Selection of product mix, Sales resources allocation, analysis market research information, Sales forecasting
Production planning, control and analysis
Evaluation of machine performance
Quality control requirements
Inventory control measures
QT IN BUSINESS AND MANAGEMENT
iii) Finance, Accounting and Investment :
financial forecast, budget preparation, Cash flow analysis, Capital budgeting, Dividend and Portfolio management, Financial planning
labour turnover rate
wage rates and incentive plans
measure of GNP.
determination of business cycle.
comparison of market prices etc.
analysis of population
formulation of appropriate economic policies
RESEARCH AND DEVELOPMENT
development of new product lines
optimum use of resources
evaluation of existing products
02/01/12 QT IN BUSINESS AND MANAGEMENT
Understanding Research !
Literally, research (re-search) means “search again”.
Organized analysis of any subject based on “borrowed” materials, with suitable acknowledgement.
A systematic, careful inquiry or examination to discover new information about something, or establish new relationships between things, and to expand and verify existing knowledge for some specified purposes.
Objectives of Research
To find out answers to questions by applying systematic and scientific techniques.
To obtain familiarity of any phenomenon.
To determine association between variables.
To determine characteristics of an individual or group of activities and frequency of occurrence.
Features of a Good Research
Free from personal bias
Systematic (well planned research design)
Revealing of limitations
Application of ethical standards
Ten Steps in the Marketing Research Process
1. Define the Problem
2. Establish Research Objective
3. Determine Research Design
4. Identify Information Needs and Sources
5. Determine Methods of Data Collection
6. Design Instrument for Data Collection
7. Determine Sample Plan and Sample Size
8. Collect Data
9. Analyze Data
10. Prepare and Present Final Report
Step 1: Define the research problem I
The very first, and the most important step in research:
“ A problem well-defined is half solved”
Nature of the problem determines the type of study to conduct.
A research problem must be accurately and precisely defined, otherwise the task of designing a good research difficult.
Step 1: Define the research problem II
Get the right answer to the question:
“ What exactly does the firm want (or need) to know?”
The basic question to address is:
“ How to know that there is a problem?”
Problems may become apparent from:
deviation from the business plan, company records and reports, customer complaints and grievances, conversations with company employees, and observation of inappropriate behavior or conditions in the firm;
the success of the firm’s competitors, and published materials reporting issues such as, changes in market or environmental trends, new government regulations, anticipated changes in the economy, etc.)
Step 2: Establish Research Objectives
“ If you do not know what you are looking for, you won’t find it”
Research objectives are related to and determined by the problem definition. In establishing research objectives, the researcher must answer the following questions:
i) What specific information should the project provide?
ii) If more than one type of information will be developed from
the study, which is the most important? and finally,
iii) What are the priorities?
When specifying research objectives, development of hypotheses, might be very helpful.
When achieved, objectives provide the necessary information to solve the problem.
Step 3: Research Design
3. Research Design step involves the development of a research plan for carrying out the study.
There are a number of alternative research designs. The choice will largely depend on the research purpose.
Step 4: Specify the information required. Step 5: Design the method of collecting the needed information.
4. After defining the problem the researcher must determine what kind of information will best meet the research objectives.
5. Marketing research information may be collected in many ways:
via mail, telephone, fax, Internet, or personal interview.
using consumer panels, consisting of individuals.
Step 6: Design the questionnaire.
A primary responsibilities of a marketing researcher is to design the data collection instrument or questionnaire in a manner so that it is easily understood by the respondent and administered to them.
Step 7: Decide on the sampling design. Step 8: Manage and implement the data collection.
The researcher must determine the criteria that would enable a respondent to take part in a study.
The sampling design must result in the proper sample of respondents being selected. Different sampling designs are available to researchers.
The researcher must properly manage and oversee the data collection process.
If interview method is used, the researcher must train interviewers and develop procedures for controlling the quality of the interviewing.
Step 9:Analyze and interpret the results. Step 10: Communicate the findings and implications.
The ‘raw’ research data needs to be edited, tabulated and analyzed to find the results and to interpret them.
the method used may be manual or computer based.
The analysis plan follows from the research objective of the study.
Association and relationships of variables are identified and discussed in the light of the specific marketing problem.
The researcher has to submit a written report and often make an oral presentation to management or the client.
In conducting all the marketing research activities; the marketing researchers must adhere to ethical standards.
The Correlation Correlation measures the strength of a relationship between two variables.
Correlation determines whether values of one variable are related to another.
Independent and Dependent Variables
Independent variable: is a variable that can be controlled or manipulated.
Dependent variable: is a variable that cannot be controlled or manipulated. Its values are predicted from the independent variable.
Independent variable in this example is the number of hours studied.
The grade the student receives is a dependent variable.
The grade student receives depend upon the number of hours he or she will study.
Are these two variables related?
Student Hours studied % Grade A 6 82 B 2 63 C 1 57 D 5 88 E 3 68 F 2 75
The correlation coefficient computed from the sample data measures the strength and direction of a relationship between two variables.
The range of the correlation coefficient is.
- 1 to + 1 and is identified by r.
Positive and Negative Correlations
A positive relationship exists when both variables increase or decrease at the same time. (Weight and height).
A negative relationship exist when one variable increases and the other variable decreases or vice versa. (Strength and age).
The Correlation Positive Correlation 0 < R < 1 No Correlation R = 0 Negative Correlation -1 < R < 0
Range of correlation coefficient
In case of exact positive linear relationship the value of r is +1.
In case of a strong positive linear relationship, the value of r will be close to + 1.
Range of correlation coefficient
In case of exact negative linear relationship the value of r is –1.
In case of a strong negative linear relationship, the value of r will be close to – 1.
Range of correlation coefficient
In case of a weak relationship the value of r will be close to 0.
Computational Formula for Correlation
By substituting and rearranging, you obtain a substantial (and not very transparent) formula for
Cigarettes ( X ) Lung Capacity ( Y ) 0 45 5 42 10 33 15 31 20 29
The correlation coefficient suggests a strong positive relationship between age and blood pressure.
The conceptual formula for the correlation coefficient is a little daunting, but it looks like this:
Example for correlation coefficient Shyness X Speeches Y 0 8 2 10 3 4 6 6 9 1 10 3
Computational Example of r for the relationship between Shyness and Speeches (6 X 107) – 30 (32) [6 (230) – 30 2 ] [6 (226) – 32 2 ] r = -.797 Shyness X Speeches Y XY X 2 Y 2 0 8 0 0 64 2 10 20 4 100 3 4 12 9 16 6 6 36 36 36 9 1 9 81 1 10 3 30 100 9 30 32 107 230 226
Alternative Formula for the Correlation Coefficient
Sometimes it is desirable to know the relationship between two variables with the effects of a third variable held constant.
E.g: Both intelligence and number of hours worked are correlated with exam marks, and further that intelligence and number of hours worked are also correlated.
Partial correlation is the correlation of two variables while controlling for a third or more other variables.
Partial correlation coefficient is a measure of the linear association between two variables after adjusting for the linear effect of a group of other variables.
Partial correlation analysis is important when studying relationship in linear form between more than two variables
It measures the strength of a linear relationship between two variables, while controlling the effect of other variables.
For example r 12.34 is the correlation of variables 1 and 2, controlling for variables 3 and 4.
If partial correlation r 12.34 is equal to uncontrolled correlation r 12 , it implies that the control variables have no effect on the relationship between variables 1 and 2..
Types of Partial correlation
If the number of other variables is equal to 1, the partial correlation coefficient is called the first order coefficient.
If the number of other variables is equal to 2, the partial correlation coefficient is called the second order coefficient, and so on.
Types of Partial correlation
A. Calling exam marks (1), intelligence (2) and hours worked (3), and given r12 = .50, and r13=.40, and r23 of .40
work out the value of r12.3.
Given three variables (1) prognosis in terms of weeks to recover, (2) an anxiety questionnaire, (3) a physiological measure, and r12= .40; r13= .30, and r23= .80, what is the correlation of the physiological measure with prognosis with the anxiety questionnaire results partialled out from both variables?
Partial correlation of (1) (actual sale price ÷ $1000) with (2) (living space), controlling for (3) (current taxes) and (4) (number of rooms)