Quantitative Research Techniques

1. Quantitative Research Techniques

2. Survey Research ... • is a method of descriptive research used for collecting primary data based on verbal or written communication with a representative sample of individuals or respondents from the target population. • It requires asking the respondents for information either face-to-face or using the telephone interview, or through mail, fax or Internet.

3. Survey Research • Objectives: • Most survey research studies attempt to identify and explain a particular marketing activity. Marketing surveys typically have multiple objectives. • Although surveys are generally conducted to quantify certain factual information, certain aspects of surveys may also be qualitative. • For example, testing and refining new product concepts is often a qualitative objective in a new product development. • Has non-business application as well. [e.g. donor research].

4. Example • What survey research objectives might Daewoo [motor car] develop to learn about car buyers? • Consumer preference in design and features and how best to satisfy these preferences; • shopping mall “intercepts”; mail interview etc. • Demographic details, customer satisfaction; • Testing certain aspects of advertising; • Study product image.

5. Person administered surveys I 1. Direct, face-to-face Interview: • Interviewer and interviewee see and talk to each other face-to-face. Includes • In-home/In-office Interview • Appointment first, • Face to face Interview • Needs Skill • Mall Intercept Interview • Interview outside home, in supermarkets, departmental stores, other public places

6. Advantages Direct interaction Clarity and display of exhibits Better quality and quantity of data Higher response rate No sequence bias Identifying respondents Unstructured Disadvantages High cost Longer time Interviewer bias Anonymity not maintained Interviewer cheating Time bias exists Field control needed Face to face interview

7. Person Administered Surveys II 2. Indirect, non- face-to-face Interview: • The interviewer and the interviewee do not see but talk direct to each other. • Telephone Interview

8. Advantages Faster Results Inexpensive Better geographical coverage Irresistibility Reaching hard-to-reach people Timing: early or late OK Privacy and better control Coincidental data: immediate feedback. Disadvantages No exhibits Long interview not possible Inability to make judgment Answering machines and caller identification device Sampling problem Obsolete directory: poor sampling frame Telephone Interview

9. Mail Advantages Wide geographical coverage Providing thoughtful answers Ability to ask sensitive questions No interviewer bias Inexpensive Better control Anonymity Clarity Survey Disadvantages Mailing list problem Unidentifiable respondent Questionnaire exposure Data limitation No interviewer assistance no exhibits Assumed literacy Poor response rate Longer time Self-administered surveys Survey through Internet has similar advantages and problems

10. Data collection instrument used for gathering data; A formalized schedule of an assembly of a carefully formulated questions; Six important functions Converts research objectives into specific questions Standardizes the questions Keeps respondents motivated to complete the research Serve as a permanent record Speed-up the process of data analysis Reliability and validity purposes A questionnaire [also called research instrument]

11. Questionnaire Development Process

12. Basic Question Formats

13. OPEN-ENDED QUESTIONS: Questions to which respondents give their responses freely, according to their own will.

14. Advantages Since they do not restrict the respondent’s response, the widest scope of response can be attained. Most appropriate where the range of possible responses is broad, or cannot be predetermined. Less subject to interviewer bias. Responses may often be used as direct quotes to bring realism and life to the written report. Disadvantages Inappropriate for self-administered questionnaire since people tend to write more briefly than they speak. The interviewer may only record a summary of the responses given by an interview and fail to capture the the interviewer’s own ideas. It is difficult to categorize and summarize the diverse responses of different respondents. May annoy a respondent and prompt him/her to terminate the interview, or ignore the mail questionnaire. Advantages and disadvantages ofOpen-ended Questions

15. CLOSED-ENDED QUESTIONS: Questions to which respondents are required to answer from set of alternative responses provided by the researcher. Could be dichotomous or multiple choice.

17. ADVANTAGES All respondents reply on a standard response set. This ensures comparability of responses, facilitates coding, tabulating and interpreting the data. Easier to administer and most suited for self-administered questionnaire. If used in interviews, less skilled interviewer may be engaged to do the job. DISADVANTAGES Preparing the list of responses is time-consuming. If the list of responses is long, the respondents may be confused. If the list of responses is not comprehensive, responses may often fail to represent the respondent’s point of views. Advantages and Disadvantages ofClosed-ended Questions

20. Considerations in choosing a question format • Nature of the property being measured • Subjective Vs objective • Previous research studies • Need for comparison with past studies • Data Collection Mode • Telephone/face-to-face-interview/mail • Scale level desired • Statistical analysis • Ability of the respondents

21. PHRASING Focus on a single issue or topic Ask precise questions using respondent’s core vocabulary Avoid use of vague words asking leading or loaded questions estimation questions double barreled questions presumptuous questions SEQUENCING Start with simple opening questions Place broad-based questions first; more specific and narrow questions and difficult, sensitive, embarrassing questions should come later(Funnel approach) Classification questions last. Transition from one topic to another should be smooth Phrasing and Sequencing of Questions

22. Questionnaire Layout • Provide sufficient spaces • Use prominent print for instructions • Use filtered questions • Do not slit the same question over two pages • Number the questions • Layout should facilitate editing and coding

24. Causal Research/Experiments • In causal research, the emphasis is on specific hypotheses about the effects of changes of one variable on another variable. • Deals with cause-effect relationship. • Involves experiment where an independent variable is changed or manipulated to see how it affects a dependent variable by controlling the effects of extraneous variables. • Extraneous variables: • Different from dependent or independent variables • Variables that may have some affects upon a dependent variable but yet are not independent variables.

25. Experimental design • A set of procedures for devising an experiment such that a change in a dependent variable may be attributed solely to the change in an independent variables. • Various notations used: O = The measurement or the process of observation of a dependent variable on the subjects or groups of subjects to be tested. O1 and O2 refer to different measurements made of the dependent variable. X = The manipulation, or change, of an independent variable. R = Random assignment of subjects (consumers, stores, and so on) to experimental and control groups. E = Experimental effect; that is, the change in the dependent variable due to the independent variable.

26. Types of Experimental Designs • Many Designs • “Quasi-” and “true” experimental designs • Quasi designs: designs which do not properly control for the effects of extraneous variables. • True designs: designs which properly control for the effects of extraneous variables and isolate the effects of independent variables on the dependent variables. • Three examples: • After only design • One Group, Before-After Design • Before-After with control group

27. Three Examples • After only • Involves one group, shown as X O1 • X represents the change in the independent variable • One group, Before-After Design • Involves one group, shown as O1 X O2 Both are examples of quasi experimental design • Before-after with control group Experimental group: Group subjected to experimental treatment: O1 X O2 Control group: Group not subjected to experimental treatment: O3 O4 Change = (O2 -- O1) -- (O4 -- O3 )

28. Illustrated Example

29. Question: “Did the change from selling in packs of two to free selection from produce bins caused this sales increase?”

30. Experimental Design: the mango example • Divide the 16 supermarkets in two equivalent groups of 8 - one control group, the other experimental group. • In the shops in control group, DO NOT CHANGE the packaging style, in the experimental group, make the change. • Measure the sales for both groups before the experiment date and after the experiment date. • Assume that the difference in the two groups are as below: After Before Difference • Control group 30,720units [O4] 27,980 [O3] 2,740 [O4 - O3] • Experimental group 31,688 [O2] 27,816 [O1] 3,872 [O2 - O1] • Sales increase due to new system1,132 Change = (O2 -- O1) -- (O4 -- O3 )

32. Other points related to experiments • Validity • An experiment is valid if: • the observed change in the dependent variable is, in fact, due to the independent variable >> internal validity • if the results of the experiment apply to the “real world” outside the experimental setting >> external validity. • Test marketing • A special type of field experiment used to test • sales potential for a new product or service, • variations in the marketing mix for a product or service.

33. TEST MARKETING

34. Difference between Surveys and Experimental Designs • The fundamental difference concerns the manipulation of independent variables. • In surveys, an effect is observed and a search for a cause follows. • In experimental research, on the other hand, independent variables are manipulated to establish a cause-effect relationship.

35. Alternative Research Strategies for collecting consumer information about a product. Elements of Strategy Strategy 1 Strategy 2 Strategy 3 Strategy 4 Survey Telephone Mail Personal Personal Method interview survey interview interview Research Few factual A 2-page Many Projective instrument questions questionnaire questions tests Sampling A small All subscribers A large sample A dozen plan sample of to a consumer of subjects people households magazine chosen on a found chosen by national using the random digit probability product dialing in the sampling

36. Quantitative Research in Asia-Pacific Region • Unavailable/inaccurate secondary data: • Much data on Asian markets are either non-existent, difficult to obtain or unreliable. For example, in many Asian countries consumers’ income estimates are inaccurate since they omit the unreported or underreported income. • Problem with primary data • Survey research suffers from lack of sampling frame; shortage of qualified researchers/interviewers; respondents’ unfamiliarity with research and lack of trust on researchers; less than truthful responses; and other cultural idiosyncrasies. • Poor postal and telephone system; poor rate of literacy of respondents; high rate of change and political instability etc. • The nature and magnitude of problems vary from country to country.