MODULE 1: INTRODUCTION AND THE MARKETING RESEARCH

PROCESS

Learning Outcomes:
 Able to appreciate the role of marketing research in marketing decision making.
 Define marketing research problems and develop an approach to problems.
 Classify and compare different Research Methods and identify appropriate research
method depending on the Research problem / objective

INFORMATION NEEDS

Information needs are facts that a person wants, needs or expects in an information source.
This can be driven by curiosity or the need to make a decision or complete a task. Information
needs are related to, but distinct from information requirements. They are studied for:
 The explanation of observed phenomena of information use or expressed need;
 The prediction of instances of information uses;
 The control and thereby improvement of the utilization of information manipulation of
essential conditions
The following are common examples of an information need.
 Consumer: Researching a purchase of a product or service.
 Business: The data and information required for the strategy, planning and operations
of a business.
 Research: The data, concepts and guidelines required to conduct research.
 Technology: Technology information such as how to configure a web server.
 Transport: Information about transportation systems such as a train schedule.

CONSUMER INSIGHT

Understanding your consumers’ needs and wants has become essential to ensure your company
is future-proof. Listening empowers you to learn from and talk to your customers in order to
create ever-improving experiences. Businesses with quality data are more likely to collect
actionable customer insights, which can help them grow their bottoms line in the long run.

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A consumer insight is an interpretation used by businesses to gain a deeper understanding of
how their audience thinks and feels. Analysing human behaviours allows companies to really
understand what their consumers want and need, and most importantly, why they feel this way.
When consumer insight research is conducted properly, it should improve the effectiveness of
how a company communicates to its customers, which is likely to change consumer behaviour,
and therefore increase sales.
But collecting good consumer insights can be challenging, so here is what you need in order to
collect and use consumer insights properly:
 Good data quality: Data quality is vital to the collection of consumer insights. Without
high-quality data, your conclusions or results might suffer.
 A dedicated analytics team: The role of your data analytics team is essential in order
to understand how your customers think and behave. If you don’t have the right
analytics team, it’s hard to understand what the data is telling you.
 Consumer research: It’s important to understand and acknowledge consumer
behaviour and consumer insights should help you engage with customers emotionally.
In order to do that, it’s essential not to ignore the results of your consumer research,
whether you agree with them or not.
 Database and segment marketing: Database marketing is a form of marketing using
databases of customers to generate personalised communications. These databases can
lead to personas, different sets of audiences or segments. As consumer insights remain
theoretical, database marketing is another essential element to your research when it
comes to testing and learning. Indeed, test actions are necessary if you want to turn
insights into facts.

CONSUMER INSIGHTS VS MARKET RESEARCH

Market research can be defined as an effort to gather information about customers or markets.
It provides information about market needs, market sizes, competitors and customers. It is the
“what” of customers and markets. Market research delivers statistics and knowledge.
Consumer insights deliver the same, but tend to come with recommended actions that will help
you amplify the company’s growth. This means the team in charge of consumer insights will
deliver both data and narrative, allowing you to make use of the data.

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Long story short, research tells us what is happening, whereas consumer insights tell us why
it’s happening, and will allow us to make changes to our business in order to improve customer
satisfaction, customer retention, and increase our bottom line.
Here are some more differences between research and insight – all food for thought:
 There is plenty of research out there. There is much less actionable insight.
 Research delivers facts, knowledge and statistics. Insight delivers this as well, but also
delivers an additional layer of recommended actions that can help improve the bottom
line.
 Research departments deliver to the marketing function. Insight departments work in
partnership with the marketing function.
 Research departments deliver data and statistics. Insight departments deliver data plus
narrative.
 Insights are more sought-after and prolific in Anglo and American markets, less so
in Europe. Translation challenges of narratives appear to be the main obstacles
(although here at Feedback Ferret, we are able to manage this very successfully).

MARKETING RESEARCH

Marketing research is the function that links the consumer, customer and public to the marketer
through information. This information is used to
• identify and define marketing opportunities and problems
• generate, refine and evaluate marketing actions
• monitor marketing performance
• improve understanding of marketing as a process.
The American Marketing Association defines marketing research as "the systematic gathering,
recording and analysing of data about problems related to the marketing of goods and services".
Crisp has defined marketing research as "...the systematic, objective and exhaustive search for
and study of the facts relevant to any problem in the field of marketing".
Marketing research specifies the information required to address these issues, designs the
method for collecting information, manages and implements the data collection process,
analyses the results and communicates the findings and their implications.

Utilities of Marketing Research

• It assists in production and distribution of the product.
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 • It also helps in generating employment and increases the per-capita income.
• It also helps in reducing recession and avoid any crisis for the products/services.

Types of Marketing Research

Problem Identification Research:

It is undertaken to find out potential sources of threats and opportunities to the company that
are not apparent on the surface. The studies of this kind are exploratory in nature and usually
employ relatively unstructured research techniques such as desk research, focus-group
interviews and depth interviews. Studies of this type often attempt to identify trends and
patterns in marketing environment that could be used by managers as a basis for shaping
marketing strategies. In general, the recognition of economic, social or cultural trends, such as
changes in consumer behavior, may point to underlying problems or opportunities.
Problem identification research typically is only an introduction to further more detailed
analyses, and as such rarely provides actionable conclusions that could be readily used in
decision making but rather indicates directions for further research. For example, a study could
alert to declining market potential, implying that a firm is likely to have difficulties achieving
its growth targets, however to obtain more detailed insights about how to best avoid stagnating
sales it is necessary to perform a follow-up problem solving research.

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Problem Solving Research
Problem solving research is relevant when the essence of a decision problem is known but
decision makers are unable to solve the problem with their current state of knowledge. In
contrast to the problem identification research, this type of inquiry is characterized by precise
formulation of research objectives and usually calls for more formalized, quantitative methods
including surveys, experiments and observations. As a rule, the problem solving research is
more expensive and time consuming in comparison to exploratory studies.

Applications of Marketing Research

 Product Research: It studies the individual product. It studies the making and
marketing of the product. It studies the colour, size, shape, quality, packaging, brand
name and price of the product.
 Consumer Research: It studies consumer behviour, consumer needs, wants, likes,
dislikes, attitude, age, gender, income, location, buying motives, etc.
 Packaging Research: It’s a part of the product research and studies the package of the
product. It helps in improving the quality of the package, reducing cost of package and
makes it more attractive. It makes the packages more convenient for the consumers.
 Pricing Research: It selects and fixes the suitable method of pricing. It compares the
company’s price with that of competitors’.
 Advertising Research: It fixes the advertising objectives and advertising budget. It
decides about the message to be portrayed, layout, copy, slogan, headline, etc. It helps
in selecting suitable media for advertising.
 Sales Research: It studies the selling activities of the company. It studies about sales
outlets, sales territories, sales forecasting, sales trends, sales methods, effectiveness of
the sales force, etc.
 Distribution Research: It studies the channels of distribution. It helps in selecting a
suitable channel for the product and fixes the channel objectives. It identifies the
channel functions (storage, grading, competitor’s channel, etc).
 Policy Research: It evaluates the effectiveness of policies of marketing, sales,
distribution, pricing, inventory, etc.
 International Marketing Research: It studies foreign markets and collects data about
consumers for global markets and about the global economic/political conditions.

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  Motivation Research: It studies consumer buying motives. It studies those factors that
motivate consumers to buy a product and mainly finds out the reasons for consumers
buy the product. It also helps in finding out the causes of consumer behavior in the
market.

Ethical Issues in Marketing Research

Ethics in marketing research refers to moral principles or values that researcher or research
organization should consider. Marketing research has experienced a resurgence with the
widespread use of the internet and the popularity of social networking. It is easier than ever
before for companies to connect directly with customers and collect individual information that
goes into a computer database to be matched with other pieces of data collected during
unrelated transactions. The way a company conducts its market research these days can have
serious ethical repercussions, impacting the lives of consumers in ways that have yet to be fully
understood. Further, companies can be faced with a public backlash if their market research
practices are perceived as unethical.
 The Use of Deceptive Practices
The ease with which a company can access and gather data about its customers can lead
to deceptive practices and dishonesty in the company's research methods. This type of
ethical problem can run the gamut — from not telling customers that information is
being collected when they visit a website to misrepresenting research results by using
faulty data. At no time should a researcher ever coerce or pressure a respondent to give
a particular answer. Any action that uses lies and deception to find out or establish
information about consumer opinions falls under this category.
 Invasion of Privacy
One of the most serious ethical considerations involved in market research is invasion
of privacy. Companies have an unprecedented ability to collect, store and match
information relating to customers that can infringe on a person's right to privacy. In
many instances, the customer does not know or understand the extent of the company's
infiltration into his life. The company uses this information to reach the customer with
targeted advertising, but the process of targeting can have a chilling effect on personal
freedom.

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  Breaches of Confidentiality
Another significant ethical consideration involved in market research involves breaches
of confidentiality. Companies regularly share information about customers with
partners and affiliates, requiring the customer to opt-out of the sharing if he doesn't
want to be involved. Some companies sell information they have gathered on customers
to outside companies. Ethically, any unauthorized disclosure of customer information
is problematic.
 Undertaking Objective Market Research
Marketing and advertising have a significant impact on public perceptions. Market
researchers have an ethical obligation to conduct research objectively, so that available
data allows for the development of a balanced or reality-based picture. Researchers who
allow their own prejudices to skew their work tend to contribute to the perpetuation of
stereotypes in advertising, the development of destructive social constructs and the
enabling of unjust profiting from poverty.

RESEARCH PROCESS
Research is a systematic process of collecting and analysing information to increase our
understanding of the phenomenon under study. The sequential steps involved in the completion
of a research under consideration are referred to as research process. The researcher must
complete each step meticulously to accomplish the research under consideration most
effectively. Following are steps involved in the research process:
 Formulating the research problem
 Extensive literature survey
 Development of working hypothesis
 Preparing the research design
 Determining sample design
 Collecting the data
 Execution of the project
 Analysis of data
 Hypothesis testing
 Generalizations & interpretations
 Preparation of the report or the thesis

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1. Selecting the research problem (or an opportunity)
Defining the goals and objectives of a research project is one of the most important
steps in the research process. Clearly stated goals keep a research project focused. The
process of goal definition usually begins by writing down the broad and general goals
of the study. As the process continues, the goals become more clearly defined and the
research issues are narrowed. In this stage the researcher identifies a few problems areas
after developing and evaluating several alternatives.

2. Formulating Research Problem

All research begins with a question. A Research Question is a statement that identifies
the phenomenon to be studied. In this stage the researcher defines the research problem
more precisely. This gives proper and constructive direction for investigation. At this
stage the researcher sets proper research objectives.
To develop a strong research question, one should ask the following questions
 Do I know the field and its literature well?
 What are the important research questions in my field?
 What areas need further exploration?
 Could my study fill a gap and lead to greater understanding?
 Has a great deal of research already been conducted in this topic area?
 Has this study been done before? If so, is there any scope for improvement?
 Is the timing right for this question to be answered? Is it a hot topic, or is it
becoming obsolete?
 Most importantly, will my study have a significant impact on the field?
The most difficulty, aspect of research is formulating a clear, concise, &
manageable research problem. At this stage initial problem statements are
reworked and reworded many times to gain proper direction.

3. Review of Literature
One of the most important early steps in a research is the conducting of the literature
review. A literature review is an evaluative report of information found in the literature
related to the selected area of study. An elaborate literature review helps researcher to
know whether any research is done in this direction. If some research has already gone

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 into the problem under consideration, the researcher can know how his research is
different from the research which is already conducted. Literature review gives an idea
about the tools and techniques used by the earlier researcher. Information in literature
review should be organized and related directly to the research platform. It assists the
researcher in knowing the ways and means to deal with the research problem.

Researcher should undertake extensive literature survey connected with the problem.
For this purpose, the abstracting and indexing journals and published or unpublished
bibliographies are the first place to go to. Academic journals, conference proceedings,
government reports, books etc., must be tapped depending on the nature of the problem.

Uses of Literature Review:

 It helps the researcher to learn about the studies similar to their own study
and the research design & methodology adopted to carry out those studies
by earlier researchers.
 It provides useful source of data related to the subject being studied.
 It helps in introducing important and useful research personalities.
 It provides an opportunity to see the study in a historical perspective.
 It provides new ideas methods and approaches to deal with research
problems.
 It helps the researcher to compare their own study with other relevant
studies.
 It helps in anticipating the problems arising during the collection of data.
The researcher can therefore take precautions to overcome those problems.

In this process, it should be remembered that one source will lead to another. The earlier
studies, if any, which are similar to the study in hand should be carefully studied. A
good library will be a great help to the researcher at this stage.

4. Development of hypotheses
A hypothesis is an educated guess. A hypothesis is provisional statement that proposes
a possible explanation to some phenomenon or event. In other words a hypothesis is a
precise testable statement a prediction of what the researcher expects to find or prove.
Research hypothesis should be specified prior to the collection of any data.

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5. Research Design
Research design is a plan for collecting and utilizing data so that desired information
can be obtained with sufficient precision or so that a hypothesis can be tested properly.
Research design can be thought of as the structure of research. It is a plan which covers
all the aspects of the selected research. It explains: Why the study is conducted? What
is the time involved in completing the work? Objectives of the study, Types of data
needed for the study under consideration, Sources of data, sampling technique selected
for the proposed research, tools used for data collection, techniques used for data
analysis, the pattern of report to be prepared etc.

6. Determining sample Design

Researchers often use sample survey methodology to obtain information about a large
population by selecting and measuring a sample from that population. Due to the
variability of characteristics among items in the population, researchers apply scientific
sample designs in the sample selection process to reduce the risk of a distorted view of
the population, and they make inferences about the population based on the information
from the sample data.
Sampling is the process of selecting units (e.g., people, organizations) from a
population of interest so that by studying the sample we may fairly generalize our
results back to the population from which they were chosen.
Choosing a sample is an important step in any research project since it is rarely practical
or efficient to study whole populations. The aim of sampling approaches is to draw a
representative sample from the population, so that the results of studying the sample
can then be generalized back to the population.
The selection of an appropriate method depends upon the aim of the study. The most
common approach is to use random or probability samples. In a random sample the
nature of the population is defined and all members have an equal chance of selection.
The size of the sample is determined by the optimum number necessary to enable valid
inferences to be made about the population. The larger the sample size, the smaller the
chance of a random sampling error. The optimum sample size depends upon the
parameters of the phenomenon under study.

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7. Data Collection
The search for answers to research questions calls for collection of data. Data are facts,
figures and other relevant materials, past and present, serving as bases for study and
analysis. The research outcome is based on the nature and the quality of data collected
by the researcher. The required information may be collected from people directly
thorough interviews, questionnaires or by observations. The information can also be
collected from the published sources like reports, journals, newspapers, internet etc.

8. Analysis and Interpretation of Data

Once the data is collected, it should be analysed and interpreted for meaningful
inferences and conclusion. Before the data is analysed, it is important that the data
should be summarized, edited and coded wherever necessary. Editing is the process of
examination to detect errors and omissions and correct these when possible. Coding is
the process of assigning numbers or other symbols to answers to enable the responses
to be grouped into a limited number of classes.
Presenting the data analysis is another important factor to be kept in mind by the
researcher. The data collected is tabulated in the form of meaningful tables. Tables
make it possible to present a huge mass data in an orderly manner within a minimum
space
Various statistical tools are available to analyse the data. Some of the commonly used
techniques are correlation, regression, ANOVA, Chi-square.

9. Testing of Hypothesis
Hypothesis testing is the use of statistics to determine the probability that a given
hypothesis is true. The usual process of hypothesis testing consists of four steps.
a. Formulate the null hypothesis and the alternative hypothesis
b. Identify a test statistic that can be used to assess the truth of the null hypothesis.
Various tests such as t-test, z-test, chi-square test etc are used for the purpose
c. The next step is to select a significance level. Typically the 0.05 or the 0.01 level is
used.
d. The next step is to calculate a statistic analogous to the parameter specified by the
null hypothesis
e. Compare the probability value to the significance level and make the statistical
decision.

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10. Report writing
Report writing is the final stage of a research project. The purpose of the report is to
communicate the research findings to the interested persons. It explains, the problem
investigated, method adopted to collect the data, method adopted to analyse the data
and the inference.
Following guidelines will help the researcher to write the report more effectively
1. Style of the report: It is important to communicate in a way that is both acceptable
and clear to the readers.
2. Selectivity: Careful choice of words can enable the researcher to convey the exact
tone of the information in the right spirit
3. Accuracy: accurate information is essential for effective communication and
decision making. Therefore, the researcher should ensure that everything he writes
is factually accurate
4. Objectivity A report should not be an essay reflecting personal emotions and
opinions. The researcher should have an open mind when writing report. The
emphasis, therefore, should be on the factual material presented and the conclusions
drawn, rather than on any personal beliefs, biases or prejudices.
5. Conciseness: The report should be concise. A concise report is short but still
contains all the essential details. Therefore, the researcher should ask the following
question while including some information in the report- Is it necessary for this
information to be included?’
6. Simplicity: The information should be presented as simple as it can be. The
researcher should keep asking the question whether or not the reader will be able to
follow the logic of presentation.
7. Clarity and Consistency: The best way to achieve clarity in the writing is to allow
some time to elapse between the first draft and its revision. The time gap allows the
researcher to think and refine the presentation of the report.
8. Avoid Pointless Words: Sometimes we use words and phrases like basically,
actually, undoubtedly, each and every one and during the course of our investigation
etc. These words add nothing to the message and often can be eliminated without
changing the meaning or the tone of the statement.

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TYPES OF DATA

As already discussed, a researcher needs to collect different types of data for different purposes.
There are mainly two types of data, as shown in Figure-1:

Types of Data

Primary data Secondary data

Figure-1: Types of Data collection

Primary Data: Refers to the data that is collected by the researcher for a researcher for a
particular research. Primary data is the data that does not have any prior existence and collected
directly from the respondents. It is considered very reliable in comparison to all other forms of
data. However, its reliability may come under scrutiny for various reasons.
For example, the researcher may be biased while collecting data, the respondents may not feel
comfortable to answer the questions, and the researcher may influence the respondents. In all
these scenarios, primary data would not be very dependable.
Therefore, primary data collection should be done with utmost caution and prudence. Primary
data helps the researchers in understanding the real situation of a problem. It presents the
current scenario in front of the researchers; therefore, it is more effective in taking the business
decisions.

Secondary Data: Refers to the data that is collected in the past, but can be utilized in the
present scenario/research work. The collection of secondary data requires less time in
comparison to primary 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 cannot be obtained at all.

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Advantages of Secondary data
 It is economical. It saves efforts and expenses.
 It is time saving.
 It helps to make primary data collection more specific since with the help of secondary
data, we are able to make out what are the gaps and deficiencies and what additional
information needs to be collected.
 It helps to improve the understanding of the problem.
 It provides a basis for comparison for the data that is collected by the researcher.

Disadvantages of Secondary Data

 Secondary data is something that seldom fits in the framework of the marketing
research factors. Reasons for its non-fitting are:-
o Unit of secondary data collection-Suppose you want information on
disposable income, but the data is available on gross income. The
information may not be same as we require.
o Class Boundaries may be different when units are same.
Before 5 Years After 5 Years
2500-5000 5000-6000
5001-7500 6001-7000
7500-10000 7001-10000
Thus the data collected earlier is of no use to you.
 Accuracy of secondary data is not known.
 Data may be outdated.

Evaluation of Secondary Data

Because of the above mentioned disadvantages of secondary data, we will lead to evaluation
of secondary data. Evaluation means the following four requirements must be satisfied:-
1. Availability: It has to be seen that the kind of data you want is available or not. If it is
not available then you have to go for primary data.
2. Relevance: It should be meeting the requirements of the problem. For this we have two
criterion:
a. Units of measurement should be the same.
b. Concepts used must be same and currency of data should not be outdated.

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 3. Accuracy: In order to find how accurate the data is, the following points must be
considered:
a. Specification and methodology used;
b. Margin of error should be examined;
c. The dependability of the source must be seen.
4. Sufficiency: Adequate data should be available.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure. A
traditional research design is a blueprint or detailed plan for how a research study is to be
completed – operationalizing variables so they can be measured, selecting a sample of interest
to study, collecting data to be used as a basis for testing hypothesis and analyzing the results.
Decisions regarding what, where, when, how much, by what means concerning an inquiry or a
research study constitute a research design. The research design is the conceptual structure
within which research is conducted. It constitutes the blueprint for the collection, measurement
and analysis of data.
Research must ensure to:
 Convert the research question and the stated hypothesis into operational variables that
can be measured.
 Specify the process that would be followed to complete the above task, as efficiently
and economically as possible.
 Specify the control mechanisms that would be used to ensure that the effect of other
variables that could impact the outcome of the study have been controlled.

Features of Research Design

 Research design is a plan that specifies the sources and types of information relevant to
the research problem.
 It is a strategy specifying which approach will be used for gathering and analyzing the
data.
 It also includes the time and cost budgets since most studies are done under these two
constraints.

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Need for Research Design
 It facilitates the smooth sailing of the various research operations.
 Maximal information with minimal expenditure of effort, time and money.
 It helps the researcher to organize his ideas in a form whereby it will be possible for
him to look for flaws and inadequacies.
 It stands for advance planning of the methods to be adopted for collecting the relevant
data and the techniques to be used in their analysis, keeping in view the objective of the
research and the availability of staff, time and money.

Features of a good research design

 A Plan - that specifies the objectives of the study.
 An Outline - that specifies the sources & types of information relevant to the research
questions.
 A Blueprint - specifying the methods to be adopted for gathering & analyzing the data.
 A Strategy - of investigation to obtain answers of research questions & control

Concepts in Research Design

 If one variable depends upon or is a consequence of the other variable, then that variable
is a dependent variable.
 The variable that is antecedent to the dependent variable is an independent variable.
 Extraneous variable: Independent variables that are not related to the purpose of the
study, but may affect the dependent variable
 For example, a researcher wants to test the hypothesis: a relationship between
children’s gains in social studies achievement and their self-concepts.
 Self-concept is an independent variable, social studies achievement is a
dependent variable.
 Intelligence may as well affect the social studies achievement, but since
it is not related to the purpose of the study undertaken by the researcher,
it will be termed as an extraneous variable.
 Control: One important characteristic of a good research design is to minimize the
influence or effect of extraneous variable.
 Confounded relationship: When the dependent variable is not free from the influence
of extraneous variable the relationship between the dependent and independent
variables is said to be confounded/confused by an extraneous variable.

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 Research hypothesis: When a prediction or a hypothesized relationship is to be tested
by scientific methods, it is termed as research hypothesis.
 The research hypothesis is a predictive statement that relates an independent
variable to a dependent variable.
 Experimental and non-experimental hypothesis-testing research:
 When the purpose of research is to test a research hypothesis, it is termed as
hypothesis-testing research.
 It can be of the experimental design or of the non-experimental design.
 For instance, a researcher wants to study whether intelligence affects reading
ability for a group of students.
 Treatments: It is the process of using an agent, a procedure on the subject.
 For example, if we want to determine through an experiment the comparative
impact of three varieties of fertilizers on the yield of wheat, in that case the three
varieties of fertilizers will be treated as three treatments.
 Experiment: Examining the truth of a statistical hypothesis, relating to some research
problem, is known as an experiment.
 For example, an experiment to examine the usefulness of a certain newly
developed drug
 Experiments can be of two types viz., absolute experiment and comparative
experiment.
 If we want to determine the impact of a fertilizer on the yield of a crop,
it is a case of absolute experiment.
 but if we want to determine the impact of one fertilizer as compared to
the impact of some other fertilizer, our experiment then will be termed
as a comparative experiment.
 Experimental unit: The pre-determined plots or the blocks, where different treatments
are used, are known as experimental units.

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Types of Research Design

EXPLORATORY RESEARCH DESIGN

Exploratory design are also termed as formulative design. The major emphasis in such studies
is on the discovery of ideas and insights. Examples include studying reactions of strangers, the
reactions of marginal individuals, the study of individuals who are in transition from one stage
to another, the reactions of individuals from different social strata, etc. Study involving cases
that provide sharp contrasts. As the name suggests, the basic objective is to explore and obtain
clarity about the problem situation. It is very flexible and mostly involves a qualitative
investigation.
An exploratory design is conducted about a research problem when there are few or no earlier
studies to refer to or rely upon to predict an outcome. The focus is on gaining insights and
familiarity for later investigation or undertaken when research problems are in a preliminary
stage of investigation. Exploratory designs are often used to establish an understanding of how
best to proceed in studying an issue or what methodology would effectively apply to gathering
information about the issue.
The goals of exploratory research are intended to produce the following possible insights:
• Familiarity with basic details, settings, and concerns.

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 • Well-grounded picture of the situation being developed.
• Generation of new ideas and assumptions.
• Development of tentative theories or hypotheses.
• Determination about whether a study is feasible in the future.
• Issues get refined for more systematic investigation and formulation of new research
questions.
• Direction for future research and techniques get developed

What do these studies tell you?

1. Design is a useful approach for gaining background information on a particular topic.
2. Exploratory research is flexible and can address research questions of all types (what,
why, how).
3. Provides an opportunity to define new terms and clarify existing concepts.
4. Exploratory research is often used to generate formal hypotheses and develop more
precise research problems.
5. In the policy arena or applied to practice, exploratory studies help establish research
priorities and where resources should be allocated.

What these studies don't tell you?

1. Exploratory research generally utilizes small sample sizes and, thus, findings are
typically not generalizable to the population at large.
2. The exploratory nature of the research inhibits an ability to make definitive conclusions
about the findings. They provide insight but not definitive conclusions.
3. The research process underpinning exploratory studies is flexible but often
unstructured, leading to only tentative results that have limited value to decision-
makers.
4. Design lacks rigorous standards applied to methods of data gathering and analysis
because one of the areas for exploration could be to determine what method or
methodologies could best fit the research problem.

DESCRIPTIVE RESEARCH DESIGN

Descriptive design is concerned with describing the characteristics of a particular individual,
or of a group. This design is more structured and formal in nature. It is a framework used for a
conclusive research. Studies concerned with specific predictions, with narration of facts and
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characteristics concerning individual, group of situation are all examples of descriptive
research studies. Most of the social research comes under this category.
A descriptive study cannot conclusively ascertain answers to why. Descriptive research is used
to obtain information concerning the current status of the phenomena and to describe "what
exists" with respect to variables or conditions in a situation.

What do these studies tell you?

1. The subject is being observed in a completely natural and unchanged natural
environment. True experiments, whilst giving analyzable data, often adversely
influence the normal behavior of the subject.
2. Descriptive research is often used as a pre-cursor to more quantitative research
designs with the general overview giving some valuable pointers as to what
variables are worth testing quantitatively.
3. If the limitations are understood, they can be a useful tool in developing a more
focused study.
4. Descriptive studies can yield rich data that lead to important recommendations in
practice.
5. Approach collects a large amount of data for detailed analysis.

What these studies don't tell you?

1. The results from a descriptive research cannot be used to discover a definitive
answer or to disprove a hypothesis.
2. Because descriptive designs often utilize observational methods [as opposed to
quantitative methods], the results cannot be replicated.
3. The descriptive function of research is heavily dependent on instrumentation for
measurement and observation.

DIAGNOSTIC (CAUSAL) RESEARCH DESIGN

Diagnostic design determines the frequency with which something occurs or its association
with something else. The studies concerning whether certain variables are associated are
examples of diagnostic research.
Causality studies may be thought of as understanding a phenomenon in terms of conditional
statements in the form, “If X, then Y.” This type of research is used to measure what impact a
specific change will have on existing norms and assumptions. Most social scientists seek causal

20
explanations that reflect tests of hypotheses. Causal effect (nomothetic perspective) occurs
when variation in one phenomenon, an independent variable, leads to or results, on average, in
variation in another phenomenon, the dependent variable.
Conditions necessary for determining causality:
• Empirical association -- a valid conclusion is based on finding an association between
the independent variable and the dependent variable.
• Appropriate time order -- to conclude that causation was involved, one must see that
cases were exposed to variation in the independent variable before variation in the
dependent variable.
• Non-spuriousness -- a relationship between two variables that is not due to variation
in a third variable.

What do these studies tell you?

1. Causality research designs assist researchers in understanding why the world works
the way it does through the process of proving a causal link between variables and
by the process of eliminating other possibilities.
2. Replication is possible.
3. There is greater confidence the study has internal validity due to the systematic
subject selection and equity of groups being compared.

What these studies don't tell you?

1. Not all relationships are casual! The possibility always exists that, by sheer
coincidence, two unrelated events appear to be related [e.g., Punxatawney Phil
could accurately predict the duration of Winter for five consecutive years but, the
fact remains, he's just a big, furry rodent].
2. Conclusions about causal relationships are difficult to determine due to a variety of
extraneous and confounding variables that exist in a social environment. This means
causality can only be inferred, never proven.
3. If two variables are correlated, the cause must come before the effect. However,
even though two variables might be causally related, it can sometimes be difficult
to determine which variable comes first and, therefore, to establish which variable
is the actual cause and which the actual effect is.

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CROSS-SECTIONAL STUDIES
It involves a slice of the population and studies the nature of the relevant variables being
investigated.
Two essential characteristics:
 It is carried out at a single moment in time and thus the applicability is most relevant
for a specific period. (Example: study on the attitude of Americans towards Asian-
Americans, pre and post 9/11, was vastly different and a study done in 2011 would
reveal a different attitude and behaviour which might not be absolutely in line with that
found earlier).
 Study is carried out on a section of respondents from the population units under study.
 Cross-sectional research designs have three distinctive features: no time dimension; a
reliance on existing differences rather than change following intervention; and, groups
are selected based on existing differences rather than random allocation. The cross-
sectional design can only measure differences between or from among a variety of
people, subjects, or phenomena rather than a process of change. As such, researchers
using this design can only employ a relatively passive approach to making causal
inferences based on findings.

What do these studies tell you?

1. Cross-sectional studies provide a clear 'snapshot' of the outcome and the characteristics
associated with it, at a specific point in time.
2. Unlike an experimental design, where there is an active intervention by the researcher
to produce and measure change or to create differences, cross-sectional designs focus
on studying and drawing inferences from existing differences between people, subjects,
or phenomena.
3. Entails collecting data at and concerning one point in time. While longitudinal studies
involve taking multiple measures over an extended period of time, cross-sectional
research is focused on finding relationships between variables at one moment in time.
4. Groups identified for study are purposely selected based upon existing differences in
the sample rather than seeking random sampling.
5. Cross-section studies are capable of using data from a large number of subjects and,
unlike observational studies, is not geographically bound.

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 6. Can estimate prevalence of an outcome of interest because the sample is usually taken
from the whole population.
7. Because cross-sectional designs generally use survey techniques to gather data, they
are relatively inexpensive and take up little time to conduct.

What these studies don't tell you?

1. Finding people, subjects, or phenomena to study that are very similar except in one
specific variable can be difficult.
2. Results are static and time bound and, therefore give no indication of a sequence of
events or reveal historical or temporal contexts.
3. Studies cannot be utilized to establish cause and effect relationships.
4. This design only provides a snapshot of analysis so there is always the possibility that
a study could have differing results if another time-frame had been chosen.
5. There is no follow up to the findings.

LONGITUDINAL STUDIES DESIGN

A single sample of the identified population that is studied over a stretched period of time is
termed as longitudinal study design. A panel of consumers specifically chosen to study their
grocery purchase pattern is an example. These studies are often referred to as time series design
due to the repeated measurements taken over time.
A longitudinal study follows the same sample over time and makes repeated observations. For
example, with longitudinal surveys, the same group of people is interviewed at regular
intervals, enabling researchers to track changes over time and to relate them to variables that
might explain why the changes occur. Longitudinal research designs describe patterns of
change and help establish the direction and magnitude of causal relationships. Measurements
are taken on each variable over two or more distinct time periods. This allows the researcher
to measure change in variables over time. It is a type of observational study sometimes referred
to as a panel study.

What do these studies tell you?

1. Longitudinal data facilitate the analysis of the duration of a particular phenomenon.
2. Enables survey researchers to get close to the kinds of causal explanations usually
attainable only with experiments.

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 3. The design permits the measurement of differences or change in a variable from
one period to another [i.e., the description of patterns of change over time].
4. Longitudinal studies facilitate the prediction of future outcomes based upon earlier
factors.

What these studies don't tell you?

1. The data collection method may change over time.
2. Maintaining the integrity of the original sample can be difficult over an extended
period of time.
3. It can be difficult to show more than one variable at a time.
4. This design often needs qualitative research data to explain fluctuations in the
results.
5. A longitudinal research design assumes present trends will continue unchanged.
6. It can take a long period of time to gather results.
7. There is a need to have a large sample size and accurate sampling to reach
representativeness.

POTENTIAL SOURCES OF ERROR IN RESEARCH DESIGNS

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The total error is the variation between the true mean value in the population of the variable
of interest and the observed mean value obtained in the marketing research project.
Random sampling error is the variation between the true mean value for the population and
the true mean value for the original sample.
Non-sampling errors can be attributed to sources other than sampling, and they may be
random or nonrandom: including errors in problem definition, approach, scales, questionnaire
design, interviewing methods and data preparation and analysis. Non-sampling errors consist
of non-response errors and response errors.
Non-response error arises when some of the respondents included in the sample do not
respond.
Response error arises when respondents give inaccurate answers or their answers are mis-
recorded or mis-analyzed.

QUALITITATIVE RESEARCH
Qualitative Research is primarily exploratory research. It is used to gain an understanding of
underlying reasons, opinions, and motivations. It provides insights into the problem or helps to
develop ideas or hypotheses for potential quantitative research. Qualitative Research is also
used to uncover trends in thought and opinions, and dive deeper into the problem.
Qualitative data collection methods vary using unstructured or semi-structured techniques.
Some common methods include focus groups (group discussions), individual interviews, and
participation/observations. The sample size is typically small, and respondents are selected to
fulfil a given quota.

QUANTITATIVE RESEARCH
Quantitative Research is used to quantify the problem by way of generating numerical data or
data that can be transformed into usable statistics. It is used to quantify attitudes, opinions,
behaviors, and other defined variables – and generalize results from a larger sample population.
Quantitative data is designed to collect cold, hard facts. It provides support when you need to
draw general conclusions from your research.
Quantitative Research uses measurable data to formulate facts and uncover patterns in research.
Quantitative data collection methods are much more structured than Qualitative data collection
methods. Quantitative data collection methods include various forms of surveys – online
surveys, paper surveys, mobile surveys and kiosk surveys, face-to-face interviews, telephone

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interviews, longitudinal studies, website interceptors, online polls, and systematic
observations.
This approach can be further sub-classified into

 Inferential,
 Experimental and
 Simulation approaches to research.

The purpose of inferential approach to research is to form a data base from which to infer
characteristics or relationships of population. This usually means survey research where a
sample of population is studied (questioned or observed) to determine its characteristics, and it
is then inferred that the population has the same characteristics.
Experimental approach is characterised by much greater control over the research
environment and in this case some variables are manipulated to observe their effect on other
variables.
Simulation approach involves the construction of an artificial environment within which
relevant information and data can be generated. This permits an observation of the dynamic
behaviour of a system (or its sub-system) under controlled conditions. The term ‘simulation’
in the context of business and social sciences applications refers to “the operation of a
numerical model that represents the structure of a dynamic process. Given the values of initial
conditions, parameters and exogenous variables, a simulation is run to represent the behaviour
of the process over time.” Simulation approach can also be useful in building models for
understanding future conditions.

When to use qualitative vs. quantitative research

 Formulating hypotheses: Qualitative research helps you gather detailed information

on a topic. You can use it to initiate your research by discovering the problems or
opportunities people are thinking about. Those ideas can become hypotheses to be
proven through quantitative research.
 Validating your hypotheses: Quantitative research will get you numbers that you can
apply statistical analysis to in order to validate your hypotheses. Was that problem real

26
 or just someone’s perception? The hard facts obtained will enable you to make
decisions based on objective observations.
 Finding general answers: Quantitative research usually has more respondents than
qualitative research because it is easier to conduct a multiple-choice survey than a series
of interviews or focus groups. Therefore it can help you definitely answer broad
questions like: Do people prefer you to your competitors? Which of your company’s
services are most important? What ad is most appealing?
 Incorporating the human element: Qualitative research can also help in the final
stages of your project. The quotes you obtained from open-ended questions can put a
human voice to the objective numbers and trends in your results. Many times it helps
to hear your customers describe your company in their own words to uncover your blind
spots. Qualitative data will get you that.

Sources of Qualitative Data

 Interviews: One-on-one conversations that go deep into the topic at hand.
 Case studies: Collections of client stories from in-depth interviews.
 Expert opinions: High-quality information from well-informed sources.
 Focus groups: In-person or online conversation with small groups of people to listen
to their views on a product or topic.
 Open-ended survey questions: A text box in a survey that lets the respondent express
their thoughts on the matter at hand freely.
 Observational research: Observing people during the course of their habitual routines
to understand how they interact with a product, for example.

Classification of Qualitative Data

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Focus Group
The term, focus group, was coined by Ernest Ditcher, an eminent psychologist and marketing
expert. Focus group is a form of qualitative research, which is based on communication
between research participants to generate data. The focus group method of data generation
seems to be similar to group interviews. However, focus group lays more emphasis on informal
group interaction; whereas; in interview, formal interaction takes place between the interviewer
and the respondent. In focus group, the researcher does not ask questions explicitly, instead
people in the group are encouraged to talk to each other, ask questions from each other, generate
different views about the topic, and comment and add upon other’s views and experiences.
There are various types of focus groups. Some of the important types of focus groups are
mentioned as follows:
 Two-way focus group: Refers to the type of focus group in which one focus
group observes and discusses the interaction of the other focus group.
 Dual moderator focus group: Refers to the focus group, which includes
two moderators. One moderator ensures smooth discussion while the other
ensures that all topics are covered.
 Dueling moderator focus group: Refers to the focus group, which is
similar to dual moderator focus group, except the differences that two
moderators intentionally take opposite sides on the topics are discussion.
 Respondent moderator focus group: Refers to the group in which one of
the respondents acts as a moderator temporarily.
 Client participant focus group: Refers to the focus group in which client
representatives take part in the discussion.
 Mini focus group: Refers to a small group composed of 3 to 4 members
instead of 6 to 12.
 Teleconference focus group: Refers to the group in which members are not
physically present together. The members interact with each other through
a telephone network.
 Online focus group: Refers to the group in which members are connected
via the internet.
Benefits of focus groups can be mentioned as follows:
 Helps in generating new ideas, which are difficult to obtain by other
means

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  Refers to an efficient way of discussion any topic or acquiring
feedback or spreading any idea
 Helps in marketing research where customer feedback is required on
any new product
 Helps the government in acquiring feedback of people on its various
plans and policies
The disadvantages of focus group are as follows:
 Reduces the control of the researcher over the group
 Finds it difficult to analyze the conclusion drawn in a focus group as
the communication takes place in an informal way
 Lacks anonymity that may stop participants to freely express their
views

Depth Interview
 It is an unstructured personal interview conducted one on one.

Projective Technique

Projective Techniques are indirect and unstructured methods of investigation which have
been developed by the psychologists and use projection of respondents for inferring about
underline motives, urges or intentions which cannot be secure through direct questioning as the
respondent either resists to reveal them or is unable to figure out himself. These techniques are
useful in giving respondents opportunities to express their attitudes without personal
embarrassment.
These techniques helps the respondents to project his own attitude and feelings unconsciously
on the subject under study. Thus Projective Techniques play a important role in motivational
researches or in attitude surveys.

Important Projective Techniques

1. Word Association Test.
2. Completion Test.
3. Construction Techniques
4. Expression Techniques

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1. Word Association Test: An individual is given a clue or hint and asked to respond to
the first thing that comes to mind. The association can take the shape of a picture or a
word. There can be many interpretations of the same thing. A list of words is given and
you don’t know in which word they are most interested. The interviewer records the
responses which reveal the inner feeling of the respondents. The frequency with which
any word is given a response and the amount of time that elapses before the response
is given are important for the researcher. For eg: Out of 50 respondents 20 people
associate the word “ Fair” with “Complexion”.
2. Completion Test: In this the respondents are asked to complete an incomplete sentence
or story. The completion will reflect their attitude and state of mind.
3. Construction Test: This is more or less like completion test. They can give you a
picture and you are asked to write a story about it. The initial structure is limited and
not detailed like the completion test. For eg: 2 cartoons are given and a dialogue is to
written.
4. Expression Techniques: In this the people are asked to express the feeling or attitude
of other people.

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 MODULE 2: MEASUREMENT AND SCALING AND QUESTIONNAIRE
DESIGN

Learning Outcomes:
 Identify Primary Scales of Measurement
 Distinguish between Comparative and non-comparative scaling techniques.
 Examine purpose and process of designing a questionnaire.

Measurement is the process of observing and recording the observations that are collected as
part of a research effort. It is a process of mapping aspects of a domain onto other aspects of a
range according to some rule of correspondence.
Researchers always face the problem of how to measure or quantify abstract concepts and how
to relate one individual’s response to that with another response. Hence, the problem is two-
fold. First is, how to quantify a response in absolute terms, and the second is, how to relate it
with other responses. This problem is resolved by scaling process i.e. assigning the numbers or
values to responses.
Attitude measurement tends to focus on beliefs and emotional feelings. It is important for
marketers to try and understand these attitudes and influence them to gain an advantage in the
market. Measuring attitudes is a highly difficult process and unlike measurement scales in the
physical sciences like measuring height, weight, etc., measurement scales for attitude are less
precise. There are different attitude scales that can be used to measure attitudes as precisely as
possible.

MEASUREMENT TECHNIQUES
There are four techniques available:
 Questionnaires
 Depth interviews
 Attitude scales
 Observation
Questionnaires: This is a set of questions, used as an instrument for seeking relevant
information directly from respondents. Generally, a question or set of questions represents a
variable used in research. These are especially designed for a particular research and then
suitably validated before its use.

31
Depth Interviews: These are interviews in which individuals are made to express their feelings
freely and without fear of dispute or disapproval. The details are recorded in specifically
designed sheets. They are useful when one wants detailed information about a person’s
thoughts and behaviours or want to explore new issues in depth.
Attitude Scales: These scales elicit self-reports of beliefs and feelings towards an object. There
are different types of attitude scales:
 Rating scales that require the respondent to place the object at some point on a
continuum that is numerically ordered.
 Composite scales that require the respondent to express a degree of belief with regard
to several attributes of an object
 Multi-dimensional scales and scales developed using conjoint analysis used for
inferring specific aspects of an individual’s attitude towards an object at against direct
evaluation of the respondents.
Observation: This is a direct examination of behaviour or results of behaviour. These
procedures require a person to dedicate his or her attention to the behaviours of an individual
or group in a natural setting for a certain period of time.

DIFFICULTIES IN MEASUREMENT
 Irrelevant Date
 Inaccurate Response
 Researchers and Analysts get no respect
 Training in measurement is rare
 Delegating measurement strategy

SCALES OF MEASUREMENT
Scaling is the procedure of assigning numbers to various degrees of opinions, attitude and
other concepts. Scale is continuum, consisting of highest and lowest points. Scaling is applied
to the procedures for attempting to determine quantitative measures of subjective abstract
concepts. It can be done in two ways:
 Making a judgment about some characteristic of an individual & then placing
him directly on the scale that has been defined in terms of that characteristic.
 Constructing questionnaires in such a way that the score of individual’s
responses assign him a place on a scale

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There are four types of measurement scales: Nominal, Ordinal, Interval and Ratio Scales.
Nominal Scale: Nominal variables (also called categorical variables) can be placed into
categories. They don’t have a numeric value and so cannot be added, subtracted, divided or
multiplied. They also have no order; if they appear to have an order then you probably have
ordinal variables instead. The nominal scale, sometimes called the qualitative type, places non-
numerical data into categories or classifications. For example:
 Placing cats into breed type. Example: a Persian is a breed of cat.
 Putting cities into states. Example: Jacksonville is a city in Florida.
 Surveying people to find out if men or women have higher self-esteem.
 Finding out if introverts or extroverts are more likely to be philanthropic.
These pieces of information aren’t numerical. They are assigned a category (breeds of cat, cities
in Florida, men and women, introvert and extrovert). Qualitative variables are measured on the
nominal scale.

Mean Mode and Median for the Nominal Scale

The nominal scale uses categories, so finding the mean or the median makes no sense. You
could put the items in alphabetical order but even then, the middle item would have no meaning
as a median. However, a mode (the most frequent item in the set) is possible. For example, if
you were to survey a group of random people and ask them what the most romantic city in the
World is, Venice or Paris might be the most common response (the mode).

33
Ordinal Scale: The ordinal scale contains things that you can place in order. For example,
hottest to coldest, lightest to heaviest, richest to poorest. Basically, if you can rank data by 1st,
2nd, 3rd place (and so on), then you have data that’s on an ordinal scale. Median is the
appropriate measure of central tendency. Percentile / quartile is the appropriate measure of
dispersion. No correlation can be obtained for ordinal data. Only non-parametric methods can
be used in these cases.
Ordinal data is made up of ordinal variables. In other words, if you have a list that can be placed
in “first, second, third…” order, you have ordinal data. It sounds simple, but there are a couple
of elements that can be confusing:
1. You don’t have to have the exact words “first, second, third…etc.” Instead, you can have
different rating scales, like “Hot, hotter, hottest” or “Agree, strongly agree, disagree.”
2. You don’t know if the intervals between the values are equal. We know that a list of
cardinal numbers like 1, 5, 10 have a set value between them (in this case, 5) but with
ordinal data you just don’t know. For example, in a marathon you might have first, second
and third place. But if you don’t know the exact finishing times, you don’t know what the
interval between first and second, or second and third is.

Some examples of ordinal scales:

 High school class rankings: 1st, 2nd, 3rd etc..
 Social economic class: working, middle, upper.
 The Likert Scale: agree, strongly agree, disagree etc..

The Likert Scale gives another example of how you can’t be sure about intervals with ordinal
data. What is the interval between “strongly agrees” and “agrees”? It’s practically impossible
to put any kind of number to that interval. Even if you could put a number to the interval, the
gap between “strongly agree” and “agree” is likely to be much smaller than the gap between

34
“agree” and “no opinion.” Think of someone being asked to rate a question like “Chocolate is
irresistible.” Someone who likes chocolate a lot might have their pencil hover between
answering “strongly agree” or “agree”, but their pencil never hovers over “no opinion.”

Interval Scale: An interval scale has ordered numbers with meaningful divisions. Temperature
is on the interval scale: a difference of 10 degrees between 90 and 100 means the same as 10
degrees between 150 and 160. Compare that to high school ranking (which is ordinal), where
the difference between 1st and 2nd might be .01 and between 10th and 11th .5. If you have
meaningful divisions, you have something on the interval scale.

Dates are also measured on an interval scale. For example, there’s 100 years between the 20th
and 21st, and also the 21st and 22 centuries. Dates illustrate a major problem with interval
scales: the zero is arbitrary. Year zero doesn’t exist in the A.D. system (which starts at year 1)
but the Buddhist and Hindu calendars include it. Arbitrary zeros are one reason why you can’t
say that “the 10th century is twice as long as the fifth century.” This leads to another issue with
zeros in the interval scale: Zero doesn’t mean that something doesn’t exist. For example, the
year 0 doesn’t imply that time didn’t exist. And similarly, a temperature of zero doesn’t mean
that temperature doesn’t exist at that point. Arbitrary zeros (and the inability to calculate ratios
because of it) are one reason why the ratio scale — which does have meaningful zeros — is
sometimes preferred.

Ratio Scale: The ratio scale is exactly the same as the interval scale with one major difference:
zero is meaningful. For example, a height of zero is meaningful (it means you don’t exist).
Compare that to a temperature of zero, which while it exists, it doesn’t mean anything in
particular (although admittedly, in the Celsius scale it’s the freezing point for water).
A ratio scale has all the properties of an interval scale. Ratio data on the ratio scale has
measurable intervals. For example, the difference between a height of six feet and five feet is
the same as the interval between two feet and three feet. Where the ratio scale differs from the
interval scale is that it also has a meaningful zero. The zero in a ratio scale means that

35
something doesn’t exist. For example, the zero in the Kelvin temperature scale means that heat
does not exist at zero. Other examples of the ratio scale:
 Age. The clock starts ticking when you are born, but an age of “0” technically means
you don’t exist.
 Weight. At 0 pounds, you would weight nothing and therefore wouldn’t exist.
 Height. If you were 0″, you would have no height.
 Sales figures. Sales of zero means that you sold nothing and so sales didn’t exist.
 Quantity purchased. If you bought 0 items, then there were no quantities purchased.
 Time measured from the “Big Bang.”

SCALING TECHNIQUES (TYPES OF SCALES)

In Marketing Research, several scaling techniques are employed to study the relationship
between the objects. The most commonly used techniques can be classified as Comparative
and Non-Comparative Scales.

COMPARATIVE SCALES: In comparative scaling there is a direct comparison of stimulus

object. For example, the respondent might be asked directly about his preference between the

36
ink pen and gel pen. The comparative data can only be interpreted in relative terms and hence
possess the ordinal or rank-order properties. This is the reason why the comparative scaling is
also called as nonmetric scaling. The Comparative Scaling includes the following techniques:
 Paired Comparison Scaling
 Rank Order Scaling
 Constant Sum Scaling
 Q-Sort Scaling

Paired Comparison Scaling: In paired comparison scaling, respondents are asked to choose
one among two alternatives on a selected criterion. For example, a respondent may be asked to
choose between two well-known toothpaste brands on the criterion of quality. The data
obtained from paired comparison scaling is ordinal in nature. When there are more than two
stimuli involved paired comparison scaling can still be useful technique to compare various
stimuli. Let’s say, a researcher is interested in knowing consumers preference among three
different toothpaste brands, A, B and C. Using the paired comparison scaling researcher will
create three questions for respondents namely:
1. Preference between toothpaste brand A and brand B
2. Preference between toothpaste brand B and brand C
3. Preference between toothpaste brand A and brand C.
If for the first question respondent choose brand A over brand B and in the second question
chose brand B over brand C, using simple logic researcher can derive that brand A will be more
preferred in comparison to brand C. In simple terms, using paired comparison scaling
researcher can generate a rank order among stimuli. Paired comparison scaling is used in
pricing decisions frequently. It is quite helpful when the number of stimuli is limited. In such
circumstances, paired comparison can reveal direct comparisons and overt choice. However,
when large number of stimuli is involved, paired comparison scaling becomes a tedious
technique. Paired comparison scaling is highly used in product testing. Many food companies
and other Fast Moving Consumer Goods (FMCG) companies use this technique to compare
their existing product with an upcoming variant or with their competitor’s products.

The Rank Order Scaling is a yet another comparative scaling technique wherein the
respondents are presented with numerous objects simultaneously and are required to order or

37
rank these according to some specified criterion. The Rank order scaling is often used to
measure the preference for the brand and attributes.

The Constant-Sum Scaling is a technique wherein the respondents are asked to allocate a
constant sum of units, such as points, dollars, chips or chits among the stimulus objects
according to some specified criterion. For example, suppose a respondent is asked to allocate
100 points to the attributes of a body wash on the basis of the importance he attaches to each
attribute. In case he feels any attribute being unimportant can allocate zero points and in case
some attribute is twice as important as any other attribute can assign it twice the points. The
sum of all the points allocated to each attribute should be equal to 100. Once the points are
allocated, the attributes are scaled by counting the points as assigned by the respondents to each
attribute and then dividing it by a number of respondents under analysis. Such type of
information cannot be obtained from rank order data unless it is transformed into interval data.
The constant sum scaling is considered as an ordinal scale because of its comparative nature
and lack of generalization.

The Q-Sort Scaling is a Rank order scaling technique wherein the respondents are asked to
sort the presented objects into piles based on similarity according to a specified criterion such
as preference, attitude, perception, etc. For example, suppose the respondents are given 100
motivational statements on individual cards and are asked to place these in 11 piles, ranging
from the “most agreed with” to the “least agreed with”. Generally, the most agreed statement
is placed on the top while the least agreed statement at the bottom.

NON-COMPARATIVE SCALES: The non-comparative scale, also called as monadic or

metric scale is a scale in which each object is scaled independently of the other objects in the
stimulus set under study. Generally, the resulting data are assumed to be an interval and ratio
scaled. For example, a respondent may be asked to rate their preference for the gel pen on a
preference scale (1 = not at all preferred, 6 = greatly preferred). The non-comparative scale
includes the following techniques:
 Continuous Rating Scale
 Itemized Rating Scale

38
The Continuous Rating Scale is a technique wherein the respondents are asked to rate the
stimulus objects by placing a point/mark appropriately on a line running from one extreme of
the criterion to the other variable criterion. The continuous rating scale is also called as a
Graphic Rating Scale. Here the respondent can place a mark anywhere on the line based on his
opinion and is not restricted to select from the values as previously set by the researcher. The
continuous scale can observe many forms, i.e. it can either be vertical or horizontal; scale
points, in the form of numbers or brief descriptions, may be provided, and if these are provided,
then the scale points might be few or many.

The Itemized Rating Scale is an Ordinal Scale that has a brief description or numbers
associated with each category, ordered in terms of scale positions. The respondents are asked
to select the category that best describes the stimulus object being rated.
The following are the most commonly used itemized rating scales:

 Likert Scale: A Likert Scale is a scale with five response categories that ranges from
“strongly disagree” to “strongly agree”, wherein the respondent is asked to indicate the
degree of agreement or disagreement with each of the statements related to the stimulus
object under analysis.

39
 Semantic Differential Scale: The semantic differential scale is a seven-point rating
scale with the extreme points having the semantic meaning. The scale is used to
measure the meaning or semantics of words, especially the bi-polar adjectives (such as
“evil” or “good”, “warm” or “cold”) to derive the respondent’s attitude towards the
stimulus object.

40
  Stapel Scale: Stapel scale is a single adjective rating scale with 10 categories ranging
from -5 to +5 with no zero points. This scale is usually a vertical scale in which the
single adjective is placed in the middle of the even-numbered range (-5 to +5). The
respondent is asked to identify how correctly or incorrectly each term describes the
stimulus object by choosing an appropriate response category.

The itemized rating scale is widely used in marketing research and serve as a basic component
of more complex scales, such as Multi-Item Scales.

Thus, the researcher can apply any of the scaling techniques to determine the characteristic of
an individual and then locating him on the scale that best fits the defined characteristics.

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 METHODS OF DATA COLLECTION

Primary Vs Secondary Data

BASIS FOR
PRIMARY DATA SECONDARY DATA
COMPARISON

Meaning Primary data refers to the first Secondary data means data collected by
hand data gathered by the someone else earlier.
researcher himself.

Data Real time data Past data

Process Very involved Quick and easy

Source Surveys, observations, Government publications, websites,

experiments, questionnaire, books, journal articles, internal records
personal interview, etc. etc.

Cost effectiveness Expensive Economical

Collection time Long Short

Specific Always specific to the May or may not be specific to the

researcher's needs. researcher's need.

Available in Crude form Refined form

Accuracy and More Relatively less

Reliability

Advantages of Secondary Data

 Time Saving
 Easy Accessibility
 Cost Saving
 Feasibility of Studies
 Generating new insights

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Disadvantages of Secondary Data
 Inappropriateness
 Lack of control over data quality
 May not be specific to the need
 Biasness
 Lack of Availability
 Time lag issues

QUESTIONNAIRE METHOD OF COLLECTING PRIMARY DATA

This method of data collection is quite popular, particularly in case of big enquiries. In this
method a questionnaire is sent (usually by post) to the persons concerned with a request to
answer the questions and return the questionnaire. A questionnaire consists of a number of
questions printed or typed in a definite order on a form or set of forms. The questionnaire is
mailed to respondents who are expected to read and understand the questions and write down
the reply in the space meant for the purpose in the questionnaire itself. The respondents have
to answer the questions on their own.
The method of collecting data by administering the questionnaires to respondents is most
extensively employed in various economic and business surveys.

The merits claimed on behalf of this method are as follows:

 There is low cost even when the universe is large and is widely spread geographically.
 It is free from the bias of the interviewer; answers are in respondents’ own words.
 Respondents have adequate time to give well thought out answers.
 Respondents, who are not easily approachable, can also be reached conveniently.
 Large samples can be made use of and thus the results can be made more dependable
and reliable.

The main demerits of this system can also be listed here:

 Low rate of return of the duly filled in questionnaires; bias due to no-response is often
indeterminate.
 It can be used only when respondents are educated and cooperating.
 The control over questionnaire may be lost once it is sent.

43
  There is inbuilt inflexibility because of the difficulty of amending the approach once
questionnaires have been despatched.
 There is also the possibility of ambiguous replies or omission of replies altogether to
certain questions; interpretation of omissions is difficult.
 It is difficult to know whether willing respondents are truly representative.
 This method is likely to be the slowest of all.

Essentials of a questionnaire
 Minimum size
 Logical sequencing (easy to difficult)
 Place personal/intimate questions at the end
 Technical terms & Vague expression should be avoided
 Control questions to indicate the reliability of the respondents
 Avoid affecting sentiments
 Adequate space to be provided
 Provision for uncertainty
 Direction to fill up
 Physical Appearance of the questionnaire

TYPES OF QUESTIONNAIRE
Open question questionnaires. Open questions differ from other types of questions used in
questionnaires in a way that open questions may produce unexpected results, which can make
the research more original and valuable. However, it is difficult to analyze the results of the
findings when the data is obtained through the questionnaire with open questions.
Multiple choice questions. Respondents are offered a set of answers they have to choose from.
The downsize of questionnaire with multiple choice questions is that, if there are too many
answers to choose from, it makes the questionnaire, confusing and boring, and discourages the
respondent to answer the questionnaire.
Dichotomous Questions. This type of questions gives two options to respondents – yes or no,
to choose from. It is the easiest form of questionnaire for the respondent in terms of responding
it.

44
Scaling Questions. Also referred to as ranking questions, they present an option for
respondents to rank the available answers to the questions on the scale of given range of values
(for example from 1 to 10).

DESIGNING A QUESTIONNAIRE
 Specify the Information Needed: The researcher must specify the information needed
from the respondents such that the objective of the survey is fulfilled. The researcher
must completely review the components of the problem, particularly the hypothesis,
research questions, and the information needed.
 Define the Target Respondent: At the very outset, the researcher must identify the
target respondent from whom the information is to be collected. The questions must be
designed keeping in mind the type of respondents under study. The less diversified
respondent group shall be selected because the more diversified the group is, the more
difficult it will be to design a single questionnaire that is appropriate for the entire
group.
 Specify the type of Interviewing Method: The next step is to identify the way in which
the respondents are reached. In personal interviews, the respondent is presented with a
questionnaire and interacts face-to-face with the interviewer. In telephone interviews,
the respondent is required to give answers to the questions over the telephone. For a
questionnaire that is sent through mail or post, it should be self-explanatory and contain
all the important information such that the respondent is able to understand every
question and gives a complete response. The electronic questionnaires are sent directly
to the mail ids of the respondents and are required to give answers online.
 Determine the Content of Individual Questions: The researcher must decide on what
should be included in the question such that it contribute to the information needed or
serve some specific purpose. The researcher must try to avoid the use of double-
barrelled questions. A question that talks about two issues simultaneously, such as Is
the Real juice tasty and a refreshing health drink?
 Overcome Respondent’s Inability and Unwillingness to Answer: The questions
must be designed in a simple and easy language such that it is easily understood by each
respondent. In situations, where the respondent is not at all informed about the topic of
interest, then the researcher may ask the filter questions, an initial question asked in the
questionnaire to identify the prospective respondents to ensure that they fulfil the

45
 requirements of the sample. Despite being able to answer the question, the respondent
is unwilling to devote time in providing information. The researcher must attempt to
understand the reason behind such unwillingness and design the questionnaire in such
a way that it helps in retaining the respondent’s attention.
 Decide on the Question Structure: The researcher must decide on the structure of
questions to be included in the questionnaire. The question can be structured or
unstructured.
 Determine the Question Wording: The desired question content and structure must
be translated into words which are easily understood by the respondents. At this step,
the researcher must translate the questions in easy words such that the information
received from the respondents is similar to what was intended. In case, the respondent
is reluctant to give answers, then “nonresponse error” arises which increases the
complexity of data analysis. On the other hand, if the wrong information is given, then
“response error” arises due to which the result is biased.
 Determine the Order of Questions: At this step, the researcher must decide the
sequence in which the questions are to be asked. The opening questions are crucial in
establishing respondent’s involvement and rapport, and therefore, these questions must
be interesting, non-threatening and easy. Usually, the open-ended questions which ask
respondents for their opinions are considered as good opening questions, because
people like to express their opinions.
 Identify the Form and Layout: The format, positioning and spacing of questions has
a significant effect on the results. The layout of a questionnaire is specifically important
for the self-administered questionnaires. The questionnaires must be divided into
several parts, and each part shall be numbered accurately to clearly define the branches
of a question.
 Reproduction of Questionnaire: Here, we talk about the appearance of the
questionnaire, i.e. the quality of paper on which the questionnaire is either written or
printed. In case, the questionnaire is reproduced on a poor-quality paper; then the
respondent might feel the research is unimportant due to which the quality of response
gets adversely affected. In case, the questionnaire has several pages, then it should be
presented in the form of a booklet rather than the sheets clipped or stapled together.
 Pretesting: Pretesting means testing the questionnaires on a few selected respondents
or a small sample of actual respondents with a purpose of improving the questionnaire

46
 by identifying and eliminating the potential problems. All the aspects of the
questionnaire must be tested such as question content, structure, wording, sequence,
form and layout, instructions, and question difficulty. The researcher must ensure that
the respondents in the pre-test should be similar to those who are to be finally surveyed.

RELIABILITY TEST
Reliability is a measure of the stability or consistency of test scores. You can also think of it as
the ability for a test or research findings to be repeatable. For example, a medical thermometer
is a reliable tool that would measure the correct temperature each time it is used. In the same
way, a reliable math test will accurately measure mathematical knowledge for every student
who takes it and reliable research findings can be replicated over and over. Of course, it’s not
quite as simple as saying one think a test is reliable. There are many statistical tools you can
use to measure reliability. For example:
 Kuder-Richardson 20: a measure of internal reliability for a binary test (i.e. one with
right or wrong answers).
 Cronbach’s alpha: measures internal reliability for tests with multiple possible answers.

Internal reliability, or internal consistency, is a measure of how well your test is actually
measuring what you want it to measure.
External reliability means that your test or measure can be generalized beyond what you’re
using it for. For example, a claim that individual tutoring improves test scores should apply to
more than one subject. A test for depression should be able to detect depression in different
age groups, for people in different socio-economic statuses, or introverts.

A reliability coefficient is a measure of how well a test measures achievement. It is the

proportion of variance in observed scores (i.e. scores on the test) attributable to true scores (the
theoretical “real” score that a person would get if a perfect test existed). The term “reliability
coefficient” actually refers to several different coefficients:
 Cronbach’s alpha — the most widely used internal-consistency coefficient.
 A simple correlation between two scores from the same person is one of the simplest
ways to estimate a reliability coefficient. If the scores are taken at different times, then
this is one way to estimate test-retest reliability; Different forms of the test given on the
same day can estimate parallel forms reliability.

47
  Pearson’s correlation can be used to estimate the theoretical reliability coefficient
between parallel tests.
 The Spearman Brown formula is a measure of reliability for split-half tests.
 Cohen’s Kappa measures interrater reliability.
The range of the reliability coefficient is from 0 to 1.

VALIDITY TEST
Validity simply means that a test or instrument is accurately measuring what it’s supposed to.
Reliability implies consistency: if you take the ACT five times, you should get roughly the
same results every time. A test is valid if it measures what it’s supposed to. When a measure
has good test-retest reliability and internal consistency, researchers should be more confident
that the scores represent what they are supposed to. There has to be more to it, however, because
a measure can be extremely reliable but have no validity whatsoever.
As an absurd example, imagine someone who believes that people’s index finger length reflects
their self-esteem and therefore tries to measure self-esteem by holding a ruler up to people’s
index fingers. Although this measure would have extremely good test-retest reliability, it would
have absolutely no validity. The fact that one person’s index finger is a centimetre longer than
another’s would indicate nothing about which one had higher self-esteem.
Discussions of validity usually divide it into several distinct “types.” But a good way to
interpret these types is that they are other kinds of evidence—in addition to reliability—that
should be taken into account when judging the validity of a measure. Here we consider three
basic kinds: face validity, content validity, and criterion validity.
 Face validity is the extent to which a measurement method appears “on its face” to
measure the construct of interest. Most people would expect a self-esteem questionnaire
to include items about whether they see themselves as a person of worth and whether
they think they have good qualities. So a questionnaire that included these kinds of
items would have good face validity. The finger-length method of measuring self-
esteem, on the other hand, seems to have nothing to do with self-esteem and therefore
has poor face validity. Face validity is at best a very weak kind of evidence that a
measurement method is measuring what it is supposed to. One reason is that it is based
on people’s intuitions about human behavior, which are frequently wrong.
 Content validity is the extent to which a measure “covers” the construct of interest.
For example, if a researcher conceptually defines test anxiety as involving both

48
 sympathetic nervous system activation (leading to nervous feelings) and negative
thoughts, then his measure of test anxiety should include items about both nervous
feelings and negative thoughts. Or consider that attitudes are usually defined as
involving thoughts, feelings, and actions toward something. By this conceptual
definition, a person has a positive attitude toward exercise to the extent that he or she
thinks positive thoughts about exercising, feels good about exercising, and actually
exercises. So to have good content validity, a measure of people’s attitudes toward
exercise would have to reflect all three of these aspects. Like face validity, content
validity is not usually assessed quantitatively. Instead, it is assessed by carefully
checking the measurement method against the conceptual definition of the construct.
 Criterion validity is the extent to which people’s scores on a measure are correlated
with other variables (known as criteria) that one would expect them to be correlated
with. For example, people’s scores on a new measure of test anxiety should be
negatively correlated with their performance on an important school exam. If it were
found that people’s scores were in fact negatively correlated with their exam
performance, then this would be a piece of evidence that these scores really represent
people’s test anxiety. But if it were found that people scored equally well on the exam
regardless of their test anxiety scores, then this would cast doubt on the validity of the
measure.
A criterion can be any variable that one has reason to think should be correlated with
the construct being measured, and there will usually be many of them. When the
criterion is measured at the same time as the construct, criterion validity is referred to
as concurrent validity; however, when the criterion is measured at some point in the
future (after the construct has been measured), it is referred to as predictive validity
(because scores on the measure have “predicted” a future outcome).

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 MODULE 3: SAMPLING METHODS AND FIELD PROCEDURE

Learning Outcomes:
 Develop and use sampling design process
 Take statistical approach to determining sample size and the construction of
confidence intervals.

SAMPLE DESIGN
The researcher must decide the way of selecting a sample, which is popularly known as sample
design. Sample design is a definite plan determined before any data are actually collected for
obtaining a sample from a given population.

SAMPLING
Sampling is a process of selecting representative units from an entire population of a study.
The process of selecting a number of individuals for a study in such a way that the individuals
represent the larger group from which they were selected. In other words, sampling is the
selection of some part of an aggregate or a whole on the basis of which judgments or inferences
about the aggregate or mass is made. It is a process of obtaining information regarding a
phenomenon about entire population by examining a part of it.

A good sample is one which satisfies all or few of the following conditions:
 Representativeness: When sampling method is adopted by the researcher, the basic
assumption is that the samples so selected out of the population are the best
representative of the population under study. Thus good samples are those who
accurately represent the population. Probability sampling technique yield
representative samples. On measurement terms, the sample must be valid. The validity
of a sample depends upon its accuracy.
 Accuracy: Accuracy is defined as the degree to which bias is absent from the sample.
An accurate (unbiased) sample is one which exactly represents the population. It is free
from any influence that causes any differences between sample value and population
value.

50
  Size: A good sample must be adequate in size and reliable. The sample size should be
such that the inferences drawn from the sample are accurate to a given level of
confidence to represent the entire population under study.

Purpose of Sampling
 Economical
 Improved Quality of Data
 Quick Study Results
 Precision and Accuracy of Data
The whole purpose of sampling is to gather data about the population in order to make an
inference that can be generalized to the population.

Factors affecting the sampling process

 Nature of the researcher

 Inexperience
 No interest
 Dishonest
 Workload
 Lack of supervision
 Nature of the sample
 Inappropriate sampling technique
 Defective Sampling frame
 Improper sample size
 Circumstances
 Lack of time, geographical area constraint, lack of cooperation.

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Sampling Process
An operational sampling process can be divided into seven steps as given below:
 Defining the target population.
 Specifying the sampling frame.
 Specifying the sampling unit.
 Selection of the sampling method.
 Determination of sample size.
 Specifying the sampling plan.
 Selecting the sample.

 Defining the Target Population:

Defining the population of interest, for business research, is the first step in sampling
process. In general, target population is defined in terms of element, sampling unit,
extent, and time frame. The definition should be in line with the objectives of the
research study. For ex, if a kitchen appliances firm wants to conduct a survey to
ascertain the demand for its micro ovens, it may define the population as ‘all women
above the age of 20 who cook (assuming that very few men cook)’. However this
definition is too broad and will include every household in the country, in the population
that is to be covered by the survey. Therefore the definition can be further refined and
defined at the sampling unit level, that, all women above the age 20, who cook and
whose monthly household income exceeds Rs.20,000. This reduces the target
population size and makes the research more focused. The population definition can be
refined further by specifying the area from where the researcher has to draw his sample,
that is, households located in a particular city, say Bengaluru.
A well-defined population reduces the probability of including the respondents who do
not fit the research objective of the company. For ex, if the population is defined as all
women above the age of 20, the researcher may end up taking the opinions of a large
number of women who cannot afford to buy a micro oven.

 Specifying the Sampling Frame:

Once the definition of the population is clear a researcher should decide on the sampling
frame. A sampling frame is the list of elements from which the sample may be drawn.
Continuing with the micro oven ex, an ideal sampling frame would be a database that

52
 contains all the households that have a monthly income above Rs.20,000. However, in
practice it is difficult to get an exhaustive sampling frame that exactly fits the
requirements of a particular research. In general, researchers use easily available
sampling frames like telephone directories and lists of credit card and mobile phone
users. Various private players provide databases developed along various demographic
and economic variables. Sometimes, maps and aerial pictures are also used as sampling
frames. Whatever may be the case, an ideal sampling frame is one that entire population
and lists the names of its elements only once.
A sampling frame error pops up when the sampling frame does not accurately represent
the total population or when some elements of the population are missing another
drawback in the sampling frame is over –representation. A telephone directory can be
over represented by names/household that have two or more connections.

 Specifying the Sampling Unit:

A sampling unit is a basic unit that contains a single element or a group of elements of
the population to be sampled. In this case, a household becomes a sampling unit and all
women above the age of 20 years living in that particular house become the sampling
elements. If it is possible to identify the exact target audience of the business research,
every individual element would be a sampling unit. This would present a case of
primary sampling unit. However, a convenient and better means of sampling would be
to select households as the sampling unit and interview all females above 20 years, who
cook. This would present a case of secondary sampling unit.

 Selection of the Sampling Method:

The sampling method outlines the way in which the sample units are to be selected. The
choice of the sampling method is influenced by the objectives of the business research,
availability of financial resources, time constraints, and the nature of the problem to be
investigated. All sampling methods can be grouped under two distinct heads, that is,
probability and non-probability sampling.

 Determination of Sample Size:

The sample size plays a crucial role in the sampling process. There are various ways of
classifying the techniques used in determining the sample size. A couple those hold

53
 primary importance and are worth mentioning are whether the technique deals with
fixed or sequential sampling and whether its logic is based on traditional or Bayesian
methods. In non-probability sampling procedures, the allocation of budget, thumb rules
and number of sub groups to be analyzed, importance of the decision, number of
variables, nature of analysis, incidence rates, and completion rates play a major role in
sample size determination. In the case of probability sampling, however, formulas are
used to calculate the sample size after the levels of acceptable error and level of
confidence are specified.

 Specifying the Sampling Plan:

In this step, the specifications and decisions regarding the implementation of the
research process are outlined. Suppose, blocks in a city are the sampling units and the
households are the sampling elements. This step outlines the modus operandi of the
sampling plan in identifying houses based on specified characteristics. It includes issues
like how is the interviewer going to take a systematic sample of the houses. What should
the interviewer do when a house is vacant? What is the re-contact procedure for
respondents who were unavailable? All these and many other questions need to be
answered for the smooth functioning of the research process. These are guide lines that
would help the researcher in every step of the process. As the interviewers and their co-
workers will be on field duty of most of the time, a proper specification of the sampling
plans would make their work easy and they would not have to revert to their seniors
when faced with operational problems.

 Selecting the Sample:

This is the final step in the sampling process, where the actual selection of the sample
elements is carried out. At this stage, it is necessary that the interviewers stick to the
rules outlined for the smooth implementation of the business research. This step
involves implementing the sampling plan to select the sampling plan to select a sample
required for the survey.

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Sampling Methods
Probability Sampling: A method of sampling that enables the researcher to specify for each
case in the population the probability of its inclusion in the sample. A probability sampling
scheme is one in which every unit in the population has a chance (greater than zero) of being
selected in the sample, and this probability can be accurately determined. The combination of
these traits makes it possible to produce unbiased estimates of population totals, by weighting
sampled units according to their probability of selection.

Non-Probability Sampling:
Nonprobability sampling is any sampling method where some elements of the population have
no chance of selection (these are sometimes referred to as ‘out of coverage’/’undercovered’),
or where the probability of selection can’t be accurately determined. It involves the selection
of elements based on assumptions regarding the population of interest, which forms the criteria
for selection. Hence, because the selection of elements is non-random, nonprobability sampling
does not allow the estimation of sampling errors. These conditions place limits on how much
information a sample can provide about the population. Information about the relationship
between sample and population is limited, making it difficult to extrapolate from the sample to
the population.

Probability Sampling Methods

 Simple Random Sampling:
A sampling process where each element in the target population has an equal chance or
probability of inclusion in the sample is known as simple random sampling. For ex, if
a sample of 15000 names is to be drawn from the telephone directory, then there is
equal chance for each number in the directory to be selected. These numbers (serial no
of name) could be randomly generated by the computer or picked out of a box. These
numbers could be later matched with the corresponding names thus fulfilling the list.
In small populations random sampling is done without replacement to avoid the
instance of a unit being sampled more than once.
The benefits of simple random sampling can be reaped when the target population size
is small, homogeneous, sampling frame is clearly defined, and not much information is
available regarding the population. It is advantageous in that it is free of classification
error, and requires minimum advance knowledge of the population. Two striking
features are the elimination of human bias and non-dependency on the availability of
55
 the element. It is seldom put into practice because of the application problem associated
with it. This sampling method is generally not preferred as it becomes imperative to list
every item in the population prior to the sampling and requires constructing a very large
sampling frame, resulting in extensive sampling calculations and excessive costs.

 Systematic Sampling:
Systematic sampling involves the selection of every kth element from a sampling frame.
Here ‘k’ represents the skip interval and is calculated using the following formulae.
Skip interval (k) = population size/Sample size
Often used as a substitute to simple random sample, it involves the selection of units
from a list using a skip interval (k) so that every k’th element on the list, following a
random start between 1 and k, is included in the sample. For ex, if k were to equal 6,
and the random start were2, then the sample would consists of 2nd, 8th, 14th, 20th
…….elements of the sampling frame.
It is to be noted here that if the skip interval is not a whole number then it is rounded
off to the nearest whole number. This sampling method can be used industrial
operations where the equipment and machinery in the production line are checked for
proper functioning as per the specifications. The manufacturer can select every k’th
item to ensure consistent quality or for detection of defects. Therefore, he requires the
first item to be selected at the random as the starting point and subsequently he can
choose every k’th item for evaluation against specifications. It also finds its
applicability while questioning people in a sample survey where the interviewer may
catch hold of every 10th person entering a particular shop. However, in every case, the
researcher has to determine the skip interval and proceed thereafter. In both the cases,
it is necessary to select the first item in the population in a random manner and thereafter
follow the skip interval. This method is more economical and less time consuming than
simple random sampling.

 Stratified random sampling:

Stratification is the process of grouping the members of the population in homogenous
group before sampling. It should be ensured that each element in the population is
assigned a particular stratum only. The random sampling is applied within each stratum

56
 independently. This often improves the representativeness of the sample by reducing
the sampling error.
The number of units drawn for sampling from each stratum depends on the
homogeneity of the elements. A smaller sample can be drawn from the known to have
the elements with the same value whereas sample can be drawn in much higher
proportion from another stratum where the values are known to differ. This is because
in the former case the information from the smaller number of respondents can be
enumerated to the whole sample stratum. However in the latter case with much
variability among the elements the higher elements value will keep the sampling to
minimum errors to minimum value. The smaller errors may be due to groups are
appreciably represented when strata are combined.
Proportionate stratified sample – The size of the sample selected from each subgroup
is proportional to the size of that subgroup in the entire population.
Disproportionate stratified sample – The size of the sample selected from each
subgroup is disproportional to the size of that subgroup in the population.

 Cluster sampling:
Clustering involves grouping the population into various clusters and selecting few
clusters for study. Cluster sampling is suitable for conducting research studies that
cover large geographic area. Once the cluster is formed the researcher can either go for
one stage, two stages, or multi stage cluster sampling. In single stage, all the elements
from each selected are studied, whereas in two stages, the researchers use random to
select few elements from clusters.
Multistage sampling involves selecting a sample in two or more successive stages.
Here the cluster selected in the first stage can be divided into cluster units.
For example consider the case where a company decides to interview 400 households
about the likeability of its new detergent in a metropolitan city. To minimize the
resources and time researchers divide the city into separate blocks say 40, each block
consist of heterogeneous units. The researcher may opt for the two stage cluster
sampling if he finds that individual clusters have little heterogeneity to other clusters.
Similarly a multi stage cluster sampling involves three or more sampling steps, it differs
from stratified sampling that is done in cluster in contrast to elements within strata as
is the case in the stratified sampling. Elements are randomly selected from each stratum

57
 in each stratum in case of stratified sampling whereas only selected clusters are studied
in cluster sampling.

Stratified Vs Cluster Sampling

BASIS FOR
STRATIFIED SAMPLING CLUSTER SAMPLING
COMPARISON

Meaning Stratified sampling is one, in Cluster sampling refers to a

which the population is divided sampling method wherein the
into homogeneous segments, members of the population are
and then the sample is randomly selected at random, from naturally
taken from the segments. occurring groups called 'cluster'.

Sample Randomly selected individuals All the individuals are taken from
are taken from all the strata. randomly selected clusters.

Selection of Individually Collectively

population elements

Homogeneity Within group Between groups

Heterogeneity Between groups Within group

Bifurcation Imposed by the researcher Naturally occurring groups

Objective To increase precision and To reduce cost and improve

representation. efficiency.

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Non-Probability Sampling Methods

 Judgmental Sampling: Purposive sampling, also known as judgmental, selective or

subjective sampling, is a type of non-probability sampling technique. It focuses on
sampling techniques where the units that are investigated are based on the judgement
of the researcher. The sample being investigated is quite small, especially when
compared with probability sampling techniques. The main goal of purposive sampling
is to focus on particular characteristics of a population that are of interest, which will
best enable you to answer your research questions. For instance, if a researcher is
interested in learning more about students at the top of their class, he or she is going to
sample those students who fall into the "top of the class" category. They will be
purposively selected because they meet a certain characteristic. Purposive sampling can
be very useful for situations where you need to reach a targeted sample quickly and
where sampling for proportionality is not the main concern.

 Convenience Sampling: A convenience sample is one of the main types of non-

probability sampling methods. A convenience sample is made up of people who are
easy to reach. Convenience sampling is used because it is quick, inexpensive, and
convenient. A statistical method of drawing representative data by selecting people
because of the ease of their volunteering or selecting units because of their availability
or easy access.
The advantages of this type of sampling are the availability and the quickness with
which data can be gathered. The disadvantages are the risk that the sample might not
represent the population as a whole, and it might be biased by volunteers. Convenience
sampling method can be applied by stopping random people on the street and asking
questionnaire questions.

 Snowball Sampling: Snowball sampling (or chain sampling, chain-referral sampling,

referral sampling) is a non-probability sampling technique where existing study
subjects recruit future subjects from among their acquaintances. Some populations that
we are interested in studying can be hard-to-reach and/or hidden such as drug addicts,
homeless people, individuals with AIDS/HIV, and so forth. Such populations can be
hard-to-reach and/or hidden because they exhibit some kind of social stigma, illicit or
illegal behaviours, or other trait that makes them atypical and/or socially marginalized.
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 A snowball sample is one in which the researcher collects data on the few members of
the target population he or she can locate, then asks those individuals to provide
information needed to locate other members of that population whom they know.
To create a snowball sample, there are two steps:
 Identify one or more units in the desired population; and
 Use these units to find further units and so on until the sample size is met.
Advantages of snowball sampling:
 It allows for studies to take place where otherwise it might be impossible to
conduct because of a lack of participants.
 Snowball sampling may help you discover characteristics about a population
that you weren’t aware existed. For example, the casual illegal downloader vs.
the for-profit downloader.
Disadvantages of snowball sampling:
 It is usually impossible to determine the sampling error or make inferences
about populations based on the obtained sample.

 Quota sampling is a non-probability sampling technique wherein the assembled

sample has the same proportions of individuals as the entire population with respect to
known characteristics, traits or focused phenomenon.
 A sampling method of gathering representative data from a group which
requires that representative individuals are chosen out of a specific subgroup.
 To create a quota sample, there are three steps:
 Choosing the relevant stratification and dividing the population
accordingly
 Calculating a quota for each stratum and
 Continuing to invite cases until the quota for each stratum is met.

Sample Size:
The sample size is an important feature of any empirical study in which the goal is to make
inferences about a population from a sample. Sample size determination is the act of choosing
the number of observations or replicates to include in a statistical sample. The thumb rule has
been proposed for determining sample size where sample size larger than 30 and less than 500
are appropriate for most research, and the minimum size of sample should be 30% of the
population.

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The size of the sample depends on a number of factors and the researchers have to give the
statistically information before they can get an answer. For example, confidence level, standard
deviation, margin of error and population size are considered to determine the sample size. The
following points are taken into account for determining the sample size in this approach.
 The variability of the population: Higher the variability as measured by the population
standard deviation, larger will be the size of the sample.
 The confidence attached to the estimate: Higher the confidence the researcher wants for
the estimate, larger will be sample size.
 The allowable error or margin of error: Greater the precision the research seeks, larger
would be the size of the sample.

Sample size for estimating population mean - The formula for determining sample size is given
as:

Where
 n = Sample size
 σ = Population standard deviation
 e = Margin of error
 Z = The value for the given confidence interval

Field Research
Field research is defined as a qualitative method of data collection that aims to observe, interact
and understand people while they are in a natural environment. For example, nature
conservationists observe behavior of animals in their natural surroundings and the way they
react to certain scenarios. In the same way, social scientists conducting field research may
conduct interviews or observe people from a distance to understand how they behave in a social
environment and how they react to situations around them.

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Steps in conducting Field Research:
 Build the Right Team
 Recruiting People for Study
 Data Collection Methodology
 Site Visit
 Data Analysis
 Communicating the Results

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 MODULE 4: STATISTICAL TESTING

Learning Outcomes:
 Turn statistical findings into marketing information that gets attention.
 Concepts of correlation and linear functions.

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the
goal of discovering useful information, suggesting conclusions, and supporting decision-
making. In statistical applications, some people divide data analysis into exploratory data
analysis (EDA), descriptive statistics, and inferential Statistics.

Exploratory data analysis (EDA) is an approach to analyzing data sets to summarize their
main characteristics, often with visual methods. A statistical model can be used or not, but
primarily EDA is for seeing what the data can tell us beyond the formal modeling or hypothesis
testing task. Exploratory data analysis was promoted by John Tukey to encourage statisticians
to explore the data, and possibly formulate hypotheses that could lead to new data collection
and experiments.
There are a number of tools that are useful for EDA, but EDA is characterized more by the
attitude taken than by particular techniques.
Typical graphical techniques used in EDA are:
 Box plot
 Histogram
 Multi-vari chart
 Pareto chart
 Scatter plot
 Stem-and-leaf plot

Descriptive statistics is the term given to the analysis of data that helps describe, show or
summarize data in a meaningful way such that patterns might emerge from the data. Descriptive
statistics do not, however, allow us to make conclusions beyond the data we have analysed or
reach conclusions. They are simply a way to describe our data. Descriptive statistics therefore
enables us to present the data in a more meaningful way, which allows simpler interpretation
of the data. For example, if we had the results of 100 pieces of students' coursework, we may

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be interested in the overall performance of those students. We would also be interested in the
distribution or spread of the marks. Descriptive statistics allow us to do this.
Typically, there are two general types of statistic that are used to describe data:
Measures of central tendency: These are ways of describing the central position of a
frequency distribution for a group of data. In this case, the frequency distribution is simply the
distribution and pattern of marks scored by the 100 students from the lowest to the highest. We
can describe this central position using a number of statistics, including the mode, median, and
mean.
Measures of spread: These are ways of summarizing a group of data by describing how spread
out the scores are. For example, the mean score of our 100 students may be 65 out of 100.
However, not all students will have scored 65 marks. Rather, their scores will be spread out.
Some will be lower and others higher. Measures of spread help us to summarize how spread
out these scores are. To describe this spread, a number of statistics are available to us, including
the range, quartiles, absolute deviation, variance and standard deviation.

Inferential statistics are techniques that allow us to use these samples to make generalizations
about the populations from which the samples were drawn. It is, therefore, important that the
sample accurately represents the population. Inferential statistics arise out of the fact that
sampling naturally incurs sampling error and thus a sample is not expected to perfectly
represent the population. The methods of inferential statistics are (1) the estimation of
parameter(s) and (2) testing of statistical hypotheses.

HYPOTHESIS
A hypothesis may be defined as a proposition or a set of proposition set forth as an explanation
for the occurrence of some specified group of phenomena either asserted merely as a
provisional conjecture to guide some investigation or accepted as highly probable in the light
of established facts. Quite often a research hypothesis is a predictive statement, capable of
being tested by scientific methods, that relates an independent variable to some dependent
variable.

For example, consider statements like the following ones:

“Students who receive counselling will show a greater increase in creativity than students not
receiving counselling” Or
“Automobile A is performing as well as automobile B.”

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These are hypotheses capable of being objectively verified and tested. Thus, we may conclude
that a hypothesis states what we are looking for and it is a proposition which can be put to a
test to determine its validity.

CHARACTERISTICS OF HYPOTHESIS

Hypothesis must possess the following characteristics:

 Hypothesis should be clear and precise. If the hypothesis is not clear and precise, the
inferences drawn on its basis cannot be taken as reliable.
 Hypothesis should be capable of being tested. In a swamp of untestable hypotheses,
many a time the research programmes have bogged down. Some prior study may be
done by researcher in order to make hypothesis a testable one. A hypothesis “is testable
if other deductions can be made from it which, in turn, can be confirmed or disproved
by observation.”
 Hypothesis should state relationship between variables, if it happens to be a relational
hypothesis.
 Hypothesis should be limited in scope and must be specific. A researcher must
remember that narrower hypotheses are generally more testable and he should develop
such hypotheses.
 Hypothesis should be stated as far as possible in most simple terms so that the same is
easily understandable by all concerned. But one must remember that simplicity of
hypothesis has nothing to do with its significance.
 Hypothesis should be consistent with most known facts i.e., it must be consistent with
a substantial body of established facts. In other words, it should be one which judges
accept as being the most likely.
 Hypothesis should be amenable to testing within a reasonable time. One should not use
even an excellent hypothesis, if the same cannot be tested in reasonable time for one
cannot spend a life-time collecting data to test it.
 Hypothesis must explain the facts that gave rise to the need for explanation. This
means that by using the hypothesis plus other known and accepted generalizations, one
should be able to deduce the original problem condition. Thus hypothesis must actually
explain what it claims to explain; it should have empirical reference.

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NULL AND ALTERNATE HYPOTHESIS

Null hypothesis always predicts that

 no differences between the groups being studied (e.g., experimental vs. control group)
or
 no relationship between the variables being studied
The null hypothesis is essentially the "devil's advocate" position. That is, it assumes that
whatever you are trying to prove did not happen.
By contrast, the alternate hypothesis always predicts that there will be a difference between
the groups being studied (or a relationship between the variables being studied). The alternative
hypothesis states the opposite and is usually the hypothesis you are trying to prove.
The null hypothesis and the alternative hypothesis are chosen before the sample is drawn (the
researcher must avoid the error of deriving hypotheses from the data that he collects and then
testing the hypotheses from the same data). In the choice of null hypothesis, the following
considerations are usually kept in view:
 Alternative hypothesis is usually the one which one wishes to prove and the null
hypothesis is the one which one wishes to disprove. Thus, a null hypothesis represents
the hypothesis we are trying to reject, and alternative hypothesis represents all other
possibilities.
 If the rejection of a certain hypothesis when it is actually true involves great risk, it is
taken as null hypothesis because then the probability of rejecting it when it is true is
(the level of significance) which is chosen very small.
 Null hypothesis should always be specific hypothesis i.e., it should not state about or
approximately a certain value.

Important concepts in Hypothesis

Type 1 and Type 2 Errors:
 A type 1 error occurs when null hypothesis is rejected even when it is true
 Accepting a null hypothesis when it is false is called a type II error

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 DATA ANALYSIS OUTCOME

In Population Accept Null Reject Null

Hypothesis Hypothesis
Null Correct Type I Error
Hypothesis Decision
True
Null Type II Error Correct
Hypothesis Decision
False

Level of Significance:
The significance level, also denoted as alpha or α, is the probability of rejecting the null
hypothesis when it is true (type 1 error). For example, a significance level of 0.05 indicates a
5% risk of concluding that a difference exists when there is no actual difference.

One tailed and two tailed tests

If a significance level of 0.05 is used, a two-tailed test allots half of your alpha to testing the
statistical significance in one direction and half of your alpha to testing statistical significance
in the other direction. This means that .025 is in each tail of the distribution of your test
statistic.
When using a two-tailed test, regardless of the direction of the relationship you hypothesize,
you are testing for the possibility of the relationship in both directions.
If you are using a significance level of .05, a one-tailed test allots all of your alpha to testing
the statistical significance in the one direction of interest. This means that .05 is in one tail of
the distribution of your test statistic.
When using a one-tailed test, you are testing for the possibility of the relationship in one
direction and completely disregarding the possibility of a relationship in the other direction.

Critical Value
In hypothesis testing, a critical value is a point on the test distribution that is compared to the
test statistic to determine whether to reject the null hypothesis. If the absolute value of your
test statistic is greater than the critical value, you can declare statistical significance and reject
the null hypothesis.

Acceptance and Rejection Regions

All possible values which a test-statistic may assume can be divided into two mutually
exclusive groups:

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  one group consisting of values which appear to be consistent with the null
hypothesis and
 the other having values which are unlikely to occur if Ho is true.
The first group is called the acceptance region and the second set of values is known as the
rejection region for a test.
The rejection region is also called the critical region. The value(s) that separates the critical
region from the acceptance region is called the critical value(s). The critical value which can
be in the same units as the parameter or in the standardized units, is to be decided by the
experimenter keeping in view the degree of confidence they are willing to have in the null
hypothesis.

Steps in Testing Hypothesis

Step 1: Formulate Null and Alternate Hypothesis
Step 2: Select level of significance
Step 3: Calculate the test statistic
Step 4: Locate the test statistic
Step 5: Draw inference

As has been stated above that hypothesis testing determines the validity of the assumption
(technically described as null hypothesis) with a view to choose between two conflicting
hypotheses about the value of a population parameter. Hypothesis testing helps to decide on
the basis of a sample data, whether a hypothesis about the population is likely to be true or
false. Statisticians have developed several tests of hypotheses (also known as the tests of
significance) for the purpose of testing of hypotheses which can be classified as: (a) Parametric
tests or standard tests of hypotheses; and (b) Non-parametric tests or distribution-free test of
hypotheses.

Parametric tests usually assume certain properties of the parent population from which we
draw samples. Assumptions like observations come from a normal population, sample size is
large, assumptions about the population parameters like mean, variance, etc., must hold good
before parametric tests can be used. But there are situations when the researcher cannot or does
not want to make such assumptions. In such situations we use statistical methods for testing
hypotheses which are called non-parametric tests because such tests do not depend on any
assumption about the parameters of the parent population. Besides, most non-parametric tests

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assume only nominal or ordinal data, whereas parametric tests require measurement equivalent
to at least an interval scale. As a result, non-parametric tests need more observations than
parametric tests to achieve the same size of Type I and Type II errors.

IMPORTANT PARAMETRIC TESTS

The important parametric tests are: (1) z-test; (2) t-test; (*3) χ2-test, and (4) F-test. All these
tests are based on the assumption of normality i.e., the source of data is considered to be
normally distributed.
z-test is based on the normal probability distribution and is used for judging the significance
of several statistical measures, particularly the mean. The relevant test statistic*, z, is worked
out and compared with its probable value (to be read from table showing area under normal
curve) at a specified level of significance for judging the significance of the measure concerned.
This is a most frequently used test in research studies.
Example:

t-test is based on t-distribution and is considered an appropriate test for judging the significance
of a sample mean or for judging the significance of difference between the means of two
samples in case of small sample(s) when population variance is not known (in which case we
use variance of the sample as an estimate of the population variance). In case two samples are

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related, we use paired t-test (or what is known as difference test) for judging the significance
of the mean of difference between the two related samples. It can also be used for judging the
significance of the coefficients of simple and partial correlations. The relevant test statistic, t,
is calculated from the sample data and then compared with its probable value based on t-
distribution (to be read from the table that gives probable values of t for different levels of
significance for different degrees of freedom) at a specified level of significance for concerning
degrees of freedom for accepting or rejecting the null hypothesis. It may be noted that t-test
applies only in case of small sample(s) when population variance is unknown.

χ2 -test is based on chi-square distribution and as a parametric test is used for comparing a
sample variance to a theoretical population variance.
Example:

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IMPORTANT CHARACTERISTICS OF χ2 TEST
 This test (as a non-parametric test) is based on frequencies and not on the parameters
like mean and standard deviation.
 The test is used for testing the hypothesis and is not useful for estimation.
 This test possesses the additive property as has already been explained.
 This test can also be applied to a complex contingency table with several classes and as
such is a very useful test in research work.
 This test is an important non-parametric test as no rigid assumptions are necessary in
regard to the type of population, no need of parameter values and relatively less
mathematical details are involved.

F-test is based on F-distribution and is used to compare the variance of the two-independent
samples. This test is also used in the context of analysis of variance (ANOVA) for judging the
significance of more than two sample means at one and the same time. It is also used for judging
the significance of multiple correlation coefficients. Test statistic, F, is calculated and
compared with its probable value (to be seen in the F-ratio tables for different degrees of
freedom for greater and smaller variances at specified level of significance) for accepting or
rejecting the null hypothesis.

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LIMITATIONS OF THE TESTS OF HYPOTHESES
We have described above some important test often used for testing hypotheses on the basis of
which important decisions may be based. But there are several limitations of the said tests
which should always be borne in mind by a researcher. Important limitations are as follows:
 The tests should not be used in a mechanical fashion. It should be kept in view that
testing is not decision-making itself; the tests are only useful aids for decision-making.
Hence “proper interpretation of statistical evidence is important to intelligent
decisions.”6
 Test do not explain the reasons as to why does the difference exist, say between the
means of the two samples. They simply indicate whether the difference is due to
fluctuations of sampling or because of other reasons but the tests do not tell us as to
which is/are the other reason(s) causing the difference.
 Results of significance tests are based on probabilities and as such cannot be expressed
with full certainty. When a test shows that a difference is statistically significant, then
it simply suggests that the difference is probably not due to chance.
 Statistical inferences based on the significance tests cannot be said to be entirely correct
evidences concerning the truth of the hypotheses. This is specially so in case of small
samples where the probability of drawing erring inferences happens to be generally
higher. For greater reliability, the size of samples be sufficiently enlarged.
All these limitations suggest that in problems of statistical significance, the inference
techniques (or the tests) must be combined with adequate knowledge of the subject-matter
along with the ability of good judgement.

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