3. * Marketing Research an Applied Orientation * Naresh Malhotra & S. Dash * Business Research Methods * Cooper & Schindler * Marketing Research – Text & Cases * Boyd, Westfall & Stasch

4. * In order to understand and appreciate Research Methodology following points must be very clear * What is Research? * What is Marketing Research? Why carry out Marketing Research? How it is different from Market Research? * What is Bus Res Methods or Research Methodology? * The connection between MR and managerial decision making.

5. * Is MR applicable in all situation? * Def of MR. * Scope of MR * Scientific & Non-scientific Research: Distinction between these * Validity & Reliability

6. * Six difficulties in applying scientific method to marketing * Investigator involved in the use of result * Imprecise measuring devices: How to measure attitudes? Intentions? Opinions? * Influence of measurement process on the result * Time pressure for the result * Difficulty in using experiments to test hypothesis * Great complexity of subjects

7. * Research Process: How to conduct a research? Which steps in which sequence? * How many types of research * Qualitative: Exploratory * Quantitative: Descriptive and Experimental * What is Research Design * Sampling Design * Scaling: Attitude Measurement * Questionnaire Construction

8. * Understand Marketing Research (MR) * Understand relevance of MR for marketing decisions * Develop appreciation of MR & its applications * Know the procedure of conducting * Develop familiarity with each step of procedure

9. * A systematic Inquiry whose objective is to provide information to solve managerial problems.

10. * Research provides you with the knowledge and skills needed for the fast-paced decision- making environment

11. * Applied Research * Emphasis on solving practical (specific) problems * It could be exploring opportunities also * Rectifying an inventory system that is resulting into lost sales * Opportunity to increase stockholder wealth by acquiring another firm * Pure Research/Basic Research * Emphasis on problem solving but of a general nature (not specific) * Effect of coupon as against rebate to stimulate demand

12. * Following the standards of the scientific method * Purpose clearly defined * Research process detailed * Research design thoroughly planned * Limitations frankly revealed * High ethical standards applied

13. * Following the standards of the scientific method (cont.) * Adequate analysis for decision-maker’s needs * Findings presented unambiguously * Conclusions justified * Researcher’s experience reflected

14. * Manager’s obligations * Specify problems * Provide adequate background information * Access to company information gatekeepers * Researcher’s obligations * Develop a creative research design * Provide answers to important business questions

15. * Management’s limited exposure to research * Manager sees researcher as threat to personal status * Researcher has to consider corporate culture and political situations * Researcher’s isolation from managers

16. * When information cannot be applied to a critical managerial decision * When managerial decision involves little risk * When management has insufficient resources to conduct a study * When the cost of the study outweighs the level of risk of the decision

17. * A manager takes decisions * His responsibility is to reduce risk of failure in decision making * Risk arises due to lack of relevant information * A manager always seeks information to improve quality of decision making * Information can be collected through MR * Hence, MR is an important tool for managerial decision making

18. * For Production, Finance, Personnel * Most of the required info are available within the organization; Hence easy to collect & analyze * Formal procedures are used to improve quality : Stats Methods for QC, PERT & CPM, Queuing Theory, Optimization Techniques etc * For Marketing – information mostly exist outside the organization * In consumer behaviour, perception, minds * In competitive moves * In new government rules & regulations * In social & political changes

19. * Choice of wrong information may lead to * Excessive expenditure * Decision going astray – Hind Sanitaryware * Becoming uncompetitive & losing out – S Kumars Internet centers & Modular Kitchen * Market may vanish all of a sudden – fashion garments

20. * Direct observation of phenomena * Clearly defined variables, methods, and procedures * Empirically testable hypotheses * Ability to rule out rival hypotheses * Statistical justification of conclusions * Self-correcting process

21. * Exposition * descriptive statements that merely state and do not give reason * Argument * allows us to explain, interpret, defend, challenge, and explore meaning * Two types: Deduction & Induction

22. * Deduction is a form of inference that purports to be conclusive * Induction draws conclusions from one or more particular facts For suitable examples consult book pages 32 - 34

23. * Concepts * Constructs * Definitions * Variables * Propositions and Hypotheses * Theories * Models

24. * A concept is a bundle of meanings or characteristics associated with certain events, objects, conditions, situations, and behaviors * Concepts have been developed over time through shared usage

25. * The success of research hinges on: * how clearly we conceptualize * how well others understand the concepts we use * For customer loyalty use questions that tap faithfully the Attitude of participants * Attitudes are abstract, try to measure them using carefully selected concepts

26. * A construct is an image or idea specifically invented for a given research and/or theory- building purpose. * Constructs are required for more abstract concepts – “Personality”, “Satisfied Customer”

27. * Independent * Dependent * Moderating * Extraneous * Intervening

28. * Independent & Dependent * Leadership style & Employee performance or Job satisfaction * Price of a product & Demand * Independent * Cause, Stimulus, Predictor, Antecedent * Dependent * Effect, Response, Criterion, Consequence

29. * Moderating * In each relationship there is one Independent Variable (IV) & one Dependent Variable (DV) * Four day work week (IV) will lead to higher productivity (DV) * Moderating variable is a second independent variable that has significant effect on the originally stated IV–DV relationship * Four day work week (IV) will lead to higher productivity (DV), especially among young workers (MV)

30. * Extraneous * Infinite number of extraneous variables (EV) exist that might effect the relationship * Most of such variables have little or no effect on the given situation and these may be ignored * Others may have highly random occurrence as to have little impact * For productivity example: election of a new mayor, rainy days, bird flu, strike etc

31. * Analytical Methods – Four classes: * Tests of Significance :Sampling Statistics, Chi Square Analysis & Analysis of Variance * Explaining Observed difference I: Cross Tabulation, Correlation & Regression * Explaining Observed difference II: Linear Discriminant Analysis & Automatic Interaction Detector * Identifying Interdependencies: Cluster, Factor & Conjoint Analysis

32. * Proposition * A statement about concepts that may be judged as TRUE or FALSE if it refers to observable phenomenon * Proposition formulated for empirical testing is Hypothesis * Example * Infosys employees have higher than average achievement motivation

33. * Guides the direction of the study * Identifies facts that are relevant * Suggests which form of research design is appropriate * Provides a framework for organizing the conclusions that result

34. * A good hypothesis should fulfill three conditions: * Must be adequate for its purpose * Must be testable * Must be better than its rivals * Hypothesis types * Descriptive * Relational: Correlation & Causal

35. * Report must have following sections * Executive Summary * Objectives & Methodology * Summary, Conclusion, Recommendation * Sample Characteristics & Basis of selection * Detailed findings * Questionnaires & other supporting documents

37. Secondary Data  Inexpensive  May not be relevant  May be old

38. * Company Accounts * Internal Reports and Analysis * Stock Analysis * Retail data - loyalty cards, till data, etc.

39. * Government Statistics * Trade publications * Commercial Data – IMRB, Gallup, Mintel, etc. * Household Expenditure Survey * Magazine surveys * Other firms’ research * Research documents – publications, journals, etc.

40. * Advantages of Marketing Research * Helps focus attention on objectives * Aids forecasting, planning and strategic development * May help to reduce risk of new product development * Communicates image, vision, etc. * Globalisation makes market information valuable (HSBC adverts!!)

41. * Disadvantages of Marketing Research * Information only as good as the methodology used * Can be inaccurate or unreliable * Results may not be what the business wants to hear! * May stifle initiative and ‘gut feeling’ * Always a problem that we may never know enough to be sure!