1. Introduction, Nature & Scope of Marketing Research
Dr. A. K. Dey

2. Reference Books Marketing Research an Applied Orientation
Naresh Malhotra & S. Dash
Business Research Methods
Cooper & Schindler
Marketing Research – Text & Cases
Boyd, Westfall & Stasch
Res Method _ 1: Dr. Dey

3. Some Important Aspects
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.
Res Method _ 1: Dr. Dey

4. Some Important Aspects…Contd.
Is MR applicable in all situation?
Def of MR.
Scope of MR
Scientific & Non-scientific Research: Distinction between these
Validity & Reliability
Res Method _ 1: Dr. Dey

5. Some Important Aspects…Contd.
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
Res Method _ 1: Dr. Dey

6. Some Important Aspects…Contd.
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
Res Method _ 1: Dr. Dey

7. Objectives 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
Res Method _ 1: Dr. Dey

8. What is Business Research?
A systematic Inquiry whose objective is to provide information to solve managerial problems.
Res Method _ 1: Dr. Dey

9. Why Study Research?
Research provides you with the knowledge and skills needed for the fast-paced decision-making environment
Res Method _ 1: Dr. Dey

10. Different Styles of Research
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
Res Method _ 1: Dr. Dey

11. What is Good Research?
Following the standards of the scientific method
Purpose clearly defined
Research process detailed
Research design thoroughly planned
Limitations frankly revealed
High ethical standards applied
Res Method _ 1: Dr. Dey

12. What is Good Research? (cont.)
Following the standards of the scientific method (cont.)
Adequate analysis for decision-maker’s needs
Findings presented unambiguously
Conclusions justified
Researcher’s experience reflected
Res Method _ 1: Dr. Dey

13. The Manager-Researcher Relationship
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
Res Method _ 1: Dr. Dey

14. Manager-Researcher Conflicts
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
Res Method _ 1: Dr. Dey

15. When Research Should be Avoided
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
Res Method _ 1: Dr. Dey

16. Need for MR 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
Res Method _ 1: Dr. Dey

17. MR & Marketing Decisions
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
Res Method _ 1: Dr. Dey

18. MR & Marketing Decisions
Other problems for collecting information required for marketing decisions are
Being external – collection is cumbersome & expensive
Variables are often qualitative & dynamic – making measurements difficult & inaccurate
Variables are complex & interact with each other
Res Method _ 1: Dr. Dey

19. Risk of using wrong information
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
Res Method _ 1: Dr. Dey

20. Scientific Method: The Essential Tenets of Science
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
Res Method _ 1: Dr. Dey

21. Ways to Communicate Exposition Argument
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
Res Method _ 1: Dr. Dey

22. Important Arguments in Research
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
Res Method _ 1: Dr. Dey

23. The Building Blocks of Theory
Concepts
Constructs
Definitions
Variables
Propositions and Hypotheses
Theories
Models
Res Method _ 1: Dr. Dey

24. Understanding Concepts
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
Res Method _ 1: Dr. Dey

25. Understanding Concepts
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
Res Method _ 1: Dr. Dey

26. What is a Construct?
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”
Res Method _ 1: Dr. Dey

27. Types of Variables Independent Dependent Moderating Extraneous
Intervening
Res Method _ 1: Dr. Dey

28. Types of Variables Independent & Dependent Independent Dependent
Leadership style & Employee performance or Job satisfaction
Price of a product & Demand
Independent
Cause, Stimulus, Predictor, Antecedent
Dependent
Effect, Response, Criterion, Consequence
Res Method _ 1: Dr. Dey

29. Types of Variables 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)
Res Method _ 1: Dr. Dey

30. Types of Variables 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
Res Method _ 1: Dr. Dey

31. Types of Variables Intervening
Intervening variable (IVV) is defined as a factor which theoretically effects the observed phenomenon but can not be seen measured or manipulated
Its effect can be inferred from the effects on the observed phenomenon
Four day work week (IV) will lead to higher productivity (DV) by increasing job satisfaction (IVV)
Res Method _ 1: Dr. Dey

32. Propositions & Hypotheses
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
Res Method _ 1: Dr. Dey

33. The Role of the Hypothesis
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
Res Method _ 1: Dr. Dey

34. Characteristics & Types of a Good Hypothesis
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
Res Method _ 1: Dr. Dey

35. Types of Hypothesis Descriptive
Describes the existence, size, form or distribution of some variables
Eighty percent of shareholders of HLL favour increasing the company’s cash dividend
It can also be stated as research question
Do shareholders of HLL favour an increased cash dividend?
Either form is acceptable, but descriptive hypothesis format has advantages
Encourages researcher to crystallize thinking
Encourages to think about implications of either an accepted or rejected finding
Useful for testing statistical significance
Res Method _ 1: Dr. Dey

36. Types of Hypothesis Relational
Statements that describe the relationship between two variables with respect to some case
Foreign (variable) refrigerators are perceived to be of better quality (variable) by Indian consumers (case)
Res Method _ 1: Dr. Dey

37. Types of Relational Hypothesis
Two types: Correlation & Causal
Correlation
Merely states that variables occur together without implying that one causes the other
People in Kerela give more importance to education than people in Punjab
In an office old employees are more responsive than young employees
Res Method _ 1: Dr. Dey

38. Types of Relational Hypothesis
Causal (or Explanatory)
There is an implication that existence of (or a change in) one causes or leads to a change in the other
Causal variable is called Independent variable and the other Dependent variable
Advertisement causes higher sales
Increase in income leads to higher savings
Res Method _ 1: Dr. Dey

39. The Value of a Theory Narrows the range of facts we need to study
Suggests which research approaches will yield the greatest meaning
Suggests a data classification system
Summarizes what is known about an object of study
Predicts further facts that should be found
Res Method _ 1: Dr. Dey

40. Definition of Marketing Research
American Marketing Association
MR is the systematic gathering, recording and analyzing of data about problems related to the marketing of goods & services
Philip Kotler
MR is the systematic design, collection, analysis & reporting of data & findings relevant to a specific marketing situation facing the company
It may be relevant to add the word “continuous” to the above definitions
Res Method _ 1: Dr. Dey

41. Purpose of MR
To improve quality of decision making process by providing information
To help reduce the risk associated with managerial decision making
Risk due to two types of uncertainties:
About the expected outcome
About the future environment
To discover opportunity & exploit profitably
For example : Frooti, Velvette, Mother Dairy, Dhara, Pan Parag
Res Method _ 1: Dr. Dey

42. Scope of MR Consumers of products & services Product & product design
Buyer behaviour, Influencers, Buying habits, Incentives
Product & product design
Pricing, Sourcing, Physical attributes
Distribution Channels
Performance, Dealer Satisfaction, Own vs Multi-brand
Advertising Impact
Image, Positioning, Media Planning, Message Content & Prioritizing
Macro Level Phenomenon
Govt spending. Mood of the Industry, State of Economy
Res Method _ 1: Dr. Dey

43. MR Procedure Seven inter-related steps Specifying research objectives
Preparing a list of needed information
Designing the data collection project
Selecting a sample type
Determining sample size
Organizing & carrying out the field work
Analyzing the collected data & report the findings
Res Method _ 1: Dr. Dey

44. The Management-Research Question Hierarchy
Management Dilemma
Measurement Questions
Investigative Questions
Research Questions
Management Questions
Management Decision 2 3 4 5 6 1
Res Method _ 1: Dr. Dey

45. The Management-Research Question Hierarchy6
Management Decision 5
Conduct an employee survey for outcomes of change in compensation structure 4
If compensation scheme is changed, will good sales persons leave? 3
Introduce individual incentive? Quota based incentive? Advertise more? 2
How can we improve sales in south? 1
Why are sales declining in south while sales are booming in all other regions?
Res Method _ 1: Dr. Dey

46. Working with the Hierarchy
Management Dilemma
The symptom of an actual problem
Not difficult to identify a dilemma, however choosing one to focus on may be difficult
Needs proper prioritizing
Res Method _ 1: Dr. Dey

47. Working with the Hierarchy
Management Question Categories
Choice of purposes or objective
Generation and evaluation of solutions
Troubleshooting or control situation
Res Method _ 1: Dr. Dey

48. Working with the Hierarchy
Fine tune the research question
Examine concepts and constructs
Break research questions into specific second-and-third-level questions
Verify hypotheses with quality tests
Determine what evidence answers the various questions and hypothesis
Set the scope of your study
Res Method _ 1: Dr. Dey

49. Working with the Hierarchy
Investigative Questions
Questions the researcher must answer to satisfactorily arrive at a conclusion about the research question
Res Method _ 1: Dr. Dey

50. Working with the Hierarchy
Measurement Questions
The questions we actually ask to extract information from respondents
Res Method _ 1: Dr. Dey

51. Other Processes in the Hierarchy
Exploration
Recent developments
Predictions by informed figures about the prospects of the technology
Identification of those involved in the area
Accounts of successful ventures and failures by others in the field
Res Method _ 1: Dr. Dey

52. Research Process Problems
The Favored Technique Syndrome
Company Database Strip-Mining
Unresearchable Questions
Ill-Defined Management Problems
Politically Motivated Research
Res Method _ 1: Dr. Dey

53. MR Procedure Seven inter-related steps
Specifying research objectives (Problem Definition)
Preparing a list of needed information
Designing the data collection project
Selecting a sample type
Determining sample size
Organizing & carrying out the field work
Analyzing the collected data & report the findings
Res Method _ 1: Dr. Dey

54. Problem Definition
Any situation requiring further investigation is a problem
Not all problems require fresh MR to be carried out. Many can be decided upon based on past data, trend, experience
Distributor Credit
Manufacturing out put
Stocking level
Problem Definition should be
Specific – neither too broad nor too narrow
Target outcome should be precise
Should be manageable within time & resource available
Res Method _ 1: Dr. Dey

55. Problem Definition – an example
Incomplete Problem Definition
Better Problem Definition
1. Product
Refrigerator
Refrigerator – Ordinary & Frost free
2. Market
West Zone
West Zone with spl ref to Mumbai, Nashik, Pune & Nagpur
3. Market Segment
----
Office & Institutional Sector & NOT Households
4. Current Mkt Share
Not available
12% over all
3% in Office & Inst
5. Problem
Sales not picking up at the rate at which they should
Last year our growth 5%
Industry grew by 25%
6. MR Problem
To find out the reason
To find out the reasons for shortfall in our growth rate in office & inst segments & suggest specific strategies followed by Brands A & B
Res Method _ 1: Dr. Dey

56. Research Design It spells out how to achieve stated MR objectives
Consists of
Data Collection Method
Specific Research Instruments
Sampling Plan
Res Method _ 1: Dr. Dey

57. Research Design Data Collection Method Specific Research Instruments
Secondary Data
Primary Data
Observation
Survey (Most widely used)
Experimentation
Specific Research Instruments
Camera, Tape, People Meter, Tally Sheet, Questionnaire
Sampling Plan
Who is to be surveyed? Sampling unit
How many? Sample size
How are they to be selected? Sampling Procedure
How are they to be reached? Sampling Media
Res Method _ 1: Dr. Dey

58. Field Work
Involves planning, execution, supervision & checking for errors
MR must be planned & executed well so as to complete within resource & time limits
Progress to be closely monitored to avoid time & cost overrun
Extensive back checks & spot checks will improve the quality of MR output
Res Method _ 1: Dr. Dey

59. Data Analysis Done in two phases Classification of raw data
Quantitative vs Qualitative
Chronological, Geographical, Demographic
Summarizing the data
Frequency distribution, Mean, Median, Mode, Range, Variance, Standard Deviation
Data Analysis Methods – Four classes
Res Method _ 1: Dr. Dey

60. Data Analysis……….Contd.
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
Res Method _ 1: Dr. Dey

61. Report Presentation Report must have following sections
Executive Summary
Objectives & Methodology
Summary, Conclusion, Recommendation
Sample Characteristics & Basis of selection
Detailed findings
Questionnaires & other supporting documents
Res Method _ 1: Dr. Dey

62. Marketing Research
Res Method _ 1: Dr. Dey

63. Secondary Research Secondary Data Inexpensive May not be relevant
May be old
Res Method _ 1: Dr. Dey

64. Internal Sources Company Accounts Internal Reports and Analysis
Stock Analysis
Retail data - loyalty cards, till data, etc.
Res Method _ 1: Dr. Dey

65. External Sources Government Statistics Trade publications
Commercial Data – IMRB, Gallup, Mintel, etc.
Household Expenditure Survey
Magazine surveys
Other firms’ research
Research documents – publications, journals, etc.
Res Method _ 1: Dr. Dey

66. Marketing Research 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!!)
Res Method _ 1: Dr. Dey

67. Marketing Research 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!
Res Method _ 1: Dr. Dey