Marketing Research

ROLE OF MARKETING
Customer
RESEARCH
Groups
Consumers
Employees
Shareholders
Suppliers

Uncontrolla
Controllabl Marketing ble
e
Research Environment
Environme factors
nt Economy
Assessing Providing Marketing
factors
Product Technology
Informatio Decision
Price Competition
informatio n Making
Promotio Regulations
n Political
n
needs factors
Distributi
on Social &
MarketIngManagers Cultural
Market Segmentation factors
Target market
selection
Marketing
 ??????????????????
• Research is a process (or
series of iterative steps), and followed often when
management is faced with a “problem” and/or
“opportunity”, management needs further information in
order to make a decision – the need for market(ing)
research is an issue that is likely to need addressing...

The question is

“when to conduct market(ing)

research?”
 When to Conduct Market(ing)
Research
Yes Yes Yes Yes

Time Availability Nature of Benefits vs.

Constraints of Data Decision Costs Conduct
Is sufficient Is the Is the Does the value Market
time information decision of of the research Research
available? on hand considerable exceed the cost?
inadequate? importance?

No No No No

Do not conduct market research!

Example issues: (1) What is our market share?

(2) Will people drink tomato soup from a plastic jar?
(3) Whose machine tools do our potential customers buy?
(4) Which medicine is more preferred for a decease?
When Research Should be
Done
•If it clarifies problems or investigates
changes in the marketplace that can
directly impact your product
responsibility
•If it resolves your selection of
alternative courses of marketing action
to achieve key marketing objectives
•If it helps you gain a meaningful
competitive advantage
•If it allows you to stay abreast of
Questions addressing the various
stages of the Research Process
Stage in the Process Typical Questions
1. Formulate problem What is purpose of study - solve a
problem? Identify opportunity? Is
additional
background info necessary? What info is
needed to make decision? How will info
be utilized? Should research be
conducted?
2. Determine research How much is already known? Can
hypothesis
design – Exploratory / conclusivebe formulated ? What types of
questions need Descriptive and causal to be answered ?
What type of study best address
research questions ?
3. Determine data collection Can existing data be used to
advantage?
 Questions addressing the various
stages of the Research Process
Stage in the Process Typical
Questions
4. Design data collection Should structure or unstructured
items used in
forms collecting data? Should purpose of
study be made
known to respondents? Should rating scale
be used?
What type of rating scale would be most
appropriate?

5. Design sample & collect Who is target population? Is list of

population
elements available? Is sample necessary? Is
Probability
sample desirable? How large should sample be?
What
operational procedures will be followed? What
methods will be used to ensure quality of data
collected?
The research process
 The research process
Is a set of iterative steps and
relationships....
The Concept of Total Error
All research has error and this impacts on the research outcome – its
usability and accuracy

Poorly Written
Research Report

Poor Logic Poor problem

definition formulation

Improper use of
Statistical
Total
Procedures Error

Poor data collection

Inadequate sample
methods
size Inadequate
sample design
Problem definition
steps

Management problem
definition process

Research problem definition process

Please note that sometimes this is
called
Research question or research
problem.....
“research problem”... and that
research questions are objectives that fit
underneath the research problem.....
 Problem Definition
• Management problem:

– Focuses on the decision that

management has to make and is
action oriented (i.e. once the
information is obtained a course of action will be
required)…. The management problem may
include:

– Symptoms of failure to achieve an objective. Must

select course of action to regain it.

– Symptoms of likelihood of achieving objective. Must

decide how to seize opportunity (opportunity
identification)
Formulate Formulate
Management Problem Research Problem
 Problem
Definition
• The research problem: How to
provide relevant, accurate, and unbiased
information that manages can use to solve their
marketing management problems.
• The research problem is information
oriented and researchers need to do some
investigation (e.g., ask questions, read information)
before defining the research problem – Researchers
ask yourself: is the issue that management is
seeking answers to merely a symptom of X?
– Remember the iceberg principle
• The symptoms are what we can see (e.g. falling sales)
• The issues (causes) are generally what we cant see and
generally the issue (below the surface) is what needs
investigating
and therefore forms the research problem …………..
Examples of
Management Problem Research
Problem
Develop package for new Evaluate
effectiveness of

product. alternative package

designs.

Increase store traffic. Measure

current image of
the store.
Ok, so we have a problem,
how do we write the problem
definition????
 So you think you have a
problem – how do you
write it????
Management Research Problem
Problem Information oriented
Decision / action oriented
Should a new product be To determine consumer preferences
introduced? and purchase intentions for the
proposed new product

Should the advertising campaign be To determine the effectiveness of

changed? the current advertising campaign
Should the price of the brand be To determine the price elasticity of
increased? demand and the impact of sales and
profits of various levels of price
changes
To help you develop and write the research problem and research objectives
you should consult other sources of information: ask questions, rely on
experience,
search industry info, academic journals (theory)...... This is an iterative and
The problem definition process
How much is this information worth?????? Estimate the value of
information
 Marketing Research

Problem identification Problem solving

research research

Market Potential Research

Market Share Research Segmenting
Image Research Research
Market Characteristics Product Research
Research Pricing Research
Sales Analysis Research Promotion
For casting Research Research
Business Trends Research Distribution
Research
Problem solving research
Segmenting Research: Basis of segmentation, find out
response of segments, selection of
target segment

Product Research : test , design , packaging,

modification, positioning and repositioning

Pricing Research : price policy, line policy, price elasticity,

customer response

Promotion Research: Promotion budget, relationship with

other tools, media decision , testing,
effectiveness
2nd Session
Marketing Research Defined
(AMA)
“Marketing research is the function
which links consumers and the
consumer to the organization
through information- Information
used to identify and define marketing
problems; generate, refine, and
evaluate marketing actions ; monitor
marketing performance; and improve
our understanding of marketing as a
process.”
The role of marketing research within the
marketing system
THE ROLE OF MARKETING
RESEARCH
MARKETING RESEARCH

A FORMAL COMMUNICATION LINK WITH

ENVIRONMENT

PROVIDE ACCURATE AND USEFUL

a) specifying
b) collecting
c) analyzing
d) interpreting

FOR
a) planning
b) problem-solving
c) control
NATURE OF MARKETING
RESEARCH

Applied/Problem solving research

Often based on cost-benefit analysis
Vital for implementation of marketing
concept
Value of information declines with time
Dynamic (ongoing)
 DRIVERS OF MARKETING
RESEARCH
Shift from production to customer-
orientation
Declining cost of unit information
(digital age)
Increase intensity of competition
Globalization
Technology and commercialization
Factors shaping the Marketing
Research Industry
Low cost
survey Surveys
Competitor providers to
Intelligence generate
sales &
PR
The nature
Custome Internet,
and future
r e.g. online
of
Analytics panels
Marketing
Research

‘Value for
money’ ‘Respondent
marketin ‘Strategic’ ’ rewards
g consultants
 Reasons for Doing Marketing
Research: The Five Cs
1. Customers: To determine how well customer needs
are being met, investigate new
target markets, and assess and test
new services and facilities.
2. Competition: To identify primary competitors and
pinpoint their strengths and
weaknesses.
3. Confidence: To reduce the perceived risk in making
marketing decisions.
4. Credibility: To increase the believability of
promotional messages among
customers.
5. Change: To keep updated with changes in
 Reasons for Not Doing
Marketing Research
1. Timing: It will take to much time.
2. Cost: The cost of the research is too
high.
3. Reliability: There is no reliable research
method available for
doing the research.
4. Competitive intelligence: There is a fear
that
competitors will learn
about the organization’s
 Five Key Requirements of
Marketing Research
Information
1. Utility: Can we use it?
Does it apply to
us?
2. Timeliness: Will it be
available in
time?
3. Cost-effectiveness: Do the benefits
outweigh the costs?
4. Accuracy: Is it accurate?
Classification of marketing research
Examples of problem-solving research
 Problem Definition Process

E n v i r o n m e n t a l C o n t e x t o f t h e

T a s k s i n v o l v e d i n p r o b l e m d

D i s c u s s i oI n n t e w r vi t i h e w S s e wc o i t nh d a r Qy ud aa l t i at a t i v e
d e c i s i o n m e a x kp e e r rs t s a n a l y s i s r e s e a r c h

Management decision problem

Marketing research problem

Factors to Consider -
Environmental Context
•Past information and forecasts
•Resources and constraints
•Objectives (organizational &
decision maker)
•Buyer behavior
•Legal environment
•Economic environment
•Marketing and technological skills
 Defining the Research
Problem
Allow the researcher to obtain all the
information needed to address the
management decision problem

Guide the researcher in formulating the

research design

A broad definition does not provide clear

guidelines for the subsequent steps involved in
the project e.g.

Developing a marketing strategy for the brand

 So you think you have a problem
– how do you write it????
Management Research Problem
Problem Information oriented
Decision / action oriented
Should a new product be To determine consumer preferences
introduced? and purchase intentions for the
proposed new product

Should the advertising campaign be To determine the effectiveness of

changed? the current advertising campaign
Should the price of the brand be To determine the price elasticity of
increased? demand and the impact of sales and
profits of various levels of price
changes
Define Research Design

A framework or blueprint for

conducting the marketing research
project.

Details the procedures necessary for

obtaining the information needed to
structure or solve marketing
research problems
A Classification of Marketing Research Designs

Research Design

Exploratory Research Design Conclusive Research Design

Descriptive Research Causal Research

Cross-Sectional Design Longitudinal Design

 Differences Between
Exploratory and
Conclusive Research
Exploratory Conclusive

Objective: To provide insights, understandings. Test hypothesis/examine

relationships.
Characteristics: Information needed defined loosely.
Information needed is clearly
Research process
defined.
flexible/unstructured.
Research process is formal and
Sample is small and
structured.
nonrepresentative.
Sample is large and representative.
Analysis of primary data is
qualitative. Data Analysis is quantitative.
Findings: Tentative. Conclusive.
Outcome: Followed by conclusive research. Findings input into decision making.
 Exploratory Research:
Characteristics : Overview
flexible, versatile, but not conclusive
Useful for :
discovery of ideas and insights,
Formulating problems more precisely,
Identifying alternative courses of action,
Establishing priorities for further research
Methods Used :
case studies
secondary data
focus groups
qualitative research
When done?
Generally initial research conducted to clarify and define the
nature of a problem
Does not provide conclusive evidence :
Subsequent research expected
 Descriptive Research:
Characteristics : Overview
Describes characteristics of a population or phenomenon
Some understanding of the nature of the problem
preplanned, structured, conclusive
Useful for :
describing market characteristics or functions
Methods Used :
Surveys (primary data)
panels
scanner data (secondary data)
When Used:
Often a follow-up to exploratory research
Examples include:
Market segmentation studies, i.e., describe characteristics of
various groups
Determining perceptions of product characteristics
Price and promotion elasticity studies
 Examples of Descriptive Studies
•Market studies that describe the size of the market, buying power of
the consumers, availability of distributors, and consumer profiles

•Market share studies that determine the proportion of total sales

perceived by a company and its competitors

•Sales analysis studies that describe sales by geographic region,

product line, type of account size of account

•Image studies that determine consumer perceptions of the firm and

its products

•Product usage studies that describe consumption patterns

•Distribution studies that determine traffic flow patterns and the

number and location of distributors

•Pricing studies that describe the range and frequency of price

changes and probable response to proposed price changes

•Advertising studies that describe media consumption habits and

audience profiles for specific television programs and magazines
 A Comparison of Basic Research
Designs

Exploratory Descriptive Causal

Objective: Discovery of Describes market Determine cause and

ideas characteristics effect

Characteristics:
Flexible, Manipulate
Prior formulation of
versatile. independent variables.
hypothesis. Planned,
Control of other
Front end structured design
variables.
research.

Experiments
Methods: Secondary data Surveys
Classification of Marketing
Research Data
Marketing
Research Data

Secondary Data Primary Data

Qualitative Data Quantitative

Data

Descriptive Causal

Survey Data Observational & Experimental

Other Data Data
Relationship among Exploratory,
Descriptive and causal Research
3rd Session
 Sampling Design
Management
information systems

Recom mendations Problem definition

Exploratory

Data collection & Research design Descriptive

analysis

Causal

Sampling

Non-probability Probability
 Sample or Census
A population is the aggregate of all the
elements that share some common set of
characteristics, and that comprise the
universe for the purpose of the marketing
research problem.

The population parameters are typically

numbers, such as the proportion of
consumers who are loyal to a particular
brand of toothpaste.
 Sample or Census
A census involves a complete enumeration
of the elements of a population. The
population parameters can be calculated
directly in a straightforward way after the
census is enumerated (specify
individually).

A sample is a subgroup of the population

selected for participation in the study.
Sample characteristics, called statistics,
are then used to make inferences about
the population parameters. The inferences
 Sample Versus Census
Condition favoring the
use of
Sample
Census
Budget Small
Large
Time Available Short
Long
Population Small
Large
Variance in Characteristics Small
Large
Sampling
is the process of selecting a sufficient
number of elements from the
population so that by studying the
sample, and understanding the
properties or characteristics of the
sample subjects, it would be possible
to generalise the properties or
characteristics to the population
elements.

more representative the sample is of

the population, the more generalisable
Sampling design – key
terms
Population – entire group of people, events or things
of interest that the researcher wishes to investigate -
N

Population element – single member of the population

Sampling frame – list of all elements or the population

from which the sample is drawn

Sample (ing) – subset of the population selected for

the specific research study - n

Sample unit (subject) – single element selected in the

sample; could be a group ( could be a two stage
process)
Why sample?

time
cost
accuracy
population may be difficult to
access
greater depth of information
Managerial objectives of
sampling

Representative
Reliable
efficient as time permits
Errors associated with
sampling
Sampling frame error - an error that occurs
when certain sample elements are not listed or are
not accurately represented in a sampling frame
(occurs between the population and sampling
frame)

Random sampling error – occurs between the

sampling frame and the planned sample for study

Non - response error – the statistical difference

between a survey that includes only those who
responded and a perfect survey that would also
include those who failed to respond (occurs
between the planned sample and the respondents
Sampling design process
Step 1: Define Population
Entire group under study as defined by research objectives

Step 2: Establish Sampling Frame

list of sampling units from which a sample will be drawn;
the list could consist of geographic areas, institutions,
individuals or other units

Step 3: Choose sampling technique/method

method of selecting the sampling units
Probability (random) vs. non probability (non-random)

Step 4: Determine sample size

if non-probability sampling method –involves some
judgement based on time, cost, analysis required
if probability sampling – based on statistical determination
of sample size
Classification of Sampling
Techniques
Sampling Techniques

Nonprobability Probability
Sampling Techniques Sampling Techniques

Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling

Simple Systematic Stratified Cluster Other Sampling

Random Sampling Sampling Sampling Techniques
Sampling
Non Probability Sampling
each sampling unit of the population being studied
does not have an equal chance of being included
in the study (due to the way the sample is
selected)

non-random (selection process is subjective)

researchers rely heavily on personal judgement

projecting the findings beyond the sample is

statistically inappropriate

is less concerned about generalisability; other

factors are more important - time ; preliminary
Non Probability Sampling

Common sampling
approaches

convenience
judgement
quota
snowball
 Convenience Sample
Also known as haphazard or accidental sampling
based on convenient availability of sampling units
sample units happen to be in a certain place at certain
time – high traffic locations – shopping malls;
pedestrian areas

Acceptable only in pre - test/exploration phase when

further research will use probability sampling

Representativeness highly uncertain

Quota sampling can reduce some of the sample

selection error
Judgement Sampling

An experienced individual (could

be the researchers) selects the
sample based on personal
judgement about some
appropriate characteristics
suited to the study

Focus group studies use this

method
Quota Samples

Various subgroups in a population

are represented based on pertinent
characteristics

Haphazard selection of respondents

may introduce bias

Similar to stratified random sampling

Snowball Sampling
Judgement sample that relies on
researchers ability to locate an initial set of
respondents with the desired
characteristics; these individuals are then
used as informants to identify others with
desired characteristic

Acceptable when sample units are difficult

to locate

Advantages reduced sample size and costs

Probability Sampling
In a probability sample each element in
the population has some known chance
or probability of being included in the
sample

Used when the representativeness of

the sample is important for
generalisability of results

Random selection of sample thus

eliminating bias
Probability Sampling cont.

statistical efficiency
same sample size and smaller
standard error of the mean is
obtained

economic efficiency
precision refers to the level of
uncertainty about the characteristics
being measured
precision is inversely related to
sampling error
precision is positively related to cost
Types of probability
sampling
Simple random sample
Systematic sampling
Stratified sampling
proportionate
disproportionate
Cluster sampling
Area sampling
Simple Random Sampling
Assures each element in the population of
an equal chance of being included in the
sample

Blind draw - putting all name in a hat and

drawing out a sample of 100 (size has
been statistically calculated)

Random numbers

Need to begin with a complete list of the

 Systematic Sampling
A starting point is selected by a random
process and then every nth number on
the list is selected
Calculate skip interval = population list
size/ sample size (size has been statistically
calculated)
Danger of periodicity – if list has a
systematic pattern
Can be more representative than a
simple random sample
Stratified Sampling
Simple random sub samples are drawn
from within each stratum in the
population that are more or less equal
on some characteristic
Greater degree of representativeness
Two types
proportionate - sample size of each stratum
is relative to the size of each stratum in the
population
disproportionate –sample size of each
stratum does not reflect their relative
proportions in the population
Cluster Sampling
divides the population into groups
(clusters), any one of which can be
considered a representative sample

an economically efficient technique in

which the primary sampling unit is not the
individual element but a large cluster of
elements

clusters are selected randomly

random sample from within each cluster

Technique Strengths
Nonprobability Sampling Least expensive, least
Convenience sampling time-consuming, most
convenient
Judgmental sampling Low cost, convenient,
not time-consuming
Quota sampling Sample can be controlled
for certain characteristics
Snowball sampling Can estimate rare
characteristics
Probability sampling Easily understood,
Simple random sampling results projectable
(SRS)
Systematic sampling Can increase
representativeness,
easier to implement than
SRS, sampling frame not
necessary
Stratified sampling Include all important
subpopulations,
precision
Cluster sampling Easy to implement, cost
effective
Weaknesses
Selection bias, sample not
representative, not recommended for
descriptive or causal research
Does not allow generalization,
subjective
Selection bias, no assurance of
representativeness
Time-consuming
Difficult to construct sampling
frame, expensive, lower precision,
no assurance ofrepresentativeness.
Can decreaserepresentativeness
Difficult to select relevant
stratification variables, not feasible to
stratify on many variables, expensive
Imprecise, difficult to compute and
interpret results
Choosing probability vs. non-
probability sampling
Probability Evaluation Criteria Non-probability
sampling sampling
Conclusive Nature of research Exploratory

Larger sampling Relative magnitude Larger non-sampling

errors of sampling and error
non-sampling error

High Population variability Low

[Heterogeneous] [Homogeneous]

Favorable Statistical Considerations Unfavorable

High Sophistication Needed Low

Relatively Longer Time Relatively shorter

High Budget Needed Low

Selecting an Appropriate
Design

degree of accuracy
resources
time
advance knowledge of the
population
national versus local projects
need for statistical analysis
Session - 4
 Measurement and
Scaling
Measurement means assigning numbers
or other symbols to characteristics of
objects according to certain pre-specified
rules.
One-to-one correspondence between
the numbers and the characteristics
being measured.
The rules for assigning numbers should
be standardized and applied uniformly.
Rules must not change over objects or
 Measurement and
Scaling
Scaling involves creating a continuum
upon which measured objects are
located.

Consider an attitude scale from 1 to 100.

Each respondent is assigned a number
from 1 to 100, with 1 = Extremely
Unfavorable, and 100 = Extremely
Favorable. Measurement is the actual
assignment of a number from 1 to 100 to
each respondent. Scaling is the process of
placing the respondents on a continuum
 Primary Scales of
Scale
Measurement
Nominal Numbers Finish
Assigned
7 8 3
to Runners

Ordinal Rank Order Finish

of Winners
Third Second First
place place place

Interval Performance
Rating on a 8.2 9.1 9.6

0 to 10 Scale
15.2 14.1 13.4
Ratio Time to
Finish, in
 Primary Scales of
Measurement
The
Nominal Scale
numbers serve only as labels or tags for
identifying and classifying objects.
When used for identification, there is a strict one-to-
one correspondence between the numbers and the
objects.
The numbers do not reflect the amount of the
characteristic possessed by the objects.
The only permissible operation on the numbers in a
nominal scale is counting.
Only a limited number of statistics, all of which are
based on frequency counts, are permissible, e.g.,
 Illustration of Primary Scales
of Measurement
Nominal Ordinal Interval Ratio
Scale Scale Scale Scale
Preference Preference $ spent last
No. Store Rankings Ratings 3 months
1-7 11-17
1. Lord & Taylor 7 79 5 15 0
2. Macy’s 2 25 7 17 200
3. Kmart 8 82 4 14 0
3 30 6 16 100
4. Rich’s 1 10 7 17 250
5. J.C. Penney 5 53 5 15 35
6. Neiman Marcus 9 95 4 14 0
7. Target 6 61 5 15 100
8. Saks Fifth Avenue 4 45 6 16 0
10 115 2 12 10
9. Sears
10.Wal-Mart
 Primary Scales of
Measurement -
• Ordinal
A ranking Scale
scale in which numbers are assigned
to objects to indicate the relative extent to which
the objects possess some characteristic.
• Can determine whether an object has more or
less of a characteristic than some other object,
but not how much more or less.
• Any series of numbers can be assigned that
preserves the ordered relationships between the
objects.
• In addition to the counting operation allowable
for nominal scale data, ordinal scales permit
the use of statistics based on centiles, e.g.,
percentile, quartile, median.
 Primary Scales of
Measurement -
Interval Scale
• Numerically equal distances on the scale
represent equal values in the characteristic being
measured.
• It permits comparison of the differences
between objects.
• The location of the zero point is not fixed. Both
the zero point and the units of measurement are
arbitrary.
• Any positive linear transformation of the form y
= a + bx will preserve the properties of the scale.

• It is not meaningful to take ratios of scale

values.
 Primary Scales of
Measurement -
Ratio Scale
• Possesses all the properties of the
nominal, ordinal, and interval scales.

• It has an absolute zero point.

• It is meaningful to compute ratios of

scale values.

• Only proportionate transformations of

the form y = bx, where b is a positive
constant, are allowed.
 Primary Scales of
Measurement
S ca le B a sic Com m on M a rke tin g P e rm issib le S ta tistics
C h a ra c te risticsEx a m p le s Ex a m p le s D es c riptive Inferential
N o m in a l N um be rs identify S oc ial S ec urity B rand nos ., s toPre
erc entages , C hi-s quare,
& c la s s ify objecnos
ts ., num beringty pes m o de binom ial tes t
of football play ers
O rd in a l N os . in dic ate the Q uality rank ingsP,refere nc e P erc entile, R ank -order
relative pos itionsrank ings of team rank
s ings , m arkmete dian c orrelation ,
of objec ts but no int a tournam entpos ition, s oc ial F riedm an
the m agnitude of c las s A NO V A
differenc es
betw ee n th em
In te rv a l D ifferenc es Tem perature A ttitudes , R ange, m ean, P roduc t-
betw ee n o bjec ts(F ahrenheit) opinions , ind exs ta ndard m om ent
R a tio Zero point is fix Length,
ed, w eig ht A ge, s ale s , G eom etric C oeffic ie nt of
ratios of s c ale inc om e, c os ts m e an, h arm onic
variation
va lues c an be m e an
c om pared
 A Classification of Scaling
Techniques
Scaling Techniques

Comparative Noncomparative
Scales Scales

Paired Rank Constant Q-Sort and Continuous Itemized

Comparison Order Sum Other Rating Scales Rating Scales
Procedures

Semantic Stapel
Likert
Differential
 A Comparison of Scaling
Techniques
• Comparative scales involve the
direct comparison of stimulus objects.
Comparative scale data must be
interpreted in relative terms and
have only ordinal or rank order
properties.
• In non-comparative scales, each
object is scaled independently of the
others in the stimulus set. The resulting
data are generally assumed to be
 Relative Advantages of
Comparative Scales
• Small differences between stimulus
objects can be detected.
• Same known reference points for
all respondents.
• Easily understood and can be
applied.
• Involve fewer theoretical
assumptions.
• Tend to reduce halo or carryover
Relative Disadvantages of
Comparative Scales

Ordinal nature of the data

Inability to generalize beyond the

stimulus objects scaled.
 Comparative Scaling
Techniques
•
Paired Comparison Scaling
A respondent is presented with two
objects and asked to select one according
to some criterion.
• The data obtained are ordinal in nature.
• Paired comparison scaling is the most
widely-used comparative scaling
technique.
• Under the assumption of transitivity, it is
possible to convert paired comparison data
to a rank order.
 Obtaining Shampoo
Preferences
Using Paired
Instructions: Comparisons
We are going to present you with ten pairs of shampoo
brands. For each pair, please indicate which one of the two brands of shampoo
you would prefer for personal use.
Recording Form: J hirmack Finesse Vidal Head & Pert
Sassoon Shoulders
J hirmack 0 0 1 0
Finesse 1a 0 1 0
Vidal Sassoon 1 1 1 1
Head & Shoulders 0 0 0 0
Pert 1 1 0 1
Number of Times 3 2 0 4 1
Preferred b
a
A 1 in a particular box means that the brand in that column was preferred over
the brand in the corresponding row. A 0 means that the row brand was preferred
over the column brand. bThe number of times a brand was preferred is obtained
by summing the 1s in each column.
 Paired Comparison Selling
The most common method of taste testing is paired comparison.
The consumer is asked to sample two different products and
select the one with the most appealing taste. The test is done in
private and a minimum of 1,000 responses is considered an
adequate sample. A blind taste test for a soft drink, where
imagery, self-perception and brand reputation are very
important factors in the consumer’s purchasing decision, may
not be a good indicator of performance in the marketplace. The
introduction of New Coke illustrates this point. New Coke was
heavily favored in blind paired comparison taste tests, but its
introduction was less than successful, because image plays a
major role in the purchase of Coke.
 Comparative Scaling
Techniques
Rank Order Scaling
Respondents are presented with several
objects simultaneously and asked to order
or rank them according to some criterion.
It is possible that the respondent may
dislike the brand ranked 1 in an absolute
sense.
Furthermore, rank order scaling also results
in ordinal data.
Only (n - 1) scaling decisions need be made
 Preference for Toothpaste
Brands
Using Rank Order Scaling
Instructions: Rank the various brands of toothpaste in
order of preference. Begin by picking out the one brand
that you like most and assign it a number 1. Then find the
second most preferred brand and assign it a number 2.
Continue this procedure until you have ranked all the
brands of toothpaste in order of preference. The least
preferred brand should be assigned a rank of 10.

No two brands should receive the same rank number.

The criterion of preference is entirely up to you. There is

no right or wrong answer. Just try to be consistent.
 Preference for Toothpaste
Brands
Using Rank Order Scaling
Form
Brand Rank Order
1. Crest _________
2. Colgate _________
3. Aim _________
4. Gleem _________
5. Sensodyne _________
6. Ultra Brite _________
7. Close Up _________
8. Pepsodent _________
9. Plus White _________
10. Stripe _________
 Comparative Scaling
Techniques
Constant Sum Scaling
Respondents allocate a constant sum of
units, such as 100 points to attributes of a
product to reflect their importance.
If an attribute is unimportant, the respondent
assigns it zero points.
If an attribute is twice as important as some
other attribute, it receives twice as many
points.
The sum of all the points is 100. Hence, the
name of the scale.
 Importance of Bathing Soap
Attributes Using a Constant Sum
Scale
Instructions
On the next slide, there are eight attributes of
bathing soaps. Please allocate 100 points among
the attributes so that your allocation reflects the
relative importance you attach to each attribute.
The more points an attribute receives, the more
important the attribute is. If an attribute is not at
all important, assign it zero points. If an attribute
is twice as important as some other attribute, it
should receive twice as many points.
 Importance of Bathing Soap
Attributes
Using a Constant Sum Scale
Form
Average Responses of Three Segments
Attribute
Segment I Segment II 8 Segment III 2 4
1. Mildness 2 4 17
2. Lather 3 9 7
3. Shrinkage 53 17 9
4. Price 9 0 19
5. Fragrance 7 5 9
6. Packaging 5 3 20
13 60 15
7. Moisturizing
Sum 100 100 100
8. Cleaning Power
 Q – Sort Scaling

A comparative scaling technique

that uses a rank order procedure to
sort objects based on similarity with
respect to some criterion.
 Non - comparative Scaling
Techniques

Respondents evaluate only one object

at a time, and for this reason
noncomparative scales are often
referred to as monadic scales.

Noncomparative techniques consist of

continuous and itemized rating scales.
 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.

 
How would you rate Sears as a department store?
Version 1
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Probably the best
 
Version 2
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -
Probably the best
0 10 20 30 40 50 60 70 80 90
100
 
Version 3
Very bad Neither good Very good
nor bad
Probably the worst - - - - - - -I - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - -
-Probably the best
RATE: Rapid Analysis and Testing
Environment
A relatively new research tool, the perception analyzer, provides continuous measurement of “gut
reaction.” A group of up to 400 respondents is presented with TV or radio spots or advertising
copy. The measuring device consists of a dial that contains a 100-point range. Each participant
is given a dial and instructed to continuously record his or her reaction to the material being
tested.

As the respondents turn the dials, the information is

fed to a computer, which tabulates second-by-
second response profiles. As the results are
recorded by the computer, they are superimposed
on a video screen, enabling the researcher to view
the respondents' scores immediately. The
responses are also stored in a permanent data file
for use in further analysis. The response scores
can be broken down by categories, such as age,
income, sex, or product usage.
 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
 Likert Scale
The Likert scale requires the respondents to indicate a degree of
agreement or
disagreement with each of a series of statements about the stimulus
objects.
  SD D Neither A SA
A or
D
 
1. Sears sells high quality merchandise. 1 2X 3 4 5
 
2. Sears has poor in-store service. 1 2X 3 4 5
 
3. I like to shop at Sears. 1 2 3X 4 5
 
The analysis can be conducted on an item-by-item basis (profile analysis),
or a total (summated) score can be calculated.

When arriving at a total score, the categories assigned to the negative

statements by the respondents should be scored by reversing the scale.
 Semantic Differential
Scale
The semantic differential is a seven-point rating scale with end
points associated with bipolar labels that have semantic
meaning.
 
SEARS IS:
Powerful --:--:--:--:-X-:--:--: Weak
Unreliable --:--:--:--:--:-X-:--: Reliable
Modern --:--:--:--:--:--:-X-: Old-fashioned

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.
A Semantic Differential Scale for
Measuring Self- Concepts, Person
Concepts, and Product Concepts
1) Rugged :---:---:---:---:---:---:---: Delicate

2) Excitable :---:---:---:---:---:---:---: Calm

3) Uncomfortable :---:---:---:---:---:---:---: Comfortable

4) Dominating :---:---:---:---:---:---:---: Submissive

5) Thrifty :---:---:---:---:---:---:---: Indulgent

6) Pleasant :---:---:---:---:---:---:---: Unpleasant

7) Contemporary :---:---:---:---:---:---:---: Obsolete

8) Organized :---:---:---:---:---:---:---: Unorganized

9) Rational :---:---:---:---:---:---:---: Emotional

10) Youthful :---:---:---:---:---:---:---: Mature

 Stapel Scale
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.
  SEARS
 
+5 +5
+4 +4
+3 +3
+2 +2X
+1 +1
HIGH QUALITY POOR SERVICE
-1 -1
-2 -2
-3 -3
-4X -4
-5 -5
The data obtained by using a Stapel scale can be analyzed in the same
way as semantic differential data.
 Basic Non - comparative
Scales
Scale Basic Examples Advantages Disadvantages
Characteristics
Continuous Place a mark on a Reaction to Easy to construct Scoring can be
Rating continuous line TV cumbersome
Scale commercials unless
computerized
Itemized Rating
Scales

Likert Scale Degrees of Measurement Easy to construct, More

agreement on a 1 of attitudes administer, and time - consuming
(strongly disagree) understand
to 5 (strongly agree)
scale

Semantic Seven - point scale Brand, Versatile

Differential with bipolar labels product, and to whether the
company
images

Stapel Unipolar ten - point Measurement Easy to construct, Confusing and

Scale scale, - 5 to +5, of attitudes administer over
witho ut a neutral and images telephone
point (zero)
 Summary of Itemized Scale
Decisions
1) Number of categories Although there is no single,
optimal number,
traditional guidelines suggest that there
should be between five and nine
categories

2) Balanced vs. unbalanced In general, the scale should be

balanced to
obtain objective data

3) Odd/even no. of categories If a neutral or indifferent scale

response is
possible from at least some of the
respondents,
an odd number of categories should be
used

4) 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

5) Verbal description An argument can be made for

labeling all or
 Balanced and Unbalanced
Scales

Balanced Scale Unbalance Scale

Jovan Musk for Men is Jovan Musk for Men is

Extremely good Extremely good

Very good Very good
Good Good
Bad Somewhat good
Very bad Bad
Extremely bad Very bad
 Rating Scale
Configurations
A variety of scale configurations may be employed to measure the gentleness of
Cheer detergent. Some examples include:

Cheer detergent is:

1) Very harsh --- --- --- --- --- --- --- Very gentle

2) Very harsh 1 2 3 4 5 6 7 Very gentle

3) . Very harsh
.
.
. Neither harsh nor gentle
.
.
. Very gentle

4) ____ ____ ____ ____ ____ ____ ____

Very Harsh Somewhat Neither harsh Somewhat Gentle Very
harsh Harsh nor gentle gentle gentle

5)

Very Neither harsh Very

harsh nor gentle gentle
Development of a Multi-
item Scale Develop Theory

Generate Initial Pool of Items: Theory, Secondary Data, and

Qualitative Research

Select a Reduced Set of Items Based on Qualitative Judgement

Statistical Analysis

Develop Purified Scale

Collect More Data from a Different Sample

Evaluate Scale Reliability, Validity, and Generalizability

Final Scale
 Scale Evaluation
Scaling Techniques

Comparative Noncomparative
Scales Scales

Paired Rank Constant Q-Sort and Continuous Itemized

Comparison Order Sum Other Rating Scales Rating
Procedures Scales

Semantic Stapel
Likert
Differential
Measurement Accuracy
The true score model provides a framework for
understanding the accuracy of measurement.

XO = XT + XS + XR

where

XO = the observed score or

measurement
XT = the true score of the characteristic
XS = systematic error
XR = random error
 Potential Sources of Error on
Measurement
1) Other relatively stable characteristics of the individual
that influence the test score, such as intelligence, social
desirability, and education.
2) Short-term or transient personal factors, such as
health, emotions,
and fatigue.
3) Situational factors, such as the presence of other
people, noise, and distractions.
4) Sampling of items included in the scale: addition,
deletion, or changes in the scale items.
5) Lack of clarity of the scale, including the instructions
or the items themselves.
6) Mechanical factors, such as poor printing,
overcrowding items in the questionnaire, and poor
design.
7) Administration of the scale, such as differences among
Reliability
Reliability can be defined as the extent to which measures are free from
random error, XR. If XR = 0, the measure is perfectly reliable.

In test-retest reliability, respondents are administered identical sets of

scale items at two different times and the degree of similarity between the
two measurements is determined.

In alternative-forms reliability, two equivalent forms of the scale are

constructed and the same respondents are measured at two different times,
with a different form being used each time.
Internal consistency reliability determines the extent to which different
parts of a summated scale are consistent in what they indicate about the
characteristic being measured.

In split-half reliability, the items on the scale are divided into two halves
and the resulting half scores are correlated.

The coefficient alpha, or Cronbach's alpha, is the average of all possible

split-half coefficients resulting from different ways of splitting the scale
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 error. Perfect validity requires that there be
no measurement error (XO = XT, XR = 0, XS = 0).
Content validity is a subjective but systematic evaluation of how
well the content of a scale represents the measurement task at
hand.
Criterion validity reflects whether a scale performs as expected
in relation to other variables selected (criterion variables) as
meaningful criteria.
Construct validity addresses the question of what construct or
characteristic the scale is, in fact, measuring. Construct validity
includes convergent, discriminant, and nomological validity.
Convergent validity is the extent to which the scale correlates
positively with other measures of the same construct.
Discriminant validity is the extent to which a measure does not
correlate with other constructs from which it is supposed to differ.
Relationship Between Reliability and
Validity
If a measure is perfectly valid, it is also
perfectly reliable. In this case XO = XT, XR =
0, and XS = 0.
If a measure is unreliable, it cannot be
perfectly valid, since at a minimum XO = XT +
XR. Furthermore, systematic error may also
be present, i.e., XS≠0. Thus, unreliability
implies invalidity.
If a measure is perfectly reliable, it may or
may not be perfectly valid, because
systematic error may still be present (XO = XT
+ X ).