research methodology
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Research Methodology
RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT
Definition of Marketing Research: “ Systematic
design, collection, record, analysis and reporting of data for
aid in making business decisions.”
Literally Research means to “search again”. It connotes
scientific investigation wherein the researcher takes another,
more careful look at the data to discover all that can be known
about the subject of study
If information generated or data collected and analyzed are to
be accurate, researcher must have an objective, without
engaging in a biased attempt to prove preconceived ideas.
Objective is to facilitate the managerial decision making process
for all aspect of business: Finance, Marketing, Personal and so
on.
1suresh
Research Methodology
RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
Information for
marketing decisions
Marketing
Strategy
Marketing Plan
LEVEL 1(Strategic)
LEVEL 2(Tactical)
Segmentati
on
Targeting
Positioning
Product
Price
Promotion
Place
2suresh
Research Methodology
RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
Market & Sales Research
Who constitute
s the buyers ?
Why do some
people buy and
some don’t?
From which
outlet are the
product bought ?
What are the
market share of
the respective
brands?
Product Research
What drives a
consumer to buy a brand ?
Which alternati
ve packaging is most preferred
?
What features /attributes of product
is important
3suresh
Research Methodology
RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
Price Research
What are the
responses to various
price levels ?
To what extent is
sales affected by
price?
What pricing policy should be adopted
for new product
introduction ?
Promotion(Advertising) Research
Which is the most
effective advertising
mix ?
What product features
should be emphasized ?
What advertising
theme, appeal,
slogan to use ?
How successful
are discounts coupons,
lucky draws ?
4suresh
Research Methodology
RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
Place (Distribution) Research
What channels should be
used ?
What type of stores
display the product and
in what quantity?
Where and what volumes
should the product be stocked ?
Research Methodology
RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
Four stages of decision making process:
I. Identifying problems or Opportunities: Organization must
determine where it wants to go and how it will get there.
E.g.: Develop package for a new brand
Increase the amount of repeat purchasing
Allocate advertising budget geographically.
II. Diagnosing and assessing problems or opportunities: Manager
need to gain insights about the underlying factors causing the
situation
III. Selecting and implementing a course of action: Research is
often conducted to obtain specific information that will aid in
evaluating the alternatives and in selecting the best course of
action
6suresh
Research Methodology
RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
IV. Evaluating the course of action: Objective measurement and
the appraisal of extent to which a given activity, project or
program has achieved its objective
7suresh
Research Methodology
RELEVANCE & SCOPE OF RESEARCH IN MANAGEMENT …contd
Determining when Research should be conducted:
Is sufficient time
available before
managerial decision must be made ?
YES
Is the information already on
hand, inadequate for making
the decision ?
YES
Is the decision of
considerable strategic or
tactical importance
?
YES
Does the value of the
research information exceed the
cost of conducting Research ?
NO
Conduct
Research
NO
NO
NO
YES
Research should not be conducted
Time Constraint Availability of Data Nature of decision Benefit v/s cost
8suresh
Research Methodology
STEPS INVOLVED IN THE RESEARCH PROCESS
Decision making: Process of resolving a problem or choosing among alternative
opportunities . Decision making situation ranges from complete certainty to
absolute ambiguity
Complete Certainty Uncertainty Absolute Ambiguity
Decision
maker has all
the information
and exact
nature of
business
problem.
Research may
not be needed
at all.
Information
about
alternatives is
incomplete
Research has to
be done.
Business
problem is
unclear
Research may
be a waste of
time, however
can be
attractive for
decision
makers9suresh
Research Methodology
STEPS INVOLVED IN THE RESEARCH PROCESS …contd
Problem discovery
Selection of exploratory
research technique
Secondary (historical
data)Pilot study
Experience survey Case study
Problem definition (statement of research
objective)
Selection of basic
research method
Survey ExperimentSecondary data study Observation
Problem discovery and definition
Planning the research design
10suresh
Research Methodology
STEPS INVOLVED IN THE RESEARCH PROCESS …contd
Selection of sample design
Probability sampling
Nonprobability sampling
Sampling
Collection of data
(fieldwork)
Editing and coding data
Data processing
and analysis
Interpretation of findings
Report
Data gathering
Data processing and analysis
Drawing conclusion and preparing report
11suresh
Research Methodology
“The formulation of a problem is often more essential than its solution” - Albert Einstein
Develop package for a new product
Evaluate effectiveness of alternate package design
Allocate advertising budget geographically
Determine current level of market penetration in the respective areas
Introduce new productDesign a test market to assess the likely acceptance of the new product
Adopt pricing strategy for a new product
Assess the potential levels of demand associated with various price levels
Problem discovery
Problem definition
(statement of research
objective) G
enera
l st
ate
ment
Speci
fica
lly
iden
tifi
ed
12suresh
Research Methodology
RESEARCH DESIGN
QualitativeResearch
QuantitativeResearch
Focus of research
not on numbers but
on words and
observations
Exploratory Research
Descriptive Research
Causal Research
Determines the
extent of some
phenomena in form
of numbers
Conducted during initial
stage of research process
Clarifies the thought
about research problem
Eg. What are the10 most
important variable
consumers use to decide
while buying TV?
(ABSOLUTE AMBIGUITY)
Describes characteristics
a population
Determines the answers
to who, what, when,
where and how kind of
questions
Helps in segment and
target the market.
Eg. What are the ratings
given to variables? Who
gave the ratings? Where
(which zone/state) rating
was given?
(UNCERTAINTY)
Identifies cause-and-
effect relationship
among variables. Eg:
Influence of price,
packaging, advertising
on sales.
Exploratory and
Descriptive research
normally precede
Causal research
Eg. Will buyer purchase
TV if a variable/feature
incorporated in it?
(COMPLETE CERTAINTY)
* Degree of uncertainty of a research problem determines the research methodology13suresh
Research Design
Research Methodology
Selection of exploratory
research technique
Secondary (historical
data)
14suresh
Data gathered and recorded by someone else prior to the current needs of the
researcher. Secondary data are usually historical.
Objective for Secondary data:
Fact Finding: Eg. Sales, Market share of a product.
Population, age, gender (Census data)
Model Building: Specifying relationship between two or more variables.
Eg. Used to estimate growth, inflation for financial research
Used to calculate market potential (population X per capita income)
Research Methodology
Selection of exploratory
research technique
Secondary (historical
data)
15suresh
Classification of Secondary data:
Internal and Proprietary data: E.g.. Purchase/sales volume of products for a Shopping Mall
Books and Periodicals: E.g.. Journal of Marketing research, Business week, Financial Analyst journal
Government Sources: E.g.. Census Data (No. of members in family, gender, age etc). Economic data series like GDP, balance of Payment
Regional Publications: E.g.. Publications generated by different banks
Metro political planning agencies of the city provides about population, economies, transportation
…contd
Research Methodology
Selection of exploratory
research technique
Secondary (historical
data)
16suresh
Classification of Secondary data:
Media Sources: E.g.. TV channel viewership data
Market Share data: Retail sales volume data based on product movement.
Consumer attitude and public opinion research: Syndicated service for report findings from attitude research and opinion poll
Stock Market sources: E.g.. Reports provided by BSE, NSE,
moneycontrol.com,
…contd
Research Methodology
Selection of exploratory
research technique
Pilot study
17suresh
Pilot study generates primary data usually for qualitative analysis. It serve as a
guide for the larger study. Include focus group interviews, projective techniques and depth
interviews Focus Group Interview (FGD):
Research Methodology
Selection of exploratory
research technique
Pilot study
18suresh
Focus Group Interview (FGD):
Moderator (interviewer) and 6-10 participants.
Participants meet at a central location.
Moderator introduces the topic and encourages the group
members to discuss.
Often used for concept and refinement . (E.g.. New name or attribute for a product)
Videoconferenced focus group allows managers to send messages
to moderator
Quickly analyzed and less expensive, however small discussion group will rarely be representative sample.
…contd
Research Methodology
Selection of exploratory
research technique
Pilot study
19suresh
Projective Techniques: Questioning that enable to “project” belief and feeling of a person onto a third party, which otherwise is not expressed. Objective is to discover an individual’s attitude, motivation.
Word Association: Frequently used in testing potential brand
names.
Sentence Completion: Respondents are required to complete a number of partial statements. E.g.:
I. High salary will help me purchasing ___________________
II. Brand A is better than B because_____________________
…contd
Research Methodology
Selection of exploratory
research technique
Pilot study
20suresh
Third-Person Techniques:
Respondents are asked why a third person (e.g. a neighbor) does what he does or thinks what he thinks about a brand, company or a concept. (Providing a mask is a basic idea)
Thematic Apperception Test (TAT): Consist of pictures or cartoon in which the Research topic is centre of attention
…contd
Research Methodology
Selection of exploratory
research technique
Pilot study
22suresh
…contd II. Or respondent to construct a story looking at series of
pictures with continuity
Research Methodology
Selection of exploratory
research technique
Pilot study
23suresh
Depth interview:
Interview is extensive, unstructured and undisguised (not direct
questions).
Most of the questions are open ended
Respondent is free to respond the way he/she likes
Interpretation of such data is highly subjective
…contd
Research Methodology
Selection of exploratory
research technique
Experience survey
24suresh
Issues and ideas are discussed with those having experience in subject on which Research is being done.
Interview is done with small no. of knowledgeable people.
The purpose is to help formulate the problem and clarify the
concept.
Exploratory information from an Experience survey is not expected to be conclusive.
Research Methodology
Selection of exploratory
research technique
Case study
25suresh
Purpose is to obtain information from one or a few situation that are similar to researcher’s problem situation.
Research Methodology
Selection of descriptive/
causal research
Survey
26suresh
Defined as a method of gathering primary data based on communication with
representative sample. Most surveys are descriptive but they can be also be designed to
provide causal explanation
Ways to carry out a Survey:
Door-to-Door Personal Interview: Personal interview conducted at the respondents home or the place of business
Mall Intercept Personal Interview: Personal interview conducted in shopping malls
Telephone Interviews: Contacting respondents by telephone to gather responses to survey questions.
Mail Survey: A self-administered questionnaire sent through the mail to
respondent.
Internet Survey: A self-administered questionnaire posted on a web site
Research Methodology
Selection of descriptive/
causal research
Survey
27suresh
Speed of data collection
Respondent cooperation
Questionnaire length
Possibility of respondent misunderstanding
Degree of interviewer influence on ans.
Cost
Door to Door PI
Mall Intercep
t PI
Telephone
Interview
Mail Survey
Interview
Survey
Moderate Fast Very Fast Slow Instantaneous
ExcellentModerate
to LowGood Moderate Varies
LongModerate
to longModerate Varies Moderate
Low Low Average High High
High High Moderate None None
HighestModerate to high
Low to moderate
Lowest Low
Research Methodology
Selection of descriptive/
causal research
Survey
28suresh
Cross Sectional Studies
Longitudinal Studies
Classification of Survey on
Temporal Basis
Data collected at a
single point in time.
Various segments of
population are sampled.
Relationship among
variables are
investigated by cross
tabulation (Profiling).
Eg. Ad Hoc studies,
Usage
and Attitude (U & A)
studies.
Respondents are
questioned at
different moments in
time
Similar group of
people are expected
to be in each sample.
Done usually through
a panel
Eg. Consumer panel
study,
Retail panel study
Research Methodology
Selection of descriptive/
causal research
Observation
29suresh
Business Researchers can observe people, objects, events or other phenomena by
assigning the task to human observer or by using machines designed for specific
observation tasks.
Research Methodology
Selection of descriptive/
causal research
Observation
30suresh
Physical patternsFootfall recorded in a shopping mall on weekend
Verbal and pectoral recordNumber of illustrations in a text book
Expressive behaviorFacial expression, tone of voice while seeing demo of a consumer durable
Temporal patternsTime taken to complete a task
Verbal behaviorCommunication of an employee with subordinates and boss
Human behavior or actionSelection of products from a shelf
Research Methodology
Selection of descriptive/
causal research
Observation
31suresh
Mechanical Observation:
Television Monitoring: Eg. ‘PeopleMeter’ used to obtain ratings of
television program.
Monitoring website traffic: Recording no. of people visiting a
particular website
Measuring physiological reactions: Eg:
Eye tracking monitor: Measures unconscious eye movement, used in
recording the pattern of a hoarding or print ad being noticed
Voice Pitch analysis: Measures emotional reaction as reflected in
physiological changes in persons voice
Optical scanner and bar codes: Used in providing sales
information for particular a product
Research Methodology
Selection of sample design
32suresh
Sampling: The process of using a small number of items or part of a large population to
make conclusion about the whole population.
Probability Non Probability
Sampling
Technique in which every
member of the population
has a known, nonzero
probability of selection.
Types:
Simple random
Systematic
Stratified
Cluster
Technique in which units
of sample are selected on
the basis of personal
judgment or convenience.
Types:
Quota
Judgment/purposive
Convenience
Snowball
Research Methodology
Selection of sample design
Probability
33suresh
Simple random: Each possible sample has an equal
probability of being included in the sample. Each member of
sample is assigned a number and sample unit is selected by
random method.
Eg. Random digit dialing for Telephone interviews or random
selection of respondents from census data.
Systematic: Elements are selected from population at a
uniform interval that is measured in time or order.
Eg. Mall Intercept PI conducted every Wednesday in
Bigbazaar or 2 houses skipped after every door to door
interview.
Research Methodology
Selection of sample design
Probability
34suresh
Stratified: Population divided into relatively homogeneous
group, called strata. From each stratum, a specified no. of
elements corresponding to the proportion of that stratum in
the population is selected by simple random sampling. Eg.
Out of an entire population of 50,000 of an area, if people
from age group 20-24 yrs are 10,000, then after a sample of,
say 200 is achieved by simple random sampling, the number
people between that age group will be more or less 40.
Cluster: Population is divided into groups or cluster. Eg.
Survey to be conducted in North and West.*In Stratified, each group has small variation within itself but wide variation
between groups.
There is considerable variation within each group but the groups are
similar to each other.
Research Methodology
Selection of sample design
Non Probability
35suresh
Quota: Various subgroup in a population are represented by
sample to the exact extent that the researcher desires. Eg.
Out of an entire population of 50,000 of an area, if people
from age group 20-24 yrs are 10,000, then
a Quota of 40 people should be achieved in that age group if
the sample size is selected as 200.
Purpose is to ensure various subgroups in a population are
represented
by the sample. Quota sampling have a tendency to include
people who are
easily found within the Quota (unlike Stratified in which strata
are formed
and people are selected by simple random sampling)
Research Methodology
Selection of sample design
Non Probability
36suresh
Judgment/purposive : Experienced researcher selects the
sample based on his/her judgment about some
characteristics required of the sample member. Eg. For a
telecom company study, the proportion of people to be
studied for a sample of 1000 are:
1. 600 (60%) those who presently use company’s sim
card
2. 250 (25%) those who have never used company’s
sim card
3. 150 (15%) those who switched after using
company’s sim card
The above proportion of sample may be less than fully
representative of population
Research Methodology
Selection of sample design
Non Probability
37suresh
Convenience : Refers to sampling by obtaining people who
are most conveniently available. Eg. News reporters present
reviews of a movie from people coming out of theatre, who
are presumed to reflect public opinion
Snowball : Sampling procedure in which initial respondents
are selected by probability method and additional
respondents are obtained from information provided by the
initial respondents.
Research Methodology
Types of question
38suresh
Open-ended and Closed-ended :
What do u like about Surf detergent:
1. Cleaning power
2. Fragrance
3. Dissolve easily
4. Any other (please specify)______________
Dichotomous Questions: Two alternatives given to choose
Are you a user of Surf detergent?
1. Yes
2. No
Research Methodology
Types of question
39suresh
Multiple Choice : Usually an extension of Dichotomous
What do u like about Surf detergent:
1. Cleaning power
2. Fragrance
3. Dissolve easily
4. Any other (please specify)______________
Scaling questions (rating/ranking):
Rating: Rate the following detergent brands on a scale of 1-
10Brand A 1 2 3 4 5 6 7 8 9 10
Brand B 1 2 3 4 5 6 7 8 9 10
Brand C 1 2 3 4 5 6 7 8 9 10
Research Methodology
Types of question
40suresh
Scaling questions (rating/ranking):
Ranking: Rank the following brand on their ability to clean
clothes: (1=best, 2=next best etc.)
Brand A ____
Brand B ____
Brand C ____
Research Methodology
Scales used in
questionnaire
41suresh
Nominal Ordinal Scale
Scales
Number are only used
as labels
Eg.
1.Bank Account
No.
2.No. of element
in each category
Permissible
operation:
1. Mode
2. No. of element
in each category
Test of Significance:
Chi Square
Ratio
Variable have
meaningful orders
Eg.
1.Ranking of
products
Permissible
operation:
1. Mode
2. Median
3. Percentile
Test of Significance:
1. Non parametric
statistical test
2. Sign test
Variables used to
compute statistical
measures (avg, std
deviation)
Eg.
1.Rating given to
attributes of
products
Permissible
operation:
1. Mode
2. Median
3. Mean
4. Std deviation
Test of Significance:
1. z-test
2. t-test
3. F-test
Interval
All arithmetic operations
are possible on a ratios
scale.
Eg.
1.Age
2. Income
3. Weight
Permissible
operation:
1. Mode
2. Median
3. Mean
4. Std deviation
Test of Significance:
All
Research Methodology
CASE
42suresh
Background
Rockledge Corporation shows its presence in various sectors: Steel, Telecom, Banking, and
Automobile. The company has decided to diversify its portfolio by getting in Consumer
durable sector, beginning with manufacturing of TV.
Need
Entering in TV industry
Research Methodology
CASE
43suresh
Research Objective
Identifying preference and potential demand among various
age and income group.
Finding media sources used before buying TV
Determining appropriate price levels for sizes of TV intended
to launch: 21inches and 29 inches.
Analyzing competition on various parameters
Identifying aspiration for buying TV
Research Methodology
CASE
44suresh
Research Design
Sources of Data
Descriptive
Primary
Research Methodology
CASE
45suresh
Data Collection
Research approach:
• Survey Research
Research instrument:
• Questionnaire, to collect primary data
Sampling plan:
• Sampling unit (Target Population):
I. Male and Female
II. Above 27 years
III. Household income not lesser than 2,00,000 Rs.
IV. Owning TV at home
V. Location: Mumbai, Delhi, Kolkata, Chennai and
Bangalore
Research Methodology
CASE
46suresh
Data Collection
Sampling plan:
• Sample size : 3500 (700 in each Metro) Age Group: 28 to 39 yrs - 1250
40 to 51 yrs - 1250
58 yrs and above - 1000
Income Group: 2,00,000 R s to 4,00,000 Rs - 750
4,10,000 Rs to 6,00,000 Rs - 1250
6,10,000 and above - 1500
…contd
Research Methodology
CASE
47suresh
Data Collection
Sampling plan:
• Sampling procedure: Non Probability
(Judgment/purposive)
Contact Method: Door to door personal interview
…contd
2,00,000 R s – 4,00,000 Rs
4,10,000 Rs– 6,00,000 Rs
6,10,000 and above
Sub Total
28 – 39 yrs 250 500 500 1250
40 – 51 yrs 250 500 500 1250
58 yrs and above 250 250 500 1000
Sub Total750 1250 1500 3500
Research Methodology
CASE
48suresh
Data Analysis
Identifying potential demand among various age group.
Definitely buy
Probably buy
May or may not buy
Probably not buy
Definitely not buy
Sub Total
28 – 39 yrs 388 225 275 163 200 1250
40 – 51 yrs 150 300 288 425 88 1250
58 yrs and above
170 120 190 400 120 1000
Sub Total 708 645 753 988 408 3500
Using Chi Square concept, at 5% significance level, there is a significant difference
among proportion and thus age group and purchase intention are dependent.
Research Methodology
CASE
49suresh
Data Analysis
Identifying potential demand among various income group.
Definitely buy
Probably buy
May or may not buy
Probably not buy
Definitely not buy
Sub Total
2,00,000 – 4,00,000 Rs
143 248 165 143 53 750
4,10,000 – 6,00,000 Rs
350 225 338 175 163 1250
6,10,000 – 5,00,000 Rs
195 225 495 360 225 1500
Sub Total 688 698 998 678 440 3500
Using Chi Square concept, at 5% significance level, there is a significant difference
among proportion and thus income group and purchase intention are dependent.
Research Methodology
CASE
50suresh
Data Analysis
Finding media sources used before buying TV
2
0
15
8
2
0
Chart TitleHoardings
TV Advertisement
Friends
Relatives
Colleagues
Manufacturer / dealer brochure
Newspaper
Internet
Dealer sales staff
Research Methodology
CASE
51suresh
Data Analysis
Determining appropriate price levels for 21inches
Rs 7,000 Rs 8,000 Rs 9,000 Rs 10,000
Rs 11,000
Rs 12,000
Rs 13,000
0
5
10
15
20
25
30
Rs 7,000 Rs 8,000 Rs 9,000 Rs 10,000
Rs 11,000
Rs 12,000
Rs 13,000
05
101520253035
TV is cheap but of acceptable
quality
TV is expensive but will possibly
buy
Research Methodology
CASE
52suresh
Data Analysis
Analyzing competition on various parameters
Price
Brand Image
Latest Model
Features
Latest Technology
Offers/Schemes 1.3
3.8
4.1
3.7
4.8
2
4.3
3
2.6
3.3
2.7
3.4
1.9
3.1
3.3
3.5
3.9
2
4.7
1
1.5
2.3
2.1
4.5
Sony
LG
Samsung
Videocon
Research Methodology
CASE
53suresh
Data Analysis
Rating given to Brands for attribute “Latest Model” :
Sony LG Samsung VideoconRespondent 1 3 4 2 2
Respondent 2 3 2 3 1
Respondent 3 5 5 4 2
Respondent 4 2 2 4 5
Respondent 5 5 2 3 3
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
. . . . .
Respondent 3499 4 3 2 3
Respondent 3500 2 3 1 1
Analyzing competition on various parameters….contd
Research Methodology
CASE
54suresh
Data Analysis
Analyzing competition on various parameters….contd
Testing data by Anova at 5% significance level, there is a significant difference
in rating given to brands for “Latest Model”.
No significant difference shown on Further analysis of Sony and Samsung on
mean rating given for “latest Technology” at 5% significance, using 2 sample
hypothesis concept
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