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Marketing Research

GSM5210

Lecture 9

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Marketing Research Process
Step 1: Problem Definition
Step 2: Development of an Approach to the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation
Screening and Cleaning Data
Step 1: Checking for errors

• Categorical variables – Frequency Analysis (i.e. gender, marital status, educ)

• Continuous variables – Descriptive Analysis (i.e. age)

Step 2: Finding the error in the data file

Step 3: Correcting the error in the data file


Preliminary Analyses
Descriptive statistics (Frequency Analysis or Descriptive Analysis)

• Describe the characteristics of respondents

• Testing of assumptions
Preliminary Analyses
Frequency Analysis

• For categorical variables (i.e. gender)

• SPSS: Analyze > Descriptive Stats > Frequencies


– Range
Preliminary Analyses
Descriptive Analysis

• For continuous variables (i.e. age, total perceived stress, total optimism)

• SPSS: Analyze > Descriptive Stats > Descriptives

– Range

– Mean

– Median

– Standard deviation

– Skewness (0=normal distribution), sensitive to sample size

– Kurtosis (0=normal distribution) , sensitive to sample size


Preliminary Analyses
Missing Value

• Exclude cases listwise (cases are totally excluded from all analyses)

• Exclude cases pairwise (exclude the case only if they are missing the data
required for a specific analysis)

• Replace with mean (inapplicable when a lot of missing values)


Preliminary Analyses
Assessing Normality (i.e. gender x total perceived stress)

• SPSS: Analyze> Descriptive Stats > Explore

• H0: The distribution of scores is normally distributed


– Kolmogorov-Smirnov test (for n>2000)

– Shapiro-Wilk test (for n = 3 to 2000)


Preliminary Analyses
Checking for outliers (i.e. gender x total perceived stress)

• SPSS: Analyze> Descriptive Stats > Explore


– Box plot, identify the cases

• Solution
– Remove all outliers

– Change the value


Class Participation
• Data file: staffsurvey.sav.
1. Generate appropriate descriptive statistics to answer the following questions:

(a) What percentage of the staff in this organisation are permanent employees?
(Use the variable employstatus) 61.2%

(b) What is the average length of service for staff in the organisation?
(Use the variable service) 5.03

2. Assess the distribution of scores on the Total Staff Satisfaction scale (totsatis)
for employees who are permanent versus casual (employstatus).

(a) Are there any outliers on this scale that you would be concerned about?
YES, PERMANENT, RES ID 343. FOR CASUAL, RESPONDENT ID 104
(b) Are scores normally distributed for each group?
Reliability of a Scale
• Scale’s internal consistency

• Are they all measuring the same construct


Reliability of a Scale
Cronbach alpha

• 0.6 to 0.9

• Low CA if fewer than 10 items


Reliability of a Scale
• SPSS: Analyze > Scale > Reliability Analysis
Class Participation
• Data file: staffsurvey.sav.

1. Check the reliability of the Staff Satisfaction Survey which is made up of the
agreement items in the datafile: Q1a to Q10a. None of the items of this scale
needs to be reversed.
Choosing the Right Statistical Test
Exploring relationships between continuous variables
• Pearson correlation
– Relationship between two continuous variables
• Factor analysis
– Reduce a large set of items down to a smaller, meaningful number of constructs
• Multiple regression
– Explore explanatory ability of a set of independent variables on one continuous dependent
variable
Choosing the Right Statistical Test
Exploring differences between groups
• T-tests
– Independent sample t-test: compare mean scores of two groups (i.e. males vs females)
– Paired sample t-test: compare mean scores of two sets of data (i.e. before and after)
• One-way analysis of variables (ANOVA)
– Repeated measures ANOVA: Compare mean scores on continuous variable of the same
sample on more than two occasions
– Between-groups ANOVA: Compare mean scores on continuous variable of two different
groups of people
Relationship between Continuous Variables:
Correlation
• Purpose:
– To describe the (1) direction and (2) strength of the linear relationship
between 2 variables
• Assumption:
– Linear relationship
• Pearson product-moment coefficient is used for
– Interval (continuous) variables or
– One continuous variable and one dichotomous variable
• Spearman rank order correlation is used for
– Ordinal variables or
– Ranked order
Relationship between Continuous Variables:
Correlation
• Pearson correlation coefficient (r)
– Range from -1 to +1
– Relationship: negative or positive… their interpretation?
– Strength of relationship

• Variance explained by a variable


– r x r = r2
Relationship between Continuous Variables:
Correlation
Do people with high levels of perceived control experience lower
levels of perceived stress?
• SPSS: Analyze > Correlate > Bivariate
Class Participation
• Data file: staffsurvey.sav.

Examine the relationship between Perceived Control of Internal States (PCOISS)


and a number of different adjustment measures: Mastery Scale (MAST), Positive
Affect Scale (PA), Negative Affect Scale (NA), and Satisfaction with Life Scale
(LifeSat)
Relationship between Continuous Variables:
Multiple Regression
• Purposes:
– How well a set of variables is able to predict a particular outcome
– Which variable is the best predictor of an outcome
• Major types of multiple regression
– Standard or simultaneous
– Hierarchical or sequential
– Stepwise
• Assumptions
– Sample size: 15 respondents per independent variable
– Multicollinearity: 0.3 to 0.9
– Tolerance: <0.1 indicates the presence of multicollinearity
– Normality: residuals should be normally distributed
Relationship between Continuous Variables:
Standard Multiple regression
• How well do the two measures of control (TMAST, TPCOISS) predict perceived stress
(TPSTRESS)?
• How much variance in perceived stress scores can be explained by scores on these two
scales?
• Which is the best predictor of perceived stress: control of external events (TMAST) or
control of internal states (TPCOISS)?
• SPSS: Analyze > Regression > Linear
Relationship between Continuous Variables:
Standard Multiple regression
• Step 1: checking the assumptions
– Multicollinearity
– Tolerance
– Outliers (residuals scatterplot, >3.3 and <-3.3 )
• Step 2: evaluating the model
– R-square (for large sample)
– Adjusted R-square (for small sample)
– Statistical significance of the model
• Step 3: evaluating each of the independent variables
– Statistical significant
• Step 4: interpreting the significant independent variables
– Standardized Coefficients (to compare the effect of IVs)
– Unstandardized Coefficients (to construct a regression equation)
Class Participation
• Data file: staffsurvey.sav.

Dependent variable: TPSTRESS


Independent variables: TPCOISS, TMAST, TMARLOW, AGE
Research Report
• Executive Summary
• Introduction
• Objective
• Conceptual Framework
• Research Methodology
• Findings
• Marketing Implications (Discussions)
• Conclusions

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