5. +
Definition
Market research, which includes social and opinion
research, is the systematic gathering and interpretation of
information about individuals or organisations using the
statistical and analytical methods and techniques of the
applied sciences to gain insight or support decision making.
The identity of respondents will not be revealed to the user
of the information without explicit consent and no sales
approach will be made to them as a direct result of their
having provided information.
Source – ICC/ESOMAR International Code on Market and Social
Research
6. +
Types of Market Research
Primary
• New research
carried out on a
particular topic
Secondary
• Research using
existing
published
sources of
relevant
information.
Qualitative
• Research that
seeks customer
opinions and
views. For
example, a
Market
Researcher
may stop a
consumer who
has purchased
a particular
type of bread
and ask him or
her why that
type of bread
was chosen.
Quantitative
• Research
where results
can be
expressed in
numbers. For
example, a
bank might ask
its customers to
rate its overall
service as
either
excellent,
good, poor or
very poor. This
will provide
quantitative
information that
can be
analysed
statistically.
7. +
Steps in Market Research
Planning
Developing Questionnaire
Research – Data collection
Analysing – Data
Using the data – Strategic
Decision Making
8. +
Planning – Why What When How
Creating Awareness:
If goal is to create
awareness in the
market about your
product or service, the
research should center
around attitudes,
usage, public relations
and advertising
messages.
Retention:
If goal is to increase
purchases from current
customer base and
enhance customer
loyalty, research
should center around
customer satisfaction
and behavioral
insights.
Acquisition:
If goal is to optimize
marketing message to
acquire more sales,
research should center
around product
concept, usability,
pricing and advertising
testing.
Targeting:
If goal is to determine
which segment of the
population has the
highest return on
investment, research
should center around
brand positioning and
competitive analysis.
9. +Developing Questionnaire
Design the questionnaire
with the objectives in mind
Ensure majority of the
questions are quantitative.
Quantitative data produces
data that are objective and
can be acted on.
Minimum number of
questions should be
quantifiable to avoid
survey fatigue and
abandonment
Questionnaire should have
relevant questions .
Misleading question will
result in poor irrelevant
data
Avoid questions that are –
Leading
Sensitive
Personal
Offensive
Questions should be –
Simple
Specific
Direct
10. +
• It is not realistic to think that entire marketing
population can be covered for a survey an
adequate percentage and cross-section of
target consumer is needed.
• If there are variations in the target population
or statistically significant differences are to be
noted between subgroups in the sample, the
sample size should be adjusted for it.
Sample Size
• Choosing the right distribution method to collect
your data is important. Different modes introduce
different forms of bias so carefully consider your
target audience and the best channel for reaching
them. Eg - For instance, if your target audience is
the elderly, social media or internet channels may
not be the best distribution options. Direct mail,
phone or personal interview may be the best
option for reaching this audience.
• Consider other distribution methods such as QR
code or web address on receipts, newsletters and
printed brochures.
Distribution
Method
Research – Data Collection
Perquisite for good data collection
11. +Analysing the Data
Clean your survey data: Identify and
weed out responses that have
straight-line, Christmas tree, red
herring, and/or outlier patterns that
can taint the results.
Analyze your data: Analyze the data to determine questions
are answered in the format you expected. Unusual trends
could indicate a problem with the question or question type. If
so, you may need to discount the question or run another
study related to the learning objective.
Segment your data: Segment
your data by learning objective so
that you can truly understand the
most significant findings of your
research
Report your results:
Share your findings!
12. +Make Strategic Business Decisions
Armed with
your market
research data,
you can
confidently
make sound
management
decisions.
Make
Decisions
Meet with your
research
stakeholders to
discuss your
pre-defined
course of
action.
Implement
your action
plan and
measure the
results.
Share
decisions
14. +
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.
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15. +
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
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16. +
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
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17. +
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
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18. +
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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
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What is Business Research?
A systematic Inquiry whose objective is to provide
information to solve managerial problems.
20. +
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Why Study Research?
Research provides you with the knowledge and skills
needed for the fast-paced decision-making
environment
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Ways to Communicate
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
33. +
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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 32 - 34
34. +
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The Building Blocks of Theory
Concepts
Constructs
Definitions
Variables
Propositions and Hypotheses
Theories
Models
35. +
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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
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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
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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”
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Types of Variables
Independent
Dependent
Moderating
Extraneous
Intervening
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Independent & Dependent
Leadership style & Employee performance or
Job satisfaction
Price of a product & Demand
Independent
Cause, Stimulus, Predictor, Antecedent
Dependent
Effect, Response, Criterion, Consequence
Types of Variables
40. +
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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)
Types of Variables
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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
Types of Variables
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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)
Types of Variables
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Propositions & Hypotheses
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
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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
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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
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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
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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)
Types of Hypothesis
48. +
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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
Types of Relational Hypothesis
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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
Types of Relational Hypothesis
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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
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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
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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
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Scope of MR
Consumers of products & services
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
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MR Procedure
Seven inter-related steps
1.Specifying research objectives
2.Preparing a list of needed information
3.Designing the data collection project
4.Selecting a sample type
5.Determining sample size
6.Organizing & carrying out the field work
7.Analyzing the collected data & report the
findings
55. +
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The Management-Research
Question Hierarchy
1 Management Dilemma
Measurement Questions
Investigative Questions
Research Questions
Management Questions
Management Decision
2
3
4
5
6
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The Management-Research
Question Hierarchy
1 Why are sales declining in south
while sales are booming in all other
regions?
Conduct an employee survey for
outcomes of change in compensation
structure
If compensation scheme is changed,
will good sales persons leave?
How can we improve sales in
south?
Introduce individual incentive? Quota
based incentive? Advertise more?
Management Decision
2
3
4
5
6
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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
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Working with the Hierarchy
Management Question Categories
Choice of purposes or objective
Generation and evaluation of
solutions
Troubleshooting or control
situation
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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
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Working with the Hierarchy
Investigative Questions
Questions the researcher must
answer to satisfactorily arrive at
a conclusion about the research
question
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Working with the Hierarchy
Measurement Questions
The questions we actually ask to
extract information from
respondents
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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
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Research Process Problems
The Favored Technique Syndrome
Company Database Strip-Mining
Unresearchable Questions
Ill-Defined Management Problems
Politically Motivated Research
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MR Procedure
Seven inter-related steps
1.Specifying research objectives (Problem
Definition)
2.Preparing a list of needed information
3.Designing the data collection project
4.Selecting a sample type
5.Determining sample size
6.Organizing & carrying out the field work
7.Analyzing the collected data & report the
findings
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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
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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
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Research Design
It spells out how to achieve stated MR objectives
Consists of
Data Collection Method
Specific Research Instruments
Sampling Plan
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Research Design
Data Collection Method
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
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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
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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
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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
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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
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Secondary Research
Secondary Data
Inexpensive
May not be relevant
May be old
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Internal Sources
Company Accounts
Internal Reports and Analysis
Stock Analysis
Retail data - loyalty cards, till data, etc.
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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.
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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!!)
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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!