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Research methodology

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RM Case study

RM Case study

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  • 1. RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT
    Definition of Marketing Research: “ Systematic
    design, collection, record, analysis and reporting of data for aid in making business decisions.”
    • Literally Research means to “search again”. It connotes scientific investigation wherein the researcher takes another, more careful look at the data to discover all that can be known about the subject of study
    • 2. If information generated or data collected and analyzed are to be accurate, researcher must have an objective, without engaging in a biased attempt to prove preconceived ideas.
    • 3. Objective is to facilitate the managerial decision making process for all aspect of business: Finance, Marketing, Personal and so on.
    1
    suresh
  • 4. RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
    • Segmentation
    • 5. Targeting
    • 6. Positioning
    Marketing Strategy
    LEVEL 1
    (Strategic)
    Information for marketing decisions
    Marketing Plan
    LEVEL 2
    (Tactical)
    2
    suresh
  • 10. RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
    Who constitutes the buyers ?
    Why do some people buy and some don’t?
    What are the market share of the respective brands?
    Market & Sales Research
    From which outlet are the product bought ?
    What drives a consumer to buy a brand ?
    Which alternative packaging is most preferred ?
    What features /attributes of product is important
    Product Research
    3
    suresh
  • 11. RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
    What are the responses to various price levels ?
    To what extent is sales affected by price?
    What pricing policy should be adopted for new product introduction ?
    Price Research
    Which is the most effective advertising mix ?
    How successful are discounts coupons, lucky draws ?
    What advertising theme, appeal, slogan to use ?
    Promotion(Advertising) Research
    What product features should be emphasized ?
    4
    suresh
  • 12. RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
    What channels should be used ?
    What type of stores display the product and in what quantity?
    Where and what volumes should the product be stocked ?
    Place (Distribution) Research
  • 13. RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
    Four stages of decision making process:
    Identifying problems or Opportunities: Organization must determine where it wants to go and how it will get there.
    E.g.: Develop package for a new brand
    Increase the amount of repeat purchasing
    Allocate advertising budget geographically.
    Diagnosing and assessing problems or opportunities: Manager need to gain insights about the underlying factors causing the situation
    Selecting and implementing a course of action: Research is often conducted to obtain specific information that will aid in evaluating the alternatives and in selecting the best course of action
    6
    suresh
  • 14. RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
    Evaluating the course of action: Objective measurement and the appraisal of extent to which a given activity, project or program has achieved its objective
    7
    suresh
  • 15. RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
    Determining when Research should be conducted:
    Time Constraint
    Availability of Data
    Nature of decision
    Benefit v/s cost
    Is sufficient time available before managerial decision must be made ?
    Is the information already on hand, inadequate for making the decision ?
    Is the decision of considerable strategic or tactical importance ?
    Does the value of the research information exceed the cost of conducting Research ?
    YES
    YES
    YES
    YES
    NO
    NO
    NO
    NO
    Research should not be conducted
    Conduct Research
    8
    suresh
  • 16. STEPS INVOLVED IN THE RESEARCH PROCESS
    Decision making: Process of resolving a problem or choosing among alternative
    opportunities . Decision making situation ranges from complete certainty to
    absolute ambiguity
    Complete Certainty Uncertainty Absolute Ambiguity
    • Decision maker has all the information and exact nature of business problem.
    • 17. Research may not be needed at all.
    • 18. Information about alternatives is incomplete
    • 19. Research has to be done.
    • 20. Business problem is unclear
    • 21. Research may be a waste of time, however can be attractive for decision makers
    9
    suresh
  • 22. STEPS INVOLVED IN THE RESEARCH PROCESS …contd
    Problem discovery
    Problem discovery
    and definition
    Selection of exploratory research technique
    Experience survey
    Case study
    Secondary (historical data)
    Pilot study
    Problem definition (statement of research objective)
    Planning the research
    design
    Selection of basic research method
    Secondary data study
    Observation
    Survey
    Experiment
    10
    suresh
  • 23. STEPS INVOLVED IN THE RESEARCH PROCESS …contd
    Sampling
    Selection of sample design
    Nonprobability sampling
    Probability sampling
    Collection of data (fieldwork)
    Data gathering
    Editing and coding data
    Data processing and analysis
    Data processing and analysis
    Interpretation of findings
    Drawing conclusion and
    preparing report
    Report
    11
    suresh
  • 24. Problem discovery
    Problem definition (statement of research objective)
    “The formulation of a problem is often more essential than its solution”
    - Albert Einstein
    Introduce new product
    Design a test market to assess the likely acceptance of the new product
    Adopt pricing strategy for a new product
    Assess the potential levels of demand associated with various price levels
    General statement
    Specifically identified
    Develop package for a new product
    Evaluate effectiveness of alternate package design
    Allocate advertising budget geographically
    Determine current level of market penetration in the respective areas
    12
    suresh
  • 25. RESEARCH DESIGN
    Research Design
    • Determines the extent of some phenomena in form of numbers
    • 26. Focus of research not on numbers but on words and observations
    Qualitative
    Research
    Quantitative
    Research
    Exploratory
    Research
    Descriptive
    Research
    Causal
    Research
    • Identifies cause-and-effect relationship among variables. Eg: Influence of price, packaging, advertising on sales.
    • 27. Exploratory and Descriptive research normally precede Causal research
    • 28. Eg. Will buyer purchase TV if a variable/feature incorporated in it? (COMPLETE CERTAINTY)
    • 29. Describes characteristics a population
    • 30. Determines the answers to who, what, when, where and how kind of questions
    • 31. Helps in segment and target the market.
    • 32. Eg. What are the ratings given to variables? Who gave the ratings? Where (which zone/state) rating was given? (UNCERTAINTY)
    • 33. Conducted during initial stage of research process
    • 34. Clarifies the thought about research problem
    • 35. Eg. What are the10 most important variable consumers use to decide while buying TV? (ABSOLUTE AMBIGUITY)
    * Degree of uncertainty of a research problem determines the research methodology
    13
    suresh
  • 36. Selection of exploratory research technique
    Secondary (historical data)
    14
    suresh
    Data gathered and recorded by someone else prior to the current needs of the
    researcher. Secondary data are usually historical.
    • Objective for Secondary data:
    • 37. Fact Finding: Eg. Sales, Market share of a product.
    Population, age, gender (Census data)
    • Model Building: Specifying relationship between two or more variables.
    Eg. Used to estimate growth, inflation for financial research
    Used to calculate market potential (population X per capita income)
  • 38. Selection of exploratory research technique
    Secondary (historical data)
    15
    suresh
    …contd
    • Classification of Secondary data:
    • 39. Internal and Proprietary data: E.g.. Purchase/sales volume of products for a Shopping Mall
    • 40. Books and Periodicals: E.g.. Journal of Marketing research, Business week, Financial Analyst journal
    • 41. Government Sources: E.g.. Census Data (No. of members in family, gender, age etc). Economic data series like GDP, balance of Payment
    • 42. Regional Publications: E.g.. Publications generated by different banks
    Metro political planning agencies of the city provides about population, economies, transportation
  • 43. Selection of exploratory research technique
    Secondary (historical data)
    16
    suresh
    …contd
    • Classification of Secondary data:
    • 44. Media Sources: E.g.. TV channel viewership data
    • 45. Market Share data: Retail sales volume data based on product movement.
    • 46. Consumer attitude and public opinion research: Syndicated service for report findings from attitude research and opinion poll
    • 47. Stock Market sources: E.g.. Reports provided by BSE, NSE, moneycontrol.com,
  • Selection of exploratory research technique
    Pilot study
    17
    suresh
    Pilot study generates primary data usually for qualitative analysis. It serve as a
    guide for the larger study. Include focus group interviews, projective techniques and depth
    interviews
    • Focus Group Interview (FGD):
  • Selection of exploratory research technique
    Pilot study
    18
    suresh
    …contd
    • Focus Group Interview (FGD):
    • 48. Moderator (interviewer) and 6-10 participants.
    • 49. Participants meet at a central location.
    • 50. Moderator introduces the topic and encourages the group members to discuss.
    • 51. Often used for concept and refinement . (E.g.. New name or attribute for a product)
    • 52. Videoconferenced focus group allows managers to send messages to moderator
    • 53. Quickly analyzed and less expensive, however small discussion group will rarely be representative sample.
  • Selection of exploratory research technique
    Pilot study
    19
    suresh
    …contd
    • Projective Techniques: Questioning that enable to “project” belief and feeling of a person onto a third party, which otherwise is not expressed. Objective is to discover an individual’s attitude, motivation.
    • 54. Word Association: Frequently used in testing potential brand names.
    • 55. Sentence Completion: Respondents are required to complete a number of partial statements. E.g.:
    High salary will help me purchasing ___________________
    Brand A is better than B because_____________________
  • 56. Selection of exploratory research technique
    Pilot study
    20
    suresh
    …contd
    • Third-Person Techniques:
    • 57. Respondents are asked why a third person (e.g. a neighbor) does what he does or thinks what he thinks about a brand, company or a concept. (Providing a mask is a basic idea)
    • 58. Thematic Apperception Test (TAT): Consist of pictures or cartoon in which the Research topic is centre of attention
  • Selection of exploratory research technique
    Pilot study
    21
    suresh
    …contd
    Respondent to tell what's happening in the picture and what the people might do next
  • 59. Selection of exploratory research technique
    Pilot study
    22
    suresh
    …contd
    Or respondent to construct a story looking at series of pictures with continuity
  • 60. Selection of exploratory research technique
    Pilot study
    23
    suresh
    …contd
    • Depth interview:
    • 61. Interview is extensive, unstructured and undisguised (not direct questions).
    • 62. Most of the questions are open ended
    • 63. Respondent is free to respond the way he/she likes
    • 64. Interpretation of such data is highly subjective
  • Selection of exploratory research technique
    Experience survey
    24
    suresh
    • Issues and ideas are discussed with those having experience in subject on which Research is being done.
    • 65. Interview is done with small no. of knowledgeable people.
    • 66. The purpose is to help formulate the problem and clarify the concept.
    • 67. Exploratory information from an Experience survey is not expected to be conclusive.
  • Selection of exploratory research technique
    Case study
    25
    suresh
    • Purpose is to obtain information from one or a few situation that are similar to researcher’s problem situation.
  • Selection of descriptive/
    causal research
    Survey
    26
    suresh
    Defined as a method of gathering primary data based on communication with
    representative sample. Most surveys are descriptive but they can be also be designed to
    provide causal explanation
    Ways to carry out a Survey:
    • Door-to-Door Personal Interview: Personal interview conducted at the respondents home or the place of business
    • 68. Mall Intercept Personal Interview: Personal interview conducted in shopping malls
    • 69. Telephone Interviews: Contacting respondents by telephone to gather responses to survey questions.
    • 70. Mail Survey: A self-administered questionnaire sent through the mail to respondent.
    • 71. Internet Survey: A self-administered questionnaire posted on a web site
  • Selection of descriptive/
    causal research
    Survey
    suresh
    Mall Intercept PI
    Mail Survey
    Door to Door PI
    Telephone Interview
    Interview Survey
    Slow
    Speed of data collection
    Instantaneous
    Fast
    Very Fast
    Moderate
    Moderate
    Varies
    Moderate to Low
    Good
    Respondent cooperation
    Excellent
    Varies
    Questionnaire length
    Moderate
    Moderate to long
    Moderate
    Long
    High
    High
    Low
    Average
    Possibility of respondent misunderstanding
    Low
    None
    None
    High
    Moderate
    High
    Degree of interviewer influence on ans.
    Lowest
    Low
    Moderate to high
    Low to moderate
    Highest
    Cost
    27
  • 72. Selection of descriptive/
    causal research
    Survey
    28
    suresh
    Classification of Survey on Temporal Basis
    Cross Sectional Studies
    Longitudinal Studies
    • Data collected at a single point in time.
    • 73. Various segments of population are sampled.
    • 74. Relationship among variables are investigated by cross tabulation (Profiling).
    • 75. Eg. Ad Hoc studies, Usage
    and Attitude (U & A)
    studies.
    • Respondents are questioned at different moments in time
    • 76. Similar group of people are expected to be in each sample.
    • 77. Done usually through a panel
    • 78. Eg. Consumer panel study,
    Retail panel study
  • 79. Selection of descriptive/
    causal research
    Observation
    29
    suresh
    Business Researchers can observe people, objects, events or other phenomena by
    assigning the task to human observer or by using machines designed for specific
    observation tasks.
  • 80. Selection of descriptive/
    causal research
    Observation
    30
    suresh
    Human behavior or action
    Selection of products from a shelf
    Verbal behavior
    Communication of an employee with subordinates and boss
    Expressive behavior
    Facial expression, tone of voice while seeing demo of a consumer durable
    Temporal patterns
    Time taken to complete a task
    Physical patterns
    Footfall recorded in a shopping mall on weekend
    Verbal and pectoral record
    Number of illustrations in a text book
  • 81. Selection of descriptive/
    causal research
    Observation
    31
    suresh
    • Mechanical Observation:
    • 82. Television Monitoring: Eg. ‘PeopleMeter’ used to obtain ratings of television program.
    • 83. Monitoring website traffic: Recording no. of people visiting a particular website
    • 84. Measuring physiological reactions: Eg:
    • 85. Eye tracking monitor: Measures unconscious eye movement, used in recording the pattern of a hoarding or print ad being noticed
    • 86. Voice Pitch analysis: Measures emotional reaction as reflected in physiological changes in persons voice
    • 87. Optical scanner and bar codes: Used in providing sales information for particular a product
  • Selection of sample design
    32
    suresh
    Sampling: The process of using a small number of items or part of a large population to
    make conclusion about the whole population.
    Sampling
    Probability
    Non Probability
    Technique in which units of sample are selected on the basis of personal judgment or convenience. Types:
    Technique in which every member of the population has a known, nonzero probability of selection. Types:
  • Selection of sample design
    Probability
    33
    suresh
    • Simple random: Each possible sample has an equal probability of being included in the sample. Each member of sample is assigned a number and sample unit is selected by random method.
    Eg. Random digit dialing for Telephone interviews or random selection of respondents from census data.
    • Systematic: Elements are selected from population at a uniform interval that is measured in time or order.
    Eg. Mall Intercept PI conducted every Wednesday in Bigbazaar or 2 houses skipped after every door to door interview.
  • 94. Selection of sample design
    Probability
    34
    suresh
    • Stratified: Population divided into relatively homogeneous group, called strata. From each stratum, a specified no. of elements corresponding to the proportion of that stratum in the population is selected by simple random sampling. Eg. Out of an entire population of 50,000 of an area, if people from age group 20-24 yrs are 10,000, then after a sample of, say 200 is achieved by simple random sampling, the number people between that age group will be more or less 40.
    • 95. Cluster: Population is divided into groups or cluster. Eg. Survey to be conducted in North and West.
    *In Stratified, each group has small variation within itself but wide variation between groups.
    There is considerable variation within each group but the groups are similar to each other.
  • 96. Selection of sample design
    Non Probability
    35
    suresh
    • Quota: Various subgroup in a population are represented by sample to the exact extent that the researcher desires. Eg. Out of an entire population of 50,000 of an area, if people from age group 20-24 yrs are 10,000, then
    a Quota of 40 people should be achieved in that age group if the sample size is selected as 200.
    Purpose is to ensure various subgroups in a population are represented
    by the sample. Quota sampling have a tendency to include people who are
    easily found within the Quota (unlike Stratified in which strata are formed
    and people are selected by simple random sampling)
  • 97. Selection of sample design
    Non Probability
    36
    suresh
    • Judgment/purposive : Experienced researcher selects the sample based on his/her judgment about some characteristics required of the sample member. Eg. For a telecom company study, the proportion of people to be studied for a sample of 1000 are:
    600 (60%) those who presently use company’s sim card
    250 (25%) those who have never used company’s sim card
    150 (15%) those who switched after using company’s sim card
    The above proportion of sample may be less than fully
    representative of population
  • 98. Selection of sample design
    Non Probability
    37
    suresh
    • Convenience : Refers to sampling by obtaining people who are most conveniently available. Eg. News reporters present reviews of a movie from people coming out of theatre, who are presumed to reflect public opinion
    • 99. Snowball : Sampling procedure in which initial respondents are selected by probability method and additional respondents are obtained from information provided by the initial respondents.
  • Types of question
    38
    suresh
    • Open-ended and Closed-ended :
    What do u like about Surf detergent:
    Cleaning power
    Fragrance
    Dissolve easily
    Any other (please specify)______________
    • Dichotomous Questions: Two alternatives given to choose
    Are you a user of Surf detergent?
    Yes
    No
  • 100. Types of question
    39
    suresh
    • Multiple Choice : Usually an extension of Dichotomous
    What do u like about Surf detergent:
    Cleaning power
    Fragrance
    Dissolve easily
    Any other (please specify)______________
    • Scaling questions (rating/ranking):
    Rating: Rate the following detergent brands on a scale of 1-10
  • 101. Types of question
    40
    suresh
    • Scaling questions (rating/ranking):
    Ranking: Rank the following brand on their ability to clean clothes: (1=best, 2=next best etc.)
  • 102. Scales used in questionnaire
    41
    suresh
    Scales
    Nominal
    Ordinal Scale
    Interval
    Ratio
    Variables used to compute statistical measures (avg, std deviation)
    • Eg.
    1.Rating given to attributes of products
    • Permissible operation:
    1. Mode
    2. Median
    3. Mean
    4. Std deviation
    • Test of Significance:
    1. z-test
    2. t-test
    3. F-test
    Number are only used as labels
    • Eg.
    1.Bank Account No.
    2.No. of element in each category
    • Permissible operation:
    1. Mode
    2. No. of element in each category
    • Test of Significance:
    Chi Square
    All arithmetic operations are possible on a ratios scale.
    • Eg.
    1.Age
    2. Income
    3. Weight
    • Permissible operation:
    1. Mode
    2. Median
    3. Mean
    4. Std deviation
    • Test of Significance:
    All
    Variable have meaningful orders
    • Eg.
    1.Ranking of products
    • Permissible operation:
    1. Mode
    2. Median
    3. Percentile
    • Test of Significance:
    1. Non parametric statistical test
    2. Sign test
  • 103. CASE
    42
    suresh
    Background
    Rockledge Corporation shows its presence in various sectors: Steel, Telecom, Banking, and
    Automobile. The company has decided to diversify its portfolio by getting in Consumer
    durable sector, beginning with manufacturing of TV.
    Need
    Entering in TV industry
  • 104. CASE
    43
    suresh
    Research Objective
    • Identifying preference and potential demand among various age and income group.
    • 105. Finding media sources used before buying TV
    • 106. Determining appropriate price levels for sizes of TV intended to launch: 21inches and 29 inches.
    • 107. Analyzing competition on various parameters
    • 108. Identifying aspiration for buying TV
  • CASE
    44
    suresh
    Research Design
    • Descriptive
    Sources of Data
    • Primary
  • CASE
    45
    suresh
    Data Collection
    • Research approach:
    • 109. Survey Research
    • 110. Research instrument:
    • 111. Questionnaire, to collect primary data
    • 112. Sampling plan:
    • 113. Sampling unit (Target Population):
    Male and Female
    Above 27 years
    Household income not lesser than 2,00,000 Rs.
    Owning TV at home
    Location: Mumbai, Delhi, Kolkata, Chennai and Bangalore
  • 114. CASE
    46
    suresh
    Data Collection
    …contd
    • Sampling plan:
    • 115. Sample size : 3500 (700 in each Metro)
    • 116. Age Group: 28 to 39 yrs - 1250
    40 to 51 yrs - 1250
    58 yrs and above - 1000
    • Income Group: 2,00,000 R s to 4,00,000 Rs - 750
    4,10,000 Rs to 6,00,000 Rs - 1250
    6,10,000 and above - 1500
  • 117. CASE
    47
    suresh
    Data Collection
    …contd
    • Sampling plan:
    • 118. Sampling procedure: Non Probability (Judgment/purposive)
    • 119. Contact Method: Door to door personal interview
  • CASE
    48
    suresh
    Data Analysis
    • Identifying potential demand among various age group.
    Using Chi Square concept, at 5% significance level, there is a significant difference
    among proportion and thus age group and purchase intention are dependent.
  • 120. CASE
    49
    suresh
    Data Analysis
    • Identifying potential demand among various income group.
    Using Chi Square concept, at 5% significance level, there is a significant difference
    among proportion and thus income group and purchase intention are dependent.
  • 121. CASE
    50
    suresh
    Data Analysis
    • Finding media sources used before buying TV
    Hoardings
    TV Advertisement
    Friends
    Relatives
    Colleagues
    Manufacturer / dealer brochure
    Newspaper
    Internet
    Dealer sales staff
  • 122. CASE
    51
    suresh
    Data Analysis
    • Determining appropriate price levels for 21inches
    TV is cheap but of acceptable
    quality
    TV is expensive but will possibly
    buy
  • 123. CASE
    52
    suresh
    Data Analysis
    • Analyzing competition on various parameters
    LG
    Sony
    Samsung
    Videocon
    Price
    Brand Image
    Latest Model
    Features
    Latest Technology
    Offers/Schemes
  • 124. CASE
    53
    suresh
    Data Analysis
    • Analyzing competition on various parameters….contd
    Rating given to Brands for attribute “Latest Model” :
  • 125. CASE
    54
    suresh
    Data Analysis
    • Analyzing competition on various parameters….contd
    Testing data by Anova at 5% significance level, there is a significant difference
    in rating given to brands for “Latest Model”.
    No significant difference shown on Further analysis of Sony and Samsung on
    mean rating given for “latest Technology” at 5% significance, using 2 sample
    hypothesis concept