Answer all the Questions.

1. What is marketing research? Explain the different stages of marketing research with the help of an example.
Identify the various problems in conducting marketing research in India?

Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and
services. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer
behavior. The term is commonly interchanged with market research; however, expert practitioners may wish to draw a
distinction, in that market research is concerned specifically with markets, while marketing research is concerned specifically
about marketing processes.[1]

Marketing research is often partitioned into two sets of categorical pairs, either by target market:

 Consumer marketing research, and

 Business-to-business (B2B) marketing research

Or, alternatively, by methodological approach:

 Qualitative marketing research, and

 Quantitative marketing research

Consumer marketing research is a form of applied sociology that concentrates on understanding the preferences, attitudes, and
behaviors of consumers in a market-based economy, and it aims to understand the effects and comparative success of marketing
campaigns. The field of consumer marketing research as a statistical science was pioneered by Arthur Nielsen with the founding
of the ACNielsen Company in 1923.[2]

Thus, marketing research may also be described as the systematic and objective identification, collection, analysis, and
dissemination of information for the purpose of assisting management in decision making related to the identification and
solution of problems and opportunities in marketing.[3]

Stages of marketing research process

Step 1: Problem Definition

The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into
account the purpose of the study, the relevant background information, what information is needed, and how it will be used in
decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of
secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the
research can be designed and conducted properly.

Step 2: Development of an Approach to the Problem

Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models,
research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is
guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data,
qualitative research and pragmatic considerations.

Step 3: Research Design Formulation

A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary
for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine
possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory
research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research
design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an
experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the
study.
More formally, formulating the research design involves the following steps :

1. Secondary data analysis

2. Qualitative research
3. Methods of collecting quantitative data (survey, observation, and experimentation)
4. Definition of the information needed
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis

Step 4: Field Work or Data Collection

Data collection involves a field force or staff that operates either in the field, as in the case of personal interviewing (in-home,
mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted
telephone interviewing), or through mail (traditional mail and mail panel surveys with prerecruited households). Proper
selection, training, supervision, and evaluation of the field force helps minimize data-collection errors.

Step 5: Data Preparation and Analysis

Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is
inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question
in the questionnaire. The data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or input
directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed,
while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Univariate
techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are
several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques
are used for analyzing data when there are two or more measurements on each element and the variables are analyzed
simultaneously.

Step 6: Report Preparation and Presentation

The entire project should be documented in a written report which addresses the specific research questions identified, describes
the approach, the research design, data collection, and data analysis procedures adopted, and presents the results and the major
findings. The findings should be presented in a comprehensible format so that they can be readily used in the decision making
process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and
impact.

For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for products
of a technical nature, where it is relatively easy to identify and approach the experts. This method is also helpful in situations
where little information is available from other sources, as in the case of radically new products.

Secondary data analysis

Secondary data are data collected for some purpose other than the problem at hand. Primary data, on the other hand, are
originated by the researcher for the specific purpose of addressing the research problem. Secondary data include information
made available by business and government sources, commercial marketing research firms, and computerized databases.
Secondary data are an economical and quick source of background information. Analysis of available secondary data is an
essential step in the problem definition process: primary data should not be collected until the available secondary data have
been fully analyzed.

Qualitative research

Information, industry experts, and secondary data may not be sufficient to define the research problem. Sometimes qualitative
research must be undertaken to gain a qualitative understanding of the problem and its underlying factors. Qualitative research is
unstructured, exploratory in nature, based on small samples, and may utilize popular qualitative techniques such as focus groups
(group interviews), word association (asking respondents to indicate their first responses to stimulus words), and depth
interviews (one-on-one interviews which probe the respondents' thoughts in detail). Other exploratory research techniques, such
as pilot surveys with small samples of respondents, may also be undertaken.
Market Research is a systematic, objective collection and analysis of data about a particular target market, competition, and/or
environment. It always incorporates some form of data collection whether it be secondary research (often referred to as desk
research) or primary research which is collected direct from a respondent.

The purpose of any market research project is to achieve an increased understanding of the subject matter. With markets
throughout the world becoming increasingly more competitive, market research is now on the agenda of many organisations,
whether they be large or small.

DEMAND  FOR  MORE  ''MARKET  INTELLIGENCE''.

-to  know  more about  the  market.

-to  gain better  understanding  of  the  market.
-to  better  position  the  products/services.
-to  use  the  limited  resources, more  effectively.

THE  MUCH  EDUCATED  MARKETERS,  ARE  NOW

FULLY   AWARE  OF  THE RANGE
OF VITAL INFORMATION   NEEDED  FOR  EFFECTIVE  MARKETING.

Business Intelligence
Business Performance Management
Business rules
Data Mining ance
Predictive analytics
Purchase order request
Enterprise Architecture
Information technology management
Knowledge Base
Online analytical processing
ETC ETC

The major EXPECTATIONS of MARKETING RESEARCH are to:

reach an understanding of the relevant processes on the basis of the available historic information. This element forms the basis
for the development of models, required for forecasting and simulation.
provide information on the current situation, especially for early warning purposes, for instance related to issues impacting on
business, resources or business status.
forecast changes and impacts, either natural or man-made, as an element in vulnerability assessments.
forecast the consequences of policy decisions and measures before they are implemented in reality. This implies evaluating
options for several given scenarios based on the possible results and predicted consequences, and selecting the most acceptable
alternative.

THE MARKET RESEARCH PROVIDES

Ad Tracking – periodic or continuous in-market research to monitor a brand’s performance using measures such as brand
awareness, brand preference, and product usage.
Advertising Research – used to predict copy testing or track the efficacy of advertisements for any medium, measured by the
ad’s ability to get attention, communicate the message, build the brand’s image, and motivate the consumer to purchase the
product or service.
Brand equity research - how favorably do consumers view the brand?
Brand name testing - what do consumers feel about the names of the products?
Commercial eye tracking research - examine advertisements, package designs, websites, etc by analyzing visual behavior of the
consumer
Concept testing - to test the acceptance of a concept by target consumers
Coolhunting - to make observations and predictions in changes of new or existing cultural trends in areas such as fashion, music,
films, television, youth culture and lifestyle
consumer decision process research - to determine what motivates people to buy and what decision-making process they use
Copy testing – predicts in-market performance of an ad before it airs by analyzing audience levels of attention, brand linkage,
motivation, entertainment, and communication, as well as breaking down the ad’s flow of attention and flow of emotion.
• Customer satisfaction studies - exit interviews or surveys that determine a customer's level of satisfaction with the quality of
the transaction
Demand estimation - to determine the approximate level of demand for the product
Distribution channel audits - to assess distributors’ and retailers’ attitudes toward a product, brand, or company
• Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums, web pages, blogs... where people
express freely about their experiences with products, becoming strong "opinion formers"
Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual
marketing activities.
mystery shopping - An employee or representative of the market research firm anonymously contacts a salesperson and indicates
he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control
or for researching competitors' products.
Positioning research - how does the target market see the brand relative to competitors? - what does the brand stand for?
Price elasticity testing - to determine how sensitive customers are to price changes
• Sales forecasting - to determine the expected level of sales given the level of demand. With respect to other factors like
Advertising expenditure, sales promotion etc.
Segmentation research - to determine the demographic, psychographic, and behavioural characteristics of potential buyers
Online panel - a group of individual who accepted to respond to marketing research online
• Store audit - to measure the sales of a product or product line at a statistically selected store sample in order to determine
market share, or to determine whether a retail store provides adequate service
Test marketing - a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a
wider market
Viral Marketing Research - refers to marketing research designed to estimate the probability that specific communications will
be transmitted throughout an individuals Social Network. Estimates of Social Networking Potential (SNP) are combined with
estimates of selling effectiveness to estimate ROI on specific combinations of messages and media.
All of these forms of marketing research can be classified as either problem-identification research or as problem-solving
research.
A company collects primary research by gathering original data. Secondary research is conducted on data published previously
and usually by someone else. Secondary research costs far less than primary research, but seldom comes in a form that exactly
meets the needs of the researcher.
A similar distinction exists between exploratory research and conclusive research. Exploratory research provides insights into
and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Conclusive research
draws conclusions: the results of the study can be generalized to the whole population.
Exploratory research is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of
research. It may serve as the input to conclusive research. Exploratory research information is collected by focus group
interviews, reviewing literature or books, discussing with experts, etc. This is unstructured and qualitative in nature. If a
secondary source of data is unable to serve the purpose, a convenience sample of small size can be collected. Conclusive
research is conducted to draw some conclusion about the problem. It is essentially, structured and quantitative research, and the
output of this research is the input to MARKETING INFORMATION SYSTEM.
Exploratory research is also conducted to simplify the findings of the conclusive or descriptive research, if the findings are very
hard to interpret for the marketing manager.

FOR THE MARKETING

MARKETING RESEARCH provides such informations as
-consumer research data
-market research data
-market surveys
-market analysis
-competitors analysis
-product analysis
-product test analysis
-product plans
-test market results
-market strategy analysis
-sales analysis
-distribution analysis
-media analysis
-promotion analysis
-customer satisfaction survey
-retail audit data
-marketing auditing data
-market forecast
-sales forecast
-sales planning data
-distribution planning
-customer analysis
-market segment analysis
-consumer [ socio/economic /demographic/psychographic] data
ETC ETC.
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The Marketing research  STAGES.
Marketing research is gathered using a systematic approach. An example of one follows:
1. Define the problem. Never conduct research for things that you would 'like' to know. Make sure that you really 'need' to know
something. The problem then becomes the focus of the research. For example, why are sales falling in New Zealand?
2. How will you collect the data that you will analyze to solve your problem? Do we conduct a telephone survey, or do we
arrange a focus group? The methods of data collection will be discussed in more detail later.
3. Select a sampling method. Do we us a random sample, stratified sample, or cluster sample?
4. How will we analyze any data collected? What software will we use? What degree of accuracy is required?
5. Decide upon a budget and a timeframe.
6. Go back and speak to the managers or clients requesting the research. Make sure that you agree on the problem! If you gain
approval, then move on to step seven. 7. Go ahead and collect the data.
8. Conduct the analysis of the data.
9. Check for errors. It is not uncommon to find errors in sampling, data collection method, or analytic mistakes.
10. Write your final report. This will contain charts, tables, and diagrams that will communicate the results of the research, and
hopefully lead to a solution to your problem. Watch out for errors in interpretation.

Conducting  marketing  research in india  is  not

a  problem, but  a  challenge.
-lack  of  awareness.
-lack  of  understanding of  the  usage.
-lack of  understand of the  benefits.
-treating  it  as   a  cost, instead  of  an  investment.

1.THE  TOP  MANAGEMENT  ARE  NOT  MARKET  ORIENTED.

2.THE  TOP  MANAGEMENT  ARE  NOT SENSITIVE  TO

THE  MARKETING  NEEDS.

3.IN  CASE OF   ORGANIZATION  FINANCIAL CRISIS,

THE  FIRST  AXE  FALLS  ON THE  MARKETING  BUDGET.

4.THE   ALLOCATION  OF  RESOURCES  IS  LIMITED

TO  THE  MARKETING  RESEARCH   BUDGET.

5.THE  MARKETING   RESEARCH  PERSONNEL  LACK

THE  VISIBILITY/  CREDIBILITY  IN  THE  ORGANIZATION.

6.THE  EFFECTIVE  COMMUNICATION  BETWEEN  THE

TOP MANAGEMENT  AND  THE  MARKETING  IS  VERY
LIMITED.

7.THE  MARKETING  PERSONNEL  ARE  NOT  TRAINED

TO  USE  THE  MARKETING  RESEARCH  INFORMATION
EFFECTIVELY.

8.THE  MARKETING  RESEARCH  PROJECT/ INVESTMENT

ARE  NOT  ASSESSED FOR  THEIR  ''ROI''-return on investment.

9.LACK  OF  TRAINED  PERSONNEL   IN  MARKETING

RESEARCH.

10.LACK  OF  SKILL  IN  INTERPRETING  THE  MARKETING

RESEARCH  DATA   BY   THE  USERS.

Once  you  overcome  these  hurdles, with

proper /  effective   education /  communication,
the  demand  will  spread   quickly.
2. (a) Explain the four types of research designs with the help of suitable examples.

1.Historical Research Design - The purpose is to collect, verify, synthesize evidence to establish facts that defend or refute your
hypothesis. It uses primary sources, secondary sources, and lots of qualitative data sources such as logs, diaries, official
records, reports, etc. The limitation is that the sources must be both authentic and valid.
EXAMPLES
-SALES   ANALYSIS  REPORTS
-MARKET  ANALTSIS  REPORTS
-FINANCIAL  ANALYSIS  REPORTS

2.Descriptive or Survey Research Design - It attempts to describe and explain conditions of the present by using many
subjects and questionnaires to fully describe a phenomenon. Survey research design /survey methodology is one of the
most popular for dissertation research. There are many advantages.
-CONSUMER  RESEARCH
-RETAIL  AUDIT   SURVEY
-JOB   SATISFACTION  SURVEY
================================
3.Correlational or Prospective Research Design - It attempts to explore relationships to make predictions. It uses one set
of subjects with two or more variables for each.
3.Developmental or Time Series Research Design - Data are collected at certain points in time going forward. There is
an emphasis on time patterns and longitudinal growth or change.
-ECONOMIC  RESEARCH
-MARKETING   RESEARCH
-WEATHER  FORECASTING

4.Experimental Research Design - This design is most appropriate in controlled settings such as laboratories. The
design assumes random assignment of subjects and random assignment to groups (E and C). It attempts to explore
cause and affect relationships where causes can be manipulated to produce different kinds of effects. Because of the
requirement of random assignment, this design can be difficult to execute in the real world (non laboratory) setting.
-CHEMICAL  RESEARCH
-ORGANIC  STUDIES
-NUCLEAR   IMPACT  STUDY

(b) What are the two sources of data? Define primary and secondary data. Discuss the main sources of
primary and secondary data and the advantages and limitations of both primary and secondary data.

1.PRIMARY   RESEARCH  
Primary Sources

Some definitions of primary sources:

•   Primary sources are original materials on which other research is based
•   They are usually the first formal appearance of results in the print or electronic literature (for example, the
first publication of the results of scientific investigations is a primary source.)
•   They present information in its original form, neither interpreted nor condensed nor evaluated by other
writers.
•   They are from the time period (for example, something written close to when what it is recording happened
is likely to be a primary source.)
•   Primary sources present original thinking, report on discoveries, or share new information.

Some examples of primary sources:

•   scientific journal articles reporting experimental research results
•   proceedings of Meetings, Conferences and Symposia.
•   technical reports
•   dissertations or theses (may also be secondary)
•   patents
•   sets of data, such as census statistics
•   works of literature (such as poems and fiction)
•   diaries
•   autobiographies
•   interviews, surveys and fieldwork
•   letters and correspondence
•   speeches
•   newspaper articles (may also be secondary)
•   government documents
•   photographs and works of art
•   original documents (such as birth certificate or trial transcripts)
•   Internet communications on email, listservs, and newsgroups

ALSO
means  gathering  information  directly  from the  consumers
which  could  involve

-using  questionnaire.
-using  focus  group [ face  to face  interview ]
-telephone  interviews
-panel  interviews
-person  to  person  interviews
etc  etc

1.MERITS
-from  the primary  source.
-original information.
-current  data.
-reliable.
-clearly  defined.

2.DEMERITS
-time  consuming.
-expensive  process.
-difficult  to  procure,  sometimes.

3.LIMITATIONS.
-due  to  time/ cost factors, the  amount  of  data  gathering  is restricted.

2.SECONDARY   RESEARCH

Secondary Sources
Secondary sources are less easily defined than primary sources. What some define as a secondary source,
others define as a tertiary source. Nor is it always easy to distinguish primary from secondary sources. A
newspaper article is a primary source if it reports events, but a secondary source if it analyses and comments
on those events. In science, secondary sources are those which simplify the process of finding and evaluating
the primary literature. They tend to be works which repackage, reorganize, reinterpret, summarise, index or
otherwise "add value" to the new information reported in the primary literature. More generally, secondary
sources

Some Definitions of Secondary Sources:

•   describe, interpret, analyze and evaluate the primary sources
•   comment on and discuss the evidence provided by primary sources
•   are works which are one or more steps removed from the event or information they refer to, being written
after the fact with the benefit of hindsight.

Some examples of secondary sources:

•   bibliographies (may also be tertiary)
•   biographical works
•   commentaries
•   dictionaries and encyclopedias (may also be tertiary)
 •   dissertations or theses (more usually primary)
•   handbooks and data compilations (may also be tertiary)
•   history
•   indexing and abstracting tools used to locate primary & secondary sources (may also be tertiary)
•   journal articles, particularly in disciplines other than science (may also be primary)
•   monographs (other than fiction and autobiography)
•   newspaper and popular magazine articles (may also be primary)
•   review articles and literature reviews
•   textbooks (may also be tertiary)
•   treatises  works of criticism and interpretation

ALSO
means  gathering  information  indirectly  from the  published  source
which  could  involve

-using  census  data.

-buying published  data  from  bureaus
-gathering  data  from   stock  exchange  
-collecting  information  from   company  annual  reports.
etc  etc

1.MERITS
-from  the  secondary   source.
-easy  to  source
-less  time  required.
-less  expensive.

2.DEMERITS
-repackaged   information.
-re-interpretation.
-not  so  reliable.
-old  data   and  not  current.

3.LIMITATIONS.
-not  current  data.

3. Define sampling and explain the importance and limitations of sampling in marketing research with the help of
suitable example.
Sampling
It is incumbent on the researcher to clearly define the target population. There are no strict rules to follow, and the researcher
must rely on logic and judgment. The population is defined in keeping with the objectives of the study.
Sometimes, the entire population will be sufficiently small, and the researcher can include the entire population in the study.
This type of research is called a census study because data is gathered on every member of the population.
Usually, the population is too large for the researcher to attempt to survey all of its members. A small, but carefully chosen
sample can be used to represent the population. The sample reflects the characteristics of the population from which it is drawn.
Sampling methods are classified as either probability or nonprobability. In probability samples, each member of the population
has a known non-zero probability of being selected. Probability methods include random sampling, systematic sampling, and
stratified sampling. In nonprobability sampling, members are selected from the population in some nonrandom manner. These
include convenience sampling, judgment sampling, quota sampling, and snowball sampling. The advantage of probability
sampling is that sampling error can be calculated. Sampling error is the degree to which a sample might differ from the
population. When inferring to the population, results are reported plus or minus the sampling error. In nonprobability sampling,
the degree to which the sample differs from the population remains unknown.
Random sampling is the purest form of probability sampling. Each member of the population has an equal and known chance of
being selected. When there are very large populations, it is often difficult or impossible to identify every member of the
population, so the pool of available subjects becomes biased.
Systematic sampling is often used instead of random sampling. It is also called an Nth name selection technique. After the
required sample size has been calculated, every Nth record is selected from a list of population members. As long as the list does
not contain any hidden order, this sampling method is as good as the random sampling method. Its only advantage over the
random sampling technique is simplicity. Systematic sampling is frequently used to select a specified number of records from a
computer file.
Stratified sampling is commonly used probability method that is superior to random sampling because it reduces sampling error.
A stratum is a subset of the population that share at least one common characteristic. Examples of stratums might be males and
females, or managers and non-managers. The researcher first identifies the relevant stratums and their actual representation in
the population. Random sampling is then used to select a sufficient number of subjects from each stratum. "Sufficient" refers to a
sample size large enough for us to be reasonably confident that the stratum represents the population. Stratified sampling is often
used when one or more of the stratums in the population have a low incidence relative to the other stratums.
Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation
of the truth. As the name implies, the sample is selected because they are convenient. This nonprobability method is often used
during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a
random sample.
Judgment sampling is a common nonprobability method. The researcher selects the sample based on judgment. This is usually
and extension of convenience sampling. For example, a researcher may decide to draw the entire sample from one
"representative" city, even though the population includes all cities. When using this method, the researcher must be confident
that the chosen sample is truly representative of the entire population.
Quota sampling is the nonprobability equivalent of stratified sampling. Like stratified sampling, the researcher first identifies the
stratums and their proportions as they are represented in the population. Then convenience or judgment sampling is used to
select the required number of subjects from each stratum. This differs from stratified sampling, where the stratums are filled by
random sampling.
Snowball sampling is a special nonprobability method used when the desired sample characteristic is rare. It may be extremely
difficult or cost prohibitive to locate respondents in these situations. Snowball sampling relies on referrals from initial subjects to
generate additional subjects. While this technique can dramatically lower search costs, it comes at the expense of introducing
bias because the technique itself reduces the likelihood that the sample will represent a good cross section from the population.
----------------------------------------------------------------------
a) Size of the sample
The sample size of a statistical sample is the number of observations that constitute it. It is typically denoted n, a positive integer
(natural number).
Typically, all else being equal, a larger sample size leads to increased precision in estimates of various properties of the
population. This can be seen in such statistical rules as the law of large numbers and the central limit theorem. Repeated
measurements and replication of independent samples are often required in measurement and experiments to reach a desired
precision.
A typical example would be when a statistician wishes to estimate the arithmetic mean of a continuous random variable (for
example, the height of a person). Assuming that they have a random sample with independent observations, then if the
variability of the population (as measured by the standard deviation σ) is known, then the standard error of the sample mean is
given by the formula:
It is easy to show that as n becomes large, this variability becomes very small. This yields to more sensitive hypothesis tests with
greater statistical power and smaller confidence intervals
=====================================================
b) Representative character of the sample
For the sake of getting the training data from the data itself without other previous knowledge, we
present a method to calculate the representative sample sets of each cluster only based on the
intrinsic character of high dimensional data, according to different objects influencing the
assembling state in some dimensions of high dimensional data set. In order to classify the other
samples of the data set, we adopt Support Vector Machine (SVM) as the classifier for its ability to
analyze the small sample sets. During the SVM’s training course, we put forward a method to select
the marginal points of the representative sample sets as the different clusters’ approximate support
vectors to train the SVM to boost the machine’s classification capability. Lastly, we analyzed the
hyperspectral data to detect red tide by this method, which proved the method could classify the data
effectively and the selecting method of the SVM’s training samples could quickly and efficaciously
boost the machine’s training course.
================================================

c) Reliability of the sample

In statistics, reliability is the consistency of a set of measurements or measuring instrument, often used to describe a test. This
can either be whether the measurements of the same instrument give or are likely to give the same measurement (test-retest), or
in the case of more subjective instruments, such as personality or trait inventories, whether two independent assessors give
similar scores (inter-rater reliability). Reliability is inversely related to random error.
Reliability does not imply validity. That is, a reliable measure is measuring something consistently, but not necessarily what it is
supposed to be measuring. For example, while there are many reliable tests of specific abilities, not all of them would be valid
for predicting, say, job performance. In terms of accuracy and precision, reliability is precision, while validity is accuracy.
In experimental sciences, reliability is the extent to which the measurements of a test remain consistent over repeated tests of the
same subject under identical conditions. An experiment is reliable if it yields consistent results of the same measure. It is
unreliable if repeated measurements give different results. It can also be interpreted as the lack of random error in measurement.
[1]
In engineering, reliability is the ability of a system or component to perform its required functions under stated conditions for a
specified period of time. It is often reported in terms of a probability. Evaluations of reliability involve the use of many statistical
tools. See Reliability engineering for further discussion.
An often-used example used to elucidate the difference between reliability and validity in the experimental sciences is a common
bathroom scale. If someone that weighs 200 lbs. steps on the scale 10 times, and it reads "200" each time, then the measurement
is reliable and valid. If the scale consistently reads "150", then it is not valid, but it is still reliable because the measurement is
very consistent. If the scale varied a lot around 200 (190, 205, 192, 209, etc.), then the scale could be considered valid but not
reliable.
Estimation
Reliability may be estimated through a variety of methods that fall into two types: single-administration and multiple-
administration. Multiple-administration methods require that two assessments are administered. In the test-retest method,
reliability is estimated as the Pearson product-moment correlation coefficient between two administrations of the same measure.
In the alternate forms method, reliability is estimated by the Pearson product-moment correlation coefficient of two different
forms of a measure, usually administered together. Single-administration methods include split-half and internal consistency.
The split-half method treats the two halves of a measure as alternate forms. This "halves reliability" estimate is then stepped up
to the full test length using the Spearman-Brown prediction formula. The most common internal consistency measure is
Cronbach's alpha, which is usually interpreted as the mean of all possible split-half coefficients.[2] Cronbach's alpha is a
generalization of an earlier form of estimating internal consistency, Kuder-Richardson Formula 20.[2]
Each of these estimation methods isn't sensitive to different sources of error and so might not be expected to be equal. Also,
reliability is a property of the scores of a measure rather than the measure itself and are thus said to be sample dependent.
Reliability estimates from one sample might differ from those of a second sample (beyond what might be expected due to
sampling variations) if the second sample is drawn from a different population because the true reliability is different in this
second population.
===============================================

4. Explain the four different levels of measurement. Describe the criteria for good measurement.
There are different levels of measurement that have been classified into four categories. It is important for the researcher to
understand the different levels of measurement, as these levels of measurement play a part in determining the arithmetic and the
statistical operations that are carried out on the data.
In ascending order of precision, the four different levels of measurement are nominal, ordinal, interval, and ratio.
The first level of measurement is nominal measurement. In this level of measurement, the numbers are used to classify the data.
Also, in this level of measurement, words and letters can be used. Suppose there are data about people belonging to two different
genders. In this case, the person belonging to the female gender could be classified as F, and the person belonging to the male
gender could be classified as M. This type of assigning classification is nothing but the nominal level of measurement.
The second level of measurement is the ordinal level of measurement. This level of measurement depicts some ordered
relationship between the number of items. Suppose a student scores the maximum marks in the class. In this case, he would be
assigned the first rank. Then, the person scoring the second highest marks would be assigned the second rank, and so on. This
level of measurement signifies some specific reason behind the assignment. The ordinal level of measurement indicates an
approximate ordering of the measurements. The researcher should note that in this type of measurement, the difference or the
ratio between any two types of rankings is not the same along the scale.
The third level of measurement is the interval level of measurement. The interval level of measurement not only classifies and
orders the measurements, but it also specifies that the distances between each interval on the scale are equivalent along the scale
from low interval to high interval. For example, an interval level of measurement could be the measurement of anxiety in a
student between the score of 10 and 11, if this interval is the same as that of a student who is in between the score of 40 and 41.
A popular example of this level of measurement is temperature in centigrade, where, for example, the distance between 940C
and 960C is the same as the distance between 1000C and 1020C.
The fourth level of measurement is the ratio level of measurement. In this level of measurement, the measurements can have a
value of zero as well, which makes this type of measurement unlike the other types of measurement, although the properties are
similar to that of the interval level of measurement. In the ratio level of measurement, the divisions between the points on the
scale have an equivalent distance between them, and the rankings assigned to the items are according to their size.
The researcher should note that among these levels of measurement, the nominal level is simply used to classify data, whereas
the levels of measurement described by the interval level and the ratio level are much more exact.

1. Measure the cycle time

2. Measure the Business value, ROI and not the number of items or hours worked. Who cares if fruit that you made isn’t juicy.
3. Customer satisfaction – most will put their faith into customer survey – they allocate 1024 questions and forget to free the
customer off. The ultimate question is much superior approach, you ask just one question. It goes like this: Would you offer this
(product) to a friend? The scale would be from 1 to 10, 1 is recommending it to an enemy.

For a meaningful comparison, quality criteria for measurement properties are needed.
STUDY DESIGN AND SETTING: Quality criteria for content validity, internal consistency, criterion validity, construct
validity, reproducibility, longitudinal validity, responsiveness, floor and ceiling effects, and interpretability were derived from
existing guidelines and consensus within our research group.
RESULTS: For each measurement property a criterion was defined for a positive, negative, or indeterminate rating, depending
on the design, methods, and outcomes of the validation study.
CONCLUSION: Our criteria make a substantial contribution toward defining explicit quality criteria for measurement
questionnaires.
===============================
Validity is the extent to which a test measures what it claims to measure. It is vital for a test to be valid in order for the results to
be accurately applied and interpreted.

Validity isn’t determined by a single statistic, but by a body of research that demonstrates the relationship between the test and
the behavior it is intended to measure. There are three types of validity:
Content validity:
When a test has content validity, the items on the test represent the entire range of possible items the test should cover.
Individual test questions may be drawn from a large pool of items that cover a broad range of topics.

In some instances where a test measures a trait that is difficult to define, an expert judge may rate each item’s relevance. Because
each judge is basing their rating on opinion, two independent judges rate the test separately. Items that are rated as strongly
relevant by both judges will be included in the final test.
Criterion-related Validity:
A test is said to have criterion-related validity when the test is demonstrated to be effective in predicting criterion or indicators of
a construct. There are two different types of criterion validity:
•   Concurrent Validity occurs when the criterion measures are obtained at the same time as the test scores. This indicates the
extent to which the test scores accurately estimate an individual’s current state with regards to the criterion. For example, on a
test that measures levels of depression, the test would be said to have concurrent validity if it measured the current levels of
depression experienced by the test taker.

•   Predictive Validity occurs when the criterion measures are obtained at a time after the test. Examples of test with predictive
validity are career or aptitude tests, which are helpful in determining who is likely to succeed or fail in certain subjects or
occupations.
Construct Validity:
A test has construct validity if it demonstrates an association between the test scores and the prediction of a theoretical trait.
Intelligence tests are one example of measurement instruments that should have construct validity.

Reliability refers to the consistency of a measure. A test is considered reliable if we get the same result repeatedly. For example,
if a test is designed to measure a trait (such as introversion), then each time the test is administered to a subject, the results
should be approximately the same. Unfortunately, it is impossible to calculate reliability exactly, but there several different ways
to estimate reliability.
Test-Retest Reliability
To gauge test-retest reliability, the test is administered twice at two different points in time. This kind of reliability is used to
assess the consistency of a test across time. This type of reliability assumes that there will be no change in the quality or
construct being measured. Test-retest reliability is best used for things that are stable over time, such as intelligence. Generally,
reliability will be higher when little time has passed between tests.
Inter-rater Reliability
This type of reliability is assessed by having two or more independent judges score the test. The scores are then compared to
determine the consistency of the raters estimates. One way to test inter-rater reliability is to have each rater assign each test item
a score. For example, each rater might score items on a scale from 1 to 10. Next, you would calculate the correlation between the
two rating to determine the level of inter-rater reliability. Another means of testing inter-rater reliability is to have raters
determine which category each observations falls into and then calculate the percentage of agreement between the raters. So, if
the raters agree 8 out of 10 times, the test has an 80% inter-rater reliability rate.
Parallel-Forms Reliability
Parellel-forms reliability is gauged by comparing to different tests that were created using the same content. This is
accomplished by creating a large pool of test items that measure the same quality and then randomly dividing the items into two
separate tests. The two tests should then be administered to the same subjects at the same time.
Internal Consistency Reliability
This form of reliability is used to judge the consistency of results across items on the same test. Essentially, you are comparing
test items that measure the same construct to determine the tests internal consistency. When you see a question that seems very
similar to another test question, it may indicate that the two questions are being used to gauge reliability. Because the two
questions are similar and designed to measure the same thing, the test taker should answer both questions the same, which would
indicate that the test has internal consistency.
Validity refers to how well an experiment accurately represents the real world.

Reliability refers to how well it produces results (or, how well it doesn't fail).

You make an experiment more valid by including as many real world influencing factors as you can.

You make it reliable by eliminating problematic actions/materials that interfere with the experiment's ability to be successful.

Sometimes, you end up compromising one/both because they can interfere with each other

5. What is the importance of questionnaire in the marketing research? Explain the different steps involved in
designing a questionnaire. Prepare a questionnaire for a car manufacturing company which wants to obtain
information about how customers select the different brands of cars.

QUESTIONNAIRE

A questionnaire can help you collect information about what people do, what they have, and what
they think, know, feel or want.
Five different types of information may be distinguished. Any one or a combination of these types
of information may be included in a questionnaire.
------------------------------------------------------------------------------------------------
1.KNOWLEDGE - what people know; how well they understand something.

These questions ask what people know, are aware of, understand. Choices implied in knowledge
questions include correct/incorrect, accurate/inaccurate, what is accepted as true or factual. For
example:
What is the major cause of accidental deaths among children inside the home?
The most effective weight loss plan includes exercise. TRUE-FALSE
The ideal refrigerator temperature is .
-------------------------------------------------------------------------------------
2.BELIEF - what people think is true; an opinion.

Beliefs are judgments of what people think is true or false, what one thinks exists or does not
exist. Choices implied in belief questions include what did or did not happen. Questions may seek
perceptions of past, present or future reality. For example:
In your opinion, does positive self-esteem among adolescents prevent drug abuse?
Do you think that lower beef prices would increase beef consumption?
-------------------------------------------------------------------------------------------
3.ATTITUDE - how people feel about something; a preference.

Such questions ask people to indicate whether they have a positive or a negative feeling about a
subject, what they value. Words typically used in attitude questions include: prefer/not prefer;
desirable/undesirable; favor/oppose; should/should not; satisfactory/unsatisfactory. For example:
Do you favor or oppose controlled calving for your operation?
Do you agree or disagree that eating beef causes heart disease?
--------------------------------------------------------------------------------------------
4.BEHAVIOR - what people do Ñ may be a physical/manual or mental behavior.

Questions about behavior ask people what they have done in the past, what they are doing now, or
what they plan to do in the future. For example:
Have you ever attended an Extension program about cotton production?
Do you treat your cotton for bollworms?
How are you currently using the information gained in the food storage workshop?
---------------------------------------------------------------------------------------------
5.ATTRIBUTES - what people are; what people have.

Attributes are a person’s personal or demographic characteristics such as age, education,

occupation, income. Questions on attributes ask people about who they are rather than what they
do. For example:
Where do you currently live?
How many children do you have?
What percentage of your household income comes from off-farm employment?

To write meaningful questions, be clear about the intended uses and type of information desired.
If questions are vague, the questionnaire may elicit attitudes and beliefs when the intent is to
document actual behavior.

Likewise, questions related to each type of information present different writing problems.
Questions concerning attitudes tend to be more difficult to phrase, given the complexity underlying
most attitudes. Careful attention should be given to the wording of such questions. In contrast,
questions about knowledge, behaviors and attributes tend to be more direct.

The response or information you obtain is only as good as the question. To get the type of
information you want, you must ask the right question!
==================================================
------------------------------------------------------------------------------------------------
1.KNOWLEDGE - what people know; how well they understand something.

These questions ask what people know, are aware of, understand. Choices implied in knowledge
questions include correct/incorrect, accurate/inaccurate, what is accepted as true or factual. For
example:

-do you know who has produced the  car 'NANO'

-have you seen  the  car advertisement
-have you seen the  car
-are you  aware that  the  car is  a small car.
-do  you  know  the  price  of  the car  is  1 lac.
-------------------------------------------------------------------------------------
2.BELIEF - what people think is true; an opinion.

Beliefs are judgments of what people think is true or false, what one thinks exists or does not
exist. Choices implied in belief questions include what did or did not happen. Questions may seek
perceptions of past, present or future reality.

-do you  think  'NANO'  is  the smallest  in size  in the  indian  market.
-do  you  think it is  a comfortable  car.
-do you  like  the design of  the  car
-what  features  attracts  you most.
-is  the car  the cheapest  car  in the  indian market.
-------------------------------------------------------------------------------------------
3.ATTITUDE - how people feel about something; a preference.

Such questions ask people to indicate whether they have a positive or a negative feeling about a
subject, what they value. Words typically used in attitude questions include: prefer/not prefer;
desirable/undesirable; favor/oppose; should/should not; satisfactory/unsatisfactory.

-what  is your personal  feeling  about  this car.

-do  you  think  a  lot  of people will buy this car.
-will  you  go  for  this  car.
-if  so,  what  will  be  the  one  major factor, which  will make you buy  the  car.
-what  other  factor  will  push  you  to  buy  this car.
--------------------------------------------------------------------------------------------
4.BEHAVIOR - what people do Ñ may be a physical/manual or mental behavior.

Questions about behavior ask people what they have done in the past, what they are doing now, or
what they plan to do in the future.

-do  you own  a  car.

-if,  what  model  is  it.
-do  you  drive  your  own  vehicle.
-will  you  replace  your  car  with nano.
 -will  you  add ''NANO''  to  your  fleet.
-will you  recommend  this to  your  friend.
---------------------------------------------------------------------------------------------
5.ATTRIBUTES - what people are; what people have.

Attributes are a person’s personal or demographic characteristics such as age, education,

occupation, income. Questions on attributes ask people about who they are rather than what they
do. For example:

-can  I  ask  your  good  name.

-can  I  ask  your  age,please.
-where do  you  currently  live --just  the  location.
-are  you married.
-if  married,  do  you  have  children.
-can I ask --what  is  your  education level.
-what is  your profession.
-how  will  you  describe  your  lifestyle
conservative/ modern / upmarket
-if  employed, what will be  your income bracket.

To write meaningful questions, be clear about the intended uses and type of information desired.
If questions are vague, the questionnaire may elicit attitudes and beliefs when the intent is to
document actual behavior.

Likewise, questions related to each type of information present different writing problems.
Questions concerning attitudes tend to be more difficult to phrase, given the complexity underlying
most attitudes. Careful attention should be given to the wording of such questions. In contrast,
questions about knowledge, behaviors and attributes tend to be more direct.

The response or information you obtain is only as good as the question. To get the type of
information you want, you must ask the right question!
6. What is the significance of qualitative research in the marketing research? Explain the advantages and
limitations of qualitative research. Distinguish between qualitative and quantitative research with suitable
examples.

Quantitative Research
Quantitative research is about measuring a market and quantifying that measurement with data. Most often the data
required relates to market size, market share, penetration, installed base and market growth rates.
However, quantitative research can also be used to measure customer attitudes, satisfaction, commitment and a range of
other useful market data that can tracked over time.
Quantitative research can also be used to measure customer awareness and attitudes to different manufacturers and to
understand overall customer behaviour in a market by taking a statistical sample of customers to understand the market
as a whole. Such techniques are extremely powerful when combined with techniques such segmentation analysis and
mean that key audiences can be targeted and monitored over time to ensure the optimal use of the marketing budget.
At the heart of all quantitative research is the statistical sample. Great care has to be taken in selecting the sample and
also in the design of the sample questionnaire and the quality of the analysis of data collected.
Market research involves the collection of data to obtain insight and knowledge into the needs and wants of customers
and the structure and dynamics of a market. In nearly all cases, it would be very costly and time-consuming to collect
data from the entire population of a market. Accordingly, in market research, extensive use is made of sampling from
which, through careful design and analysis, Marketers can draw information about the market.

Qualitative Research
Qualitative Research is about investigating the features of a market through in-depth research that explores the
background and context for decision making.
There are two main qualitative methods - depth interviews and focus groups. However qualitative research can also
include techniques such as usability testing, brainstorming sessions and "vox pop" surveys.
Depth Interviewing
Depth interviews are the main form of qualitative research in most business markets. Here an interviewer spends time in
a one-on-one interview finding out about the customer's particular circumstances and their individual opinions.
The majority of business depth interviews take place in person, which has the added benefit that the researcher visits the
respondent's place of work and gains a sense of the culture of the business. However, for multi-national studies,
 telephone depth interviews, or even on-line depth interviews may be more appropriate.
Feedback is through a presentation that draws together findings across a number of depth interviews. In some
circumstances, such as segmentation studies, identifying differences between respondents may be as important as the
views that customers share.
The main alternative to depth interviews - focus group discussions - are typically too difficult or expensive to arrange
with busy executives. However, on-line techniques increasing get over this problem.
Group Discussions
Focus groups are the mainstay of consumer research. Here several customers are brought together to take part in a
discussion led by a researcher (or "moderator"). These groups are a good way of exploring a topic in some depth or to
encourage creative ideas from participants.
Group discussions are rare in business markets, unless the customers are small businesses. In technology markets where
the end user may be a consumer, or part of a team evaluating technology, group discussions can be an effective way of
understanding what customers are looking for, particularly at more creative stages of research

7. Define cluster analysis. Write the different approaches to cluster analysis with the help of an example. Also,
what are the factors to be considered while using cluster analysis technique?

Definition
Statistical classification technique in which cases, data, or objects (events, people, things, etc.) are sub-divided into groups
(clusters) such that the items in a cluster are very similar (but not identical) to one another and very different from the items in
other clusters. It is a discovery tool that reveals associations, patterns, relationships, and structures in masses of data.

There are two common types of clustering methods:

1. hierarchical methods and partitioning methods2,3. In the most common form of hierarchical clustering, the computation starts
by assigning each object to its own cluster. Then, in a process of agglomeration, the most “similar” objects (in a statistical sense)
are combined to form a new cluster, followed, in subsequent steps, by successively less similar objects. At each step in the
hierarchy, the number of clusters decreases, until at the end all objects are combined into one large cluster. Hierarchical
clustering programs typically produce a dendogram, a tree-like graphic representation of which objects are combined at each
stage of agglomeration. The major limbs of the dendogram identify the major object groupings.

2.In the partitioning approach, the researcher must first specify the number of clusters that he/she is interested in. Objects are
initially assigned to clusters on a random basis or on the basis of some prior knowledge or analysis. Using an iterative algorithm,
the program reassigns each object to clusters until no further improvement in within-cluster homogeneity is achieved. The
analysis is repeated for different numbers of clusters of interest to the researcher.

Cluster sampling refers to a sampling method that has the following properties.
1   The population is divided into N groups, called clusters.
2   The researcher randomly selects n clusters to include in the sample.
3   The number of observations within each cluster Mi is known, and M = M1 + M2 + M3 + ... + MN-1 + MN.
4   Each element of the population can be assigned to one, and only one, cluster.
Two types of cluster sampling methods.
1   One-stage sampling. All of the elements within selected clusters are included in the sample.
2   Two-stage sampling. A subset of elements within selected clusters are randomly selected for inclusion in the sample.

Cluster Sampling: Advantages and Disadvantages

Assuming the sample size is constant across sampling methods, cluster sampling generally provides less PRECISION  than
either SIMPLERANDOM  SAMPLING or STRATIFIED   SAMPLING . This is the main disadvantage of cluster sampling.
Given this disadvantage, it is natural to ask: Why use cluster sampling? Sometimes, the cost per sample point is less for cluster
sampling than for other sampling methods. Given a fixed budget, the researcher may be able to use a bigger sample with cluster
sampling than with the other methods. When the increased sample size is sufficient to offset the loss in precision, cluster
sampling may be the best choice.
Cluster Sampling  ADVANTAGES
Cluster sampling should be used only when it is economically justified - when reduced costs can be used to overcome losses in
precision. This is most likely to occur in the following situations.
1   Constructing a complete list of population elements is difficult, costly, or impossible. For example, it may not be possible to
list all of the customers of a chain of hardware stores. However, it would be possible to randomly select a subset of stores (stage
1 of cluster sampling) and then interview a random sample of customers who visit those stores (stage 2 of cluster sampling).

2   The population is concentrated in "natural" clusters (city blocks, schools, hospitals, etc.). For example, to conduct personal
interviews of operating room nurses, it might make sense to randomly select a sample of hospitals (stage 1 of cluster sampling)
and then interview all of the operating room nurses at that hospital. Using cluster sampling, the interviewer could conduct many
interviews in a single day at a single hospital. Simple random sampling, in contrast, might require the interviewer to spend all
day traveling to conduct a single interview at a single hospital.
Even when the above situations exist, it is often unclear which sampling method should be used. Test different options, using
hypothetical data if necessary. Choose the most cost-effective approach; that is, choose the sampling method that delivers the
greatest precision for the least cost.