Dr. A. K. Dey
Reference Books
Business Research Methods
Cooper & Schindler
Objectives
Understand Marketing Research (MR) Understand relevance of MR for marketing decisions Develop appreciation of MR & its applications Know the procedure of conducting Develop familiarity with each step of procedure
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To gather more information before selecting a course of action To do a high-level research study To understand research design To evaluate and resolve a current management dilemma To establish a career as a research specialist
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Types of Studies
Reporting
To provide an account or summation of some data or generate some statistics
Descriptive
To discover answers to questions who, what, when, where and sometimes how
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Types of Studies
Explanatory
It goes beyond description and attempts to explain the reasons for the phenomenon that the descriptive study only observed Correlation Study or Hypothesis testing
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Types of Studies
Predictive
To predict when and in what situations the event will occur To also control a phenomenon once we can explain and predict it
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(cont.)
Following the standards of the scientific method (cont.) Adequate analysis for decisionmakers needs Findings presented unambiguously Conclusions justified Researchers experience reflected
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Manager-Researcher Conflicts
Managements limited exposure to research Manager sees researcher as threat to personal status Researcher has to consider corporate culture and political situations Researchers isolation from managers
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Need for MR
A manager takes decisions His responsibility is to reduce risk of failure in decision making Risk arises due to lack of relevant information A manager always seeks information to improve quality of decision making Information can be collected through MR Hence, MR is an important tool for managerial decision making
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Sources of Knowledge
Empiricists attempt to describe, explain, and make predictions through observation Rationalists believe all knowledge can be deduced from known laws or basic truths of nature Authorities serve as important sources of knowledge, but should be judged on integrity and willingness to present a balanced case
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Ways to Communicate
Exposition
descriptive statements that merely state and do not give reason
Argument
allows us to explain, interpret, defend, challenge, and explore meaning
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Understanding Concepts
A concept is a bundle of meanings or characteristics associated with certain events, objects, conditions, situations, and behaviors Concepts have been developed over time through shared usage
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Understanding Concepts
The success of research hinges on: how clearly we conceptualize how well others understand the concepts we use
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What is a Construct?
A construct is an image or idea specifically invented for a given research and/or theory-building purpose.
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Types of Variables
Independent Dependent Moderating Extraneous Intervening
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Types of Variables
Independent & Dependent
Leadership style & Employee performance or Job satisfaction Price of a product & Demand
Independent
Cause, Stimulus, Predictor, Antecedent
Dependent
Effect, Response, Criterion, Consequence
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Types of Variables
Moderating
In each relationship there is one Independent Variable (IV) & one Dependent Variable (DV) Moderating variable is a second independent variable that has significant effect on the originally stated IVDV relationship
Four day work week (IV) will lead to higher productivity (DV), especially among young workers (MV)
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Four day work week (IV) will lead to higher productivity (DV)
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Types of Variables
Extraneous
Infinite number of extraneous variables (EV) exist that might effect the relationship Most of such variables have little or no effect on the given situation and these may be ignored Others may have highly random occurrence as to have little impact For productivity example: election of a new mayor, rainy days, bird flu, strike etc
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Types of Variables
Intervening
Intervening variable (IVV) is defined as a factor which theoretically effects the observed phenomenon but can not be seen measured or manipulated Its effect can be inferred from the effects on the observed phenomenon
Four day work week (IV) will lead to higher productivity (DV) by increasing job satisfaction (IVV)
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Hypothesis types
Descriptive Relational: Correlation & Causal
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Types of Hypothesis
Descriptive
Describes the existence, size, form or distribution of some variables Eighty percent of shareholders of HLL favour increasing the companys cash dividend Do shareholders of HLL favour an increased cash dividend?
Encourages researcher to crystallize thinking Encourages to think about implications of either an accepted or rejected finding Useful for testing statistical significance
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Types of Hypothesis
Relational
Statements that describe the relationship between two variables with respect to some case Foreign (variable) refrigerators are perceived to be of better quality (variable) by Indian consumers (case)
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Philip Kotler
Purpose of MR
To improve quality of decision making process by providing information To help reduce the risk associated with managerial decision making
Risk due to two types of uncertainties:
Example : FORD Edsel car for youth
Scope of MR
Consumers of products & services
Product & product design Distribution Channels Advertising Impact
Pricing, Sourcing, Physical attributes Performance, Dealer Satisfaction, Own vs Multi-brand Image, Positioning, Media Planning, Message Content & Prioritizing Govt spending. Mood of the Industry, State of Economy
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MR Procedure
Five Steps
1.Problem Definition 2.Research Design 3.Field Work 4.Data Analysis 5.Report Preparation & Implementation
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Management Decision
4 3
2 1
Management Dilemma
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Management Decision
4 3 2
Introduce individual incentive? Quota based incentive? Advertise more? How can we improve sales in south?
Why are sales declining in south while sales are booming in all other regions?
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MR Procedure
Five Steps
1.Problem Definition 2.Research Design 3.Field Work 4.Data Analysis 5.Report Preparation & Implementation
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1. Problem Definition
Any situation requiring further investigation is a problem Not all problems require fresh MR to be carried out. Many can be decided upon based on past data, trend, experience
Distributor Credit Manufacturing out put Stocking level
Specific neither too broad nor too narrow Target outcome should be precise Should be manageable within time & resource available
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2. Market
3. Market Segment 4. Current Mkt Share 5. Problem
West Zone
---Not available Sales not picking up at the rate at which they should To find out the reason
West Zone with spl ref to Mumbai, Nashik, Pune & Nagpur
Office & Institutional Sector & NOT Households 12% over all 3% in Office & Inst Last year our growth 5% Industry grew by 25% To find out the reasons for shortfall in our growth rate in office & inst segments & suggest specific strategies followed by Brands A&B 58
6. MR Problem
2. Research Design
It spells out how to achieve stated MR objectives Consists of
Data Collection Method Specific Research Instruments Sampling Plan
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2. Research Design
Data Collection Method
Secondary Data Primary Data
Observation Survey (Most widely used) Experimentation
Sampling Plan
Who How How How is to be surveyed? many? are they to be selected? are they to be reached? Sampling unit Sample size Sampling Procedure Sampling Media
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3. Field Work
Involves planning, execution, supervision & checking for errors MR must be planned & executed well so as to complete within resource & time limits Progress to be closely monitored to avoid time & cost overrun Extensive back checks & spot checks will improve the quality of MR output
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4. Data Analysis
Done in two phases
Classification of raw data
Quantitative vs Qualitative Chronological, Geographical, Demographic
4. Data Analysis.Contd.
Analytical Methods Four classes:
Tests of Significance :Sampling Statistics, Chi Square Analysis & Analysis of Variance Explaining Observed difference I: Cross Tabulation, Correlation & Regression Explaining Observed difference II: Linear Discriminant Analysis & Automatic Interaction Detector Identifying Interdependencies: Cluster, Factor & Conjoint Analysis
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5. Report Presentation
Report must have following sections
Executive Summary Objectives & Methodology Summary, Conclusion, Recommendation Sample Characteristics & Basis of selection Detailed findings Questionnaires & other supporting documents
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Marketing Research
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Secondary Research
Internal Sources
Company Accounts Internal Reports and Analysis Stock Analysis Retail data - loyalty cards, till data, etc.
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External Sources
Government Statistics Trade publications Commercial Data IMRB, Gallup, Mintel, etc. Household Expenditure Survey Magazine surveys Other firms research Research documents publications, journals, etc.
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Sampling Methods
Sampling Methods: Probability Methods: Random, Stratified Random, Cluster Non Probability Methods: Convenience, Quota, & Judgment
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Snowball Sampling
Samples developed from contacts of existing customers word of mouth type approach!
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Primary Research
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Primary Research
Primary Research
First hand information Expensive to collect, analyse and evaluate Can be highly focussed and relevant Care needs to be taken with the approach and methodology to ensure accuracy Types of question Closed limited information gained; Open useful information but difficult to analyse
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Marketing Research
Advantages of Marketing Research
Helps focus attention on objectives Aids forecasting, planning and strategic development May help to reduce risk of new product development Communicates image, vision, etc. Globalisation makes market information valuable (HSBC adverts!!)
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Marketing Research
Disadvantages of Marketing Research
Information only as good as the methodology used Can be inaccurate or unreliable Results may not be what the business wants to hear! May stifle initiative and gut feeling Always a problem that we may never know enough to be sure!
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