3. Secondary Data, Online Information Databases, and Measurement.docx

3. Secondary Data, Online Information Databases, and
Measurement Scaling
1
Primary Scales of Measurement
7
3
8
Scale
Nominal Numbers
Assigned
to Runners
Ordinal Rank Order
of Winners
Interval Performance
Rating on a
0 to 10 Scale
Ratio Time to Finish, in
Seconds

Third
place
Second
place
First
place
Finish
Finish
8.2
9.1
9.6
15.2
14.1
13.4
Primary Scales of Measurement
Nominal Scale: The numbers serve only as labels or tags for
identifying and classifying objects.
Ordinal Scale: A ranking scale
Interval Scale: Numerically equal distances on the scale
represent equal values in the characteristic being measured.
Ratio Scale: Possesses all the properties of the nominal, ordinal,
and interval scales. It has an absolute zero point.

Illustration of Scales of Measurement
Nominal Ordinal
Ratio
Scale Scale
Scale
Preference
$ spent last No. Store
Rankings 3 months
1. Parisian
2. Macy’s
3. Kmart
4. Kohl’s
5. J.C. Penney
6. Neiman Marcus
7. Marshalls
8. Saks Fifth Avenue
9. Sears
10.Wal-Mart
Interval
Scale
Preference Ratings
1-7
A Classification of Scaling Techniques
Comparative Scaling Techniques

Paired Comparison Scaling
A respondent is presented with two objects and asked to select
one according to some criterion.
The data obtained are ordinal in nature.
Paired comparison scaling is the most widely-used comparative
scaling technique.
With n brands, [n(n - 1) /2] paired comparisons are required.
Under the assumption of transitivity, it is possible to convert
paired comparison data to a rank order.
Obtaining Shampoo Preferences
Using Paired Comparisons
Instructions: We are going to present you with ten pairs of
shampoo brands. For each pair, please indicate which one of the
two brands of shampoo you would prefer for personal use.
Recording Form:
aA 1 in a particular box means that the brand in that column
was preferred over the brand in the corresponding row. A 0
means that the row brand was preferred over the column brand.

bThe number of times a brand was preferred is obtained by
summing the 1s in each column.
Paired Comparison Selling
The most common method of taste testing is paired comparison.
The consumer is asked to sample two different products and
select the one with the most appealing taste. The test is done in
private and a minimum of 1,000 responses is considered an
adequate sample. A blind taste test for a soft drink, where
imagery, self-perception and brand reputation are very
important factors in the consumer’s purchasing decision, may
not be a good indicator of performance in the marketplace. The
introduction of New Coke illustrates this point. New Coke was
heavily favored in blind paired comparison taste tests, but its
introduction was less than successful, because image plays a
major role in the purchase of Coke.
A paired comparison
taste test
Preference for Toothpaste Brands
Using Rank Order Scaling
Instructions: Rank the various brands of toothpaste in order of
preference. Begin by picking out the one brand that you like
most and assign it a number 1. Then find the second most
preferred brand and assign it a number 2. Continue this
procedure until you have ranked all the brands of toothpaste in
order of preference. The least preferred brand should be
assigned a rank of 10.

No two brands should receive the same rank number.
The criterion of preference is entirely up to you. There is no
right or wrong answer. Just try to be consistent.
Comparative Scaling Techniques
Constant Sum Scaling
Respondents allocate a constant sum of units, such as 100 points
to attributes of a product to reflect their importance.
If an attribute is unimportant, the respondent assigns it zero
points.
If an attribute is twice as important as some other attribute, it
receives twice as many points.
The sum of all the points is 100. Hence, the name of the scale.
Importance of Bathing Soap Attributes
Using a Constant Sum Scale
Instructions
There are eight attributes of bathing soaps. Please allocate 100
points among the attributes so that your allocation reflects the
relative importance you attach to each attribute. The more
points an attribute receives, the more important the attribute is.
If an attribute is not at all important, assign it zero points. If an
attribute is twice as important as some other attribute, it should
receive twice as many points.

Form
Average Responses of Three Segments
Attribute Segment I Segment II Segment III
1. Mildness
2. Lather
3. Shrinkage
4. Price
5. Fragrance
6. Packaging
7. Moisturizing
8. Cleaning Power
Sum
8
2
4
2
4
17

3
9
7
53
17
9
9
0
19
7
5
9
5
3
20
13
60
15

100
100
100
Importance of Bathing Soap Attributes
Using a Constant Sum Scale
Noncomparative Scaling Techniques
Respondents evaluate only one object at a time.
Non-comparative techniques consist of continuous and itemized
rating scales.
A Classification of Scaling Techniques
Continuous Rating Scale
Respondents rate the objects by placing a mark at the
appropriate position on a line that runs from one extreme of the
criterion variable to the other.
The form of the continuous scale may vary considerably.
Very bad Neither good Very
good
nor bad
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - -
- - - - - Probably the best
0 10 20 30 40 50 60 70 80 90 100

A relatively new research tool, the perception analyzer,
provides continuous measurement of “gut reaction.” A group of
up to 400 respondents is presented with TV or radio spots or
advertising copy. The measuring device consists of a dial that
contains a 100-point range. Each participant is given a dial and
instructed to continuously record his or her reaction to the
material being tested.
As the respondents turn the dials, the information is fed to a
computer, which tabulates second-by-second response profiles.
As the results are recorded by the computer, they are
superimposed on a video screen, enabling the researcher to view
the respondents' scores immediately. The responses are also
stored in a permanent data file for use in further analysis. The
response scores can be broken down by categories, such as age,
income, sex, or product usage.
RATE: Rapid Analysis and Testing Environment
Itemized Rating Scales
The respondents are provided with a scale that has a number or
brief description associated with each category.
Respondents are required to select the specified category that
best describes the object being rated.
The commonly used itemized rating scales are the Likert,
semantic differential, and Stapel scales.
Likert Scale
The Likert scale requires the respondents to indicate a degree of
agreement or
disagreement with each of a series of statements about the
stimulus objects.
Strongly Disagree Neither Agree

Strongly
disagree agree nor agree
disagree
1. Sears sells high quality merchandise. 1 2 3 4
5
2. Sears has poor in-store service. 1 2 3 4 5
3. I like to shop at Sears. 1 2 3 4 5
The analysis can be conducted on an item-by-item basis (profile
analysis), or a total (summated) score can be calculated.
When arriving at a total score, the categories assigned to the
negative statements by the respondents should be scored by
reversing the scale.
Semantic Differential Scale
The semantic differential is a seven-point rating scale with end
points associated with bipolar labels that have semantic
meaning.
SEARS IS:
Powerful --:--:--:--:-X-:--:--: Weak
Unreliable --:--:--:--:--:-X-:--: Reliable
Modern --:--:--:--:--:--:-X-: Old-fashioned
The negative adjective or phrase sometimes appears at the left
side of the scale and sometimes at the right.
This controls the tendency of some respondents, particularly
those with very positive or very negative attitudes, to mark the
right- or left-hand sides without reading the labels of SA or SD.
Individual items on a semantic differential scale may be scored
on either a -3 to +3 or a 1 to 7 scale.

A Semantic Differential Scale for Measuring Self- Concepts,
Person Concepts, and Product Concepts
1) Rugged :---:---:---:---:---:---:---: Delicate
2) Excitable :---:---:---:---:---:---:---: Calm
3) Uncomfortable :---:---:---:---:---:---:---: Comfortable
4) Dominating :---:---:---:---:---:---:---: Submissive
5) Thrifty :---:---:---:---:---:---:---: Indulgent
6) Pleasant :---:---:---:---:---:---:---: Unpleasant
7) Contemporary :---:---:---:---:---:---:---: Obsolete
8) Organized :---:---:---:---:---:---:---: Unorganized
9) Rational :---:---:---:---:---:---:---: Emotional
10) Youthful :---:---:---:---:---:---:---: Mature
11) Formal :---:---:---:---:---:---:---: Informal
12) Orthodox :---:---:---:---:---:---:---: Liberal
13) Complex :---:---:---:---:---:---:---: Simple
14) Colorless :---:---:---:---:---:---:---: Colorful
15) Modest :---:---:---:---:---:---:---: Vain
Stapel Scale
The Stapel scale is a unipolar rating scale with ten categories
numbered from -5 to +5, without a neutral point (zero). This

scale is usually presented vertically.
When thinking about Data Mining Technologies, Inc. (DMT), do
you believe that the word "innovative" aptly describes or poorly
describes the company? On a scale of +5 to -5 with +5 being
"very good description of DMT" and -5 being "poor description
of DMT," how do you rank DMT according to the word
"innovative"?
(+5) Describes very well
(+4)
(+3)
(+2)
(+1)
Innovative
(-1)
(-2)
(-3)
(-4)
(-5) Poorly Describes
The data obtained by using a Stapel scale can be analyzed in the
same way as semantic differential data.
Stapel scale example
Scale
Basic
Characteristics
Examples

Advantages
Disadvantages
Continuous
Rating
Scale
Place a mark on a
continuous line
Reaction to
TV
commercials
Easy to construct
Scoring can be
cumbersome
unless
computerized
Itemized Rating Scales
Likert Scale
Degrees of
agreement on a 1
(strongly disagree)
to 5 (strongly agree)
scale

Measurement
of attitudes
Easy to construct,
administer, and
understand
More
time
-
consuming
Semantic
Differential
Seven
-
point scale
with bipolar labels
Brand,
product, and
company
images
Versatile
Controversy as
to whether the
data are interval
Stapel
Scale
Unipolar ten

-
point
scale,
-
5 to +5,
witho
ut a neutral
point (zero)
Measurement
of attitudes
and images
Easy to construct,
administer over
telephone
Confusing and
difficult to apply
Basic Noncomparative Scales
4. Questionnaire
Design
MBA644 Marketing Research
Dr. Sheng
Barry University
24

Questionnaire Definition
A questionnaire is a formalized set of questions for obtaining
information from respondents.
A questionnaire must translate the information needed into a set
of specific questions that the respondents can and will answer.
A questionnaire must uplift, motivate, and encourage the
respondent to become involved in the interview, to cooperate,
and to complete the interview.
A questionnaire should minimize response error.
Items and questions in a questionnaire
Design the Question to Overcome the Respondent’s Inability
and Unwillingness to Answer
Determine the Content of Individual Questions
Decide the Question Structure
Determine the Question Wording
Arrange the Questions in Proper Order

Reproduce the Questionnaire
Specify the Type of Interviewing Method
Identify the Form and Layout
Eliminate Bugs by Pre-testing
Questionnaire Design Process
Specify The Information Needed
Questionnaire Design
Mail Questionnaire
Please rank order the following department stores in order of
your preference to shop at these stores. Begin by picking out
the one store that you like most and assign it a number 1. Then
find the second most preferred department store and assign it a
number 2. Continue this procedure until you have ranked all
the stores in order of preference. The least preferred store
should be assigned a rank of 10. No two stores should receive
the same rank number.
Store Rank Order
1. Parisian ____________
2. Macy's ____________
.
Wal-Mart ____________
Electronic Questionnaire
This question for e-mail and Internet questionnaires will be very
similar to that for the mail questionnaire.
In all these methods, the questionnaire is self-administered by

the respondent.
Telephone Questionnaire
I will read to you the names of some department stores. Please
rate them in terms of your preference to shop at these stores.
Use a ten-point scale, where 1 denotes not so preferred and 10
denotes greatly preferred. Numbers between 1 and 10 reflect
intermediate degrees of preference. Again, please remember
that the higher the number, the greater the degree of preference.
Now, please tell me your preference to shop at .......(READ
ONE STORE AT A TIME)
Store Not So Greatly
Preferred
Preferred
1. Parisian 1 2 3 4 5 6 7 8 9
10
2. Macy's 1 2 3 4 5 6 7 8 9
10
.
.
.
10. Wal-Mart 1 2 3 4 5 6 7 8 9
10
Personal Questionnaire
(HAND DEPARTMENT STORE CARDS TO THE
RESPONDENT). Here is a set of department store names, each

written on a separate card. Please examine these cards
carefully. (GIVE RESPONDENT TIME). Now, please examine
these cards again and pull out that card which has the name of
the store you like the most, i.e., your most preferred store for
shopping. (RECORD THE STORE NAME AND KEEP THIS
CARD WITH YOU). Now, please examine the remaining nine
cards. Of these remaining nine stores, what is your most
preferred store for shopping? (REPEAT THIS PROCEDURE
SEQUENTIALLY UNTIL THE RESPONDENT HAS ONLY
ONE CARD LEFT)
Store Rank Name of the Store
1. 1 __________________
2. 2 __________________
.
10. 10 __________________

Individual Question Content
Sometimes, several questions are needed to obtain the required
information in an unambiguous manner. Consider the question:
“Do you think Coca-Cola is a tasty and refreshing soft
drink?” (Incorrect)
Such a question is called a double-barreled question, because
two or more questions are combined into one.To obtain the
required information, two distinct questions should be asked:
“Do you think Coca-Cola is a tasty soft drink?” and
“Do you think Coca-Cola is a refreshing soft drink?”
(Correct)
Overcoming Inability To Answer –
Is the Respondent Informed?

In situations where not all respondents are likely to be informed
about the topic of interest, filter questions that measure
familiarity and past experience should be asked before
questions about the topics themselves.
Filter items allow the elimination of unqualified respondents
during post-processing (e.g., respondents who lack minimum
information to respond correctly).
Overcoming Inability To Answer – Can the Respondent
Remember?
People's ability to recall the past is limited. The more current
and specific the question reference, the better. If recall is
necessary, the time frame should be as recent as possible and
not over six months unless the reference is to major events (ex.,
marriage, changing jobs, buying a car).
How many gallons of soft drinks did you
consume during the last four weeks? (Incorrect)
How often do you consume soft drinks in a
typical week? (Correct)
1. ___ Less than once a week
2. ___ 1 to 3 times per week
3. ___ 4 to 6 times per week
4. ___ 7 or more times per week
Overcoming Inability To Answer – Can the Respondent
Articulate?
Respondents may be unable to articulate certain types of
responses, e.g., describe the atmosphere of a department store.
Respondents should be given aids, such as pictures, maps, and
descriptions to help them articulate their responses.

Overcoming Unwillingness To Answer- Effort Required of the
Respondents
Most respondents are unwilling to devote a lot of effort to
provide information.
E.g.,
Please list all the departments from which you purchased
merchandise on your most recent shopping trip to a department
store. (Incorrect)
In the list that follows, please check all the departments from
which you purchased merchandise on your most recent shopping
trip to a department store.
1. Women's dresses ____
2. Men's apparel ____
3. Children's apparel ____
4. Cosmetics ____
.
16. Jewelry ____
17. Other (please specify) ____ (Correct)
Overcoming Unwillingness To Answer – more concerns
Context
Respondents are unwilling to respond to questions which they
consider to be inappropriate for the given context.
The researcher should manipulate the context so that the request
for information seems appropriate.
Legitimate Purpose
Explaining why the data are needed can make the request for the
information seem legitimate and increase the respondents'
willingness to answer.

Sensitive Information
Respondents are unwilling to disclose, at least accurately,
sensitive information because this may cause embarrassment or
threaten the respondent's prestige or self-image.
Overcoming Unwillingness To Answer – Increasing the
Willingness of Respondents
Place sensitive topics at the end of the questionnaire.
Preface the question with a statement that the behavior of
interest is common.
Ask the question using the third-person technique: phrase the
question as if it referred to other people.
Hide the question in a group of other questions which
respondents are willing to answer. The entire list of questions
can then be asked quickly.
Provide response categories rather than asking for specific
figures.
Use randomized techniques.

Choosing Question Structure
Unstructured questions are open-ended questions that
respondents answer in their own words.
What is your occupation?
Who is your favorite actor?
What do you think about people who shop at high-end
department stores?
Structured questions specify the set of response alternatives and
the response format. A structured question may be multiple-
choice, dichotomous, or a scale.

What are the pros and cons of using open-ended items?
Open-ended items are frequently used as complements rather
than alternatives to structured items. Open-ended items can
provide interpretations and variations in the meaning of
responses. For instance, in a ranking item about job satisfaction,
a structured response may show "income" to be the most
important satisfaction factor, but a follow-up open-ended item
may show some respondents mean "high income," whereas other
respondents mean "steady income." Open-ended items are not
necessarily more accurate, however. Ideally, one would use
both, with an open-ended probe question after every structured
item. This, however, would be prohibitive in time and fatigue
costs of the interview.
Multiple-Choice Questions
In multiple-choice questions, the researcher provides a choice
of answers and respondents are asked to select one or more of
the alternatives given.
Dichotomous Questions
A dichotomous question has only two response alternatives: yes
or no, agree or disagree, and so on.

Choosing Question Wording
Define the Issue
Define the issue in terms of who, what, when, where, why, and
way (the six Ws). Who, what, when, and where are particularly
important.
Which brand of shampoo do you use?
(Incorrect)
Which brand or brands of shampoo have you
personally used at home during the last month?
In case of more than one brand, please
list all the brands that apply. (Correct)
Use Ordinary Words
“Do you think the distribution of soft drinks is adequate?”
(Incorrect)
“Do you think soft drinks are readily available when you want
to buy them?” (Correct)
Use Unambiguous Words
In a typical month, how often do you shop in department
stores?
_____ Never
_____ Occasionally
_____ Sometimes
_____ Often
_____ Regularly
(Incorrect)

In a typical month, how often do you shop in department
stores?
_____ Less than once
_____ 1 or 2 times
_____ 3 or 4 times
_____ More than 4 times (Correct)
Avoid Leading or Biasing Questions
A leading question is one that clues the respondent to what the
answer should be, as in the following:
Do you think that patriotic Americans should buy imported
automobiles when that would put American labor out of work?
_____ Yes
_____ No
_____ Don't know
(Incorrect)
Do you think that Americans should buy imported automobiles?
_____ Yes
_____ No
_____ Don't know
(Correct)
Avoid Leading or Biasing Questions (c )
1. "You favor X, don't you?” (strong leading question)
2. "Do you favor an increase in the federal minimum wage to
$8.00?"
- The 2nd item is not as leading as the 1st item, but it is still

leading because it does not legitimize both affirmative and
negative responses. This may bias the survey toward too many
affirmative responses. A better method is to phrase such policy
options in the form, "Some people favor X, while other people
are opposed to X. What is your opinion?"
Choosing Question Wording –
Avoid Generalizations and Estimates
“What is the annual per capita expenditure on groceries in your
household?” (Incorrect)
“What is the monthly (or weekly) expenditure on groceries in
your household?”
and
“How many members are there in your household?”
(Correct)
Major Four “Do Not’s” of Questionnaire Wording
The question should not “lead” the respondent to a particular
answer. “Don’t you see any problem with using credit cards for
online purchases?”
The question should not have “loaded” wording or phrasing.
The question should not be “double-barreled.”
The question should not use words that overstate the
condition…do not use “dramatics.” “Would you buy sunglasses

that protect your eyes from harmful ultraviolet rays that cause
blindness?”
50
What is wrong with each question?
How do you feel about Sears?
When some gasoline or electric-powered product in your house
breaks, do you call the Sears repair service?
If the Sears repair service schedule was not convenient for you,
would you consider or not consider calling a competing repair
organization to fix the problem you have?
How much do you think you would have to pay to have Sears
fix something that needs to be repaired?
Shouldn’t concerned parents use car seats?
Should car seats be used for our loved ones?
Do good parents and responsible citizens use car seats?
Do you believe infant car seats can protect riders from being
maimed?
51
Individual Question Wording
“Do’s” for all questions
Keep it focused on a single topic
Keep it brief
Keep it grammatically simple

Keep it crystal clear
How do you feel about Sears?
When some gasoline or electric-powered product in your house
breaks, do you call the Sears repair service?
If the Sears repair service schedule was not convenient for you,
would you consider of not consider calling a competing repair
organization to fix the problem you have?
How much do you think you would have to pay to have Sears
fix something that needs to be repaired?
Please rate each aspect of Sears…
When you need it, do you call Sears repair service?
If you did not use Sears repair service, would you use another
repair service?
How much do you think Sears charges for a repair service call?
52
Do you believe infant car sears can protect riders from being
maimed?
Individual Question Wording
“Do not’s” for all questions
Don’t ask leading questions
Don’t ask loaded questions
Don’t ask double-barreled questions
Don’t use overstated questions
Do you think children’s car seats are useful?
Should car seats be used for our loved ones?
Shouldn’t concerned parents use car seats?

Do good parents and responsible citizens use car seats?
Do you think infant car seats are useful?
Do you think car seats are useful for family members?
Do you think parents who use car seats are responsible?
53

The introduction is called a “cover letter” if the introduction is
written to accompany a mail survey or online survey.
Five functions:
Identifies the surveyor/sponsor
Indicates the purpose of the survey
Explains how the respondent was selected
Requests for/provides incentive for participation
Determines if respondent is suitable
Determining the Order of Questions – cover letter
55
Determining the Order of Questions
Opening Questions
The opening questions should be interesting, simple, and non-
threatening.
Type of Information
As a general guideline, basic information should be obtained
first, followed by classification, and, finally, identification
information.
Difficult Questions
Difficult questions or questions which are sensitive,

embarrassing, complex, or dull, should be placed late in the
sequence.
Effect on Subsequent Questions
General questions should precede the specific questions (funnel
approach).
Q1: “What considerations are important to you in selecting
a department store?”
Q2: “In selecting a department store, how important is
convenience of location?”
(Correct)
Logical Order
The following guidelines should be followed for
branching questions:
The question being branched (the one to which the respondent is
being directed) should be placed as close as possible to the
question causing the branching.
The branching questions should be ordered so that the
respondents cannot anticipate what additional information will
be required.
Survey order
Introduction: discloses the sponsorship of a survey,
Begins with non-threatening items which arouse interest.
The first question should be clearly related to the announced
purposes of the survey
Then proceeds to attitude questions
often sequencing from general and less threatening items toward

more specific and more sensitive items.
Sensitive background items, particularly the income item, are
usually put at the end.
However, the more toward the end of the survey an item is, the
lower its response rate is apt to be. Items which measure the
dependent variable(s) or other research-critical items should not
be left to the end for this reason.
Form and Layout
Divide a questionnaire into several parts.
The questions in each part should be numbered, particularly
when branching questions are used.
The questionnaires should preferably be precoded.
The questionnaires themselves should be numbered serially.
Reproduction of the Questionnaire
The questionnaire should be reproduced on good-quality paper
and have a professional appearance.
Vertical response columns should be used for individual
questions.
Directions or instructions for individual questions should be
placed as close to the questions as possible.
Incentives: are offers to do something for the respondent to
increase the probability that the respondent will participate in
the survey.
Incentives may be monetary or non-monetary.
Anonymity: respondent assured name not identified
Confidentiality: respondent’s name is known by the researcher
but not divulged to a third party
Both are used as non-monetary incentives to increase

participation
Incentives
62

Pretesting
Pretesting refers to the testing of the questionnaire on a
small sample of respondents to identify and eliminate potential
problems.
A questionnaire should not be used in the field survey without
adequate pretesting.
All aspects of the questionnaire should be tested, including
question content, wording, sequence, form and layout, question
difficulty, and instructions.
The respondents for the pretest and for the actual survey should
be drawn from the same population.
Pretests are best done by personal interviews, even if the actual
survey is to be conducted by mail, telephone, or electronic
means, because interviewers can observe respondents' reactions
and attitudes.
Jhirmack
Finesse
Vidal
Sassoon
Head &
Shoulders

Pert
Jhirmack
0
0
1
0
Finesse
1
a
0
1
0
Vidal Sassoon
1
1
1
1

Head & Shoulders
0
0
0
0
Pert
1
1
0
1
Number of Times
Preferred
b
3
2
0
4
1

Jhirmack
Finesse
Vidal Sassoon
Head & Shoulders
Pert
Jhirmack
0
0
1
0
Finesse
1a
0
1
0
Vidal Sassoon
1
1
1
1
Head & Shoulders
0
0
0
0
Pert
1
1
0
1

Number of Times Preferredb
3
2
0
4
1
Pert
1
1
0
No. of Times Preferred b
3
2
0
b
DuPont Has Designs on Fashion
Case question for week 3:
1. What internal sources of secondary data can you identify
which would be helpful?
2. What published sources of secondary data can you identify
which would be helpful?
3. Assess the possible bias in the following sources of
secondary data.
(a)
An article interviewing designers on the new fashion trends in
Floorcovering News.

(b)
A DuPont sales history for 2000–2003 broken out by market
regions.
(c)
A chart of sales of residential carpet by region from the Census
of Retail Trade.
(d)
A list of bibliographic titles related to carpet fashion.
4. Match the criteria for selecting survey methods with the
survey method(s) offering the best results in this case.
(a)
Telephone Interview
(b)
CATI (computer aided telephone interview)
(c)
In-Home
(d)
Mall Intercept
(e)
CAPI (computer aided personal interview)
(f)

Mail Surveys
(g)
Mail Panels
(h)
E-mail Survey
(i)
Internet Survey
Use of Physical Stimuli
Quantity of Data
Obtaining Sensitive Information
Speed
Diversity of Questions
Sample Control
Response Rate

Cost
Flexibility of Data Collection
Control of Field Force
Social Desirability
Potential for Interviewer Bias
Control of Data Collection Environment
Perceived Anonymity of Respondent
1. DuPont Has Designs on Fashion
DuPont is a science company that delivers science-based
solutions in food and nutrition, health care, apparel; home and
construction, electronics, and transportation. The company was
founded in 1802, and operates in more than 70 countries as of
2003. DuPont’s core values for over 200 years have remained
constant: commitment to safety, health and the environment,
integrity and high ethical standards, and treating people with
fairness and respect.
DuPont Fibers Division was wondering: could carpets move
“uptown” into the fashion-oriented world typically associated
with clothing and furniture? The longtime market share leader

in the carpet industry, DuPont, was searching for new ways to
expand in a slow growth market. This market had been growing
at approximately 5% per annum over the 1990s and was
predicted to remain level or even decline in following years.
Revenues were up 5% in 2002 for DuPont’s fiber operations. In
addition, in the residential segment of the market, DuPont
needed a way to differentiate its nylon fiber carpets from
increased competition including the strong challenge of
Amoco's new polypropylene fiber carpets.
The carpet industry can be divided into three end-use segments:
commercial carpets for offices, hospitals, hotels, schools,
government facilities, and industrial sites; contract residential
carpets for large residential purposes like apartment complexes
or subdivisions; and residential carpets for homes. DuPont
estimated that 30% of carpet sales were from new residential
construction, and the other 70% was from replacement
purchases. In addition to different end-use segments, each
segment’s consumers were quite different from the other
segment’s consumers and each segment was serviced through
different channels. Commercial carpets were typically bought
by interior designers, architects or specifiers for their clients.
They had to be durable and, especially for some end-uses like
hotels, fashionable. Contract residential carpets were bought by
designers or by the contractor who typically focused on price
and durability. The residential segment differed from the other
two because the purchaser was also the end-user. Typically, the
lady of the house purchased carpeting from a retail outlet in
order to create the atmosphere she wanted in her home. In a
recent trade journal article, carpet industry experts stated that
retail stores are an important and effective component of the
retail environment.
Ninety-seven percent of all carpeting is produced from man-
made fibers derived from petroleum. The leading fiber in the
industry has been nylon which was invented by DuPont in the

1930s. Though the leader in the industry, DuPont was
challenged by other high quality nylon producers, like
Monsanto, Allied, and BASF, and a host of generic low-end
fiber producers. DuPont has 27% of the global nylon market and
58% of the nylon-6/6 market (the most advanced nylon fiber).
Fiber producers sell their output to carpet mills that then
produce the carpeting. Until the 1980s, competition in the
residential segment was based on the technical qualities of the
fibers, mill price of fiber, and reliability in shipping—none of
which directly affected the consumer. As such, the industry
tended to be very production oriented.
In the early 1980s, a giant breakthrough benefiting the
consumer emerged—stain resistant carpets. By applying a
chemical coating to the carpet fiber during production, the
carpet was protected from permanent staining arising from most
household soiling agents. Stains could be wiped off the carpet,
thus alleviating the concern many people had about entertaining
or “living” on their carpet. The four major fiber producers
quickly announced their versions of the stain resistant carpets in
an effort to remain competitive. Amoco also got into the game
when it announced a “new revolution in carpeting,” carpets
made from polypropylene (PP) fibers rather than nylon. As a
fiber, PP is inherently stain resistant. Thus it offered the best
overall protection from stains and it costs less to produce than
nylon. However, it did not as readily accept dyes as nylon, nor
was it as soft to the touch, thus making it less fashionable. As
such, PP initially had difficulty entering the residential
segment, but was well received by the commercial segment.
Approximately 24% of the total U.S. carpet fiber market is PP.
In the mid 1980s, technical advancements in dyeing allowed
Amoco to seriously compete in the residential segment. Their
objective was to lead the introduction of PP fibers to the
residential market. DuPont, desiring to be the unquestionable
leading fiber producer to the residential segment, relied more on

marketing than other companies. It seemed to sense the threat of
PP towards nylon fibers when it purchased Hercules fibers, a
large PP extruder. However, DuPont believed that nylon was
still the fiber for residential carpets and was bent on letting the
consumer cast the deciding vote.
DuPont believed it could use its well respected company name
to attract consumers. As such, DuPont created the first fiber-
producer backed carpets, DuPont Stainmaster carpets, which
carried a guarantee backed by DuPont on stain resistance, wear
and anti-static, and was branded as a DuPont carpet. The results
of the program were highly successful with DuPont creating
high brand recognition among consumers, the first time this had
ever been achieved by a fiber company, thus differentiating it
from the other fiber producers. DuPont took its Stainmaster
carpet business and converted it to a premium carpet brand by
increasing prices and reducing its distribution channels. DuPont
spent over $10 million on television advertising beginning in
1995. A survey conducted by Video Storyboard Tests, Inc. rated
the DuPont Stainmaster television commercial the fourth “most
popular television commercial.” Based on its success with
DuPont Stainmaster, the industry leader decided to forge new
ground.
For most of its history, the residential segment had typically
been the most blasé segment of the carpet market. Styles tended
to be simple, colors passive, and features uniform across all
competitors in the industry. Technically, industry players
maintained that differences did indeed exist, but in the words of
one industry analyst, “The differences were there in style and
fiber quality, but the housewife out shopping for carpet didn't
really know or care—she only liked what she could see and
feel.” As such, DuPont wondered if the styles and designs so
popular in the commercial segment could be transferred to the
residential segment. Was the average household willing to make
carpeting more than just a backdrop for other furnishings? If the

program were to be successful, it would mean: further
differentiation from other nylon fiber producers by creating a
new segment based on fashion and status for residential carpets;
increasing brand awareness among consumers for DuPont
(resulting in increased demand for DuPont fibers); bringing in a
new dimension to residential sales which would be difficult for
PP carpets to duplicate and would solidify DuPont as the leader
in the residential segment. It, however, would be an expensive
undertaking, involving a significant amount of publicity and
risking its reputation with its major fiber clients.
In addition, if DuPont were to proceed with the Designer
Collection, it would have to move fast. The largest trade show
in the industry—in which the companies announced their major
designs and programs for the coming year—was coming up in
three months. If DuPont wanted the Designer Collection to have
a maximal impact, it would have to have carpet samples and
promotional materials ready for distribution at the show, and
their marketing program in line to begin shortly thereafter. As
such, the go no-go decision would have to be made within six
weeks.
Overall, for the full year of 2000, consolidated sales totaled
$28.3 billion compared to $26.9 billion in 1999. However,
Dupont’s revenues slipped to $24.52 billion in 2002 because of
the overall slowdown in the U.S. economy. In 2003, DuPont
emphasized an integrated marketing campaign to promote its
Tactesse nylon carpet fiber. The fiber features two new deniers,
995 and 2,250, which DuPont engineers developed for added
flexibility in loop constructions. The promotion included
placing ads in several trade publications and a direct-mail piece
to more than 5,000 carpet retailers. The mailer contained
samples of carpet with Tactesse in loop and cutpile
configurations. They provided carpet retailers an opportunity to
test the fiber’s “You have to feel it to believe it” theme.
References

1.
Gregory Morris, “DuPont Canada Brings On Nylon–6/6
Expansion,” Chemical Week (April 29, 1998): 19.
2.
Marc Reisch, “New Texture in Carpet Fibers,” Chemical &
Engineering News 76(4) (January 26, 1998): 20–21.
3.
Andrew Wood, “DuPont Wants to Hitch Up Nylon’s
Performance,” Chemical Week (October 29, 1997): 42.
4. Elaine Gross, “DuPont Shows New Tactesse Nylon Fiber for
Carpets,” Textile World 150 (6) (June 2000): 6.
5. www.dupont.com
PAGE
937
DuPont Has Designs on Fashion
Case question for week 4:
1. What type of measurement scale is each of the following
scales?
(a) Nominal
(b) Ordinal
(c) Interval
(d) Ratio
A list of preferences of carpet styles rated on a 1 to 7
scale.
A ranking of preferences for carpet fiber.
1. DuPont
2. Monsanto

3. BASF
4. Allied
A list of preferences of carpet colors rated on a -3 to 3
scale.
A constant sum scale of importance attached to attributes
of a carpet.
2. What types of noncomparative scales can be used to gather
the information needed on psychographics (activity, interest,
and opinions), motivations, attitudes, and intentions to
purchase?
Notes: What is psychographics?
Demographic information is likely to be more useful than
psychographic data when simple, objective criteria are
sufficient in defining and distinguishing potential consumers.
Demographic data are more clearly defined and directly
measurable than psychographics and, therefore, make
segmentation on these basis more straightforward.
In contrast, psychographics are used to understand consumers’
motivations for purchasing and using products. These data
reflect people’s tendencies to sort themselves into groups on the
basis of the things they like to do, how they like to spend their
leisure time, and how they choose to spend their money. Many
of these characteristics are more complex and less overt than
demographics but often address the underlying motivations for
individuals’ behaviors.
Psychographic Information: Psychographics can be obtained
from an activities-interests-opinions (AIO) inventory. An AIO
inventory can be constructed from a list of statements related to
lifestyles. Respondents express their degree of agreement or
disagreement with the statement.
3. Are each of the following questions well formulated? If
not, what is the error?
(a) What is your favorite construction of carpet fibers?
Nylon BCF __________

Nylon Staple __________
Polypropylene BCF __________
Polypropylene Staple __________
Polyester __________
(b) Do you intend to buy a new carpet soon?
Yes __________
No __________
(c) Do you believe, as most Americans do, that U.S. citizens
should buy American made carpets?
Yes __________
No __________
(d) Will you buy designer carpets given that they cost slightly
more than traditional carpets?
Yes __________
No __________

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