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PART I Introduction to Marketing Research and Problem Definition

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Page 1: Ppt for Class

PART IIntroduction to Marketing Research

and Problem Definition

Page 2: Ppt for Class

The Role of Marketing ResearchChapter 1

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1. Characteristics of Market Orientation2. The Problem3. Environments Affecting Marketing4. Definition of Marketing Research (MR)5. What MR Can Answer6. Who Does MR7. Why Study MR

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Gathering Marketing Intelligence: The

Systems Approach

Chapter 2

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1. MIS2. DSS

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Gathering Marketing Intelligence: The Project

Approach

Chapter 3

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1. Sequence of Steps in Marketing Research2. MR Ethics

Page 8: Ppt for Class

Problem Formation

Chapter 4

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Formulate Problem

Determine Research Design

Determine Data Collection Method

Design Data Collection Forms

Design Sample and Collect Data

Analyze and Interpret Data

Prepare Written/Verbal Report

Stages in the Research Process

Page 10: Ppt for Class

The Problem Formulation Process-Meet with Clients- Clarify the Problem/Opportunity- State the Manager’s Decision Problem- Develop Full Range of Possible Research Problems- Select Research Problem(s)- Prepare and Submit Research Request Agreement

Page 11: Ppt for Class

PART 2Research Design

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Types of Research Design and Exploratory

ResearchChapter 5

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Descriptive and Causal

Research DesignsChapter 6C

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Formulate Problem

Determine Research Design

Determine Data Collection Method

Design Data Collection Forms

Design Sample and Collect Data

Analyze and Interpret Data

Prepare Written/Verbal Report

Stages in the Research Process

Page 15: Ppt for Class

Research Design1. Exploratory Research Uses of Exploratory Research Methods of Conducting Exploratory Research - Secondary Data Analysis - Experience Surveys - Case Analysis - Focus Groups

- Advantages and Disadvantages of Focus Groups Projective Techniques

Page 16: Ppt for Class

2. Descriptive Research Classification - Cross-Sectional Studies - Longitudinal Studies

3. Causal (Experiments) - Independent Variable - Dependent Variable - Extraneous Variable - Pretest - Posttest

Types of Experiment - Laboratory - Field

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PART 3Data Collection Methods

Page 18: Ppt for Class

Secondary DataChapter 7C

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Standardized Marketing

Information ServicesChapter 8

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Collecting Primary Data

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Formulate Problem

Determine Research Design

Determine Data Collection Method

Design Data Collection Forms

Design Sample and Collect Data

Analyze and Interpret Data

Prepare Written/Verbal Report

Stages in the Research Process

Page 22: Ppt for Class

Secondary DataAdvantages and Disadvantages of Secondary DataEvaluating Secondary Data

Primary DataAdvantages and Disadvantages of Primary DataTypes of Primary Data- Demographic/Socioeconomic characteristics- Personality/Lifestyle characteristics- Attitudes/Opinions- Awareness/Knowledge- Intentions- Motivation- Behavior

Page 23: Ppt for Class

Types of Primary Data• Demographic/Socioeconomic

characteristics

• Personality/Lifestyle characteristics

• Attitudes/Opinions

• Awareness/Knowledge

• Intentions

• Motivation

• Behavior

Page 24: Ppt for Class

Demographic/Socioeconomic Characteristics

• Often used to divide a population into groups (e.g., for market segmentation purposes)

• Commonly measured variables: • Age

• Education

• Income

• Gender

• Occupation

Page 25: Ppt for Class

• Personality– Normal patterns of behavior exhibited by an

individual; the attributes, traits, and mannerisms that distinguish one individual from another

Personality/Lifestyle Characteristics

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• Lifestyle Analysis (sometimes called psychographic analysis)– Suggests that a company will be more

successful at reaching its target market if it knows more about its customers’ way of life, what interests them, and what they like

Personality/Lifestyle Characteristics

Page 27: Ppt for Class

• An attitude is an individual’s overall evaluation of something

• Marketers often measure people’s attitudes toward companies, products, and services

• Marketers also measure many “attitude-like” variables including value, quality, and satisfaction

Attitudes/Opinions

Page 28: Ppt for Class

• Insight into, or understanding of facts about, some object or phenomenon

• Marketers often want to know what individuals know or believe about products, brands, companies, advertisements, and so on

Awareness/Knowledge

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Measuring Awareness• Imagine that you wanted to assess the

ability of a magazine ad to create awareness for Dell Computers

Page 30: Ppt for Class

Measuring Awareness• Unaided Recall

– “For what products and brands do you remember seeing ads?”

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Measuring Awareness• Aided Recall

– “Do you remember seeing ads for personal computers?”

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Measuring Awareness• Recognition

– “Do you remember seeing this ad for Dell Computers?”• Ad, at right, shown to respondents

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• Anticipated or planned future behavior– Marketers often need this type of information

to assess demand for a good or service– Estimating demand for products and services

accurately is one of the most difficult tasks a marketing researcher faces

Intentions

Page 34: Ppt for Class

• A need, a want, a drive, a wish, a desire, an impulse, or any inner state that energizes, activates, or moves and that directs or channels behavior toward goals

Motivation

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• If we understand motivation, we are in better position to anticipate consumer needs and offer products and services that satisfy those needs

Motivation

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• Researchers are interested in people’s motives for two primary reasons– Determining why people behave as they do– Understanding what drives a person’s

behavior makes it easier to understand the behavior itself

Motivation

Page 37: Ppt for Class

Obtaining Primary Data• Communication

– Ask respondents for the information– Advantages: Versatility, speed, and cost

• Observation– Observe/Watch a situation to obtain the

information– Advantages: Objectivity and accuracy

Page 38: Ppt for Class

Collecting Information by

CommunicationChapter 10

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Collecting Information by

ObservationChapter 11

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Page 40: Ppt for Class

Formulate Problem

Determine Research Design

Determine Data Collection Method

Design Data Collection Forms

Design Sample and Collect Data

Analyze and Interpret Data

Prepare Written/Verbal Report

Stages in the Research Process

Page 41: Ppt for Class

CommunicationUndisguisedDisguised

StructuredUnstructured

Personal Interview

Telephone Interview

Mail Questionnaire

Internet-Based Questionnaire

Key Issues for Collecting Information by Communication

Page 42: Ppt for Class

Structure• The degree of standardization used with

the data collection instrument

• The degree of structure can range from high (e.g., fixed-alternative questions) to low (e.g., open-ended questions)

Page 43: Ppt for Class

Fixed-alternative questions• Questions in which the responses are

limited to stated alternatives

Considering all aspects, what is your overall evaluation of the Microsoft Corporation?

Extremely unfavorable

Unfavorable

Neither favorable nor unfavorable

Favorable

Extremely favorable

Page 44: Ppt for Class

Open-ended Questions• A question for which respondents are free

to reply in their own words rather than being limited to choosing from among a set of alternatives

Overall, how do you feel about the Microsoft Corporation? Please write your answer in the space provided.

________________________________________________________

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• Advantages– Easier

administration, coding, and analysis

– Greater reliability– Provides identical

frame of reference for responses

– Clarifies question

• Disadvantages– May force answers

to questions for which respondent really has no opinion

– Omitted response categories

Advantages and Disadvantages of High Structure

Page 46: Ppt for Class

Advantages and Disadvantages of Low Structure

• Advantages– Allows more accurate

expression of opinion, knowledge on topic

– Allows respondent to use their own words and expressions

– Researcher can tell whether or not respondent really knows anything about topic

• Disadvantages– Very difficult to

interpret and code responses

– Costly to analyze– Requires greater effort

from respondents– More open to

researcher bias in interpretation

Page 47: Ppt for Class

• The amount of knowledge about the purpose or sponsor of a study communicated to the respondent

• Disguise is especially useful or desirable when– Knowing the purpose or sponsor is likely to bias

respondents’ answers– Recreating the natural environment is

necessary, particularly in experimental research

Disguise

Page 48: Ppt for Class

Ethics of Disguise• Under the rights approach of ethical reasoning, the use

of disguise amounts to a violation of the respondent’s right to know

• Benefit of accurate information > Cost of deception via disguise?

• Debriefing– The process of providing appropriate information to

respondents after data have been collected using disguise

Page 49: Ppt for Class

Primary Methods of Administration

• Personal Interviews

– Direct, face-to-face conversation

• Telephone Interviews

– Direct, telephone conversation

• Mail Questionnaires

– Indirect, questionnaire sent and returned by mail

• Internet-based Questionnaires

– Indirect, E-mail or Web used for delivery and receipt of questionnaire

• E-mail questionnaires are highly similar to mail questionnaires

• Web questionnaires are designed for easy point-and-click completion

Page 50: Ppt for Class

Controlling Methods of Administration

• Sampling Control– Concerns the ability to identify, reach, and receive

answers from population members

• Information Control– Involves the amount, type, and quality of

information that can be retrieved from respondents

• Administrative Control– Concerned with the degree of quality control

possible and time and cost requirements

Page 51: Ppt for Class

Sampling Control: Telephone Interviews

• Researchers wishing to conduct telephone interviews have two significant challenges– Incompleteness and inaccuracy of telephone directories– Consumer shift from landline telephones to wireless telephones

• Researchers can overcome these challenges with the use of two techniques– Random-digit dialing (RDD)

• Telephone numbers are randomly generated– Plus-one Sampling

• A single, randomly determined digit is added to numbers drawn from a telephone directory

Page 52: Ppt for Class

SURVEY COLLECTION METHODS

• Person-administered surveys

• Computer-assisted surveys

• Self-administered surveys

• Mixed-mode or hybrid surveys

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PERSON-ADMINISTERED SURVEYS

One in which an interviewer reads questions, either face-to-face or

over the telephone, to the respondent and records his or her

answers

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ADVANTAGES

• Feedback

• Rapport

• Quality control

• Adaptability

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DISADVANTAGES

• Humans make errors

• Slow speed

• High cost

• Interview evaluation

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COMPUTER-ADMINISTERED SURVEYS

One in which computer technology plays an essential role in the

interview work, either with the computer assisting an interview, or

interacts directly with the respondent 

Page 57: Ppt for Class

ADVANTAGES

• Speed

• Error-free interviews

• Use of pictures, videos, and graphics

• Real-time capture of data

• Reduction of interview evaluation concern in respondents

Page 58: Ppt for Class

DISADVANTAGES

• Technical skills required

• High set-up costs

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SELF-ADMINISTERED SURVEYS

One in which the respondent completes the survey on his or her

own

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ADVANTAGES

• Reduced cost

• Respondent control

• No interview evaluation apprehension

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DISADVANTAGES

• Respondent control• Lack of monitoring• High questionnaire requirements  

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MIXED-MODE OR HYBRID SURVEYS

Surveys that use multiple data collection methods

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ADVANTAGE

• Multiple advantages to achieve data collection goal

 

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DISADVANTAGES

• Mode may affect response

• Additional complexity

Page 65: Ppt for Class

Degree of Structure

Setting

Degree of Disguise

Method of Administration HumanElectrical/Mechanical

NaturalContrived

UndisguisedDisguised

StructuredUnstructured

Observation

Key Issues for Collecting Information by Observation

Page 66: Ppt for Class

• The problem has been defined precisely enough so that behaviors that will be observed can be specified beforehand, as can the categories that will be used to record and analyze the situation

Structure

Page 67: Ppt for Class

• The problem has not been specifically defined, so a great deal of flexibility is allowed the observers in terms of what they note and record

Unstructured

Page 68: Ppt for Class

Disguised versus Undisguised Observation

• With undisguised observation, subjects know that they are being observed

• With disguised observation, subjects are not aware that they are being observed (e.g., mystery shoppers)– As with communication

methods, disguise brings ethical considerations which brings the need for debriefing

The main reason researchers may choose to disguise the presence of an observer is to control the tendency of people to behave differently when they know their actions are being watched

Page 69: Ppt for Class

Natural versus Contrived Setting

• Contrived Setting– Subjects are observed

in an environment that has been specially designed for recording behavior• Lab/”Fake” store• Computer simulation

• Natural Setting– Subjects are observed

in the environment where the behavior normally takes place• Shopping in a store• Using a product at home

Page 70: Ppt for Class

Advantages and Disadvantages of a Laboratory Setting for

Observation• Disadvantages

– Contrived setting may cause differences in behavior

– Threaten the external validity of the findings

• Advantages– Control outside

influences– Speeds data collection– Lower cost– Allows the use of

objective measurement

(

Page 71: Ppt for Class

Human versus Mechanical Observation

• Mechanical Observation– A mechanical device

observes the phenomenon and records the events that take place

– Examples include• Video cameras• Bar code scanners• Galvanometer• Response latency• Voice-pitch analysis• Eye camera

• Human Observation– Individuals are trained

to systematically observe a phenomenon and to record, on the observational form, the specific events that take place

Page 72: Ppt for Class

• Response latency

– The amount of time a respondent deliberates before answering a question

– Because response time seems to be directly related to the respondent’s uncertainty, it assists in assessing the individual’s strength of preference when choosing among alternatives

• Voice-pitch analysis

– Examines changes in the relative vibration frequency of the human voice that accompany emotional arousal

– Differences in normal and abnormal frequencies indicate the amount an individual is impacted by the stimulus question

Examples of Mechanical Observation

Page 73: Ppt for Class

• Eye camera– Used by researchers to study a subject’s eye

movements while he or she is reading advertising copy

– The visual record produced can allow researchers to• Determine the part of the ad the subject noticed first• How long his or her eyes lingered on a particular item• Whether the subject read all the copy or only part of it

Examples of Mechanical Observation

Page 74: Ppt for Class

DATA COLLECTION METHODSMETHOD DESCRIPTION

PERSON-ADMINISTERED INTERVIEWS

In-home interview The interviewer conducts the interview in the respondent’s home. Appointments may be made ahead by telephone

Mall-intercept interview Shoppers in a mall are approached to take part in the survey. Questions may be asked in the mall or in the mall-intercept company’s facilities located in the mall

In-office interview The interviewer makes an appointment with business executives or managers to conduct the interview at the respondent’s place of work

Traditional telephone interview Interviewers work out of their homes to conduct telephone interviews with households or business representatives

Central location telephone interview Interviewers work in a data collection company’s office using cubicles or work areas for each interviewer. Often the supervisor has the ability to listen in to interviews and to check that they are being conducted correctly

Page 75: Ppt for Class

METHOD DESCRIPTIONCOMPUTER-ADMINISTERED INTERVIEWS

Computer-assisted telephone interview

The questions are programmed for a computer screen and the interviewer then reads them off. Responses are entered directly into the computer program by the interviewer

Fully computerized interview A computer is programmed to administer the questions. Respondents interact with the computer and enter in their own answers by using a keyboard, by touching the screen, or by using some other means

Online or other internet-based survey Respondents fill out a questionnaire that resides in the internet, or otherwise accesses it via the internet such as receiving an e-mail attachment or downloading the file online

SELF-ADMINISTERED SURVEYS

Group self-administered survey Respondents take the survey in a group context. Each respondent works individually, but they meet as a group that allows the researcher to economize

Drop-off survey Questionnaires are left with the respondent to fill out. The administrator may return at a later time to pick up the completed questionnaire, or it may be mailed in

Mail survey Questionnaires are mailed to the prospective respondents who are asked to fill them out and return them by mail

Page 76: Ppt for Class

PART 4 Data Collection Forms

Page 77: Ppt for Class

Asking Good Questions:

Measurement BasicsChapter 12C

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Measuring Attitudes and Other Variables

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Designing the Questionnaire or

Observation FormChapter 14C

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Page 80: Ppt for Class

Formulate Problem

Determine Research Design

Determine Data Collection Method

Design Data Collection Forms

Design Sample and Collect Data

Analyze and Interpret Data

Prepare Written/Verbal Report

Stages in the Research Process

Page 81: Ppt for Class

FORMAT CAN BE

OPEN-ENDED

CATEGORICAL

METRIC

UNAIDED

AIDED

DUAL-CHOICE

MULTIPLE-CHOICE

NATURAL

SYNTHETIC

“What ads do you recall …”

“Do you recall the ad of Purefoods?”

“What is your age?”

“From the following list, which brand …”

“Do you watch TV?”

LEVEL OF MEASUREMENT

RESPONSE FORMAT EXAMPLE

“Was the product good, fair, or

poor?”

Page 82: Ppt for Class

THE SURVEY QUESTIONNAIRE DEVELOPMENT PROCESS

DETERMINE SURVEY

OBJECTIVES

DECIDE DATA COLLECTION

METHOD

QUESTIONNAIRE DEVELOPMENT

QUESTIONNAIRE EVALUATION

SECURE CLIENT

APPROVALPRETEST

REVISE AS NEEDED

FINALIZE AND DUPLICATE GATHER DATA

TABULATION AND FINAL

REPORT

Page 83: Ppt for Class

A. Symmetric1. Likert2. Semantic Differential Scale3. Staple Scale

B. Non-Symmetric Synthetic1. One Way-Labeled Case2. 5-Point Anchored Scale3. Graphic Rating Scale

Page 84: Ppt for Class

1. Functions of Survey Questionnaire2. Guidelines in Questionnaire Wordings3. Questionnaire Organization4. Parts of a Questionnaire5. Types of Affiliation6. Respondent Privacy7. Screening Questions8. Skip Questions9. Classification Questions10.Questionnaire Precoding

Page 85: Ppt for Class

Designing Questionnaire

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Step 1: Specify What Information Will Be Sought

• The first step should be relatively easy, assuming that the researchers have done a good job at earlier stages in the research process

• Hypotheses, dummy tables, etc., make it clear what information is needed

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Step 2: Determine Method of Administration

• The degree of structure and disguise influence this decision, as does the specific research situation– Personal Interview– Telephone Interview– Mail Questionnaire– Internet-based Questionnaire

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Step 3: Determine Content of Individual Questions

• Driven mostly by decisions in Steps 1-2

• Some key issues– Is the question necessary?– Are several questions needed instead of one?– Do respondents have the necessary information?– Will respondents give the information?

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Telescoping and Recall Error• Telescoping Error

– Type of error resulting from people remembering an event as having occurred more recently than it did

• Recall Error– Type of error caused by a respondent’s forgetting that an

event happened at all• The impact of these two types of error depends on the length

of the time period in question.– Longer periods = Smaller telescoping error; larger recall

error– Shorter periods = Larger telescoping error; smaller recall

error(

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• Don’t ask unless absolutely necessary!

• Guarantee anonymity

• Place sensitive questions near end

• Include a counterbiasing statement

• Ask about how others might feel

• Ask for general, rather than specific, information (e.g., categories for answers)

• Use randomized response model

Handling Sensitive Questions

(

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Recent studies show that one of every four households has trouble meeting its monthly financial obligations. Is your household currently experiencing financial difficulties?

____ Yes ____ No

Using a Counterbiasing Statement

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Randomized Response TechniqueInitial, “benchmark” study with nonsensitive question: “Is your birthday in January?” (5% say “yes.”)

Second survey, involving 200 respondents.Each respondent flips coin, with flip result not revealed to researcher.

Heads Tails

Respondent answers question 1:“Is your birthday in January?”

Respondent answers question 2:“Have you ever shoplifted?”

40 “yes” responses160 “no” responses

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40 “yes” responses160 “no” responses

5(.05x100)

95(.95x100)

100 (.5x200)

35 (40-5)

65(160-95)

100

Birthday

Shoplifting

“Yes” “No”

40 160

Conclusion: Estimate that 35 / 100, or 35% of population has shoplifted

Question:

Randomized Response Technique

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• Closed-Ended Questions– How old are you?

____ Less than 20____ 20-29____ 30-39____ 40-49____ 50-59____ 60 or over

– How would you feel about laws requiring motorcycle riders to wear helmets?

____ Definitely needed____ Probably needed____ Probably not needed____ Definitely not needed____ No opinion

Step 4: Determine Form of Response to Each Question

• Open-Ended Questions– How old are you? ____ years– How would you feel about

laws requiring motorcycle riders to wear helmets?__________________________________________________________________________________________

(

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Step 4: Determine Form of Response to Each Question

• Key Issues with Using Closed-ended questions– Multichotomous questions

• Respondents are asked to choose the alternative that most closely reflects their position on a subject

– With closed-ended questions, the response categories must be exhaustive; all reasonable responses must be included

– Response categories must be mutually-exclusive, except in special cases where more than one answer is acceptable (e.g., check all that apply)

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Version A: Do you think gasoline will bemore expensive or less expensive nextyear than it is now?____ More expensive____ Less expensive

Version B: Do you think gasoline will beless expensive or more expensive nextyear than it is now?____ More expensive____ Less expensive

Step 4: Determine Form of Response to Each Question

• Response Order Bias Can Occur When Using Closed-ended questions– An error that occurs when the response to a question is

influenced by the order in which the alternatives are presented• Split-ballot Technique is One Means of Avoiding Response Order

Bias– A technique in which one phrasing is used for a question in half

of the questionnaires while an alternate phrasing is used in the other half

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• Use Simple Words– Language used should be driven by the ability level

of the population; err on the side of simplicity

• Avoid Ambiguous Words and Questions– Examples include never, occasionally, sometimes,

often, regularly, always

• Avoid Leading Questions– Example

Step 5: Determine Wording of Each Question

Do you feel that limiting taxes by law is an effective way to stop the government from picking your pocket every payday?

____ Yes ____ No ____ Undecided

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• Avoid Unstated Alternatives– An alternative answer that is not expressed in a question’s

options– Thorough exploratory research and questionnaire pretesting are

key• Avoid Assumed Consequences

– When a question is not framed to clearly state the consequences and this generates different responses from individuals who assume different consequences

– Example

Step 5: Determine Wording of Each Question

Would you like to double the number ofjob offers you receive as a senior?____ Yes ____ No

Would you like to double the number ofjob offers you receive as a senior if thatmeans devoting an additional 10 hoursper week to studying so as to raise yourgrade point average?____ Yes ____ No

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Step 5: Determine Wording of Each Question

• Avoid Generalizations and Estimates– Questions should always be asked in specific, rather than

general, terms– When asking about the frequency of behaviors (e.g., shopping,

purchase), use an appropriate time frame that doesn’t force respondents to make estimates

• Avoid Double-Barreled Questions– Carefully use and and or

Think back to the last meal you purchased at a fast-food restaurant. How satisfied were you with the price and the quality of service that you received?____ Very Dissatisfied ____ Somewhat Satisfied____ Dissatisfied ____ Satisfied____ Somewhat Dissatisfied ____ Very Satisfied

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Step 6: Determine Question Sequence

• Use simple and interesting opening questions• Use the funnel approach

– Start with broad, general questions and progressively narrow the scope to more specific questions

• Design branching questions with care– Branching questions direct respondents to different

places in a questionnaire, based on their responses to the question at hand

• Ask for classification information last• Place difficult or sensitive questions late in the

questionnaire

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1. Did you, personally, give money to Canopy of Care last year? No (go to question #2)

Yes (go to question #3)

2. We are interested in why people do not contribute. The following is a list of answers others have given. (Please check all that apply to you)

___ Someone else in my household had already contributed. ___ I did not have the money at the time. ___ I gave to other charities. ___ I volunteered my services to Canopy of Care instead of money. ___ I volunteered my services to other charities instead of to Canopy of Care. ___ I did not give because Canopy of Care spends its money inefficiently. ___ Other: ___________________________

3. To how many different charities do you think Canopy of Care gives money? ___ 0-20 ___ 81-100 ___ 21-40 ___ More than 100 ___ 41-80 ___ Don’t know.

Step 6: Determine Question Sequence (Branching Example)

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Step 6: Determine Question Sequence

• Basic Information– Data that is the

subject of the study– Obtained first– Example: Attitudes,

Purchase Intentions

• Classification Information– Other data we collect

to classify respondents

– Obtained last– Example:

Demographics

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Step 7: Determine Physical Characteristics of Questionnaire

• Use good-quality paper and printing• No clutter!• Keep it as short as possible• Use care with branching questions• Use graphics as needed to improve appearance• Number questions within sections (e.g., 1-1, 1-2, 1-3, 1-

4, 2-1, 2-2)• Include an organization name (sometimes fictitious) and

project title• Go easy on instructions, unless they are absolutely

necessary

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Step 8: Develop Recruiting Message or Script

• Good cover letters and scripts are NOT written in a hurry

• The usual things to include are– Who you are– Why you are contacting them– The request for help– How long it will take– Promise of anonymity or confidentiality– Any incentives

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Step 9: Reexamine Steps 1-8 and Revise If Necessary

• Developing a questionnaire is a very difficult process

• It normally requires several revisions of the data collection form

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Step 10: Pretest Questionnaire and Revise If Necessary

• The real test of a questionnaire is how it performs under actual conditions of data collection

• Data collection should never begin until you have pretested – and probably revised again – the questionnaire

• It is the last chance that the researcher has to ensure that the data collection form is working properly

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Observation Forms• Decisions about

– Who should be observed?– What aspects should be reported?– Where should the observation be made?– When should the observation be made?

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Churchill Brown Suter/Basic Marketing Research

Observation Forms

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