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UNIT II
THE PROCESS OF DEFINING THE PROBLEM & DEVELOPING AN APPROACH
Factors to be considered in the environmental context of the problem
There are following:
Past Information & ForecastsRecourses & Constraints
Objectives
Buyers behaviour
legal Environment
Economic Environment
Marketing & Technological Skills
Management decision problems Vs marketing Decision problems
Management Decision problem Marketing Decision Problem
Should be new product is introduced? To determine consumer preferences and purchase intentions for
the proposed new Product
Should be Advertising campaign be changed? To determine the effectiveness of the current advertising
campaign
Should the price of the brand be changed? To determine the price elasticity of demand and the impact on thesales and profits of various levels of price changes
RESEARCH DESIGN
Tasks Included
Discussions with
Decision Makers
Interviews with
Experts
Secondary
Data Analysis
Qualitative Research
Environmental Context of the problem
Problem Definition
Management Decision Problem
Marketing Research Problem
Approach to the Problem
Objective/
Theoretical
Foundations
Analytical Model:
Verbal, Graphical,
Mathematical
Research
Questions
Hypothesis Specification of
Information
Needed
Research Desi n
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A Research Design is purely and simply the framework or plan for a study that guides the collection and analysis of the data.
"A research design is the heart of marketing research project. It outline how the marketing research programme will be conducted, guide,
data collection analysis and report preparation"
" A research design is a framework for conducting the marketing research project. It specifies the details of the procedure necessary for
obtaining information needed to solve marketing research problems"
RESEARCH DESIGN: CLASSIFICATION
A. EXPLORATORY RESEARCH DESIGN
In general Exploratory research is meaningful in any situation where the researcher does not have enough
understanding to proceed with the research project. Usually conducted during the initial stage of the research process
Purposes
To narrow the scope of the research topic, and
To transform ambiguous problems into well-defined ones Alternates courses of action Establish priorities for further research
Secondary Data Analysis in a qualitative way Secondary data are data previously collected & assembled for some projects.
Pilot Studies A collective term for any small-scale exploratory research technique that uses sampling but does not apply rigorous
standards
Includes Focus Group Interviews
Unstructured, free-flowing interview with a small group of people Projective Techniques
Indirect means of questioning that enables a respondent to project beliefs and feelings onto a thirdparty
Word association tests, sentence completion tests, role playing Case Studies
Intensively investigate one or a few situations similar to the problem situation
A. Exploratory Research Design
One type of research design which has
its primary objectives the primary
insights & understanding the problem
B. Conclusive Research Design
Research design to assist the decision
maker in determining, evaluating &
selecting the best course of action to
taken in a given solution
a. Descriptive Research b. Causal Research
1. Cross-Sectional Design 2. Longitudinal Design
i. Single Cross-Sectional
Design
ii. Multi Cross-Sectional
Design
Research Design
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Experience Surveys Individuals who are knowledge about a particular research problem are questioned
B. CONCLUSIVE RESEARCH DESIGN
Research design to assist the decision maker in determining, evaluating & selecting the best course of action to taken in a given solution
Provide specific information that aids the decision maker in evaluating alternative courses of action Sound statistical methods & formal research methodologies are used to increase the reliability of the information Data sought tends to be specific & decisive Also more structured & formal than exploratory data
Conclusive Research is further segmented into two parts. There are
a. Descriptive Research
Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respectto variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correlation
study which investigates the relationship between variables, to developmental studies which seek to determine changes over time.
Exploratory research should be conducted first when followed by descriptive research. A Descriptive Design requires a clearspecification of Who, When, what, where, why & way of the research. The six Ws of a descriptive research design might be:
i. Who -- Who should be considered aconsumer of mixed chocolate pineapple
cookies? Some possibilities are:
Anyone who buys cookies
Anyone who buys premium priced
cookies
Anyone who buys chocolate cookies
Anyone who has bought Sweet
Brand cookies
ii. Where -- Where should the respondents be
contacted to obtain the required information?
Some possibilities are:
In the grocery storeAt home
In the parking lot
iii. When -- When should the information be
obtained from the respondents? Some
possibilities are:
Before purchasing their groceries
While purchasing their groceries
Immediately after purchasing their
groceriesWithin 2 weeks of purchasing their
groceries
iv. What -- What information should beobtained from the respondents? Some
possibilities are:
DemographicsPsychographics and Lifestyles
Attitude toward the chocolate
pineapple cookies
Attitude toward the premium price
v. Why -- Why are we obtaining information
from the respondents? Some possibilities are:
Determine consumer attitudinal
reaction to the new cookie
Determine the market sizevi Way -- The possible ways in which we are
going to obtain information from the
respondents. Some possibilities are:
Observational techniques
Scanner Data
Personal interview
Mail interview
Telephone interview
Electronic interview
Examples:
Market Studies: Which describe the size of market, buying power of customers, availability of distributors, and consumer profiles.Market share studies: Which determine the proportion of total sales received by a company and its competitors.
Sales Analysis Studies: Which describe the sales by geographic region, product line, type and size of the account.Image Studies: Which determine the consumer preventions of the firm and its products
Product usage studies: Which describe consumption patterns.
Pricing Studies: Which describe the range and frequency of the price change and probable consumer response to proposed price
change.Advertising Studies: Which describe media consumption habits and audience profiles for specific television programmes and
magazines
Descriptive research Design divide into two parts further. There are
1. Cross-Sectional DesignCross Sectional design involve the collection of information from the given sample of population elements only once.
Cross-sectional studies provide a 'snapshot' of the outcome and the characteristics associated with it, at a specific point in time.
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For example, if a researcher observes the buyer behaviour of randomly picked people in a mall and then analyzes the data gathered,
then such a study will be called a cross-sectional study.
i. Single Cross-Sectional Design
A cross-sectional design in which one sample of respondents is drawn from the target population and information is obtained from this
sample size.
ii. Multi Cross-Sectional Design
A multi Cross-sectional design consisting of a series of surveys conducted at appropriate time intervals. The cohort refers to the group of
respondents who experience the same event within the same time interval.
2. Longitudinal Design
A type of research design involving a fixed sample of population elements that is measured repeatedly on the same variables. Thesample remain the same over time, thus proved a series of pictures which, when view together and change that are taking place over
time.
A basic type of research method in which subjects are tested one or more times after initial testing. Typically, subjects are assigned
randomly to an experimental group (e.g. a group that performs a specific type of training) and a control group after the initial testing.
Both the experimental and the control groups are tested again simultaneously one or more times during the period of the study. In thisway, the effects of an experimental procedure can be measured over a period of time
For example, if a researcher observes the buyer behaviour of randomly picked people in a mall and then analyzes the data gathered,
then such a study will be called a cross-sectional study. On the other hand, longitudinal design involves collecting data periodically
from a fixed sample of respondents. Thus, a longitudinal study provides a series of pictures which, when viewed together, portray a
vivid illustration of the situation and the changes that are taking place.
Compared to cross-sectional design, longitudinal design is more effective in detecting change, more accurate, and provides a larger
amount of data.b. Causal Research
A causal research design allows you to understand cause-and-effect relationships. It is intended to answer specific marketing research
questions to assist management decision making.
Cross-Sectional vs. Longitudinal Designs
Basis Cross-Sectional Longitudinal
Detecting change Worse Better
Amount of data collected Worse Better
Accuracy Worse Better
Representativeness Better Worse
Response bias Better Worse
Comparison of Research Designs
Basis Exploratory Descriptive Causal
Purpose ID problems, gaininsights
Describe things Determine cause-and-effect relationships
Assumed
backgroundknowledge
Minimal Considerable Considerable
Degree of
structure
Very little High High
Flexibility High Some Little
Sample Non-representative Representative Representative
Research
environment
Relaxed Formal Highly controlled
Cost Low Medium High
Findings Preliminary Conclusive Conclusive
Experimental research Design
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Experimental Research - An attempt by the researcher to maintain control over all factors that may affect the result of an experiment.In doing this, the researcher attempts to determine or predict what may occur.
Experimental Design - A blueprint of the procedure that enables the researcher to test his hypothesis by reaching valid conclusions
about relationships between independent and dependent variables. It refers to the conceptual framework within which the experiment isconducted.
Steps involved in conducting an experimental study
Identify and define the problem.
Formulate hypotheses and deduce their consequences.
Construct an experimental design that represents all the elements, conditions, and relations of the consequences.1. Select sample of subjects.
2. Group or pair subjects.
3. Identify and control non experimental factors.
4. Select or construct, and validate instruments to measure outcomes.
5. Conduct pilot study.
6. Determine place, time, and duration of the experiment.
7.Conduct the experiment.
8.Compile raw data and reduce to usable form.
9.Apply an appropriate test of significance.
Classification of Experimental Design
A. Preexperimental Design:
Design that don't control for extraneous factors by randomization. Examples of these design include the One-shot case
study, One-Group pretest-posttest, & Static Group.
1. One-Shot Case Study
One-shot Case Study symbolically represented as
X O1A single group of test units is exposed to treatment X, and than a single measurement on the dependent variable is taken (O1). There are
no random assignment of test units. Note that the symbol R is not used, because the test units are self selected or select arbitrarily by the
researcher. One shot Case Study is more appropriate for exploratory than conclusive research.
2. One-Group pretest-posttest
The one-group pretest-posttest design may be symbolized as
O1 X O2
In this design, a group of test units is measured twice. There is no control group. First, a pre-treatment measure is taken (O1), then the
group is exposed to treatment (X). Finally, a posttreatment measure is taken(O2). The treatment effect is computed as O2-O1.
3. Static Group
The Static Group design may be symbolized as
EG: X O1CG: O2
The Static Group a two-group experimental design. The experimental group (EG) is exposed to the treatment, and the control group (CG )
is not Measurements on both groups are made only after the treatment Test units are not assigned at random. The treatment effect would be measured as
Experimental Designs
A. Preexperimental B. True Experimental C. Quasi-
Ex erimental
D. Statistical
1. One-Shot Case
Study
2. One-Group pretest-posttest
3. Static Group
1. Pretest-Posttest
Control Group
2. Posttest-onlycontrol group
3. Solomon Four-
group
1. Time Series
2. Multiple Time
Series
1. Randomized
Blocks
2. Latin Square
3. Factorial
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O1-O2
B. True Experimental Design
Experimental Research design distinguished by the fact that the researcher can randomly assign test units to experimental groups and
also randomly assign treatments to experimental. In true experimental design, the researcher randomly assigns test units to experimental
groups and treatments to experimental groups.
1. Pretest-Posttest Control Group
This design symbolized as
EG: R O1 X O2CG: R O3 O4
In this design, test units are randomly assigned to either the experimental or the control group, and a pre-treatment measure is taken oneach group. Only the experimental group is exposed to the treatment, but posttest measures are taken on both groups. The treatment
effect(TE) is measured as
(O1-O1)-(O4-O3)
2. Posttest-only control group
This design symbolized as
EG: R X O1CG: R O2
The treatment effect is obtained by
TE= O1-O2
This design is fairly simple to implement. Because there is no premeasurement, the testing effects are eliminated, but this design issensitive to selection bias and morality. It is assumed that the two groups are similar in terms of pretreatment measures on the dependent
variable, because of the random assignment of the test units to groups. However there is no pretreatment measurement, this assumption
cannot be checked.
3. Solomon Four-group
This design is also called the four group six study design. This test overcomes the limitations of pretest - post test control group designs.
This design is infect a combination of`
Before After with one control group' and `After only with one control Group' designs. The design
is symbolically presented as:
Experimental Groups : R O1
X O2
Control Groups : R O3
O4
Experimental Groups : R O6
Control Groups R O6
You may note that the experimental group 2 and control group 2 do not receive any pretest measurements. The results of group 2 help us
in measuring and eliminating the sensitizing testing - effect since this type of sensitizing cannot occur in measurement 05. The results of
the difference of various pretest and post test measurements give us the following effects.
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3. Factorial
Factorial Design Is used to measure the effects of two or more independent variables at various levels.
In a two-factor design, each level of one variable represents a row and each level of another variable represents a column. Research study for
finding out whether the effect of training provided to students in a class differs depending on whether training is provided in-class or
outside, as well as the duration of training per week. A factorial design may also be conceptualized as a table.
Limitations of Experimentation
1. Experiments can be time consuming, particularly if the researcher is interested in measuring the long-term effects.2. Experiments are often expensive. The requirements of experimental group, control group, and multiple measurements significantly add to the cost of research.3. Experiments can be difficult to administer. It may be impossible to control for the effects of the extraneous variables, particularly in a field environment.4. Competitors may deliberately contaminate the results of a field experiment
Data Collection Sources
(Find the attached document ref. 8.1)
Primary and Secondary Data:
Primary Data- Primary data is the data which is collected first hand specially for the purpose of study. It is collected for addressing the
problem at hand. Thus, primary data is original data collected by researcher first hand.
Secondary data- Secondary data is the data that have been already collected by and readily available from other sources. Such data are
cheaper and more quickly obtainable than the primary data and also may be available when primary data can not be obtained at all.
Data which are originally collected by the investigators are called primary data, while the secondary data are collected through some
other sources. For example, information collected by an investigator from a. student regarding his class, caste, family background, etc.,is called primary data.
There are various types of quantitative primary data gathering tools, but the important ones among them are
1. The Questionnaire2. The Interview Schedule
The questionnaire can be broadly categorized into two types:
i) structured questionnaire
ji) unstructured questionnaire.
i) Structured questionnaires are prepared in advance. They contain definite and concrete questions. The structured questionnaire may
contain close ended questions and open ended responses. In the close ended questionnaire, the question setter gives alternative optionsfor which the respondent has to give definite response. The best example of the close ended questionnaire format is the one that leads
respondents to the "Yes" or "No"/ "True" or "False" answers.
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ii) Unstructured questionnaires are those that are not structured in advance, and the investigators may adjust questions according totheir needs during an interview.
1. Questionnaire
A questionnaire is a series of questions asked to individuals to obtain statistically useful information about a given topic. Questionnaires
are frequently used in quantitative marketing research and social research.
Types of questionnaire
1. Structured questionnaire
a) Have definite and concrete questions.
b) Is prepared well in advance.
c) Initiates a formal inquiry.
d) Supplements and checks the data, previously accumulated.
e) Used in studies of the economics and the social problems,
studies of the administrative policies and changes etc.
2. Unstructured questionnaire
a) Used at the time of the interview.
b) Acts as the guide for the interviewer.c) Is very flexible in working.
d) Used in studies related to the group of families or those
relating to the personal experiences, beliefs etc.
A questionnaire can also be divided as the follows dependingon the nature of the questions therein
1. Open ended questionnaire
a) Respondent is free to express his views and the ideas.
b) Used in making intensive studies of the limited number of
the cases.
c) Merely an issue is raised by such a questionnaire.d) Do not provide any structure for the respondents reply.
e) The questions and their orders are pre determined in the
nature.
2. Close ended questionnairea) Responses are limited to the stated alternatives.
b) One of the alternatives is simply YES or NO.
c) Respondent cannot express his own judgment.
3. Mixed questionnairea) Questions are both close and open ended.b) Used in field of social research.
4. Pictorial questionnaire
a) Used very rarely.
b) Pictures are used to promote the interest in answering thequestions.
c) Used in studies related to the social attitudes and the pre judices in the children
.
Questionnaire Process
Specify the information
needed
Determine the question
wording
Decide on the question
Design the questions to overcome the
respondent's
Determine the content of
individual uestions
Specify the type of
interviewing method
Arrange the question in
Identity the form & layout
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Advantages of the Questionnaire
1. Requires less skill.2. Less training is needed.
3. Cheaper in nature.
4. Also impersonal in nature.
5. Pressure is less.
6. Anonymity.
Disadvantages of the Questionnaire
1. Returns are low if compared to the other methods used forthe collection of the data.
2. Response is also less.
3. Less flexible in working.
4. Occurrence of errors.
5. Less reliable.6. Sometimes answers obtained can be wrong.
7. Not efficient in the depth problems.
Precautions in Preparation of Questionnaire
Know how (and whether) you will use the results of your research before you start. If, for example, the results won't influenceyour decision or you can't afford to implement the findings or the cost of the research outweighs its usefulness, then save your
time and money; don't bother doing the research.
The research objectives and frame of reference should be defined beforehand, including the questionnaire's context of time,budget, manpower, intrusion and privacy.
How (randomly or not) and from where (your sampling frame) you select the respondents will determine whether you will beable to generalize your findings to the larger population.
The nature of the expected responses should be defined and retained for interpretation of the responses, be it preferences (ofproducts or services), facts, beliefs, feelings, descriptions of past behavior, or standards of action.
Unneeded questions are an expense to the researcher and an unwelcome imposition on the respondents. All questions shouldcontribute to the objective(s) of the research.
If you "research backwards" and determine what you want to say in the report (i.e., Package A is more/less preferred by X% ofthe sample vs. Package B, and y% compared to Package C) then even though you don't know the exact answers yet, you will be
certain to ask all the questions you need - and only the ones you need - in such a way (metrics) to write your report.
The topics should fit the respondents frame of reference. Their background may affect their interpretation of the questions.Respondents should have enough information or expertise to answer the questions truthfully. The type ofscale, index, or typology to be used shall be determined. The level of measurement you use will determine what you can do with and conclude from the data. If the response option is
yes/no then you will only know how many or what percent of your sample answered yes/no. You cannot, however, conclude
what the average respondent answered.
The types of questions (closed, multiple-choice, open) should fit the statistical data analysis techniques available and yourgoals.
Questions and prepared responses to choose from should be neutral as to intended outcome. A biased question or questionnaireencourages respondents to answer one way rather than another. Even questions without bias may leave respondents with
expectations.
The order or "natural" grouping of questions is often relevant. Prior previous questions may bias later questions. The wording should be kept simple: no technical or specialized words. The meaning should be clear. Ambiguous words, equivocal sentence structures and negatives may cause misunderstanding,
possibly invalidating questionnaire results. Double negatives should be reworded as positives.
If a survey question actually contains more than one issue, the researcher will not know which one the respondent is answering.Care should be taken to ask one question at a time.
The list of possible responses should be collectively exhaustive. Respondents should not find themselves with no category thatfits their situation. One solution is to use a final category for "other ________".
The possible responses should also be mutually exclusive. Categories should not overlap. Respondents should not findthemselves in more than one category, for example in both the "married" category and the "single" category - there may be need
for separate questions on marital status and living situation.
Writing style should be conversational, yet concise and accurate and appropriate to the target audience. Many people will not answer personal or intimate questions. For this reason, questions about age, income, marital status, etc.
are generally placed at the end of the survey. This way, even if the respondent refuses to answer these "personal" questions,
he/she will have already answered the research questions. "Loaded" questions evoke emotional responses and may skew results. Presentation of the questions on the page (or computer screen) and use of white space, colors, pictures, charts, or other graphics
may affect respondent's interest or distract from the questions.
Reproduce the
questionnaire
Pretest the questionnaire
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Numbering of questions may be helpful. Questionnaires can be administered by research staff, by volunteers or self-administered by the respondents. Clear, detailed
instructions are needed in either case, matching the needs of each audience.
2. Interview Method
An interview is a conversation between two people (the
interviewer and the interviewee) where questions are asked by
the interviewer to obtain information from the interviewee.
According to Vivien Palmar, the interview constitutes a socialsituation between the two persons, the psychological process
involved requiring both the individuals mutually respond
through the social research. The purpose of the interview calls
for a varied response from the two parties concerned.
Following are the types of Interview methods widely used for data collection in Research Methodology
A. According to the formality(a) Formal interview
Set of well defined questions are presented by the interviewer.
Answers are noted down according to the given rules.
(b) Information interview
Full authority is with the interviewer for carrying out the
needed alterations in the various questions.
B. According to number(a) Personal interview
Single person is interviewed.
Close personal contracts between the interviewer and the
interviewee can be established. Uneconomical of time and money.
Intimate and the personal aspects of the individual can be
obtained.
(b) Group interview
Two or more persons are interviewed.
Helps in gathering the routine information.
Economical of time and money.
Information obtained is very superficial in nature.
C. According to purpose(a) Diagnostic interview
Helps in knowing the causes or the cause of a malady.
Useful in the clinical psychology and also in the
psychoanalysis.
(b) Treatment interview
On the diagnosis of the cause of the psychological malady
further interviews are conducted.
By these interviews, patient comes to know about his malady
which may be due to the mental, complex or the faulty life
style.
(c) Research interview
Helps to collect the data about a particular research problem. Questions to be asked during the interview are pre
determined.
(d) Interviews to fulfil curiosity
Used to satisfy some of the questions that are lurking in the
mind of a scientist.
D. According to the period of contact
(a) Short contact interview
Helps in filling up the schedules, tables etc.
A short duration of such an interview is sufficient.
(b) Prolonged contact interview In contact with research by schedule, the case history method
needs prolonged interviews.
E. According to subject manner
(a) Qualitative interview
Involve non quantifiable subject matter.
For e.g. interviews held for the case studies.
(b) Quantitative interview Certain facts for a large number of persons are gathered.
For e.g. census interviews.
(c) Mixed interview Both routine and specialized data is sought.
Some of it may be quantifiable while some of it may be non
quantifiable.
F. According to role
(a) Non Directive interview
Also called free or unstructured interview.
Interviewer has no control over things in such an interview.
Interviewer provides no direction.
Interviewer has no predetermined set of questions for asking. The informant is free to explain or tell his experience.
(b) Focused interview
Focuses attention on the given experience of the respondent
and its effects.
Interviewer knows in advance about the aspects of the
question he has to cover.
Used in the development of the hypothesis.
(c) Repeated interview
Helps in understanding the development of the processes.
Helps in knowing the aspects affecting the behaviour pattern.
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Advantages of the interview method1. Very good technique for getting the information about the
complex, emotionally laden subjects.
2. Can be easily adapted to the ability of the person being
interviewed.
3. Yields a good percentage of returns.
4. Yields perfect sample of the general population.
5. Data collected by this method is likely to be more correct
compared to the other methods that are used for the data
collection.
Disadvantages of the interview method1. Time consuming process.
2. Involves high cost.
3. Requires highly skilled interviewer.
4. Requires more energy.
5. May sometimes involve systematic errors.
6. More confusing and a very complicated method
3. Survey Method
According to Shelly M. Harrison, social survey is a, comparative undertaking which applies scientific method to the study and the
treatment of the currently related social problems and the conditions having definite geographic limit and bearing, plus such a spreadingof facts, conclusions and recommendations as will make them, as far as possible, the common knowledge of the community and a force
for the intelligent coordinated action.
Types of Surveys
1. Factual Survey
Needs factual information.
2. Opinion Survey
Opinion of the person interrogated is used to make an
evaluation on a certain method.
3. Interpretive Survey
The person interviewed has to do more than just reporting afact.
Acts as an interpreter.
4. General Survey
Conducted to collect the general information.
Involves no particular hypothesis.
E.g. census of population.
5. Specific Survey
Conducted mainly to study some specific problems.
Helps in testing of the certain theories or hypotheses.
Are very much to the point.
Only information directly related to the particular purpose iscollected.
6. Regular Survey
Repeated after regular time intervals.
Economic surveys are type of regular surveys.
Are carried on by permanent machinery created for collecting
the information.
7. Ad hoc Survey
Are under taken once for all.
May be sometimes conducted in phases if the area of the
investigation is very large.
Help in testing a hypothesis.
Helps in supplementing the missing information relating to
any research problem.
8. Preliminary Survey
Also called as the pilot study.
Occupies the place of fore running of the final survey.
Helps in getting the first hand knowledge of the universe to besurveyed.
Helps in preparing the schedule or the questionnaire.
Helps in the organization of the survey on the proper lines.
9. Census Survey
Every single unit in the universe is contacted to collect the
information. Is a very time consuming process.
10. Sample Survey Very convenient and time saving in nature.
Small part of the universe is taken as the representative of the
whole.
Results obtained from this small part are applied to the whole
universe.
11. Official Survey
Conducted by the government through its departments.
12. Semi Official Survey
Conducted by the quasi government bodies like the universities,
corporations etc.13. Private Survey
Conducted by the individuals, associations, and the institutions
etc., which are non government agencies.
14. Confidential Survey
Results and the data collected are kept secret.
15. Public Survey
Results and data collected are shared with people i.e. are
available for public.
Characteristics of the Social Survey1. Are less intensive in nature and also involve widely
dispersed group of people.
2. Data collected in a social survey can act as a proper base for
carrying out further the various social research operations.3. Helps in making the assertion about the distribution of the
characteristics in a population.
4. Helps in carrying out the study of specific current problems
of the society only.
5. Uses methods like observation, interview etc for collecting
the data.
Objectives of the Survey1. Collecting general information.
2. To provide data that later helps in the formulation of the
hypothesis.
3. To enable the researcher to have direct and close contact withthe process or the phenomenon, that is being studied.
4. To know the people better by knowing their opinions and
their attitudes.
5. To explain the relationship between the various variables.
6. To refine and expand the old theories in order to get the new
theories.
Advantages of Survey1. Researcher is able to directly get involved with the people
from whom he wants to get the information.2. The results obtained from this method are not based on any
type of theory but instead are based on the actual facts of the
life.3. Very helpful in the testing of the validity of the theories.
4. Offers greater objectivity.
5. Very less possibilities of existence of the personal bias.6. Help in the formulation of the hypothesis.
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Disadvantages of survey.
1. Very expensive.
2. Very time consuming.
3. Wasteful method.
4. Less reliable.
5. Sometimes personal bias may vitiate the results.
6. Deals with the problems relating to the immediate
importance only.
7. Occurrence of the non response errors.
B. Secondary Sources of data collection
Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and morequickly obtainable than the primary data and also may be available when primary data can not be obtained at all.
There are two major Secondary sources of data collection
1. Internal Sources of secondary data collection
Internal secondary data is usually an inexpensive information source for the company conducting research, and is the place to start for
existing operations. Internally generated sales and pricing data can be used as a research source. The use of this data is to define the
competitive position of the firm, an evaluation of a marketing strategy the firm has used in the past, or gaining a better understanding of
the companys best customers.
There are three main sources of internal data. These are:
1. Sales and marketing reports. These can include such things as:
Type of product/service purchased Type of end-user/industry segment Method of payment Product or product line Sales territory Salesperson
Date of purchase Amount of purchase Price Application by product Location of end-user
2. Accounting and financial records. These are often an overlooked source of internal secondary information and can be invaluable in the
identification, clarification and prediction of certain problems. Accounting records can be used to evaluate the success of various
marketing strategies such as revenues from a direct marketing campaign.
The basis for accounting records concerned with sales is the sales invoice. The usual sales invoice has a sizable amount of information on it, which generally includes name of customer, location of
customer, items ordered, quantities ordered, quantities shipped, dollar extensions, back orders, discounts allowed, date.
In addition, the invoice often contains information on sales territory, sales representative, and warehouse of shipment. This information, when supplemented by data on costs and industry and product classification, as well as from sales calls,
provides the basis for a comprehensive analysis of sales by product, customer, industry, geographic area, sales territory, andsales representative, as well as the profitability of each sales category.
Unfortunately, most firms' accounting systems are designed primarily for tax reasons rather than for decision support.3. Miscellaneous reports. These can include such things as inventory reports, service calls, number (qualifications and compensation) of
staff, production and R&D reports. Also the companys business plan and customer calls (complaints) log can be useful sources ofinformation.
2. External Sources of secondary data collection
External Sources are sources which are outside the company in
a larger environment. Collection of external data is more
difficult because the data have much greater variety and the
sources are much more numerous
a). Published materialsSources of Published external secondary data include federal,
state, and local govt., non-profit organisations, trade
associations and professional marketing research firms.
Published secondary data classified further into two categories
I). General Business Sources
i) Guides
Guide are an excellent source of standard or recurring
information. Like AMA Bibliography Series, Business info
sources, market Analysis and Encyclopaedia of business info
sourcesii) Directories
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Brief descriptions of Individuals or Organisations Like:
Organisation directories, The directory of MR Report, Studies
& Survey etc.
iii) Index
It is possible to locate information on aperticular topic in
several different publications by using an index.
iv) Statistical data
Market & Industry statics etc.
II) Govt. Sources
The Govt. produce large amount of secondary datai) Census
The Census is the world's largest sources of statistical data.
ii) Other Govt. Publications
Government sources provide an extremely rich pool of data for
the researchers. In addition, many of these data are available
free of cost on internet websites. There are number of
government agencies generating data. These are:
i. Registrar General of India- It is an office whichgenerate demographic data. It includes details of
gender, age, occupation etc.
ii. Central Statistical Organization- This organizationpublishes the national accounts statistics. It containsestimates of national income for several years, growth
rate, and rate of major economic activities. Annual
survey of Industries is also published by the CSO. It
gives information about the total number of workers
employed, production units, material used and value
added by the manufacturer.
iii. Director General of Commercial Intelligence- Thisoffice operates from Kolkata. It gives information
about foreign trade i.e. import and export. These
figures are provided region-wise and country-wise.
iv. Ministry of Commerce and Industries- Thisministry through the office of economic advisorprovides information on wholesale price index. These
indices may be related to a number of sectors like
food, fuel, power, food grains etc. It also generates All
India Consumer Price Index numbers for industrial
workers, urban, non manual employees and cultural
labourers.
v. Planning Commission- It provides the basic statisticsof Indian Economy.
vi. Reserve Bank of India- This provides information onBanking Savings and investment. RBI also preparescurrency and finance reports.
vii. Labour Bureau- It provides information on skilled,unskilled, white collared jobs etc.
viii. National Sample Survey- This is done by theMinistry of Planning and it provides social, economic,demographic, industrial and agricultural statistics.
ix. Department of Economic Affairs- It conductseconomic survey and it also generates information on
income, consumption, expenditure, investment,
savings and foreign trade.
x. State Statistical Abstract- This gives information onvarious types of activities related to the state like -
commercial activities, education, occupation etc.
b) Computerised Data
Online
Database store in computers, which require a
telecommunications network to access.
Offline
CD-ROM (Telephone Directory)
Internet
Internet database can be accessed, search & analyzed on the
internet. Like: Google
a. Bibliographic Databases
Composed of citations to articals in journals, Magazines,
Newspapers, Market research study, Govt. Documents etc.
b. Numeric Databases
Numeric database containing numerical &statistical
information.c. Full-Text Databases
Database containing the compute text of secondary source
documents comprising the database.
d. Directory Databases
Provide Information on individuals, organisations & Services.
e. Special-Purpose Databases
Database that contain information of a specific nature, e.g. Data
on a specific Industry.
c) Syndicate Services
These services are provided by certain organizations which
collect and tabulate the marketing information on a regularbasis for a number of clients who are the subscribers to these
services. So the services are designed in such a way that the
information suits the subscriber. These services are useful in
television viewing, movement of consumer goods etc. These
syndicate services provide information data from both
household as well as institution.
In collecting data from household they use three approaches
i. Survey- They conduct surveys regarding - lifestyle,sociographic, general topics.
ii. Mail Diary Panel- It may be related to 2 fields -Purchase and Media.
iii. Electronic Scanner Services- These are used togenerate data on volume.
Importance of Syndicate Services
Syndicate services are becoming popular since the constraints
of decision making are changing and we need more of specific
decision-making in the light of changing environment. Also
Syndicate services are able to provide information to the
industries at a low unit cost.
Disadvantages of Syndicate Services
The information provided is not exclusive. A number of
research agencies provide customized services which suits the
requirement of each individual organization.
There are following types of Syndicate Services
I. Household/Consumers
i. Panela. Purchase
A data-gathering technique in which respondents record their
purchases in a diary.
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b. Media
A data-gathering technique that involves samples of
respondents whose television viewing behaviouris automatically recorded by electronic devices, supplementing
the purchase information recorded in a diary.
ii Survey
Interviews with the large number of respondents using with
questionnaire.
a. general
b. Advertising Evaluation
c. Psychographic & Lifestyle
Identify the activities inwhic people are enganged.
iii Electronic scanner service
a. Scanner panel
Data obtained by passing merchandise over a laser scanner
that reads the UPC code from the packages.
b. Scanner panel with Cable TV
The combination of a scanner panel with manipulations of
advertising that is being broad cast by Cable TV Companies.
c. Volume Tracking Data
Scanner data that provide information on purchases bybrand, size, price, and flavour or formulation.
II. Institutions
a. Wholesaler
b. Retailer
c. Industrial Firms
i. Direct Inquiry
ii. Clipping Service
iii. Corporate Reports
Precautions in Collection of Data
The investigator should take precautions before using thesecondary data. In this connection, following precautions
should be taken into account.
1. Suitable Purpose of Investigation:The investigator must ensure that the data are suitable for the
purpose of enquiry.
2. Inadequate Data:Adequacy of the data is to be judged in the light of the
requirements of the survey as well as the geographical areacovered by the available data.
3. Definition of Units:The investigator must ensure that the definitions of units which
are used by him are the same as in the earlier investigation.
4. Degree of Accuracy:
The investigator should keep in mind the degree accuracy
maintained by each investigator.5. Time and Condition of Collection of Facts:It should be ascertained before making use of available data to
which period and conditions, the data was collected.
6. Comparison:Investigator should keep in mind whether the secondary data'
reasonable, consistent and comparable.
7. Test Checking:The use of the secondary data must do test checking and seethat totals and rates have been correctly calculated.
8. Homogeneous Conditions:It is not safe to take published statistics at their face value
without knowing their means, values and limitations.