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  • 3. CERTIFICATE I, Mrs. Lata Swaminathan, hereby certify that Khyati Sotta of NES Ratnam College of Arts, Science, And Commerce of TYBMS (Semester Vth) has completed her project on “Marketing Research And Special Emphasis On Primary Data Collection Techniques” in the academic year 2006-07.The information submitted is true and original to the best of my knowledge. Signature of project co-ordinator Signature of principal of college Mrs. LATA SWAMINATHAN Mrs. RINA SAHA. COLLEGE STAMP
  • 4. DECLARATION I, Khyati Sotta of NES Ratnam College of Arts, Science and Commerce Of TYBMS (Semester Vth), hereby declare that I have completed this project on “Marketing Research And Special Emphasis On Primary Data Collection Techniques” in the academic year 2006-07. The information submitted is true to the best of my knowledge. Signature of the Student. Ms KHYATI.N.SOTTA.
  • 5. ACKNOWLEDGEMENT Interdependence is a higher value than independence. This work is a synergistic product of many minds. I would like to thank few individuals who helped me immensely in completing this project successfully. They helped not only providing information but also by boosting my confidence and giving me moral support.  The students of different schools who were my respondents, helped in conducting personal interview for their kind cooperation and patience.  The BMS Co-ordinator & my project guide, Mrs. Lata Swaminathan, for being ever ready to give me the necessary guidance to go about the project.  And last but not the least, my family and friends without whose invaluable support this would not have been possible.
  • 6. INDEX
  • 7. EXECUTIVE SUMMARY This project is about Emphasis on Primary Data Collection Techniques in Marketing Research. Market Research activity is very essential activity to be conducted before marketing process. Market Research is an essential tool for decision-making process. It is being conducted with the help of primary data and secondary data. These data can be collected with the help of Internal and External Sources. Primary Data consists of different techniques like Survey method, Observation Experimental and Panel interview. All the techniques have different sub techniques beneath their heads. These techniques help in collecting information for Market Research Process. Primary Data collection technique is reliable due to its features of personal contact, accuracy and low chances outdated data. Secondary Data collection technique is not completely reliable as their high degree of data being outdated and the data must be updated in regular intervals. These project consists of different areas were market research is to be conducted as it has wide scope, so systematic process is to be followed for data collection. These project also consist the research and analysis of superfluous reading habits among the higher secondary students of English medium school.
  • 8. MARKETING The term ‘BUSINESS’ means a state of being bus .as human wants are of repetitive in Nature, the business activity had to be carried on endlessly. Need less to say, profit is definitely the motivating force for the continued existence of a business. Gradually business branched out into industry, commerce &trade. All these activities together include acquisition of wealth, converting it into desired forms &making the final product available for exchange for the satisfaction of human wants. Though split up into divisions, all the branches had one function in common –THE EXCHANGE FUNCTION. As times rolled b, this function is today names as “MARKETING”. Whatever be the nature & kind of business, its prime objective i.e. PROFIT MARKETING, could be achieved only through well thought out and well laid out marketing plans, marketing procedures & marketing strategies. Thus the certain markets was a purposeful invention of business people who had to achieve their GOAL i.e. PROFIT of course is the end result but is dependent on how best the unlimited and repetitive customer wants could be satisfied. Business therefore, was recognised, as an economic activity to exploit endless wants could be satisfied business to convert this opportunity into profit b institutionalizing the process through ‘MARKETS’. Therefore it is correct to say that BUSINESS MEN did not create b GOD, NATURE, or ECONOMIC FORCES but the businessmen. MEANING OF MARKETING In a most simple and non-technical language marketing ma be explained as a business function entrusted with the creation and satisfaction of customers to achieve the aims of business itself. Thus the term may be logically broken down as follows: -
  • 9. MARKETING AIMS AT PROFIT: 1. To realize profit, a sale has to be made. 2. To make the sale, a customer has to be created. 3. To retain the customer, he has to be satisfied. 4. To satisfy the customer, his needs have to be met. 5. To meet his needs, the product should confirm to the requirements of the customer. This leads to conclusion that the process of marketing begins with convincing of an idea of business itself or sometimes even earlier than that. This analysis exactly fits into Ducker’s [1954] comment “There is only one valid definition of business purpose: To create a customer”. We may now stretch this idea a little further &structure the term MARKETING as one that is directly concerned with demand: its recognition, anticipation, creation, stimulation, & finally satisfaction. The function of marketing is, therefore ‘EYES & EARS’ of the business. It is responsible for keeping the business in close contract with its environment and informed events that can influence its operation.
  • 10. ABOUT MARKETING RESEARCH In earlier times, we used to manage 4M’s.Man, Money, Machine, and Material. Very little emphasis was laid on data and information. In today’s highly competitive environment “INFORMATION” plays very vital and pivotal role. Further, following developments desire more reliance on “INFORMATION” its accuracy and timely availability of information. Local/National markets to globalization/internationalization. In international market the social values, norms, economic conditions, political consideration and government policies are different from region to region and therefore information plays very vital role to be effective in the market. Industrialization more and more people are shifting from villages to cities, urban and suburban states. Literacy levels have gone up. Customer is very ambitious. He wants alternatives and he is quality conscious. Availability of Computers, Electronics Gadgets and I.T Revolution call for strong and retrial for quick and correct information. This is era of Information Technology. There are now well-planned marketing information systems. It consists of people, equipments, and methods together and collects information analysis, evaluation, time frame, and correct results for the decision markets, top management and owners. DEFINITION OF MARKETING RESEARCH “Marketing Research is defined as systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services.” Marketing Research does not address to basic or fundamental questions, hence it is not pure or basic research on other hand, it tackles problems, which have immediate commercial potential, and thus it is applied research. It can also be said that marketing research is of both types problems solving and problem oriented. Marketing research is not restricted to a particular area of marketing but is applicable to all its phases and aspects.
  • 11. HISTORY OF MARKETING RESEARCH. The growth of marketing research is parallel to rise in marketing concept. In the early years, it was used to solve marketing problems and identify business opportunities. During 1920 to 1940, much attention was paid to distribution problems and 1940 onwards, it concentrated on identifying and satisfying consumer needs and wants. The growth or history of marketing research can be grouped into 5 stages as shown below: - 1.Pre 1905 : Application of research to marketing problems. 2.1905-1919: Organized approaches to market information. 3.1919-1930: Structuring the market research discipline. 4.1930-1945: Solidification & Refinement of marketing research. 5.1945-Onwards: Modern era of marketing research. 1. PRE-1905: i. 1879-N.W.Ayor and sons, a pioneer American Advertising Agency, conducted a market survey into grain production throughout the United States to develop an advertising schedule for its clients. This survey opened a new approach to marketing problem. ii. 1901-1904: - Walter Dill Scott, Director of the psychological Laboratory at North Western University, Chicago, convinced advertising men about the use of psychology principles in advertising. He wrote series of articles to make advertising more scientific. 2. 1905-1919: This period laid down the foundation and formal beginning of marketing research. Encouraged by Walter Dill Scott, work, people and institutions undertook work to develop and organize what is known as marketing research.
  • 12. In fact marketing research made major progress from 1910 onwards. A brief history of the developments made during 1905-1920 is given below. i. 1908: J George Frederick founded the ‘ Business Burse’, a market research survey organization. Frederick’s was the first organization in United States to maintain a group of interviewers in strategic spots in the country. This firm was engaged in providing consultancy on specific research projects and supplied annual marketing data maps. ii. 1912-Charles Coolidge Parlin, manager of the Curtis publishing is generally recognised as the founder of modern principles and practice of marketing research. Parlin solved the problem of acquiring systematic data. He produced survey of farm implement market and in the year 1912, published a comprehensive textile study and from this developed estimates of department stores’ sales in cities with population 54000 and above. During the period from 1905-1920, marketing research techniques were gradually systematized. The role of marketing research in relation to advertising was realized and noted positively. Several books on advertising written by Daniel Starch, Paul Nystom A.W Shaw etc, advocated the use of psychology, demographic science, behavioral studies etc to analyze business and advertising problems. 3. 1919-1930: This period is known as development period as during this time marketing research became a disciplined and practical subject. i. 1919: C.S. Duncan, professor, University Of Chicago published the “Commercial Research, an outline of working principles”. This text discussed the fundamental principles of marketing research. This is supposed to be the first book on commercial research. ii. 1927-1928: -George Gallup, pioneered public opinion survey across the world and conducted the first recorded study of reader interest- in newspapers. His techniques are still used in advertising research studies.
  • 13. iii. 1930- Dr.Danial Starch, founded his readership survey organization. He advocated use of a system called ‘ Starch Scores’ to indicate the relative recall of advertisements in journals. 4. 1930-1945: These periods witnessed the extension and strong acceptance of marketing research as a modern business technique. The following important developments took place during the period. i. 1937: - The American Marketing Association appointed a committee on marketing research techniques. ii. 1936: - The Britain, the British Broadcasting Corporation founded the Listener Research Department. iii. In Britain, the government social survey started its operations. 5. 1945 Onwards Thus period is known as a period of restructuring modifications of used techniques and interaction between different subjects of social science. The use of sampling, proper designing of research problem, testing hypothesis, use of psychology to understand cosumer behaviour etc. was introduced. There was an increasing and widespread use of psychology in business. The important developments of this period are listed below: i. A wide range of statistical techniques was introduced to analse and interprets data. ii. Psychological concepts like, Motivation Research were used to study consumer behavior. iii. Extensive use of Behavioral Science To study leadership, social class, family structure, group behavior, life-styles and cultural values. iv. The American Marketing Association founded its ‘Journal Of Marketing Research’ in 1964. In the past, social and commercial investigators using traditional methods like survey for data collection mainly used marketing research. Modern marketing
  • 14. research, on the other hand, uses sophisticated methods of data collection like telephone survey, questionnaire, panel interview etc. The improved quality of data has enabled the managers to take quick and better decisions. Today, reliable and latest data are made available to decision makers. Thus, marketing research has established itself as a supply line of information to all business firms.
  • 15. NEED FOR MARKETING RESEARCH. A firm will undertake marketing research when- (a) The available information is inadequate to solve the problem on hand, (b) To understand the problem in better way, (c) To explore any business opportunity In addition, the need to conduct marketing research is more felt due to socio, economic and technological changes in the marketing environment of the business. 1. NATURE OF MARKETS: The availability of better, faster and economical means of transport and communication facilities have brought countries and consumers more closer than before. Today, markets are no more local but have become global. Earlier, it was easy to forecast demand and produce goods accordingly. However in recent years the situation has changed completely. Manufacturers find it difficult to contact consumers, exercise control over distribution network, overcome competition and ensure survival. The problems and prospects created by modern markets can be met effectively with the help of marketing research. It can be used to collect data on likes and dislikes of consumers, market trends, demand and supply position, size and scope of market, nature and extent of competition. Etc. The data so collected can be used to formulate suitable marketing strategies and implement them successfully. 2. LARGE SCALE PRODUCTION: The use of advanced technology, computers etc., enables to produce uniform and standard quality of goods on a large scale. In reality a large-scale production creates problem of distribution. This is because large-scale production creates problem of distribution. This is because large-scale production needs distribution on a massive scale. Hence, there is a need to
  • 16. identify and locate new markets and prospects of expanding existing or new markets. It can also be used to identify new channels of distribution, export potentials etc. 3. INFORMATION GAP: There is information gap i.e. who is the producer and who are consumers because of centralised production and decentralized consumption. Middlemen like wholesalers and retailers bridge the gap. Procedures do get some information about consumers from distributors, agents and retailers but this data are not adequate to define a) Who the customer is? b) What are his expectations? c) What are his reactions and so on? Manufacturers need a system that can be used to narrow down the information gap. Marketing research can bridge the information gap and supply valuable data on consumer needs, understanding consumer needs, formulate marketing likes, dislikes, preferences and other issues relating to consumer behavior. 4. INCREASED COMPECTION: Healthy competition is good for the company and consumer. Company may adopt various tools like advertising, sales promotion, price concessions etc. to meet the challenges of competition in the market. Marketing research can be used a) to collect the information about the competitor’s areas of strength and weaknesses, b) extent and degree of competition, c) how to and when to make effective use of tools like packaging, pricing, advertising, sales promotion, after sales service etc, to overcome competition effectively. Marketing research can continuously monitor competition and supply data from time to time to meet the challenge of competition with confidence. 5. GROWTH OF SCIENCE AND TECHNOLOGY: The technology is generally referred to describe the technique of production. Due to technological advancements, it has been possible to produce quality goods at lower price on large scale. In order to make better use of technology, marketing research can be used to decide many technology related issues like:
  • 17. a) Selection of appropriate technology b) Technology up gradation. c) To collect information about the availability of latest technology and its usage. d) Training employees to learn and acquire new technology. e) To ensure better use of technology in all areas of business so as to improve efficiency. 6. CONSUMERISM: Consumerism is a movement of the consumers, by the consumers and for the consumers. It is a voluntary association of consumers formed to protect and promote consumer rights. Today, the consumers are well organized informed and aware about their rights and position in the market. The growth of consumerism has forced manufacturers to produce quality goods at reasonable price, attend to consumer grievance, provide after sales service, adhere to legal provisions etc. This has necessitated to collect more pertinent data on consumers. Marketing research is very helpful to orient marketing activities pro consumers and face the challenge of consumerism. 7. CHANGES IN CONSUMPTION PATTERN: The economic measures like globalization, privatization, liberalization, and disinvestments etc, initiated by the government has brought many far reaching changes in the working of Indian economy in general and markets in particular. This is visible from the: a) Increasing sale of consumer goods in rural markets. b) Increasing sale of cars, scooters, TVs, computers, mobile phones. c) Presence of many MNCs and their popular brands in Indian market. d) Increasing popularity of credit sale and Hire purchase scheme. e) Increasing rate of urbanization, purchasing power.
  • 18. The technical, economic and other factors have positive effect on Indian marketing environment including consumer behavior. Marketing research is very much useful to understand issues like: 1. Consumer behavior i.e., likes and dislikes, needs and preferences, spending habits. 2. Demographic data like location of consumers, rate of literacy, income level, nature of savings. 3. Attitude of consumers towards Indian brands vis-à-vis foreign brands. 4. Consumption habits. 5. Special needs of urban and rural consumers.
  • 19. NATURE OF MARKETING RESEARCH The term “MARKETING RESEARCH” has discouraged wider adoption of this management technique. To commercial management it may, perhaps have overtones of pure academic research, such as that conducted in a research laboratory under controlled conditions, divorced from reality and perceived to be of little direct help in making difficult business decisions. However, this is not so far marketing research while adopting a scientific approach and using some of the well tested methodologies of scientific investigations, is nearer to the function of field intelligence than of the research laboratory. Indeed, it would be more appropriate to consider marketing research as a form of applied research which, while imposing on its practioners the rigours and discipline of scientific enquiry, has a pragmatic purpose without this scientific orientation, marketing research would have little validity, it would degenerate into subjective assessment of market behavior. Marketing research is not an end in itself, it is a means to an end-the improvement of decision-making. These decisions may affect the nature and range of products, pricing policy, promotional activities and so on; infact, virtually every aspect of serving customers or clients well form the idea stage onwards. OBJECTIVES OF MARKETING RESEARCH. 1. To link the customer, customer and public, marketer through information used to identify and define marketing opportunities problem. 2. To generate, refine and evaluate marketing action. 3. Monitor marketing performance and improve understanding of a marketing process. 4. To find out potential of market. 5. To stretch on original conception of the product to the final delivery to the consumer.
  • 20. SCOPE AND AREAS OF MARKETING RESEARCH. SCOPE OF MARKETING RESEARCH It covers all areas of marketing mix including social, political, economic and government policy areas like: i Advertising and Sales promotion. ii Business Forecasting and Demand Forecasting. iii Product Selection And Development. iv Technology Selection. v Customer Behaviors. vi Channels Of Distribution. vii Pricing Policies And Strategies. viii Business Trends. ix SWOT x Competitors Behaviors and Analysis. xi Customer Satisfaction And Performance.
  • 21. AREAS OF MARKETING RESEARCH Marketing Research can be applied to enhance given decision areas. The application of Marketing Research to product research, market segmentation, Price research, Distribution research, advertising research, social research and financial research will be discussed and concluded be describing the role of marketing research in strategic planning. I. PRODUCT RESEARCH: Product research may be defined as “an exhaustive study of all those aspects involved in making and marketing a product”. It aims satisfying needs, wants, demands, of consumers in the best possible way, delivering to him the most optimum product. Thus it mainly entails gathering essential facts about the product. The scope of Product Research is as follows: Product innovation: It is a term used to describe the efforts of the firms to come out with an intrinsically new product that can be easily distinguished from the already existing ones. These products are a result of technological innovations for e.g.: products like mobile phones, microwave etc. Product Modification: This is making changes in an existing product. It is an easy way to meet competition and these days it is necessary to modify existing products to keep up the interest of the consumers. The changes made in the product could be in terms of its colour, design, package, adding textures, change of brand name and so on. Packaging Design and Improvement: This is also an integral part of product research. Some package plays an important role in the marketing of the product these days. Analyzing and Developing The Product Mix: A product mix is the set of all products and items that a particular seller offers for sale. For e.g.: HLL has a variety of product assortment to offer which range from Beverages, home and
  • 22. Personal care, Cosmetics, industrial, agricultural and others. And each product category again has varieties of brands. Managing Product Life Cycle: This part of the product research is useful to monitor the performance of the product through its various life cycle stages to ensure long life of the product. Developing Brand Image, Brand Personality, Brand Loyalty and Brand Equity: These are techniques of building powerful brands, which help the brand to move on in the competitive business field. Positioning and Re-positioning the Product: It is done in order that the product occupies a distinct and valued place in the target markets minds. Product Research would set out to position the product on its features in a manner that is desired or perceived b the customers. The marketer has to see in which stage of product lifecycle the product lies, so as to formulate the product research strategy. It could be formulate the product research strategy. It could be: - i. Formulating altogether new product. ii. Improvement in existing product, product line, brand extension by evaluating what product stands for. iii. Introducing new functional features in the product. iv. Test marketing a new product. v. Re-launching a declining product. II. PRICE RESEARCH The decision regarding ‘PRICE’ is always major for a corporate since the revenue earning capacity depends on the price of the product or service. During interaction with the customers on price aspects, it is always seen that respondent might favor high value or high price product but in reality when actual buying is to be undertaken b judging price rating on the scale of one to five (1-5) .1 means LOW and 5 means HIGH
  • 23. III. DISTRUBTION RESEARCH: Distribution management involves two activities to be researched-marketing channels and physical distribution. The research problem is how to optimize the total distribution cost b controlling quantity of warehouse and channel levels, including locations of retail outlet. Decision Area Research Techniques to be adopted Selecting suitable channel option from two alternatives i.e. direct and indirect distribution. Performance appraisal of two identical franchise stores or exclusive shows rooms. Encouraging channel members In-depth interviews. Focus group studies. Exploratory by case study. Cluster analysis to understand the profile of consumers in case of direct selling. Regression analysis to focus sales promotion of various territories. Experimental design like before after and with and without control groups. Qualitative research. Sr Sr 1. 2. 3. 1. 2. 3. 4. 5. 6. 7.
  • 24. IV. SALES PROMOTION RESEARCH: Sales Promotion is a short-term campaign to increase brand awareness, which necessarily has to increase sales volume, which is prime objective. The Sales promotional strategy is formulated looking at stage at the product life cycle. During introduction stage more attention is given on trial use b customers as a substitute product. During growth stage it is used to wipe out new competition from new entrants and also to convert non-users into users. At maturity stage, it is used to gain share of competitor’s brands. During decline stage, loyal customers are benefited at regular interval in form of various promotional schemes so that brand values are connected in their minds and the continue to stay with brand. Experimental Test, Sales Promotions are employed to stud the differences that occur as a result of introducing sales promotion. The success of sales promotion is evaluated against the number of consumers it as managed to get into buying the product and then stays back with the product. The switch over should not be temporary at least for the non-users of the product. The over all usage should cross earlier pre-promotion figure and reach new highs. Sales Promotion should also enhance brand equity. V. CONSUMER RESEARCH: Consumer research is an important and expanding branch of marketing research, used to study consumer behaviors through systematic gathering, recording, and analyzing of information about customers. Consumer research is a method employed to collect and analysis data about consumer behaviors i.e., study of topics like- how consumers take buying decisions, and decide on purchasing, acquiring, consuming and disposing of goods and services. Consumer research enables the producer to identify needs and wants of consumers, convert them into intangible product and satisfy those needs.
  • 25. The basic objective of consumer research is to understand purchase behaviors of consumer. A deep insight into consumer behaviors enables the firm to plan effective marketing strategies, identify target markets, decide promotional message, develop new product or modify existing product. VI. MOTIVATION RESEARCH. The term motivation research can be described as “ as systematic study of all those economic and social factors that motivates people to buy.” Motivation can be described as inner driving force that initiates human action. It includes all those needs, desires, wishes and unfulfilled needs which creates tension, drives the person to behave in a certain way so that the need is satisfied. Motivation research as a branch of consumer research is designed to study all those inner motivational factors that guide consumer behavior in the market. Motivation research tries to explain the “why” of consumer behavior, and is commonly used to study the relationship between inner motives and overt behavior. VI. MEDIA RESEARCH: Media is a channel through which the advertising message is communicated. Almost 80% of the advertising expenditure relates to time media bill hence it is highly essential for the advertiser ad agency to ensure that the right media mix is selected. Research in media deals with collection of all kinds of information which helps in media mix decisions. There are some importances of Media research as mention below: i. Media research is primarily undertaken to provide relevant information to enable the ad agency to take right media-mix decisions. ii. It ensures that money spent on media is not a waste. iii. It helps in booking of time and space as per the stipulations of various media.
  • 26. iv. Media research also brings forth new media options which thus providing variety for the media planner. However, there is organized media research in case of print, T.V and radio but not much of data is available with respect to cinema outdoor and Internet.
  • 27. CLASSIFICATION OF MARKETING RESEARCH. Marketing Research can be classified as follows: 1. MODE OF OPERATION: Collection of data by desk research or through field research. 2. TYPES OF RESEARCH: Different techniques would be required for consumer products and those for industrial products. 3. LOCATION OF MARKETS: Depending on nature of product, the location of the markets could be situated. For E.g.: Most of refineries in India are situated at costal areas hence refinery markets are situated at costal areas. Similarly depending on the objectives of the study and nature of proposed activity, decision on location could be taken. 4. TYPE OF CONTACT: Depending on the specific objective and to get sufficient data contact will have to be made with individual persons or institutions like govt agencies-DGTD, DGS etc. Users end users, OEM’s. Intermediaries- wholesalers, retailers etc.
  • 28. MARKETING RESEARCH PROCESS Marketing Research process begins with problem identification and ends with follow-up action. In between, the research design, determining data needs and sources, collection of data, organization of data and many more. It is also interesting to no tell that the researcher need to follow the sequence and any attempt to skip over an or two steps would adversely affect the outcome of research work. The steps involved in marketing research process are explained in detail below.
  • 29. STEPS IN MARKETING RESEARCH Problem Definition Research Design Determine Data Needs Determine Data Sources Designing Questionnaire Field Staff Selection Collections and Data Processing Data Analysis and Interpretation Problem Identification Project Reporting Follow up
  • 30. 1. Problem Identification: It is the first step in the research process. Problems are some type of difficulties having positive or negative effect. For eg, declining sales has an adverse effect, whereas business opportunities have positive impact, if explored and exploited. The existence of the problems is felt when discrepancy or difficulty is experienced in the normal working. Problems are identified when: i. There is a gap between stated objectives and actual performance. ii. Presence of some difficulties that are creating troubles or adverse effect on normal working. iii. Certain situations like competition in the market. Today, it is not an immediate problem, if not checked, would become a problem in future. iv. To identify and exploit favorable business opportunities. The marketing executives should be aware and alert to the presence of problems and opportunities. In this regard, marketing research can be used as ‘an early warning system’ to identify the presence of a problem/opportunity. 2. Problem Definition: Having identified the presence of the problem, the next step is to clearly define and formulate the research problem. Problem definition or formulation may be defined as “specifying the scope of the problem, the types of information needed, assumptions for the purpose of further investigation.” Problem definition is a process of understanding the problem clearly. A well-defined and understood problem offers following benefits to the researcher and company. i. Better Understanding: A well-defined problem gives a clear idea about the nature and seriousness of the problem. This helps to determine the future course of action.
  • 31. ii. Provides Right Direction: A poorly defined problem creates confusion and affects the research design adversely. A well-defined research problem provides a definite design adversely. A well-defined research work specifies the scope of the problem and makes research useful and economical. iii. Data Needs: A well-defined problem helps to decide data requirements, collect the relevant data and draw logical conclusions. iv. Research Limits: Problem formulation would specify the limitations of research, so that people would not expect impractical or magical results from research findings. v. Set Priorities: Problem formulation would help to set up priorities according to urgency of the problem. vi. Maintain Uniformity: It is essential to have a well-defined research problem to maintain uniformity and consensus. For example, a problem to maintain uniformity and consensus. For e.g. problem-affecting sales is likely to have an impact on other departments like production and purchase. Therefore, to have consensus among more people, problem formulation is necessary. 3. Research Design: Problem definition is followed by research design i.e. to design research project and identify sources of data for the study. A research design, like an architects plan guides the researcher in collection and processing of data.
  • 32. Research design is of three types –a) Exploratory research, b) Descriptive research and c) Casual research. These methods can be used to discover new ideas, form hypothesis, describe the present situation, and establish relationship between two variables and other purposes. In practice, all the 3 methods or a combination is employed after considering the data needs and research objective. 4. Determine Data Needs: Problem formulation and research design assist in the data collection effort. The information or data needs depend upon the type of research work. While determining the data requirements, the researcher should consider following issues: 1. Whether to use primary, secondary data or both? 2. The authenticity and accuracy of the available data. 3. The availability of reliable and valid data. 4. The cost and time required collecting the data. 5. Determine Data Sources: After deciding the type of the data required, the researcher should decide the sources of data. The sources may be internal and external. The major internal sources of primary data are company’s sales force and employees. Wholesalers, retailers and consumers are important external sources of primary data. Techniques like survey, observation and experiments are used to collect primary data. The important internal sources of secondary data are company’s own record of sales, purchase, library etc. Trade Association, Census Report, newspapers and magazines are the important external sources of secondary data. 6. Sampling Design:
  • 33. Sampling is a process of selecting a small group from the population for intensive study purpose. Majority of the marketing problems require an intensive field study to generate first hand information. Sampling is used to collect primary data with minimum cost and efforts. The marketing researcher has to decide issues like- 1. Whether to conduct census of sample survey. 2. How to select a sample that represents and reflects the qualities of its population? 3. What should be the size of sample? 4. Which method of sampling (i.e. profitability or non- profitability sampling methods) should be used to select a suitable sample? 7. Designing Questionnaire: It is a common practice in marketing research to use questionnaire for soliciting information from the respondents. Questionnaire is a list of questions arranged in an orderly manner. It is a basis for conducting personal interview, telephone or mail interview. While framing the questionnaire, it is essential to consider: 1. The type of information required. 2. The type of question to be asked. 3. The wording of questionnaire. 4. The order of questions, etc. 8. Field Staff Selection: Marketing research requires field investigators to collect secondary data and conduct interviews and field survey depends on the nature of research problem. For this purpose, qualified and competent people need to be selected. Further newly recruited staff should be given training to handle interviews. 9. Collections and Data Processing:
  • 34. Having finalized data needs and means to collect the same, the next step is to organize and conduct field survey. Simultaneously, secondary data are also collected from internal and external sources. The data are mostly collected in crude form and has to be processed. To process the data, it must be organized i.e. arranged in a systematic manner. For organizing data, techniques like classification, editing and tabulation are applied. 10. Data Analysis and Interpretation: Organization of data is followed by its analysis and interpretation. The purpose of analyzing data is to add meaning to the collected information and establish a relationship between the collected information and problem under study. Interpretation relates to evaluation of collected data in the light of research objectives. Interpretation is a subjective process and its success depends upon the quality of researcher to derive or add more meaning to already collect data. The process of interpretation begins with evaluating data and ends with drawing conclusions. 11. Project Reporting: After analysis and interpretation of data, the researcher will prepare the final research report. The report contains the findings of the study and suggestions if any. The report should be written in an objective and impersonal style. The language of the report should be too technical. After the report is ready, it is submitted to marketing executives for recommendation and implementation purpose. 12. Follow up: After careful consideration the findings and recommendation of the report are implemented in practice. The researcher should find out and evaluate the results of the reports findings through follow up action.
  • 35. RESEARCH DESIGN: DEFINITION: A research design is simply the framework or plan for a stud that is used as guide in collecting and analyzing the data. It is the blue print that is followed in completing a study. Research Design is only a statement of the essential elements of a stud, which provide the basic guidelines for the details of the project. It comprises a series of prior decisions that also are taken together and provide a master plan for executing the research project. THE RESEARCH DESIGN INCLUDES THE FOLLOWING: i. Statement of objective, the output of research. ii. Statement of data, inputs on the basis of which the solution is reached. iii. The analytical method to be followed. iv. Master plan should be comprehensive. However it should be confined to the minimum of details those are required for planning only. It is of four types: A. Exploratory. B. Conclusive C. Descriptive. D. Experimental. A. EXPLORATORY RESEARCH. 1. Search for secondary data. 2. Survey of experts or consultants or experience survey. 3. A case study analysis. B. CONCLUSIVE RESEARCH. 1. Cross-sectional study. 2. Longitudinal study Experimental Design.
  • 36. C. EXPLORATORY RESEARCH: Research is exploratory when one is seeking insight into the general nature of the problem, the possible alternatives and relevant variables that need to be considered. There is prior little knowledge on which to build. Methods are flexible, unstructured and qualitative. Researcher begins without firm preconceptions as build. Methods are flexible. Man a times it is used together with preliminary information that will help to define the problem and suggest hypothesis. Exploratory research hypothesis are rather range and ill defined. EXAMPLE: a) What new products should be developed or b) What product appeal will be effective in advertising or c) How can our service be improved? D. DESCRIPTIVE RESEARCH: It provides an accurate position of a particular aspect of market environment. The purpose of descriptive research is together qualified measurement of specific type of reactions. It is structured. Most of the data that we need are gathered in some form of direct or indirect questions and it will depend upon: - i. Nature of Research Questions. ii. Time Frame Of The Study. iii. Funds Available. iv. Kind Of Respondents. FOR EXAMPLE: Mode No. Of Respondents Cost (Rs) Time needed together details Questionnaire Man 40000 to 100000 1-2 methods.
  • 37. Establish clear, precise objectives and define hypothesis. Determine data/information required to meet objectives. Determine methods of collection and analysis of data. Collection of data/information. Results. Discussion of results. Comparison with other studies/results. Conclusion, Recommendations and areas of further study. MAJOR STAGES IN RESEARCH DESIGN Establish terms of reference construct hypothesis. Survey of past work or similar related studies.
  • 38. SOURCES OF DATA COLLECTION SOURCES OF DATA COLLECTION To conduct marketing research we require various data. Under the difficult steps in marketing research one of the step is collection of data. To conduct marketing research we require relevant and sufficient data. To find out the solutions for the marketing problems, data is the formulation. Data collection is an art but at the same time it is expensive and time consuming. Basically there are two types of data i.e. PRIMARY DATA and SECONDARY DATA Primary data means ‘the information collected at first hand i.e. at first experience. These data is not available in the readymade form but it is to be collected. The collection of these data is expensive and time consuming. For primary data we have external and internal sources. As the internal sources are concern they are company’s manager, salesman, staff, experts, etc. As external sources are concern we have customers and middlemen.’ Secondary data means ‘the data, which is available in published form. Collection of secondary data is not so expensive and time consuming compared to primary data. These data is available in ready form. But we cannot depend completely on secondary data because after some time it PRIMARY DATA SECONDARY DATA INTERNAL EXTERNAL INTERNAL EXTERNAL
  • 39. becomes outdated. Secondary data can be collected through internal and external sources i.e. internal sources and past records, reports, and files of the company. External sources are printed materials available from libraries, government offices etc.’ There are two sources of collecting data i.e. Internal and External Sources. Internal sources are within the company and external sources are outside the company. i.e. in the environment. METHODS OF COLLECTING: Survey Observation Experimental Panel Personal interview Telephone interview Mail survey Group interview In-depth interview Human and Mechanical Eye cameras Pupilometer Traffic counters Direct and In- direct Structure and Unstructured Disguised and Undisguised Controlled and Un-controlled Consumer panel Dealer Media Audience Approached based panel. METHODS OF COLLECTING PRIMARY DATA
  • 40. I. PRIMARY DATA: 1. SURVEYS PERSONAL INTERVIEW: In personal interview method the researcher asks each potential respondent specific question and records the responses. This method has the advantage of providing the greatest degree of control over the questions and responses to the interviewing process. The successful collection of data by a personal interview depends to a great degree of attitude and behavior of the interviewer. There are two persons involved “Interviewer” and “Interviewee or Respondent”. Interviewer is a person who takes the interview and Interviewee is the person who gives response or answers to the questions asked by the interviewee. This method involves face-to-face communication, with the help of questionnaire. Guidelines, which helps researcher in collecting meaningful and worthwhile information. i. Make an appointment for the interview, ii. Avoid the presence of third party, iii. Keep the interview “on track”, iv. Let the respondent do the talking. The interviewer should also use electronic devices such as tape recorders whenever possible. Recording an interview with the permission of the respondent adds another dimension to data collection. In addition to providing an exact record of the questions and answers, tape recorders reveal the pauses, inflections of the voice, and so on, which cannot be noted in paper. Visual aids such as photographs can be shown to the respondents during a personal interview to assist in getting precise answers. Advantages of Personal Interview Method:
  • 41. i. Few potential respondents will refuse to cooperate with a qualified and experienced interviewer. ii. An interviewer is trained to ask questions in a specific order. iii. An interviewer can explain questions to the respondent(s), if desired or needed. iv. An interviewer can help the respondent recall by furnishing information. v. An interviewer can, if needed, use the pictures, provide test samples, and so on. vi. An interviewer can observe the respondent’s reaction to questions, the environment in which he lives, and so on. Disadvantages Of Personal Interview: i. Improperly conducted interviews can seriously affect the quality of information obtained. ii. An interviewer, however well qualified and experienced, cannot question those who are not at home. iii. In an area of low population density, the cost of interviewing individual households will be high. iv. Questions of a personal nature cannot be answered. The advantage of personal interviewing overweighs the disadvantages. As a result, a researcher waiting to collect primary data will rely on personal interview method provided he has sufficient and qualified and experienced supervisory personnel and interviews. Although the cost of generating primary data by this method is high, the quality of information obtained normally will be better than that obtained using any other method. TELEPHONE INTERVIEW: Contacting potential respondents by telephone are another technique that can be used for generating primary data. This method helps to contact large number of individuals or households can be contacted in a relatively short time. The “prime time” for such calls is 7 p.m to 10 p.m, when a large no of potential respondents are “at home”. Information can be obtained rapidly from
  • 42. several hundred households can be contacted quickly results in a lower cost per telephone interview completed as compared with the personal interviewing method of data collection. The researcher who plans to collect primary data through telephone should restrict him to a relatively short questionnaire dealing with non- personal topics. A random sample of households can be selected either by using A. The traditional approach: Eg: Assume the sample size is 500 and the town or city has 20,000 by 500 and selects every 40th household for the telephone interview. Although this approach appears simple, the researcher faces a number of problems with regards to the representative ness of the sample with this method. These problems are: a) Not all households have telephones, b) A number may have unlisted telephone numbers, c) The telephone numbers of those who moved into a town or city after the directory was published will not be listed, d) The telephone numbers of those that moved within the community to a different prefix or exchange area will not be found in the directory and e) Households whose telephone numbers are not listed because of clerical errors and oversight cannot be contacted. B. The modern approach. : Problems related to the representative ness of the sample can be overcome by using the modern approach- the random digital dialing method of interviewing by telephone. With this method, the number of three-digit prefixes or exchanges serving non-toll telephones in the city id determined by consulting the local crises-cross directory. Each prefix is provided with 10,000 telephone hook-ups with four digit
  • 43. numbers can be generated with a computer or by selecting from the table of random numbers which can be called using the appropriate prefix and the four digit number. As a result, each household has an opportunity of being included in the telephone interview. It cannot elimate the problem related to households having no telephones. As a result the data gathered through telephone interview are limited to the middle and upper middle classes. The researcher may be aware about this fact. Advantages of Telephone Interview: i. The interviewer is in contact with respondent, and the respondent feels a personal involvement in answering questions, ii. As the respondent answers only one question at a time, he is not biased by subsequent questions, iii. Because questions can be asked in rapid succession, responses can be obtained faster, iv. No field work is involved, v. Because of number of households can be called within a relatively short time, the needed information can be obtained quickly, vi. The cost is less than for the personal interview method of collecting data, and vii. Individuals who could not be reached or who might not care to be interviewed personally can be contacted easily. Disadvantages of Telephone Interview: i. The relatively short questionnaire which must be used, limits the amount of data which can be gathered, ii. Only those households that have telephones can be called, iii. As the respondents is heard and not been, little can be observed about his characteristics and the environment in which he lives, iv. It is rather difficult to establish rapport between the interviewer and the respondent,
  • 44. v. Absence of face-to-face contact occasionally makes it difficult to get the cooperation of a potential respondent; and vi. A schedule must be devised so that the survey is not biased calls between 8 a. m and 5 p.m probably would reach housewives and retirees primarily. The advantage in cost and time outweigh the disadvantages. It is not usual for one interviewer to make between 10 to 15 calls per hour. This means that 80 and 120 telephone interviews could be completed in an eight- hour day. Because many interviews can be completed in a relatively short time and the cost of completed interview is lower than in other methods, telephone interviews are used to generate primary data. The telephone interviewing method to measure the effectiveness of television commercials. MAIL SURVEY: The mail survey method is another method for generating the primary data needed to successfully complete the research project. This method assumes that the respondent can read, write and answer open ended questions or check the appropriate box or answer when the questionnaire is highly structured and contains closed ended and multiple choice questions. The questionnaire used in the mail survey is known as self-administered questionnaire because they potential respondent reads the questions and answers them. Mail questionnaire should be simple as possible because most of the Indian Population is illiterate. To select the potential respondents for the questionnaire, the researcher should prepare or buy a mailing list- which serves as the sampling frame. Researchers can develop mailing list by selecting addresses from a local telephone directory and zip code directory. The cover letter explaining to the potential respondent the purpose of study and soliciting his cooperation in providing the needed information accompanies the questionnaire.
  • 45. The mail survey method will reach potential respondents dispersed geographically effectively and economically. The mail survey also may be the only way a researcher can contact physicians, executives, and other busy professionals. The rate of return of first mailing usually is low. A researcher normally waits about six to eight weeks for the return of completed questionnaires. Studies on rate of return have shown that about 90 percent of all returns will come within two weeks after survey instruments are mailed. The low response rate to the mail survey can be increased substantially with certain techniques. The techniques are: i. Providing advance information to the potential respondents: Advance information can be provided to potential respondents in several ways, i.e. giving telephone call to the respondents informing them that they will soon receive questionnaire by mail. They have to corporate by completing the questionnaire and mailing it back earliest at their convenience on the self addressed envelope enclosed with the questionnaire. ii. Offering Incentives: Incentives, money, tie-tags, stamps, for, collection, and other incentives have been used to induce potential respondents to complete and return mail questionnaires. Studies have shown that such incentives result in a substantial increase in the response rate. In selecting an item as an inducement for response, four factors should be remembered. a) Should increase the rate of response, b) Should increase the response rate without introducing respondent bias, c) Must not be too expensive, and d) Should be easy and inexpensive to mail.
  • 46. Of several possible incentives, money seems to be the mot common, effective inducement for increasing the response rate. iii. Using follow-up mailings: The purpose of follow up mailings is to reduce the number of individuals who do not respond to a mail survey and thus, to make the sample more representative. High percentage of completed questionnaires are received after the first mailing, a follow up mailing often will help the researcher or a firm to get more returns. The technique is used to induce higher rate of return. Subsequent mailings, that is second mailings are worthwhile, and third ones usually are sent. The potential respondents to whom questionnaires are mailed can be classified into three main categories: a) Those who eagerly answer everything they received by mail. b) Those not too eager to answer questionnaires, but who can be induced to answer by appealing to them with a reminder, and c) Those who do not want to be bothered by an interviewer or a mail survey and do not care to answer. Follow up mailings are needed to get completed questionnaires from potential respondents belonging to second criteria. It is practice to send a reminder postcard during the first week following the first mailing. The post card is sent to all the respondents in the sample to which the questionnaire was mailed. If the researcher cannot identify the respondents in the sample to which the questionnaire was mailed. If the researcher cannot identify the respondents who have returned the questionnaire, the second mailing should be confined only to those who have not returned completed questionnaires. The second mailing should be sent a few weeks later after the initial mailing, preferably three to four weeks. Such a follow-up mailing gives the researcher a better chance of reaching people who have been out of town or who have been particularly busy.
  • 47. GROUP INTERVIEW: The group interview is also called as focused group interview, can be defined as a method of collecting primary data in which number of individuals have common interest interact with each other. The group members must have a common interest and it should be relevant to the topic under discussion. Group interview is used by marketing researchers, with the objective to gain insight into the behavior and thinking of the group members. This method yields a variety of conclusions and actions. The group interview technique has innumerable uses in the development and marketing of many products and product lines. This method involves interviewing by two or more individuals at the same time. Free discussion is encouraged among group members and the interviewer. As it is flexible it can be adapted to meet the needs of any project. Eg Group interview can be a vehicle for introducing a new product. The size of the group involved in each discussion period is important. Experience has shown that the most workable size group includes about six to eight individuals. Groups smaller than that tend not to be self-generating, for each respondent feels that he is responsible for the success of the entire discussion. Groups larger than that are rather difficult to handle. The techniques can be employed by researchers to evaluate: i. New products or service concepts, ii. Brand names, iii. Packages, iv. Advertising or promotional strategies, and v. Attitudes. Advantages of Group Interviews i. Respondents comment freely and in detail, ii. Flexibility, iii. Visual aids can be used, iv. A group can be interviewed in the time required for one personal
  • 48. v. Physical responses are evident, and vi. Client can watch the interview unobserved. Disadvantages of Group Interviews i. The difficulty of getting a representative sample, ii. The possibility of the group being dominated by one individual, and iii. Respondents may answer to please the interviewer or because others in the group are answering. The limited group of six to eight individuals makes it difficult to obtain a sample that is fairly representative of the consumer group(s) which researcher is studying. Respondents in a group also may not be willing to express any deficiencies of knowledge and may talk simply because others are. Sometimes, theses are preferred by,” I don’t know about that,but”. Because the advantages of this technique outweigh the disadvantages, the group interview can be used to generate primary data in the exploratory phase of a project. Well-qualified and experienced interviews or discussion leaders who can successfully complete the interviewing process are necessary. IN-DEPTH INTERVIEW: The In-depth interview is a chiefly tool of clinical psychologists and psychiatrists. In this method marketing researchers, an individual is interviewed for one or two hours. The in- depth interview depends heavily upon retrospection and introspection, while the group interview depends upon the interaction of attitudes, intentions, beliefs, and opinions among group members. The technique involves exploring the thought processes of each respondent by encouraging the individual to express his thoughts freely The elements common to in-depth interviewing are:
  • 49. 1. The interviewing is done by a qualified individual experience in conducting in-depth interviews; 2. The questions are relevant to the subject manner; 3. The questions are asked in a specific sequence, 4. Recording devices are used, and 5. The interviewer normally records on paper the subtle reactions of the respondent. Many in-depth interviews are disguised or indirect tests. The individual being interviewed is given the impression that he is being interviewed is given the impression that he is being questioned for some reason other than real one. 2. OBSERVATION: The observation method is observing the respondent. It provides information on the current behavior. HUMAN AND MECHANICAL: Human or individual observers can collect data by observing individual shoppers or a group in a supermarket, departmental store, or elsewhere and record the behavior needed data. For eg Human observers can ascertain the areas from which shoppers come to the mall or shopping center by looking at the license plates of automobiles in a parking lot or entering it. Such an observation in studies involving shelf facings, packing designs, colour, and acceptance of the product. This helps human observers evaluate the actions recorded on the film and provides a permanent record and leads to more accurate assessment of behavior. Mechanical devices are being chosen because of accuracy, lower cost and for functional reasons. The most common devices utilized are eye cameras, pupiloscope and traffic counters. EYECAMERAS are common in advertising and package research. The camera records the eye movements while a consumer is looking at advertisements or packages and makes continuous record of eye
  • 50. fixation. It helps in determining which stimuli receive the most attention. THE PUPILOMETER is a mechanical device for measuring the changes in the size of pupils of the consumer’s eyes. A change in the pupil size, an involuntary action, reflects the consumer’s interest in whatever he is observing under normal condition. The instrument measures interest in or preference for various advertisements, slogans, packages and product designs. TRAFFIC COUNTES record the number of cars passing on highway or some other location within a specified time period. This information helps marketers make decisions about location of retailing outlets, warehouse, and other traffic-oriented problems. In advertising research this device helps to estimate the number of individuals exposed to billboards located on highways and other places. Such a record helps to determine working hours of employees, operating hours of the stores and provides some indication of what sales merchandise interested customers. DIRECT AND INDIRECT: When a direct observation is made, the observer can see the present behavior of the customers or the behavior at any given point in time. To observe past behavior, the observer must find some record of former behavior such as films, slides, and photographs, or “eyewitness” newspaper accounts. This is an indirect observation. Movie films are most common record of indirect observation for studying the past. STRUCTURED AND UNSTRUCTURED: An observer who uses a structured situation to observe consumer behavior knows in advance exactly what he wants to observe and record and will observe and record only that. For eg, an observer might like to study how a shopper tests the quality of bread he intends to buy. Some action, the squeeze a loaf of bread as a test for freshness before they buy. Highly structured situations involve much interference on the part of the observer;
  • 51. therefore a well-qualified and experienced observer is needed. When the observation is unstructured. When the observation is unstructured, no restriction is placed on what the observer notices. For eg: an observer in a supermarket or departmental stores might be in structured to mix with shoppers and observe anything, which he feels relevant. This type of observation is useful in exploratory phases of research project. DISGUISED AND UNDISGUISED: When an observer feels that his presence or awareness of his presence might affect consumer behaviors and thus affect the quality of the data collected, disguised observation is used. Two-way mirrors, one-way screens, and hidden cameras are some of the devices that make disguised observation is used. Two-way mirrors, one-way screens and hidden cameras are some of the devices that make disguised observation possible. The audimeter, used by A.C. Nielson Co. in rating TV programs, is an open or disguised method of observation because the selected panel members are aware that they are being observed. UNCONTROLLED AND CONTROLLED: When observation is made under natural or uncontrolled conditions, the observer does nothing to restrain or to encourage consumers to behave in a particular manner. When observation is made under controlled or artificial situations, consumers are exposed to selected stimuli and their behavior is studied. In general, the more natural or less controlled the situation the more likely that the observed behavior accurately reflects the behavior of an individual group. ADVANTAGES OF OBSERVATION METHOD: i. The researcher or observer gets first hand information he observes, ii. Data is collected under normal behavioral situations with little or no involvement with the individual being observed,
  • 52. iii. Observation of the behavior and recording what the observer iv. saw occurs simultaneously and v. Complete information is obtained about the behavior of that observed-information which an interviewer probably could not obtain by questioning the individual is involuntarily disclosed. DISADVANTAGES OF OBSERVATION METHOD: i. When a consumer becomes aware that he is being observed, this awareness can result in unnatural behavior; ii. It is impossible to observe behavioral patterns which occur sporadically, iii. Observation usually is confined to a short- time span, because observing a given behavioral pattern over an extended period of time is too costly, and iv. Only overt behavior can be observed. The observation method can be used to obtain data for meant purpose related to marketing decisions. Managers of supermarkets and departmental stores get information about the quality of service, sales effort of salespersons, efficiency at the checkout counter, and potential shoplifters from concealed recording devices. 3.EXPERIMENTAL: Surveys for gathering primary data can be classified into two broad categories, casual and descriptive. Casual surveys are useful when the researcher wants to establish a cause and effect relationship between two or more variables. Descriptive surveys provide quantitative aspects of a population. The casual survey method is employed in using experiments to generate primary data. The producer involved in conducting an experiments to generate primary data. The producer involved in conducting an experiment varies and depends upon: i. The complexity of the problem, ii. The purpose of the study, and
  • 53. iii. The subject matter or area of investigation. Experiments can be classified as field of laboratory experiments. Field experiments are conducted under natural conditions and laboratory experiments, under controlled conditions. For Example, the researcher can study the effect of product prices on sales by using two or three prices for two or three sub samples of the panel. The product for which sales are being tested can be sold at one of the two or three prices in two or three supermarkets or departmental stores in different parts of the states or U.S. The reaction of panel members to the various prices can be used in planning future pricing strategies. Experiments also can be conducted under natural conditions and have external validity, field experiments are preferred to laboratory experiments. The controls exercised by t he researcher while conducting the experiment diminish the external validity of laboratory experiments. However, laboratory experiments have high internal validity, which field experiments lack. The experimental method of generating primary data is not widely used in research because substantially greater amounts of money and time are involved. However, firms manufacturing pharmaceutical products and cat and dog foods do generate through experiments the data that substantiate their claims. 4.PANEL: A panel can be defined as a group of individuals, households, or firms that provide information to a firm about their behavior in the marketplace during a specified time. Such longitudinal data are useful in studying changes in marketing activities. Panel members represent a cross-section of the demographic, socioeconomic, or represent. Panels can be classified into various types on the basis of: i. Retention of panel members or longevity of individuals in the capacity of panel members,
  • 54. ii. Functional aspects of the panel, and iii. The manner in which the information is collected from panel members. Panel members are replaced only when they cease functioning, move out of town, quit because of sickness, or die. Members of rotating panels are systematically replaced at specified intervals of time. CONSUMER PANELS are made of randomly selected samples of households formed for the purpose of obtaining continuous information on household purchases and related consumer behavior. Households include in the National Consumer Panel provide information on a continuous basis about their purchases of a selected group of products. The information on groceries and other consumer goods bought over a period of one week normally recorded in dairies. DEALER PANELS, which normally are composed of middlemen or channel members, provide information about sales, level of inventory, and prices. Firms having a dealer panels determine total sales of various products in the market and the market share of different brands on the basis of information from panelists. The importance of the different kinds of stores for particular products and brands and information about aggregate final demand for a product and brand in various stores also can be derived from the information. It may be impossible to get information on brand switching because of the lack of consumer loyalty to a given brand. MEDIA AUDIENCE PANELS provide information about TV viewing and radio listening habits. The households are selected in accordance with the population density in various sections of the U.S. Typically; a full day’s information for as many as four TV sets in a household is automatically retrieved by Nielsen’s central office computer in Dunedin, Florida, in five seconds. APPROACH BASED PANEL: The third category of panel is based on the manner in which the data are collected, that is by
  • 55. i. Personal Interview. ii. Telephone Interview iii. Mail. In personal interview panel, members are approached personally by qualified, experienced interviews and the desired information is obtained through questioning. In telephone panel, information is obtained from members by telephonic conversation. In mail panel, information in obtains from the respondents by sending email and by post. Members of a mail panel provide information by completing a questionnaire and mailing it back to the sponsor. The response rate for a mail panel is always high, and questionnaires are complete and well answered. ADVANTAGES OF PANEL DATA COLLECTION METHOD i. Consumer panel help marketers follow the adoption of new products and provide information about market share. ii. Information can be obtained about the characteristics and the outlets in which they buy products. iii. Consumer panels provide the marketer with a unique opportunity to conduct field experiments and iv. The panel method costs less because no extensive field staff is involved. LIMITATIONS OF PANEL DATA COLLECTION METHOD i. Rewards may bias the information provided by panel members, and ii. Substation of new panel members to replace those who have left for various reasons can create some problems related to the responsiveness of the sample.
  • 56. II SECONDARY DATA: Secondary data are data that are developed for some purpose other than helping to solve the problem at hand. It can be gathered quickly and inexpensively, compared to primary data. Such are data already available and can be obtained much faster and at a fraction of the cost of collecting them again. As compared to primary data is secondary data cost less and can be collected in less time. Before secondary data can be used as the only source of information to help solve a marketing problem, they must be available, relevant, accurate, and sufficient. If one or more of these criteria are not met, primary data may have to be used. SECONDARY DATA Accounting records Sales force Reports. Miscellaneous Reports Internal experts Internal Sources Computerized Databases. Numeric Databases. Association Government Agencies. Other Published Sources. External Experts. External Sources
  • 57. QUESTIONNAIRE KEY TERMS USED IN QUESTIONNAIRE: A set of questions designed to generate the data necessary to accomplish the objectives of the research project, called as interview schedule or survey instrument. i. EDITING: Going through each question to ensure that skip patterns were followed and the required questions filled out. ii. SKIP PATTERN: Sequence, in which questions are asked, based on a respondents answer. iii. CODING: The process of grouping and assigning numeric codes to the various responses to a question. iv. SURVE OBJECTIVE: An outline of the decision-making information sought through the questionnaire. v. OPEN ENDED QUESTIONS: Questions to which the respondent replies in his or her own words. vi. CLOSE-ENDED QUESTIONS: Questions that require the respondent to choose from a list of answers. vii. DICHOTOMOUS QUESTIONS: Close ended question that ask the respondents to choose between two answers.
  • 58. viii. MULTIPLE CHOICE QUESTIONS: Close-ended questions that ask the respondent to choose among several answers, also called as Multichotomus questions. ix. SCALED RESPONSE QUESTIONS: Closed ended questions in which the response choices are designed to capture the intensity of the respondents feeling. x. SCREENERS: Questions used to identify appropriate respondents. xi. PRETESTS: A trial run of a Questionnaire. xii. SUPERVISORS INSTRUCTIONS: Written directors to the field service firm on how to conduct the survey. xiii. CALL RECORD SHEETS: Interviewers logos, listing the number of contacts and the results of each contract. xiv. FIELD MANAGEMENT COMPANIES: A firm that provides such support services as questionnaire formatting, screener writing and co ordination of data collection.
  • 59. OPEN ENDED QUESTIONNAIRE. CLOSE-ENDED QUESTIONNAIRE. Free Response Questions Probing Projective Techniques Completion Techniques Construction Techniques Association Techniques Dichotomous Ranking Questions Scales Check List Multiple Choices TYPES OF QUESTIONNAIRE
  • 60. TYPES OF QUESTIONNAIRE 1. OPEN ENDED QUESTIONNAIRE. In this type of questionnaire, the questions are structured but the answers or responses are unstructured. I.e. the respondent is expected to reply with whatever information and in whatever words are considered to be relevant. In simple words the respondent has complete freedom to answer the questions as per his will. The interviewer’s work is to record the response in the exact words, which is required. Open-ended responses can be further classified into following sub types: i. Free Response Questions: The respondent is given unlimited amount of freedom; this amount of freedom may differ from question to question. ii. Probing: Direct responses are asked. iii. Projective Techniques: In this method stimulus objectives are presented before the respondents. The respondent thinks about the objects and express it from these responses, the interviewer has to collect relevant information. Projective technique can be further classified into following types: Association Techniques in which word association is widely used. The respondent is presented with a service of words and is ask to respondent to each. The first word that comes in mind Eg what is the first word that comes to your mind when you hear to following? AIRLINE INDIAN TRAVEL
  • 61. Construction Techniques the respondents view some stimulus situation and create a story or draw a picture to explain the situation. Eg A child is required to view a drawing containing a child about to purchase chocolates and then asked to tell a story about what was happening and why. From the story researcher may be able to draw conclusions about his own eating habits and product preferences. Completion Techniques respondent is provided with incomplete sentences and are asked to complete it in any manner they select. Eg I think I dislike most of imported chocolates CLOSE-ENDED QUESTIONNAIRE. Under close-ended questions we have restricted the freedom of the respondents. Majority of time we provide him with two choices .Under this type of questionnaire both the questions as well as answers are structured. Under close ended we have various types: i. Dichotomous: It allows only two possible answers. Much more common is “Yes” or “No” variety. This questions are easy to ask and generally easy to answer. But generally speaking we should avoid “Yes or No” questions because they do not provide us much information but at the same time they are best way to collect the data. Eg: Do the supply of medicines is on time. Yes No ii. Ranking Questions: It involves the respondent to rank comparatively the items listed. The respondents has to give ranks for the questions asked:
  • 62. Eg: The dealers after sales services for car: Excellent V.Good Good Fair 01 02 03 04 iii. Check List: In this form of question the person checklist one or the more of response categories that are listed for answers. Eg i Cordless Telephones ii Touch Tone phones Ans i Are relatively short and easy to answer. ii Can be edited, tabulated, analysised easily. iii Provide specific answers for the respondent. iv. Multiple Choice: These questions list a number of answers and permit the subject to select the answer that best match their behavior. v. Scales: It is a popular type of questions under which the respondents are given a range of categories to express their opinions. Eg We like to over come throw the present MTNL System Must Probably Not Probably Not Must Not 01 02 03 04 05
  • 63. QUESTIONNAIRE DESIGN: QUESTIONNAIRE DESIGN is one of the important areas of research. It is most commonly used. The accuracy and relevancy of data collected depends upon the questionnaire. There are certain functions, which a questionnaire performs, and these are: -  Gives the respondent clear idea and understanding of the questions. Questions should not be vogue.  Motivate the respondents to give answers.  Stimulate the responses.  How respondents should answer, clear-cut instruments.  Information must be created confidential. There are two types of research instruments: Questions should be properly worded, simple, clear not vogue and unbiased. It can be close ended or open-ended. Sequence of questions is important. Lead questions should create interest. difficult and personal questions in the end. They should be logical in order.
  • 64. CASE STUDY
  • 65. The below case belongs to the Survey Method in Data Collection Techniques. The case says ban on sale of saccharin as it is proved to be harmful for health after conducting research through. Interview method is as questionnaire is prepared in the following case. A Canadian study linking bladder cancer in humans to saccharin consumption was very influential in the FDA’s decision to request a ban on sale of saccharin. The study involved a specific “case control” methodology that is fairly common in medical studies of this type. All reported no recurrent cases of primary bladder cancer in British Columbia, Nova Scotia, and Newfoundland served as one set of respondents. All participants were interviewed within six months of the diagnosis. For each of the 632 “cases” participating in the study, a control (another individual) was included that was matched on gender, age (within five years), and neighborhood. A questionnaire was developed that included questions on demographic variables, residential history, use of non-public water supplies, occupational history, consumption of beverages and meats containing preservatives, medical history, use of analgesics, and smoking. The questionnaires were administered in the respondent’s homes by trained interviews. An analysis of the resulting data on saccharine use and the incidence of bladder cancer revealed a statistically significant (P=0.1) relationship. The final paragraph of the report conducted: Our results suggest a casual relation between saccharin use and bladder cancer in males, especially when they are considered in conjunction with results in animals.
  • 66. The case given below belongs to experimental method of primary data collection technique. The case says that there must be specific no of children’s selected and to be taught to open the special package as per the instructions given by the demonstrator. 1. Use 200 children between the ages of 42 and 51 months inclusive, evenly distributed by age and sex, to test the ability of the special packaging to resist opening by children. The even age distribution shall be determined by having 20 children (plus or minus 10 percent) who’s nearest age is 42 months, 20whose nearest age is 43 months, 20 at 44 months, etc, up to and including 20 at 51 months of age. There should be no more than a 10 percent preponderance of either sex in each group. The children selected should be healthy and normal and should have no obvious physical or mental handicap. 2. The children shall be divided into groups of two each. The testing shall be done in a location that is familiar to the children; for example their customary nursery school or regular kindergarten. No child shall test more than two special packages, and each package shall be of different type. For each test, the paired children shall receive the same special package is being tested, they shall be presented to the paired children in random order, and this order shall be recorded. The special packaging, each test unit of which, if appropriate, has previously been opened and properly rescued by the tester, shall be given to each of the two children with a request for them open it. It child shall be allowed up to five minutes to open the special packaging for those children unable to open the special packaging after the e five minutes, a single visual demonstration without verbal explanations shall be given by the demonstrator. A second 5 minutes shall be allowed for opening the special packaging. If a child fails to use his teeth the special packaging during the first 5 minutes, the demonstrator shall instruct him before the start of second five minutes period to use his teeth if he wishes.
  • 67. The case given below belongs to observation method in primary data collection techniques. The respondents are being assessed on the basis of visual aids, message received from communication passed, design assessment, with the help of tachistoscope. 1. Screening a no of ads for Visual Impact: 20 to 30 ads are sequentially are presented to the viewer using a T-scope to control duration of exposure which is usually seven-tenths of a second. A second series of 20 to 30 ads is shown one by one. About half of the shoots are seen earlier; the other half is new. Respondents are told that some of the ads they will now see were seen before. As they view each ad, the respondents are asked a recognition question and a series of rating scales. Using two or more sample cells, recognition scores can be adjusted but subtracting false recognition percentages. In this way, ads with the strongest visual impact are identified. 2. Communication Tests: An ad is shown at 0.7 seconds, 3 seconds, and for as long as the viewer likes. Questions about what the ad says and shows follow each viewing. In this way, we can determine if an ad is quickly communicating what is intended. Results on two or more ads can be easily compared and norms for product identification, and other measures, established. 3. Design Assessment: A sign or a package is shown at 0.7 seconds, sometimes longer, via the T- Scope, and viewers are asked to describe what they saw. Next, they are told they will see an array of signs or packages, usually six to nine items in a three column two row or 3 x 3 grid. Using the T-Scope as a reaction timer, the respondents are told to release the button, blackening the screen when they see the item saw earlier. When that happens, they are shown a grid, and asked to tell where they saw the item. If they answer correctly, and only then their time is counted. We learn what they cue is. The test is
  • 68. usually carried out in black and white with one sample and in colour with another. This is done so the contributions of both colour and design can be measured. ADVANTAGES OF USING THE TACHISTOSCOPE i. Behavioral measures are more sensitive than attitudinal ones, more reliable, less subject to regional variations, and more stable with smaller samples. ii. Marketing managers are less likely to challenge such objective data, and they readily understand it. iii. The T-Scope itself is a more reliable, portable, flexible, and accurate device than others used in physiological measurements of advertising effects
  • 69. PRIMARY DATA COLLECTION METHOD OF DATA COLLECTION: - Questionnaire Method. OBJECTIVE: - To study the superfluous reading behavior of school children’s between the age group of 12-16 yrs. TARGET MARKET: - Higher Secondary Students of English Medium School. SAMPLE SIZE: - 10 Students. GEOGRAPHICAL AREA: - Mulund To Vidhyavihar.
  • 70. QUESTIONNAIRE DETAILS OF THE INTERVIEWEE: NAME: __________________________________________ AGE: __________________________________________ NAME OF SCHOOL: __________________________________________ STANDARD: __________________________________________ A LITTLE INFORMATION: A questionnaire is designed basically to collect the extra reading habits of the students. Q1. How do you study?  Self- Study.  Study with help of teacher. Q2. What do you prefer reading?  Comics.  Storybooks.  Magazines.  Newspapers.  Reference Books (G.K. Books, Encyclopedia).
  • 71.  None. Q3. Do you read books other than your study books?  Yes  No Q4. How many hours do you spend reading books? ____________________________________________________________ Q5. Which books do you read? Name them? ____________________________________________________________ Q6. Do you read daily?  Yes  No If No, than how many hours in a week/ month ____________________________________________________________ Q7. What attracts you in selection of particular type of book?  Appearance.  Pictures  Suspense& Thriller  Fairy Tales  Authors
  • 72.  Simple& Factual  Moral Q8. How do these books help you to improve?  Knowledge  Vocabulary  Imagination  Inspiration  Grasping Power Q9. From where do you source the books?  Relatives  Exchange from friends  School Library  Private Library  Others (specify) Q10. Which type of advertising would you prefer before the launch?  T.V.
  • 73.  Radio  E-mail  SMS  Others (specify)  None
  • 74. ANALYSIS OF RESEARCH: -` (the overall % exceeds 100 since the interviewees were allowed choose multiple options) Q1. How do you study? 20% 80% Self study Study with help of teacher Q2. What do you prefer reading? 42.85 85.71 42.85 28.57 57.14 28.57 0 20 40 60 80 100 Categories Percentage Comics. Storybooks. Magazines. Newspapers. Reference Books (G.K. Books, Encyclopedia). None.
  • 75. Q3. Do you read books other than your study books? 70% 30% Yes No Q6. Do you read daily? 29% 71% Yes No
  • 76. Q7. What attracts you in selection of particular type of book? 28.57 28.57 14.28 28.57 14.28 14.28 71.42 0 10 20 30 40 50 60 70 80 Categories Percentage Appearance. Pictures Suspense& Thriller Fairy Tales Authors Simple& Factual Moral Q8. How do these books help you to improve? 42.85 85.71 28.57 42.85 0 10 20 30 40 50 60 70 80 90 Categories Percentage Knowledge Vocabulary Imagination Inspiration Grasping Power
  • 77. Q9. From where do you source the books? 42.85 42.85 57.14 14.28 42.85 0 10 20 30 40 50 60 Categories Percentage Relatives Exchange from friends School Library Public Library Others (specify) Q10. Which type of advertising would you prefer before the launch? 14.28 14.28 42.86 28.58 0 5 10 15 20 25 30 35 40 45 50 Categories Percentage T.V. Radio E-mail SMS Others (specify) None
  • 78. FINDINGS: - 1). Out of 10 respondents it is observed that only 20% respondents don’t study with the help of teacher. 2). Out of 100%, 70% students have inculcated reading habits other than schoolbooks. 3). It is observed that maximum respondents prefer reading Story books and refer Reference books like Encyclopedia, Quiz books, General Knowledge Books etc. 4). It is observed that respondents read during their holidays and vacations. 5). Appearance is least important factor during selection of books. Books with good morale and authors are essential factors for selection of books. 6). It is observed that reading improves vocabulary, knowledge and helps in inspiring the respondents. Grasping power is not improved by reading. CONCLUSIONS OF RESEARCH: - After conducting research it can be concluded that 1). Out of 100% respondents, 70% respondents superfluous reading and in that 70%, 50% were girls. So it can be concluded that maximum no of girls have reading habits. 2). Appearance is slightest essential factor during selection books. 3). Maximum reading is being practiced on holidays or during vacations, as respondents don’t have school and have superfluous time for reading. 4). Advertisement is least essential even if asked newspaper advertisement is preferable.
  • 79. CONCLUSIONS Market Research can be conducted at anyplace, anytime and under any circumstances by selecting appropriate samples according to research objective decided by researcher. Primary Data Collection Techniques are essential tool while decision making. After talking to interviewees it makes evident that interviewee use in purchasing the books by the side of sourcing from their friends, relatives, libraries etc, despite the fact that purchasing will engage cost for budding their pastime still respondents desire purchasing. So authors should decide on appropriate phase in support toward the instigate (launch) books. All the organizations have to pursue market research inactivity to take into custody the market since it helps in congregation in order concerning the prospective customers as per their, tastes, likes, dislikes, needs, wants, traditions practiced, way of life lived etc.
  • 80. ANNEXURE
  • 81. BIBLOGRAPHY BOOKS: “Market Research” - Dilip Sarwate. “Marketing Research” – G. C. Beri. “Marketing Research” – V. V. Bellur. “Marketing Research” - Tull Hawkins. “Marketing Research” – Ralph Westfall. “Marketing Research” – Stantey. F. Stasch. “Marketing Research” – Rajendra Nargundkar. “Marketing Research” – Paul. E. Green, Donald. S. Tull & Gerald Albaum.