CHAPTER 4

RESEARCH METHODOLOGY

INTRODUCTION
According to Johan West, Research is a systematic activity directed towards the
discovery and development of an organized body of knowledge.

Curiosity and desire for searching new dimensions of the facts are the human nature.
Doing different things and doing things differently are related with the finding new
knowledge area and finding new ways of the existing processes. Research demands
systematic and scientific way of giving thoughts to an area of knowledge. Research
requires following proper methods, methodology, techniques, tools, approaches, and
design. Research begins with identification of a problem. It includes detailed
investigation into the facts of the problem or issue, analyze data, and come to the
conclusion. But research process does not end there. Research is a continuous process.
One piece of the research thrusts the other researchers to investigate further into the
same or similar issue. One research opens the avenues for the other problems to
research further. Understanding research methods helps in solving decision based
problems. However, research is not done arbitrarily. Research must be done
scientifically. Methodology tells us which methods, techniques, or tests are applicable
in certain situations. Research methodology also includes reasons and logic behind
how and why every step of the research process is followed. Research is cousin of
scientific thinking/method.

According to Karl Pearson, The scientific method is one and same in the branches
(of science) and that method is the method of all logically trained minds the unity
of all sciences consists alone in its methods, not its material; the man who classifies
facts of any kind whatever, who sees their mutual relation and describes their
sequences, is applying the Scientific Method and is a man of science.1 Bellenger et
1.

Pearson Karl, The Grammar of Science, Part I, p 1012.

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al. say that a good research is systematic, logical, empirical, and replicable. All these
criteria should be checked while following steps such as defining research problem or
issue, undergoing literature, selecting research design and sample design, collecting,
analyzing and interpreting data, and presenting report or thesis. Methodology tells us
how to thinks about nature of the problem or issue and its solution. Induction and
deduction process also become helpful in this reasoning process. It helps the
researchers to use concepts, constructs, definitions etc. derived from the research
problem or issue. Variables and hypotheses help to build models and to develop
theories as a part of the research results. Objectives, motivations, and approaches of
the research are in the base for research methodology. It is always advisable to
understand and then follow prescribed steps and process of planning and conducting
research to avoid errors in the research conducted.

Following is the methodology followed in this research work:

4.1.

RESEARCH OBJECTIVES:

4.1.1. To know the awareness about Permission Marketing and its related concepts
among people.
4.1.2. To measure customers preferences of using marketing communications
tools with permission marketing applied.
4.1.3. To judge the applicability of permission marketing among all the Integrated
Marketing Communication tools.
4.1.4. To find out whether customers take particular actions against marketing
companies for sending unwanted communication messages.
4.1.5. To know what difficulties may come across while implementing permission
marketing in India.

4.2.

RESEARCH DESIGN:
Research design constitutes the blueprint for the collection, measurement, and
analysis of data1

Phillips Bernard, Social Research Strategy and Tactics, Macmillan Publishing, 2nd ed, 1971, p 93.

59

A research design expresses both the structure of the research problem and the
plan of investigation used to obtain empirical evidence on relations of the
problem.1

Research design is a framework for the research. There are two types of major
research designs: exploratory and formal. Malhotra classifies it as exploratory and
conclusive also as presented below:2
Figure 7

Classifications of Research Design

(Source: Malhotra Naresh, Marketing Research, Pearson Education, 5th ed, 2007, p 109.)

Conclusive research is more structured compared to exploratory research. Exploratory

research does not involve testing hypotheses. It is not as structured as conclusive
research. Conclusive research helps in decision making. It is used with large samples
and there is a scope of quantitative analysis of data. It is further classified into
descriptive research and causal research. Questions such as who, what, when, where,
how etc. are addressed in descriptive research. Description of characteristics is major
focus in descriptive research. While determining cause and effect relationship is major
focus in causal research. Descriptive research is further classified as longitudinal
design and cross-sectional design. In longitudinal design, same sample is measured
repeatedly. The study is conducted for longer period of time. While in cross-sectional
1

Kerlinger Fred, Foundations of Behavioral Research, Harcourt College publishers, 3rd ed, p 279.
Malhotra Naresh, Marketing Research: An Applied Orientation, Pearson Education, 5th ed, 2007, p
109.
2

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design, study is conducted only once, without repetition. It is further classified as

single cross-sectional design and multiple cross-sectional design. When data are
collected from one sample and only once, it is known as single-cross-sectional design
while when data are collected from more than one sample and only once, it is known
as multiple-cross-sectional design. Descriptive single cross-sectional design is used in
this research.

4.3.

SAMPLING DESIGN:

There are two types of sampling design: probability sampling design and non
probability sampling design. Both types of designs have restricted or unrestricted
element selection. When each sample element is selected individually and directly
from the population, they are known as unrestricted samples. In probability sampling,
Simple Random sampling is unrestricted and in non probability sampling design,
convenience sampling is unrestricted sampling. Random selection principle, where
each population element has a known non-zero chance of selection, is used in
probability sampling. While in non probability sampling design, each population
element does not have a known nonzero chance of selection and researchers own
judgment is used. In this research Convenience sampling is used.

4.3.1. Population:
Some elements of the population are selected to conclude and apply
result to the population. Population in this research is a set of
customers receiving marketing communications such as recorded calls,
live calls, SMS (text messages), spam/junk, and catalogs/brochures.

4.3.2.

Extent: Gujarat State (Ahmedabad, Anand, Vadodara, Jamnagar,

Rajkot, and Surat city)

4.3.3.

Sampling Frame:
For the given research customers at point of purchase like banks, retail
stores, telecom companys outlets and households receiving personal
selling communication for consumer durables and financial products

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have been selected. Sampling frame is the list of elements from where
the sample is to be selected.

4.3.4.

Sampling Unit:
A set of residents of Ahmedabad, Anand, Vadodara, Jamnagar, Rajkot,
and Surat city who are receiving marketing communications such as
recorded calls, live calls, SMS, spam/junk, and catalogs/brochures.

4.3.5.

Sampling Method:
Convenience sampling as a part of non-probability sampling methods
has been used for selecting the sample.

4.3.6.

4.4.

Sample Size: 462

DATA COLLECTION METHOD:

4.4.1. Primary data source:
Primary data source is data collected through Survey method.
Questionnaire with non-disguised structured questionnaire with Likerttype, dichotomous, Multiple Choice, and open-ended questions is used.

4.4.2. Secondary data:

Secondary

Data

source:

Books,

Journals,

Published

Reports,

Newspapers, Magazines, other library and electronic data.

4.5.

Variables

Following variables are selected and analyzed with reference to customers

awareness, perceptions, and preferences of permission marketing.

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Table 6 List of Variables used in the research

Sr. No

Variables

Age of the Respondents

Awareness about CDRC office

Awareness about Consumer Dispute Redress Commission

Awareness about Consumer Protection Act

Awareness about CPA contact details

Awareness about Do Not Call Registry

Awareness about Permission Marketing

City of the Respondents

Disturbance Rank given to Brochures/Catalogs

10

Disturbance Rank given to Live Calls

11

Disturbance Rank given to Recorded Calls

12

Disturbance Rank given to SMS

13

Disturbance Rank given to Spam/Junk

14

Disturbed by Catalogs/Brochures

15

Disturbed by SMS

16

Disturbed by Spam/Junk emails

17

Disturbed by the Calls

18

Education of the Respondents

19

Expectations from the Government

20

Finding Calls interesting

21

Finding Calls useful

22

Finding Catalogs/Brochures interesting

23

Finding Catalogs/Brochures useful

24

Finding SMS interesting

25

Finding SMS useful

26

Finding Spam/Junk emails interesting

27

Finding Spam/Junk emails useful

28

Frequency of receiving Catalogs/Brochures

29

Frequency of receiving Live Calls

30

Frequency of receiving Recorded Calls

31

Frequency of receiving SMS

32

Gender of the Respondents

33

Income of the Respondents

34

Internet Access Point

35

Internet Usage

36

Internet Users

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4.6.

37

No. of days since Stop Call request sent

38

No. of days since Stop SMS request sent

39

No. of E-mail Ids

40

Occupation of the Respondents

41

Place of receiving Catalogs/Brochures

42

Reading Catalogs/Brochures completely

43

Thinking Calls should be banned

44

Thinking Catalogs/Brochures should be banned

45

Thinking SMS should be banned

46

Thinking Spam/Junk should be banned

47

Treatment with Spam/Junk

48

Want to stop Calls

49

Want to stop Catalogs/Brochures

50

Want to stop SMS

51

Want to stop Spam/Junk

Hypotheses

Hypotheses are formulated on the basis of theories and concept developed from the
previous studies. Study conducted by Sheehan Kim and Hoy Mariea (1999) shows
consumers responses to privacy1. They found that as concern for privacy increased;
respondents provided incomplete information to websites, notified ISP about
unsolicited e-mail, requested for opting out from mail list, sent negative messages,
registered for websites requesting information.

Carroll, Barnes, and Eusebio investigated consumer's perceptions and attitudes

towards mobile marketing via SMS through a sequential, mixed method investigation
identifying four factors - permission, content, wireless service provider (WSP)
control, and the delivery of the message.2 It was proved that all these factors have a
significant impact on mobile marketing acceptance. Karjaluoto at el. found that
perceived usefulness, perceived ease of use, and perceived trust affect attitude toward
advertising and intention to engage in permission based mobile communications with
1

Sheehan Kim and Hoy Mariea, Flaming, Complaining, Abstaining: How Online Users Respond to
Privacy Concerns, Journal of Advertising, vol 28, No. 3, Fall 1999, p 37-51.
2
Carroll Amy , Barnes Stuart J, and Scornavacca Eusebio, Consumers Perceptions and Attitudes
towards SMS Mobile Marketing in New Zealand, Proceedings of the International Conference on
Mobile Business, IEEE Computer Society, USA , 2005 , p 434 440.

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a firm.1 Moreover, compared to men, women have a stronger relationship between

mobile marketing communications with intentions to visit and actual visits. Jon Ingall
(2008) says that increasing demand of 3G handsets show potential of cellphones as
media for advertising.2 A survey conducted by Bluestreak in the U.K. and the U.S.
found that respondents open one of three permission-based e-mails.3 In the same
survey, the respondents in the U.S. said SMS marketing was the most unpopular form
of communications. 80 % respondents felt negative for SMS marketing by the
advertisers.
Rogers (1996) examined trends in mail advertising from a study of the U.S. household
mail communications inspecting how consumers feel, perceive, and respond to the
advertising mail received by them.4 It was found that type of mail is important.
Catalogs and newsletters found to be the most valued advertising mail. Customers
found these useful and interesting. Catalogs have both advantages and disadvantages.5
Catalogs can be made targeted, these are easy to read, having complete information
and are convenient. But at the same time, catalogs are costly, viewed with negative
perceptions, having low response rate, and require updating database frequently.
Rowley (2002) provided tips for effective e-mail communication.6 E-mail
communication should be relevant and targeted. It should be timely, infrequent, and
personalized. E-mails must have features such as auto-response, opt-out etc. Training
is required for customer service agents to understand effect and legality of e-mail
correspondence. The response must be quick.
Following hypotheses are formulated for this research:
1. H0: There is no significant relationship between customers awareness about Do
Not Call Registry and Education and Occupation of the customers.

Karjaluoto Heikki, Lehto Heikki, Leppniemi Matti, and Jayawardhena Chanaka, Exploring Gender
Influence on Customers Intention to Engage Permission-Based Mobile Marketing, Electronic Markets,
vol 18, No. 3, 2008, p 242-259.
2
Ingall Jon, Why Permission is the Biggest Issue, Precision Marketing, 8th Aug, 2008, p 14.
3
Email is Most Acceptable Channel for Permission-Based Marketing, NMA, 9th Nov, 2006, p 9.
4
Rogers Jean, Mail Advertising and Consumer Behavior, Psychology and Marketing, vol 13, No. 2,
March 1996, p 211233.
5
Wells William, Burnett John and Moriarty Sandra, Advertising: Principles & Practice, 6th ed, PHI,
New Delhi, 2005, p 23.
6
Rowley Jennifer, E-business Principles and practice, Palgrave, New York, 2002.

65

H1: There is significant relationship between customers awareness about Do Not

Call Registry and Education and Occupation of the customers.
2. H0: There is no significant relationship between customers awareness about Do
Not Call Registry and City and Gender of the customers.
H1: There is significant relationship between customers awareness about Do Not
Call Registry and City and Gender of the customers.
3. H0: There is no significant relationship between disturbance ranks given to
marketing communications by the customers and customers preferences to stop
them.
H1: There is significant relationship between disturbance ranks given to marketing
communications by the customers and customers preferences to stop them.
4. H0: There is no significant relationship between customers finding marketing
communications interesting and finding the marketing communications useful.
H1: There is significant relationship between customers finding marketing
communications interesting and finding the marketing communications useful.
5. H0: There is no significant relationship between customers awareness about
Permission Marketing and Education, Occupation, and City of the customers.
H1: There is significant relationship between customers awareness about
Permission Marketing and Education, Occupation, and City of the customers.

4.7.

IMPORTANCE OF THE RESEARCH:

Customers can opt for not receiving any marketing communication from marketers
and thus protect themselves from time consuming, irritating, and irrelevant
information. Customers can select specific information, in which they are interested
and filter out the information, which they feel useless. Marketers can allocate their
attention, budget, and time on sending relevant and the messages which interest the
customers by knowing customers preferences. Marketers can avoid wrath of the
customers, if customers get irritated from the marketing messages. Marketers can
avoid creating negative impressions in the mind of their potential or existing
customers. Taking prior permission by the marketers from the customers can be
included in the law as a part of consumerism movement. The customers can have
evidence of their willingness to receive particular information in the case of any legal
matter.

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4.8.

LIMITATIONS OF THE RESEARCH:

4.8.1.

Geographic limit:
The survey is limited to geographic boundaries of Gujarat state. Moreover,
each and every city, town, or village is not possible to include in the study
due to time and cost constraints.

4.8.2. Respondents bias:

As this research uses non probability sampling design, there are chances of
existence of bias and this may twist the findings.

4.8.3. Novelty of Concept:

Researcher will have to utilize the respondents initial time in explaining
the emerging concept of permission marketing.

4.8.4. Exclusion of Element:

The general population, which does not receive any kind of marketing
communication, such as illiterate population cannot be included in the
study. So, they are excluded. Moreover, the study is limited to Phone calls,
SMS, Catalogs, and spam. Media such as broadcast (TV and Radio), other
print medium (magazines), and outdoor media are excluded.

4.8.5. New Vista:

This is the kind of issue upon which much work has not been done so far.
So, researcher has to rely less on secondary data to research this emerging
concept.

4.9.

RESEARCH GAP

Permission marketing is not widely studies in India. The research has been carried out
to know the awareness, preferences, and perceptions related to permission marketing.
The inter-relationship among with various Integrated Marketing Communication

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components, such as direct marketing, advertising, sales promotion, public relations,

personal selling, and electronic marketing has not established yet. Legal implications
of permission marketing are not understood so far. The attempt has been made to
fulfill this gap by this research.

Taking base of this research, further study can be undertaken regarding permission
marketing and new media, role of government in practicing permission marketing,
prospective legislation needed to be applied in various countries, socio-psychological
impact of permission marketing on customers, applicability of permission marketing
to broadcast media, magazines, and outdoor media etc.

4.10.

PILOT STUDY

The attempts are made to know what customers think about marketing
communications they receive through phone calls, SMS, e-mails or printed matter.
Simple, undisguised, structured questionnaires are run among the respondents who are
First Year Undergraduate students. Students, particularly youngsters are more likely
to use cell phones and internet. Hypotheses are formed to know awareness about
permission marketing concept, awareness about Do Not Call Registry, awareness
about Permission Marketing, perceptions and preferences towards marketing
communications, Consumer Dispute Redressal Commission and Consumer Protection
Act awareness etc.

4.10.1.

Methodology of Pilot Study:

After checking normality of the sample distribution, it was found that sample is
not normally distributed. Data do not satisfy assumptions of parametric tests.
Thus, Chi-square (2) Test is used. Most commonly adopted 0.05 Level of
Significance is taken.

4.10.2.

Pilot Study Results

The pilot study was conducted among First year BBA students. So the result may
show similar response pattern for data such as age, education, occupation, income,
city etc. However, the same pattern will not be observed in the large sample

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actual research. It is found that there is no major changes required in the design of
the data collection instrument i.e. questionnaire, in sampling frame or in method
of the survey. Pilot study helped to find out more relationships among variables.
Clear planning became possible before collecting survey data.

From hypotheses testing the following results are derived:

1.

There is no significant relationship between the frequency of marketing calls

and the frequency of SMS. The customers who receive marketing calls more
frequently may not necessarily receive marketing SMS very often and vice a
versa.

2.

Those who want to stop the calls have surely attempted to stop them. Out of
those who are willing to stop marketing calls, not a single respondent has
given up to stop marketing calls by informing the Mobile Service Providers.
There is no gap in the mind of respondents in thinking to stop calls and taking
action to stop calls.

3.

Those who want to stop the SMS have surely attempted to stop them. Out of
those who are willing to stop marketing SMS, not a single respondent has
requested to stop marketing SMS. There is no gap in the mind of respondents
in thinking to stop SMS and taking action to stop SMS.

4.

Those who have attempted to stop the calls have not attempted to stop SMS
simultaneously. It is found that there are some respondents who have
attempted to stop calls but not SMS. At the same time there are respondents
who have tried to stop SMS but not marketing calls.

5.

Those who are aware about DNCR (Do Not Call Registry) are ready to stop
calls than others. Comparison is made between two types of respondents
respondents aware about DNCR and who are unaware about DNCR. The
result shows that those who are aware about DNCR are much ready to stop
SMS than others.

6.

There is a significant relationship between customers finding call detail and

SMS details interesting. Perceived usefulness of calls has a relationship with
perceived usefulness of SMS. Those who are very much disturbed by the calls
do not think that calls should be banned.

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7.

There is a significant relationship between customers thinking of ban over

call and over SMS. Those who are very much disturbed by the SMS think that
SMS should be banned.

After analyzing results of the pilot study, it was required to make correction in the list
of questions. Necessary changes were made in the questions and more questions were
added in the questionnaire. Filled up questionnaires are collected from 462
respondents. The respondents are from six cities of Gujarat, India. The cities are
Ahmedabad, Vadodara, Surat, Rajkot, Jamnagar, and Anand.

After, coding the data, following tests are conducted with the help of SPSS (Statistical
Package for the Social Sciences) software:
1. Measures of Central tendency or location (mean, median, mode), measures of
variability or spread (range, standard deviation, variance), measures of shape
(kurtosis, and skewness)
2. Frequency with Histogram with Normal curve
3. Kolmogorov-Smirnov, and Shapiro-Wilk Tests

Frequency with Histogram with Normal curve, and Kolmogorov-Smirnov and

Shapiro-Wilk Tests are conducted to check normality of the population. Chi-Square
test is used for hypotheses testing and Spearmans Rho is used for checking existence
of relationship between different variables. Finally, clustered bar charts are displayed
to make cross-comparison among different variables.

4.11.

HYPOTHESES TESTING

Hypotheses testing require formulating null hypothesis and alternative hypothesis,

selections of appropriate testing test(s), choice of parametric or nonparametric tests,
and finally making interpretation for decision making.

4.11.1.

Selection of statistical tests and techniques for Hypotheses testing

Deciding which statistical technique and tests to use for testing hypotheses depends
upon factors such as defined research problem, research design, sampling design,
scale of measurement used in data collection, distribution of data etc. First step is to

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check whether each variable is to be analyzed in isolation or many variables are to be

analyzed simultaneously. When there is a single measurement in the sample and each
variable is to be analyzed separately, Univariate technique is used, whereas when
more than one variable are to be analyzed simultaneously, Multivariate techniques are
used. Secondly, If measurement of variables are at nominal or ordinal scale
(nonmetric data), nonparametric (distribution free) tests are used. In case
measurement of variables are at interval level at least (metric data), parametric tests
are used.

Selection of tests and technique also depends on the fact whether

observations are from one samples or from two samples.

To check normality of the data, histograms, and Kolmogorov-Smirnov (K-S) test are
used. If data are normally distributed then we can assume that the data belong to
normally distributed population. Histograms give overview of whether variables have
bell-shaped symmetrical curve or not. Variables with bell- symmetrical shaped curve
are normally distributed. We can interpret that sample distribution does not deviate
from normal. Though, histograms do not show magnitude of the deviation. Therefore,
Kolmogorov-Smirnov, and Shapiro-Wilk tests are conducted to check whether data
are normally distributed or not. When p value in these tests is greater than 0.05,
then sample distribution is normal. When p value is less than 0.05, then the
distribution is not normal.

4.11.2.

Assumptions of Parametric Tests

There are four assumptions of parametric tests:

1. Normally distributed data
2. Data measured at least Interval scale.
3. Independent data
4. Equal Variance

The observations in this research come from one samples. Data are measured at
nominal and ordinal scales. Histograms show variables do not have normality curve.
It is interpreted that sample data are not normally distributed and they do not belong
to normally distributed population. Mean, median, and mode are not identical.

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Further, K-S (Kolmogorov-Smirnov) test, and Shapiro-Wilk tests are used. Results
show that distribution in not normal. Parametric tests are not applicable. KolmogorovSmirnov test is one-sample test. It is goodness of fit test. The comparison is made
between observed and theoretical sample distribution. When calculated value is
greater than the critical value, the null hypothesis is rejected. It is more powerful than
Chi-Square test.

4.11.3.

Chi-Square Test ( 2 )

Pearson Chi-Square test is used for testing relationship between two or more
categorical variables. It is widely used nonparametric test to check significance
difference between the observed frequency (fo) and the expected frequency (fe) with
reference to the null hypothesis.

Degree of freedom (df) is important in Chi-Square test. For every degree of freedom,
Chi-Square distribution is different. Degrees of freedom are calculated by multiplying
number of rows minus 1 and number of columns minus 1. For 2 X 2 table (a table
with 2 rows and 2 columns), degree of freedom will be (2 1) X (2 1) = 1.
df = (r 1) X (c 1)

The null hypotheses are formulated in form of there is no significant relationship

between two variables. When the calculated value of Chi-Square statistics is greater
than the critical value, null hypothesis is rejected. Thus, it is interpreted that there is
significant relationship between two variables. Data that are in percentage form must
be converted into absolute number form to calculate Chi-Square statistics.

One of the limitations of the Chi-Square test is it does not indicate strength of
association among the variables. Chi-Square test cannot be conducted if any cell in
the contingency table has frequency of less than 5.

4.11.4. Descriptive Statistics

Descriptive statistics include measures of central tendency, measures of dispersion,
and measures of shape. Mean, Median, and Mode are common measures of location
(measures of central tendency). Variance, Standard Deviation, and Range are parts of

72

n measures of spread (measures of dispersion or variability). Skewness and Kurtosis

are measures of shape.
1. Mean
In other words, Means is an arithmetic average. Mean is an average for
interval or ratio scaled data. It is calculated by dividing total of the values of
all observations/items by the total number of observations/items.
2. Median
Median is middle value of midpoint of the data calculated after arranging the
frequencies in ascending or descending order. It is the most appropriate
measure for ordinally scaled data.
3. Mode
Mode is the value occurring most frequently in data. It is also used for
categorical data.
4. Range
Range is calculated as the difference between the highest and the lowest
value among the observations. For ordinal data, range is very important
statistic.
5. Variance
Variance is mean squared deviation from mean. Deviation from the mean is
the difference between the mean and observed value.
6. Standard Deviation
Standard deviation is calculated by taking square-root of the average of
deviations squares. It is positive square-root of variance. It is used for
interval and ratio scaled data.
7. Skewness
If sample data does not have mean, median, and mode at the same point, data
are skewed. Data can be positively or negatively skewed.
8. Kurtosis
Kurtosis is the measure of shape. It tells how flat the sample distribution is. It
can have negative or zero or positive value. A bell-shaped or normal curve is
neither too peaked nor too flat.

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4.11.5. Results and Interpretations of Hypotheses testing:

1. Hypothesis that there is no significant relationship between customers awareness
about Do Not Call Registry and Education and Occupation of the customers is
rejected. There is significant relationship between customers awareness about Do
Not Call Registry and customers education, and occupation.
2. Hypothesis that there is no significant relationship between customers awareness
about Do Not Call Registry and city and gender of the customers is not rejected.
There is no significant relationship between customers awareness about Do Not
Call Registry and customers city, and gender.
3. Hypothesis that there is no significant relationship between disturbance ranks
given to marketing communications by the customers and customers preferences
to stop them is rejected. There is significant relationship between disturbance
ranks given to marketing communications by the customers and customers
preferences to stop communications.
4. Hypothesis that there is no significant relationship between customers finding
marketing communications interesting and finding the marketing communications
useful is rejected. There is significant relationship between customers finding
marketing communications interesting and finding marketing communications
useful.
5. Hypothesis that there is no significant relationship between customers awareness
about Permission Marketing and education, occupation, and city of the customers
is rejected. There is significant relationship between customers awareness about
Permission Marketing and education, occupation, and city of the customers.

4.11.6. Crosstabulation
With the help of Crosstabulation, relationship between two or more categorical
variables can be examined. Crosstabulation tables are also knows as Contingency
Tables. Categorical variables have categories of people, places, objects, situations etc.
For example, Gender, City etc. It is also possible to check various measures of
association such as Chi-Square, Phi, Contingency Coefficient, Cramers V etc. with
the help of Crosstabulation. Chi-Square statistic is used for crosstabulating two or
more variables with nominal categories. Phi Coefficient is used to check strength of
association of 2 X 2 contingency table. Contingency Coefficient is used to check

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strength of association of a contingency table of any number of rows and any number
of columns. Cramers V is used to check strength of association of the tables larger
than 2 X 2 (tables with more than 2 rows and 2 columns). Crosstabulation is done by
taking two or more variables present in the hypotheses formulated.

4.11.7. Correlation
Correlation helps to know linear relationship between variables. Two variables can be
positively related or not related or negatively related. For example, higher the
awareness about the product, higher the interest level in buying (positive relation). It
can be higher the product awareness, lesser the interest in buying (negative relation)
or product awareness and buying interest are independent, there is no change in level
of buying interest with changing product awareness (no relation). If variables have
correlation, it is called that they covary. When one variable deviates from mean and
the other variable also deviates from the mean, these variables are related. Variance of
a variable is a measure of level of data that vary from the mean of those data. When
one variable deviates from mean and the other variable also deviates from the mean in
the same direction, the variance is positive. For example, if interest in the product
increases with the increase in product awareness, variance is positive. When one
variable deviates from mean and the other variable deviates from the mean in the
opposite direction, then variance is negative. For example, interest in the product
decreases with increase in the product awareness.

Variables may have different scales of measurement. Standardization is used when

covariance is used for measuring relationship between the types of variables having
different scales of measurement. Standardization will convert different units into the
same unit of measurement. Covariance value, after standardization, lies between -1
and 1 and is called Pearson product-moment correlation coefficient (r or R). -1 value
says that relationship between variables is a perfect negative, 1 says it is a perfect
positive relationship. 0 shows no relationship between variables.

4.11.8.

Spearmans Rho

For nonparametric data, instead of Pearsons correlation Spearmans correlation

coefficient is used. In Spearmans test, data are ranked first, and then Pearsons

75

statistic is applied to these ranks. If the significant value is less than 0.05, then it is
interpreted that a significant relationship between two variables exists. If the value is
more than 0.05, then there is no significant relationship between two variables. If the
correlation is positive, then change in one variable result in the change of the other
variable in the same direction.

4.11.9.

Phi

Phi is used for 2 X 2 contingency tables to measure the strength of association. Phi
coefficient is calculated as below:

When value of Phi is zero, there is no any association between variables. When this
value is 1, there is perfect association between the variables.

4.11.10. Contingency Coefficient

Contingency Coefficient (C) measures strength of association between variables for
the table of any size. Unlike Phi coefficient, it is not limited for 2 X 2 table only. The
value of this statistic lies between 0 and 1. 0 indicates no association. Contingency
coefficient is calculated as below:

4.11.11. Cramers V
Cramers V is used for the tables with more than two rows and more than two
columns. The larger the value of V, the higher the association. Cramers V is
calculated as below:
2
V=

min (r 1), (c - 1)

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