IISWBM

C19 Advanced Marketing Research

Tanima Ray

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 MIS
MARKETING
CHAPTER 01 MARKETING ENVIRONMENT

Assess information
MANAGERS

Intelligence
Marketing
MARKETING RESEARCH

Internal
Records
needs
Target market

Marketing Decision
Marketing

Support System
channels

Marketing
Research
Analysis Competitors

information
Planning Public

Distribute
Implementation Macro-
Control environment
forces

MARKETING COMMUNICATION & FEEDBACK 2

CLASSIFICATION OF MR

PROBLEM PROBLEM
SEGMENTATION RESEARCH
IDENTIFICATION
RESEARCH
SOLVING Determine basis of segmentation
RESEARCH

Market Potential Research Segmentation Research Establish market potential and

Market Share Research
Image Research
Market Characteristics
Research
Sales Analysis Research
Forecasting Research
Business Trends Research
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Product Research responsiveness for various segments
Pricing Research
Promotion Research
Distribution Research Select target markets and create lifestyle
profiles, demography, media and product
image characteristics
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 PRODUCT RESEARCH PRICING RESEARCH
Test concept Importance of pricing in brand selection
Optical product design Pricing policies
Package tests Product line pricing
Product modification Price elasticity of demand
Brand positioning and repositioning Response to price changes
Test marketing
Control store tests
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PROMOTIONAL RESEARCH DISTRIBUTION RESEARCH

Optimal promotional budget Type of distribution
Sales promotion relationship Attitudes of channel members
Optimal promotional mix
Intensity of wholesale and retail coverage
Copy decisions
Media decisions Channel margins
Creative advertising testing Location of retail and wholesale outlets
Claim substantiation
Evaluation of advertising effectiveness
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 TYPES OF MR
Ad Tracking
Advertising Research
Brand Equity Research
Brand Name Testing
Commercial Eye Tracking
Research
Concept Testing
Coolhunting
Buyer Decision Process
Research
Copy Testing
Customer Satisfaction
Research
Demand Estimation
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Distribution Channel Audit
Marketing Effectiveness &
Analytics
Mystery Shopping
Positioning Research
Price Elasticity Testing
Sales Forecasting
Segmentation Research
Online Panel
Store Audit
Test Marketing
Viral Marketing Research
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 STEPS IN MR
CHAPTER 02 1. Problem definition
2. Development of an approach to the problem
MARKETING RESEARCH 3. Research Design formulation
i. Definition of the information needed
PLANNING ii. Secondary data analysis
iii. Qualitative research
iv. Methods of collecting quantitative data
v. Measurement and scaling procedures
vi. Questionnaire design
vii. Sampling process and sampling size
viii. Plan of data analysis
4. Fieldwork or data collection
5. Data preparation and analysis
6. Report preparation and presentation
2

Research
MARKETING RESEARCH Product Life-Cycle Stages

Area
REQUIREMENTS DURING THE LIFE OF Pre-launch Introduction Growth Maturity Decline
A MARKET OFFERING Market Size / profile Size / Brand-response Consumer
segments; of innovators profile of of different attitudes
Product Life-Cycle Stages
Research

dissatisfaction / early innovator / segments; size / towards the

Area

with current adopters; early profile of later brand;

Pre-launch Introduction Growth Maturity Decline options; market motivations adopters / majority / reasons for
potential of for brand early laggards; discontinua

Consumer
Industry Environmental Growth of proposed option adoption majority; relationship nce
structure, size, trends; changes substitutes relationship with the brand
growth; govt. in technology with the
Environment

policies & consumer brand;

tastes; motivations
development of for brand
new markets adoption;
attitude
towards the
brand
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 Research

Research
Area Product Life-Cycle Stages Product Life-Cycle Stages

Area
Pre-launch Introduction Growth Maturity Decline Pre-launch Introduction Growth Maturity Decline

Acceptability of Trial / repeat Repeat Brand loyalty Scope for Acceptability of Response to Opportunity Influence of Opportunity
the product purchase / purchase; levels; scope repositioning proposed price price; value for price price on brand of brand-
concept; adoption brand image for & & selective for money modification image; sustenance
positioning; rates; brand & identity; acceptance of promotion purchase & through
Product / Service

benefit switch; initial brand brand loyalty; price

expectations; experience; loyalty; extensions; response to discounts

Price
patterns of brand opinion patterns of brand identity price variants
product use vis--vis brand use
competition

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Research

Research
Product Life-Cycle Stages Product Life-Cycle Stages
Area

Area
Pre-launch Introduction Growth Maturity Decline Pre-launch Introduction Growth Maturity Decline

Brand Efficacy of Impact of Availability; Availability; Degree of Reasons for

awareness; promotion sales dealer dealer reach & dealer
brand media vis-- promotion; acceptance; acceptance; penetration; discontinuance
knowledge; vis brand opportunities dealer support dealer dealer of the brand
initial brand objectives for to brand support to support to

Distribution
Promotion

image; repositioning brand; dealer brand;

appropriate the brand; network opportunities
promotion impact of extension for &
channels advertising opportunity potential of
strategies new
channels

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 TASKS INVOLVED

Discussions with Interviews with Secondary Data Qualitative

Decision Makers(s) Experts Analysis Research DISCUSSIONS WITH DECISION MAKERS
ENVIRONMENTAL CONTEXT OF THE PROBLEM
Problem Audit 7 Cs framework
Step 1: PROBLEM DEFINITION History of problem Communication
Management Decision Problem Alternative courses of Cooperation
action for DM Confidence
Marketing Research Problem Criteria for evaluating Candor
these Closeness
Step 2: APPROACH TO THE PROBLEM
Information needed by Continuity
DM
Creativity
Objective / Analytical Model: Research Hypothesis Specification Corporate culture for
Theoretical Verbal, Graphical, Questions of Information decision making
Foundations Mathematical needed
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Step 3: RESEARCH DESIGN

INTERVIEWS WITH INDUSTRY

EXPERTS SECONDARY DATA ANALYSIS
Experts persons knowledgeable about the
firm and / or the industry Secondary data is data collected for some
Unstructured personal interviews purpose other than the problem at hand.
Purpose define the problem
Primary data is data originated by the
Particularly useful when researcher specifically to address the
Little is known research problem.
Technical products
Cost and time
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 ENVIRONMENTAL CONTEXT OF THE
PROBLEM
QUALITATIVE RESEARCH
P Past information and forecasts
Unstructured, exploratory research R Resources and constraints
methodology based on small samples intended O Objectives
to provide insight and understanding of the B Buyer behaviour
problem setting The number and geographical location of the buyers and
nonbuyers
Demographic and psychological characteristics
Might be informal Product consumption habits and consumption of related product
categories
Media consumption behaviour and response to promotions
Techniques like focus group, word association Price sensitivity
etc. Retail outlets patronized
13 Buyer preferences 14

L Legal environment
MD PROBLEM & MR PROBLEM
E Economic environment
Purchasing power, MANAGEMENT MARKETING
gross income, DECISION PROBLEM RESEARCH PROBLEM
disposable income,
Asks what the DM needs Asks what information is
discretionary income,
to do needed and how it should
prices,
be obtained
savings,
Action oriented Information oriented
credit availability,
general economic conditions (growth,
recession, stagflation etc.)
Focuses on symptoms Focuses on underlying
M Marketing and technological skills causes
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 MANAGEMENT DECISION
PROBLEM
Should a new product be
introduced?
Should the advertising campaign be To determine the effectiveness of
changed?
Should the price of the brand be
increased?
How should advertising budget be
allocated among different media?
Should office be kept open on
Saturdays?
COMPONENTS OF THE APPROACH
Objective / Theoretical Framework
Analytical Model
Research Questions
Hypotheses
Specification of information needed
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MARKETING RESEARCH
PROBLEM
To determine consumer preferences
and purchase intentions for the
proposed new product
the current advertising campaign
To determine the price elasticity of
demand and the impact on sales
and profits of various levels of
price changes
To estimate the awareness
generated by each type of media
To evaluate the use of services on
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Objective evidence Unbiased evidence
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MR problem can be too broad or too narrow
Solution broad statement and specific
components
The broad statement is the initial statement of
the MR problem that provides an appropriate
perspective on the problem.
The specific components focus on the key
aspects of the problem and provide clear
guidelines on how to proceed further.
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OBJECTIVE / THEORETICAL
FRAMEWORK
Theory a conceptual scheme based on
foundational statement, or axioms, that are
assumed to be true.
that is supported by empirical findings.
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 ANALYTICAL MODEL VERBAL MODEL
Verbal models provide a written representation of
the relationships between variables.
An analytical model is a set of variables and
their interrelationships designed to E.g.: A consumer first becomes aware of a
represent, in whole or in part, some real department store. That person then gains an
system or process. understanding of the store by evaluating the store
in terms of the factors comprising the choice
Verbal Models criteria. Based on the evaluation, the consumer
Graphical Models forms a degree of preference for the store. If
Mathematical Models preference is strong enough, the consumer will
patronize the store.
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GRAPHICAL MODEL MATHEMATICAL MODEL

Graphical models provide a visual picture of the Mathematical models explicitly describe the
relationships between variables. relationships between variables, usually in
equation form.
E.g.
E.g.
Awareness n
y = a o + ai x i
Understanding: Evaluation i=1

Preference Where y = degree of preference

ao, ai = model parameters to be estimated statistically
xi = store patronage factors that constitute the choice criteria
Patronage
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RESEARCH QUESTIONS
Research questions are refined statements of
the specific components of the problem.
AAA credit could be measured in any of the following ways:
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HYPOTHESES
A hypothesis (H) is an unproven statement
or proposition about a factor or
phenomenon that is of interest to the
researcher
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E.g. In a research for deptt. store, if a component of the
problem was psychological profile, then the research
questions could be:
Do they exhibit store loyalty?
Are they heavy users of credit?
Are they more conscious of personal appearance as compared to
customers of competing stores?
Do they combine shopping with eating out?
Whether the customer holds a AAA credit card;
Whether the customer uses the AAA credit card;
The number of times the AAA credit card was used in a specified
time period;
The rupee amount charged to the AAA credit card during a
specified time period.
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RQ1: What foods are considered as comfort
foods?
H1: Potato chips are considered comfort food.
H2: Ice-cream is considered comfort food.
RQ2: When do people eat comfort foods?
H1: People eat comfort food when they are in a good
mood.
H2: People eat comfort food when they are in a bad
mood.
RQ3: How do people become attached to comfort
foods?
H1: People are attached to comfort foods that are
consistent with their personality.
H2: People are attached to comfort foods because of
past associations.
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 SPECIFICATION OF
H1: Customers who are store loyal are less
knowledgeable about the shopping environment INFORMATION NEEDED
By focusing on the following:
each component of the problem,
H2: Store-loyal customers are more risk averse
than non-loyal customers analytical framework and models,

research questions,

hypotheses

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 CHAPTER xx RD - DEFINITION
RESEARCH DESIGN
RD is a framework or blue print for
RESEARCH DESIGN conducting the MR project. It specifies the
details of the procedures necessary for
obtaining the information needed to
structure and / or solve MR project.

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CLASSIFICATION OF RD
RESEARCH DESIGN
TASKS INVOLVED IN RD
EXPLORATORY RD CONCLUSIVE RD
Define the information needed
Design the exploratory, descriptive and/or causal
phases of the research DESCRIPTIVE RD CAUSAL RD
Specify the measurement and scaling procedures
Construct and pretest a questionnaire or an
appropriate form for data collection CROSS-SECTIONAL RD LONGITUDINAL RD
Specify the sampling process and sample size
Develop a plan of data analysis SINGLE MULTIPLE
CROSS-SECTIONAL RD CROSS-SECTIONAL RD
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 EXPLORATORY RD
Definition Exploratory research is research whose
primary objective is to provide insight into and an
understanding of the problem confronting the researcher.
Purposes
Formulate a problem or define a problem more precisely
Identify alternative courses of action
Develop hypotheses
Isolate key variables and relationships for further examination
Gain insights for developing an approach to the problem
Establish priorities for further research
Methods
Survey of experts
Pilot surveys
Secondary data analyzed in a qualitative way
Qualitative research
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DESCRIPTIVE RD
Definition Conclusive research is research
designed to assist the decision maker in
determining, evaluating and selecting the best
course of action to take in a given situation.
Purposes
To describe the characteristics of relevant groups, such
as consumers, salespeople, organizations, or market
areas
To estimate the percentage of units in a specified
population exhibiting a certain behaviour.
To determine the perceptions of product characteristics
To determine the degree to which marketing variables
are associated.
To make specific predictions.

6 Ws of research
Who
What
When Methods
Where
Why Secondary data analyzed in a quantitative
Way
manner;
Examples of descriptive research
Surveys
Market studies
Market share studies
Panels
Sales analysis studies
Image studies
Observational and other data
Product usage studies
Distribution studies
Pricing studies
Advertising
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Types
Cross-sectional research is a type of RD involving the
collection of information from any given sample of
population elements only once
Single cross-sectional (sample survey rd)
Multiple cross-sectional
e.g. Cohort Analysis: a multiple cross-sectional
design consisting of a series of surveys conducted at
appropriate time intervals. The cohort refers to the
group of respondents who experience the same
event within the same time interval.
Longitudinal research is a type of RD involving a fixed
sample of population elements that is measured
repeatedly
Panel
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CAUSAL RD
Definition a type of conclusive research where
the major objective is to obtain evidence regarding
cause-and-effect (causal) relationships.
Purposes
To understand which variables are the cause
(independent variable) and which are the effect
(dependent variable) of a phenomenon.
To determine the nature of the relationship between the
causal variables and the effect to be predicted.
Main method
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EXPLORATORY DESCRIPTIVE CAUSAL POTENTIAL SOURCES OF ERROR

RESEARCH RESEARCH RESEARCH
Total Error
Objective Discover ideas & Describe market Determine cause
insights characteristics or & effect
Random Sampling Nonsampling
functions relationship
Error Error
Characteristics Flexible Marked by Manipulation of
Versatile prior one or more
Response Nonresponse
Often the front formulation of independent
specific variables Error Error
end of total RD
hypotheses Control of other
Preplanned & mediating
Researcher Interviewer Respondent
structured RD variables Errors Errors Errors
Methods Expert surveys Surveys Experiments Surrogate Information Respondent Selection Inability

Pilot surveys Secondary data Measurement Questioning Unwillingness

Secondary data Panels Population definition Recording
Qualitative Observational Sampling Frame Cheating
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 CHAPTER 03 SECONDARY DATA
EXPLORATORY RESEARCH
Primary data is data originated by the
EXPLORATORY RESEARCH researcher for the specific purpose of
addressing the research problem.

Secondary data is data collected for some

purpose other than the problem at hand.

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DISADVANTAGES OF SECONDARY
USE OF SECONDARY DATA DATA

Identify the problem Have been collected for some other

Better define the problem
Develop an approach to the problem
Formulate an appropriate RD
Answer certain research questions and test
some hypotheses
Interpret primary data more insightfully
purpose; hence usefulness for current
purpose may be limited;
Objectives, nature and methods of data
collection may not be appropriate for this
project;
May lack in accuracy or may not be
completely current or dependable.

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 CLASSIFICATION OF QUALITATIVE
QUALITATIVE VS. QUANTITATIVE RESEARCH PROCEDURES
RESEARCH QUALITATIVE RESEARCH PROCEDURES

Qualitative research: An unstructured, DIRECT INDIRECT

exploratory research methodology based on (NONDISGUISED) (DISGUISED)

small samples that provides insights and

understanding of the problem setting. FOCUS DEPTH PROJECTIVE
GROUPS INTERVIEWS TECHNIQUES
Quantitative research: A research
methodology that seeks to quantify the data
and, typically, applies some form of ASSOCIATION COMPLETION CONSTRUCTION EXPRESSIVE
TECHNIQUES TECHNIQUES TECHNIQUES TECHNIQUES
statistical analysis.
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VARIATIONS IN FOCUS GROUPS

FOCUS GROUPS - CHARACTERISTICS

Group Size: 8 to 12 Two-way focus group

Group Composition: Homogeneous; Dual-moderator focus group
Respondents pre-screened
Dueling-moderator group
Physical Setting: Relaxed, informal atmosphere
Respondent-moderator group
Time Duration: 1 to 3 hours
Recording: Use of audiocassettes and Client-participant group
videotapes Minigroups
Moderator: Observational, interpersonal, and Telesession groups
communication skills
Online focus groups
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 ADVANTAGES OF FOCUS GROUPS DISADVANTAGES OF FOCUS GROUPS

Synergism
Misuse
Snowballing
Stimulation Misjudge
Security
Moderation
Spontaneity
Serendipity Messy
Scientific scrutiny
Misrepresentation
Structure
Speed
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APPLICATIONS OF FOCUS GROUPS METHODOLOGICAL APPLICATIONS OF

Understanding consumers perceptions,
preferences and behaviours regarding product
category.
Obtaining impressions of new product concepts.
Generating new ideas about older products.
Developing creative concepts and material for
advertisements.
Securing price impressions.
Obtaining preliminary consumer reaction to
specific marketing programmes.
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FOCUS GROUPS
Defining a problem more precisely
Generating alternative courses of action
Developing an approach to a problem
Obtaining information helpful in structuring
consumer questionnaires
Generating hypotheses that can be tested
quantitatively
Interpreting previously obtained
quantitative results
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 DEPTH INTERVIEW DEPTH INTERVIEW
CHARACTERISTICS ADVANTAGES & DISADVANTAGES
Unstructured
Direct ADVANTAGES
One-to-one basis (also called Individual Depth
Depth Interview IDI) No group pressure
Skilled interviewer to uncover underlying
motivations, beliefs, attitudes DISADVANTAGES
Time 30 minutes to over an hour Interviewer skill
Rough outline for interviewer Long duration
Probing 20 22

PROJECTIVE TECHNIQUES TYPES

PROJECTIVE TECHNIQUES
Association Techniques
Word Association
Completion Techniques
An unstructured and indirect form of
Sentence Completion
questioning that encourages the respondents Paragraph Completion
to project their underlying motivations, Story Completion
beliefs, attitudes, or feelings regarding the Construction Techniques
issues of concern Picture Response
Cartoon Tests
Expressive Techniques
Role Playing
Third Person Technique
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 DESCRIPTIVE RD
CHAPTER 04
DESCRIPTIVE RESEARCH
SURVEY
A structured questionnaire given to respondents
DESCRIPTIVE RD and designed to elicit specific information

OBSERVATION
The recording of behavioural patterns of
people, objects and events in a systematic
manner to obtain information about the
phenomenon of interest
1 2

SURVEY SURVEY METHOD

ADVANTAGES & DISADVANTAGES
Behavioural and non-behavioural correlates
Behaviour, intentions, attitudes, awareness, motivations,
Advantages
demographic & lifestyle characteristics Easy to administer
Responses recorded Reliable
Structured data collection Variability reduced
Formal questionnaire Coding, editing etc. simple
Prearranged order of questions
Typically fixed-alternative questions (e.g. Disadvantages
shopping in a department store is fun Inability or unwillingness
1 2 3 4 5 Loss of validity
Disagree agree Wording of questions
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 CLASSIFICATION OF SURVEY METHOD
SURVEY METHODS OBSERVATION
TELEPHONE PERSONAL MAIL ELECTRONIC
INTERVIEWING INTERVIEWING INTERVIEWING INTERVIEWING The recording of behavioural patterns of
people, objects and events in a systematic
TRADITIONAL IN-HOME MAIL E-MAIL
manner to obtain information about the
COMPUTER MALL MAIL
INTERNET
phenomenon of interest
ASSISTED INTERCEPT PANEL

COMPUTER No communication with respondent

ASSISTED

Recording as events occur or past events

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Structured vs. Unstructured observation

Structured observation
Disguised vs. Undisguised observation
Potential observer bias reduced
Reliability enhanced Disguised observation
Appropriate when problem is clearly defined
Appropriate when information needed is specified Inconspicuous mechanical devices
Suitable for conclusive research
Disguised observers
Unstructured observation
Appropriate when problem is yet to be precisely
Undisguised observation
formulated
Potential observer bias high
Debate regarding effect on respondents behaviour

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 CLASSIFICATION OF OBSERVATION METHODS

Natural vs. Contrived observation OBSERVATION METHODS

PERSONAL TRACE
Natural observation OBSERVATION ANALYSIS

More accurate reflection of behaviour MECHANICAL CONTENT

OBSERVATION ANALYSIS

Cost of waiting Devices not

requiring direct AUDIT
participation
Difficulty of measurement e.g. audimeter, Devices requiring direct
people meter, participation
on-site Eye-tracking monitors,
Contrived observation cameras, pupilometers,
turnstiles, psychogalvanometers, voice pitch
9 traffic counters analyzers, devices measuring 10
etc. response latency

OBSERVATION METHOD
ADVANTAGES & DISADVANTAGES
Advantages
Measurement of actual behaviour
No reporting bias
Interviewer bias reduced
Only method for certain types of behaviour
Cheaper than survey
Disadvantages
Reasons for behaviour not understood
Selective perception of researcher
Time consuming
Difficult in certain types of behaviour
May be unethical
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 CONDITIONS FOR CAUSALITY
CHAPTER 05 These conditions are necessary but not
CAUSAL RESEARCH sufficient to demonstrate causality. No one of
these three conditions, or all three conditions
combined, can demonstrate decisively that a
CAUSAL RD causal relationship exists.

Concomitant Variation

Time order of occurrence of variables

Absence of other possible causal factors

1 2

DEFINITIONS & CONCEPTS SYMBOLS

Independent variables (treatments) X = the exposure of a group to an

independent variable, treatment, or event,
Test units
the effects of which are to be determined
Dependent variables O = the process of observation or
Extraneous variables measurement of the dependent variable on
the test units or group of units
Experiment
R = the random assignment of test units or
Experimental design groups to separate treatments

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 CONVENTIONS
Movement from left to right
Horizontal alignment of symbols
Vertical alignment of symbols
E.g.
X O1 O2
R X1 O1
R X2 O2
5 6
VALIDITY internal and external
External validity: to determine whether the
cause-and-effect relationship found in the
experiment can be generalized.
Can the results be generalized beyond the
experimental situation? If so, to what
populations, settings, times, independent
variables, and dependent variables can the
results be projected? To ensure external
validity, the experimental conditions must take
into account the interactions of other relevant
variables in the real world.
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VALIDITY internal and external
Internal validity: to measure the accuracy of
the experiment. It measures whether the
manipulation of the independent variables
actually caused the effects on the dependent
variables.
There could be extraneous variables that also
affect the dependent variable and hence
confound the results. These extraneous
variables have to be controlled to establish
internal validity. Without internal validity the
experimental results are confounded.
VALIDITY internal and external
Experimental design should have both
internal and external validity. But in applied
MR we often have to trade one for the
other. To control for extraneous variables, a
researcher may conduct an experiment in a
controlled environment. E.g. tasting a new
item in a test kitchen. This may ensure
internal validity. But will the results hold
true when the item is served in a fast food
outlet? So we may have traded external
validity for internal validity.
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 EXTRANEOUS (confounding) VARIABLES
History
Maturation
Testing
MT
IT
Instrumentation
Statistical Regression
Selection Bias
Mortality
The various categories of extraneous variables are
not mutually exclusive. They may occur jointly and
also interact with each other.
EXTRANEOUS VARIABLES (maturation)
Extraneous variables caused by changes in the
test units themselves that occur with the
passage of time.
People may change with age, experience,
boredom, become uninterested etc. Tracking
and market studies spanning several months
are subject to maturation.
Test units other than people may also change.
E.g. a store may change in dcor, physical
layout etc.
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EXTRANEOUS VARIABLES (history)
Specific events that are external to the
experiment but occur at the same time as the
experiment.
E.g. consider the following experiment
O1 X 1 O2
Sales of a department store are measured in a
specific region at two points of time and X1
represents a new promotional campaign. The
treatment effect is (O2 O1). Suppose there
was an increase in sales. It may or may not
have been due to the promotional campaign.
An economic depression may have affected
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sales, for example. 10
EXTRANEOUS VARIABLES (testing)
Testing effects are caused by the process of
experimentation. These are the effects on
the experiment of taking a measure on the
dependent variable before and after the
treatment.
Two kinds of testing effects main testing
effect (MT) and interactive testing effect
(IT).
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 EXTRANEOUS VARIABLES (MT)
An effect of testing occurs when a prior observation
affects a latter observation.
E.g. An experiment to measure the effect of advertising
on attitudes towards a certain brand. Respondents are
given a pre-treatment questionnaire to measure their
attitude. Then they are exposed to a test commercial of
the brand and then given a post-treatment questionnaire.
It may be possible that in answering the post-treatment
questionnaire, respondents may consciously try to
maintain consistency between their pre and post-
treatment attitudes. Or they may consciously try to
change their post-treatment attitude because it is being
measured. So the pre-treatment measurement affected
the post-treatment measurement.
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EXTRANEOUS VARIABLES (instrumentation)
An extraneous variable involving changes in the measuring
instrument or in the observers or scores themselves.
Maybe the measuring instrument was modified during the course
of an experiment. This can lead to variations of responses
obtained.
E.g. If one questionnaire is used to measure pre-test attitude and a
new questionnaire is used to measure post-test attitude.
E.g. if dollar sales is used to measure sales before & after
experiment. Suppose non-experimental price change occurs during
the experiment period. Then dollar sales will be measured using
different unit prices. Then the instrument (dollar) has changed.
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EXTRANEOUS VARIABLES (IT)
An effect in which a prior measurement affects
the test units response to the independent
variable.
E.g. In the above example, when people are
given the pre-treatment questionnaire, they
become sensitized to the brand. So they are
more likely to pay attention to the test
commercial than people who are not included
in the experiment. So the measured effect is
not generalizable to the population. Hence the
interactive testing effects influence the
experiments external validity.
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EXTRANEOUS VARIABLES (statistical regression)
SR effect occurs when test units with extreme scores
move closer to the average score during the course
of the experiment.
In the earlier example, people who had very
favourable or very unfavourable attitude towards the
brand might change their attitude and on post-
treatment measurement their attitude might have
moved towards the average. Peoples attitudes
change constantly. People with extreme attitudes
have more room for change, so variations are more
likely. Hence a change from extreme attitude to
moderate attitude maybe due to SR effect rather
than the treatment (the test commercial). This may
confuse measurement.
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 EXTRANEOUS VARIABLES (selection bias)
SB is the improper assignment of test units to
treatment conditions.
This bias occurs when selection of test units results
in treatment groups that differ on the dependent
variable before the exposure to the treatment
condition.
E.g. in a merchandising experiment, two different
merchandising displays (old and new) are assigned
to different department stores. The stores in the two
groups may vary with respect to key characteristics
such as store size which is likely to affect sales
regardless of which merchandising display was
assigned to a store.
CONTROLLING THE EXTRANEOUS
VARIABLES
Randomization
Matching
Statistical Control
Design Control
Consolidated By: Debanjan Datta
EXTRANEOUS VARIABLES (mortality)
MO refers to the loss of test units while the
experiment is in progress.
This may happen for many reasons, like test
units refusing to continue the experiment.
This confounds results. In the earlier
example, suppose three stores drop out. The
researcher cannot determine whether the
average sales for the new display stores
would have been higher or lower if the three
stores would have continued.
17 18
CONTROLLING THE EXTRANEOUS VARIABLES - randomization
Random assignment of test units to
experimental groups using random
numbers. Treatment conditions are also
randomly assigned to experimental groups.
E.g. Respondents are randomly assigned to
one of three experimental groups. One of
the three versions of a test commercial,
selected at random, is administered to each
19 group. Page 20
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 CONTROLLING THE EXTRANEOUS VARIABLES - matching CONTROLLING THE EXTRANEOUS VARIABLES statistical control

Measuring the extraneous variables and

Comparing test units on a set of key background
variables before assigning them to the treatment adjusting for their effects through statistical
conditions. analysis.
E.g. in the merchandising experiment, the stores could
have been matched on the basis of annual sales, size or
location. Then one store from each matched pair would Statistical procedures used such as
be assigned to each experimental group. ANCOVA (analysis of covariance) where
Disadvantages of matching the effects of the extraneous variable on the
Test units can be matched only on a few characteristics. So dependent variable are removed by an
they may be unequal on other characteristics.
If the matched characteristics are irrelevant to the dependent adjustment of the dependent variables
variable, then the matching effort has been futile. mean value within each treatment condition.
21 22

CLASSIFICATION OF EXPERIMENTAL DESIGNS

EXPERIMENTAL DESIGNS

PRE- TRUE QUASI-

STATISTICAL
TEST MARKETING
EXPERIMENTAL EXPERIMENTAL EXPERIMENTAL

One-Shot case study Pretest-Posttest Control Time Series Randomized Blocks

Group

X 01
EG: R 01 X 02
O1 O2 O3 X O6 O7 O8 Latin Square
Standard Test Market
EG: R 03 04 Multiple Time Series Factorial

Posttest-only Control
Controlled and Mini-Market Tests
One-Group Pretest
Posttest Group EG: O1 O2 O3 X O6 O7 O8
CG: O1 O2 O3 O6 O7 O8
01 X 02 EG: R X 01
EG: R 02
Simulated Test Marketing
Static Group Solomon Four Group

EG: X 01
CG: 02
23
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29 of 36
 Standard Test Market Controlled and Mini Test Market
Test markets are selected and the product is sold through regular distribution channels.

Typically, the companys own sales force is responsible for distributing the product. Sales personnel stock
The entire test-marketing programme is conducted by an outside
the shelves, restock, and take inventory at regular intervals. One or more combinations of marketing mix
variables are employed.
research company. The research company guarantees distribution of
Standard test market constitutes a one-shot case study.

Designing a standard test market involves deciding what criteria are to be used for selecting test markets,
the product in retail outlets that represent a predetermined percentage
how many test markets to use, and the duration of the test.
of the market. The research company handles warehousing and field
The more the test markets, the better. If resources are limited, at least two test markets for each
programme variation to be tested. Where external validity is important, at least four test markets.
sales operations like shelf stocking, selling and inventory control. The
Duration of test depends on repurchase cycle of product (should be long enough to observe repurchase
activity), probability of competitive response (if competitive reaction to test is anticipated then short
duration), cost considerations (long duration high cost), initial consumer response and company
philosophy. According to recent research, tests of new brands should run for at least 10 months. In 85% controlled test market includes both minimarket (or forced
of the times, the final test market share was reached in 10 months, and in 95% of the time it was
reached in 12 months.
distribution) tests and the smaller controlled store panels. Research
Problems of standard test marketing:

Competitors often take actions such as increasing their promotional efforts to contaminate the test-marketing firms like ACNielsen provide this service.
programme;
While a company is into test-marketing, its competitor may beat it to the national market by launching the
product without test-marketing.

50 51

Simulated Test Market

Also called a laboratory test or test market simulation, simulated test
market is a quasi test market in which respondents are preselected,
then interviewed and observed on their purchase and attitude toward
the product. This yields a mathematical estimate of market share based
on initial reaction of consumers to a new product.

Typically, the respondents are intercepted in high-traffic locations like

shopping malls and prescreened for product usage. The selected
individuals are exposed to the proposed new product concept and
given an opportunity to buy the new product in a real-life or lab
environment. Those who purchase the product are interviewed about
their evaluation of the product and repeat-purchase intentions. The
trial and repeat-purchase estimates so generated are combined with
data on proposed promotion and distribution levels to project a share
of the market.

Simulated test markets can be conducted in 16 weeks or less. The

information they generate is confidential and the competition cannot
get hold of it. They are also relatively inexpensive.
52
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 FIELD FORCE
CHAPTER 09 2 options for field force develop your own
organization or contract with a fieldwork
FIELDWORK & DATA PREPARATION agency.

FIELDWORK
The field force may operate either in the field
(personal interview) or from an office
(telephone, mail, electronic survey).

Field force typically has little research

background or training. Ethical concerns are
1 particularly germane to fieldwork. 2

Step 1: Selection
FIELDWORK / DATA
COLLECTION PROCESS Process of selection Communicative
Job specification Pleasant appearance
Characteristics Educated
Selection of field workers Recruitment Experienced
Background Interviewer experience
Training of field workers
Commonality Coding, recording,
Supervising of field workers General qualifications
probing
Filling quotas
Validation of fieldwork Healthy
Refusal rates
Outgoing
Evaluation of field workers
3 4
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 Step 2: Training
Initial contact Pause or silent probe
Step 3: Supervision
Asking questions Reassurance
Familiarity Clarification Quality control and editing
Order Neutral questions Sampling control
Wording
Recording Control of cheating
Slow reading
During interview
Repeat Central office control
Every applicable question Own words
Instructions & skip No summarization
patterns All probes/comments
Probing Repeat response Step 4: Validation of field work
Repeat question Terminating
Repeat reply 5 6

Step 5: Evaluation
Cost Probing
Sensitive questions
Time
Interpersonal skills
Interviewing
Travel
Termination DATA PREPARATION
Administration Quality of data
Legibility
Response rate
Instructions
Quality of Verbatim recording
interviewing
Complete entries
Introduction
Non-response
Precision
7 1
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 DATA PREPARATION Step 2: Questionnaire checking
1. Preparing preliminary plan of data analysis Incomplete
2. Questionnaire checking
Instructions
3. Editing
4. Coding Variance
5. Transcribing Physically incomplete
6. Data cleaning
Date
7. Statistically adjusting data
8. Selecting a data analysis strategy Respondent
2 3

Step 3: Editing Treatment

Returning to the field Discarding
Illegible Assigning missing respondents
Proportion of
values respondents
Incomplete Small number of Proportion of
respondents responses
Inconsistent Small proportion of Sample size
responses Difference of
Not key variables respondents
Ambiguous Key variables

4 5
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 Step 7: Statistically adjusting
Step 6: Data cleaning
data
Consistency check Treatment of missing
Out of range value responses Weighting
Logically inconsistent Neutral value
Imputed response Variable respecification
Extreme values
Casewise deletion
Pairwise deletion
Scale of transformation
Sample size large
Few missing responses
Variables not highly
related
6 7

Step 8: Data analysis strategy

Earlier steps in MR
Problem definition REPORT PREPARATION
Development of an approach
Research design AND PRESENTATION
Known characteristics of data
Properties of statistical techniques
Researchers background and philosophy
8 1
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 REPORT FORMAT
STEPS INVOLVED Title page
Title, researcher information, client name,
date of release
1. Report preparation Letter of transmittal
Letter of authorization
2. Oral presentation
Table of contents
3. Reading of report by client List of tables
List of graphs
4. Research follow-up
List of appendices
3
List of exhibits 4

Executive Summary Research Design

Major findings Type of research design
Conclusions Information needs
Recommendations Data collection from secondary sources
Data collection from primary sources
Problem definition
Scaling techniques
Background to the problem
Questionnaire development and pretesting
Statement of the problem
Sampling techniques
Approach to the problem fieldwork

5 6
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 Data analysis
Methodology

Plan of data analysis

Results

Limitations and caveats

Conclusions and recommendations

Exhibits
7

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