final brm text book

BUSINESS RESEARCH METHODS

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Module No. Module Name Pg. No 1. Introduction to Research 2-10 2. Research Design & Process 11-33

Cases 34-49

3. Secondary Data 50-62

4. Primary Data 63-82

Cases 83-88

5. Measurement Techniques 89-136

Cases 137-156

6. Qualitative Research 157-186

7. Sampling 187-206

Cases 207-212

8. Data Reduction & Data

Analysis

213-223

Cases 224-236

9. Marketing Research Reports 237-240

Cases 241-242


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MODULE 1 (INTRODUCTION TO

RESEARCH)


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DEFINITION OF MARKETING REASEARCH The systematic and objective identification, collection, analysis, dissemination, and use of

information for the purpose of assisting management in decision making related to the

identification and solution of problems (and opportunities) in marketing.

First, marketing research is a systematic. Thus systematic planning is required at all the

stage of marketing research process. The procedures followed at each stage are

methodologically sound, well documented, and, as much as possible, planned in advance.

Marketing research is objective. It attempts to provide accurate information that reflects a

true state of affairs. It should be conducted impartially. Although research is always influenced

by the researchers research philosophy, it should be free from the personal or political biases of

the researcher or the management. The motto of every researcher should be, find it and tell it

like it is.

MARKETING RESEARCH PROCESS

A set of six steps which defines the tasks to accomplished in conducting marketing

research study. These include problem definition, developing an approach to the problem,

research design formulation, field work, data preparation and analysis, and report generation and

presentation.


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o Consumers

o Employees

o Shareholders

o Suppliers

MARKETING

RESEARCH

1. Product 1. Economy

2. Pricing 2. Technology

3. Promotion 3. Competition

4. Distribution 4. Laws and -

Assessing providing marketing regulation

Information Information decision 5. Social and -

Needs making cultural factors

6. Political factors

Market Segmentation

Target market selection

Marketing programs

Performance and control

CUSTOMER GROUPS

Controllable

Marketing

Variables

Uncontrollable

environmental

factors

Marketing managers

THE ROLE OF MARKETING RESEARCH


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CLASSIFICATION OF MARKETING RESEARCH

I. Problem identification research -

Research which is undertaken to help identify problems that are not necessarily apparent

on the surface and yet exist or are likely to arise in the future. Examples of problem

identification research include market potential, market share, brand or company image,

market characteristics, sales analysis, short-range forecasting, long-range forecasting, and

business trend research.

II. Problem solving research-

Research undertaken to help solve specific marketing problems. Once a problem or

opportunity has been identified, problem solving research is undertaken to arrive at a

solution. The findings of problem solving research are used in making decisions which will

solve specific marketing problems.

1. Market Potential Research 1. Segmentation Research

2. Market Share Research 2. Product Research

3. Image Research 3. Pricing Research

4. Market Characteristic Research 4. Promotion Research

5. Sales Analysis Research 5. Distribution Research

6. Forecasting Research

7. Business Trends Research

Marketing research

Problem identification

research

Problem solving

research


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PROBLEM SOLVING RESEARCH

Segmentation Research

Determine bases of segmentation establish market potential and responsiveness for

various segments select target markets and create life style profiles demography, media, and

product image characteristics.

Product Research-

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning and repositioning

Test marketing

Control store tests

Pricing Research-

Importance of price in brand selection

Pricing policies

Product line pricing

Price elasticity of demand

Initiating and responding to price changes


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Promotional Research-

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Claim substantiation

Evaluation of advertising effectiveness

Distribution Research-

Determine copy of distribution

Attitudes of channel members

Intensity of wholesale and retail coverage

Channel margins

Location of retail and wholesale outlets


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MARKETING RESEARCH SUPPLIERS AND SERVICES

Research Suppliers

Full Service

Syndicated

services

Internal External

Limited Service

Standardized

services

Customized

services

Internet

services

Field

services

Coding

And

data

entry

service

s

Analytical

services

Data

analysis

services

Branded

product

and

services


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Internal suppliers:

Marketing research departments located within a firm.

External suppliers:

Outside marketing research companies hired to supply marketing research services.

Full-service suppliers:

Companies that offer the full range of marketing research activities. Full-service

suppliers offer the entire range of marketing research services, from problem definition,

developing an approach, questionnaire design, sampling, data collection, data analysis, and

interpretation, to report preparation and presentation. The services is provided by these suppliers

can be further broken down in to syndicated services, customized, and internet services.

I. Syndicated services:

Companies that collect and sell pools of data designed to serve information needs shared

by a number of clients.

II. Standardized services:

Companies that use standardized procedures to provide marketing research clients.

III. Customized services:

Companies that tailor research procedures to best meet the needs of each client.


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IV. Internet services:

Companies specializing in conducting marketing research on the internet.

Limited-service suppliers:

Companies specializing in one or a few phases of the marketing research project.

I. Field services:

Companies offering their expertise in collecting data for research projects.

II. Coding and data entry services:

Companies offering their expertise in converting completed surveys or interviews into a

usable data base for conducting statistical analysis.

III. Analytical services:

Companies that provide guidance in the development of the research design.

IV. Data analysis services:

Firms whose primary service is to conduct statistical analysis of quantitative data.

V. Branded marketing research products:

Specialized data collection and analysis procedures developed to address specific types of

marketing research problems.


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MODULE 2

(RESEARCH DESIGN &

PROCESS )


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RESEARCH DESIGN: CLASSIFICATION Research design may be broadly classified as exploratory or conclusive. A framework or

blueprint for conducting the marketing research project. It specifies the details of the procedures

necessary for obtaining the information needed to structure and/or solve marketing research

problems. Exploratory research Is used in cases when you must define the problem more

precisely, identify relevant courses of action, or gain additional insight before an approach can be

developed. The information needed is only loosely defined at this stage, and the research process

that is adopted is flexible and unstructured. For example, it may consist of personal interviews

with industry experts. The sample, selected to generate maximum insight, is small and non-

representative. The primary data are data are qualitative in nature and are analyzed accordingly.

Given these characteristics of the research process, the findings of exploratory research should be

regarded as tentative or as input to further research. Typically, such research is followed by

further exploratory or conclusive research.

Research design formulation

Research Design

Exploratory Research Design

re

Conclusive Research Design

Longitudinal

Design

Descriptive

research

Cross Sectional

Design

Causal

Research

Single cross Sectional

design

Multiple Cross

Sectional Design


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Sometimes, exploratory research, particularly qualitative research, is all the research

that is conducted. In these cases, caution should be exercised in utilizing the findings obtained.

Exploratory research will be discussed in more detail in the next section.

The insight gained from exploratory research might be verified by conclusive

research, as the objective of conclusive research is to test specific hypothesis and examine

specific relationship. This requires that the information needed is clearly specified.

DIFFERENCES BETWEEN EXPLORATORY AND CONCLUSIVE RESEARCH

Exploratory Conclusive

Objective To provide insight and understanding. To test specific hypothesis and examine

relationships.

Characteristics Information needed is defined only loosely.

Research process is flexible and unstructured.

Sample is small and non-representative.

Analysis of primary data is qualitative.

Research process is formal and defined.

Information is needed is clearly

structured.

Sample is large and representative.

Data analysis is quantitative.

Finding/Result Tentative Conclusive

Outcome Generally followed by further exploratory or

conclusive research.

Findings used as input into decision

making.

Conclusive research is typically more formal and structured then is exploratory research.

It is based on large, representative sample, and the data obtained are subjected to quantitative

analysis. The findings from this research are considered to be conclusive in nature in that they

are used as input in to managerial decision making. Conclusive research designs may be either

descriptive or causal, and descriptive research designs may be either cross sectional or

longitudinal.


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EXPLORATORY RESERCH

In general, exploratory research is meaningful in any situation in which the researcher

does not have enough understanding to proceed with the research project. Exploratory research is

characterized by flexibility & versatility, with respect to the methods, because formal research

protocols and procedures are not employed. It really involves structured questionnaires, large

samples, and probability sampling plans. Rather, researches are alert to new ideas and insights as

they proceed. Once the new idea or insight is discovered, they may shift their exploration in that

direction. That new direction is pursued until its possibilities are exhausted or another direction

is found.

For this reason, the focus of the investigation may shift constantly as new insights are

discovered. Thus, the creativity and ingenuity of the researcher plays a major role in exploratory

research. Exploratory research can greatly benefit from use of the following methods:

Survey of experts

Pilot surveys

Analysis of secondary data

Qualitative research


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A COMPARISION OF BASIC RESEARCH DESIGN

Exploratory Descriptive Causal

Objective Discovery of ideas and

insights.

Describe market

characteristics or

function.

Determine causal

and effect

relationship.

Characteristics Flexible, versatile.

Often the front end of

total research design.

Marketed by the prior

formulation of specific

hypothesis.

Preplanned and structured

design.

Manipulation of one

or more independent

variables.

Control of other

mediating variables.

Methods Expert surveys.

Pilot surveys.

Secondary data.

Qualitative research.

Secondary data.

Surveys.

Panels.

Observational and

other data.

Experiments

DESCRIPTIVE RESEARCH

Descriptive research a type of conclusive research which has as its major objective the

description of something usually market characteristics or functions.

1. To describe the characteristics of relevant groups, such as consumers, salespeople, or

ganizations, or market areas. For example, we could develop a profile of the heavy users

(frequent shoppers) of prestigious department stores.

2. To estimate the percentage of units in specified population exhibiting a certain behavior;

for example, the percentage of heavy users of prestigious department stores who also

patronize discount department stores.


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3. To determine the perceptions of product characteristics. For example, how do

households perceive the various department stores in terms of salient factors of choice

criteria?

4. To determine the degree to which marketing variables are associated. For example, to

what extent is shopping at department store related are eating out?

5. To make specific predictions. For example, what will be the retrial sales of specific store

for fashion clothing in the specific region?

Descriptive research, in contrast to exploratory research, is marketed by a clear statement

of the problem, specific hypothesis, and detailed information needs. Other examples of descriptive

studies are:

Market studies, which describe the size of the market, buying power of consumers,

availability of distributors, and consumer profiles.

Market share studies, which determine the proportion of total sales received by a

company and its competitors.

Sales analysis studies, which describe sales by geographic region, product line, type and

size of the account.

Image studies, which determine consumer perceptions of the firm and its products.

Product usage studies, which describe consumption patterns.

Distribution studies, which determine traffic flow patterns and the number and location

of distributers.

Pricing studies, which describe the range and frequency of price changes and probable

consumer response to proposed price changes.


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Advertising studies, which describe media consumption habits and audience profiles for

specific television programs and magazines.

MAJOR METHODS IN DESCRIPTIVE RESEARCH

Secondary data

Surveys

Panels

Observational and other data

CROSS SECTIONAL DESIGNS

A type of research design involving the collection of information from any given sample of

population elements only once.

They may be either single cross sectional or multiple cross sectional. In single cross

sectional designs only one sample of respondents is drawn from the target population, and

information is obtained from this sample only once. These design is also called as sample survey

research designs. In multiple cross sectional designs, there are two or more samples of

respondents, and information from each sample is obtained once. Often, information from different

sample is obtained at different times.

COHORT ANALYSIS

A multiple cross sectional design consisting of a series of surveys conducted at appropriate

time intervals. The cohort refers to the group of respondents who experience the same event within

the same time interval. For example: a birth (or age) cohort is a group of people who were born

during the same time interval.

Cohort analysis is also used to predict changes in voter opinions during a political

campaign.


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LONGITUDINAL DESIGN

In longitudinal design, a fixed sample (or samples) of population elements is measured

repeatedly. A longitudinal design differs from a cross - sectional design in that the sample or

samples remain same over the time. In other words, the same respondents are studied over time. In

contrast to the typical cross sectional design, that gives a snapshot of variables of interest at a

single point of time, a longitudinal study provides a series of pictures that give an in-depth view of

the situation and the changes that take place over time. For example, the question, How did the

American people rate the performance of bill Clinton immediately after his second term? would

be addressed a cross sectional design. However, a longitudinal design would be used to address

the question, How did the American people change their view of Clintons performance during

his presidency?

A panel consists of a sample of respondents, generally households that have agreed to

provide information at specified intervals over an extended period. Panels are maintained by

syndicated firms, and panel members are compensated for their participation with gifts, coupons,

information, or cash.

RELATIVE ADVANTAGES & DISADVANTAGES OF LONGITUDINAL AND CROSS

SECTIONAL DESIGNS

A major advantage of longitudinal design over the cross - sectional design is the ability to detect

change as a result of repeated measurement of the same variables on the same sample.

Longitudinal data enable researchers to examine changes in the behavior of individual units

and to link behavioral changes to marketing variables, such as changes in advertising, packaging,

pricing, and distribution. Because the same units are measured repeatedly, variations caused by

changes in the sample are eliminated and even small changes are apparent.


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Another advantage of panel is that relatively large amounts of data can be collected. Panel

member are usually compensated for their participation, so they are willing to participate in

lengthy and demanding interviews. Yet another advantage is that panel data can be more accurate

then cross sectional data. A typical cross sectional survey requires the respondent to recall past

purchases and behavior; these data can be inaccurate because of memory lapses. Panel data, which

relies on continues recording of purchases in a diary, places less reliance on the respondents

memory.

The main disadvantage of panel is that they may not be representative. Non-

representativeness may arise because of:

Refusal to corporate: many individuals or households do not wish to be bothered with

the panel operation and refuse to participate. Consumer panel requiring members to keep a

record of purchases have a cooperation rate of 60 percent or loss.

Mortality: panel members to agree to participate may subsequently drop out they move

away or loss interest. Mortality or attrition rates can be us high us 20 percent per year.

Payment: payment may cause certain types of people to be attracted, making the groups

under preventative of the population.

Another disadvantage of panels is response bias. New panel member are obtain biased in

their initial responses. They tend to increase the behavior being measured, such as food

purchasing. This bias decreases as the respondent overcomes. The novelty of being on the panel,

so it can be reduced by initially excluding the data of new members. Seasoned panel members may

also give biased responses because they believe they are experts or want to look good or give the

right answer. Bias also results from boredom, fatigue, and incomplete diary entries.


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RELATIVE ADVANTAGES AND DISADVANTAGES OF LONGITUDINAL AND

CROSS SECTIONAL DESIGNS

Evaluation criteria Cross sectional design Longitudinal design

Detecting change - +

Large amount of data collection - +

Accuracy - +

Representative sampling - +

Response bias - +

CAUSAL RESEARCH

Causal research a type of conclusive research in which the major objective is to obtain

evidence regarding cause-and-effect (causal relationship).

Causal research is appropriate for the following purposes:

To understand which variables are the causes (independent variables) and which

variables are the effects (dependent variables) of a phenomenon.

To determine the nature of the relationship between the causal variables and the effect to

be predicted.

Causal research requires a planned and structured design. Although descriptive research

can determine the degree of association between variables, it is not appropriate for examining

causal relationship. Such an examination requires a causal design, in which the causal or

independent variables are manipulated in a relatively controlled environment. A relatively

controlled environment is one in which the other variables that may affect the dependent variables

are controlled or checked as much as possible. The affect of this manipulation on one or more

dependent variables is then measured to infer causality. The main method of causal research is

experimentation.


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A researcher to determine whether the presence and helpfulness of seals peoples (causal

variable) will influence the sales of housewares (effect variable). A causal design could be

formulated in which two groups of otherwise comparable housewares departments of a particular

chain are selected. For four weeks, trained sales people are stationed in one group of housewares

departments but not in the other. Sales are monitored for both groups, while controlling for other

variables. a comparison of sales for the two groups will reveal the effect of sales people on

housewares sales in department stores. Alternatively, instead of selecting two groups of stores, the

researcher might select only one set of department stores and carry out this manipulation for to

comparable time periods: salespeople are present in one time period and absent in the other.

A causal study was undertaken to measure the effect of business to business advertising

on the sales of a variety of products as well as to evaluate the effects of ad frequency schedules and

varying media weight. The study involved a participating manufacture, the publishers of the

magazines used in the study, and the tightly controlled stratification of the magazines circulation

into three cells, which were to receive light, medium, and heavy levels of advertising. Four

products in the growth stage of the products life cycle were chosen for advertisement. To obtain

clear sales data on these products, distribution channel restrictions were necessary, so that sales

could be linked to the balanced advertising sales. After the four products and the participating

magazines had been selected, the advertising cells and levels per each product were defined. At the

conclusion of the one-year study, findings supported the hypothesis that more advertising caused

an increase in sales. The study also concluded that if a product is sold through dealers, both dealers

and end users should be targeted for ads.

In this experiment the causal (independent) variable was advertising, which was

manipulated to have three levels: light, medium, and heavy. The effect (dependent) variable was

sales, and the influence of distribution on sales had to be controlled.


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RELATIONSHIP AMONG EXPLORATORY, DESCRIPTIVE, AND CAUSAL

RESEARCH

A given marketing research project may involve more than one type of research design

and thus serve several purposes. Which combination of research designs to employ depends on

the nature of the problem. We offer the following general guidelines for choosing research

designs:

When little is known about the problem situation, it is desirable to being with exploratory

research. Exploratory research is appropriate when the problem needs to be defined more

precisely, alternative courses of action identified, research question or hypothesis

developed, and key variables isolated and classified as dependent or independent.

Exploratory research is the initial step in the overall research design framework. It

should, in most instances, be followed by descriptive or causal research for example;

hypothesis developed via exploratory research should be statistically tested using

descriptive or causal research.

It is not necessary to being every research design with exploratory research. It depends on

the precision with which the problem has been defined and the researchers degree of

certainty about the approach to the problem. A research design could well begin with

descriptive or causal research. To illustrate, a consumer satisfaction survey conducted

annually need not begin with nor include an exploratory phase.

Although exploratory research is generally the initially step, it need not be. Exploratory

research may follow descriptive or causal research. For example, descriptive or causal

research results in findings that are hard for managers to interpret. Exploratory research

may provide more insights to help understand these findings.


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RESEARCH DESIGN PROCESS

Steps in the Research Design Process:

Step 1: Define the Research Problem

Step 2: Estimate the Value of the Information

Step 3: Select the Data Collection Approach

Step 4: Select the Measurement Technique

Step 5: Select the Sample

Step 6: Select the Method(s) of Analysis

Step 7: Evaluate the Ethics of the Research

Step 8: Estimate Time and Financial Requirements

Step 9: Prepare the Research Proposal

STEP 1: DEFINE THE RESEARCH PROBLEM

Problem definition is the most critical part of the research process. Research problem

definition involves specifying the information needed by the management.

Research problem definition involves four interrelated steps:

(1). Management problem/opportunity clarification,

(2). Situational analysis and

(3). Specification of information requirements.


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Management Problem/Opportunity Clarification

The basic goal of problem clarification is to ensure that the decision makers initial

description of the management decision is accurate and reflects the appropriate area of concern

for research. If the wrong management problem is translated into a research problem, the

probability of providing management with useful information is low.

Situational Analysis

The situational analysis focuses on the variables that have produced the stated

management problem or opportunity. It involves giving careful attention to company records;

appropriate secondary sources such as census data, industry sales figures, economic indicators,

and so on; and interviews with knowledgeable individuals both internal and external to the firm.

The persons interviewed will include the manager(s) involved and may include salespersons,

other researchers, trade association officials, professionals, and consumers.

Specification of Information Requirement Define Research Problem and Research

Objectives.

Research cannot provide solutions. Solutions require executive judgment. Research

provides information relevant to the decisions faced by the executive. The output of the problem-

definition process is a clear statement of the information required to assist the decision maker.


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Categories of Research

There are three general categories of research based on the type of information required.

These three categories are exploratory, descriptive and casual.

Exploratory research is concerned with discovering the general nature of the problem

and the variables that relate to it. Exploratory research is characterized by a high degree of

flexibility, and it tends to rely on secondary data, convenience or judgment samples, small-scale

surveys or simple experiments, case analysis and subjective evaluation of the results.

Descriptive Research is focused on the accurate description of the variables in the

problem model. Consumer profile studies, market-potential studies, product-usage studies,

attitude surveys, scale analysis, media research, and price surveys are examples of descriptive

research. Any source of information can be used in a descriptive study, although most studies of

this nature rely heavily on secondary data sources and survey research.

Casual Research attempts to specify the nature of the functional relationship between two

or more variables in the problem model. For example, studies on the effectiveness of advertising

generally attempt to discover the extent to which advertising causes sales or attitude change.

STEP 2: ESTIMATE THE VALUE OF THE INFORMATION

A decision maker normally approaches a problem with some information. The principle

involved in deciding whether to do more research is that research should be conducted only

when it is expected that the value of the information to be obtained will be greater than the cost

of obtaining it.


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STEP 3: SELECT THE DATA COLLECTION APPROACH

There are three basic data collection approaches in marketing research:

(1). Secondary data

(2). Survey data

(3). Experimental data

Secondary data were collected for some purpose other than helping to solve the current

problem, whereas primary data are collected expressly to help solve the problem at hand.

Major Data Collection Methods

I. Secondary Research utilization of data that were developed for some purposes

other than helping solve the problem at hand.

Internal secondary data data generated within the organization itself, such as

salesperson call reports, sales invoices, and accounting records.

External secondary data data generated by sources outside the organization,

such as government reports, trade association data, and data collected by

syndicated services.

II. Survey Research systematic collection of information directly from respondents.

Telephone interviews collection of information from respondents via telephone.

Mail interviews collection of information from respondents via mail or similar

techniques.


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Personal interviews collection of information in a face-to-face situation.

o Home interviews personal interviews in the respondents home or

office.

o Intercept interviews personal interviews in a central location, generally

a shopping mall.

Computer interviews respondents enter data directly into a computer in

response to questions presented on the monitor.

III. Experimental Research the researcher manipulates one or more variables in such

a way that its effect on one or more other variables can be measured.

Laboratory experiments manipulation of the independent variable(s) in an

artificial situation.

o Basic designs consider the impact of only one independent variable.

o Statistical designs consider the impact of more than one independent

variable.

Field experiments manipulation of the independent variable(s) in a natural

situation.

o Basic designs consider the impact of only one independent variable.

Statistical designs consider the impact of more than one independent variable.


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STEP 4: SELECT THE MEASUREMENT TECHNIQUE

There are four basic measurement techniques used in marketing research:

Questionnaires

Attitude scales

Observation

Depth interviews and projective techniques.

Primary Measurement Techniques

Questionnaire a formalized instrument for asking information directly from a

respondent concerning behavior, demographic characteristics, level of knowledge, and/

or attitudes, beliefs, and feelings.

Attitude scales a formalized instrument for eliciting self-reports of beliefs and feeling

concerning an object(s).

o Rating scales require the respondent to place the object being rated at some

point along a numerically valued continuum or in one of a numerically ordered

series of categories.

o Composite scales require the respondent to express a degree of belief

concerning various attributes of the object such that the attitude can be inferred

from the pattern of responses.

o Perceptual maps derive the components or characteristics an individual uses in

comparing similar objects and provide a score for each object on each

characteristic.

o Conjoint analysis derive the value an individual assigns to various attributes of

a product.


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Observation the direct examination of behavior, the results of behavior, or

physiological changes.

Projective Techniques and Depth Interviews designed to gather information that

respondents are either unable or unwilling to provide in response to direct questioning.

o Projective techniques allow respondents to project or express their own feelings

as a characteristic of someone or something else.

o Depth interviews allow individuals to express themselves without any fear of

disapproval, dispute, or advice from the interviewer.

STEP 5: SELECT THE SAMPLE

Most marketing studies involve a sample or subgroup of the total population relevant to

the problem, rather than a census of the entire group.

Primary Considerations in Sampling

Population determine who (or what objects) can provide the required information.

o Sample Frame develop a list of population members.

Sampling Unit determine the basic for drawing the sample (individuals, households,

city blocks, etc).

Sampling Method determine how the sample will be selected.

o Probability members are selected by chance and there is a known chance of

each unit being selected.

o Non-probability members are selected on the basis of convenience or judgment

or by some other means rather than chance.

Sample Size determine how many population members are to be included in the

sample.

Sample Plan develop a method for selecting and contacting the sample members.

o Execution carry out the sampling plan.


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STEP 6: SELECT THE METHOD(S) OF ANALYSIS

Data are useful only after analysis. Data analysis involves converting a series of recorded

observations into descriptive statements and/or inferences about relationships. The types of

analysis that can be conducted depend on the nature of the sampling process, the measurement

instrument, and the data collection method.

It is imperative that the researcher select the analytic techniques prior to collecting the

data. Once the analytic techniques are selected, the researcher should generate fictional responses

(dummy data) to the measurement instrument. These dummy data are then analyzed by the

analytic techniques selected to ensure that the results of this analysis will provide the information

required by the problem at hand.

STEP 7: EVALUATE THE ETHICS OF THE RESEARCH

It is essential that marketing researchers restrict their research activities to practices that

are essentially sound. Ethically sound research considers the interests of the general public, the

respondents, the clients, and the research profession as well as those of the researcher.

STEP 8: ESTIMATE TIME AND FINANCIAL REQUIREMENTS

Once the research design(s) has been devised and checked for ethical soundness, the

researcher must estimate the resource requirements. These requirements can be broken down into

two broad categories: time and financial. Time refers to the time needed to complete the project.

The financial requirement is the monetary representation of personnel time, computer time, and

materials requirements.


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STEP 9: PREPARE THE RESEARCH PROPOSAL

The research design process provides the researcher with a blueprint, or guide, for

conducting and controlling the research project. This blueprint is written in the form of a

research proposal. A written research proposal should precede any research projects.

Elements of the Research Proposal

Executive summary The proposal should begin with a summary of the major points

from each of the other sections, presenting an overview of the entire proposal.

Background The background to the problem, including the environmental contents

should be discussed.

Problem definition / Objective of the research Normally, a statement of the problem

including the specific components should be presented. If this statement has not been

developed (as in the case of problem identification research), the objective of the

marketing research project should be clearly specified.

Approach to the problem At a minimum, a review of the relevant academic and trade

literature should be presented, along with some kind of an analytical model. If research

questions, hypotheses, and factors influencing the research design have been identified,

then these should be included in the proposal.

Research design The research design adopted, whether exploratory, descriptive,

casual, should be specified. Information should be provided on the following

components: (1) kind of information to be obtained, (2) method of administering the

questionnaire (mail, telephone, or personal interviews), (3) scaling techniques, (4) nature

of the questionnaire (type of questions asked, length, average interviewing time), (5)

sampling plan and sample size.

Field work / data collection The proposal should discuss how the data will be

collected and who will collect it. If the field work is to be subcontracted to another

supplier, this should be stated. Control mechanisms to ensure the quality of data collected

should be described.


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Data analysis The kind of data analysis that will be conducted ( simple cross

tabulations, univariate analysis, multivariate analysis) and how the results will be

interpreted should be described.

Reporting The proposal should specify whether intermediate reports will be presented

and at what stages, what will be the form of the final report, and whether a formal

presentation of the results will be made.

Cost and Time The cost of the project and the time schedule, broken down by phases,

should be presented. A CPM or PERT chart might be included. In large projects, a

payment schedule is also worked out in advance.

Appendices Any statistical or other information that is of interest to only a few people

should be contained in appendices.

POTENTIAL ERRORS AFFECTING RESEARCH DESIGNS

Types of Errors

Surrogate Information Error: Surrogate information Error is caused by a variation

between the information required to solve the problem and the information sought by

the researcher.

Measurement Error: Measurement error is caused by a difference between the

information desired by the researcher and the information provided by the measurement

process.

Experimental Error: Experimental error is caused by a difference between the actual

impact of the independent variable(s) and the impact attributed to the independent

variable(s). Experimental error occurs when the effect of the experimental situation itself

is measured than the effect of the independent variable.

Population Specification Error: Population specification error is caused by a difference

between the populations required to provide the needed information and the population

selected by the researcher. Population specification error is caused by selecting an

inappropriate universe or population from which to collect data.


33

Frame Error: Frame error is caused by a difference between the population as defined

by the researcher and the list of population members used by the researcher. Frame error

is caused by using an inaccurate or incomplete sampling frame.

Sampling Error: Sampling error is caused by the generation of a non-representative

sample by means of a probability sampling method.

Selection Error: Selection error occurs when a non-representative sample is obtained by

non-probability sampling methods.

Non-response Error: Non-response error is caused by (1) a failure to contact all

members of a sample, and/or (2) the failure of some contacted members of the sample to

respond to all or specific parts of the measurement instrument.


34

CASES


35

CASE No. 1 ETHICAL ISSUES IN MARKETING RESEARCH

Below are given some of the situations/cases wherein ethical issues are involved. Identify the

ethical issue in each situation/case and indicate what you would do.

1. A marketing research firm assured its sample respondents that it would conduct an

anonymous survey. As such their identity would remain undisclosed. However, it used an

ultraviolet ink on each questionnaire as a result of which every respondent could be

identified though the identity mark was invisible. Later on when it came to the notice of

someone, the firm justified the use of an ultraviolet ink on the ground that it wanted to

identify defaulting respondents so that it could send them reminders. Some people

sharply reacted to this and said that such a practice was a clear deception as the firm

acted against its explicit assurance to respondents.

2. A marketing research firm has recently taken up a study of some department stores. It has

asked one of its members to visit these stores and pose as a customer and pose and

observe the buying behavior of customers. No one knows that he or she is being observed

by someone.

3. A large manufacturing company dealing in some cosmetic products has its own

marketing research cell. However, it generally uses marketing research as a sales ploy. Its

investigators try to push up the sale of its products to households when they visit them

while conducting a field survey.

4. A marketing research firm does not bother about ethical problems. It uses such date and

research techniques as would produce the findings acceptable to its clients or to justify a

particular decision.


36

5. A study is undertaken by a team of marketing researchers. A survey is planned but it has

been decided that the purpose of research, as also its sponsorship, should not be disclosed

to the respondents. This is because the team of marketing researchers feels that such a

disclosure would influence the respondents to such an extent that the proposed research

would be of no use.

6. An interviewer has been assigned the job of contacting some specific households chosen

in the sample. He visits some households and in respect of others, fills in fictitious data,

which are passed off as genuine. Nobody except the interviewer knows that some data are

fictitious.

7. A marketing research firm accepts an assignment from one of its clients even though it

knows that it would not be possible to submit the report within the stipulated time.

8. A business firm is interested in sponsoring a study with a research firm. It invites

research proposals from four different consultants. It then incorporates the ideas included

in different proposals in one single proposal submitted by the lowest bidder and assigns

him this research study.

9. A project director seeks the permission of the Marketing Research Director to use

ultraviolet ink in pre-coding questionnaires in a mail survey. He points out that although

the letter refers to an anonymous survey where the identity of the respondent would be

undisclosed, he needs the identity of the respondent would be undisclosed, he needs the

identification of the respondent so that cross tabulation of data can be undertaken. The

Marketing Research Director gives him the permission to use ultraviolet ink.

10. An interviewer adopts an unusual practice with a view to getting the cooperation of the

respondent. He assures the respondent that as soon as the survey report is ready, he will

send him the copy of the same. While making such a promise to the respondent, the

interviewer has no intention whatsoever to follow it up.

11. A research firm sometimes uses such devices as giving huge statistical data in appendices

and drafting a report full of technical jargon to give huge an impression that it is perfect

study or that the team engaged in the research is very competent.


37

CASE No. 2

THE MARKET FOR NECKTIES

Neckties have been around in India for the last several decades. Before 1960s, ties were

mostly imported from France, England, Italy and a couple of other countries. It was Zodiac that

gave impetus to the domestic tie industry in the sixties. This was followed by a Delhi-based

small company Zorex Ties Manufacturing Company Pvt. Ltd., in 1965. the ties were sold

under the brand Zorex, which later took the name Bentlay. Zorex has remained the only well-

known player specializing in neckwear. Other companies treat it as an additional item in

menswear market.

Today, the tie market is flooded with a number of brands. Bentlay is facing stiff

competition from new entrants from Korea, Japan and China. There seems to be a shift from

domestic to foreign brands. This is largely on account of liberalization in imports. This trend of

liberal imports is expected to gain further momentum in the years to come. Apart from this

discouraging trend to domestic producers, there has been another unfavorable development in

recent years the onslaught of denim wear and casual wear resulting in the reduced usage of ties.

Bentlay is now thinking seriously to sponsor a comprehensive study on the necktie

market in India. It would like the proposed study to enlighten it on the consumers profile, its

image vis--vis other manufacturers/exporters of ties in India, and the various segments in the tie

market. It would like the study to lay greater emphasis on the market segmentation.

QUESTION

You have been approached for the proposed study. How would you proceed with it,

keeping in mind the three major issues as pointed out by Bentlay?


38

CASE No. 3

THE INDIAN MOTORIST

Some time back, a leading marketing research agency was approached to conduct a

comprehensive survey on the passenger car market in India. The research design used by the

agency is described below:

The study was carried out in 13 large cities of the country. The list of cities covered is

shown in Exhibit 1 of this case. These cities were estimated to account for 51% of the total

population of cars in India. The states represented accounted for 86% of the total sales of cars in

India.

The target for this study included:

Vehicle owners

Potential owners

A total sample of 2600 was proposed by the agency. The break-up according to ownership status

was as follows:

Vehicle Owners 1850

Potential Owners 750

Total 2600

A minimum target of 650 was set of those who own a mid-priced or higher priced car.

Other targets were set according to model owned and its age, so as to match the likely profile of

the car population in India.

The distribution of the sample by city as used by the agency is given in Exhibit 2 of this

case. Respondents were located using a combination of household listings, as well as contacts at

public places such as parking lots, petrol pumps and shopping centers. The agency ensured a

geographical spread within each city covered in the survey.


39

QUESTION

Comment on the research design used by the marketing research agency.

Exhibit 1

List of cities covered in the survey

City State/State Group

Delhi Delhi

Ludhiana Punjab and Haryana

Chandigarh Punjab and Haryana

Kanpur Uttar Pradesh

Calcutta West Bengal

Patna Bihar

Bombay Maharashtra

Pune Maharashtra

Ahmedabad Gujarat

Madras Tamil Nadu

Coimbatore Tamil Nadu

Bangalore Karnataka

Hyderabad Andhra Pradesh


40

Exhibit 2

The Distribution of Sample

North

Delhi 400

Ludhiana 150

Chandigarh 150

Kanpur 200

East Calcutta 250

Patna 100

West

Bombay 350

Pune 150

Ahmedabad 200

South

Madras 200

Bangalore 200

Hyderabad 150

Coimbatore 100

Total 2600


41

CASE No. 4

RESEARCH ON THE YOUNG INDIANS MIND

Young Indians surely knowns their minds. Recently, the music channel MTV

commissioned a study with the primary objective of mapping values, attitudes, lifestyles, music

and music-related preferences. The quantitative study conducted by the Indian Market Research

Bureau (IMRB) covered 2,745 respondents in Mumbai, Delhi, Chennai, Bangalore, Kanpur and

Lucknow between ages of 15 and 34 years. Using a random sampling methodology, they covered

respondents from A, B and C households classified according to their socio-economic standing

with cable and satellite availability and the ability to view any of the available music channels.

Although there has not been much change in the understanding of the young Indian on

the basis of the research conducted last year, there has been a certain firming up of values, says

Sudhanshu Sarronwala, senior vice-president, marketing, research and communications at MTV,

The young India is more clear about what defines him then he was a year ago. Even if he is

saying essentially the same things, he or she is more convinced about them now.

THE SHOPPING SPREE

Young Indians consider it important to be seen as the best buyers, are keen to wear what

suits them irrespective of whether it is in vogue or not. They subcribe to the proposition that

Indians should buy Indian products. Take a look at some of the propositions.

People recognize that I buy only the best: Young respondents overwhelmingly respond in

favour of being seen as the best buyers. Around 64.4% of the respondents are bullish on the idea.

To what may seem as a surprise to some, more class C respondents subscribe to the proposition

than class B and class A respondents. Chennai with 78% is the strongest votary of all the six

metros. Around 65% of women subscribe to the Buy the Best belief as opposed to 61% of

them.


42

I always seek the advice of friends regarding brands and products: Around 52.19% of

respondents look to friends for advice on brand buying. Around 55% men and 49% women

subscribe to the proposition. Class C respondents come out more strongly in favour of the

proposition than class A and B respondents. Youngsters in Mumbai display the most independent

disposition.

I wear what suits me, irrespective of whether its fashionable or not: Around 69% are in

favour of the proposition. Interestingly, Chennai often perceived as being conservative and

traditional comes out strongly in favour of fashion over comfort. Class A respondents display a

more individualistic streak than their B and C counterparts.

Indians should always buy Indian products: Around 52.16% of the respondents agree to

the proposition especially in Kanpur and Lucknow. Class C respondents agree to the proposition

more vehemently than class A and B respondents. The relatively more mellow 25-34 years old

set subscribe to the same more strongly than the 15-24 years old.

THE BIG ISSUES

Life should not be taken too seriously: Around 57.66% of the respondents say yes. A sluggish

economy and political uncertainly not withstanding, young Indians believe in having fun. Here,

Chennai continues to dominate the stereotype, rooting more strongly for the proposition. There

are very few no differences across categories.

One should rebel if someone is being unreasonable: This proposition is supported by

57.46%. Mumbai displays the highest levels of expediency. Kanpur and Lucknow are high on

the inclination to rebel against the injustice factor. Class A and B respondents muster a bigger

fighting spirit than class C respondents.

Job security is more important than money: Not money, nor adventure, it is security and

stability that young Indians look for in their jobs more than anything else. Chennai displays a

stronger materialistic streak than all other metros, rather surprising given its otherwise high

agreement on all issues deemed safe. More female respondents than male and class A and B

respondents than C agreed with the proposition.


43

RIDDING ON RELATIONSHIP

Pre-marital sex is a way of life: It is a far from being a way of life for young Indians in

the nineties. Living in is not yet acceptable and we will marry out of our own choice is the

chorus. Of all the respondents, only 29.33% agree with the proposition. Mumbai, is the most

responsive to the idea. Confirming widely held perceptions, more class A respondents than B and

C are positively disposed towards the proposition. More male respondents than female

respondents are open to the idea with 32% of males and around 22% of females agreeing with

the proposition.

Couples should live together before marriage: Only 31.35% of the respondents are in

favour of the proposition. More class C and B respondents are in favour of the proposition.

Kanpur and Lucknow, in a not so regular display of openness, subscribe more strongly than the

rest of the metros. Around 35% of male and 28% of female respondents agree.

ON PARENTS AND FRIENDS

Young Indians are comfortable viewing parents not only as providers, guides and

philosophers but also as friends and would obey their parents even if it hurt them. More female

respondents maintain a friendly equation with their parents. Mumbaites are relatively the most

muted in their support of the proposition that parents are friends and so are class A

respondents.

Friends are the center of all my activities: More than half the respondents (53.07%) root

in favour of the proposition. The pub capital of the country, Bangalore, with its high number of

college campuses roots most strongly for the idea. Understandably, more 15-24 year old than 25-

34 year old view life as being friend-centric. More class C respondents than class A and B

subscribe to the idea.

I try to obey my elders even if it hurts: Of the respondents, 65.63% agree with the

proposition. Mumbai, stays true to its individualistic and self-indulgent streak by scoring the

lowest amongst the metros. Bangalore with nearly 80% scores the highest. The class breaks

display hardly any differences, dispelling populations of class A youngsters being more spoilt

and rebellious than their class B and C counterparts.


44

Its ok to take parental help to make it in life: People in Mumbai are the most reluctant in

this regard. Often viewed as being individualistic and self-sufficient, they score the lowest

among all metros confirming popular perceptions. More class C respondents than class A and B

and more 15-24 years old than 24-34 year olds agree with the proposition. Overall, young

Indians are very comfortable viewing parents as providers.

THE SONG AND DANCE TRIP

When it come to entertainment, youngsters are extremely bullish on television, and

construct their ideal music channel around a music mix, 72.25% are in favour of Hindi

film/Hindi pop and regional language music. Hindi film music, both old and new reigns supreme

appealing to all age groups and class groups. Delhities are more bullish on Hindi pop. Regional

language music finds greatest favour down south, more in Chennai than Bangalore. International

music and Indian pop are patronized more by the 15-24 year old segment than the older lot. The

25-34 year old prefer Hindi film music and regional music.

Television is the ultimate entertainment: More than half (55.22%) of the respondents

agree with the proposition. Given the multiplicity of entertainment sources, Mumbai is the least

bullish, while Chennai, Kanpur and Lucknow display the greatest enthusiasm, class C

respondents root more strongly for the proposition than class A and B respondents, access to the

entertainment opportunities in all probability being the deciding factor. Teenagers and young

Indians patronize music channels more than the 25-34 year olds. As expected, class A

respondents are less enthusiastic than class B and C respondents.

Questions for Discussion

What type of research study is this?

What are the limitations of this study?

Which sampling technique is used and Why?


45

CASE No. 5

LOREAL COMES OUT OF ITS NICHE

Just when most of the new multinational cosmetic players are taking a hard look at their

Indian business, the $12 billion French company, LOreal, is slowly and steadily making a

splash.If there is any serious competitor to the established Lakme-Lever it is LOreal, industry

watchers say.

Already, while most of the players have been reworking their India straegy, LOreal with

an estimated turnover of Rs.12 crore has been working to script. A script which has seen it

gradually unfurl a porfolio in the various categories of the Rs.1,300 crare Indian cosmetics

market. From shampoos to skin care to hair colour, it has naw taken competition head on with

Maybelline range of coloured cosmatics.

LOreals India strategy is simple: identify the gaps and plug them.Istead of launching a

clutch of the products at the same time, it gone in for a slow and steady, well-paced portfolio

expansion. After establishing an equity with premium products, it is naw attacking the mass

markets. Says Geoff Skingsley, Managing Director Indelor, the fully-owned subsidiary of the

LOreal group. Our strategy is largely product feature-driven.We are trying to introduce new

products and categories that are already existing in other markets.

In a way, LOreal used niche products to test the market before plunging headlong with

mass based brands. Like after the high priced skincare and haircare brands, the newly launched

Maybelline colour cosmetics is clearly competitively pitched. And this has got competition

worried. After Hindustan Lever, LOreal has the largest portfolio of brands which is making us

very alert to market demands, says a Lakme manager.

Worldwide, the LOreal group has over 900 brands in cosmetics alone. In fact, last year

cosmatics with brands in haircare, skin care, make-up, suncare, toiletries and perfumes

accounted for 81.3 per cent, of the turnover. This was followed by producers in pharma 17 per

cent, dermatology 1.1 per cent and others (0.6 per cent).


46

In India, too, cosmetics and toiletries has been their mainstay. This when competitors are

reshuffling porfolios or abandoning the m arket. A few monts ago, the $3.5 billion Benckiser

pulled out of India after slogging it out for four years.Recently, Modi Revlon deserted the

skincare an is reworking its marketing strategy to focus on colour cosmetics.It is also developing

the beauty parlour channel.Delhi-based Oriflame and Avons direct marketing strategy has not

made much of a dent with the customer.Most of these players have realised the need for

differentiated products at different price points to survive in the extremely fragmented Indian

market.

And LOreal hasent been in a great hurry. It has entered India with two of its mainline

umbrella brand--Laboratories Garnier and LOreal Paris. Lancome, another umbrella brand is

being imported and retails at some of the upmarkets stores in Mimbai and Delhi. But the launch

pad was Garniers Ultra Doux shampoo in 1991.

Today , the brand has only a one per cent in the Rs.350 crore shampoo category. This was

followed by the Garniers Synergie skin care range and the Excellence hair colour.

Says Binita Kripalani, Marketing director, Indelor,We decided to get into the skin care

because hair colour is difficult to manufacture and we would have had to import the product

which was no allowed, The foray into skin care helped build the distribution channelss and

establish the LOreal name. Apart from one of two basic moisturisers and a facewash, the

synergie range consisted of differential products like anti-wrinkle cream, day cream and night

wear cream.

By staying clear of the extremely competitive basic category, LOreal evolved-product

focus helped it gain a toe-hold in the Rs.650 crore skin care segment. It did so by launching only

non basic, special-benefit offerings.It concentrated on building entirely new categories according

to the needs that were tapped by continuous research. Says Skingsely,The degree of

persuasiveness required to build new categories based on entirely new products is immense.


47

Although Synergie has been able to garner only three per cent of the Rs.650 crore skin

care market, certain products in the line the wrinkle-free formulation is used by around one-third

of the two million targeted users. Says Skingsley,According to the needs tapped we have

launched a select portfolio of products and our effort is to create product feature-led categories.

There was a distinct need for an age-controlling product aming the 30-plus consumers in

the 12-15 million urban educated women segment.In this Rs. 165 crore niche segment, Lakme is

the market leader with a 32 per cent share.It is followed by synergie at 28 per cent and Ponds at

22 per cent.

Last year LOreal made a foray into the Rs.38 crore hair colour category. Internationally,

hair care accounts for 52 per cent of the entire LOreal portfolio. The Indian hair dye market was

largely dominated by Godrej which had 86 per cent market share and JK Helene Curtiss

Trutone, besides a range of herbal dye from the unorganised sector. Hair dye was perceived as an

undesirable but necessary product with no aspirational or pleasurable associations.

The LOreal strategy for hair colour was similar. Says Kriplain,Our objective was to

change the existing perceptions about hair colour and to expand the segment in India.Earlier hair

colour addressed only those who were greying but we wanted to expand the user-base to those

who used colour for style, Which meant appealing to entirely new users.

To make this happen, booklets and leaflets were given to retailers and around 50 sales

persons spent time educating the retailers about the products and destroying existing myths about

hair colour. Excellence cream and castings is naw available in around 4,000 retail outlets.

Currently the hair colour products have achieved around 11 per cent penetration in the category,

even as Godrej dominates the market with a share of 86 per cent.


48

Realising the opticism over such products and the lack of awareness and research on

category, LOreal decided to tap the influencers.Last year, it set up the salon division and

launched LOreal Professional. World over, the Professional Division was introduced to rope in

the beauty parlours hairdressers. This was not in keeping with their international trend of taking

the professional route before the consumer. Says Tarun Mehra, marketing manager, LOreal

professional,Beauty parlours and hair-dressers are more in touch with our target consumer and

to provide exclusivity of product portfolio we decided to launch separate brands under the

professional division.These products--Majirel,Diacolour and Osmose came under the hair colour,

hair care, perm and cutting categories.

Research conducted by the company reveald that there was a serious need for a technical

traning. So,LOreal decided to cultivate this very important channel through which they could

tap the beauty needs of their target segment, So far, LOreal has around 1,500 hair dressers

which stock its productsMajirel,Diacolour (non-ammonia which it launched recently), Perm

and hair care and Osmose conditioner. Osmose was launched when customers using LOreal

products expressed the need for a hair care shampoo or conditioner.

Having established a presence, LOreal has how positioned Maybelline as a

technologically superior product in the Rs.400 crore colour cosmetics market. Says

Kingsley,Quality aspirations of Indian consumers are same. The sub areas of sub differentiation

are price value perceptions, choice and the retail experience,Adds Sunita Bagard, group product

manager for Maybelline,The price premium is very reasonable given the value provided by each

of the products in the basket. In fact, it is the cheapest of all the new foreing brands and is

today, in the Rs.400 crore colour cosmetic market, Lakme, along with its sub-brands Elle 18 and

Orchids has a 52 per cent share. It is followed by Tips and Toes at seven per cent and Revlon at 3

per cent. In the next three years, LOreal wants to be the number one or two player of its product

categories. And it knows that taking on Lakme Lever is not going to be cakewalk.


49

Questions for Discussion

What research design has been adopted for this study?

Prepare a sample questionnaire which might be used to collect data for this study?


50

MODULE 3

(SECONDARY

DATA)


51

Primary Data: Data originated by the researcher for the specific purpose of addressing the

research problem.

Secondary Data: Data collected for some purpose other than the problem at hand.

A COMPARISION OF PRIMARY AND SECONDARY

Primary Data Secondary Data

Collection purpose For the Problem at hand For other Problems

Collection process Very involved Rapid and easy

Collection cost High Relatively low

Collection time Long Short

Disadvantages of secondary data:

Because secondary data have been collected for purpose other than the problem at hand,

their usefulness to the problem may be limited in several important ways, including relevance

and accuracy. The objectives, nature and methods used to collect the secondary data my not be

appropriate to the present situation. Also, secondary data may not be accurate or they may not be

completely current or dependable.


52

CRITERIA FOR EVALUATING SECONDARY DATA

Criteria Issues Remarks

Specifications and

Methodology

Data collection method

Response rates

Quantity of data

Sampling Techniques

Sample size

Questionnaire design

Field work

Data analysis

Data should be reliable, valid

and generalizable to the

problem at hand.

Error and accuracy Examine errors in approach,

research design, sampling, data

collection, data analysis, reporting.

Assess accuracy by comparing

data from different sources.

Currency Time lag between collection and

publication

Frequency of updates

Census data are periodically

updated by syndicated firms.

Objective Why were the data collected? The objective will determine

the relevance of data.

Nature Definition of key variables

Units of measurement

Categories used

Relationships examined

Reconfigure the data to

increase their usefulness, if

possible.

Dependability Expertise, credibility, reputation

and trustworthiness of the source.

Data should be obtained from

an original rather than an

acquired source.


53

CRITERIA FOR EVALUATING SECONDARY DATA

1. Specifications: Methodology Used to Collect the Data

The specifications or the methodology used to collect the data should be critically

examined to identify possible source of bias. Such methodological considerations include

size and nature of sample, response rate and quality, questionnaire design and

administration, procedures used for field work, and data analysis and reporting

procedures. These checks provide information on the reliability and validity of the data

and help determine whether they can be generalized to the problem at hand.

2. Error: Accuracy of Data

The researcher must determine whether the data are accurate enough for the

purpose of the present study. Secondary data can have number of sources of error, or

inaccuracy, including errors in the approach, researcher design, sampling, data collection,

analysis and reporting stages of the project. Moreover, it is difficult to evaluate the

accuracy secondary data, because the researcher did not participate in the research. One

approach is to find multiple sources of data and compare them using standard statistical

procedures.

3. Currency: When the Data Were Collected

Secondary data may not be current, and the lag between data collection and

publication may be long, as in the case with much census data. Moreover, the data may

not be updated frequently enough for the purpose of problem at hand. Marketing research

requires current data; therefore the value of secondary data is diminished as they become

dated.

4. Objective: The Purpose for Which the Data Were Collected

Data are invariably collected with some objective in mind and fundamental

question to ask is, why were the data collected in first place? The objective for

collecting data will ultimately determine the purpose for which that information is

relevant and useful. Data collected with a specific objective in mind may not be

appropriate in another situation.


54

5. Nature: The Content of the Data

The nature, or content, of the data should be examined with the special attention to

the definition of key variables, the units of measurement, categories used, and the

relationships examined. If the key variables have not been defined or are defined in

manner inconsistent with the researchers definition, then the usefulness of the data is

limited. Consider, for example, Secondary data on consumer preferences for TV

programs. To use this information, it is important to know how the preference for

programs was defined. Was it defined in terms of programs watched most often, the one

considered most needed, most enjoyable, most informative or the program of greatest

service to the community?

Likewise, secondary data may be measured in units that may not be appropriate

for the current problem. For example, Income may be measured by individual, family,

household or spending unit and could be gross or net after taxes and deductions. Income

may be classified into categories that are different from research needs. If the researcher

is interested in high income consumers with gross income household incomes of over

$90,000, secondary data with income categories of less then $15,000, $15,001-$35,000,

$35,001-$50,000 and more than $50,000 will not be of much use.


55

6. Dependability: How Dependable Are the Data?

An overall indication of the dependability of data may be obtained by examining

the expertise, credibility, reputation and trustworthiness of the source. This information

may be obtained by checking with others who have used the information provided by

source. Data published to promote sales, to advance specific interests or to carry on

propaganda should be viewed with suspicion. The same may be said of data published

anonymously or in the form which attempts to hide the details of the data collection

methodology and process. It is also pertinent to examine whether the secondary data

came from original source, one that generated the data or an acquired source, one that

procured the data from an original source. As a general rule, secondary data should be

secured from an original rather than an acquired source. There are at least two reasons for

this rule: First, an original source is the one that specifies the details of data collection

methodology. Second, an original source is likely to be more accurate and complete then

secondary source.

CLASSIFICATION OF SECONDARY DATA

Secondary Data

Internal External

Syndicated

Services

Computerised

Databases

Published

Materials

Requires

further

processing

Ready to use


56

Internal Data are those generated within the organisation for which the research is being

conducted. This information may be available in a ready-to-use format, such as information

routinely supplied by management decision support system. On the other hand, these data may

exist within the organization but may require considerable processing before they are useful to

the researcher.

External Data, on the other hand, are those generated by sources outside the organization. These

data may exist in the form of published material, on-line databases or information made available

by syndicated services.

INTERNAL SECONDARY DATA

Internal sources should be the starting point in the search for secondary data. Because

most organizations have a wealth of in-house information, some data may be readily available.

Secondary internal data have two significant advantages. They are easily available and

inexpensive. In fact, internal secondary sources are generally the least costly of any source of

marketing research information; yet these data often are not fully exploited.

Database Marketing

Database marketing involves the use of computers to capture and track customer profiles

purchase detail. This secondary information serves as the foundation for marketing programs or

as an internal source of information related to customer behaviour.

To remain competitive, companies have come to realize the importance of providing

customized services and product solutions. To operate at the individual customer level (some

times called micromarketing level) requires an understanding of the significant differences in

various customer groups. Direct mail is the promotional tool that relies most heavily on internal

secondary databases for program design and evaluation. Segmenting a customer base to offer and

measure response to customized promotional messages, product offerings or payment and

pricing packages is the foundation of direct marketing techniques used today in business.


57

PUBLISHED EXTERNAL SECONDARY SOURCES

Published external sources may be broadly classified as general business data or

government data. General business sources comprise guides, directories, indexes and statistical

data. Government sources may be broadly categorized as census data and other publications.

General Business Data: Businesses publish a lot of information in the form of books,

periodicals, journals, news papers, magazines, reports and trade literature. This information can

be located by using guides, directories and indexes. Sources are also available for identifying

statistical data.

Guides: guides are an excellent source of standard or recurring information. A guide may help

identify other important sources of directories, trade associations and trade publications. Guides

are one of the first sources a researcher should consult.

PULISHED

SECNDARY DATA

General business

sources

Government

sources

Other

Government

publications

Census Data Indexes Guides Directories Statistical

data


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Directories: Directories are helpful for identifying individuals or organizations that collect

specific data.

Indexes: It is possible to locate information on a particular topic in several different publications

by using an index. Indexes can, therefore, increase the efficiency of the search process.

Non government statistical data: published statistical data of great interest to researchers.

Graphic and statistical analysis can be performed on these data to draw important insights.

COMPUTERIZED DATABASES:

Online Databases: Databases, stored in computers that require a telecommunications network to

access.

Internet Database: Internet database can be accessed, searched and analyzed on the internet. It is

also possible to download data from the internet and store it in the computer or an auxiliary

storage device.

Off-line databases: Databases that is available on diskette or CD-ROM.

SYSNDICATED SOURCES OF SECONDARY DATA

Syndicated Services: Information services offered by marketing research organizations that

provide information from a common database to different firms that subscribes to their services.


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A CLASSIFICATION OF SYNDICATED SERVICE

SYNDICATED DATA FROM HOSEHOLDS

Surveys: Interviews with a large number of respondents using a predesigned questionnaire.

Psychographics: Quantified psychological profile of individuals.

Lifestyle: A lifestyle may be defined as a distinctive pattern of living that is described by the

activities people engage in, the interest they have and the options they hold of themselves and the

world around them.

Units of

Measurement

Households/

Consumer

Institutions

Industrial Firms Retailers

Electronic

Scanner Services Surveys

Wholesalers

Audits

Direct

Inquiries

Clipping

Services

Corporate

Reports

Mail Diary

Panels

Purchas

e

Media

Psychographic

and Lifestyles

General Advertising

Evaluation

Volume

Tracking Data

Secondary

Diary Panels

Secondary

Diary Panels

Scanner Diary Panels

with Cable TV


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OVER THE SYNDICATED SERVICES

Type Characteristics Advantages Disadvantages Uses

Surveys Surveys conducted at regular intervals

Most flexible way of obtaining data;

information on

underlying motives

Interviewer error; respondent errors

Market segmentation, advertising theme

selection and advertising

effectiveness

Diary

Purchase Panel

Households provide

specific information

regularly over an

extended period of time; respondents

asked to record

specific behaviors as they occur.

Recorded purchase

behavior can be

linked to the

demographic/ psychographic

characteristics.

Lack of

representativeness;

response bias;

maturation.

Forecasting sales, market

share, and trends;

establishing consumer

profiles, brand loyalty and switching; evaluating test

markets, advertising and

distribution.

Diary Media

Panels

Electronic device

automatically recording behavior,

supplemented by a

diary.

Same as dairy

purchase panel.

Same as diary

purchase panel.

Establishing advertising

rates; selecting media program or air time;

establishing viewer

profiles.

Scanner

volume

tracking data

Household purchases

are recorded through

electronic scanners in

supermarkets.

Data reflect actual

purchases; timely

data less expensive.

Data may not be

representative; error in

recording purchases;

difficult to link

purchases to elements

of marketing mix other

than price.

Price tracking, modeling

and effectiveness of

in-store promotion.

Scanner diary

panels with

Cable TV

Scanner panels of

households that

subscribe to cable

TV.

Data reflect actual

purchases; sample

control; ability to

link panel data to

household

characteristics.

Data may not be

representative; quality

of data limited.

Promotional mix

analyses, copy testing,

new-product testing,

positioning.

Audit Service Verification of

product movement

by examining

physical records or

performing inventory

analysis.

Relatively precise

information at the

retail and wholesale

levels.

Coverage may be

incomplete; matching

of data on competitive

activity may be

difficult.

Measurement of

consumer sales and

market share, competitive

activity, analyzing

distribution patterns:

tracking of new products.


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Industrial

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