Chapter Four

Exploratory Research Design:

Secondary Data
 4-2

Chapter Outline
1) Overview
2) Primary versus Secondary Data
3) Advantages & Uses of Secondary Data
4) Disadvantages of Secondary Data
 4-3

Chapter Outline
5) Criteria for Evaluating Secondary Data
i. Specifications: Methodology Used to
Collect the Data
ii. Error: Accuracy of the Data
iii. Currency: When the Data Were Collected
iv. Objective(s): The Purpose for Which the
Data Were Collected
v. Nature: The Content of the Data
vi. Dependability: Overall, How Dependable
are the Data
 4-4

Chapter Outline
6) Classification of Secondary Data
7) Internal Secondary Data
8) Published External Secondary Sources
i. General Business Sources
a. Guides
b. Directories
c. Indexes
d. Non-governmental Statistical Data
 4-5

Chapter Outline
ii. Government Sources Censu
s
a. Census Data Data

b. Other Government Publications

9) Computerized Databases
i. Classification of Computerized Databases
ii. Directories of Databases
10) Syndicate Sources of Secondary Data
 4-6

Chapter Outline
11) Syndicated Data from Households
i. Surveys
a. Psychographics & Lifestyles
b. Advertising Evaluation
c. General Surveys
d. Uses of Surveys
e. Advantages & Disadvantages of Surveys
ii. Panels
a. Purchase Panels
b. Media Panels
c. Uses of Panels
d. Advantages & Disadvantages of Panels
 4-7

Chapter Outline
12) Electronic Scanner Services
i. Volume Tracking Data
a. Scanner Diary Panels
b. Scanner Diary Panels with Cable TV
c. Uses of Scanner Services
d. Advantages & Disadvantages
13) Syndicated Data from Institutions
i. Retailers & Wholesalers
a. Uses of Audit Data
b. Advantages & Disadvantages of Audit Data
 4-8

Chapter Outline
ii. Industry Services
a. Uses of Industry Services
b. Advantages & Disadvantages of
Industry Services
14) Combining Information from Different
Sources: Single-Source Data
15) Applications of Secondary Data
i. Computer Mapping
 4-9

Chapter Outline
16) International Marketing Research
17) Ethics in Marketing Research
18) Internet and Computer Applications
19) Focus on Burke
20) Summary
21) Key Terms & Concepts
 4-10

Primary vs. Secondary Data

 Primary data are originated by a
researcher for the specific purpose of
addressing the problem at hand. The
collection of primary data involves all
six steps of the marketing research
process (Chapter 1).
 Secondary data are data which have
already been collected for purposes
other than the problem at hand. These
data can be located quickly and
inexpensively.
 A Comparison of Primary & Secondary 4-11

Data
Table 4.1

Primary Data Secondary Data

Collection purpose For the problem at hand For other problems

Collection process Very involved Rapid & easy
Collection cost High Relatively low
Collection time Long Short
 4-12

Uses of Secondary Data

 Identify the problem
 Better define the problem
 Develop an approach to the problem
 Formulate an appropriate research design
(for example, by identifying the key
variables)
 Answer certain research questions and
test some hypotheses
 Interpret primary data more insightfully
Criteria for Evaluating Secondary 4-13

Data
 Specifications: Methodology Used to
Collect the Data
 Error: Accuracy of the Data
 Currency: When the Data Were
Collected
 Objective(s): The Purpose for Which
the Data Were Collected
 Nature: The Content of the Data
 Dependability: Overall, How
Dependable Are the Data
 Criteria for Evaluating Secondary 4-14

Data
Table 4.2

Criteria Issues Remarks

Specifications Data collection method, Data should be

& response rate, quality & analysis reliable, valid, &
Methodology of data, sampling technique & generalizable to the
size, questionnaire design, problem.
fieldwork.
Error & Examine errors in approach, Assess accuracy by
Accuracy research design, sampling, data comparing data from
collection & analysis, & different sources.
reporting.
Currency Census data are
Time lag between collection & updated by syndicated
Objective publication, frequency of firms.
updates. The objective
Nature Why were the data collected? determines the
relevance of data.
Definition of key variables, units Reconfigure the data to
Dependability of increase their
measurement, categories used, usefulness.
 A Classification of Secondary 4-15

Data
Fig. 4.1

Secondary Data

Internal External

Ready to Requires Published Computerized Syndicated

Use Further Materials Databases Services
Processing
 4-16
Slide 1
Sources of Secondary Data(From Nargundkar)

There are two major sources of secondary data –

•.Internal
•.External

Internal records in the company comprise information about the product being
researched, its history, company background and history, market share, and
competitor information. These types of information are usually maintained by
the marketing department, sales department, or a corporate cell for marketing
intelligence in the company.

External information sources include syndicated reports such as retail sales data,
or market share data, or industry analyses. Some of this information may be
available from public sources such as business newspapers , magazines, industry
associations or trade bodies, or the net.

A prominent source of data on Indian industry is the CMIE or Centre for

Monitoring Indian Economy, which publishes monthly reports on various aspects
of the Indian economy and industry. The Hindu, a prominent daily newspaper,
publishes an annual Survey of Indian Industry, which is a low-priced and useful
 4-17

Slide 2

Syndicated research studies such as the NRS (National Readership Survey) or

IRS (Indian Readership Survey) are rich sources of data available to any
subscriber or buyer. These studies cover a large national sample, and measure
the readership of newspapers and magazines in great detail. They also cover
demographics and consumption patterns of household consumer goods.

The Audit Bureau of Circulation (ABC) is an autonomous body which

certifies the circulation of newspapers and magazines. The Indian
Newspapers Society (INS) also publishes a handbook every year with
circulation, readership and advertisement tariffs for various print media in the
country.

There are several computer-based data sources which provide on a sale and
subscription basis, updated information on financial and sales data on all
publicly listed companies. Now, some of this data is available on the
internet, particularly industry analyses.
 4-18

Slide 3

Creating a Mechanism for Gathering Secondary Data

The most useful way to gather relevant secondary data on a given industry is to
have a cell within the company to monitor and keep cuttings from business
magazines such as Advertising and Marketing, Business India, Business Today
and Business World.
This can be supplemented by newspaper reports from The Economic Times,
Business Line or other business dailies. Over a period of a few years, this method
ensures that we can easily look back and get a perspective on our brands, industry,
competitors etc.

This also creates reference material for new employees or trainees who are hired to
do their internship or summer projects in the company. It is now possible to keep
electronic clippings from the websites of many of these newspapers and
magazines.

The marketing research agency can also use this gathered material as background
information, and quickly launch into designing and conducting the primary
research based on what is known.
 4-19
Slide 4 Disadvantages of Secondary Data

Having looked at its advantages, it is also necessary to keep in mind some

disadvantages of secondary data.

•.It may be outdated. We may have cuttings which are 2 years old, about
consumer preferences, and these may have changed over time.

•.It may be done for a different purpose and therefore be slanted or biased. It is
important to note who has collected the data, and for what purpose, before making
a judgement on its usefulness.

•.The sample or the methodology may be different from, or unrepresentative of,

the target population we are studying. For example, the earlier study may have
studied only teenagers, whereas we are looking at all adults and teenagers.

•.The units of data aggregation may be different from what we need. For
example, we may want to know reactions from different sexes (male and female
separately), and these may not be reported separately. Or, only regionwise data
may be reported, not centre-wise or citywise. Or, the way income groups are
formed may be different from what we want to study.
 4-20

Slide 5

In spite of some obvious limitations, many types of secondary data serve the useful
purposes of

•Better prepared primary researchers

•Serving as a cross check for other secondary data
•Provoking thinking about methodology and its impact on results of research

Used judiciously, secondary research is an appropriate starting point for any

marketing research project, mainly because it is much less expensive than primary
research.

In the age of the internet, it is worthwhile to at least download and look at what is
available on the product and industry, before venturing out into the field for doing
primary research.
 4-21

Internal Secondary Data

Department Store Project
Sales were analyzed to obtain:
 Sales by product line

 Sales by major department (e.g., men's wear,

house wares)
 Sales by specific stores

 Sales by geographical region

 Sales by cash versus credit purchases

 Sales in specific time periods

 Sales by size of purchase

 Sales trends in many of these classifications

were also examined.

 Type of Individual/Household Level Data
4-22

Available from Syndicated Firms

I. Demographic Data
- Identification (name, address, telephone)
- Sex
- Marital status
- Names of family members
- Age (including ages of family members)
- Income
- Occupation
- Number of children present
- Home ownership
- Length of residence
- Number and make of cars owned
 Type of Individual/Household Level Data
4-23

Available from Syndicated Firms

II. Psychographic Lifestyle Data

- Interest in golf
- Interest in snow skiing
- Interest in book reading
- Interest in running
- Interest in bicycling
- Interest in pets
- Interest in fishing
- Interest in electronics
- Interest in cable television
There are also firms such as Dun & Bradstreet and American
Business Information which collect demographic data on
businesses.
 A Classification of Published Secondary
4-24

Sources
Fig. 4.2

Published
Secondary Data

General Business Government

Sources Sources

Guides Directories Indexes Statistical Census Other

Data Data Government
Publications
 InfoUSA: :
4-25

Here, There, Everywhere

InfoUSA (www.infousa.com) markets subsets of its

data in a number of forms, including the
professional online services (LEXIS-NEXIS and
DIALOG), the general online services (CompuServe
and Microsoft Network), the Internet (look-ups), and
on CD-ROM. The underlying database on which all
these products are based contains information on
113 million residential listings and 14 million
business listings, as of 2003. These are verified
with over 16 million phone calls annually. The
products derived from these databases include sales
leads, mailing lists, business directories, mapping
products, and also delivery of data on the Internet.
 A Classification of Computerized
4-26

Databases
Fig. 4.3

Computerized
Databases

Online Internet Off-Line

Bibliographic Numeric Full-Text Directory Special-

Databases Databases Databases Databases Purpose
Databases
Published External Secondary 4-27

Sources
Guides
 An excellent source of standard or recurring information

 Helpful in identifying other important sources of directories,

trade associations, and trade publications

 One of the first sources a researcher should consult

Directories
 Helpful for identifying individuals or organizations that collect

specific data
 Examples: Consultants and Consulting Organizations

Directory, Encyclopedia of Associations, FINDEX: The

Directory of Market Research Reports, Studies and Surveys,
and Research Services Directory

Indices
 Helpful in locating information on a particular topic in several

different publications
Classification of Computerized 4-28

Databases
 Bibliographic databases are
composed of citations to articles.
 Numeric databases contain numerical
and statistical information.
 Full-text databases contain the
complete text of the source documents
comprising the database.
 Directory databases provide
information on individuals, organizations,
and services.
 Special-purpose databases provide
specialized information.
 4-29

Syndicated Services
 Companies that collect and sell common
pools of data of known commercial value
designed to serve a number of clients.
 Syndicated sources can be classified based
on the unit of measurement
(households/consumers or institutions).
 Household/consumer data may be obtained
from surveys, diary panels, or electronic
scanner services.
 Institutional data may be obtained from
retailers, wholesalers, or industrial firms.
A Classification of Syndicated 4-30

Services
Fig. 4.4

Unit of
Measuremen
t

Households/
Institutions
Consumers
 4-31

Syndicated Services: Consumers

Fig. 4.4 cont.
Households /
Consumers

Panels

Electronic
Purchase Media scanner services

Surveys Volume Scanner Scanner

Tracking Diary Panels Diary Panels
Data with Cable
TV
Psychograph Advertising
General
ic Evaluation
 4-32

Syndicated Services: Institutions

Fig. 4.4 cont.
Institutions

Retailers Wholesalers Industrial firms

Audits

Direct Clipping Corporate

Inquiries Services Reports
 4-33

Overview of Syndicated Services

Table 4.3
Type Characteristics Advantages Disadvantages Uses
Surveys Surveys conducted at Most flexible way of Interviewer errors; Market
regular intervals obtaining data; respondent errors segmentation,
information on advertising theme
underlying motives selection and
advertising
effectiveness
Purchase Households provide Recorded purchase Lack of Forecasting sales,
Panels specific information behavior can be representativeness; market share and
regularly over an linked to the response bias; trends; establishing
extended period of demographic/ maturation consumer profiles,
time; respondent psychographic brand loyalty and
asked to record characteristics switching; evaluating
specific behaviors as test markets,
they occur advertising, and
distribution
Media Panels Electronic devices Same as purchase Same as purchase Establishing
automatically panel panel advertising rates;
recording behavior, selecting media
supplemented by a program or air time;
diary establishing viewer
profiles
 4-34

Overview of Syndicated Services

Table 4.3
Type cont.
Characteristics A
dvantages Disadvantages
ScannerVolume H ouseholdpurchases D atareflectactual D atam aynotbe
TrackingData arerecordedthrough purchases;tim elydata, representative;errorsin
electronicscannersin lessexpensive recordingpurchases;
superm arkets difficulttolink
purchasestoelem ents
ofm arketingm ixother
thanprice
ScannerD iaryPanels Scannerpanelsof D atareflectactual D atam aynotbe
withCableT V householdsthat purchases;sam ple representative;quality
subscribetocableTV control;abilitytolink ofdatalim ited
paneldatatohousehold
characteristics
 4-35

Overview of Syndicated Services

Table 4.3
Characteristics cont.
Advantages Disadvantages Uses
V erificationofproduct R elativelyprecise C overagem aybe M easurem entof
m ovem entby inform ationatthe incom plete;m atching consum ersalesand
exam iningphysical retailandw holesale ofdataoncom petitive m arketshare,
recordsorperform ing levels activitym aybe com petitiveactivity,
inventoryanalysis difficult analyzingdistribution
patterns;trackingof
newproducts
D atabankson Im portantsourceof D ataarelackingin D eterm iningm arket
industrial inform ationon term sofcontent, potentialbygeographic
establishm entscreated industrialfirms, quantity,andquality area,definingsales
throughdirectinquiries particularlyusefulin territories,allocating
ofcom panies,clipping initialphasesofthe advertisingbudget
services,andcorporate projects
reports
 4-36

Single-Source Data
Single-source data provide integrated information on
household variables, including media consumption and
purchases, and marketing variables, such as product
sales, price, advertising, promotion, and in-store
marketing effort.

 Recruit a test panel of households and meter each home's

TV sets.
 Survey households periodically on what they read.
 Grocery purchases are tracked by UPC scanners.
 Track retail data, such as sales, advertising, and promotion.
 A Classification of Marketing Research 4-37

Data
Fig. 5.1
Marketing Research Data

Secondary Data Primary Data

Qualitative Data Quantitative Data

Descriptive Causal

Survey Observational Experiment

Data and Other al Data
 Qualitative vs. Quantitative 4-38

Research
Table 5.1

Qualitative Research Quantitative Research

Objective To gain a qualitative To quantify the data and

understanding of the generalize the results
underlying reasons and from the sample to the
motivations population of interest

Sample Small number of non- Large number of

representative cases representative cases

Data Unstructured Structured

Collection
Non-statistical Statistical
Data Analysis
Develop an initial Recommend a final
Outcome understanding course of action
 4-39
A Classification of Qualitative Research
Procedures
Fig. 5.2
Qualitative Research
Procedures

Direct (Non Indirect

disguised) (Disguised)

Projective
Depth Interviews Techniques
Focus Groups

Associatio Completio Construction Expressive

n n Techniques Technique
Technique Technique s
 4-40

Characteristics of Focus Groups

Table 5.2

Group Size 8-12

Group Composition Homogeneous, respondents,

prescreened

Physical Setting Relaxed, informal atmosphere

Time Duration 1-3 hours

Recording Use of audiocassettes and

videotapes

Moderator Observational, interpersonal, and

communication skills of the
moderator
 4-41

Key Qualifications of Focus Group Moderators

1. Kindness with firmness: The moderator must combine a

disciplined
detachment with understanding empathy so as to generate the
necessary interaction.

2. Permissiveness: The moderator must be permissive yet alert

to signs
that the group’s cordiality or purpose is disintegrating.

3. Involvement: The moderator must encourage and stimulate

intense
personal involvement.

4. Incomplete understanding: The moderator must encourage

respondents to be more specific about generalized comments
by
 4-42

Key Qualifications of Focus Group Moderators

5. Encouragement: The moderator must encourage

unresponsive
members to participate.

6. Flexibility: The moderator must be able to improvise and

alter the
planned outline amid the distractions of the group process.

7. Sensitivity: The moderator must be sensitive enough to

guide the
group discussion at an intellectual as well as emotional
level.
 4-43
Procedure for Planning and Conducting Focus
Groups
Fig. 5.3

Determine the Objectives and Define the Problem

Specify the Objectives of Qualitative

Research
State the Objectives/Questions to be Answered by Focus
Groups
Write a Screening Questionnaire

Develop a Moderator’s Outline

Conduct the Focus Group Interviews

Review Tapes and Analyze the Data

Summarize the Findings and Plan Follow-Up Research or

Action
 4-44

Variations in Focus Groups

 Two-way focus group. This allows one target group to
listen to and learn from a related group. For example, a
focus group of physicians viewed a focus group of
arthritis patients discussing the treatment they desired.

 Dual-moderator group. A focus group conducted by two

moderators: One moderator is responsible for the
smooth flow of the session, and the other ensures that
specific issues are discussed.

 Dueling-moderator group. There are two moderators,

but they deliberately take opposite positions on the
issues to be discussed.
 4-45

Variations in Focus Groups

 Respondent-moderator group. The moderator asks
selected participants to play the role of moderator
temporarily to improve group dynamics.

 Client-participant groups. Client personnel are

identified and made part of the discussion group.

 Mini groups. These groups consist of a moderator

and only 4 or 5 respondents.

 Tele-session groups. Focus group sessions by phone

using the conference call technique.

 Online Focus groups. Focus groups conducted online

over the Internet.
 4-46

Advantages of Focus Groups

1. Synergism
2. Snowballing
3. Stimulation
4. Security
5. Spontaneity
6. Serendipity (chance/fate)
7. Specialization
8. Scientific scrutiny
9. Structure
10. Speed
 4-47

Disadvantages of Focus Groups

1. Misuse
2. Misjudge
3. Moderation
4. Messy
5. Misrepresentation
Depth Interview Techniques: 4-48

Laddering
In laddering, the line of questioning proceeds from
product characteristics to user characteristics. This
technique allows the researcher to tap into the
consumer's network of meanings.

Wide body aircrafts (product characteristic)

 
I can get more work done
 
I accomplish more
 
I feel good about myself (user characteristic)
 
Advertising theme: You will feel good about yourself when flying
our airline. “You're The Boss.”
Depth Interview Techniques:
4-49

Hidden Issue Questioning

In hidden issue questioning, the focus is not on
socially shared values but rather on personal “sore
spots;” not on general lifestyles but on deeply felt
personal concerns.

fantasies, work lives, and social lives

 
historic, elite, “masculine-camaraderie,” competitive
activities

Advertising theme: communicate aggressiveness,

high status, and competitive heritage of the airline.
Depth Interview Techniques:
4-50

Symbolic Analysis
Symbolic analysis attempts to analyze the symbolic
meaning of objects by comparing them with their opposites.
The logical opposites of a product that are investigated are:
non-usage of the product, attributes of an imaginary “non-
product,” and opposite types of products.

“What would it be like if you could no longer use airplanes?”

 
“Without planes, I would have to rely on letters and long
distance calls.”
 
 
Airlines sell to the managers face-to-face communication.
 
Advertising theme: The airline will do the same thing for a
manager as Federal Express does for a package.
Definition of Projective 4-51

Techniques
 An unstructured, indirect form of questioning
that encourages respondents to project their
underlying motivations, beliefs, attitudes or
feelings regarding the issues of concern.
 In projective techniques, respondents are asked
to interpret the behavior of others.
 In interpreting the behavior of others,
respondents indirectly project their own
motivations, beliefs, attitudes, or feelings into
the situation.
 4-52

Word Association
In word association, respondents are presented with a
list of words, one at a time and asked to respond to
each with the first word that comes to mind. The words
of interest, called test words, are interspersed
throughout the list which also contains some neutral, or
filler words to disguise the purpose of the study.
Responses are analyzed by calculating:

(1) the frequency with which any word is given as a

response;
(2) the amount of time that elapses before a response
is given; and
(3) the number of respondents who do not respond at
all to a test word within a reasonable period of time.
 4-53

Word Association
EXAMPLE
STIMULUS MRS. M MRS. C
washday everyday ironing
fresh and sweet clean
pure air soiled
scrub don't; husband does clean
filth this neighborhood dirt
bubbles bath soap and water

family squabbles children

towels dirty wash
 4-54

Completion Techniques
In Sentence completion, respondents are given incomplete
sentences and asked to complete them. Generally, they are
asked to use the first word or phrase that comes to mind.

A person who shops at Sears is ______________________

 
A person who receives a gift certificate good for Sak's Fifth
Avenue would be __________________________________
 
J. C. Penney is most liked by _________________________
 
When I think of shopping in a department store, I ________

A variation of sentence completion is paragraph completion,

in which the respondent completes a paragraph beginning
with the stimulus phrase.
 4-55

Completion Techniques
In story completion, respondents are given
part of a story – enough to direct attention to a
particular topic but not to hint at the ending.
They are required to give the conclusion in
their own words.
 4-56

Construction Techniques
With a picture response, the respondents are asked
to describe a series of pictures of ordinary as well as
unusual events. The respondent's interpretation of the
pictures gives indications of that individual's
personality.
 
In cartoon tests, cartoon characters are shown in a
specific situation related to the problem. The
respondents are asked to indicate what one cartoon
character might say in response to the comments of
another character. Cartoon tests are simpler to
administer and analyze than picture response
techniques.
 4-57

A Cartoon Test
Figure 5.4

Sears

Let’s see if we
can pick up
some house
wares at Sears
 4-58

Expressive Techniques
In expressive techniques, respondents are
presented with a verbal or visual situation and
asked to relate the feelings and attitudes of other
people to the situation.

Role playing Respondents are asked to play

the role or assume the behavior of someone else.

Third-person technique The respondent is

presented with a verbal or visual situation and the
respondent is asked to relate the beliefs and
attitudes of a third person rather than directly
expressing personal beliefs and attitudes. This
third person may be a friend, neighbor, colleague,
or a “typical” person.
Advantages of Projective 4-59

Techniques
 They may elicit responses that subjects
would be unwilling or unable to give if
they knew the purpose of the study.

 Helpful when the issues to be addressed

are personal, sensitive, or subject to
strong social norms.

 Helpful when underlying motivations,

beliefs, and attitudes are operating at a
subconscious level.
Disadvantages of Projective 4-60

Techniques
 Suffer from many of the disadvantages of
unstructured direct techniques, but to a
greater extent.
 Require highly trained interviewers.
 Skilled interpreters are also required to
analyze the responses.
 There is a serious risk of interpretation
bias.
 They tend to be expensive.
 May require respondents to engage in
unusual behavior.
Guidelines for Using Projective 4-61

Techniques
 Projective techniques should be used
because the required information
cannot be accurately obtained by direct
methods.
 Projective techniques should be used
for exploratory research to gain initial
insights and understanding.
 Given their complexity, projective
techniques should not be used naively.
 4-62
Comparison of Focus Groups, Depth Interviews,
and Projective Techniques
Table 5.3

Criteria Focus Depth Projective

Groups Interviews Techniques
1. Degree of Structure Relatively high Relatively Relatively low
2. Probing of individual Low medium Medium
respondents High
3. Moderator bias Relatively Low to high
4. Interpretation bias medium Relatively high Relatively high
5. Uncovering Relatively low High
subconscious Low Relatively
information medium Medium
6. Discovering to high Low
innovative High
information High
7. Obtaining sensitive Low Medium
information Yes
8. Involve unusual No
behavior or Medium Somewhat
questioning Highly useful useful
Advantages of Online Focus 4-63

Groups
 Geographical constraints are removed and
time constraints are lessened.

 Unique opportunity to re-contact group

participants at a later date.

 Can recruit people not interested in traditional

focus groups: doctors, lawyers, etc.

 Moderators can carry on side conversations

with individual respondents.

 There is no travel, video taping, or facilities to

arrange; so the cost is much lower.
Disadvantages of Online Focus 4-64

Groups

 Only people that have access to the Internet

can participate.

 Verifying that a respondent is a member of a

target group is difficult.

 There is lack of general control over the

respondent's environment.

 Only audio and visual stimuli can be tested.

Products can not be touched (e.g., clothing) or
smelled (e.g., perfumes).
 A Classification of Survey 4-65

Methods
Fig. 6.1
Survey
Methods

Telephone Personal Mail Electronic

In-Home Mall Computer- Internet

E-mail
Intercept Assisted Personal
Interviewing

Traditional Computer-
Mail Mail
Telephone Assisted
Interview Panel
Telephone
Interviewing
 4-66
Some Decisions Related to the Mail Interview
Package
Table 6.1

Outgoing Envelope
Outgoing envelope: size, color, return address
Postage Method of addressing
Cover Letter
Sponsorship Type of appeal Postscript
Personalization Signature
Questionnaire
Length Size Layout Format
Content Reproduction Color Respondent
anonymity
Return Envelope
Type of envelope Postage
Incentives
Monetary versus non-monetary Prepaid versus promised
amount
 4-67

Sample Mailing Lists

List Title Number on List

Price

Advertising agencies 3892

$45/M
Banks, branches 11089 $85/M
Boat owners 4289601 $50/M
Chambers of Commerce 6559
$45/M
Personal computer owners 2218672 Inquire
Families 76000000
Inquire
Hardware wholesalers 7378
$45/M
Magazines, consumers 4119
$45/M
Photographic, portrait 33742
Criteria for Evaluating Survey 4-68

Methods
Flexibility of Data Collection
 The flexibility of data collection is determined primarily

by the extent to which the respondent can interact with

the interviewer and the survey questionnaire.
 
Diversity of Questions
 The diversity of questions that can be asked in a survey

depends upon the degree of interaction the respondent

has with the interviewer and the questionnaire, as well
as the ability to actually see the questions.
 
Use of Physical Stimuli
 The ability to use physical stimuli such as the product, a

product prototype, commercials, or promotional

displays during the interview.
 
Criteria for Evaluating Survey 4-69

Methods
Sample Control
 Sample control is the ability of the survey mode to reach the
units specified in the sample effectively and efficiently.

Control of the Data Collection Environment

 The degree of control a researcher has over the environment
in which the respondent answers the questionnaire.
 
Control of Field Force
 The ability to control the interviewers and supervisors
involved in data collection.
 
Quantity of Data
 The ability to collect large amounts of data.
 
 4-70

Random Digit Directory Designs

Fig. 6.2
Adding a Constant to the Last Digit
An integer between 1 and 9 is added to the telephone
number selected from the directory. In plus-one
sampling, the number added to the last digit is 1.
Number selected from directory: 404-953-3004
(exchange-block). Add one to the last digit to form 404-
953-3005. This is the number to be included in the
sample.

Randomizing the r Last Digits

Replace the r (r = 2, 3, or 4) last digits with an equal
number of randomly selected digits.
Number selected from directory: 404-881-1124.
Replace the last four digits of the block with randomly
 4-71

Random Digit Directory Designs

Fig. 6.2

Two-Stage Procedure
The first stage consists of selecting an exchange and
telephone number from the directory. In the second stage,
the last three digits of the selected number are replaced
with a three-digit random number between 000 and 999.

Cluster 1
Selected exchange: 636
Selected number: 404-636-3230
Replace the last three digits (230) with randomly selected
389 to form 404-636-3389.
Repeat this process until the desired number of telephone
numbers from this cluster is obtained.
Criteria for Evaluating Survey 4-72

Methods
Response Rate
 Survey response rate is broadly defined as the percentage
of the total attempted interviews that are completed.

Perceived Anonymity
 Perceived anonymity refers to the respondents'
perceptions that their identities will not be discerned by
the interviewer or the researcher.
 
Social Desirability/Sensitive Information
 Social desirability is the tendency of the respondents to
give answers that are socially acceptable, whether or not
they are true.
Criteria for Evaluating Survey 4-73

Methods
Potential for Interviewer Bias
 The extent of the interviewer's role determines

the potential for bias.

Speed
 The total time taken for administering the

survey to the entire sample.

Cost
 The total cost of administering the survey and

collecting the data.

 A Comparative Evaluation of Survey
4-74

Methods
Table 6.2
Mall-
Criteria Phone/ In-Home Intercept Mail Mail
CATI Interviews Interviews CAPI Surveys Panels E-Mail Internet

Flexibility of data Moderate High High Moderate Low Low Low Moderate
collection to high to high to high
Diversity of questions Low High High High Moderate Moderate Moderate Moderate
to high
Use of physical stimuli Low Moderate High High Moderate Moderate Low Moderate
to high
Sample control Moderate Potentially Moderate Moderate Low Moderate Low Low to
to high high to high moderate
Control of data collection Moderate Moderate High High Low Low Low Low
environment to high
Control of field force Moderate Low Moderate Moderate High High High High
Quantity of data Low High Moderate Moderate Moderate High Moderate Moderate
Response rate Moderate High High High Low Moderate Low Very
Low
Perceived anonymity of Moderate Low Low Low High High Moderate High
the respondent
Social desirability Moderate High High Moderate Low Low Moderate Low
to High
Obtaining sensitive High Low Low Low to High Moderate Moderate High
information moderate to High
Potential for interviewer Moderate High High Low None None None None
bias
Speed High Moderate Moderate Moderate Low Low to High Very
to high to high moderate high
Cost Moderate High Moderate Moderate Low Low to Low Low
to high to high moderate
Structured versus Unstructured
4-75

Observation

 
 For structured observation, the
researcher specifies in detail what is to be
observed and how the measurements are
to be recorded, e.g., an auditor performing
inventory analysis in a store.

 In unstructured observation, the

observer monitors all aspects of the
phenomenon that seem relevant to the
problem at hand, e.g., observing children
playing with new toys.
Observation Methods
4-76

Disguised versus Undisguised Observation

 In disguised observation, the

respondents are unaware that they are
being observed. Disguise may be
accomplished by using one-way mirrors,
hidden cameras, or inconspicuous
mechanical devices. Observers may be
disguised as shoppers or sales clerks.

 In undisguised observation, the

respondents are aware that they are
under observation.
Observation Methods
4-77

Natural versus Contrived Observation

 Natural observation involves observing

behavior as it takes places in the
environment. For example, one could
observe the behavior of respondents eating
fast food in Burger King.

 In contrived observation, respondents'

behavior is observed in an artificial
environment, such as a test kitchen.
 A Classification of Observation 4-78

Methods
Fig. 6.3

Classifying
Observation
Methods

Observation Methods

Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis
Observation Methods
4-79

Personal Observation

 A researcher observes actual

behavior as it occurs.
 The observer does not attempt to
manipulate the phenomenon being
observed but merely records what
takes place.
 For example, a researcher might
record traffic counts and observe
traffic flows in a department store.
Observation Methods
4-80

Mechanical Observation
Do not require respondents' direct participation.
 the AC Nielsen audimeter

 turnstiles that record the number of people

entering or leaving a building.

 On-site cameras (still, motion picture, or video)

 Optical scanners in supermarkets

Do require respondent involvement.

 eye-tracking monitors(record the gaze of the eye)

 Pupilometers (measure the change in diameter of the pupils of the respondents eye)

 Psychogalvanometers (or galvanic skin response GSR)

 voice pitch analyzers

 devices measuring response latency

Observation Methods
4-81

Audit
 The researcher collects data by
examining physical records or
performing inventory analysis.
 Data are collected personally by the
researcher.
 The data are based upon counts, usually
of physical objects.
 Retail and wholesale audits conducted
by marketing research suppliers were
discussed in the context of syndicated
data in Chapter 4
Observation Methods
4-82

Content Analysis
 The objective, systematic, and quantitative
description of the manifest content of a
communication.
 The unit of analysis may be words, characters
(individuals or objects), themes (propositions),
space and time measures (length or duration of
the message), or topics (subject of the
message).
 Analytical categories for classifying the units
are developed and the communication is
broken down according to prescribed rules.
Observation Methods
4-83

Trace Analysis
Data collection is based on physical traces, or evidence, of past
behavior.

 The selective erosion of tiles in a museum indexed by the

replacement rate was used to determine the relative popularity of
exhibits.
 The number of different fingerprints on a page was used to gauge
the readership of various advertisements in a magazine.
 The position of the radio dials in cars brought in for service was
used to estimate share of listening audience of various radio
stations.
 The age and condition of cars in a parking lot were used to assess
the affluence of customers.
 The magazines people donated to charity were used to determine
people's favorite magazines.
 Internet visitors leave traces which can be analyzed to examine
browsing and usage behavior by using cookies.
 4-84
A Comparative Evaluation of Observation
Methods
Table 6.3

Criteria Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis Analysis

Degree of structure Low Low to high High High Medium

Degree of disguise Medium Low to high Low High High
Ability to observe High Low to high High Medium Low
in natural setting
Observation bias High Low Low Medium Medium
Analysis Bias High Low to Low Low Medium
Medium
General remarks Most Can be Expensive Limited to Method of
flexible intrusive commu- last resort
nications
Relative Advantages of 4-85

Observation
 They permit measurement of actual
behavior rather than reports of intended or
preferred behavior.
 There is no reporting bias, and potential
bias caused by the interviewer and the
interviewing process is eliminated or
reduced.
 Certain types of data can be collected only
by observation.
 If the observed phenomenon occurs
frequently or is of short duration,
observational methods may be cheaper
and faster than survey methods.
Relative Disadvantages of 4-86

Observation
 The reasons for the observed behavior may not be
determined since little is known about the underlying
motives, beliefs, attitudes, and preferences.
 Selective perception (bias in the researcher's
perception) can bias the data.
 Observational data are often time-consuming and
expensive, and it is difficult to observe certain forms of
behavior.
 In some cases, the use of observational methods may
be unethical, as in observing people without their
knowledge or consent.

It is best to view observation as a complement to

survey methods, rather than as being in competition
with them.
 Methods for International Marketing
4-87

Research
Table 6.4
Criteria Telephone Personal Mail Electronic
High sample control + + - -
Difficulty in locating + - + +
respondents at home
Inaccessibility of homes + - + +
Unavailability of a large + - + +
pool of trained interviewers
Large population in rural areas - + - -
Unavailability of maps + - + +
Unavailability of current - + - +
telephone directory
Unavailability of mailing lists + + - +
Low penetration of telephones - + + -
Lack of an efficient postal system + + - +
Low level of literacy - + - -
Face-to-face communication culture - + - -
Poor access to computers & Internet ? + ? -
Note: A (+) denotes an advantage, and a (–) denotes a disadvantage.
 The NYT on the Web: A New Way
4-88

To Target Customers

To handle alternate forms of interaction and

updates, The New York Times created a separate
unit, The New York Times Electronic Media Co. The
New York Times on the Web (www.nytimes.com)
has drawn over 10 million registrants as of 2003.
The database contains demographic information,
such as age, gender, income, and zip code, that ties
to an e-mail address for each of the members. This
new database marketing system can identify and
customize user groups, target Web messages to
specific segments of the population, and adjust the
message based on audience reaction. It can also
increase targeting opportunities through third-party
data or additional information supplied by the user.
 4-89

Concept of Causality
A statement such as "X causes Y " will have the
following meaning to an ordinary person and to a
scientist.

____________________________________________________
Ordinary Meaning Scientific Meaning
____________________________________________________
X is the only cause of Y. X is only one of a number of
possible causes of Y.

X must always lead to Y The occurrence of X makes the

(X is a deterministic occurrence of Y more probable
cause of Y). (X is a probabilistic cause of Y).
 
It is possible to prove We can never prove that X is a
that X is a cause of Y. cause of Y. At best, we can
infer that X is a cause of Y.
____________________________________________________
 4-90

Conditions for Causality

 Concomitant variation is the extent to which a cause, X, and an
effect, Y, occur together or vary together in the way predicted by the
hypothesis under consideration. (for eg. In qualitative case, the
management of a department store believes that sales are highly
dependent upon the quality of in-store service.)(For a quantitative
eg. Purchase of Fashion clothing and Education Level)
 The time order of occurrence condition states that the causing
event must occur either before or simultaneously with the effect; it
cannot occur afterwards.(Customers who shop frequently in a
department store are more likely to have the charge or credit card
for that store. Also customers who have the charge card for a
department store are likely to shop there frequently.)
 The absence of other possible causal factors means that the
factor or variable being investigated should be the only possible
causal explanation.(In store service may be a cause of sales if we
can be sure that changes in all other factors affecting sales, such as
pricing, advertising, level of distribution, product quality, competition
etc., were held constant or otherwise controlled)
 4-91
Evidence of Concomitant Variation between
Purchase of Fashion Clothing and Education
Table
7.1
Purchase of Fashion Clothing, Y

High Low
Education, X

High 363 (73%) 137 (27%) 500 (100%)

Low 322 (64%) 178 (36%) 500 (100%)

 Purchase of Fashion Clothing By
4-92

Income and Education

Low Income High Income

Purchase Purchase

High Low High Low

Education

Education
High 122 (61%) 78 (39%) 200 (100%) High 241 (80%) 59 (20%) 300

171 (57%) 129 (43%) 300 (100%) Low 151 (76%) 49 (24%) 200
Low
 4-93

Definitions and Concepts

 Independent variables are variables or alternatives that
are manipulated and whose effects are measured and
compared. These variables are also called treatments e.g.,
price levels, package designs and advertisement themes.
 Test units are individuals, organizations, or other entities
whose response to the independent variables or
treatments is being examined, e.g., consumers or stores.
 Dependent variables are the variables which measure
the effect of the independent variables on the test units,
e.g., sales, profits, and market shares.
 Extraneous variables are all variables other than the
independent variables that affect the response of the test
units, e.g., store size, store location, and competitive effort.
 Experiment is the process of manipulating one or more
independent variables and measuring their effect on one or
more dependent variables, while controlling for the
extraneous variables.
 4-94

Experimental Design
An experimental design is a set of
procedures specifying

 the test units and how these units are to

be divided into homogeneous
subsamples,
 what independent variables or
treatments are to be manipulated,
 what dependent variables are to be
measured, and
 how the extraneous variables are to be
controlled.
 4-95

Validity in Experimentation
 Internal validity refers to whether the
manipulation of the independent variables or
treatments actually caused the observed
effects on the dependent variables. Control
of extraneous variables is a necessary
condition for establishing internal validity.
 External validity refers to whether the
cause-and-effect relationships found in the
experiment can be generalized. To what
populations, settings, times, independent
variables and dependent variables can the
results be projected?
 4-96

Extraneous Variables
 History refers to specific events that are external to
the experiment but occur at the same time as the
experiment. (The longer the time interval between
observations, the greater the possibility that history will
confound an experiment of this type.)
 Maturation (MA) refers to changes in the test units
themselves that occur with the passage of time.
( Maturation takes place when people become older,
more experienced, tired, bored, or uninterested)
 Testing effects are caused by the process of
experimentation. Typically, these are the effects on the
experiment of taking a measure on the dependent
variable before and after the presentation of the
treatment.
 The main testing effect (MT) occurs when a prior
observation affects a latter observation.(Post Treatment
attitude for product may be affected by the pre
treatment when the advertisement was shown)
 4-97

Extraneous Variables
 In the interactive testing effect (IT), a prior measurement
affects the test unit's response to the independent variable.(
after seeing the adv. when people are asked to indicate their
attitudes toward a brand, they become sensitized to that
brand and become more likely to pay attention to the test
commercial than people who were not included in the
experiment.
 Instrumentation (I) refers to changes in the measuring
instrument, in the observers or in the scores themselves.
 Statistical regression effects (SR) occur when test units
with extreme scores move closer to the average score
during the course of the experiment.
 Selection bias (SB) refers to the improper assignment of
test units to treatment conditions.
 Mortality (MO) refers to the loss of test units while the
experiment is in progress.
 4-98

Controlling Extraneous Variables

 Randomization refers to the random assignment of
test units to experimental groups by using random
numbers. Treatment conditions are also randomly
assigned to experimental groups.
 Matching involves comparing test units on a set of key
background variables before assigning them to the
treatment conditions.
 Statistical control involves measuring the extraneous
variables and adjusting for their effects through
statistical analysis.
 Design control involves the use of experiments
designed to control specific extraneous variables.
A Classification of Experimental 4-99

Designs
 Pre-experimental designs do not
employ randomization procedures to
control for extraneous factors: the one-
shot case study, the one-group pretest-
posttest design, and the static-group.
 In true experimental designs, the
researcher can randomly assign test
units to experimental groups and
treatments to experimental groups: the
pretest-posttest control group design,
the posttest-only control group design,
and the Solomon four-group design.
A Classification of Experimental 4-100

Designs
 Quasi-experimental designs result
when the researcher is unable to achieve
full manipulation of scheduling or
allocation of treatments to test units but
can still apply part of the apparatus of
true experimentation: time series and
multiple time series designs.
 A statistical design is a series of basic
experiments that allows for statistical
control and analysis of external variables:
randomized block design, Latin square
design, and factorial designs.
 A Classification of Experimental 4-101

Designs
Figure 7.1

Experimental Designs

Pre-experimental True Quasi Statistical

Experiment Experimental
al
One-Shot Pretest-Posttest Time Series Randomize
Case Study Control Group d Blocks

One Group Posttest: Only Multiple Latin

Pretest- Control Group Time Series Square
Posttest
Solomon Four-
Static Group Group Factorial
Design
 4-102

One-Shot Case Study

X 01

 A single group of test units is exposed to a

treatment X.
 A single measurement on the dependent
variable is taken (01).
 There is no random assignment of test
units.
 The one-shot case study is more
appropriate for exploratory than for
conclusive research.
One-Group Pretest-Posttest 4-103

Design
01 X 02

 A group of test units is measured twice.

 There is no control group.
 The treatment effect is computed as
02 – 01.
 The validity of this conclusion is
questionable since extraneous variables
are largely uncontrolled.
 4-104

Static Group Design

EG: X 01
CG: 02

 A two-group experimental design.

 The experimental group (EG) is exposed to
the treatment, and the control group (CG) is
not.
 Measurements on both groups are made only
after the treatment.
 Test units are not assigned at random.
 The treatment effect would be measured as
01 - 02.
True Experimental Designs:
4-105

Pretest-Posttest Control Group Design

EG: R 01 X 02
CG: R 03 04

 Test units are randomly assigned to either the experimental or

the control group.
 A pretreatment measure is taken on each group.
 The treatment effect (TE) is measured as:(02 - 01) - (04 - 03).
 Selection bias is eliminated by randomization.
 The other extraneous effects are controlled as follows:
02 – 01= TE + H + MA + MT + IT + I + SR + MO
04 – 03= H + MA + MT + I + SR + MO
= EV (Extraneous Variables)
 The experimental result is obtained by:
(02 - 01) - (04 - 03) = TE + IT
 Interactive testing effect is not controlled.
Posttest-Only Control Group 4-106

Design
EG : R X 01
CG : R 02

 The treatment effect is obtained by

TE = 01 - 02
 Except for pre-measurement, the
implementation of this design is
very similar to that of the pretest-
posttest control group design.
Quasi-Experimental Designs:
4-107

Time Series Design

01 02 03 04 05 X 06 07 08 09 010

 There is no randomization of test

units to treatments.
 The timing of treatment
presentation, as well as which test
units are exposed to the
treatment, may not be within the
researcher's control.
 4-108

Multiple Time Series Design

EG : 01 02 03 04 05 X 06 07 08 09 010
CG : 01 02 03 04 05 06 07 08 09 010

 If the control group is carefully

selected, this design can be an
improvement over the simple time
series experiment.
 Can test the treatment effect twice:
against the pretreatment
measurements in the experimental
group and against the control group.
 4-109

Statistical Designs
Statistical designs consist of a series of basic
experiments that allow for statistical control and
analysis of external variables and offer the following
advantages:

 The effects of more than one independent variable

can be measured.
 Specific extraneous variables can be statistically
controlled.
 Economical designs can be formulated when each
test unit is measured more than once.

The most common statistical designs are the

randomized block design, the Latin square design, and
the factorial design.
 4-110

Randomized Block Design

 Is useful when there is only one major
external variable, such as store size,
that might influence the dependent
variable.
 The test units are blocked, or grouped,
on the basis of the external variable.
 By blocking, the researcher ensures
that the various experimental and
control groups are matched closely on
the external variable.
 4-111

Randomized Block Design

Table 7.4

Treatment Groups
Block Store Commercial Commercial
Commercial
Number Patronage A B C

1 Heavy A B C
2 Medium A B C
3 Low A B C
4 None A B C
 4-112

Latin Square Design

 Allows the researcher to statistically control two
noninteracting external variables as well as to manipulate
the independent variable.
 Each external or blocking variable is divided into an equal
number of blocks, or levels.
 The independent variable is also divided into the same
number of levels.
 A Latin square is conceptualized as a table (see Table 7.5),
with the rows and columns representing the blocks in the
two external variables.
 The levels of the independent variable are assigned to the
cells in the table.
 The assignment rule is that each level of the independent
variable should appear only once in each row and each
column, as shown in Table 7.5.
 4-113

Latin Square Design

Table 7.5

Interest in the Store

Store Patronage High Medium

Low

Heavy B A C
Medium C B
A
Low and none A C
B
 4-114

Factorial Design
 Is used to measure the effects of two
or more independent variables at
various levels.
 A factorial design may also be
conceptualized as a table.
 In a two-factor design, each level of
one variable represents a row and
each level of another variable
represents a column.
 4-115

Factorial Design
Table 7.6

Amount of Humor
Amount of Store No Medium High
Information Humor Humor Humor

Low A B C
Medium D E F
High G H I
 Laboratory versus Field 4-116

Experiments
Table 7.7

Factor Laboratory Field

Environment Artificial Realistic

Control High Low
Reactive Error High Low
Demand Artifacts High Low
Internal Validity High Low
External Validity Low High
Time Short Long
Number of Units Small Large
Ease of Implementation High Low
Cost Low
High
 4-117

Limitations of Experimentation
 Experiments can be time consuming, particularly if the
researcher is interested in measuring the long-term
effects.
 Experiments are often expensive. The requirements of
experimental group, control group, and multiple
measurements significantly add to the cost of research.
 Experiments can be difficult to administer. It may be
impossible to control for the effects of the extraneous
variables, particularly in a field environment.
 Competitors may deliberately contaminate the results of
a field experiment.
 Selecting a Test-Marketing 4-118

Strategy
Competition

Very +ve New Product Development

Socio-Cultural Environment

-ve

Need for Secrecy

Research on Existing Products
Other Factors

Stop and Reevaluate

Research on other Elements

Very +ve -ve

Simulated Test Marketing
Other Factors
Very +ve -ve
Controlled Test Marketing
Other Factors
-ve
Standard Test Marketing

National Introduction

Overall Marketing Strategy

 Criteria for the Selection of Test 4-119

Markets

Test Markets should have the following qualities:

1) Be large enough to produce meaningful projections. They
should contain at least 2% of the potential
actual population.
2) Be representative demographically.
3) Be representative with respect to product consumption
behavior.
4) Be representative with respect to media usage.
5) Be representative with respect to competition.
6) Be relatively isolated in terms of media and physical
distribution.
7) Have normal historical development in the product class
8) Have marketing research and auditing services available
 The NYT on the Web: A New Way
4-120

To Target Customers

For example, the database enables an automobile

firm to emphasize safety to older customers, luxury
to affluent ones, and roominess to families. The
system is set up so that near real-time data can be
received from the Web that indicates how well ads
are performing relative to age, gender, and income
characteristics. Thus, this system allows a firm to
maintain up-to-date information on audiences in
order to position its products effectively.
 A Classification of International 4-121

Sources
Fig. 4.5

International Secondary Data

Domestic International Organizations in

Organizations in Organizations in Foreign Countries
the United States the United
States

Governme Nongovernment International Trade

Governments Organizations Associatio
nt Sources Sources
ns
4-122