MARKETING RESEARCH

UNIT3 & 4

INTRODUCTION

Basically, the data collection methods have been categorized into primary and secondary data collection
methods. Primary data can be obtained through observations or through direct communication with persons
associated with the selected subject by performing surveys or descriptive research. This type of data is the
data specially collected in a research by a researcher. These are products of experiments, surveys, interviews,
or observations conducted in the research. Primary data is generated and collected through specific tools of
data collection, like questionnaires, by the researcher.

Secondary data is the type of data which has already been collected and tested by other investigators or
researchers. While making use of secondary data, researchers must carefully examine the available data to
decide whether the data is suitable for the subject under study or not.

PRIMARY DATA: COLLECTION METHODS AND INSTRUMENTS

Primary data is the information collected during the course of an experiment in experimental research. Primary
data can be obtained through observations or through direct communication with persons associated with the
selected subject by performing surveys or interviews. There are several methods of collecting primary data.
Some of these are:

 Observation
 Interviews
 Questionnaires
 Schedules
 Surveys

Observation method: Observation is the most common method of studying behavioural sciences. It is not a
specific method, but it becomes a specific tool when used for formulating the purpose of a research. In this
method, the information collected by the researcher is totally based on his observation. The main advantage
of this method is that there are no chances of partiality if the observation is done accurately. Second, the
information or the data collected through observation is related to what is currently happening and is not
affected by past behaviour or future intentions. Third, this method is independent of a person’s willingness to
respond and does not require much cooperation from the part of the person, as it happens to be the case in the
interview or questionnaire methods. The observation method is suitable in those situations where the
respondent is not capable, for some reason, or expressing the feelings verbally.

In the observation method, researchers must keep in mind the following points:

 What should be observed?

 How should the observation be recorded?
 How can the accuracy of the observation be ensured?
 TYPES OF OBSERVATION METHODS

Observation methods can be categorized into different types depending on various factors such as style for
recording observed information, data needed for observation and activity of the observer. The different types
of observation methods are as follows:

 Structured observation: It is an observation method in which the following points to be considered:

1. Careful definition of the matter that needs to be observed.
2. Identification of the style that must be used to record the observed information.
3. Standardization of the condition of observation.
4. Selection of data required for observation.
 Unstructured observation: It is an observation method in which a definition of the matter to be observed,
the style to be recorded, standardized conditions of observation and selection of the required data of
observation are not known to the researcher. This method is most appropriate where an explored study of the
matter under observation is required.
 Participant observation: It is an observation method in which the observer is a member of the group he is
observing, in order to understand the needs and the problems faced by the group better.
 Non-participant observation: In this method the observer is not a member of the group under observation.
This method has a disadvantage – the observer is unable to understand what the team members are feeling.
 Disguised observation: Under this method the members of the group are unaware of the fact that they are
being observed.
 Controlled observation: Observation that takes place according to definite pre arranged plans, involving
experimental procedures is called controlled observation.
 Uncontrolled observation: Observation takes place in a natural setting is called uncontrolled observation.
The main aim of this method is to have spontaneous picture of the situation and for this the prime requirement
is sufficient time.

LIMITATIONS OF OBSERVATION METHOD

Though the observation method provides different ways of studying behavioural science, there are some
limitations in using these methods. These are as follows:

 An observation method is generally expensive.

 It provides very limited information on the observed matter.
 It may be affected by some unwanted factors: for example, people who are not involved in direct observation
might create problems while collecting data through the observation method.

INTERVIEW METHOD

An interview is a method of collecting data that involves presentation of oral and verbal stimuli and the reply
is in oral and verbal responses. The most common method of interview is personal interview.

Personal interview: A personal interview involves two persons, i.e., the interviewer and the interviewee.
The interviewer is the person who questions the interviewee. There is a face-to-face discussion between them.
 There can be more than one interviewer while taking a personal interview. There are two types of interviews:
direct personal interview and indirect oral interview.

In a direct personal interview, the interviewer collects information from the concerned sources. He should be
present at the site from where the data has to be collected. This method is most appropriate for intensive
investigations, but this method may not be suitable in situations where a direct contact with the concerned
person is not possible. In such cases, an indirect oral examination or investigation takes place where the
interviewer cross-examines the interviewee to check his knowledge about the problem under investigation.
The information exchanged between the interviewee and the interviewer is recorded for future reference.

A personal interview can be of the following types:

 Structured interview: If the personal interview takes place in a structured way, it is called a structured
interview. In this type of personal interview, the set of questions to be asked is predefined and the techniques
used to record the information are highly standardized. Structured interviews are economical, as they do not
require much information from the interviewer and are used as the main technique to collect information for
descriptive research studies.
 Unstructured interview: If the personal interview takes place in an unstructured way, it means that the
questions to be asked to the interviewee are decided at the time of the interview. In this type of personal
interview, the set of questions to be asked is not predetermined and there no standardized techniques are used.
A list of additional questions is provided to the interviewer and it depends on him to ask them or not. This
method demands deep knowledge and greater skills of the interviewer.

SURVEYS

A survey is a scientific process of acquiring data and opinion from the public. Researchers undertake surveys
in order to determine the opinion of the public regarding products, candidates and other topics. A manufacturer
makes a survey of the potential market before introducing a new product. The information acquired from the
public is used to develop new products, improve services and for various other purposes. Thus, a survey is an
important key to improve or maintain the quality of life.

The process of conducting a survey is a complex task. In order to conduct a survey, a large number of skilled
and trained persons is required. There are many ways in which data for a survey can be collected, such as by
phone, mail and the internet.

The principle focus of a survey is on the design and collection of data. A researcher collects the information
or data by means of standardized questions so that every individual surveyed responds to exactly the same
questions. The results of the surveys are presented in the form of summaries such as statistical tables and
charts.

OTHER METHODS

There are some other methods that are also used for data collection. These are as follows:
 Warranty cards: These are cards that dealers use for collecting information regarding their products. The
information required is printed in the form of questions on the warranty cards, which are placed inside the
package along with the product. The consumer is requested to fill the card and post it back to the dealer.
 Distributor or store audits: Distributors and manufacturers, through their salesmen, conduct distributor or
store audits at regular intervals. Retailers also get their stores audited by salesmen and use the information to
estimate the market size, market share, seasonal purchasing pattern, and so on.
 Pantry audits: It is used to estimate the consumption of goods at the consumer level. In this type of audit,
the researcher collects information such as list of different products, quantities of each product and the prices
of each product consumed. All data is recorded by observing the consumer’s pantry. The main objective of a
pantry audit is to determine which brand and type of product is being used by which category of consumer,
assuming that the contents of the pantry accurately signify their favorites.
 Consumer panels: A consumer panel is an extension of the pantry unit. In this technique, the daily record of
a set of consumers is maintained to obtain information about consumer preferences. Later, these records are
provided to the officers investigating the consumer preferences. Consumer panel includes a sample of
consumers who are interviewed over a fixed interval of time.
 Use of mechanical devices: Mechanical devices are extensively used to obtain information related to
consumers. The devices used for collecting information are as follows:
1. Eye camera: These are used to collect information about the focus of the respondents on a specific portion
of a sketch or diagram or written material. The information collected with the help of eye cameras is used to
design advertising material.
2. Psychogalavanometre: It is used to measure the degree of body excitement aroused by a visual stimulus.
3. Motion picture camera: It is used to record the body movements language of a buyer when he/ she decides
whether to buy a particular product from a shop or a big store.
 Projective techniques: These are also known as direct interviewing techniques. These techniques were
developed by psychologists to collect data about the primary reason, desire or intention of respondents by
using projections. In a projective technique, while providing information about a particular topic, the
respondent automatically projects his/her own attitude or feelings on that subject. Some of the projective
techniques are word association test, sentence completion test, story completion test, quizzes, tests and
examinations etc.
 Depth interview: These interviews are designed to determine the underlying reason and desire of the
consumer. This technique is most commonly used in inspirational research. In a depth interview, the
interviewer needs to explore the hidden needs, desires and feelings of the respondents, so it is necessary for
the interviewer to be a skilled one. Therefore the researchers and interviewers must be given proper training
before they start the work.
 Content analysis: This is a data collection technique that involves analysis of documentary materials such as
books, magazines, newspapers and the contents of all the verbal materials.

SECONDARY DATA: COLLECTION METHODS AND INSTRUMENTS

Secondary data is the data which has already been collected and examined earlier by other investigators. While
making use of secondary data, the investigator has to first determine the sources from where the secondary
data can be obtained. In this method the researcher is not at all aware of the problems related to how the data
 was originally collected. The secondary data can either be published data or unpublished data. Published data
is available mostly from the following sources:

 Publications of the central, state or local governments.

 Publications of foreign governments
 Technical and trade journals
 Books, magazines and newspapers
 Reports prepared by research scholars, universities and economists.
 Public records, statistics and historical documents

The sources of unpublished data include diaries, letters, unpublished biographies and auto biographies. While
making use of secondary data, researchers must carefully examine the available data to decide whether the
data is suitable for the subject under study or not.

CASE STUDY METHOD

The case study method is the most common method of collecting secondary data. It is mainly used for the
purpose of qualitative analysis. It involves a thorough and complete examination of a social unit. A social unit
can either be a person, a family, an institution, a cultural group or even the entire community. A case- study
involves in-depth study of a particular subject. The case study method emphasizes on the complete
investigation of only restricted number of events related to a subject and the relationship between the different
events. The main objective of a case study is to determine the factors that are responsible for the behaviour
patterns of the given unit in totality.

CHARACTERISTICS OF THE CASE STUDY METHOD

The following are certain characteristics of the case study method:

 In this method, the researcher is allowed to take one or more than one social unit for study. Instead of a social
unit, the researcher can also select a situation for study.
 This method involves intensive study of the selected unit. As each unit is studied for its minute details, the
study takes a long period of time. This helps ensure the correctness of the information collected about a
particular unit.
 This method helps to determine the complex factors of a particular unit.
 It also helps to determine the integrity of the selected unit with the other units.
 This method follows the qualitative approach rather than the quantitative approach.
 In the case study method, efforts are made to determine the mutual inter relationship of the casual factors.

Major phases of the case study method

 Identification and resolution of the status of the phenomenon or the units to be examined.
 Accumulation of data and selection of the phenomenon.
 Investigation of the history of the selected phenomenon.
 Analysis and recognition of informal factors related to the selected phenomenon.
 Application of corrective measures.
 Review of programme to identify the effectiveness of the treatment applied.

The characteristics that a researcher must ensure in the secondary data before using it as stated as follows:

Reliability of data

The secondary data available on a particular subject must be reliable. The reliability of secondary data can be
determined by obtaining answers to the following questions.

 Who collected the data?

 What were the data sources?
 Was the data collected using proper methods?
 At what time was it collected?
 Was there any bias on the part of the compiler?

Suitability of data

The secondary data available on a particular subject must be suitable for that subject. The data suitable for
one subject may not be suitable for another. Therefore, the researcher should properly examine the available
data and verify the definitions of different terms and the units of data collection before using that data.

Adequacy of data

The secondary data available should be adequate in terms of accuracy. If the accuracy level of the available
data is lower than what is required, the data is considered inadequate.

SELECTION OF APPROPRIATE METHOD FOR DATA COLLECTION

Various methods are available for a researcher to use in the collection of data on a particular subject. The
factors that a researcher must consider for a selection of the appropriate method for data collection are as
follows:

Nature, scope and object of enquiry: This is an important factor that must be considered while selecting the
data collection method. The selected data collection method should suit the type of enquiry to be performed
by the researcher. This factor helps to determine whether the data available is sufficient or some other
information is required to be collected.

Availability of funds: Availability of funds also determines the data collection method to be used. If the
researcher is provided with only a limited amount of funds, then he will be bound to select a comparatively
cheaper method, which may or may not be as effective and efficient as some expensive methods.

Time factor: The amount of time available for a particular research project should also be considered while
selecting the data collection method. Some methods take relatively greater amount of time as compared to
others. Therefore, the researcher must select the method that suits the time limitations of the project.

Precision required: The precision level required for a particular project determines the method that should
be selected for data collection.
 RELIABILITY AND VALIDITY

As you already know the required data for management research can be classified into two categories, primary
data and secondary data. Secondary data is the data collected by others for their own use and which can be
collected from the original source for another research. It needs to be searched and obtained from many
reliable sources, which is increasingly becoming a specialized and skilled task in the present context of
information explosion and the advent of complex computer search systems. In general, acquiring secondary
data is less expensive and less time consuming than collecting primary data and this is the biggest advantage
with secondary data. But often accuracy, availability, suitability and reliability are some of the concerns for
secondary data.

QUESTIONNAIRE DESIGN

The questionnaire form is important and commonly used method of data collection. It is used mostly in case
of large-scale enquiries. The categories of end users who use this technique include individuals, research
workers, private and public organizations and governments. A questionnaire is a document that contains a set
of questions printed or typed in a proper sequence. The questionnaire is sent to each individual who is
supposed to answer it. This technique of collecting information through questionnaires is extensively used
nowadays.

Following are the advantages of a questionnaire:

 It is cost – effective.
 As the respondents are allowed to answer the questions according to their own views and understanding, this
technique of data collection is non-practical.
 All the respondents of the questionnaire are provided enough time to answer the questions.
 In this technique, a large sample of questions can be used to make the results more reliable.

In addition to the advantages mentioned above, questionnaires also have certain disadvantages. The
disadvantages are as follows:

 This technique has possibilities of no-response. It means that the respondents may or may not provide answers
to all the questions asked.
 This technique can be used only if the respondents are skilled and supportive.
 There are possibilities of vague replies by some respondents.
 It is not possible to determine whether or not a particular candidate is appropriate to give information about a
particular subject.
 It is a time consuming technique.

The following are the situations during which the questionnaires should be used:

 If the people to be questioned belongs to different departments or branches of the same organization.
 If the project involves a large number of people and you want to know what proportion of a given group
approves or disapproves of a particular feature of the proposed system.
 If you want to determine the overall opinion before the systems project is given any consideration for
implementation.

Questions included in a questionnaire can be either open ended and closed ended.

Open ended questions

Open ended questions are questions which do not require specific responses. Examples of this type of
questions are as follows:

 How will you evaluate the benefits of a new installed system?

 What is your opinion about the current income tax policy?

Closed ended questions

Closed ended questions are the questions, which are used when the systems analyst is able to effectively list
all possible responses to the question. All possible responses of the closed questions should be mutually
exclusive. This type of questions are categorized in to the following types:

 Fill in the blanks questions

 Dichotomous questions
 Ranking scale questions
 Multiple choice questions
 Rating scale questions

Fill in the blanks questions

These are questions which require specific responses that are analysed statistically. The examples of this type
of questions are:

 What is the name of your organization?

 How many employees are there in the accounts department of your organization?
 How many automated systems are installed in your organization?

Dichotomous questions

Dichotomous questions are questions which offer two answers, Yes or No. The examples of this type of
questions are:

 Are you working with manual systems?

Yes No
 If yes, do you need to switch over to the automated systems?
Yes No
 If no, are you satisfied with the performance of manual systems?
Yes No

Ranking scale questions

 Ranking scale questions allow the researcher to arrange the list of items in the order of their importance and
preference. Consider the following question:

Please arrange the following in alphabetical order:

 London
 America
 India
 Italy

Multiple choice questions

These types of questions allow you to select an opinion from a list of options. The examples of this type of
questions are:

 What is the number of automated systems used in your organisation?

0-9
10-19
20-29
More than 29
 What is the type of organization are you working with?
Bank
Manufacturing company
Computer / IT sector
Other

Rating scale questions

In this type of questions, a user is required to rate the options according to his opinion. The examples of this
type of question are as follows:

How skilled you are in your work?

 Number of times you got promotion 1 2 3 4

 Number of times you received appreciation 1 2 3 4
 Number of times you are criticized for work 1 2 3 4

1 – Once, 2 –Twice, 3 - Many times, 4 – Never

Designing a questionnaire

Questionnaire provides a data collection technique in which written questions are presented that are to
answered by the people in written form. The points that should be kept in mind while designing a questionnaire
are as follows:
 The goal of the questionnaire must specify the purpose of determining whom you will survey and what will
you ask them.
 The questions in the questionnaire must not be confusing and unfamiliar. It should be easy to understand,
short and simple so that it is easy to complete.
 The questionnaire must be properly stated. It should not contain any private secret questions.
 The questions placed out of order or out of context should be avoided. There should be specific questions,
which can be followed by general easy – to – answer questions.
 The period or time must be stated in which the questionnaire can be completed.
 The performance of the questionnaire should be determined by pretesting it.
 The questionnaire should be finally reviewed and edited to ensure that the questionnaire is ready for
administration.
 The type of questionnaire should be properly defined.

Reliable and valid questionnaires are designed using the scaling construction technique. According to this
technique, the researcher must focus on the question content, question wording and question format.

COLLECTION OF DATA THROUGH SCHEDULES

A schedule is a questionnaire containing a set of questions that are required to be answered to collect the data
about a particular item. A schedule generally takes place in a face – to - face manner.

Objectives of a schedule

The following are the main objectives of a schedule:

 A schedule is created for a definite item of enquiry. The schedule sets the boundaries for the subject under
study.
 A schedule acts as an aid to memorise the information being collected by the interviewer. Since the interviewer
collects the information from various respondents, he might get confused while analyzing and tabulating the
data.
 A schedule helps in tabulating and analyzing the data in a systematic and standardized manner.

Types of schedules

There are five types of schedules, which are as follows:

1. Observation schedule: It is the schedule under which the observer observes all the activities and records all
the responses of the respondents under some predefined conditions. The chief idea behind examining the
activities is to verify the required information.
2. Rating schedule: It is the schedule used to measure and rate the thoughts, preferences, self-consciousness,
perceptions and other similar characteristics of the respondents.
3. Document schedule: It is the schedule used for collecting the important data and preparing a source list. This
schedule is mostly used to attain data from autobiographies, diaries or records of governments regarding
written facts and case histories.
4. Institution survey schedule: It is the schedule used for studying different problems of institutions.
5. Interview schedule: It is the schedule under which an interviewer asks the questions to the interviewee and
records his response in the given space of the questionnaire.

Merits of the schedule method

The following are the merits of the schedule method:

 In this method, the researcher is always there to help the respondents. So the response rate is high as compared
to other methods of data collection.
 The presence of researcher not only removes the doubts present in the minds of the respondents but also avoids
fake replies from the respondents due to the fear of cross checking.
 In this method, there is a personal contact between the researcher and the respondent. Thus, the data can be
collected easily and can be relied upon.
 This method helps to better understand the personality, living conditions and the values of the respondents.
 It is easy for the researcher to detect and rectify the defects in the schedule during sampling.

Limitations of schedule method

The following are the limitations of the schedule method:

 It is a costly and time consuming method.

 This method requires well trained and experienced field workers to take the interview of the respondents.
 Sometimes, the respondents may not be able to tell certain facts due to the personal presence of some
researchers at work.
 If the field of research is dispersed, it becomes difficult to organize the various activities of the research.

Characteristics of a good schedule

The essential characteristics of a good schedule are as follows:

 The information or the questions included in the schedule should be accurate and should enable the respondent
to better understand the context in which the questions are asked.
 The schedule should be pre-arranged and structured in such a manner that the information gathered or
collected is accurate and tenable. For this the following points must be considered:
1. Size of the schedule should be accurate.
2. The questions in the schedule should be understandable and should be definite.
3. The questions should not contain any biased evaluation.
4. All the questions of the schedule should be properly interlinked.
5. Information gathered should be organized in a table so that it can be easily used for statistical analysis.

Organization of schedule

The following is the sequence in which a schedule must be organized:

 Selection of respondents: Usually sampling method is used for the selection of respondents. The sample
should be representative of the respondents and should contain all the relevant information about the
respondents.
 Selection and training of field workers: Since the field workers take the interview of the respondents and
collect the required data, the selection of the field workers should be done carefully and proper training should
be provided to them.
 Conducting interviews: For a successful interview and correct result, the following points must be
considered.
1. Follow correct approach: The field worker should approach the respondents in a correct manner. So that the
respondents can clearly understand the purpose of the interview.
2. Generating accurate responses: For proper and accurate response from the respondents, the respondents
should not be misunderstood in their perspective and context.

Difference between questionnaire and schedule

 A questionnaire is mostly sent by the interviewer to the interviewee by mail and is filled by the interviewee,
where as a schedule is filled by the interviewer at the time of interview.
 Data collection through a questionnaire is cheaper as compared to schedules, as money is spent only in
preparing the questionnaire and mailing them. In the schedule method, extra money is spent on appointing
interviewers and imparting training to them.
 In case of a questionnaire, response is generally low because many people do not respond. On the other hand,
response is high in the case of schedules since the interviewer fills them at the time of the interview.
 The identity of the respondent is not always clear in the case of questionnaire, whereas in the case of schedules,
the identity of the respondent is known.
 The questionnaire method is time consuming as the respondent may not return the questionnaire in time. There
is no such problem with the schedule method because the schedule is filled at the time of interview.
 The questionnaire method does not allow personal contact with the respondent but the schedule method does.
 The questionnaire method is useful only if the respondent is literate, while in the case of a schedule it is not
necessary for the interviewee to be literate.
 The risk of incomplete and incorrect information is more in a questionnaire, while in a schedule the
information collected is complete and more accurate.

MEASUREMENT AND SCALING

The term ‘measurement’ means assigning numbers or some other symbols to the characteristics of certain
objects. When numbers are used, the researcher must have a rule for assigning a number to an observation in
a way that provides an accurate description. We do not measure the object but some characteristics of it.
Therefore, in research, people/consumers are not measured; what is measured only are their perceptions,
attitude or any other relevant characteristics. There are two reasons for which numbers are usually assigned.
First of all, numbers permit statistical analysis of the resulting data and secondly, they facilitate the
communication of measurement results.

Scaling is an extension of measurement. Scaling involves creating a continuum on which measurements on

objects are located. Suppose you want to measure the satisfaction level towards Kingfisher Airlines and a
scale of 1 to 11 is used for the said purpose. This scale indicates the degree of dissatisfaction, with 1 =
extremely dissatisfied and 11 = extremely satisfied. Measurement is the actual assignment of a number from
 1 to 11 each respondent whereas the scaling is the process of placing the respondent on a continuum with
respect to their satisfaction towards Kingfisher Airlines.

TYPES OF MEASUREMENT SCALES

There are four types of measurement scales – nominal, ordinal, interval and ratio scales. The choice of the
measurement scale has implications for the statistical techniques to be used for data analysis.

Nominal scale: This is the lowest level of measurement. Here, numbers are assigned for the purpose of
identification of the objects. Any object which is assigned a higher number is in no way superior to the one
which is assigned a lower number. In the nominal scale there is a strict one-to-one correspondence between
the numbers and the objects. Each number is assigned to only one object and each object has only one number
assigned to it. It may be noted that the objects are divided into mutually exclusive and collectively exhaustive
categories.

Example of nominal scale:

 What is your religion?

a. Hinduism
b. Sikhism
c. Christianity
d. Islam
e. Any other, (please specify)

A Hindu may be assigned a number 1, a Sikh may be assigned a number 2, a Christian may be assigned a
number 3 and so on. Any religion which is assigned a higher number is in no way superior to the one which
is assigned a lower number. The assignment of numbers is only for the purpose of identification.

The statistical techniques can be applied to this nominal scale are frequency distribution, percentage, mode of
the distribution, chi-square test and contingency coefficient.

Ordinal scale: This is the next higher level of measurement than the nominal scale measurement. An ordinal
scale measurement tells whether an object has more or less of characteristics than some other objects.
However, it cannot answer how much more or how much less. An ordinal scale tells us the relative positions
of the objects and not the difference between the magnitudes of the objects.

Examples of the ordinal scale include quality rankings, rankings of the teams in a tournament, ranking of
preference for colours, soft drinks, socio-economic class and occupational status etc.

 Rank the following attributes while choosing a restaurant for dinner. The most important attribute may be
ranked one, the next important may be assigned a rank of 2 and so on.

Attributes and rank for choosing a restaurant for dinner

Attribute Rank
Food quality
 Prices
Menu variety
Ambience
Service
As the ordinal scale measurement is higher than the nominal scale measurement, all the statistical techniques
which are applicable in the case of nominal scale measurement can also used for the ordinal scale
measurement. The other statistical techniques can be applied to this ordinal scale are median, percentiles and
quartiles of the distribution and rank order correlation coefficient etc.

Interval Scale : The interval scale measurement is the next higher level of measurement. It takes care of the
limitation of the ordinal scale measurement where the difference between the score on the ordinal scale does
not have any meaningful interpretation. The interval scale the difference of the score on the scale has
meaningful interpretation.

The following are some of the examples of interval scale data;

 How important is price to you while buying a car?

Least important Unimportant Neutral Important Most Important
1 2 3 4 5
 How do you rate the work environment of your organization?
Very good Good Neither good nor bad Bad Very bad
5 4 3 2 1

One can compute arithmetic mean, standard deviation, correlation coefficient and conduct a ANOVA, t-test,
Z-test, regression analysis and Factor analysis.

Ratio scale: This is the highest level of measurement and takes care of the limitations of the interval scale
measurement, where the ratio of the measurements on the scale does not have a meaningful interpretation.
The ratio scale measurement can be converted into nominal, ordinal and interval scale.

Examples of the ratio scale data are weight, distance travelled, income and scales of a company, to mention a
few. Consider the following examples for ratio scale measurements.

 How many chemist shops are there in your locality?

 How many students are there in the MBA programme at IIFT?
 How much distance do you need to travel from your residence to reach the railway station?

All the mathematical operations can be carried out using the ratio scale data. In addition to the statistical
analysis mentioned in the nominal, ordinal and interval scale data, one can compute coefficient of variation,
geometric mean and harmonic mean using the ratio scale measurement.

ATTITUDE

An attitude is viewed as an enduring disposition to respond consistently in a given manner to various aspects
of the world, including persons, events and objects. A company is able to sell its products or services when
its customers have a favourable attitude towards its products/services. In the reverse scenario, the company
will not be able to sustain itself for long. It, therefore, becomes very important to measure the attitude of the
 customers towards the company’s products/services. Unfortunately, attitude cannot be measured directly.
There are many variables which the researcher wishes to investigate as psychological variables and these
cannot be directly observed. The attitude is derived from the perceptions. If the consumers have a favourable
perception towards the products, the attitude will be favourable. Therefore, the attitudes are indirectly
observed.

Basically, attitude has three components: cognitive, affective and intention or action components.

Cognitive component: this component represents an individual’s information and knowledge about an object.
This includes awareness of the existence of the object, beliefs about the characteristics or attributes of the
object and judgment about the relative importance of each of the attributes. In a survey, if the respondents are
asked to name the companies manufacturing plastic products, some respondents may remember names like
Tupperware, Modicare and Pearl Pet. This is called unaided recall awareness. More names are likely to be
remembered when the investigator makes a mention of them. This is aided recall. It may be noted that the
knowledge may not be limited only to the awareness. An individual can form beliefs or judgments about the
characteristics or attributes of the plastic products manufacturing companies through advertisements, word of
mouth, peer groups etc.

Affective component: The affective component summarizes a person’s overall feelings or emotions towards
the objects. The examples of this component could be: the food cooked in the pressure cooker is tasty, taste
of orange juice is good or the taste of bitter gourd is very bad etc. If there are a number of alternatives to
choose from, liking is expressed in terms of preference for one alternative over the other. Among the various
soft drinks like Pepsi,Coke, Limca and Sprite, the respondents might have to indicate the most preferred soft
drinks, the second preferred one and so on.

Intention or Action component: This component of an attitude, also called the behavioural component,
reflects a predisposition to an action by reflecting the consumer’s buying or purchase intention. It also reflects
a person’s expectations of future behaviour towards an object. How likely a person is to buy a particular
product may range from most likely to not at all likely, reflecting the purchase intentions.

Attitude measurement scales: Attitude is a psychological construct, a way of conceptualizing the intangible.
It is usually described as a mental state that is used by individuals to structure the way they perceive the
environment around them and guides the way they responds to their environment. It is very difficult to observe
or measure attitude directly because its existence is inferred from their consequences.

The following are the classification of attitude measurement scales.

1. Single item scale and multiple item scale

2. Comparative and non-comparative scales

Single item scale

In the single item scale, there is only one item to measure a given construct. For example:

Consider the following question:

 How satisfied are you with your current job?

 Very dissatisfied
Dissatisfied
Neutral
Satisfied
Vary satisfied

The problem with the above question is that there are many aspects to a job, like pay, work environment, rules
and regulations, security of job and communication with the seniors. The respondents may be satisfied on
some of the factors but may not on others. By asking a question as stated above, it will be difficult to analyse
the problem areas. To overcome this problem, a multiple item scale is proposed.

Multiple item scale

In a multiple item scale, there are many items that play a role in forming the underlying construct that the
researcher is trying to measure. As an example, some of the following questions may be asked in a multiple
item scale.

 How satisfied are you with the pay you are getting on your current job?
Very dissatisfied
Dissatisfied
Neutral
Satisfied
Vary satisfied
 How satisfied are you with the rules and regulations of your organization?
Very dissatisfied
Dissatisfied
Neutral
Satisfied
Vary satisfied
 How satisfied are you with the job security in your current job?
Very dissatisfied
Dissatisfied
Neutral
Satisfied
Vary satisfied

Comparative and Non-comparative Scales

With comparative scaling, the items are directly compared with each other (example: Do you prefer Pepsi or
Coke?). In non - comparative scaling each item is scaled independently of the others (example: How do you
feel about Coke?).

Comparative scales

In comparative scales it is assumed that respondents make use of a standard frame of reference before
answering the question. For example, respondents may be asked whether they prefer Chinese or Indian food.
 Comparative scale data is interpreted generally in a relative kind. The comparative scale includes paired
comparison, rank order, constant sum scale and Q-sort technique. We will discuss below each of the scale
under comparative scales in detail below:

Paired comparison scales

Here a respondent is presented with two objects and is asked to select one according to whatever criterion he
or she wants to use. The resulting data from this scale is ordinal in nature. The paired comparison technique
is a research design that yields interval-level scaled scores that are created from ratings made by each
respondent for all possible pairs of items under consideration. The basis for the method dates back to its first
reported use in the mid-1800s. Although the technique is a very powerful approach for producing a highly
reliable ranking of the rated items, it is underutilized by survey researchers due to the amount of data that
often must be gathered, and thus its cost and the burden it places on respondents. At the simplest level, paired
comparisons (i.e. simultaneously comparing two things with each other) are made by each respondent among
a set of items using a binary scale that indicates which of the two choices are most preferred, most pleasant,
most attractive, or whatever other judgment the respondent is asked to make in comparing the two.

Virtue Honesty Courage Fairness Kindness Wisdom Self control

Honesty
Courage
Fairness
Kindness
Wisdom
Self control

Rank order scaling

In the rank order scaling, respondents are presented with several objects simultaneously and asked to order or
rank them according to some criterion. Consider, for example the following question:

 Rank the following soft drinks in order of your preference, the most preferred soft drink should be ranked
one, the second most preferred should be ranked two and so on.

Soft drinks with their Rank

Soft Drinks Rank

Coke
Pepsi
Limca
Sprite
Mirinda
Seven Up
Fanta
Like paired comparison, this approach is also comparative in nature. The problem with this scale is that if a
respondent does not like any of the above- mentioned soft drink and is forced to rank them in the order of his
 choice, then the soft drink which is ranked one should be treated as the least disliked soft drink and similarly,
the other rankings can be interpreted. The scale is very commonly used to measure preferences for brands as
well as attributes. The rank order scaling results in the ordinal data.

Constant sum rating scaling

In constant sum rating scale, the respondents are asked to allocate a total of 100 points between various objects
and brands. The respondent distributes the points to the various objects in the order of his preference. Consider
the following example:

 Allocate a total of 100 points among the various school into which you would like to admit your child. The
more the points you allocate to a school, more preferred it is considered to be. The points should be allocated
in such a way that the sum total of the points allocated to various schools adds up to 100.

Schools and Point Allocation

Schools Points
Modern School
Mother’s International
Tagore International
Laxman Public School
Total Points 100

Q – sort technique

The Q – sort technique was developed to discriminate among large number of objects quickly. This technique
makes use of the rank order procedure in which objects are sorted into different piles based on their similarity
with respect to certain criterion. Suppose there are 100 statements and an individual is asked to pile them into
five groups, in such a way that the strongly agreed statements could be put in one pile, agreed statements
could be put in another pile, neutral statement form the third pile and so on.

Non comparative scales

In the non comparative scales, the respondents do not make use of any frame of reference before answering
the questions. For example; The respondent may be asked to evaluate the quality of food in a restaurant on a
five point scale ( 1 = very poor, 2 = poor and 5 = very good). The non-comparative scales are divided into
two categories, namely, the graphic rating scales and itemized rating scales. The itemized rating scales are
further divided into Likert Scale, Semantic differential scale and staple scale. All these come under the
category of multiple item scale.

Graphic rating scale

This is a continuous scale. In the graphic rating scale the respondent is asked to tick his preference on a graph.

 Please put tick mark on the following line indicate your opinion about the quality of Samsung Mobile Phones.
Another way of presenting the graphic rating scale is though smiling face scale.

Itemized rating scale

In the itemized rating scale, the respondents are provided with a scale that has a number of brief descriptions
associated with each of the response categories. The response categories are ordered in terms of the scale
position and the respondents are supposed to select the specified category that describes in the best possible
way an object is rated. Itemized rating scales are widely used in survey research. The itemized rating scales
are further divided into Likert Scale, Semantic differential scale and staple scale.

Likert scale

This is a multiple item agree- disagree five point scale. The respondents are given a certain number of items
or statements on which they are asked to express their degree of agreement/disagreement. This also called a
summated scale because the scores on individual items can be added together to produce a total score for the
respondent. In a typical research study, there are generally 25 to 30 items on a Likert scale.
Semantic differential scale

This scale is widely used to compare the images of competing brands, companies or services. Here the
respondent is required to rate each attitude or object on a number of five or seven point rating scales. The
difference between Likert and Semantic differential scale is that in Likert scale, a number of statements are
presented to the respondents to express their degree of agreement/disagreement. However, in the Semantic
differential scale, bipolar adjectives or phrases are used.
Stapel scale

The staple scale is used to measure the direction and intensity of an attitude. At times it may be difficult to
use semantic differential scales because of the problem in creating bipolar adjectives. The stapel scale
overcomes this problem by using only single adjectives. This scale generally has 10 categories involving
numbering -5 to +5 without a neutral point and is usually presented in a vertical form. The job of the
respondent is to indicate how accurately or inaccurately each term describes the object by selecting an
appropriate numerical response category. If a positive higher number is selected by the respondent, it means
the respondent is able to describe it more favorably. Suppose a restaurant is to be evaluated on quality of food
, then the Stapel scale would be presented as shown below:

+5
+4
+3
+2
+1
Quality of Food
-1
-2
-3
-4
-5
RELIABILITY IN MEASUREMENT SCALE

The reliability of a measure is indicated by the consistency and stability with which the instrument measures
the concept and helps in assessing the ‘goodness’ of a measure. A measure is reliable to the degree that it
supplies consistent results. Reliability is a partial contributor to validity. A reliable instrument need not be
valid, but a valid instrument is reliable. Reliability is not as valuable as validity, but is easier to assess. Reliable
instruments can at least be used with confidence that a number of transient and situational factors are not
interfering. They are robust instruments in that they work well under different conditions and at different
times. This distinction of time and condition is the basis for identification of two aspects of reliability –
stability and equivalence.

Stability: The ability of a measure to maintain stability over time, despite uncontrollable testing conditions
and the state of the respondents themselves, indicates its stability and low vulnerability to changes in the
situation. With a stable measure, we can secure consistent results with repeated measurements of the same
person with the same instrument. It is often a simple matter to secure a number of repeat readings in
observational studies but not so with questionnaires. Two tests of stability are test-retest reliability, which is
the reliability obtained by the repetition of an identical measure on a second occasion. In this method, repeated
measurements of the same person or group using the same measurement scale under similar conditions are
taken. A very high correlation between two scores indicates that the scale is reliable. The second one is split
- half reliability method. This method is used in the case of multiple item scales. Here the number of items
is randomly divided into two parts and a correlation coefficient between the two is obtained. A high correlation
indicates that greater reliability. Another measure which is used to test the internal consistency is coefficient
 alpha commonly known as cronbach alpha. It computes the average of all possible split-half reliabilities for
a multiple item scale.

Equivalence: A second aspect of reliability considers how much error may be introduced by different
investigators or different samples of the items being studied. Equivalence is concerned with variations at one
point in time among investigators. A way to test for the equivalence of measurements by two investigators is
to compare their observations of the same events.

Practicality: The scientific requirements of a project call for the measurement process to be reliable and valid,
while the operational requirements call for it to be practical. Hagen define practicality in terms of economy,
convenience and interpretability.

VALIDITY IN MEASUREMENT SCALE

The validity of a scale refers to the question whether we are measuring what we want to measure. Validity of
a scale refers to the extent to which the measurement process is free from errors. The validity of a scale is
more serious issue than reliability. There are different ways to measure validity.

Content validity: This is also called face validity. It involves subjective judgment by an expert for assessing
the appropriateness of the construct. Content validity of a measuring instrument is the extent to which it
provides adequate coverage of the topic under study. If the questionnaire adequately covers the topics that
have been defined as the relevant dimensions, it is possible to conclude that the instrument has good content
validity.

Concurrent validity: It is used to measure the validity of the new measuring techniques by correlating them
with the established techniques. It involves computing the correlation coefficient of two measures of the same
phenomena which are administered at the same time. Example: perception of an Airline and image of a
company.

Predictive validity: This involves the ability of a measured phenomenon at one point of time to predict
another phenomenon at a future point of time. If the correlation coefficient between the two is high, the initial
measure is said to have a high predictive ability. As an example, consider the use of Common Admission Test
(CAT) to shortlist candidates for admission to the MBA programme in a business school. The CAT scores are
supposed to predict the candidate’s aptitude for studies towards business education.

Measurement Error

This occurs when the observed measurement on a construct or concept deviates from its true values. The
following is a list of the sources of measurement errors.

 There are factors like mood, fatigue and health of the respondent which may influence the observed response
while the instrument is being administered.
 The variations in the environment in which measurements are taken may also result in a departure from the
true value.
 There are situations when a respondent may not understand the question being asked and the interviewer may
have to rephrase the same.
 At times, some of the questions in the questionnaire may be ambiguous and some may be very difficult for
the respondent to understand. Both of them cause deviation from the correct response.
 At times, the errors may be committed at the time of coding, entering of data on the computer and at the
tabulation stage.

ADMINISTRATION OF SURVEY

A survey is a scientific process of acquiring data and opinion from the public. Researchers undertake surveys
in order to determine the opinion of the public regarding products, candidates and other topics; for example a
sample of voters is surveyed before an election to determine how the public perceives the candidates and their
issues. A manufacturer makes a survey of the potential market before introducing a new product. The
information acquired from the public is used to develop new products, improve services and for various other
purposes. Thus, a survey is an important key to improve or maintain the quality of life.

The process of conducting a survey is a complex task. In order to conduct a survey, a large number of skilled
and trained persons is required. There are many ways in which data for a survey can be collected, such as by
phone, mail and the internet.

The principal focus of a survey is on the design and collection of data in which many intricacies involved are
frequently overlooked. However, a researcher, while conducting a survey, also gives attention to the need for
proper evaluation of the survey data as well as its proper analysis. A researcher collects the information or
data by means of standardized questions so that every individual surveyed responds to exactly the same
questions. The results of the surveys are presented in the form of summaries such as statistical tables and
charts.

Those who conduct a survey are typically large organizations, government agencies and institutions who know
that listening carefully to the consumers is important for their success. Researchers cannot divulge the name
of the client for whom they are undertaking the survey because if the respondents get to know the name of the
organization, it might create a bias in their responses. Researchers only reveal the name of the organizations
as and when they are directed to do so.

Questions

1. What do you understand by primary data? Describe the methods of collecting primary data?
2. Explain the methods and instruments of collecting secondary data.
3. What is attitude measurement scale? Discuss its types.
4. Describe the concept of questionnaire design.
5. Explain the process of conducting a survey.
6. Differentiate between content and concurrent validity of scale.
7. What do you mean by validity and reliability of measurement scale?

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