RESEARCH METHODOLOGY

By

B. CHANDRA
DEPARTMENT OF MANAGEMENT STUDIES
ISM, DHANBAD
 Research Methodology
Meaning of research Research is a scientific and systematic investigation and contribution of
new facts to the existing repertoire/ stock of knowledge in any branch. Thus, it is a systematic
quest of finding effective solution to a problem.
Why study Business research ?
Business research is a systematic inquiry that provides information to guide managerial
decisions. More specifically, it is a process of planning, acquiring, analyzing, and disseminating
relevant data, information, and insights to decision makers in ways that mobilize the
organization to take appropriate actions that, in turn, maximize Business performance.

Factors stimulating interests in studying Research Methods :

1. Explosive growth and influence of internet
2. Stakeholders imposing greater influence
3. More vigorous competition.
4. More govt. interventions.
5. More complex decisions.
6. Maturing of management as a group of disciplines.
7. Greater computing power and speed.
1. Lower cost data collection.
2. Advanced visualization tools
3. More integration of data DATA WAREHOUSE
4. More and faster access to information DBMS & RDBMS
5. Advanced analytical tools for enhanced insights DATA MINING & ARTIFICIAL INTELLIGENCE
6. Customized Reporting
8. New perspective on established research methodologies.
 Using Data Warehouse and Data Mining in Marketing Research

DATA SOURCES
Company Records BUILD DATA
Surveys WAREHOUSE
Other Sources

DATA MINING
Look for patterns of
Use the mined data to design Purchase, Behaviour,
Marketing or Communication Attitudes by analysing
Campaigns. Data from Warehouse

Measure results of the campaign,

And refine/repeat the process
If needed
 Big data: analytics and decision making
The term big data refers to data that cannot be stored, processed and
analyzed for timely and accurate decision making by traditional means.
The reason for this is that this data is of such a large volume, velocity and
variety (3 Vs) that it exceeds IT capacity.
This current situation is best exemplified by the fact that 90% of all data that
exists today was created within the last two years (Forbes, 2011).
As a result, developments have been made in order to measure variables
through ever improving digital sensors, communications and computational
power. Moreover, increasing data-storage capacity has created huge
collections of data.
Analytic and decision making tools for big data can allow companies to
discover trends and characteristics about their customers that might
otherwise remain hidden, from data that were never apparent or intended
in the source information.
 Research Areas in Management (Scope)

MARKETING

SEGMENTATION RESEARCH PRODUCT RESEARCH

Determine the basis of segmentation Test concept

Establish market potential and Determine optimal product
responsiveness for various design
segments
Package tests
Select target markets
Product modification
Create lifestyle profiles:
demography, media, and Brand positioning and
product image characteristics repositioning
Test marketing
Control score tests
 PROMOTIONAL RESEARCH
Optimal promotional budget
0.00% APR Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising effectiveness
Claim substantiation
PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
$ALE
Initiating and responding to price changes
DISTRIBUTION RESEARCH
Determine
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets
Personnel :
Manpower Planning
Performance appraisal systems
Conflict management
Design of incentive plans
Leadership styles.
Training methods
Change Management.
Job satisfaction. Etc.
Finance :
Financial performance .
Cost analysis model
Portfolio management.
Break- even analysis.
Working Capital management model.
Economic growth models. Etc.
Production :
Forecasting
Inventory control
Master production scheduling.
Quality control
Work design.
Maintenance management.
Method study.
Flow and job shop scheduling etc.
 Types of Research
Basic Research (Fundamental/Pure research)

Applied Research
Problem identification research
Problem solving research
 A Classification of Applied Research
Applied Research

Problem Problem Solving

Identification Research Research

Market Potential Research

Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Promotion Research
Distribution Research
Job satisfaction research
 JARGONS AND TERMINOLOGY
CONCEPTS AND OVERVIEW
VARIABLES : In practice , the term variable is used as a synonym for
construct or the property being studied. In this context, a variable is a
symbol of an event, act, characteristics, trait, or attribute that can be
measured and to which we assign categorical values.
For purpose of Data entry and analysis, we assign numerical value to a
variable based on the variables properties.

RANDOM VARIABLES : A variable is random if it takes on different values as a

result of the outcomes of a random experiment. The values of the random
variable are the numerical values corresponding to each possible outcome
of the random experiment.
Types of Random variables

Dichotomous Discrete Continuous

 Dichotomous variables : It takes on only two values, reflecting the
presence and absence of a property. The values are generally represented
by 0 & 1. For ex. Male or Female.
Discrete variables : If a random variable is allowed to take on only a
limited number of values is called discrete random variable.
Continuous variable : If a random variable is allowed to assume any value
within a given range or in some cases , an infinite set , it is a continuous
random variable.
Independent and Dependent Variable : If one variable depends upon or is
a consequence of the other variable is termed as dependent variable, and
the variable that is antecedent to the dependent variable is termed as
independent variable.
Independent variable a.k.a Predictor, Presumed cause, Stimulus, Antecedent,
Manipulated.
Dependent variable a.k.a Criterion, Presumed effect, Respond, Consequence,
Measured outcome.
Moderating Variables (MV) : It is a second independent variable which
has got significant or contingent effect on the originally stated IV-DV
relationship. For ex. Commission based compensation (IV) will lead to
increased sales productivity (DV) per worker, especially among younger
workers (MV).
 Extraneous Variables (EV): Variables other than the independent variables ,
that influence the dependent variables are termed as extraneous variables.
Intervening variables (IVV) : An intervening variable is a conceptual
mechanism through which IV and MV might affect the DV. IVV may be defined
as that factor which theoretically affects the observed phenomenon but
cannot be seen, measured, or manipulated; its effect must be inferred from
the effects of the independent and moderate variables on the observed
phenomenon.
In the case of compensation hypothesis, one might view the intervening variable
to be job satisfaction.
An example illustrating the relationships among the above stated variables.
A promotional campaign (IV) will increase savings activity (DV) , especially when
free prizes are offered (MV) , but chiefly among small savers (EV-control). The
results come from enhancing the motivation to save (IVV).
 Propositions and Hypothesis

Proposition is defined as a statement about observable phenomena (concepts)

that may be judged as true or false. When a proposition is formulated for
empirical testing , it is called hypothesis.
A hypothesis is an unproven statement or proposition about a factor or
phenomenon that is of interest to the researcher.
Hypotheses also described as proposition in which variables are assigned to
cases.
A Case is defined as the entity or thing the hypothesis talks about.
For example: In Udaipur (case) Colgate toothpaste is the most preferred
(variable) brand. Also, In Rajasthan (cases) Colgate toothpaste is the most
preferred (variable) brand

Descriptive Hypothesis : It states the existence, size, form, or distribution of

some variable. For ex. 70% of high school educated males (cases) are
unemployed (variable)

Relational Hypotheses : These are statements that describe a relationship

between two variables with respect to some case. For ex. Foreign brands
(variable) are perceived to be of better quality (variable) by Indian (case) than
the indigenous brands. The nature of relationship between country of origin
and perceived quality is not specified.
 Correlational Hypotheses : It states that the variables occur together in some
specified manner without implying that one causes the other. For ex. The
people of Udaipur prefer eating fast food than Jaipur. Such weak claims are
often made when there are more basic causal forces that affect both variables.
Explanatory (causal) hypotheses : There is an implication that the existence of
or a change in one variable causes or leads to a change in the other variable.
For ex. An increase in disposable income leads to the growth of entertainment
industry.
ROLE OF THE HYPOTHESIS
It guides the direction of the study.
It identifies facts that are relevant.
It suggests the appropriate form of research design.
It provides a framework for organizing the conclusions.
FEATURES OF A STRONG HYPOTHESIS
Adequate for its purpose.
Testable
Better than its rivals.
 Types of Data
There are broadly two types of Data
1) Primary Data 2) Secondary Data

Primary Data : Data originated by the researcher for the specific purpose of
addressing the research problem.
Secondary Data : Data collected for some purposes other than the problems at
hand. For ex. A a retail mart wants to find out the criteria used by the
households to select departmental stores. The secondary data can be obtained
from Marketing Journals (Journal of Retailing, Journal of Marketing Research
etc.)
A COMPARISON OF PRIMARY AND SECONDARY DATA

Primary Data Secondary Data

Collection purpose For the problems at hand not at hand
Collection process very involved rapid and easy
Collection cost High Low
Collection Time Long Short
 Primary Data : There are two types of primary data.
1) Qualitative Data 2) Quantitative Data

Quantitative Data
A) Descriptive B) Causal

Observational
Survey Data Experimental Data
And other data

Secondary Data : There are two types of secondary Data

1) Internal 2) External
Internal Data (Types) External Data (Types)
Ready to use Published materials
Requires further processing Computerized database
Syndicated services
Data that can be exploited by businesses can broadly be classed into the following
three categories (PwC Australia, 2012):
Internal data
Consists of information that a business collects through its own systems and processes.
It can consist of both quantitative and qualitative information and is typically data type
that provides the greatest insights for a business.
For example, Wal-Mart handles more than one million customer transactions every hour,
which it imports into databases estimated to contain more than 2.5 petabytes of data.
This information enables the retailer to map out buyer behaviour as well as
merchandising and operational strategies.
Structured external data
Is provided by third-party sources. It often requires processing in order to be coupled
with existing internal information to yield even greater insights.
Face book, for example, processes 2.5 billion pieces of content and 500+terabytes of data
each day. The social network also pulls in 2.7 billion Likes, 300 million photos per day, and
scans approximately 105 terabytes of data each half hour. This data provides a significant
amount of information about user behaviour.
Unstructured external data
Comes from sources outside of the control of a business but with a potential impact on it.
It can provide concise and targeted business insights when coupled with internal data.
For example, when a search is conducted on Google, the search engines algorithm takes
into account over 200 factors, such as relevance, social media, geography, advertising,
collective popularity and so forth. This essentially makes sense of unstructured data in
order to deliver the most relevant results to its users.
 RESEARCH PROCESS
Step 1. Problem Definition
Discover the management dilemma
Define the management question
Define the research question
Refine the research questions
Step-2. Research Proposal
Step-3. Development of an Approach to the problems
Formulating an objective/theoretical framework.
Developing an analytical models, research questions, and hypothesis
Step-4. Research design formulation.
Data collection design
Sampling design.
Instrument development and pilot testing
Step-5. Data collection and preparation
Step-6. Data preparation and analysis.
Step-7. Report preparation and presentation.
Step-8. Management Decision.
 Problem Formulation / Definition
Problem definition is A broad statement of the general problem and
identification of the specific components of the research problem.
It allows researcher to obtain all the information needed to address the
management decision problem.
It guides the researcher in proceeding with the projects.
Broad statement : It is the initial statement of the research problem that
provides an appropriate perspective of the problem.
Specific components : It focus on the key aspects of the problem and provide
clear guidelines on how to proceed further.
Management decision problem Research problem
Should a new product be introduced ? To determine consumer
preferences and purchase
intentions for the
proposed new product.
Should the Ad. Campaign be changed ? Determining the
effectiveness of
the current Ad. campaign
 Tasks Involved in defining the Problem
1) Discussions with Decision Maker (s)
2) Interview with the experts.
3) Secondary Data analysis.
4) Literature Review.
5) Qualitative Research.
Environmental context to the problems
Factors having impact on the definition of the Research Problems.
1) Past information and forecasts.
2) Resources and constraints.
3) Objectives
4) Test unit property (Respondents Behaviour) 5) Legal Environment
6) Economic Environment 7) Technological skills.
LITERATURE REVIEW
Literature review is the systematic study of scholarly articles, publications,
scant literature for getting the relevant data and trends from the previous
research. It also generates the need for proposed research work by
appraising the shortcomings or information gaps in secondary data sources.
 Summary of the Beginning Stages of
Marketing Research
Symptom of Marketing Problem Sales are not picking up for a new
product/brand

Exploratory Research

Initial understanding of Possible The brand has an image problem

Causes of the Problem

How can we improve the brands

Marketing Decision Problem image?

Formulation of Research Problem See next slide

Statement of Research Objectives See next slide

 Summary of the Beginning Stages of
Marketing Research - Continued

Research Questions: Research Objectives

1) What is the current image of 1) To determine our brands

our brand compared to
competitors brands?
2) What is the role of our price,
packaging, distribution,
advertising, etc on the
current image of our brand?
3) Will a change in packaging
lead to a positive change in
image?
image compared to
competitors brands.
2) To determine the source of
our current image problems.
3) To examine the specific role
of packaging in the present
image of our brand.
 RESEARCH PROPOSAL
Once the research gap is established by defining the problem, the research
proposal is made. Research proposal is a written document which suggests the
projects purpose and the proposed methods of investigation. Time and
budgets, responsibilities and obligations are spelled out.
DEVELOPMENT OF AN APPROACH TO THE PROBLEM
Components of the approach :
1. Objective /Theoretical Framework.
2. Analytical Model .
a. Verbal Model
b. Graphical Model
c. Mathematical Model
3. Research Questions (RQ)
4. Hypotheses.
5. Specification of Information needed.
Objective/theoretical Framework : Research should be based on objective
evidence and supported by theory. Objective evidence is gathered by
compiling relevant findings from secondary sources. Theory is a conceptual
scheme based on foundational statements called axiom, which are assumed to
be true. The researcher should rely on theory to determine which variables
should be investigated.
 Analytical Model : It is a set of variables and their interrelationship designed to
represent , in whole or in part, some real system and process.
Verbal Model : The variables and their relationships are stated in prose form.
Graphical Model : It is visual and used to isolate variables and to suggest
directions of relationships.
Mathematical Model : Explicitly specify the relationships among variables,
usually in equation form.
EXAMPLE OF MODEL BUILDING
Objective : Analyzing the key factors for a Retail store patronage/ Loyalty.
Verbal Model : A consumer first becomes aware of the retail store. That person
then gains an understanding of the store by evaluating in terms of the factors
comprising choice criteria. Based on the evaluation, the consumer forms a
degree of preference for the store. If preference enough, the consumer will
patronize the store.
 Graphical Model
Patronage

Preference

Understanding : Evaluation

Awareness
Mathematical model
n
y = a0 + ai +xi
i=1
Where, y = Degree of preference
a0 , ai = Model parameters to be examined statistically.
xi = Store patronage factors that constitute the choice criteria.
 Research Questions (RQs)
Research questions are refined statements of the specific components of the
problem.
The formulation of research questions are not only guided by the problem
definition , but also the theoretical framework and the analytical model
adopted .
Development of Research questions and hypothesis
Components of the problem
Objective / Theoretical framework
Research questions
Analytical Model
Hypothesis
For Ex. :
RQ : Do customers of Big Bazaar exhibit store loyalty ?
H : Customers of Big Bazaar are loyal.
Specification of Information needed
By focusing on each component of the problem and the analytical framework,
models, RQs, Hypothesis; researcher can determine what information is
required to carry out the research project.
 RESEARCH DESIGN
Research design is a blueprint for the collection , measurement, and analysis of
data.
It specifies the details of the procedures necessary for obtaining the information
needed to structure and/or solve research problems.
Components of a Research Design
Design the exploratory, descriptive, and/or causal phases of the research
Define the information needed
Specify the measurement and scaling procedures
Construct and pretest a questionnaire (interviewing form) or an appropriate form
for data collection
Specify the sampling process and sample size
Develop a plan of data analysis
Classification of Research Design
Exploratory Research Design
Conclusive Research Design Descriptive Research

Causal research
 Exploratory & Conclusive Research Differences

Exploratory Conclusive

Objective: To provide insights and To test specific hypotheses and

understanding. examine relationships.

Character- Information needed is defined Information needed is clearly

istics: only loosely. Research process is
flexible and unstructured.
Sample is small and non-
representative. Analysis of
primary data is qualitative.
defined. Research process is formal
and structured. Sample is large and
representative. Data analysis is
quantitative.

Findings Tentative. Conclusive.

/Results:

Outcome: Generally followed by further Findings used as input into decision

exploratory or conclusive making.
research.
 A Comparison of Basic Research Designs

Exploratory Descriptive Causal

Discovery of ideas Describe test unit Determine cause
Objective:
and insights characteristics or and effect
functions relationships

Flexible, versatile Marked by the prior Manipulation of one

Characteristics: or more independent
formulation of specific
hypotheses variables

Often the front end Preplanned and Control of other

of total research structured design mediating variables
design
Experiments
Expert surveys Secondary data
Methods: Pilot surveys Surveys
Secondary data Panels
Qualitative research Observation and other
data
 Uses of Exploratory Research
Formulate a problem or define a problem more precisely
Identify alternative courses of action
Develop hypotheses
Isolate key variables and relationships for further examination
Gain insights for developing an approach to the problem
Establish priorities for further research
Methods of Exploratory Research
Survey of experts
Pilot surveys
Secondary data analyzed in a qualitative way
Qualitative research
Uses of Descriptive Research
To describe the characteristics of relevant groups, such as consumers, salespeople,
organizations, or market areas.
To estimate the percentage of units in a specified population exhibiting a certain
behavior.
To determine the perceptions of product characteristics.
To determine the degree to which marketing variables are associated.
To make specific predictions
 Methods of Descriptive Research
Secondary data analyzed in a quantitative as opposed to a qualitative manner
Surveys
Panels
Observational and other data
Uses of Casual Research
To understand which variables are the cause (independent variables) and which
variables are the effect (dependent variables) of a phenomenon
To determine the nature of the relationship between the causal variables and
the effect to be predicted
METHOD: Experiments
 Cross-sectional Designs
Involve the collection of information from any given sample of
population elements only once.
In single cross-sectional designs, there is only one sample of
respondents and information is obtained from this sample
only once.
In multiple cross-sectional designs, there are two or more
samples of respondents, and information from each sample is
obtained only once. Often, information from different
samples is obtained at different times.
Cohort analysis consists of a series of surveys conducted at
appropriate time intervals, where the cohort serves as the
basic unit of analysis. A cohort is a group of respondents who
experience the same event within the same time interval.
 Consumption of Various Soft Drinks
by Various Age Cohorts
Percentage consuming on a typical day
Age 1950 1960 1969 1979

8-19 52.9 62.6 73.2 81.0

20-29 45.2 60.7 76.0 75.8 C8
30-39 33.9 46.6 67.7 71.4 C7
40-49 23.2 40.8 58.6 67.8 C6
50+ 18.1 28.8 50.0 51.9 C5
C1 C2 C3 C4

C1: cohort born prior to 1900 C5: cohort born 1931-40

C2: cohort born 1901-10 C6: cohort born 1940-49
C3: cohort born 1911-20 C7: cohort born 1950-59
C4: cohort born 1921-30 C8: cohort born 1960-69
 Longitudinal Designs
A fixed sample (or samples) of population elements
is measured repeatedly on the same variables
A longitudinal design differs from a cross-sectional
design in that the sample or samples remain the
same over time
 Relative Advantages and Disadvantages of
Longitudinal
Table 3.4 and Cross-Sectional Designs

Evaluation Cross-Sectional Longitudinal

Criteria Design Design

Detecting Change - +
Large amount of data collection - +
Accuracy - +
Representative Sampling + -
Response bias + -

Note: A + indicates a relative advantage over the other

design, whereas a - indicates a relative disadvantage.
 Cross-Sectional Data May Not Show Change

Brand Purchased Time Period

Period 1 Period 2
Survey Survey
Brand A 200 200
Brand B 300 300
Brand C 500 500
Total 1000 1000
 Longitudinal Data May Show
Table 3.6 Substantial Change

Brand Brand Purchased in Period 2

Purchased
in Period 1 Brand A Brand B Brand C Total
Brand A 100 50 50 200
Brand B 25 100 175 300
Brand C 75 150 275 500
Total 200 300 500 1000
 Exploratory Research Design:
Secondary Data

A Classification of Secondary Data

Secondary Data

Internal External

Ready to Use Requires Further Published Computerized Syndicated

Processing Materials Databases Services
 Exploratory Research Design: Qualitative Research

A Classification of Qualitative Research Procedures

Qualitative Research Procedures

Direct (Non disguised) Indirect

(Disguised)

Projective
Techniques
Focus Groups Depth Interviews

Association Completion Construction Expressive

Techniques Techniques Techniques Techniques
 Characteristics of Focus Groups

Group Size 8-12

Group Composition Homogeneous, respondents,

prescreened

Physical Setting Relaxed, informal atmosphere

Time Duration 1-3 hours

Recording Use of audiocassettes and videotapes

Moderator Observational, interpersonal, and

communication skills of the moderator
 Depth Interview Techniques:
Laddering technique, allows the researcher to tap into
respondents deep underlying psychological and emotional
reasons that affect a phenomenon.

hidden issue questioning, the focus is not on socially shared

values but rather on personal sore spots; not on general
lifestyles but on deeply felt personal concerns.
 Depth Interview Techniques:
Symbolic Analysis
Symbolic analysis attempts to analyze the symbolic meaning of
objects by comparing them with their opposites.
The logical opposites of a product that are investigated are:
non-usage of the product, attributes of an imaginary non-
product, and opposite types of products.

What would it be like if you could no longer use airplanes?

Without planes, I would have to rely on letters and long

distance calls.

Airlines sell to the managers face-to-face communication.

Advertising theme: The airline will do the same thing for a

manager as Federal Express does for a package.
 Definition of Projective Techniques
An unstructured, indirect form of questioning that
encourages respondents to project their underlying
motivations, beliefs, attitudes or feelings regarding
the issues of concern.
In projective techniques, respondents are asked to
interpret the behavior of others.
In interpreting the behavior of others, respondents
indirectly project their own motivations, beliefs,
attitudes, or feelings into the situation.
 Word Association
In word association, respondents are presented with a list of
words, one at a time and asked to respond to each with the
first word that comes to mind. The words of interest, called
test words, are interspersed throughout the list which also
contains some neutral, or filler words to disguise the purpose
of the study. Responses are analyzed by calculating:

(1) the frequency with which any word is given as a

response;
(2) the amount of time that elapses before a response is
given; and
(3) the number of respondents who do not respond at all to a
test word within a reasonable period of time.
 Word Association
EXAMPLE
STIMULUS MRS. M MRS. C
washday everyday ironing
fresh and sweet clean
pure air soiled
scrub don't; husband does clean
filth this neighborhood dirt
bubbles bath soap and water
family squabbles children
towels dirty wash
 Completion Techniques
In Sentence completion, respondents are given incomplete
sentences and asked to complete them. Generally, they are
asked to use the first word or phrase that comes to mind.

A person who shops at Big Bazaar is ______________________

Dr. Manmohan Singh is most liked by ____________________

When I think of shopping in a department store, I ________

A variation of sentence completion is paragraph completion, in

which the respondent completes a paragraph beginning with
the stimulus phrase.
 Construction Techniques
With a picture response, the respondents are asked to
describe a series of pictures of ordinary as well as unusual
events. The respondent's interpretation of the pictures gives
indications of that individual's personality.

In cartoon tests, cartoon characters are shown in a specific

situation related to the problem. The respondents are asked
to indicate what one cartoon character might say in response
to the comments of another character. Cartoon tests are
simpler to administer and analyze than picture response
techniques.
 Expressive Techniques
In expressive techniques, respondents are presented with a
verbal or visual situation and asked to relate the feelings and
attitudes of other people to the situation.

Role playing Respondents are asked to play the role or

assume the behavior of someone else.

Third-person technique The respondent is presented with a

verbal or visual situation and the respondent is asked to relate
the beliefs and attitudes of a third person rather than directly
expressing personal beliefs and attitudes. This third person may
be a friend, neighbor, colleague, or a typical person.
 A Classification of Research Data

Research Data

Secondary Data Primary Data

Qualitative Data Quantitative Data

Descriptive Causal

Survey Observational Experimental

Data and Other Data Data
 Descriptive Research Design: Survey and Observation
A Classification of Survey Methods
Survey
Methods

Telephone Personal Mail Electronic

In-Home Mall Intercept Computer-Assisted Internet

E-mail
Personal Interviewing

Traditional Computer-Assisted
Mail Interview Mail
Telephone Telephone
Interviewing Panel
 Criteria for Evaluating Survey Methods
Flexibility of Data Collection
The flexibility of data collection is determined primarily by the extent to
which the respondent can interact with the interviewer and the survey
questionnaire.

Diversity of Questions
The diversity of questions that can be asked in a survey depends upon the
degree of interaction the respondent has with the interviewer and the
questionnaire, as well as the ability to actually see the questions.

Use of Physical Stimuli

The ability to use physical stimuli such as the product, a product
prototype, commercials, or promotional displays during the interview.
Response Rate
Survey response rate is broadly defined as the percentage of
the total attempted interviews that are completed.

Perceived Anonymity
Perceived anonymity refers to the respondents' perceptions
that their identities will not be discerned by the interviewer or
the researcher.

Social Desirability/Sensitive Information

Social desirability is the tendency of the respondents to give
answers that are socially acceptable, whether or not they are
true.
Sample Control
Sample control is the ability of the survey mode to reach the units
specified in the sample effectively and efficiently.

Control of the Data Collection Environment

The degree of control a researcher has over the environment in which the
respondent answers the questionnaire.

Control of Field Force

The ability to control the interviewers and supervisors involved in data
collection.

Quantity of Data
The ability to collect large amounts of data.
Potential for Interviewer Bias
The extent of the interviewer's role determines the potential
for bias.

Speed
The total time taken for administering the survey to the entire
sample.

Cost
The total cost of administering the survey and collecting the
data.
 A Comparative Evaluation of Survey Methods

Criteria Mall-
Phone/ In-Home Intercept Mail Mail
CATI Interviews Interviews CAPI Surveys Panels E-Mail Internet

Flexibility of data Moderate High High Moderate Low Low Low Moderate
collection to high to high to high
Diversity of questions Low High High High Moderate Moderate Moderate Moderate
to high
Use of physical stimuli Low Moderate High High Moderate Moderate Low Moderate
to high
Sample control Moderate Potentially Moderate Moderate Low Moderate Low Low to
to high high to high moderate
Control of data collection Moderate Moderate High High Low Low Low Low
environment to high
Control of field force Moderate Low Moderate Moderate High High High High
Quantity of data Low High Moderate Moderate Moderate High Moderate Moderate
Response rate Moderate High High High Low Moderate Low Very
Low
Perceived anonymity of Moderate Low Low Low High High Moderate High
the respondent
Social desirability Moderate High High Moderate Low Low Moderate Low
to High
Obtaining sensitive High Low Low Low to High Moderate Moderate High
information moderate to High
Potential for interviewer Moderate High High Low None None None None
bias
Speed High Moderate Moderate Moderate Low Low to High Very
to high to high moderate high
Cost Moderate High Moderate Moderate Low Low to Low Low
to high to high moderate
 Observation Methods (Nature)

Structured versus Unstructured Observation

For structured observation, the researcher specifies
in detail what is to be observed and how the
measurements are to be recorded, e.g., an auditor
performing inventory analysis in a store.

In unstructured observation, the observer monitors

all aspects of the phenomenon that seem relevant to
the problem at hand, e.g., observing children playing
with new toys.
 Observation Methods (Nature)

Disguised versus Undisguised Observation

In disguised observation, the respondents are

unaware that they are being observed. Disguise may
be accomplished by using one-way mirrors, hidden
cameras, or inconspicuous mechanical devices.
Observers may be disguised as shoppers or sales
clerks.

In undisguised observation, the respondents are

aware that they are under observation.
 Observation Methods (Nature)

Natural versus Contrived Observation

Natural observation involves observing behavior as it

takes places in the environment. For example, one
could observe the behavior of respondents eating
fast food in a restaurant.

In contrived observation, respondents' behavior is

observed in an artificial environment, such as a test
kitchen.
 A Classification of Observation Methods

Observation Methods

Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis
 Observation Methods
Personal Observation

A researcher observes actual behavior as it

occurs.
The observer does not attempt to manipulate
the phenomenon being observed but merely
records what takes place.
For example, a researcher might record traffic
counts and observe traffic flows in a
department store.
 Observation Methods
Mechanical Observation
Do not require respondents' direct participation.
the AC Nielsen audimeter
turnstiles that record the number of people entering or leaving
a building.
On-site cameras (still, motion picture, or video)
Optical scanners in supermarkets

Do require respondent involvement.

eye-tracking monitors
pupilometers
psychogalvanometers
voice pitch analyzers
devices measuring response latency
 Observation Methods
Audit

The researcher collects data by examining physical

records or performing inventory analysis.
Data are collected personally by the researcher.
The data are based upon counts, usually of physical
objects.
Retail and wholesale audits conducted by marketing
research suppliers.
 Observation Methods
Content Analysis

The objective, systematic, and quantitative description

of the manifest content of a communication.
The unit of analysis may be words, characters
(individuals or objects), themes (propositions), space
and time measures (length or duration of the
message), or topics (subject of the message).
Analytical categories for classifying the units are
developed and the communication is broken down
according to prescribed rules.
 Observation Methods
Trace Analysis
Data collection is based on physical traces, or evidence, of past behavior.

The selective erosion of tiles in a museum indexed by the replacement

rate was used to determine the relative popularity of exhibits.
The number of different fingerprints on a page was used to gauge the
readership of various advertisements in a magazine.
The position of the radio dials in cars brought in for service was used to
estimate share of listening audience of various radio stations.
The age and condition of cars in a parking lot were used to assess the
affluence of customers.
The magazines people donated to charity were used to determine
people's favorite magazines.
Internet visitors leave traces which can be analyzed to examine browsing
and usage behavior by using cookies.
 A Comparative Evaluation of Observation Methods

Criteria Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis Analysis

Degree of structure Low Low to high High High Medium

Degree of disguise Medium Low to high Low High High
Ability to observe High Low to high High Medium Low
in natural setting
Observation bias High Low Low Medium Medium
Analysis Bias High Low to Low Low Medium
Medium
General remarks Most Can be Expensive Limited to Method of
flexible intrusive commu- last resort
nications
 Concept of Causality
A statement such as "X causes Y " will have the following meaning to an
ordinary person and to a scientist.

____________________________________________________
Ordinary Meaning Scientific Meaning
____________________________________________________
X is the only cause of Y. X is only one of a number of
possible causes of Y.

X must always lead to Y The occurrence of X makes the

(X is a deterministic occurrence of Y more probable
cause of Y). (X is a probabilistic cause of Y).

It is possible to prove We can never prove that X is a

that X is a cause of Y. cause of Y. At best, we can
infer that X is a cause of Y.
____________________________________________________
 Conditions for Causality

Concomitant variation is the extent to which a

cause, X, and an effect, Y, occur together or vary
together in the way predicted by the hypothesis
under consideration.
The time order of occurrence condition states that
the causing event must occur either before or
simultaneously with the effect; it cannot occur
afterwards.
The absence of other possible causal factors means
that the factor or variable being investigated should
be the only possible causal explanation.
 Definitions and Concepts

Independent variables are variables or alternatives that are

manipulated and whose effects are measured and compared,
e.g., price levels.
Test units are individuals, organizations, or other entities
whose response to the independent variables or treatments is
being examined, e.g., consumers or stores.
Dependent variables are the variables which measure the
effect of the independent variables on the test units, e.g.,
sales, profits, and market shares.
Extraneous variables are all variables other than the
independent variables that affect the response of the test
units, e.g., store size, store location, and competitive effort.
 Experimental Design

An experimental design is a set of procedures

specifying

the test units and how these units are to be

divided into homogeneous subsamples,
what independent variables or treatments are to
be manipulated,
what dependent variables are to be measured,
and
how the extraneous variables are to be controlled.
 Validity in Experimentation
Internal validity refers to whether the manipulation
of the independent variables or treatments actually
caused the observed effects on the dependent
variables. Control of extraneous variables is a
necessary condition for establishing internal validity.
External validity refers to whether the cause-and-
effect relationships found in the experiment can be
generalized. To what populations, settings, times,
independent variables and dependent variables can
the results be projected?
 Extraneous Variables

History refers to specific events that are external to the

experiment but occur at the same time as the experiment.
Maturation (MA) refers to changes in the test units
themselves that occur with the passage of time.
Testing effects are caused by the process of experimentation.
Typically, these are the effects on the experiment of taking a
measure on the dependent variable before and after the
presentation of the treatment.
The main testing effect (MT) occurs when a prior observation
affects a latter observation.
 Extraneous Variables

In the interactive testing effect (IT), a prior measurement

affects the test unit's response to the independent variable.
Instrumentation (I) refers to changes in the measuring
instrument, in the observers or in the scores themselves.
Statistical regression effects (SR) occur when test units with
extreme scores move closer to the average score during the
course of the experiment.
Selection bias (SB) refers to the improper assignment of test
units to treatment conditions.
Mortality (MO) refers to the loss of test units while the
experiment is in progress.
 Controlling Extraneous Variables
Randomization refers to the random assignment of test units
to experimental groups by using random numbers. Treatment
conditions are also randomly assigned to experimental
groups.
Matching involves comparing test units on a set of key
background variables before assigning them to the treatment
conditions.
Statistical control involves measuring the extraneous
variables and adjusting for their effects through statistical
analysis.
Design control involves the use of experiments designed to
control specific extraneous variables.
 A Classification of Experimental Designs

Experimental Designs

Pre-experimental True Quasi Statistical

Experimental Experimental

One-Shot Case Pretest-Posttest Time Series Randomized

Study Control Group Blocks

One Group Posttest: Only Multiple Time Latin Square

Pretest-Posttest Control Group Series

Static Group Solomon Four- Factorial

Group Design
 Statistical Designs

Statistical designs consist of a series of basic experiments that

allow for statistical control and analysis of external variables and
offer the following advantages:

The effects of more than one independent variable can be

measured.
Specific extraneous variables can be statistically controlled.
Economical designs can be formulated when each test unit is
measured more than once.

The most common statistical designs are the randomized block

design, the Latin square design, and the factorial design.
 Randomized Block Design

Is useful when there is only one major external

variable, such as store size, that might influence the
dependent variable.
The test units are blocked, or grouped, on the basis
of the external variable.
By blocking, the researcher ensures that the various
experimental and control groups are matched closely
on the external variable.
 Randomized Block Design

Treatment Groups
Block Store Commercial Commercial Commercial
Number Patronage A B C

1 Heavy A B C
2 Medium A B C
3 Low A B C
4 None A B C
 Latin Square Design

Allows the researcher to statistically control two non interacting external

variables as well as to manipulate the independent variable.
Each external or blocking variable is divided into an equal number of
blocks, or levels.
The independent variable is also divided into the same number of levels.
A Latin square is conceptualized with the rows and columns representing
the blocks in the two external variables.
The levels of the independent variable are assigned to the cells in the
table.
The assignment rule is that each level of the independent variable should
appear only once in each row and each column.
 Latin Square Design

Interest in the Store

Store Patronage High Medium Low

Heavy B A C
Medium C B A
Low and none A C B
 Factorial Design
Is used to measure the effects of two or more
independent variables at various levels.
A factorial design may also be conceptualized as a
table.
In a two-factor design, each level of one variable
represents a row and each level of another variable
represents a column.
 Factorial Design

Amount of Humor
Amount of Store No Medium High
Information Humor Humor Humor

Low A B C
Medium D E F
High G H I
 SAMPLING DESIGN AND PROCEDURE
The basic idea of sampling is that by selecting some of the elements in a population,
we may draw conclusions about the entire population.
Population : The aggregate of all the elements, sharing some common set of
characteristics, that comprises the universe for the purpose of the research problem.
Census : A complete enumeration of the elements of a population or study objects.
Sample : A subgroup of the elements of a population or study objects.
Sampling Frame : A representation of the elements of the target population. It consists
of a list or set of directions for identifying the target population.
Target population : The collection of elements or objects that possess the information
sought by the researcher and about which inferences are to be made. The target
population should be defined in terms of elements, sampling units, extent, and time.
An element is the object about which or from which the information is desired, e.g.,
the respondent.
A sampling unit is an element, or a unit containing the element, that is available for
selection at some stage of the sampling process.
Extent refers to the geographical boundaries.
Time is the time period under consideration.
 Sample vs. Census
Conditions Favoring the Use of
Type of Study Sample Census

1. Budget Small Large

2. Time available Short Long

3. Population size Large Small

4. Variance in the characteristic Small Large

5. Cost of sampling errors Low High

6. Cost of nonsampling errors High Low

7. Nature of measurement Destructive Nondestructive

8. Attention to individual cases Yes No

The Sampling Design Process

Define the Population

Determine the Sampling Frame

Select Sampling Technique(s)

Determine the Sample Size

Execute the Sampling Process

Qualitative factors in determining the sample size

the importance of the decision

the nature of the research
the number of variables
the nature of the analysis
sample sizes used in similar studies
completion rates
resource constraints
 Classification of Sampling Techniques

Sampling Techniques

Non probability Probability

Sampling Techniques Sampling Techniques

Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling

Simple Random Systematic Stratified Cluster Other Sampling

Sampling Sampling Sampling Sampling Techniques
 Convenience Sampling
Convenience sampling attempts to obtain a sample of
convenient elements. Often, respondents are selected
because they happen to be in the right place at the right time.

use of students, and members of social organizations

mall intercept interviews without qualifying the
respondents
department stores using charge account lists
people on the street interviews
 Judgmental Sampling

Judgmental sampling is a form of convenience sampling in

which the population elements are selected based on the
judgment of the researcher.

test markets
purchase engineers selected in industrial marketing
research
expert witnesses used in court
 Quota Sampling
Quota sampling may be viewed as two-stage restricted judgmental sampling.
The first stage consists of developing control categories, or quotas, of
population elements. List control characteristics and determine the
distribution of control characteristics in the target population.
In the second stage, sample elements are selected based on convenience
or judgment.

Population Sample
composition composition
Control
Characteristic Percentage Percentage Number
Sex
Male 48 48 480
Female 52 52 520
____ ____ ____
100 100 1000
 Snowball Sampling

In snowball sampling, an initial group of respondents is

selected, usually at random.

After being interviewed, these respondents are asked to

identify others who belong to the target population of
interest.
Subsequent respondents are selected based on the
referrals.
 Simple Random Sampling
Each element in the population has a known and equal probability
of selection.
Each possible sample of a given size (n) has a known and equal
probability of being the sample actually selected.
This implies that every element is selected independently of every
other element.
Limitations:
Difficult to construct a sampling frame permitting simple random
sample to draw.
SRS results in samples that are spread over large geographical
areas; increasing time and cost of data collection.
Low precision and large standard errors
May or may not result in a representative sample.
 Systematic Sampling

The sample is chosen by selecting a random starting point and then

picking every ith element in succession from the sampling frame.
The sampling interval, i, is determined by dividing the population size N by
the sample size n and rounding to the nearest integer.
When the ordering of the elements is related to the characteristic of
interest, systematic sampling increases the representativeness of the
sample.
If the ordering of the elements produces a cyclical pattern, systematic
sampling may decrease the representativeness of the sample.
For example, there are 100,000 elements in the population and a sample
of 1,000 is desired. In this case the sampling interval, i, is 100. A random
number between 1 and 100 is selected. If, for example, this number is 23,
the sample consists of elements 23, 123, 223, 323, 423, 523, and so on.
 Stratified Sampling
A two-step process in which the population is partitioned into subpopulations, or
strata.
The strata should be mutually exclusive and collectively exhaustive in that every
population element should be assigned to one and only one stratum and no
population elements should be omitted.
Next, elements are selected from each stratum by a random procedure, usually
SRS.
A major objective of stratified sampling is to increase precision without
increasing cost.
The elements within a stratum should be as homogeneous as possible, but the
elements in different strata should be as heterogeneous as possible.
The stratification variables should also be closely related to the characteristic of
interest.
Finally, the variables should decrease the cost of the stratification process by
being easy to measure and apply.
In proportionate stratified sampling, the size of the sample drawn from each
stratum is proportionate to the relative size of that stratum in the total
population.
In disproportionate stratified sampling, the size of the sample from each stratum
is proportionate to the relative size of that stratum and to the standard deviation
of the distribution of the characteristic of interest
 Cluster Sampling
The target population is first divided into mutually exclusive and
collectively exhaustive subpopulations, or clusters.
Then a random sample of clusters is selected, based on a probability
sampling technique such as SRS.
For each selected cluster, either all the elements are included in the
sample (one-stage) or a sample of elements is drawn probabilistically
(two-stage).
Elements within a cluster should be as heterogeneous as possible, but
clusters themselves should be as homogeneous as possible. Ideally, each
cluster should be a small-scale representation of the population.
In probability proportionate to size sampling, the clusters are sampled
with probability proportional to size. In the second stage, the probability
of selecting a sampling unit in a selected cluster varies inversely with the
size of the cluster.
 Strengths and Weaknesses of
Basic Sampling Techniques
Technique Strengths
Nonprobability Sampling Least expensive, least
Convenience sampling time-consuming, most
convenient
Judgmental sampling Low cost, convenient,
not time-consuming
Quota sampling Sample can be controlled
for certain characteristics
Snowball sampling Can estimate rare
characteristics
Probability sampling Easily understood,
Simple random sampling results projectable
(SRS)
Systematic sampling Can increase
representativeness,
easier to implement than
SRS, sampling frame not
necessary
Stratified sampling Include all important
subpopulations,
precision
Cluster sampling Easy to implement, cost
effective
Weaknesses
Selection bias, sample not
representative, not recommended for
descriptive or causal research
Does not allow generalization,
subjective
S election bias, no assurance of
R epresentativeness
Time-consuming
Difficult to construct sampling
frame, expensive, lower precision,
no assurance of representativeness.
Can decrease representativeness
Difficult to select relevant
stratification variables, not feasible to
stratify on many variables, expensive
Imprecise, difficult to compute and
interpret results
 Choosing Nonprobability vs.
Probability Sampling
Conditions Favoring the Use of
Factors Nonprobability Probability
sampling sampling

Nature of research Exploratory Conclusive

Relative magnitude of sampling Nonsampling Sampling

and nonsampling errors errors are errors are
larger larger

Variability in the population Homogeneous Heterogeneous

(low) (high)

Statistical considerations Unfavorable Favorable

Operational considerations Favorable Unfavorable