Summary Book Basic Marketing Research Lectures 1 6 Chapters 1 11 PDF

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Summary - book "Basic Marketing Research", lectures 1-6,

chapters 1-11
Marketing Research (University of Western Australia)
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MKTG 2305 Chapter 1 Summary

Learning Objectives
• Definition and classification of marketing research
• The role of marketing research in decision making
• The marketing research process
• Marketing research in practice
• Ethics in marketing research
Definition of Marketing Research

• Marketing research is the systematic and objective identification, collection, analysis, dissemination and use of
information that is undertaken to improve decision making related to identifying and solving problems (also known as
opportunities) in marketing
• Marketing research has a broad scope
• Marketing research begins with the identification or definition of the research problem of opportunity: Problems lead
to opportunities
• The range of data collection methods and the sources used to obtain the data vary in sophistication and complexity.
• The methods used depend on the specific requirements of the project including budget and time constraints
• The data is then analysed and the results are formally presented to the client and used in decision making
• Market research is systematic: it follows a predictable path
A Classification of marketing research

• Problem Identification Research: research undertaken to help identify problems which are not necessarily apparent on
the surface and yet exist or are likely to arise in the future
• More common of the two types of research
• Used to assess the environment and diagnose problems-‐ provides an initial alert to potential opportunities or problems
→ Market potential research
→ Market share research
→ Image research
→ Market characteristics research
→ Forecasting research
→ Business Trends Research
→ Eg. Ralph Lauren undertakes research to determine the size of the market for men’s shirts
• Problem Solving Research: research undertaken to help solve specific marketing problems. Undertaken once a problem
or opportunity has been identified
→ Segmentation research
→ Pricing Research
→ Product Research
→ Promotional Research
→ Distribution Research
• Both types compliment each other and are often combined
• E.g. MacDonald’s discovered in store atmosphere was increasingly becoming an important part of diner experience
(problem identification) and the solution was an introduction of the “forever young” brand by remodeling restaurants
(problem solving)
The role of marketing research in marketing

decision making >>
• A major goal of marketing is to identify and
then satisfy needs of various customer
groups.
• To do this marketing managers need
information about the various customer
groups, competitors and other forces such
as environmental trends in the
marketplace.
• The task of marketing research is to assess
the information needs and provide
management with relevant, accurate,
reliable, valid and current information to
aid marketing decision making
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• Used for competitive advantage and too avoid high costs of poor decisions
The consequences of marketing research done poorly or not done at all
• Branding mistakes
• International marketing failures
• Ill advised new product introductions
• Nintendo-‐ underestimated demand
• IBM-‐ overestimated demand
• Other examples
The Marketing Research Process

1.Defining the problem
• Occurs through discussion with decision makers, interviews
with industry experts, analysis of secondary data including
social media, and perhaps some qualitative research such as
focus groups
• Management decision problem (what should the management
do)
• Marketing Research problem (what information is needed)

2.Developing an approach to the problem
• Formulating an analytical framework and models, research questions and hypotheses

3.Formulating a research design
• A framework or blueprint for the marketing research project-‐ details procedures to obtain information
• Conducting preliminary or exploratory research, designing the variables, ad designing appropriate scales to measure
them
• Issue of how data must be obtained from respondents

4.Doing fieldwork or collecting data
• Fieldwork involves personal, telephone, mail or electronic interviewing.
• Proper selection, training, supervision and evaluation of the field force are essential to ensure high quality data
collection.

5. Preparing and Analyzing Data
• Data preparation includes the editing, coding and transcribing of collected data-‐ then verified for accuracy and
standardized
• Analyzed using different statistical techniques-‐ results are then interpreted to find conclusions related to the marketing
research problem

6.Preparing and Presenting the report
• Entire project should be documented in a written report that addresses the specific research question, describes the
approach, the research design, data collection and data analysis procedures and presents the results and major
findings.
• Written report is usually supplemented by tables, figures and graphs to enhance clarity and impact
• Formal presentation
Key points to note

• Each step in the process involves numerous issues and decisions
• All steps are necessary and vital
• The steps are not rigid (feedback and revision)
• But… once data is collected no revision of the procedure is possible
• Errors can arise at any stage, affected quality of output
• Errors must be considered in ‘Total’, rather than in isolation
The Decision to Conduct Marketing Research

• Should be guided by a number of considerations including:
→ Managements attitude towards the research: should be positive
→ The resources available to conduct the research and to implement the findings: should be adequate
→ If additional information is needed to make the decision: yes
→ If the decision is of strategic or tactical importance: yes
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→ The costs versus the benefits of conducting the research: benefits outweigh
Overview of the marketing research industry

• Marketing Research industry: consists of suppliers who provide marketing research services. Made up of internal and
external suppliers
• Internal Supplier: marketing research departments located within a firm (e.g. large firms Coca-‐Cola, Colgate)
• External suppliers: outside marketing research companies hired to conduct a complete marketing research project or a
component of it (E.g. Neilson)
→ Full-‐service suppliers: companies that offer the full range of marketing research activities
o Syndicated services: companies that collect and sell common pools of data designed to serve the
information needs of multiple clients
o Customized services: companies that tailor research procedures to best meet needs of each client
o Internet services: companies that specialized in conducting research on the internet
→ Limited-‐service suppliers: companies that specialized in one or a few steps of the marketing research process
o Field services: companies whose primary service offering is their expertise in collecting data for
research projects
o Focus groups and qualitative services: services related to facilities, recruitment, and other services for
focus groups and other forms of qualitative research, such as one-‐on-‐one depth interviews
o Technological and analytical services: services related to design issues and computer analysis of
quantative data, such as those obtained in large surveys
• International suppliers
• Diagram page 47
Selecting a Research Supplier

• What is the suppliers reputation
• Does the firm complete projects on schedule? Is it flexible?
• Is it known for maintaining ethical standards?
• Are its research projects of high quality?
• What kinds and how much experience does the supplier have?
• Has the firm had experience with projects similar to this one?
• Do the supplier’s personnel have both technical and nontechnical expertise? Do they have Professional Researcher
Certification offered by the Marketing Research Association?
• Has the firm formed any strategic alliances? What Resources does it have access to?
Preparation for a Career in Marketing Research

• Take all the marketing courses you can
• Take courses in statistics and quantitative methods
• Acquire the internet and computer skills
• Take courses in psychology and consumer behaviour
• Acquire effective written and verbal communication skills
• Think creatively. Creativity and common sense command a premium in market research
Current influences on the marketing research process

• The internet and electronic commerce
→ Both primary and secondary data
• Gatekeeper Technologies and Privacy Legislation
→ For example, called ID, answering devices, opt-‐in/opt-‐out, etc
• The Expansion of Global Markets
→ Are different approaches required in new markets
• Marketing Research as a Strategy
→ Need to integrate more fully with IT function (e.g. CRM)
• Timely market research has become more valuable
→ Need to be able to keep up with the speed of new products entering the marketplace, domestic and
international competition and the increase in demanding and well-‐informed consumers
Predicted Trends in MR/ Contemporary issues

1. Outsourcing of marketing research to international agencies particularly in the US: international marketing
research is much more complex that domestic research because researchers must consider the environment in the
international markets they are researching
2. Social media are emerging as an important domain in which to conduct marketing research: Greater use of mixed-‐
methods
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3. Ethical issues in marketing involve 4 stake holders

• Market research reports becoming more interactive and moving online http://ww.uniqlo.com/try
• Increased in-‐house management of research projects
• Continuing international expansion of market research companies
Ethics in marketing research: the researcher

• Ethical questions arise when conflict occurs between the following stakeholders
1. The marketing researcher
2. The client
3. The respondent
4. The public
• Ethical issues can arise at each step of the marketing process
• Some “nasties” to keep an eye out for
→ Manipulating variable costs to increase the project price
→ Not providing promised incentives to respondents
→ Respondent abuse (e.g. the five minute interview)
→ Selling unnecessary research services
→ Falsifying response data
→ Duplicating actual response data
→ Manipulating data structures to get a biased result
→ Not reporting selected findings at all
Summary diagram: page 54
Ethics in Marketing Research: the client

• Clients can be unethical too, for example:
→ Asking for a “detailed proposal” from several providers with no intention of awarding any of them a contract
→ Promising long-‐term commitment and future business in order to get a reduced price for the current project
Ethics in Marketing Research: the Respondent

• Ask yourself, how many times have I…
→ Provided dishonest answers to an interviewer?
→ Alluded to and/or faked behaviour I would never engage in?
→ Been purposely inconsistent in my responses to mess up the research endeavour?
→ Been purposely “extreme” in my responses to a survey?
→ Been purposely rude and/or crude in providing my responses to a research endeavour?
Marketing Research Associations Online

• AMSRS: Australian Market and Social Research Society (www.amsrs.com.au)
• ESOMAR: European Society for Opinion and Marketing Research (www.esomar.nl)
• MRS: The Market Research Society (UK) (www.marketresearch.org.uk)
• PMRS: The Professional Marketing Research Society (Canada) (www.pmrs-‐aprm.com)
Acronym
The role and salient characteristics of marketing research can be described by RESEARCH
• R ecognition of information needs
• E ffective decision making
• S ystematic and objective
• E xodus/ dissemination of information
• A nalysis of information
• R eccomendations for action
• C ollection of information
• H elpful to managers

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MKTG 2305 Chapter 2 Summary: Defining the Market Research

Problem and Developing an Approach
Learning Objectives
• Understand the problem definition process
• Know the difference between management and
marketing research problems
• Understand how to develop an appropriate research
approach
• Be able to identify the component of a research design
• Recognize the differences, strengths and limitations of
exploratory and conclusive research
• Understand the general outline and contents of a market
research proposal (examples on LMS)
The Problem Definition and Approach Development Process>>

TASKS INVOLVED
• Discussions with decision makers: the researcher must
understand the nature of the management decision
problem as well as the management’s expectations of
the research-‐ gives the researcher an opportunity to establish achievable expectations.
→ Discussions with the decision maker can be structured around the problem audit: a comprehensive
examination of a marketing problem to understand its origin and nature.
• Interviews with industry experts: experts found both inside and outside the firm, that can help researchers formulate
the marketing research problem
→ Experience survey/ key-‐informant technique: interviews with people knowledgeable about the general topic
being investigated
→ Leader-‐user survey: survey that involves obtaining information from the lead users of technology.
• Secondary Data Analysis:
→ Secondary data: data collected for some purpose other than the one at hand
→ Primary Data: data originated by the researcher to address the research problem
→ Analyzing secondary data should always precede primary data collection and can provide valuable insights into
the problem situation and lead to the identification of innovative courses of action.
• Qualitative and Exploratory Research: undertaken to gain a clear understanding of factors underlying the research
problem
→ Qualitative research: an unstructured, exploratory research methodology based on small samples intended to
provide insight and understanding of the problem setting

ENVIRONMENTAL CONTEXT OF THE PROBLEM
• Factors that have an impact on the definition of the marketing research problem, including:
→ Past information and forecasts
→ Resources and constraints of the firm
→ Objectives of the decision maker
→ Buyer behaviour
→ Legal environment
→ Marketing and technological skills of the firm
Step One: Defining the Problem

• Problem Definition: a broad statement of the
general problem and identification of the specific
components of the marketing research problem.
• Researchers and key decision makers on the
clients side should agree on the definition of the
problem.
• Incorrect definition leads to incorrect solutions.
This can be minimised by adopting a two-‐stage
process
1. Broad statements of the problem: the
initial statement of the marketing
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research problem that provides an appropriate perspective on the problem
2.
Specific components of the problem: The specific components focus on the key aspects of the problem and
provide clear guidelines on how to proceed.
• Common errors: problem definition is too broad or is too narrow
• Problems arise from 3 main sources:
1. Unanticipated change: e.g. research into lost market change, employee turnover is high
2. Planned change ( 4 P’s): e.g. research into which of two new prototypes is going to be more sucessful
3. Serendipity in the form of new ideas
o Research assists in the development (e.g. Viagra was initially used for heart issues)
• Symptoms are not problems
Parts of the Problem

Part A: Management Problem (ACTION based-‐ question; focuses on symptoms)
• The problem confronting the decision maker. It asks what the decision maker needs to do
→ Decision facing management when a range of solutions are available
→ It asks what the decision maker wants to do
o How do we know if our products are meeting customer’s needs?
o Is our ad campaign reaching the right audience?
• Problem definition based on symptoms can be misleading>>
• Example: What packaging should we develop for a new product>

Part B: Marketing Research Problem (INFORMATION based-‐ statement, focuses on the underlying causes)
• Statements about problem areas that the research will attempt to investigate;
• The marketing research problem asks what information is needed and how it can be best obtained
• Translates the Management Problem into what the researchers need to do… the problem facing the researcher
• May include hypotheses: statistical
• It is ‘actionable’, very broad, can start with evaluate, assess, determine
• Best identified through research, knowledge and consultation
• Example: Evaluate the effectiveness of alternate packaging designs
Step two: Approach to the problem

• Analytical Framework and Model
• Research Questions and Hypotheses
• Specification of the Information Needed
Analytical Framework and Model

• Objective evidence: marketing research should be based on this; It is unbiased
evidence that is supported by empirical findings from secondary sources
• Analytical model: an explicit specification of a set of variables and their
interrelationships designed to represent some real system or process in whole of
in part
1. Verbal model: analytical models that provide a written representation of the relationship between variables
2. Graphical model: analytical models that provide a visual picture of the relationship between variables. They
are used to isolate variables and to suggest directions of relationships but are not designed to provide
numerical results
3. Mathematical models: analytical models that explicitly describe the
relationships between variables; usually in equation form
→ Where y= degree of preference
→ Ao and A1= model parameters to be estimated statistically
→ Xi= independent variable
Research Questions and Hypothesis

• Research Question: Refined statements of the specific components of the problem. They are designed to ask the
specific information required to address each problem component. E.g. What are the effects of age and gender on
purchases of Coca-‐Cola
• Hypothesis: an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher.
It may be a tentative statement about the relationships discussed in the theoretical framework or represented in the
analytical model. They hypothesis can be stated as an answer to the research question.
• Hypothesis 1: Consumers aged 17-‐24 buy more Coca-‐Cola in a weekly basis than 25-‐30 year olds
→ Independent Samples t test: mean figure of expenditure on Coke of two groups, and compare them
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→ One tailed t test: one group buys more

• Hypothesis 2: Males buy more Coca-‐Cola on a weekly basis than females
Specification by information needed

• By focusing on each component of the problem, the analytical
framework and models, and the research question and hypotheses,
the researcher can determine what information should be obtained
• Researchers should specify which information should be collected for
each component of the problem.
Steps Leading to the Formulation of a Research Design >>
Acronym
Factors to consider when analyzing the environmental context of the problem can be summed up as PROBLEM
• P ast information and forecasts
• R esources and constraints
• O bjectives of the decision maker
• B uyer behaviour
• L egal environment
• E conomic environment
• M arketing and technological skills

MKTG 2305 Chapter 3 Summary: Research Design
Step 3: Tasks involved in a Research Design

What is a research design
• Research design: a framework or blueprint for conducting the marketing research project that specifies the procedures
necessary to obtain the information needed to structure and/or solve the marketing research problem.
• A good research design ensures that the information collected will be relevant and useful to management and that all
of the necessary information will be obtained-‐ process is effective and efficient.
Basic Research Designs
Exploratory Research
• Exploratory Research: A type of research design that has as its primary objective the provision is insights into and
comprehension of the problem situation confronting the researcher
→ Used when management realises a problem exists but does not yet understand why (e.g. sales are slipping in a
particular region)
→ Exploratory research is conducted on small and nonrepresentative sample, so the findings should be regarded
as tentative and followed by more defined exploratory research or conclusive research
• It can be used for:
1. To formulate a problem or define a problem more precisely
2. To identify alternative courses of action
3. To develop hypotheses
4. To isolate key variables and relationships for further examination
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5. To gain insights for developing an approach to the problem

6. To establish priorities for further research
• Types:
1. Survey of experts/ experience surveys
2. Pilot Surveys: surveys that tend to be less structured than large-‐scale surveys in that they generally
contain more open-‐ended questions and the sample size is much smaller (chap 2)
3. Case Studies: Involve an intensive examination of a few selected cases of the phenomenon of interest/
Cases could be customers, stores or other units. (chap 2)
4. Secondary data analyzed in a qualitative way (discussed in Chapter 4), can include social media content
5. Qualitative research (discussed in Chapter 6): such as focus groups, one-‐on-‐one in depth interviews, social
networks and social media bulletin boards.
• Exploratory used when: want more understanding of numbers and conclusive research, if you want some insights fast,
low cost and when you don’t need to generalize to a population, shouldn’t be used to make key marketing decisions
due to sample size error
• Example: 6 focus groups with 10 respondents are conducted on body moisturizer effectiveness
Conclusive Research
• Conclusive Research: is research designed to assist the decision maker in determining, evaluating and selecting the best
course of action for a given situation; used in strategic marketing decisions
• It is based on the assumption that the researcher has an accurate understanding of the problem at hand.
• The objective is to test specific hypotheses and examine specific relationships
• Can move between exploratory and conclusive research or do both at once e.g. the findings from secondary data and
focus groups (exploratory research) were further tested in a telephone survey (conclusive research)
• Conclusive used when: when managers need to make key strategic decisions, and need to generalize the data to the
market as a whole
• Example: large national survey of 1000 randomly selected respondents on body moisturiser
• Conclusive Research can be broken down into two sub-‐types:
1. Descriptive Research
2. Causal Research
Descriptive Research
• Descriptive Research: a type of conclusive research hat has its major objective in the description of something-‐ usually
market characteristics or functions. Descriptive research goals include:
1. To develop a profile of a target market
2. To estimate the frequency of product use as a basis for sales forecasts
3. To determine the relationships between product use and perception of product characteristics
4. To determine the degree to which marketing variables are associated
• Example: Swatch watchers does an analysis of its own sales by outlet type or undertakes consumer perception and
behaviour studies.
• Major types of descriptive studies:
1. Sales studies: market potential, market shares, sales analysis
2. Consumer perception and behaviour studies: image, product usages, advertising, pricing
3. Market characteristic studies: distribution, competitive advantage
• Techniques for data collection of descriptive research:
→ Secondary data analyzed in a quantitative as opposed to a qualitative manner: including social media
(discussed in Chapters 4 and 5)
→ Surveys: an interview with a larger number of respondents using a predesigned questionnaire (Chapter 7)
→ Panels (Chapters 5 and 7)
→ Observational and other data (Chapter 7)
• Cross-‐sectional design: a type of research design involving the one time collection of information from any given
sample of population elements (e.g. How did the Americans rate the performance of Barack Obama immediately
following the election?)
→ Good at: representative sampling, response bias
→ Bad at: detecting change, large amount of data collection, accuracy
• Longitudinal design: two or more measurements on the same variables are obtained from a given group of
respondents at different points in time (e.g. How did the American people change their view of Obama’s performance
before and after his first year in office?)
→ The term panel is used interchangeable with longitudinal design: consists of a sample of respondents,
generally households that have agreed to provide information at specified intervals over an extended period.
→ Good at: detecting change, large amount of data collection, accuracy
→ Bad at: Representative sampling, representative bias
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Causal Research
• Causal research: a type of conclusive research whose major objective is to obtain evidence regarding cause-‐and-‐effect
(causal) relationships
• Causal design: a design in which the independent variables are manipulated in a relatively controlled environment
• Example: Examining the effect of a promotional campaign on the sales of Mercedes cars-‐ simulate a shopping trip,
other factors are controlled (e.g. product quality and price)
• It is appropriate for the following purposes:
1. To understand which variables are the cause (independent variables) and which variables are the effect
(dependent variables) of a phenomenon
2. To determine the nature of the relationship between causal variables and the effect to be predicted
• METHOD: experiments
Summary of Differences

• Exploratory: Why are we losing market share?
• Descriptive: How do consumers evaluate our brand compared to competing brands?
• Causal: By how much will our sales increase if we decrease the price by 5,10 or 15%?
• The following are guidelines for choosing research designs:
1. Exploratory-‐ Conclusive: when little is known about the problem situation, begin with exploratory to generate
alternative courses of action, research questions or hypothesis. Then move on to descriptive or causal research
2. Conclusive: If the researcher has a good understanding of the problem situation, descriptive/causal research is
an appropriate initial step (e.g. Quarterly customer satisfaction surveys)
3. Conclusive-‐ Exploratory: used when descriptive or causal research leads to results that are unexpected or
difficult to interpret, the researcher may turn to exploratory research for insight.
Exploratory Conclusive Causal

Objectives To provide insight and To test specific hypothesis and Determine cause-‐and-‐effect
understanding examine relationships relationships
Characteristics Information needed is defined only Information needed is clearly Manipulation of one or
loosely defined more independent
Research process in flexible and Research process is formal and variables
unstructured structured Control of other mediating
Sample is small and Sample is large and representative variables
nonrepresenative Data analysis is quantative
Analysis of primary data is Marked by the prior formulation
qualitative of specific hypotheses
Often the front end of the total Preplanned and structured design
research design
Findings/Results Tentative Conclusive
Outcome of Research Used for insight Used for Strategic Decisions
Methods Expert/experience surveys Secondary data: quantative Experiments
Pilot surveys Surveys
Case studies Panels
Secondary data: qualitative analysis Observational and other data
and qualitative research
Tasks Involved in formulating a research design

1. Specify the information needed (Chapter 2)
2. Design the exploratory, descriptive and/or causal phases of the research (Chapters 4 through 8)
3. Specify the measurement and scaling procedures (Chapters 9 and 10)
4. Construct and pretest a questionnaire or an appropriate form for data collection (Chapter 11)
5. Specify the sampling process and sample size (Chapters 12 and 13)
6. Develop a plan of data analysis (Chapter 15)
Acronym
The process of a research design may be summarized by the acronym DESIGN:
• D ata analysis plan
• E xploratory, descriptive, causal design
• S caling and measurement
• I nterviewing forms: questionnaire design
• G enerating the needed information
• N umber: sample size and plan
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MKTG 2305 Chapter 4 Summary: Exploratory Research Design and

Secondary Data
Learning Objectives
• Knowledge of the various types, sources and uses of secondary data
• Understand the differences between primary and secondary data and qualitative and quantative research
• Understand the major forms of qualitative research
• Understand the major forms of qualitative research-‐focus groups, in-‐depth interviews and projective techniques
Primary versus secondary data

• Primary Data: data originated by the researcher for the specific purpose of addressing the research problem. Can be
expensive and time consuming because it involves all 6 steps of the marketing research process (e.g. a company
conducts research into the demographics of its consumers)
Primary Data Secondary Data
Collection purpose For the problem at hand For other problems
Collection process Very involved Rapid and easy
Collection cost High Relatively low
Collection time Long Short

Secondary Data
• Secondary data: data collected for some purpose other
than the problem at hand.
• Researchers should favour secondary data before going
ahead with their own primary data-‐ only if the secondary
data sources have ben exhausted or yield marginal returns
• Uses of secondary data include:
1. Identify the problem
2. Better understand and define the problem
3. Develop an approach to the problem
4. Formulate an appropriate research design (e.g. by
identifying the key variables)
5. Answer certain research questions and test some
hypotheses
6. Interpret primary data with more insight
• Advantages: useful for estimating demand, monitoring the environment, developing business intelligence systems,
segmenting and targeting.
• Disadvantages: limited by the degree of fit with the current research problem, data accuracy, methods used to collect
data may not be compatible with current situation, compatibility of units of measurement or timeframe.
• A classification of secondary data >>
Criteria used for Evaluating Secondary Data

Criteria Description Issues Remarks
Specifications Methodology used to Data collection method Data should be reliable, valid
collect data Response rate and generalizable to the
Quality of data problem at hand
Sampling technique
Sample size
Questionnaire design
Fieldwork
Data Analysis
Error Accuracy of the data Examine errors in: approach, research Assess accuracy by comparing
design, sampling, data collection, data data from different sources
analysis, reporting
Currency When the data was Time lag between collection and publication Census data are periodically
collected Frequency of updates updated by syndicated firms
Objective The purpose for the Why were the data collected? The objective will determine
study the relevance of the data
Nature The content of the data Definition of key variables Reconfigure the data to
Units of measurement increase their usefulness, if
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Categories used possible

Relationships examined
Dependability How dependable are the Expertise, credibility, reputation and Data should be obtained from
data trustworthiness of the source an original rather than an
acquired source

Internal Secondary Data

• Internal data: data available within the organization for which the research is being conducted
• Favour internal secondary data before external
• Usually takes considerable processing effort before such data can be used
• Sources of internal Data:
1. Customer Databases: obtains psychographics of customers. Information on customer demographics is
obtained from raw sales information, warranty cards and loyalty programs etc.
2. Data Warehousing and Data mining:
o Data warehousing: a centralized database that consolidates company-‐wide data from a variety of
operational systems
o Data mining: technique involving the use of powerful computers and advanced statistical and other
software to analyze large databases in order to discover hidden patterns in the data
3. CRM and Data base marketing
o Customer Relationship Management: a decision support system that is used for managing the
interactions between an organisation and its customers. (e.g. prerecorded technical assistance
hotline)
o Database marketing: the practice of using CRM databases to develop relationships and highly
targeting marketing efforts with individuals and customer groups
4. Social Media
→ Sales and expense records
→ Previous Research reports
→ Customer Relationship Management systems
→ Customer complaints
→ Internal information on external players such as supplier reports
External Secondary Data

• External Data: data that originates external to the organization; grown over the years due to introduction of computers
into workplace
• Types:
1. Social Media
2. Business/non-‐government: guides, indices, directories, statistical data (e.g. Standard & Poor’s Corporate
descriptions-‐ summary data on publically held US corporations)
3. Government: census data (e.g. ABS)
4. Syndicated Services: information services offered by marketing research organizations that provide
information from a common database to firms that subscribe to their services
→ Can merge internal customer data with external geographic, demographic and lifestyle data on the
same customers (geodemograhpic coding)
Syndicated Sources Example: ACNielsen ScanTrack

• ACNielson used diary panels (consumers made diary entries), now customers can scan in products they buy
• ScanTrack monitors key accounts for food and groceries and can provide information on the product level
• Monitors supermarket trends by product, category and geography. Allows users (companies) to:
→ Evaluate performance trends
→ Evaluate price and promotion effectiveness
→ Evaluate their position in relation to competitors
• Provides information on:
→ Market (total key account and also chain specific)
→ Product (category, manufacturer, brand and product level)
→ Volume and value sales
→ Selling price and market share
Acronym
The criteria used for evaluating secondary data can be described by the acronym SECOND
• Specifications: methodology used to collect the data
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• Error: accuracy of data

• Currency: when the data was collected
• Objective: purpose for which data were collected
• Nature: content of the data
• Dependability: overall, how dependable are the data

MKTG 2305 Chapter 5 Summary: Exploratory Research Design:

Syndicated Sources of Secondary Data
The nature of Syndicated data
• Syndicated sources: companies that collect and sell common pools of data designed to serve information needs by a
number of clients, including competing firms in the same industry. (E.g. Survey data collected by the NPD Group on the
rising trend of casual clothing assisted Haggar Apparel and Levi Strauss direct their marketing campaigns.)
• These data differ from primary data in that the research objective guiding the study is common to several client firms.
• Syndicated firms make their money by collecting data and designing research products that fit the information needs of
more than one organisation.
• Timely and cost effective; impartial monitor of market-‐wide trends as well as consumer reactions or behaviours
• Syndicated sources can be classified based on the unit of measurement:
1. Households/consumers
2. Institutions
Overview of syndicated services: from households/consumers

Type Characteristic Advantages Disadvantages Uses
Surveys Surveys conducted at Most flexible way of Interviewer errors; Market
regular intervals obtaining data; information respondent errors segmentation;
on underlying motives advertising theme
selection; advertising
effectiveness
Purchase panels Households provide Recorded purchase Lack of Forecasting sales,
specific information behaviour can be lined to representativeness; market share and
regularly over an the response bias; trends; establishing
extended period of demographic/psychographic maturation customer profiles and
time; respondents characteristics brand loyalty and
asked to record switching; evaluating
specific behaviours as test markets,
they occur advertising and
distribution
Media panels Electronic devices Same as purchase panels Same as panel Establishing
automatically record purchases advertising rates;
behaviour, selecting media
supplemented by a program or air time;
diary establishing viewer
profiles
Scanner volume-‐ Household purchases Data reflect actual Data may not be Price tracking,
tracking data are recorded through purchases; timely data; less representative; errors modeling assessing
electronic scanners in expensive in recording effectiveness of in-‐
supermarkets purchases; difficult to store promotion
link purchases to
elements of
marketing mix other
than price
Scanner panels with Scanner panels of Data reflect actual Data may not be Promotional-‐mix
Cable TV households that purchases; sample control; representative; quality analyses; copy
subscribe to cable TV ability to link panel data to of data limited testing; new product
household characteristics testing; positioning
Audit services Verification of Relatively precise Coverage may be Measuring consumer
product movement by information at the retail and incomplete; matching sales, market share,
examining physical wholesale levels of data on competitive and competitive
records or performing activity may be activity; analyzing
inventory analysis difficult distribution patterns
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tracking of new

products
Firm syndicated Data banks on Important source of Data is lacking in Determining market
services industrial industrial firms; particularly terms of content, potential by
establishments useful in initial phases of quantity and quality geographic area;
through direct the marketing research defining dales
inquiries of process territories; allocating
companies, clipping advertising budget
services and
corporate reports

Overview of syndicated services: from institutions

• Retailer and wholesaler audits: a data collection process derived from physical records or inventory analysis. Data are
collected personally by the researcher or by representatives of the researcher, and the data are based upon counts,
usually of physical objects
• Industrial firms/ organisations: secondary data derived from industrial firms and organisational sources and intended
for industrial or institutional use: direct inquiries, clipping services, corporate reports

Page 170 diagram and page 156
Acronym
The salient characteristics of syndicated data may be described by the SYNDICATED
• Surveys
• Yield data of known commercial value
• Number of clients use the data
• Diary panels
• Institutional services
• Cost is low
• Audits
• Timely and current
• Electronic scanner services
• Data is combined from difference sources: single-‐data source

MKTG 2305 Chapter 6 Summary: Exploratory Research Design:

Qualitative Research

Qualitative vs. Quantative Data

• Qualitative Research: an unstructured, exploratory research methodology based on small samples that provides
insights and understanding of the problem setting
• Quantative Research: a research methodology: a research methodology that seeks to quantity the data and typically
applies some form of statistical analysis
• Whenever a new marketing research problem is addressed, quantitative research must be preceded by appropriate
qualitative research
• Example: Gillete used quantative research (survey) based on a representative sample of 500 women to substantiate the
findings of qualitative research (in-‐depth interviews)
• The danger of ignoring qualitative research when the research problem is not follow understood and directly
proceeding to quantitative research (e.g. New Coke-‐ researchers were focusing on taste rather than the emotional
attachment consumers had forged with the brand, which was actually a more significant variable fueling brand
preference and loyalty than taste)
Qualitative Research Quantitative Research
Objective To gain an understanding of the underlying To quantify the data and generalize the results
reasons and motivations form the sample to the population of interest
Sample Small numbers and nonrepresentative cases Large numbers and representative cases
Data Collection Unstructured Structured
Data Analysis Nonstatistical Statistical
Outcome Develop a richer understanding Recommend a final course of action

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Advantages and Disadvantages of Qualitative

Research Methods
• Qualitative-‐ UNDERSTANDING things
→ Very heavy emphasis on open ended
questions
→ A lot of flexibility-‐ interview/surveys
may adapt to issues presenting at the
time
→ Observation (e.g. watching people in
a shopping food hall)
• Quantative-‐ MEASURING things
• Advantages:
→ Very detailed
→ Can come to understand the
justification behind responses
• Disadvantages:
→ Difficulty in finding trained/quality
interviewers
→ Difficulty in finding available participants
A classification of Qualitative Research procedures>>

• Direct approach: a type of qualitative research in which the purposes of the project are disclosed to the respondent or
the obvious given the nature of the interview
• Indirect approach: the type of qualitative research in which the purposes of the project are disguised from the
respondents.
Direct (nondisguised):
Focus Groups
• Focus groups: an interview conducted by a trained moderator among a small group of respondents in an unstructured
and natural manner (e.g. focus group discussion guide for smart phone, or consumer response to Samsung’s newest
phone)
• Main purpose is to gain insight on issues of interest to the researcher by listening to a group of people from the
appropriate target market
• Value lies in obtaining rich information from free flowing discussions
• Focus groups are the most important qualitative research procedure
• Synonymous with qualitative research
• Conducting a focus group requires:
1. Design the focus-‐group environment
2. Recruit and select focus group participants
3. Select a moderator
4. Prepare the discussion guide
5. Conduct the group interview
6. Prepare the focus-‐group report

Characteristics of Focus Groups
Group Size 6-‐8 respondents
Group Composition Homogenous: same gender, age group, user category ; respondents prescreened
Physical Setting Relaxed, informal atmosphere
Time Duration 1 to 3 hours
Recording Use of audio and video recording
Moderator Observational, interpersonal and communicational skills of moderator are crical

• Moderator is key role:
→ Well trained in interpersonal communication
→ Kind but firm
→ Permissive, sensitive
→ Encourage involvement/understanding
→ Flexible
→ Have a good understanding of objectives/background
• Advantages:
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→ The immediacy and richness of the components

→ Group interaction provides a wider range of information, insights and ideas
→ Participants can respond to one another’s comments and opinions in unexpected ways
→ Responses are general spontaneous and candid providing rich insights
→ Ideas are more likely to be novel and potentially creative
• Disadvantages:
→ The clarity and conviction of members may lead to a tendency for researchers and managers to regard findings
as conclusive rather than exploratory
→ Focus groups are also difficult to moderate
→ The quality of results depends heavily on the skills of the moderator (which are rare)
→ The unstructured nature of the results makes coding, analysis and interpretation difficult
• Applications of focus groups:
1. Understand customer perceptions, preferences and behaviour concerning a product category
2. Obtain impressions of new product concepts
3. Generate new ideas about older products
4. Develop create concepts and copy material for advertisements
5. Secure price impressions
6. Obtain preliminary consumer reaction to specific marketing programs
7. Interpret previously obtained quantitative results
In-‐Depth Interviews
• Depth interviews: an unstructured, direct personal interview in which a single respondent in probed by a highly skilled
interviewer to uncover underlying motivations, beliefs, attitudes and feelings on a topic
• Like focus groups, depth interviews are an unstructured and direct way of obtaining information. Unlike focus groups,
however, depth interviews are conducted on a one-‐one one basis, these interviews typically last from 30 minutes to
more than an hour.
• As the interview progresses, the type of questions asked, the proves used and the wording of the question depends on
the answers received
• Example: how shoppers view the Internet shopping experience
• The success of depth interviews rests with the skills of the interviewer who should:
1. Avoid appearing superior and put the respondent at ease
2. Be attached and objective yet personable
3. Ask questions in an informative manner
4. Not accept brief “yes” or “no” answers
5. Probe the respondent
• Two basic types:
1. Nondirective interviews
2. Semi-‐structured or focused Individual Interviews
• Nondirective interviews: Maximum freedom to respond (so long as discussion is related to area(s) of research interest)
• Semi structured or focused individual interviews: Covers a specific list of topics or sub-‐areas (e.g. timing, exact
wording, and time allocated to each question usually predetermined)
• Advantages:
→ Can uncover deeper insights about underlying motivates than focus groups
→ Can attribute the responses directly to the respondents
→ Free exchange of information-‐ focus groups may inflict social pressure to conform
→ Probing allows the information on complex issues to be found
• Disadvantages:
→ Need a highly trained interviewers-‐ expensive and hard to find
→ Results are susceptible to the interviewers influence, quality of results is dependent on their skill
→ Hard to decipher the results
→ Time Consuming
→ Small sample may not be representative of the larger population
Characteristic Focus Group In-‐depth Interview
Group synergy and dynamics + -‐
Peer pressure/ group influence -‐ +
Client involvement + -‐
Generation of innovative ideas + -‐
In-‐depth probing of individuals -‐ +
Uncovering of hidden motives -‐ +
Discussion of sensitive topics -‐ +
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Interviews with respondents who are competitors -‐ +

Interviews with respondents who are professionals -‐ +
Scheduling of respondents -‐ +
Amount of information + -‐
Bias in moderation and interpretation + -‐
Cost per respondent + -‐
• Applications of in-‐depth interviews
1. Detailed probing of respondents
2. Discussion of confidential, sensitive of embarrassing topics
3. Situations where strong social norms exist sand the respondent might be easily swaged by the group’s
response
4. Detailed understanding of complicated behaviour
5. Interviews with professional people
6. Interviews with competitors, who are unlikely to reveal the information in a group setting
7. Situations where the product consumption experience is sensory in nature, affecting mood states and
emotions (e.g. shaving experience, soap/perfume)
8. Exploratory research
• Ground theory: an inductive and more structured approach in which each subsequent depth interview is adjusted
based on the culmative findings from previous depth interviews with the purpose of developing general concepts or
theories
Indirect (disguised): Projective Techniques

• Projective: an unstructured and indirect form of questioning that encourages respondents to project their underlying
motivations, beliefs, attitudes or feelings regarding the issues of concern.
• Used in marketing situations where a respondent is unable or unwilling to answer a question directly
• E.g. Respondents might be able to interpret the behaviour of others rather than describe their own and in doing so
indirectly project their own motivations, beliefs, attitudes or feelings into the situation
• Four types:
1. Association
2. Completion
3. Construction
4. Expressive
Association
• Association techniques: a type of projective technique in which the respondent is presented with a stimulus and asked
to respond with the first thing that comes to mind.
• Word association: a projective technique in which respondents are presented with a list of words, one at a time. After
each word is presented, respondents are asked to give the first word that comes to mind.
→ Words of interest are called test words
→ List includes neutral, filler words to disguise purpose of study
• Analysed by calculating:
1. Frequency of using same word
2. Latency
• Response latency: the longer a individual hesitates before answering, the higher the assumed level of involvement with
the subject
• A non-‐response is thought to indicate the highest level of emotional involvement, because these people are too
involved to be able to respond in a short time.
• E.g. Thoughts that come to mind when one says IKEA are jotted down by the researcher
Completion Techniques
• Completion techniques Requires the respondent to complete an incomplete stimulus situation
• Sentence completion: a projective technique that requires the respondent to complete a number of incomplete
sentences using the first word or phrase the comes to mind.
• More directed than associations, but not as disguised
• E.g. Ikea reminds me of…. People who shop at Ikea are… My friends think Ikea is…. Friend visiting from overseas thinks
Ikea is….
• Story competition: respondents are provided with part of a story and are required to give their conclusion in their own
words.
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Construction Techniques
• Construction techniques: requires the respondent to construct a response-‐ in the form of a story, dialogue or
description
• Picture-‐ response technique: the respondent is shown a picture and asked to tell a story describing it; an analogy e.g.
the cola world. Respondents make up a story
→ These stories are analyzed in an attempt to identify themes reflecting the individuals perceptual interpretation
of pictures
• Cartoon tests: cartoon characters are shown in a specific situation related to the problem. The respondents are asked
to indicate the dialogue that one cartoon character might make in response to the comments of other, usually
unspoken thoughts
→ 1 Is given response is given-‐ participant is asked to fill in the other (e.g. lets get some clothes from target, other
person fills in response)
→ Tends to maximize the candid nature of responses
• Used to evaluate perceptions and attitudes towards topic
Expressive Techniques
• Expressive techniques: the respondents are presented with a verbal or visual situation and asked to relate the feelings
and attitudes of other people to the situation
• Role playing: respondents are asked to play the role or assume the behaviour of someone else
• Third Person Technique: respondent is presented with a verbal or visual situation and asked to relate the beliefs and
attitudes of a third person to the situation (such as their parent/neighbor)
• May be used when questions are embarrassing/ answers aren’t socially desirable
• Assumes individual will reveal personal beliefs/attitudes while describing other/situation
• Reduces social pressure errors
Other projective techniques

• Bring an item: item may be representative of participants views
• Planets (and guided fantasy)-‐ e.g. what are the people like that inhabit “Planet Coke”, go to competing Planets
• Courtroom drama: participant asked to assess the “case” which is relevant to product
• Brand personification and obituary: what would the brand look like if it were a person? If coca cola died how would
you remember it?
• Time machine: asks participants to look at toys 20 years ago, currently and 20 years in the future
• Withdrawal techniques: understanding consumer relationships with brands and products (e.g. how would a person
feel if they took their phone away-‐ if you had to go to a desert island and could only bring 1 product what would that
product be and why?
Advantages/Disadvantages of projective techniques

• Advantages:
→ May elicit responses that subjects would be unwilling/unable to give if they knew the purpose of the study
→ Increase the validity of the responses by disguising the purpose
→ Sensitive, personal issues or ones strong to social norms
→ Helpful when underlying motivations, beliefs and attitudes are operating at a subconscious level
• Disadvantages:
→ Require highly trained interviewers and skilled interpreters to analyze the responses-‐ expensive
→ Interpretation bias
→ All techniques are open ended (except word association) thus analysis and interpretation is difficult and
subjective
→ Those asked to participate (particularly in role plays) might not be representative of the population of interest
• It is desirable to compare findings generated by projective techniques with the findings of other techniques that permit
a more representative sample.
Applications:
• Projective techniques are used less than focus groups or in-‐depth interviews
• Word association is the most commonly used for testing brand names, measure attitudes about particular products,
brands, packaging or advertisement
• Their usefulness is enhanced when:
1. Sensitivity of the subject matter is such that respondents might not be willing or able to answer honestly to
direct questions
2. To uncover subconscious motives, beliefs, or values, providing deeper insights and understanding as part of
exploratory research
3. Administered and interpreted by trained interviewers who understand their advantages and limitations.
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Other Qualitative Research Techniques

• Friendship pairs and triads: two or three people are interviewed together; familiarly keeps discussion open
• Conflict groups: two sides of a debate
• Affinity groups: like minded people, moderator may act as devils advocate
• House-‐tree-‐person (HTP) test: inferences about a target market based on their drawings of a house, tree and person
• Personification: name an animal or object which symbolizes the brand, product, company
• The Friendly Martian: respondents have to advise friendly Martian who has no views/knowledge on the subject at
hand.

Page 204 diagram
Acronym
Key characteristics of a focus group can be described by FOCUS GROUPS:
• Focused on a particular topic
• Outline prepared for discussion
• Characteristics of the moderator
• Unstructured
• Size: 8 to 12 participants
• Group composition: homogenous
• Recorded: audio and video recording
• Observation: one way mirror
• Undisguised
• Physical setting: relaxed
• Several sessions needed: 1-‐ 3 hours each

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MKTG 2305 Chapter 7 Summary: Descriptive Research Design: Survey

and Observation
Learning Objectives
• Understand the various types of survey methods and their advantages and disadvantages
• Understand the 10 step process of questionnaire design
• Know the various techniques that can be used to enhance
respondents ability and willingness to answer
• Understand the different types of questions that can be
used and be able to identify and correct questions that are
poorly worded and designed
Methods of Obtaining Quantitative Data in Descriptive Research

>>
1. Observation: Information obtained by observing behaviour
or phenomena
2. Survey: Information obtained by questioning respondents
The Survey Method

• Survey method: a structured questionnaire given to a
sample of a population and designed to elicit specific information from respondents.
• The survey method of obtaining information is based on questioning respondents
• Perhaps the biggest issue researchers face is how to motivate respondents to candidly answer their questions-‐
challenge of controlling the non response problem
• Questions regarding behaviour, intentions, attitudes, awareness, motivations, and demographic and lifestyle
characteristics all lend themselves to survey research
• Advantages:
→ Easy to administer
→ Fixed response questions reduces variability and increases reliability
→ Simplifies coding, analysis and interpretation of data
• Disadvantages:
→ Respondents might be unable or unwilling to provide the desire information
→ The subconscious nature of ones motives might make it impossible to answer the question
→ Unwilling to respond if information is sensitive or personal
→ Structured data collection (questions
in a prearranged order): loss of validity
for certain data such as feelings or
beliefs
→ Difficult to properly phrase questions
(Chapter 11)
• Most common method of primary data
collection in market research
Classification of Survey Methods>>

• Sample control: the ability of the survey mode
to effectively and efficiently reach the units
specified in the sample
• Control of the field force: is the survey
occurring in a central location-‐ can the
interviews be moderated/ supervised form one
place etc.
• Response rate: the percentage of the total attempted interviews that are completed
• Quantity of data: depends on the participants ability to walk away/ exit the survey at any time

Method Advantages Disadvantages
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Telephone and Fast No use of physical stimuli

Good Sample control Limited to simple questions
Telephone Computer Assisted Telephone Good control of field force Low quantity of data can be collected
Interviewing (CATI)-‐ interviewers Good response rate Less commitment thus less tolerance
puts results into a computer Moderate cost for lengthy interviews – hang up
In Home Complex questions can be asked Low control of field force
Personal Good for physical stimuli High social desirability
Very good sample control Potential for interviewer bias
High quantity of data Most expensive
Very good response rate Some samples (e.g. high-‐crime areas)
Longer interviews can be done may be difficult to access
May take long to collect the data
Mall intercept Complex questions can be asked High potential for social desirability
Very good for physical stimuli Potential for interviewer bias
Very good control of environment Moderate quantity of data
Very good response rate High cost
CAPI: respondent sits in front of Complex questions can be asked High social desirability
a computer terminal and Very good for physical stimuli Moderate quantity of data
answers a questionnaire on the Very good control of environment High cost
screen usually in the form of Very good response rate
user-‐friendly electronic Low potential for interviewer bias
packages-‐ used in shopping
malls, trade shows or
conventions
Mail/Fax interview No field-‐force problems Limited to simple questions
Mail No interviewer bias Low sample control for cold mail
Moderate/high quantity of data No control of environment
Low social desirability Low response rate for cold mail
Low cost Low speed
Mail Panel: a large and nationally No field-‐force problems Limited to simple questions
representative sample of No interviewer bias No control of environment
households that have agreed to High quantity of data Low/Moderate speed
periodically participate in mail Low social desirability
questionnaires, product tests and Low/moderate cost
survey research. Good sample control
Electronic Email No interviewer bias Low sample control
Low cost No control of environment
Low social desirability Low response rate
High speed Moderate quantity of data
Contract hard-‐to-‐reach Security concerns
respondents
Internet No interviewer bias Low sample control
Low cost No control of environment
Low social desirability Low response rate
Very high speed Moderate quantity of data
Visual appeal and interactivity
Personalised, flexible questioning
Contact hard-‐reach respondents
Electronic surveys software and Can perform tasks such as:
sites • Personalization
• Incorporate complex skip patterns
• Randomize response choices
• Consistency checks
• Add new response categories as the interviewing progresses
Free/low cost survey sites Allow users to create and file their own surveys for free or at low cost. Users
provide respondents at their own discretion.

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Criteria for selection a Survey method

1. If complex and diverse questions have to be asked: personal methods or internet surveys
2. From the perspective of the use of physical stimuli: personal methods
3. If sample control is an issue: cold mail (but not mail panel), fax and electronic methods might not be appropriate
4. Control of the data collection environment: favours the use of central location interviewing-‐ mall intercept and CAPI
5. High quantity of data: in home and mail panels and sometimes telephone interviewing
6. Low response rates: not cold mail and electronic methods
7. Social desirability is an issue: mail, mail panel, fax and internet surveys
8. If the interview is bias on an issue: mail (cold and panels), fax and electronic interviewing is favoured
9. Speed favour internet, email, telephone and fax methods
10. Costs favour: cold mail, fax, electronic (email and internet), mail panels, telephone, mall intercept, CAPI and in home
methods in that order (most to least)
Improving Survey Response Rates

• Prior notification: reduces surprise and uncertainty and creates a more cooperative atmosphere
• Incentives:
→ Prepaid incentive: coupons, money or some other incentive to participate
→ Promised incentive: coupons money or some incentive that is sent only to those who participate.
→ Cost of large monetary incentives might outweigh the value of the additional information obtained
• Follow up: Contacting non-‐respondents periodically after the initial contact (mail surveys particularly)-‐ via telephone,
email or personal contact and can be more than once
• Personalization: or sending letters addressed to specific individuals
• Ease of response: properly target survey, well-‐designed questionnaire, self-‐addressed envelop, professional response
Observation
• Observation: The recording of behavioural patterns of people, objects and events in a systematic manner to obtain
information about the phenomenon of interest
• Physical actions, body language, tracking eye movement, temporal actions, amount of wear on floor in front of exhibits,
license plate surveys, tracking time people fixate on an object

Personal observation:
• Personal observation: a trained observer collects the data by recording behaviour exactly as it occurs (e.g. observing
traffic counts in a department store)
1. Humanistic inquiry: form of personal observation in which the researcher is immersed in the system under
study (e.g. asks another shopper on advice for which brand to choose)
• Advantage:
→ Highly flexible method because the observer can record a wide variety of phenomena
→ Highly suitable in for use in natural settings (e.g. a regular sales meeting)
• Disadvantage:
→ Information is recorded after observation-‐ leading to high observation bias
→ Doesn’t tell you why people are behaving like that
Mechanical observation
• Mechanical observation: an observational research strategy in which mechanical devices rather than human observers,
record the phenomena being observed.
• Devices may not require respondents direct participation
• Example: Peoplemeter is attached to a television and continually records not only the channels the television is tuned
to but who are watching.
• Advantages:
→ Low observation bias
→ Low-‐to-‐medium analysis bias
• Disadvantages:
→ Can be intrusive
→ Not always suitable in natural settings
A Comparison of Survey and Observational Methods

• Observational advantages:
→ Doesn’t require conscious respondent participation which minimizes nonresponse errors
→ Interviewer bias is minimized, because the observer only has to record what is occurring.
→ Errors in self-‐reported behaviour are eliminated, given the observer only records actual behaviour
→ Good for children’s product preferences or reacting to marketing material
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→ Good for identifying unconscious behaviour patterns or behaviours that individuals might be unwilling to
discuss honestly.
→ Best technique for phenomena that occur frequently or are of short duration-‐ in these situations it may cost
less and be faster than survey methods.
• Observational disadvantages:
→ Provides insight into what behaviour is occurring but not why-‐ attitudes, motivations and values are all lost
→ Highly personal behaviours are not available for interaction (e.g. personal hygiene)
→ Observer might overlook important features through selective observation-‐ threatens integrity
→ Can be adopted only for frequent behaviours of short duration as behaviours occurring infrequently or long
term are too expensive and time consuming to record
• Best to view observation as a complement to survey methods rather than in competition
Other methods of descriptive research

• Ethnographic research: the study of human behaviour in its natural context that involves observation of behaviour and
setting along with in-‐depth interviews
• Mystery Shopping: combines questioning and observation
Acronym
The classification of survey methods by administration may be described by METHODS:
• Mail panels
• Electronic interviews
• Telephone interviews
• Home (in home personal) interviewing
• On-‐site mall interviews
• Direct mail interviews
• Software for CATI-‐CAPI
MKTG 2305 Chapter 11 Summary: Questionnaire and Form Design

The Questionnaire
• Questionnaire: a structured technique for data collection that consists of a series of questions, written or verbal, that a
respondent answers
• A questionnaire is a formalized set of questions for obtaining information from respondents
1. Objective 1: It must translate the information needed into a set of specific questions that the respondents can
and will answer
2. Objective 2: Motivate respondents to complete the interview, without biases their response
3. Objective 3: A questionnaire should minimize response error.

Questionnaire Design Process

1. Specify the information needed
2. Specify the type of interviewing method
3. Determine the content of individual questions
4. Design the question to overcome the respondent’s inability and unwillingness to answer
5. Decide on the question structure
6. Determine the question wording
7. Arrange the questions in proper order
8. Identify the form and layout
9. Reproduce the questionnaire
10. Pretest the questionnaire-‐ eliminate faults
Step 1: Specify the Information Needed

• Prior to this step the researchers should have been as meticulous and precise as possible in framing the research
problem
• Descriptive and casual research require previous knowledge to guide research
• Need to transform research objectives into information objectives
• Consider respondent group
Step 2: Specify the type of interviewing method

• Telephone, personal, mail or electronic interviews
• Type of data required affects the method selected
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• The interviewing method can affect the design of the questionnaire
• Again consider the respondent group
• Consider issues such as:
→ Personal: Face-‐to-‐face give opportunity for feedback, clarification, can be lengthy, and incorporate visual aids-‐
as respondent cant see questionnaire questions must be short and simple
→ Interview administered questionnaire: written in conversational manner
→ Mail and Electronic questionnaires are self administered thus questions and instructions must be simple and
thorough
→ In CATI, CAPI or internet and social media surveys the computer guides the respondent through complex skip
patterns and can incorporate randomization of questions to eliminate order bias
Step 3: Determine the content of individual questions

• Is the question necessary?
→ Neutral questions: for sensitive or controversial topics
→ Filler questions: to disguise purpose of survey
→ Duplication of questions: validity and reliability
• Are several questions needed instead of one?
→ Avoid double barreled questions: “Do you think Nike Town offers better variety and prices than other Nike
stores?” WRONG break into two questions
→ Consider ‘why’ questions
o Multiple responses related to different aspects (e.g. product attributes and influences)
Step 4: Design the question to overcome respondents inability to answer
Is the respondent informed?
→ Answers are only meaningful if the respondent is informed (e.g. Husband may be unequipped to answer
questions on grocery shopping expenditure)
→ Willing and able to answer
→ Use filter questions when the topic requires specialized experience or knowledge: initial questions in a
questionnaire that screen potential respondents to ensure they meet the requirement of the sample.
→ Offer ‘don’t know’ response options
• Recall the information? (e.g. grocery spend wk/yr)
→ Omission/Telescoping/Creation
→ Recall is affected by the event, the time elapsed, cues that aid memory
→ Questions can be designed to aid recall and unaided recall
→ Aid recall: lists a number of soft drink brands then asks which ones were advertised on tv last night
→ Unaided recall: Which brands of soft drink do you remember being advertised on tv last night.
• Able to articulate response?
→ Difficult to describe the ideal atmosphere of a store for example
→ Provide visual aids, maps, verbal descriptions, diagrams
• Will the respondents give the information? Depends on:
→ Effort required-‐ approximation (e.g. what was bought during the shopping visit)
→ Legitimate response:
o Relevancy of question
o Appropriate context?
→ Sensitive information (embarrassing or threating)
o Includes money, political/religious beliefs, involvement in accidents/crimes

Step 5: Design the Questionnaire to overcome the respondents unwillingness to Answer
• Reduce the effort required by respondents (tick instead of list)
• Explain to participants why questions that don’t seem to have a legitimate purpose are in the questionnaire and explain
the context of the survey-‐ people are more likely to object to questions that don’t seem to serve a legitimate purpose
(e.g. demographics in a cereal packaging questionnaire)
• Handling sensitive topics: Put these questions at the end and ease into them and use categories instead of asking for
specific figures (e.g. income)
• Increasing response rates
→ Incentives, good cover letter, make the survey more personalized (e.g. attach tea bag for a tea)
→ Follow up on their survey

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Step 5: Decide on Question Structure

Unstructured Questions
• Unstructured questions are open-‐ended questions
that respondents answer in their own words
→ Exploratory/ why type questions
→ How would you describe the level of service
provided by the Student Guild at the
university of Western Australia?

Structured Questions
• Structured questions: questions that prespecify the set
of response alternatives and the response format. A
structured question may be multiple-‐choice,
dichotomous, or a scale
1. Multiple Choice Questions: the researcher provides a choice of answers and respondents are asked to select one or
more of the alternatives given
→ Do you intend to buy a new car within the next six months: definitely will not buy, probably will buy,
undecided, probably will buy, definitely will buy
2. Dichotomous Question: has only two response alternatives: yes or no, agree or disagree, and so on.
→ Often the two alternatives of interest are supplemented by a neutral alternative, such as “no opinion”, “don’t
know”, “both” or “none”
→ Do you intend to buy a new car within the next six months: yes, no or don’t know
3. Scales
Question Type Advantages Disadvantages Comments
Unstructured Good as first Questions-‐ Potential for interviewer bias-‐ Useful for exploratory
express general attitudes and only records what they research
opinions perceive as important
Responses are less biased-‐ Coding is costly and time
responses aren’t restricted to consuming
predefined alternatives Greater weight to articulate
Can provide rich insights respondents
Unsuitable for self-‐
administered questionnaires

Multiple Choice Interviewer bias is reduced-‐ Order or position bias: a Responses should be
as these questions are mainly respondents tendency to mutually exclusive and
self-‐adminsitered choose an alternative merely collectively exhaustive
Easy to code and analyze because it occupies a certain
Improved respondent position on the page or in a Useful in large surveys
participation list (reduced by preparing
Easy for respondents to several forms of the
answer questionnaire with changes in
the order of alternatives)
Difficult to design response
options
Dichotomous Same as multiple choice Wording can bias responses Use split-‐ballot technique:
frame the question one way
in half of the questionnaires
and the other way in the
other half
Scales Same as multiple choice Difficult to design multi-‐item Scales should be evaluated
scales for reliability, validity and
generlizability

Step 6: Determine the Question Wording

• The effects of poor phrasing affects:
→ Item nonresponse: refusal rate to answer increases
→ Measurement error: accuracy of response decreases
• Define the issue: Define the issue in terms of who, what, when, where, why and way:
→ Which brand of toothpaste do you use: WRONG
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→ Which brands or brands of toothpaste have you personally used at home during the past month? In the case of
more than one brand, please list all the brands that apply?: RIGHT
• Use simple words: avoid technical jargon
• Use unambiguous words
→ Avoid ambiguous words and questions and instead state specific frames: in question or answer e.g. How often
do you listen to country music in a month?
→ Use specific time frames such as 3-‐4 times rather than occasionally, sometimes, regularly etc.
• Avoid leading questions: giving respondents a clue about how they should answer
→ Acquiescence bias: bias resulting from some
respondents tendency to agree with the direction of
the leading question (yea-‐saying)
→ E.g. Is Colgate your favourite toothpaste (WRONG) vs.
What is your favourite brand of toothpaste (RIGHT)
• Avoid implied alternatives:
→ One that is not expressed in the options
→ Depending on how the question is worded, responses
differ
• Avoid implied assumptions: implied assumptions given about
the consequence
• Avoid double barreled questions: where two responses are
called for, unsure which one is right
• Avoid generalizations and estimates
Step 7: Determining the Order of the Questions

• Opening Questions: the opening questions should be interesting, simple and non-‐threatening
• Types of Information: as a general guideline, basic information should be obtained first, followed by classification, and
finally, identification information
1. Basic information: information that relates directly to the marketing research problem
2. Classification information: socioeconomic and demographic characteristics used to classify respondents
3. Identification information: name, postal address, email address and phone number
• 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)
o Q1: What considerations are important to you in selecting a department store
o Q2: In selecting a department store, how important is the convenience of location
→ This is in alignment with the funnel approach: a strategy for ordering questions in a questionnaire in which the
sequence starts with the general questions which are followed by progressively specific questions, in order to
prevent specific questions from biasing responses to general questions
• Logical order: questions should asked in logical order and organized around topic areas.
→ Use brief transitional phrases or sentences when switching topics
→ Branching questions: questions used to guide respondents or interviewers through a survey by directing them
to different sports on the questionnaire depending on the answers given. (e.g. If the Answer to 10 is no then
skip to question 12)
Step 8: 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: assigning a code to every conceivable response before data
collection.
• The questionnaires themselves should be numbered serially
• Length
→ Personal face to face – max 25 minutes, with incentive max 50 min
→ Telephone 20 and 40 min
→ Intercept 15 and 30 min
→ May depend on type of issue, whether in interests of society and/or respondent
→ Telephone – Not before 9am or after 9pm (8.30pm at weekends)
→ Door to door in daylight hours

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Step 9: Reproduction of the Questionnaire

• The questionnaire should be reproduced on good-‐quality paper and have a professional appearance.
• Questionnaires should take the form of a booklet rather than a number of sheets of paper clipped or stapled together.
• Each question should be reproduced on a single page (or double-‐page spread).
• Vertical response columns should be used for individual questions.
• Grids are useful when there are a number of related questions which use the same set of response categories.
• The tendency to crowd questions together to make the questionnaire look shorter should be avoided.
• Directions or instructions for individual questions should be placed as close to the questions as possible.
Step 10: Pretesting

• Pretesting refers to the testing of the questionnaire on a small sample of respondents for the purpose of improving the
questionnaire by identifying and eliminating potential problems before using it in the actual survey/
• Interview the pre-‐test sample using the same mode of administration
• Need to know:
→ Whether the questions are understood
→ Whether response categories are appropriate
→ How long the questionnaire takes to complete
Advantages and Disadvantages of Survey Research

• Advantages
→ You can preplan it
→ Reliable
→ Allows the use of advanced statistical analysis
→ Large sample size
→ You have control
→ Able to distinguish and differentiate
• Disadvantages
→ Low response rates
→ Respondents are unwilling to provide the information-‐ such an sensitive
→ Difficult to provide in-‐depth data structures
→ Difficult to know if the respondent is being truthful
→ Poor use of analysis techniques
→ Can be difficult to administer
A Question should:
1. Define the issue: who, what, when, where, why and way
2. Use Ordinary words: words should match the vocabulary level of respondents
3. Use unambiguous words: avoid usually, normally, regularly, frequently and sometimes
4. Avoid leading or biasing the responding: do not bias or clue the respondent to what the answers should be
5. Use dual statements: statements should be positive and negative
Acronyms
The objectives and steps involved in developing a questionnaire may be defined by the acronym QUESTIONNAIRE:
Objectives:
• Q uestions that the respondents can answer
• U plift the respondent
• E rror elimination
Steps:
• S pecify the information needed
• T ype of interviewing method
• I ndividual question content
• O vercoming inability and unwillingness to answer
• N onstructured versus structured questions
• N on biased question wording
• A rrange the questions in proper order
• I dentify form and layout
• R eprodction of the questionnaire
• E liminate bugs by pretesting

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The guidelines for question wording may be summarized by the acronym WORDS
• W ho, what, when, where, why and way
• O bjective questions: avoid leading questions
• R egularily, normally, usually etc. should be avoided
• D ual statements (positive and negative)
• S imple, ordinary words

The guidelines for deciding on the order of questions may be summarized by the acronym ORDER
• O pening questions: simple
• R udimentary or basic information should be obtained first
• D ifficult qustions toward the end
• E xamine the influence on subsequent questions
• R eview the sequence to ensure a logical order

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MKTG 2305 Chapter 9 Summary: Measurement and Scaling

Learning Objectives
• Know the primary scales of measurement and appropriate types of analysis for each
• Understand the various comparative and non-‐comparative scaling techniques
• Knowledge of basic sale evaluation: reliability and validity
Measurement and Scaling

• Measurement means assigning numbers or other symbols to characteristics of objects according to certain pre-‐
specified rules
• Most important aspect is deciding how to assign numbers to the characteristics being studied
→ One-‐to-‐one correspondence between the numbers and the characteristics being measured: Need to decide
unit/method/nature of measurement (how many, how and what)
→ The rules of assigning numbers to responses or categories etc. should be standardized and applied uniformly
→ Rules must not change over objects or time: consistent measurement method
• In marketing research, numbers are usually assigned for one of two reasons:
1. To permit statistical analysis of the generated data
2. To help communicate information about the results.
• Scaling involves creating a continuum upon which measured objects are located
→ Can be considered a part of measurement-‐ scale place the objects being measured along a continuum.
→ Measurement: assigning 1,2, or 3 to each respondent using a scale that ranges from 1 to 3
→ Scaling: the process of placing consumer response along an attitudinal spectrum from unfavorable to neutral
to favourable.
Scale Characteristics
• Description: unique labels or descriptors used to designate each value of the scale (e.g. 1= female)
• Order: The relative sizes or positions of the descriptors; its is denoted by descriptors such as greater than, less than or
equal to (e.g. preference for Nike is greater than preference for Asics), used in comparative scaling
• Distance: the absolute differences between the scale
descriptors are known and can be expressed in units
(e.g. 5 strongly agree expresses 1 more unit of
agreement than 4. Agree)
• Origin: indicates that the scale has a true 0 point (e.g.
income, weight, sales)
Considerations When Developing Scales

• The number of categories to use
• Balanced (equal number of positive and negative
categories) or unbalanced scales (when most
responses are skewed one way there are more choices
in this area-‐ e.g. service quality)
• Forced or non-‐forced choices
• Odd or even number of categories
• Nature and degree of verbal description
• The physical form of the scale
Primary Scales of Measurement >>

• The four basic sales of measurment
• Nominal<Ordinal<Interval<Ratio
→ Going across scale complexity increases (harder to use)
→ Contains more information
• The general rule is to select the lowest level of measurement that will enable the research to obtain the needed
information and conduct the appropriate statistical analysis
• More than one type of primary scale can be used in a survey
Nominal
• Nominal scale: a scale whose numbers serve only as labels or tags
for identifying and classifying objects. When used for
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identification there is a strict one-‐to-‐one correspondence between the numbers and the objects
• Examples: Bank account number; Rugby jersey numbers
• Type of analysis: counting, frequency (mode, %)
• Widely used in research: to identify respondents (gender, occupation), brands, attributed, stores, characteristics etc.
• Example: In the past year who made a contribution to your household income:
A. male head b. female head c. both
• Mode: mode is the most common value in the set of responses to a question
→ Mode is most common which is 1 the category assigned to females
→ Valid percent removes the missing scores
Ordinal
• Ordinal scale: a ranking scale in which numbers are assigned to objects to indicate
the relative extent to which some characteristic is possessed.
• Thus it is possible to determine whether an object has more or less of a characteristic than some other object
• Indicates order and identity
• Can determine the relative position (greater than or
less than), but not ‘how’ different things are
→ Ranking of teams in a tournament, runners in
a race (cant measure distance between
st
values: 1 place may have been 4 seconds
nd rd
ahead of 2 who was 5 seconds ahead of 3 )
• Types of analysis: mode and median (percentiles)
• Use in research: to measure attitudes, opinions,
perceptions, preferences
• Example: in the past year what was your annual
household income before taxes?
1. Less than $20,001, 2. $20,001 to $50,000….. 5. More
than $150,000
• Median: median occurs where half of the data is above the statistic value
and half is below
rd
→ Median (mid point) falls in 3 which represents the 3 category
(35,000-‐49,9999) 50% culmative percent in
→ Use median for incomes, salaries etc. as the median isn’t effected
by outliers whilst mean isn’t

Interval
• Interval Scale: a scale in which the numbers are
used to rank objects such that numerically equal
distances on the scale represent equal distances in
the characteristic being measured.
• A scale in which the intervals between the
numbers are meaningful (example= temperature)
→ Numbers are used to evaluate objects
→ Appear at numerically equal distances on
the scale
→ They represent equal distances in the
characteristic being measured
→ Enable differences to be compared
→ Example: rating scales
→ Zero point is arbitrary (unconstrained)
• Types of Analysis: mode, median, mean (range, std
dev.)
• Use in Research: for measuring attitudes
• Example: in the past year what was your annual
household income before taxes?
→ Circle from 1-‐7 1 being much below
average. 4 being average and 7 being much above average
• Mean: mean is the arithmetic average of all the data responses
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→ Very poor (1) to Excellent (5)

→ Mean: (1x36) + (2x124) + (3x244)…./782= 3.4015

Ratio
• Ratio scale: this is the highest level of measurement.
• Allows the researcher to:
→ Identify/classify objects AND
→ Compare the objects (rank/order them) AND
→ Compare intervals/differences
• Contains all the properties of nominal, ordinal and interval, AND an absolute zero point e.g. height, age, money
• It is also meaningful to compute ratios of scale values.
• Zero point is fixed: 20 kgs is twice as heavy as 10kgs (ratio property)
• Type of Analysis: all types
• Use in Research: sales, costs, market share, number of customers
• Example: In the past year, what was your annual household income before taxes? $_________
→ Please circle the number of children under 18 years of ages currently living in your household: 0..1……7 (If
more than 7 please specify(
→ In the past seven days, how many times did you go shopping at a retail shopping mall? ___ of times
→ In whole years, what is your current age? ____ years old

Primary Scale Basic Description Scale Common Marketing Permissible
characteristics examples examples Statistics
Nominal Numbers identify Description Social security Brand numbers, Percentages,
and classify numbers, numbers store types, Mode
objects of football players gender
classification
Ordinal Numbers indicate Description, order Quality rankings, Preference Percentile, mode
the relative ranking of teams in rankings, market median
positions of the a tournament position, social
objects but not the class
magnitude of [RANKING scales]
differences
between them
Interval Differences Description, order, Temperature Attitudes, Range, mean,
between objects distance (Fahrenheit, opinions, index standard deviation
can be compared, Celsius) numbers
zero point is [RATING scales]
arbitrary
Ratio Zero point is fixed; Description, order, Length, Weight Age, income, costs, Geometric mean,
ratios of scale distance, origin sales, market all statistics
values can be shares: write the
computed actual value down

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A Classification of Scaling Techniques

Types of Scaling
Comparative: ‘non-‐metric scaling’
• Scaling techniques in which there is a direct comparison of stimulus objects with one another
• e.g. comparing two brands on product quality
• Only ordinal or ranked measurements

Non-‐comparative: ‘metric scaling’
• Scaling technique in which each stimulus object is scaled independently of the others
• e.g. rating single brands on product quality (one at a time) rather than comparison to other object
• Most widely used scaling technique in market research
• Date are assumed to be interval
• Scales can be continuous or itemized
Comparative Scaling
Paired comparison
• Where respondents are given two objects at a time and asked to
select one on some criterion
• Data obtained is ordinal in nature
• Most widely used comparative scaling technique
• Used the stimulus objects are physical products
• Presents to company the frequency of first preferences
• Number of comparisons= [n (n-‐1)/2] (e.g. 4 brands= 6 evaluations, 5
brands= 10 evaluations)
• Disadvantages:
→ May force people to choose
→ People can be indifferent to categories
→ Only produces ordinal level data
→ Can produce an unwieldy amount of comparisons (10 jeans= 45 comparisons)
→ The order in which the alternatives are presented might bias the results
→ Consumers may prefer one to another however this doesn’t not imply that they hate the other alternative
Rank Order
• Respondents are given several objects at the same time and asked to
order them according to a criterion
• Second most popular comparative scaling technique
• Results in ordinal data
• Represents the shopping environment more than paired comparisons, takes less time
• Easily understood and results are easy to communicate
• Commonly used to measure preferences as well as attributed
• Disadvantages:
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→ It is possible that even the brand ranked 1 is not liked in an abosulte sense
→ No distance properties (can’t tell how far or close the dislike between flake and mars is etc.)
Constant Sum Scaling

• Respondents are required to allocate a constant sum of units amongst
objects with respect to a criterion
• The points are allocated to represent the importance attached to each
attribute
• Attributes are scaled by counting the points assigned to each one, and
dividing by number of respondents
• Ordinal in nature as allocation of points is influenced by attributes/answers
included
• Advantages: allows for fine discrimination among alternatives and does not require too much time
• Disadvantages:
→ The results are not generalizable or applicable to other objects not included in the study
→ Respondents can miss-‐add points-‐ the researcher then must adjust the data to 100 or eliminate the
respondent from analysis
Relative Advantages and Disadvantages of Comparative Scales

• Advantages:
→ Small differences between objects under study can be detected
→ Easy to understand and apply
→ Reduces halo or carry over effects: when earlier questions effect later responses
→ We aren’t making any assumptions in terms of the classification set (e.g. we aren’t assuming what respondents
are using to define if a Mars Bars is good on its own-‐ we know they are comparing it in terms of a Freddo)
• Disadvantages:
→ Forces respondent to choose between two items, particularly on ones they are indifferent about
→ Respondents may not have the background knowledge to make a comparison
→ Inability to generalize between the brands and products you are comparing
→ These disadvantages can be overcome by non-‐comparative scaling techniques (Chapter 10)

Diagram page 295
Acronyms
The four primary types of scales can be described as FOUR
• F igurative: norminal scale
• O rdinal scale
• U nconstrained zero point: interval scale
• R atio scale

The different comparative and non comparative scales can be represented by SCALES
• S emantic differential scale
• C onstant sum scale
• A rranged in order; rank order scale
• L ikert scale
• E ngaged: paired comparison scale
• S tapel scale

MKTG 2305 Chapter 10 Summary: Measurement and Scaling: Non-‐

comparative Scaling Techniques
A Classification of Non-‐Comparative Rating Scales
• Non-‐comparative scaling techniques: each stimulus is scaled
independently of other objects in the stimulus set. Often called
a monadic scale.
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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
Some Unique Rating Scale Configurations

Thermometer Scale
• Instructions: please indication how much you like
McDonald’s hamburgers by coloring in the
thermometer. Start at the bottom and colour up
to the temperature level that best indicates how
strong your preference is.

Smiling Face Scale
• Instructions: please point to the face that shows
how much you like the Barbie Doll. If you do not like the Barbie Doll at all, you would point to Face 1. If you liked it very
much you would point to Face 5.
Itemized Rating Scales

• The respondents are provided with a scale that has a number or brief description associated with each category
• The categories are ordered in terms of scale position, and the 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 the degree of
agreement or disagreement with each of a series of statements about
the stimulus objects-‐ from “strongly agree” to “strongly disagree”
• The analysis can be conducted by an item-‐on-‐item basis (profile
analysis), or a total (summated) score can be calculate
• When arrive at a total score, the categories assigned to the negative
statements by the respondents should be scored by reversing the scale
• They put in some negative questions to check if respondents are just
continuously checking a box
• Interval scale

Semantic Differential Scale
• The Semantic differential is a seven-‐point scale with end points
associated with bipolar labels that have semantic meaning
• 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.
• Individual items on a semantic differential scale may be scored on either a -‐3 to +3 or a 1 to
7 scale.
• Results are treated as interval data and analyzed using profile analysis-‐ mean or median are
calculated plotted and statistically analyses
• Differences across respondent groups can be compared

Stapel Scale
• Consists of a single adjective in the middle of an even-‐numbered range of values
• 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
• The data obtained by using a Stapel scale can be analyzed in the same way as semantic
differential data and is treated as interval data

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Scale Basic Examples Advantages Disadvantages

Characteristics
Continuous Place a mark on a Reactions to TV Easy to construct Scoring can be difficult and unreliable
Rating Scales continuous line commercials unless they are presented on a computer
screen
Itemized Rating Scale

Likert Scale Degree of Measurement of Easy for the researcher Takes longer to complete than other
agreement on a 1 attitudes to understand itemized rating scales-‐ respondents have
(strongly Suitable for mail, to read entire statement rather than
disagree) to a 5 telephone, personal or short phrase
(strongly agree) electronic interviews.
scale Difficult to interpret the response to a
Likert item-‐ especially if it is an
unfavorable statement (reversing an
item doesn’t have some meaning)
Semantial 7-‐point scale with Brand, product and Versatility Difficult to construct appropriate bi-‐polar
Differential bipolar labels company images adjectives (e.g opposite of calm)
Stapel Scale Uni-‐polar 10-‐ Measurement of Only using one adjective Can be seen as difficult and confusing to
point scale, -‐5 to attitudes and images has an advantage of apply
+5 without a semantic differentials in
neutral point that no pretest is needed
(zero) to assure the adjectives
are direct opposites

Simplicity of
construction lends itself
to telephone
interviewing

The advantages of this
scale warrant wider
applications than have
been made in the pasts
Example: MKTG 2305

• Using a Likert and Stapel Scale develop a question that would provide information on overall student satisfaction with
this course?
→ Likert: I’m satisfied with the overall quality of this course [Strongly disagree to Strongly agree]
→ Stapel: put ‘high satisfaction’ as objective in the middle [+5 to -‐5]
• What type of scale is this (NOIR) and what type of descriptive analysis could we use?
→ Both are interval scales
→ Mode, Median, Mean
• What scales could you use to directly compare this unit with other third year marketing units
→ Non-‐comparative scales

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Non Comparative Itemized Rating-‐Scale Decisions

Design Factor Guidelines
Number of categories While there is no single optimal number, traditional guidelines suggest there should be between 5
to 9 categories
Sensitivity of the scale is the ability to detect subtle differences in the attitude or characteristic
being measured
Increasing the number of scale categories increases sensitivity-‐ but don’t want too many categories
or it increase information processing demands on respondents
Balanced vs. Unbalanced In general the scale should be balances to obtain objective data
Balanced scale: a scale with an equal number of favourable and unfavorable categories (may have
a neutral category in the middle)
Odd vs. even number of If the researcher has reason to believe that a portion of the respondent population is actually
categories neutral on a particular subject, an odd number of categories should be used-‐one of which being a
neutral response to measure this
If the researcher wants to force a response or believes there is no neutral or indifferent response
than an even number should exist
Forced vs. non-‐forced In situations where the respondents are expected to have no opinion, the accuracy of the data may
be improved by a non-‐forced scale-‐ provides an option of “no opinion”, if one was not provided
this would distort measures of central tendency and variance
Verbal description An argument can be made for labeling all or many scale categories. The category definitions should
be located as close to the response categories as possible to reduce ambiguity.
The strength of the adjectives used to anchor the scale effect the responses-‐ strong anchors
(completely agree etc.) will result in more responses toward the mid point whereas weak anchors
(general agree) produce uniform or flat distributions-‐ depends on knowledge of the distribution of
the characteristic being measured along with the objectives of the study
Physical Form A number of options should be tried and the best one selected-‐ vertically vs. horizontally, boxes,
discrete lines, units on a continuum, have numbers assigned; Scale descriptors (very dissatisfied,
definitely will not buy etc.)
Developing a multi-‐item scale

• The Likert, Semantic Differential and Stapel Scales presented earlier to measure attitudes towards Macy’s are examples
of multi-‐item scales: a scale consisting of multiple items, where an item is a single question or statement to be
evaluated.
• Developing multiple-‐item scales requires considerable technical expertise

Scale Evaluation
• A multi-‐item scale should be evaluated for reliability and validity (diagram page 317)
• Total measurement error is the sum of systematic error and random error
→ Systematic error: affects the measurement in a constant way and represents stable factors that affect the
observed score in the same way each time the measurement is made
→ Random error: arises from random changes that have a different effect each time the measurement is made.
Reliability
• Reliability can be defined as the extent to which measures are free from random error
→ The extent to which a scale produces consistent results if repeated measurements are made of the
characteristic
• Popular approaches for assessing reliability:
→ Test-‐retest reliability: respondents are administered identical sets of scale items at two different times under
as nearly equivalent conditions as possible. The higher the degree of similarity the greater the reliability
→ Alternative forms of reliability: an approach for assessing reliability that requires two equivalent forms of the
scale to be constructed, and then measures the same respondents at two different times using the alternate
forms. Correlation between alternate forms= reliability
→ Internal-‐consistency reliability: used to assess the reliability of the summated scale and which refers to the
consistency with which each item represents the construct of interest.
o Split-‐half reliability: a form of internal consistency reliability in which the items contributing the scale
are divided into two halves and the resulting half scores are correlated (e.g. some will be given a
negative statement and some a positive)
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Validity
• The validity of a scale may be defined as the extent to which differences in observed scale scores reflect true
differences among objects on the characteristic being measured, rather than systematic or random errors.
• Researchers can assess validity in different ways:
→ Content validity: sometimes called face validity, involves a systematic but subjective assessment of how well a
scale measures the construct or variable of interest
→ Criterion validity: reflects whether a scale performs as expected given other variables considered relevant to
the construct (criterion variables) such as demographic and psychographic variables.
→ Construct validity: addresses the question of what construct or characteristic the scale is, in fact measuring-‐
requires that the researcher must have a strong understanding of the theory that provided the basis for
constructing the scale
o Convergent validity: is the extent to which the scale correlated positively with other measures of the
same construct
o Discriminant validity: the extent to which a measure does not correlate with other constructs from
which it is supposed to differ
o Nomological validity: the extent to which the scale correlates in theoretically predicted ways with
measures of different but related constructs
Relationship between reliability and validity

• Perfect validity requires that there be no measurement error [accurate]
• If a measure is perfectly valid it is also perfectly reliable.
• If a measure is unreliable it is invalid
• Reliability is a necessary, but not sufficient, condition for validity as systematic error might still be present.
Choosing a scaling technique

• Choosing an appropriate technique should consider factors such as:
→ Level of measurement desired (NOIR)
→ The experience of respondents with the research topic
→ The difficulty of administering the scales
→ The context
• The general rule is to select the lowest level of measurement that will enable the researcher to obtain the needed
information and conduct the appropriate statistical analyses
• Using multiple scale items to measure the same characteristic will improve the accuracy of results.
• Desirable to use more than one scaling technique

Diagram page 321
Acronym
The rating scale decisions may be described as RATING
• R esponse option: forced versus nonforced
• A trractive versus unattracted number of categories: balanced versus unbalanced
• T otal number of categories
• I mpartial or Neurtal category: odd versus even number of categories
• N ature and Degree of verbal description
• G raphics: physical form and configuration

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MKTG 2305 Chapter 1 Summary

Definition of Marketing Research

A Classification of marketing research

The role of marketing research in marketing

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The Marketing Research Process

Key points to note

The Decision to Conduct Marketing Research

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Overview of the marketing research industry

Selecting a Research Supplier

Preparation for a Career in Marketing Research

Current influences on the marketing research process

Predicted Trends in MR/ Contemporary issues

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3. Ethical issues in marketing involve 4 stake holders

Ethics in marketing research: the researcher

Summary diagram: page 54

Ethics in Marketing Research: the client

Ethics in Marketing Research: the Respondent

Marketing Research Associations Online

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MKTG 2305 Chapter 2 Summary: Defining the Market Research

The Problem Definition and Approach Development Process>>

Step One: Defining the Problem

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Parts of the Problem

Step two: Approach to the problem

Analytical Framework and Model

Research Questions and Hypothesis

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→ One tailed t test: one group buys more

Specification by information needed

Steps Leading to the Formulation of a Research Design >>

Basic Research Designs

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5. To gain insights for developing an approach to the problem

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Summary of Differences

Exploratory Conclusive Causal

Tasks Involved in formulating a research design

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MKTG 2305 Chapter 4 Summary: Exploratory Research Design and

Primary versus secondary data

Criteria used for Evaluating Secondary Data

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Categories used possible

Internal Secondary Data

External Secondary Data

Syndicated Sources Example: ACNielsen ScanTrack

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• Error: accuracy of data

MKTG 2305 Chapter 5 Summary: Exploratory Research Design:

Overview of syndicated services: from households/consumers

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tracking of new

Overview of syndicated services: from institutions

MKTG 2305 Chapter 6 Summary: Exploratory Research Design:

Qualitative vs. Quantative Data

Interviews with respondents who are competitors -‐ +

MKTG 2305 Chapter 10 Summary: Measurement and Scaling: Non-‐

Non Comparative Itemized Rating-‐Scale Decisions

Developing a multi-‐item scale