possibilities of product success.
(9) To introduce consumer friendly products as consumer preferences are dynamic.
PR is needed on continuous basis for adjusting the products as per the needs/expectations of consumers. to
introduce attractive package and brand name to the product for sales promotion.
WHEN PRODUCT TESTING IS NECESSARY?

(1) Introduction of new product/modifications in the existing product: Product testing is necessary when company
develops a new-product or desires to introduce an existing product with suitable modifications as per the
requirements of consumers.

Here, the objective is to raise the popularity of existing products and to reduce the new product failure rate through
extensive research and testing of a new product before its introduction in the market.
Product testing is a valuable tool in marketing research.

Such testing is before launching a new product in the market. Such product testing includes technical testing and
consumer testing.
(2) Introduction of new product by competitor: Product research is necessary when a competitor introduces a new
product or improved version of the existing one in the market.
IMPORTANCE/ADVANTAGES OF PRODUCT TESTING:

Product testing is important as it offers the following advantages:
1. Product testing helps to explain the features of the product.
2. It helps to simplify the product line.
3. It enables a manufacturer to develop new products with good market demand in the existing product line.
4. Product testing brings best sales returns.
5. It widens market for the product and also creates goodwill for the product and its manufacturer.
6. It facilitates appropriate price fixation of the product.
7. Product testing brings to the limelight the different uses of the product for effective publicity for sales
promotion.
8. It facilitates modification and renovation of existing products so as to make them highly competitive and
agreeable to consumers.
9. It enables a manufacturer to introduce attractive package and brand name to the product for sales promotion.
METHODS OF CONDUCTING PRODUCT TESTING:
There are three methods used for the conduct of product testing as explained below:
(1) Staggered Comparison Test:
(2) Paired Comparison Test:
(3) Non-directive Method (Test)
1) Paired Comparison Testing – Consumers are not told about the brand being tested and are given a new and an
old product and are asked to choose. The samples know that they are testing and are therefore aware about a probable
difference.
FMCG’s would often do this since there are so many products. This is like the Classic Coke Test Case. This kind of
testing tells us about branding – the strength of branding – are consumers aware of product variations? Do people
really understand the style that a fashion house stands for. Response rates for distinctions would be high because

people know that there is a test happening. Placebo Testing also has an effect here because the palette assumes that
there are differences – and thus the palette expects change and there is a false perception of things being different.
2) Staggered Comparison Test – Respondents Test 2 Brands with a time lag with the identities masked. One half of
the respondents receive Brand A and the other half receives Brand B. The respondents are then given the same
products in reverse and are asked to note any difference in the brands.
This kind of comparison tests the ideas of respondents with respect to their influence by peer pressure and their
association with a product with respect to how their choices are dictated.
3) Disguised Comparison Test: This duplicates the actual market where for different brands, the same packaging is
used and the respondents are told that they will be asked about their reactions later. In this case, the respondents are
studied in order to recognize if they have noticed any difference at all. Further, they are not aware of the test being
taken and believe the products to be free samples
This is the opposite of the 2 above. The sample does not know they are part of the test. They are just given free
samples. They just think that they are getting 2 free samples. They don’t know that they are getting test. Sometimes
they don’t realize that its different. They think it’s the same product.

Advertsing and Marketing Research

Uploaded by

Copyright:

Available Formats

Advertsing and Marketing Research

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Advertsing and Marketing Research

Uploaded by

Copyright:

Available Formats

ADVERTSING AND MARKETING

BY: Dr Hanif Lakdawala www.haniflakdawala.com

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Qualitative Research and Quantitative Research

However, there are some pitfalls to qualitative research, such as:

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Sources of Qualitative Data

Analysing Qualitative Data

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Sources of Quantitative Data

Analysing Quantitative Data

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Relationship among Variables

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Objectives of Literature Review

BY: Dr Hanif Lakdawala www.haniflakdawala.com

A literature review has four main objectives:

Steps for Conducting a Literature Review

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Stages in Research process.

Stage 1: Formulating the Marketing Research Problem

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Stage 2: Method of Inquiry

Stage 3: Research Method

Stage 4: Research Design

Stage 5: Data Collection Techniques:

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Stage 6: Sample Design

Stage 7: Data Collection

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Stage 9: Research Report

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Meaning, Definition, Need and Importance,

Research Design: Meaning and Importance

Definitions of Research Design:

To be effective, a research design should furnish at least the following details.

BY: Dr Hanif Lakdawala www.haniflakdawala.com

• What is the study about?

Advantages of research design

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Importance and scope of Research Design

BY: Dr Hanif Lakdawala www.haniflakdawala.com

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Methods for Conducting Exploratory Research

BY: Dr Hanif Lakdawala www.haniflakdawala.com

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Methods for Conducting Descriptive Research

BY: Dr Hanif Lakdawala www.haniflakdawala.com

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Same people Different people

Same questions True panel Cohort panel

Different questions Omnibus panel Cross-sectional

Causal or Experimental Research

BY: Dr Hanif Lakdawala www.haniflakdawala.com

BY: Dr Hanif Lakdawala www.haniflakdawala.com

Conducting Causal or Experimental Research

BY: Dr Hanif Lakdawala www.haniflakdawala.com

CONCEPT AND MEANING OF ‘SURVEY RESEARCH’