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Transcript of SIMC Market Research Final
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Marketing Research
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Chapter One
A Decision MakingPerspective onMarketing Intelligence
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Business Intelligence
BI is the ability to access data from multiple sourceswithin an organization for the purpose of analysis.
It links the disparate operation systems to the end
users of the data, thus creating an environment withfree flow of information.
It offers a reliable barometer of the businessperformance.
The applications of BI tools are immense and can beprofitable across different functions of anorganization.
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Business Intelligence
Finance & Accounting
Intelligence Marketing Intelligence HR Intelligence Operations Intelligence
Marketing Research
Define problem & info. needs
Look forexisting data
Design study
Collect & Analyze data
Use & Report data for decision making
Back-End Analysis
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Need for Marketing Intelligence
MI focuses on the use of information as asource of strategic advantage.
Need to have a thorough knowledge ofcustomers, their attitudes, tastes andpreferences.
Need to analyze competition forbenchmarking and making price, product,market and segment decisions.
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Marketing Research
Marketing Research, a critical part of MarketingIntelligence helps by providing accurate, relevant andtimely (ART) information.
Function of Marketing Research is to link an
organization to its market through information Identify and define marketing opportunity and
problems
Generate, redefine and evaluate marketing actions
Monitor marketing performance
Improve understanding of marketing as a process
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Role of Market Research
Specifies information required
Designs method for collecting information
Manages and implements data collectionprocess
Interprets results & communicates
findings
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Marketing Information System
A continuing and interacting structure of people,equipment and procedures designed to gather,sort, analyze, evaluate, and distribute pertinent,timely and accurate information to marketingdecision making
MIS Uses 3 Types of Information
Recurring market and accounting data from market
analysis and accounting activities Intelligence relevant to future strategy of business
Marketing research studies not of a recurring nature
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Role of Marketing Research inManagerial Decision Making
Four Stages of Market Planning Process
Situation analysis
Strategy development
Marketing program development
Implementation
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Situation Analysis
Analysis of
Market environment
Market characteristics
Consumer behavior
Research Approaches
Organize information obtained from priorstudies (secondary)
Focus groups
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Strategy Development
Market Research Provides Information toAssist Management With Three CriticalDecisions
What business should we be in?
How will we compete?
What are the objectives for the business?
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Marketing Program Development
Programs embrace specific tasks
Action program usually focuses on asingle objective in support of one elementof overall business strategy
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Implementation
Starts with decision to proceed to a newprogram or strategy
Commitment to objectives, budgets and
timetables Specific measurable objectives must be set for
all elements of marketing program
"Did the elements achieve their objectives?" Should the marketing program be continued,
discontinued, revised or expanded?"
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Factors Influencing MarketingResearch Decisions
Relevance
Type and Nature of Information Sought
Timing
Availability of Resources Cost-benefit Analysis
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Ethics in Marketing Research
Ethics of the Sponsor
Overt and covert purposes
Dishonesty in dealing with suppliers
Misuse of research information
Ethics of the Supplier
Violating client confidentiality
Improper execution of researchRespondents Abuse
Falsifying answers
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Conquering Latino Homes
Hispanics account for nearly 13% of the U.S.population.
Research shows that Latino households spend
$600 billion of $1.3 trillion purchasing power ofmulticultural population.
In 1998 only 2.5% of total advertising dollars inthe United States was focused on Latinos.
By 2050, Hispanic population would represent25% of US population.
Who can tell me what the problem is?
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P & G Luring Women with theirFeminine Toothpaste
P & G has came out with Rejuvenating Effects agender specific toothpaste targeting the femalecustomers, who do 82% of the grocery shopping.
The flavor and package of the product was
decided on the basis of the results from acustomer survey filled out by women.
Though, the product is priced slightly higherthan the other brands P & G hopes to make
women think about the toothpaste in the samelight as skin care lotions and shampoo.
Who thinks they were right to try.
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Daimler Chrysler Exploring NewMarkets
Daimler Chrysler entered the small car segment withJava in response to the increased demand for smallfuel efficient cars.
They envision a three car plan with an ultra small carat the bottom end, Java in the middle range andMercedes A- class at the very top.
The companys marketing research indicated that
Java would be a success due to high demand and asthe resultant pollution from small cars is low.
Who thinks they were right to try
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Situation
Analysis
Strategy
Development
Marketing
Program
Development
Implementation
Understand the environment and the market
Identify threats and opportunities
Assess the competitive position
Define the business scope and served marketsegments
Establish competitive advantages
Set performance objectives.
Product and channel decisionCommunication decisions
Pricing
Personal selling decisions
Performance monitoring
Refining strategies and program
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Marketing Research
Aaker, Kumar, Day
Eighth EditionInstructors Presentation Slides
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Chapter Two
Marketing Research inPractice
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Marketing Research in Practice
Programmatic Research
Develops market options through market segmentation,market opportunity analysis, or consumer attitude andproduct usage studies
Selective Research
Tests different decision alternatives such as new producttesting, advertising copy testing, pre-test marketing, and testmarketing
Evaluative Research
Evaluation of performance of programs
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Information System
A continuing and interacting structure ofpeople, equipment, and procedures,
designed to gather, sort, analyze, evaluate,and distribute pertinent, timely, andaccurate information to decision makers.
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Databases
Contain 3 types of information:
1st type: Recurring day-to-dayinformation
2nd type: Intelligence relevant to thefuture strategy of thebusiness
3rd type: Research studies that arenot of a recurring nature
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Decision Support Systems (DSS)
DSS models are developed and adapted tosupport each firms own decision problems
Used to retrieve data, transform it into usable
information, and disseminate it to users Allow managers to interact directly with
database
To retrieve information
Provides a modeling function to help interpretinformation retrieved
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Use of Information Systems (IS)in Marketing Research
IS emphasizes that market research shouldpart of systematic and continuous effort to
improve decision-making process Marketing research used to close gaps in
data bank revealed by use of models and
IS
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Marketing Decision SupportSystem
Combines marketing data from diversesources into a single database, enabling
product managers, sales planners, marketresearchers, financial analysts, andproduction schedulers to share
information.
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Marketing Decision SupportSystems Cont..
Managers needs for decision relevantinformation:
Routine comparisons of current performanceagainst past trends on each of the key measuresof effectiveness
Periodic exception reports to assess which salesterritories or accounts have not matchedprevious years purchases
Special analyses to evaluate the sales impact ofparticular marketing programs, and to predictwhat would happen if changes were made
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Marketing Decision Support
Systems Cont..
Characteristics of MDSS:
Interactive
Flexible
Discovery oriented
User friendly
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Marketing Decision SupportSystems Cont..
Four components of MDSS:
Database
Reports and Displays
Analysis capabilities
Models
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Gaining Insight from a MDSS
Manager
Modeling
Analysis
Display
Database
Environment
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Suppliers of Information
Corporate or in-house marketing research
department External suppliers
Participants in Marketing Research
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Participants in Marketing ResearchActivities
Information Users
Information Suppliers:
Inside Company
Information Suppliers:
Outside Company
General management
Planning
Marketing and sales managers
Product managers
Lawyers
Marketing research department
Sales analysis group
Accounting department
Corporate strategic planning
Research consultants
Marketing research suppliers
Advertising agencies
Information suppliers and services
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Information suppliers and services
Information
Supplier
Corporate In-
house Supplier
Structured
(IndependentDepartment
Syndicated
Services
Customized
Services
Standardized
Services
External
Supplier
Unstructured
(one or moreMR employees)
Field
Services
Branded
Product/Services
Selective
Services
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Factors Influencing Choice ofInformation Supplier
Internal personnel may not have skills orexperience
Outside help may be called to boostinternal capacity in response tourgent deadline
Often it is cheaper to go outside
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Factors Influencing Choice ofInformation Supplier (Contd.)
Outside suppliers may have specialfacilities or competencies which would be
costly to duplicate for a single study Political considerations
Increased credibility of research used in
litigation or in proceedings beforeregulatory or legislative bodies
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Type and Nature of Services
Customized
Work with individual clients
Syndicated
Routinely collect information on several differentissues and provide it to firms that subscribe to theirservices (e.g.,Nielsen television index)
Standardized
Projects conducted in standard, prespecified mannerand supplied to several different clients. (e.g., Starchreadership surveys)
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Type and Nature of Services(Contd.)
Field Suppliers concentrate only on collecting data for
research projects
Selective
Specialize in just one or two aspects of marketingresearch, mainly concerning data coding data,editing or data analysis
Brandedproducts / services
Develop specialized data collection and analysesprocedures to address specific of research problemsthat they market as branded products
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Criteria For Selecting External Suppliers
Steps in deciding if supplier can deliver promised data,advice, or conclusions:
1. A thorough search for companies with an expertise in thearea of study
2. Selection of a small number of bidders on basis ofrecommendations of colleagues or others with similar needs
3. Personal interviews with potential project leaders, asking forexamples of previous work, their procedures for working
with clients, and they should provide references4. Check of references on each potential supplier, with special
attention on expertise, creativity, and quality and adequacyof resources available
International Marketing
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International MarketingResearch
Definition
International Marketing Research can bedefined as marketing research conducted to
aid in making decisions in more than onecountry
Function
Provides a systematic, planned approach tothe research process
Ensures all aspects of the research project areconsistent with each other
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International MarketResearch Industry
Percentage of Worldwide MarketResearch Expenditure Per Country
United States 39%Japan 10%
Western Europe 40%
Rest of World 11%
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Career Opportunities in Marketing Research
Marketing Research Analyst
Marketing Information manager
Project manager
Director of Market Research
Research Account manager
Research Analyst Methodologist
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Marketing Research
Aaker, Kumar, Day
Eighth EditionInstructors Presentation Slides
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Chapter Three
The Marketing ResearchProcess
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Overview of Marketing Research
Process
MR Process Evolves From Answers to Five
Key Questions
Why should we do research?
Whatresearch should be done?
Is itworth doing the research?
Howshould the research be designed to achieve the
research objectives?
Whatwill we do with the research?
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Marketing Research Process
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MARKETING PLANNING AND INFORMATION SYSTEM
Planning system
Strategic plans
Tactical plans
Information system
Databases
DSS
1. AGREE ON RESEARCH PROCESS
Problems or opportunities
Decision alternatives
Research users
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2. ESTABLISH RESEARCH OBJECTIVES
Problems or opportunities
Decision alternatives
Research users
Estimate
the value of
informationIs benefit >
cost
Do not conduct
marketing research
NO
YES
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2. ESTABLISH RESEARCH OBJECTIVES
Problems or opportunities
Decision alternatives
Research users
5. COLLECT THE DATA
7. REPORT THE RESEARCH RESULTS AND PROVIDE
STRATEGIC RECOMMENDATIONS
6. PREPARE AND ANALYZE THE DATA
Th I t ti l M k ti R h
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The International Marketing Research
Process
Marketing research process is consistent for
both domestic and international markets
Variety of market environments affect
international marketing research process
M j E i t l F
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Major Environmental Forces
Influencing International Marketing
Research Process
Economic Environment
Social-cultural Environment Political and Legal Environment
Technological, Multimedia and Infrastructural
Facilities
The Marketing Research Process
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The Marketing Research Process
Step 1
Research Purpose Problem or opportunity analysis
Which problems or opportunities are anticipated
What is the scope of the problems and the possible reasons? Evaluation of decision alternatives
What are the alternatives being studied?
What are the criteria for choosing among the alternatives?
Research users
Who are the decision makers?
Are there any covert purposes?
Kroger Opens Signature Store
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Kroger Opens Signature Store
Kroger Co. is adding five new Signature stores in
Houston. More than 1,000 questionnaires weresent to targeted area residents asking what kind offeatures the respondents (or future customers)would like to see included in a new supermarket
in their neighborhood. Based on the surveys,Kroger added several variations:
A larger selection of wines A sit-down coffee bar
The largest all-natural food section
U-Scan Express aisles
The Marketing Research Process
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The Marketing Research Process
(Contd.)
Step 2Research Objective
A statement, in as precise terminology as possible, of
what information is needed Should be framed to ensure information obtained will
satisfy research purpose
Research Question Hypothesis Development
Research Boundaries
The Marketing Research Process
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The Marketing Research Process
(Contd.)
Research Question Asks what specific information is required to
achieve the research purpose
Sample questions to determine if a specificadvertisement should be run:
Will the advertisement be noticed?
Will it be interpreted accurately? Will it influence attitudes?
The Marketing Research Process
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The Marketing Research Process
(Contd.)
Hypothesis Development A possible answer to a research question.
Generating a hypothesis
Draw on previous research efforts
Borrow from other disciplines such as:
Psychology
Sociology
Marketing
Economics
Managers experience with related problems, coupled withknowledge and the use of judgment
Source
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Source
Theory
Management experience Exploratory research
Research
QuestionHypothesis
Research
Purpose
Research
Design
Research
Objective
The Marketing Research Process
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The Marketing Research Process
(Contd.)
Step 3
Estimating the Value of Information
Value depends on: Importance of decision
Uncertainty that surrounds it
Influence of research information on the decision
Illustrative Decision Models
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Case B
Case A
$ 4 million
$ 1 million
$ 4 million
-$ 2.5 million
Success
Success
Failure
Failure
Introduce
Introduce
Introduce
Introduce
Do not
Do not
What is an HMO?
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What is an HMO?A health maintenance organization that involves fixedmonthly payments directly to a group of doctors or a clinic
that is then responsible for all the health needs covered bythe plan.
Advantages Total annual cost of an HMO to the consumer is lower than for
group insurance plans Flat-fee formula discourages doctors from hospitalizing patients
for longer than necessary Emphasis on preventative care produces fewer seriously ill
patients.
Disadvantages Restriction of the choice of physicians and hospitals to those
affiliated with the HMO
The International Marketing Research
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The International Marketing Research
Process
Avoid mistakes: Profile you target customers and clients
Interview target segments to assess how well they match your
preconceived ideas
Hire local researchers
Use a variety of methods to get a well-rounded picture
Qualitative methods
Quantitative methods
Look at the findings and analyze what must be done
differently, abroad or internationally, in comparison with
current domestic marketing activities
F i R h Q i i
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Framing Research Questions in an
International Environment
Possible questions: Do opportunities exist for entry into foreign markets?
Which foreign markets warrant detailed investigation?
What are the major economic, political, legal, and otherenvironmental facts in each potential country?
What mode of entry does the company plan to adopt?
What is the market potential in these countries?
Who are the firms present and potential customers? What is the nature of competition in the foreign market?
What kind of strategy should the firm adopt?
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Marketing Research
Aaker, Kumar, Day
Eighth EditionInstructors Presentation Slides
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Chapter Four
Research Design andImplementation
Research Design and
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Research Design and
Implementation
Research Design
The detailed blueprint to guide the
implementation of a research study toward the
realization of its objectives
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Categories of Research
Exploratory Research
Used when seeking insights into the general nature of a
problem, the possible decision alternatives, and the relevant
variables that need to be considered
Categories of Research (Cont )
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Categories of Research (Cont.)
Descriptive Research Provides an accurate snapshot of some aspect of the
market environment, such as:
The proportion of the adult population that supports the
United Fund
Consumer evaluation of the attributes of our productversus competing products.
The socioeconomic and demographic characteristics of
the readership of a magazine
The proportion of all possible outlets that are carrying,displaying, or merchandising our products
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Categories of Research (Cont.)
Causal Research Used when it is necessary to show that one variable causes or
determines the values of other variables, a causal research
approach must be used
Detective Funnel
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Detective Funnel
Uses Combination of All Three ResearchTechniques
Exploratory techniques generate all
possible reasons for a problem
Descriptive and Causalapproaches
narrow the possible causes
Problem
Detective Funnel
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Exploratory
Research
Probable
Causes
Causal
Research
DescriptiveResearch
Possible
causes of the
problem
Detective Funnel
Data Collection Methods
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Data Collection Methods
Relationship between Data Collection Method and
Category of ResearchCategory of Research
Data Collection Method Exploratory Descriptive CausalSecondary Sources
Information System a b
Databanks of other a borganizationsSyndicated Services a b b
Primary Sources
Qualitative Research a bSurveys b a bExperiments b a
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Research Tactics and Implementation
Once the research approach has been chosen:
Develop:
The specifics of measurements
Plan for choosing the sample
Methods of analysis
Analysis of value versus cost and time involved
Issues in International Research
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Issues in International Research
Design
Determining Information Requirements
Consider level and type of decision for which
research is conducted
Two types of decisions
Strategic
Tactical
Issues in International Research
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Issues in International Research
Design (Contd.)
Global Strategic Decision
Mostly made at corporate headquarters
Information required is governed by overallcompany objectives
Implies long term survival of company
Deal with macro environment
Issues in International Research
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Issues in International Research
Design (Contd.)
Tactical Decisions
Concerned with micro-level implementation
issues
Information obtained from primary data
Concerned with marketing mix strategy for
country/product markets
Made at functional or subsidiary level
Issues in International Research
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Issues in International Research
Design (Contd.)
Unit of Analysis
Researcher must decide at what level the analysis isdone
Global level All countries taken simultaneously
Regional level
Groups of countries considered homogeneous for macro
environmental factors
Country level
Each country taken as separate unit
Construct Measurement and Sample
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Construct, Measurement and Sample
EquivalenceConstruct Equivalence
Deals with how both the researcher and the
subjects see, understand, and code a particular
phenomenon
"Are we studying the same phenomenon in
countries X and Y?"
Construct, Measurement and Sample
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Construct, Measurement and Sample
Equivalence (Contd.)
Measurement Equivalence
Deals with the methods and procedures used
by the researcher to collect and categorize
essential data and information
Are the phenomenon in countries X and Y
measured the same way?"
Construct, Measurement and Sample
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Construct, Measurement and Sample
Equivalence (Contd.)
Sampling Equivalence
"Are the samples used in countries X and Y
equivalent?"
Key Pitfalls in Conducting and
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Key Pitfalls in Conducting and
International Research
Selecting a domestic research company to doyour international research
Rigidly standardizing methodologies across
countries
Interviewing in English around the world
Setting inappropriate sampling requirements
K Pitf ll i C d ti d
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Key Pitfalls in Conducting and
International Research (Contd.)
Lack of systematic international
communication procedures Misinterpreting multi-country data across
countries
Not understanding international differencesin conducting qualitative research
Error in Research Design
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Error in Research Design
Two Components of Errors
Sampling error
Non-sampling error
Sampling Error Difference between a measure obtained from a
sample of population and the true measure that canbe obtained only from the entire population
Nonsampling Error
All other errors associated with a research project
Sources of Nonsampling Error
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Sources of Nonsampling Error
Design Errors
Flaws in research design
Selection Error
Population Specification Error Sampling Frame Error
Surrogate Information Error
Measurement Error Experimental Error
Data Analysis Error
Sources of Nonsampling Error
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Sources of Nonsampling Error
(Contd.)
Administering Errors
Occur during the administration of a survey
instrument to the respondents Questioning Error
Recording Error
Interference Error
Sources of Nonsampling Error
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Sources of Nonsampling Error
(Contd.)
Response Error
Occur when respondent provides inaccurate
answers to survey questions
Non-response Error
Occur if
Some members of sample not contacted Some members provide incomplete or no
response to survey instrument
B d ti th R h P j t
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Budgeting the Research Project
Two approaches to budgeting
Estimate the dollar costs associated with each research
activity
Used for unusual or expensive projects
Determining the activities to be performed in hours
and apply standard cost estimates to these hours
Used for routine projects or when researcher has knowledge
of costs
S h d li th R h P j t
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Scheduling the Research Project
Identifies personnel accountable for each task within a
given time period
Scheduling techniques:
Critical path method (CPM)
Program evaluation & review techniques (PERT)
GANTT charts Graphical evaluation & review techniques (GERT)
Research Proposal
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Research Proposal
Describes a plan for conducting and controlling a
research project
Basis for a written contract between manager and
researcher
Basis for a vehicle for reviewing important
decisions
Used to choose among competing supplies andinfluence decision to fund study
B i C t t f R h P l
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Basic Contents of a Research Proposal
Executive Summary
Purpose and Scope
Objectives Research Approach
Time and Cost Estimates
Appendices
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Marketing Research
Aaker, Kumar, Day
Eighth EditionInstructors Presentation Slides
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Chapter Five
Secondary Sources ofMarketing Data
D t S
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Data Sources
Secondary Data
Primary Data
PRIMARY
DATA
SALES/PATRONAGE RESULTS ( OUTCOMES )MARKETING ACTIVITY ( INPUTS )COST INFORMATION
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DATA
SOURCES
SECONDARY
DATA
SOURCES
SOURCES INTERNAL
RECORDS
EXTERNAL
SOURCES
PUBLISHED
DATA
STANDARDIZED
SOURCES OF
MARKETING
DATA
INTERNET
ELECTRONIC
PRINTED
STORE AUDITSWAREHOUSE WITHDRAWAL SERVICESCONSUMER PURCHASE PANELSSINGLE SOURCE DATANIELSENS TELEVISION INDEX
STARCH SCORESARBITRON PANELMULTIMEDIA SERVICES
DISTRIBUTOR REPORTS AND FEEDBACKCUSTOMER FEEDBACK
GOVERNMENTTRADE ASSOCIATIONSPERIODICALSNEWSPAPERSBOOKSANNUAL REPORTSPRIVATE STUDIES
Sources of
Secondary Data
Uses of Secondary Data
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Uses of Secondary Data
Can solve the problem on hand all by its own
Can lead to new ideas and other sources
Helps to define the problem more clearly Can help in designing the primary data
collections process
Helps in defining the population / sample
Can serve as a reference base
Benefits and Limitations of Secondary
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Data
Low cost
Less effort Less time
At times, more accurate
At times, only way to obtain
data
Collected for some other purpose
No control over data collection
May not be accurate
May not be in correct form
May be outdated
May not meet data requirements
Assumptions have to be made
Benefits Limitations
Internal Sources of Secondary Data
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Internal Sources of Secondary Data
Internal Records
Accounting Data
Sales Reports Inventory Management
Customer Database
External Sources of Secondary
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y
Data
Published data sources (e.G., Census,publications of various trade associations)
Trade directories
Computer retrievable databases ("online"
databases)
Computer Retrievable Database
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Based on the Method of
Storage and Retrieval ofInformation
Based on the Type of
Information
Source ReferenceOn-lineDatabases
CD-ROMDatabases
Floppy DiscDatabases
Indirect
through
Networks
Direct from
Producer
Direct from
Vendors
Internet
Computer-Retrievable Methods
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Computer-Retrievable Methods
Scope of information
available
Speed of information accessand retrieval
Commercially available
search procedures provide
considerable flexibility andefficiency
Rely solely on the accuracy of
the abstract author
Depend on the journal andarticle selection policy of the
database producer
Might miss important
information, or retrieve a lot ofirrelevant data if searching by
keyword
LimitationsAdvantages
Sources of Secondary Data for
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Sources of Secondary Data for
International Marketing Research
Economic Data
United Nations World Bank
Business International Publications
Euromonitor World Casts
Sources of Secondary Data for
I i l M k i R h
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International Marketing Research
(Contd.)Industry Data United Nations yearbooks
U.S. Department of commerce The Economist (publication)
World Casts
Background Data Dun and Bradstreet publications (e.G. Exporter's guide)
Price Waterhouse publications
SIC / NAIC Code
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Standard Industrial Classification System /
North American Industrial Classification Uniform numbering systems for classifying firms
Up to 7 digits
Total economy is divided into 11 divisions
Classification SIC # DescriptionMajor group 57 Home furniture and equipment stores
Subgroup 571 Home furniture and furnishings
Detailed industry 5712 Furniture stores
5713 Floor covering stores
Appraising Secondary Sources
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Appraising Secondary Sources
Factors to Be Considered: Who has collected the data (did they have adequate resources)?
Why was the data collected (how the interests of agency match
with ours)? How the data was collected (to determine the quality of data on-
hand)?
What data was collected (geographic and demographic
limitations)?
When the data was collected (how old/obsolete is the data)?
Applications of Secondary Data
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Applications of Secondary Data
Monitoring the Environment
Demand Estimation
Applications of Secondary Data
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(Contd.)
Census data Standard Industrial
Classification (SIC)
Trade association data Experts and authorities
Press releases Legislation and laws
Industry news
Business and practitionerliterature, such as
magazines
Demand Estimation Monitoring the Environment
Applications of Secondary Data (Contd )
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Applications of Secondary Data (Contd.)
PRIZM CLUSTER PLUS
ACORN
DMI SIC
TIGER
Competitors annualreports
Press releases
Segmentation and Targeting Developing a BusinessIntelligence System
Problems Associated with Secondary
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Problems Associated with Secondary
Data in International Research
Data Accuracy
Comparability of Data
Applications of Secondary Data in
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International Research
There Are Four Types of Data Analysis Usefulin Demand Estimation in International
Markets
Lead-lag Analysis
Surrogate Indicators
Cross-sectional Data / Barometric Procedures Econometric Forecasting Model
Growth of Standardized Sources
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Growth of Standardized Sources
Factors
Multitude of information users having
common information needs
When cost of satisfying individual user's need
is prohibitive
The increasing use of scanner systems at thecheck out points
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Marketing Research
Aaker, Kumar, Day
Eighth Edition
Instructors Presentation Slides
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Chapter Six
Standardized Sources ofMarketing Data
Growth of Standardized Sources
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G ow o S d d ed Sou ces
Factors
Multitude of information users having common
information needs
When cost of satisfying individual user's need is
prohibitive
The increasing use of scanner systems at the check
out points
Audits and Surveys:
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y
National Market Audit
Bi-monthly audit focused on products
irrespective of the outlet carrying the product
Retail Store Audits
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Every two months a team of auditors from a
research firm visits a sample of stores to count
the inventory on hand and record deliveries to
the store since the last visit
Beginning inventory + deliveriesending inventory = sales
Nielsen Retail Index
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Biggest research company in the world
Their auditing services cover four groups
Grocery products Drugs
Mass merchandisers
Alcoholic beverages
Consumer Purchase Panels
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To Cover the Gap Between Warehouse Withdrawal
Audits and Actual Purchases Following Methods Can
Be Used
Home Audit Approach
Panel member agrees to permit an auditor to checkthe household stocks of certain product categories at
regular intervals
Mail Diary Method
Panel member records the details of each purchase
and returns the diary by mail at regular intervals
Advantages of Consumer Panels
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g
Can Provide Information On:
Aggregate Sales Activity
Brand Shares
Shifts in Buyer Characteristics
Shifts in Retail Outlets
Limitations of Consumer Panels
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Limitations of Consumer Panels
Possibility of Selection Bias
Mortality Effect
Testing Effects
Scanner Services
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Scanner-Based Audit Services Benefits:
High degree of accuracy
Time savingAbility to study very short time periods of
sales activity
RFID
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A new technology that may replace the barcodes. Utilizing a tiny silicon chip to store
information; a small transmitter would then send
this information to a scanner. RFID offers more
benefits than a UPC, such as:
The ability to store more information
The ability to change the information on the tag
The ability to transmit all the information on the
chip to a scanner without clear line of sight
Single-source Systems
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g y
Usually set up in self-contained communitieswith their own newspapers and cable TV and
are roughly representative of the demographics
of the country A test panel of community households is
recruited and monitored
Advantages of Single Source Systems
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Advantages of Single Source Systems
Availability of exclusive pre-test records
Immediate availability of test results
Ability to compare households prior to andafter exposure to the message
Ability to control settings
Expert Systems Based on Single-
source Services
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source Services
Since users of scanner data are flooded with massiveamounts of data, expert systems are used to help theusers understand the data quickly
Examples of Expert Systems Are:
Apollo Space Management Software
Cover Story
Sales Partner
Promotion Stimulator
Spotlight
Media Related Standardized Sources
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Nielsen Television Index (NTI)
A system for estimating national T.V. audiences
Arbitron Diary Panel
Both regional and national radio and TV panels
Starch Scores
Print media
Multi Media Services
Measurement Systems
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Mechanics No wire connections Wired directly to TV andVCR tuners
Research Methods Data retrieved by
reading UTCP codes
Telephone connections
used to return data
Method of Data
Collection
User logs in/out before
and after watching TV
User punches numerical
code into data-entry
device
Reputation as: Media measurement
business serving the
ratio industry
Foremost in TV ratings
SMART PEOPLE METER
Marketing Decision Support Systems
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g pp y
A typical marketing manager receives some or all of followingdata:
Factory shipments or order
Syndicated aggregate (industry) data services
Sales reports from sales personnel
Consumer panel data
Scanner data
Demographic data
Internal cost and budget data
Purpose of MDSS is to combine marketing data from diversesources into single database
Applications of Standardized Sources
f D t
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of Data
Scanner data Starch scores
Diary panels NTI
ArbitronMultimedia services
Measuring Promotion
Effectiveness
Measuring Ad Exposure
and Effectiveness
Applications of Standardized Sources
f D t (C t )
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of Data (Cont.)
Diary panels Scanner dataRetail audits Starch scores
Scanner data Diary panels
Internal records Internal records
SIC
Measuring Product
Sales and Market Share
Estimation and
Evaluation of Models
Applications of Standardized
S f D t (C td )
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Sources of Data (Contd.)
Measuring product sales and market share
Measuring advertisement exposure and
effectiveness
Measuring promotion effectiveness
Estimation And evaluation of models
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Marketing Research
Aaker, Kumar, Day
Eighth Edition
Instructors Presentation Slides
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Chapter Eight
Information Collection:
Qualitative and Observational
Methods
Information Collection :
Qualitative and Observational
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Qualitative and Observational
MethodsQualitative Methods
Recommended to capture the basic feel of a
problem prior to conducting more analytical
study
Observational Methods
These methods are limited to providing
information on current behavior
Qualitative Research Methods
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Exploratory
Conducted primarily to explicitly define the problemand formulate hypotheses
Orientation To learn more about target consumer (e.G. Culture,
language)
Clinical
To gain insights into topics that are difficult in astructured research
Qualitative Research Methods
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Four major constraints:
Volume of data
Complexity of analysis
Detail of clarification record
Time-consuming nature of the clerical effortsrequired
Computer technology helps alleviate theseproblems and increase the use of qualitativeresearch
Use of Computers in Qualitative
Research
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Research
Transmitting
Storing
Coding Searching and Retrieving
Building Relationships
Matrix Building
Individual In-depth Interviews
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Nondirective interviews (respondent enjoys
maximum freedom)
Semi-structured or focused individual interviews
Covers a specific list of topics or sub-areas
Individual in-depth interviews (3 techniques):
Laddering
Hidden-issue
Symbolic Analysis
Focus Group Discussions
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Offers participants more stimulation than aninterview; makes new ideas and meaningful
comments more likely
Issues to be addressed:
Outlining the intended direction of the group
Explaining how participants were recruited
Reeducating observers on the concepts of random
selection, statistical reliability, and projectability of
research results
Types of Focus Groups
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Exploratory Focus Groups
Used in the exploratory phase of the market research process
Used for generating the hypotheses
Clinical Focus Groups
Based on the premise that an individual's true feelings and
motivations are subconscious in nature
Experiencing Focus Groups
Allows the researcher to experience the emotional framework
in which the product is being used
Key Factors for Focus Group Success
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Planning the Agenda
Recruitment
Moderation Analysis and Interpretation of the Results
Ten Tips for Running a Successful Focus Group
Y d h l i f f
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1. You can never do too much planning for a focus group.
2. Manage the recruitment process actively to be sure to get the right people in the
groups.3. Dont prejudge the participants based on physical appearance.
4. The best focus group moderators bring objectivity and expertise in the process to a
project.
5. Achieving research objectives does not guarantee a successful group project.
6. The moderator and the client should coordinate their efforts at all stages of theprocess for the research to achieve its objectives.
7. Most client organizations conduct more focus groups than are necessary to achieve
the research objective
8. One of the most important services a moderator can provide is a fast report
turnaround.
9. Client observers should be thoroughly briefed about the research objectives before
the sessions start.
10. The most valuable service a moderator can provide is objective conclusions based
on the interpretations of the research, without regard for what the client wants to
hear.
Trends in Focus Groups
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Telephone Focus Groups
Video Conference
Two-way focus groups
Projective Techniques
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Respondent is asked to comment upon rather
unstructured or ambiguous object, activity
The Various Categories of Projective
Techniques Are
Word Association
Completion Test
Picture Interpretation
Third Person Techniques
Role Playing
Limitations of Qualitative Methods
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Potential susceptibility of the results to getmisused or misinterpreted
Results not necessarily representative of the
whole population
Moderator or interviewer's role is extremely
critical can lead to ambiguous or at times
misleading results
Observational Methods
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Casual Observation
Systematic Observation
Direct Observation
Contrived Observation Content Analysis
Physical Trace Measures
Humanistic Inquiry Behavior Recording Devices
Limitations of Observational Methods
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Cannot be used to observe motives, attitudes orintentions
More costly and time consuming
Recent Applications of Qualitative
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and Observational Methods
Get inside minds of shoppers by providing tape
recorders and having them record their thoughts
while shopping
Virtual Customers system for evaluating service
quality
On-site observation
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Marketing Research
Aaker, Kumar, Day
Eighth Edition
Instructors Presentation Slides
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Chapter Nine
Information from Respondents:
Issues in Data Collection
Information From Surveys
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Used to Capture a Wide Variety of Information:
Attitude
Decisions
Focus on process and not the results
Measuring the relationship between actions &
needs, desires, preferences, motives and goals
Sources of Survey Error
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The Results Will Be Meaningful If:
Population has been defined correctly
Sample is representative of the population
Respondents selected are able and willing to cooperate
Questions are understood by the respondents
Respondents have the knowledge, opinions, attitudes, orfacts required
Interviewer correctly understands and records theresponse
Ambiguity Interviewer
Sources of Survey Error
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POPULATION RESPONDENT INTERVIEWERSample Question
Answer
Sampling error
Nonresponse
due to refusals
or not-at-home
g y
of question error
Ambiguity
of answer
Inaccuracy in
response
Inability to
formulate aresponse
Unwillingnessto respond
Non-response Errors Due to Refusals
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Refusals Could Occur Due to:
Nature of questions and place
Subject of no interest to the respondent
Fear
Invasion of privacy
Hostility towards sponsor
Personal bias
Characteristics of the data collection procedure (e.G.,Presidential polls)
Non-response Errors Due to Refusals(Cont.)
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( )
Phenotypic Source Characteristics of the data collection procedure
Question asked
How question is asked
Length of interview
Genotypic Source
Indigenous characteristics of the respondents
Age Sex
Occupation
Inaccuracy in Response
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Inability to respond Telescoping
Averaging
Omission
Cannot formulate an adequate answer
Some of these problems can be solved by:
Aided-recall techniques
Unwillingness to Respond Accurately
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This Could Arise Due to the FollowingReasons:
Concern about invasion of privacy
Time pressure and fatigue
Prestige seeking and social desirability response bias
Courtesy bias
Uninformed response bias
Response style
Interviewer Error
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This Depends On: Respondents Impression of the Interviewer
Questioning, Probing, and Recording
Fraud and Deceit
Improving Interviewer Quality
Methods of Data Collection
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Personal Interview
Telephone Interview
Mail Survey
Fax Survey
E-mail Survey
Web-based Survey
Factors Affecting the Choice of a
Survey Method
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y
Sampling
Type of Population
Question Form
Question Content
Response Rate
Costs
Available Facilities
Length of Data Collection
Ethical Issues in Data Collection
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Misrepresentation of Data Collection Process StemsFrom:
Representation of a marketing activity other thanresearch as research
Abuse of respondents rights during the data collectionprocess, under the rationale of providing better qualityresearch. E.G.,
Use of survey for selling purposes Use of survey to obtain names and addresses ofprospects for direct marketing
Ethical Issues in Data Collection
(Contd.)
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(Contd.)
The Rights of the Respondents Can Be Violated By:
Disguising the purpose of a particular measurement
Deceiving the prospective respondent as to the true
duration of the interview
Misrepresenting the compensation in order to gain
cooperation
Ethical Issues in Data Collection
(Contd.)
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( )
The Rights of the Respondents Can Be Violated By:
Not mentioning to the respondent that a follow up interview will
be made
Using projective tests and unobtrusive measures to circumvent theneed for a respondents consent
Using hidden tape recorders
Not debriefing the respondent
Conducting simulated product tests in which identical product is
tried by respondent except for variations in color
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Marketing Research
Aaker, Kumar, Day
Eighth Edition
Instructors Presentation Slides
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Chapter Ten
Information from Respondents:
Survey Methods
Collecting Data
G id li
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Guidelines:
Reviewing data
Getting started
Setting the feedback objective
Customer presentation
Sharing responsibility
Handling issues you cannot fix
Working the issue resolution with youraccount
Basic Survey Methods
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Personal Interview
Telephone Interview
Mail Survey
Personal Interviews
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There Are Four Entities Involved: Researcher
Interviewer
Interviewee
The Interview Environment
Personal Interviews (Contd.)
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Methods: Door to Door Interviewing
Executive Interviewing
Mall Intercept Surveys
Self Administered Interviews
Purchase Intercept Technique (PIT)
Omnibus Surveys
Personal Interviews (Contd.)
Ad t
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Advantages:
Can arouse and keep interest
Can build rapport
Ask complex questions with the help of visual and other aids
Clarify misunderstandings
High degree of flexibility
Probe for more complete answers
Accurate for neutral questions
Do not need an explicit or current list of households or
individuals
Personal Interviews (Contd.)
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Disadvantages:
Bias of Interviewer
Response Bias
Embarrassing/personal questions
Time Requirements
Cost Per Completed Interview Is High
Telephone Interviewing
The Important Aspects of Telephone Interviewing:
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p p f p g
Selecting telephone numbers Pre-specified list
A directory
Random dialing procedure
Random digit dialing
Systematic random digit dialing (SRDD)
Call outcomes
The introduction When to call
Call reports
Telephone Interviewing (Contd.)
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Advantages:
Central location, under supervision, at own hours
More interviews can be conducted in a given time
Travelling time is saved
More hours of the day are productive
Repeated call backs at lower cost
Absence of administrative costs
Lower cost per completed interview Intrusiveness of the phone and ease of call backs
Less sample bias
Telephone Interviewing (Contd.)
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Limitations:
Inability to employ visual aids or complex tasks
Can't be longer than 5-10 min. or they get boring
Amount of data that can be collected is relativelyless
A capable interviewer essential
Sample bias
As all people do not have phones, or are not listed
Mail Surveys
Requires a broad identification of the individuals to be
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sampled before data collection begins
Some Decisions That Need to Be Taken Are:
Type of Return Envelope
Postage
Method of Addressing
Cover Letter
The Questionnaire Length, Layout, Color, Format Etc
Method of Notification
Incentive to Be Given
Mail Surveys (Contd.)
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Advantages:
Lower cost
Better results, including a shorter response time
Reliable answers as no inhibiting intermediary
Survey answered at respondents discretion
Mail Surveys (Contd.)
Di d
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Disadvantages:
The identity of the respondent is inadequately
controlled
No control over whom the respondent consultsbefore answering the questions
The speed of the response can't be monitored
No control on the order in which the questionsare exposed or answered
Mail Surveys (Contd.)
Di d (C d )
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Disadvantages (Contd.):
The respondent may not clearly understand thequestion and no opportunity to clarify
No long questionnaires
Subject to availability of a mailing list
Response rate is generally poor
Number of problems such as obsolescence,omissions, duplications, etc
Factors Affecting the Response Rate
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Perceived amount of work required, and thelength of the questionnaire
Intrinsic interest in the topic
Characteristics of the sample
Credibility of the sponsoring organization
Level of induced motivation
Factors Affecting the Response Rate
(Cont.)
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Coping with non-response: Include monetary incentive
Send a follow-up letter
Include return envelope
Alternatives:
Mail Panels
Fax Surveys
Combination of Survey Methods
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The Telephone Pre-notification Approach The Lockbox Approach
The Drop-off Approach
Comprehensive Advantages of
Various Methods
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Survey Method: Personal Interviewing
The best way to implement some sample
designs Most effective way of enlisting cooperation.
Advantages of interview questions-probing for
adequate answers, accurately followingcomplex instructions or sequences arerealized.
Comprehensive Advantages of Various
Methods (Cont.)
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Multi-method data collection are feasible
Rapport and confidence building are
possible.
Probably longer interviews can be done in
person.
Comprehensive Disadvantages of
Various Methods
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Survey Method: Personal Interviewing
It is likely to be more costly than alternatives.
A trained staff of interviewers that isgeographically near the sample is needed.
The total data collection period is likely to belonger than for most procedures.
Some samples may be more accessible by someother mode.
Comprehensive Advantages of
Various Methods
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Survey Method: Telephone Interviewing
Lower costs than personal interviews.
Random Digit-Dialing (RDD) sampling ofgeneral population.
Better access to certain populations
Shorter data collection periods.
Comprehensive Advantages of Various
Methods (Cont.)
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The advantages of interviewer administration (Incontrast to mail surveys).
Interviewer staffing and management easier than
personal interviews-smaller staff needed, notnecessary to be near sample, supervision andquality control potentially better.
Likely better response rate from a list sample
than from mail
Comprehensive Disadvantages of
Various Methods
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Survey Method: Telephone Interviewing
Sampling limitations, especially as a result of omitting
those without telephone
Nonresponse associated with RDD sampling is higherthan with interviews
Questionnaires or measurement constraints
Possibly less appropriate for personal or sensitivequestions if no prior contact
Comprehensive Advantages ofVarious Methods
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Survey Method: Self-Administration
Ease of presenting questions requiring visual
aids. Asking questions with long or complex
response categories is facilitated.
Asking batteries of similar questions ispossible.
Comprehensive Disadvantages of
Various Methods
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Especially careful questionnaire design isneeded.
Open questions usually are not useful. Good reading and writing skills are needed by
respondents. The interviewer is not present to exercise quality
control with respect to answering all questions,
meeting questions objectives, or the quality ofanswers provided.
Comprehensive Advantages of
Various Methods
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Survey Method: Mail Procedures
Relatively low cost Can be accomplished with minimal staff and
facilities. Provides access to widely dispersed samples. Respondents have time to give thoughtful
answers, look up records, or consult others.
Comprehensive Disadvantages of
Various Methods
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Various Methods
Ineffective as a way of enlisting cooperation. Various disadvantages of not having
interviewer involved in data collection.
Need for good mailing addresses for sample.
Comprehensive Advantages of
Various Methods
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Survey Method: Drop-off questionnaire
The interviewer can explain the study, answer
questions, and designate a respondent. Response rates tend to be like those of personal
interview studies.
There is more opportunity to give thoughtfulanswers and consult records.
Comprehensive Disadvantages of
Various Methods
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Various Methods
Costs about as much as personal interviews. A field staff is required.
Comprehensive Advantages of
Various Methods
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Survey Method: Fax Surveys
Relatively low cost
Can be accomplished with minimal staff and facilities Provides access to widely dispersed samples.
Respondents have time to give thoughtful answers.
Telephone charges are decreasing.
Comprehensive Advantages of
Various Methods (Cont.)
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( )
Local faxes are free.
Administrative costs are fixed.
It is fast. Technology is improving.
List management is easy.
Can send and receive by computer. More reliable than mail in some countries.
Comprehensive Disadvantages of
Various Methods
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Survey Method: Fax Surveys
Higher fixed costs for computer/fax equipment,
multiple phone lines. Costs increase with minutes.
Cost varies by time on line, time of day, distance, andtelephone carrier.
Currently limited to organizational populations. Loss of anonymity.
Trends in Survey Methods
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Computer Interactive Interviewing Fax Surveys
Electronic Mail Surveys
Surveys in the International Context
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Personal
Dominant mode of data collection outside the US
Telephone
Low levels of telephone ownership in some countries
Poor communication network in some countries
Mail
Absence of mailing lists
Poor mail services in some countries
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Marketing Research
Aaker, Kumar, Day
Eighth Edition
Instructors Presentation Slides
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Chapter Eleven
Attitude Measurement
Attitude Measurement
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Majority of questions in marketing research aredesigned to measure attitudes
Attitudes include
Information possessed
Feelings of like and/or dislike
Intentions to behave
Management wants to understand and influence
behavior
Reasons for Measuring Attitudes
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Attitudes lead to behavior
More feasible to ask questions on attitudes than to
observe and interpret behavior
Large capacity for diagnosis and explanation
Learn which features of a new product concept are
acceptable or unacceptable
Measure the perceived strengths and weaknesses of
competitive alternatives
What Are Attitudes?
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Mental states used by individuals to structurethe way they perceive their environment and
guide the way they respond to it
Components of Attitude
Cognitive or Knowledge Component
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Cognitive or Knowledge Component
Represents apersons information about an object
Awareness of existence on the object
Beliefs about the characteristics or attributesof the object
Judgments about the relative importance of
each of the attributes
Components of Attitude (Cont.)
Affective or Liking Component
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Affective or Liking Component
Summarizes a persons overall feelings toward anobject, situation, or person
On a scale oflike-dislike orfavorable-unfavorable
When there are several alternatives, liking is
expressed in terms of preference
Measured by asking which alternative is mostpreferred or first choice, which is the secondchoice, and so on
Components of Attitude (Cont.)
Intention or Action Component
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Intention or Action Component
Refers to a persons expectations of future behaviortoward an object
Intentions are usually limited to a distinct time
period that depends on buying habits and planninghorizons
Advantage
Incorporates information about a respondentsability or willingness to pay for the object, or othertaken action
Measurement and Scaling
Measurement
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Standardized process of assigning numbers or other
symbols to certain characteristics of objects of interests
according to pre-specified rules
Characteristics for Standardization
One-to-one correspondence between the symbol and the
characteristic in the object that is being measured
Rules for assignment should be invariant over time and
the objects being measured
Measurement and Scaling (Contd.)
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Scaling Process of creating a continuum on which
objects are located according to the amount of
the measured characteristic that the objectpossesses
Measurement Scales
Nominal Scale
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Nominal Scale
Objects are assigned to mutually exclusive, labeled
categories
No necessary relationships among categories No ordering or spacing are implied
Only possible arithmetic operation is a count of each
category
Measurement Scales (Contd.)
Ordinal Scale
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Ordinal Scale
Rank objects or arrange them in order by some common
variable
Does each object have more or less of a variable than
some other object?
Does not provide information on how much difference
between objects
Arithmetic operations are limited to statistics such as
median or mode
Measurement Scales (Contd.)
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Interval Scale
Numbers are assigned to objects that represent
categories, rank orders, as well as how much the object
is preferred on the attribute being measured Differences can be compared
Entire range of statistical operations can be employed
Measurement Scales (Contd.)
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Ratio Scale Type of interval scale with meaningful zero point
Possible to say how many times greater or smaller one
object is than another Magnitude scaling of attitudes has been calibrated
through numeric estimation
Attitude Rating Scales
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Present a respondent with a continuum ofnumbered categories that represent the range
of possible attitude adjustments
Single item or multiple item scales
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Single Item Scales
Only have one item to measure a construct
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Only have one item to measure a construct
Itemized-category scale most widely used bymarketing researchers
Other single item scales Comparative
Rank-order
Q-sort
Pictorial
Constant sum
Single Item Scales (Contd.)
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Itemized-category Scales Scales in which the respondent selects from a
limited number of categories
Comparative Scale
A judgment comparing one object, concept, orperson against one another
Single Item Scales (Contd.)
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Rank-order Scales Scale in which the respondent compares one item
with another or a group of items against each
other and ranks them
Q-sort Scaling
Respondents sort comparative characteristics into
normally distributed groups
Ten or more groups increases accuracy of results
Single Item Scales (Contd.)
Constant-sum scale
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Respondents allocate a fixed number of rating pointsamong serial objects to reflect relative preference
Pictorial scales
Various categories of the scale are depicted pictorially Thermometer Scale
Funny faces scale
Format must be comprehensible to respond and allowaccurate response
Single Item Scales (Contd.)
Paired-Comparison Scales
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The brands to be rated are presented two at a time, so eachbrand in the category was compared once to every other brand
Brands are rated on a given 10 pts. that are then divided
between the two brands
Advantages
Performs well on the criteria
Limitations
Cumbersome to administer Frame of reference is always the other brand being tested; these
brands may change over time
Designing Single Item Scales
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Number of Scale Categories Types of Poles Used in the Scale
Strength of the Anchors
Labeling of the Categories
Balance of a Scale
Multiple-item Scales
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Developed to measure a sample of beliefstoward the attitude objects and combine the set
of answers into an average score
Multiple-item Scales (Contd.)
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Likert Scale Requires respondent to indicate degree of
agreement or disagreement with a variety ofstatements related to the attitude object
Summated Scale
Scores on individual items are summed to give totalscore for respondents
Likert Scale Is Uni-dimensional
Multiple-item Scales (Contd.)
Thurstone Scales
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Also known as the method of equal-appearing intervals;objective is to obtain a unidimensional scale with
interval properties
Step 1: Generate a large number of statements or adjectives reflecting
all degrees of favorableness toward the attitude of objects
Step 2:
A group of judges is given this set of items and asked toclassify them according to their degree of favorableness or
unfavorableness
Multiple-item Scales (Contd.)
Thurstone Scales (Cont.)
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Advantages
Easy to administer
Requires minimum instructions
Limitations Time consuming
Expensive to construct
Not as much diagnostic value as a Likert scale Values depend on the attitudes of the original judges
Multiple-item Scales (Contd.)
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Semantic-differential Scale Respondents rate each attribute object on a
number of five or seven-point rating scales
bounded by polar adjectives or phrases With bipolar scale, the midpoint is a neutral
point
Characteristics of SemanticDifferential
Scales in Semantic Marketing Applications:
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Scales in Semantic Marketing Applications:
Pairs of objects or phrases must be meaningful in market
being studied and often correspond to product/service
attributes
Avoid "halo" effect by placing negative pole on either side
Category increments are treated as interval scales so group
mean values can be computed for each object on each scale
May also be analyzed as a summated rating scale
Characteristics of Semantic
Differential (Contd.)
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Profile Analysis
Application of semantic differential scale
Plot mean ratings of each object on each scalefor visual comparison
Overall comparison of brands hard to grasp withmany brands and attributes
Not all attributes are independent
Multiple-item Scales (Contd.)
Stapel Scales
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p
Uses one pole rather than two opposite poles
Respondents select a numerical response
category High positive score reflects good fit between
adjective and object
Easy to administer and construct No need to assure bipolarity
Multiple-item Scales (Contd.)
Associative Scaling
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g
Most effective for markets where respondent isknowledgeable only about a small subset of alarge number of choices
Appropriate to choice situations that involve asequential decision process
Best suited to market tracking where theemphasis is on understanding shifts in relativecompetitive positions
Multiple-item Scales (Contd.)
Continuous Rating Scales
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Continuous Rating Scales
Respondents rate objects by placing a mark at
appropriate position on a line running from one
extreme of the criterion variable to the other Values can be interpreted as interval or ratio
scaled data
It is easy to construct
Scoring is cumbersome and unreliable
General Guidelines For Developing A
Multiple-Item Scale
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Determine clearly what you are going to
measure
Generate as many items as possible
Ask experts in the field to evaluate the
initial pool of items
Determine the type of attitudinal scale
to be used
Include some items that will help in the
validation of the scale
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Evaluate and refine the items
Administer the items to an initial
sample
Finally, optimize the scale length
Choosing An Attitudinal Scale
Problems in choosing
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There are many different techniques, each with its ownstrengths and weaknesses
Virtually any technique can be adapted to the
measurement of any one of the attitude components
Researchers choice shaped by: The specific information required
Adabtability of the scale to the data collection method
and budget constraints
Compatibility of the scale with the structure of the
respondents attitude
Accuracy of Attitude Measurements
Validity
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An attitude measure has validity if it measures what it is
supposed to measure
Face Validity
The extent to which the content of a measurement scaleappears to tap all relevant facets of the construct
Criterion Validity
Based on empirical evidence that the attitude measurecorrelates with other criterion variables
Accuracy of Attitude Measurements(Cont.)
Concurrent va
lidity
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Two variables are measured at the same time
Predictive validity
The attitude measure can predict some future event
Convergent validity
A form of construct validity that represents theassociation between the measured construct and
measures of other constructs with which theconstruct is related on theoretical grounds
Discriminant validity
Accuracy of AttitudeMeasurements (Cont.)
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A form of construct validity that represents the extent
to which the measured construct is not associated
with which the construct is related on theoretical
groundsConstruct Validity
A scale evaluation criterion that relates to the
underlying question "what is the nature of theunderlying variable or construct measured by the
scale?"
Accuracy of Attitude Measurements(Contd.)
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Reliability The consistency with which the measure produces the
same results with the same or comparable population
Sensitivity
Extent to which ratings provided by a scale are able
to discriminate between the respondents who differ
with respect to the construct being measured
Accuracy of AttitudeMeasurements (Contd.)
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Generalizability Refers to the ease of scale administration and
interpretation in different research settings and
situations
Relevancy
Relevance = reliability * validity
Scales in Cross-national Research
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Responses Can Be Affected by:
Low literacy and educational levels
Culture in a country
Semantic differential scale is closest to pan
cultural scale
Adapting response formats, particularly theircalibration, for specific countries and cultures
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Marketing Research
Aaker, Kumar, Day
Eighth Edition
Instructors Presentation Slides
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Chapter Twelve
Designing the Questionnaire
Designing the Questionnaire
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Questionnaire buildingis an art!
A questionnaireis always custom-built!
The process of questionnaire design
PLANNING WHAT TO MEASURE
Revisit the research objectives
Decide on the research issue of your questionnaire
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Get additional information on the research issue from secondarydata sources and exploratory research
Decide on what is to be asked under the research issue
FORMATTING THE QUESTIONNAIRE
In each issue, determine the content of each question.
Decide on the format of each question
QUESTION WORDING
Determine how the question is worded
Evaluate each research question on the basis of comprehensibility,
knowledge and ability, willingness/inclination of a typical respondent to
answer the question
FORMATTING THE QUESTIONNAIRE
In ea