JAN/APRIL 200 6 Marketing Researchicm.clsbe.lisboa.ucp.pt/docentes/url/mbaestmerc/week3.pdf · 2 MBACATÓLICA Marketing Research week 3 3 Observation Research The systematic process

1

1MBACATÓLICA Marketing Research week 3

MBACATÓLICAJAN/APRIL 2006

Fernando S. Machado

Marketing ResearchMarketing Research

Week 3

• Observation Research

• Surveys

• Measurement and Scaling


ObservationObservation ResearchResearch

ü What is Observation Research

ü Classification of Observation Methods

2


Observation ResearchThe systematic process of recording patterns of occurrences or behaviors - normally without communicating with the people involved.

• The needed information must be either observable or inferable• The behavior should be repetitive, frequent, or in some manner predictable• The behavior must be relatively short in duration

Defined:Defined:

General Conditions Needed:

General Conditions Needed:

Direct vs. Indirect: In indirect observation, the researcher observes some record of the behavior rather than the behavior itself.

Contrived vs. Natural: Is the setting made up by the researcher or are you observing a natural occurring event?

Open vs. Disguised: Do people know they're being watched?

Structured vs. Unstructured: In a structured observation the observer fills out a questionnaire-like form on each person or event observed

Types of observation research

Types of observation research


A Classification of Observation MethodsA Classification of Observation Methods

Observation Methods

Human Observation

Machine Observation

Internet Content Analysis

Trace Analysis

Observation Research:Some children taste samples from a potential children’s hotel menu.

3


• The study of human behavior in its natural context, involving observation of behavior and physical setting coupled with depth interviews to obtain participants’ perspective.

Ethnographic Research:Ethnographic Research:

Mystery ShoppingMystery Shopping

Human Observation Methods

One way mirror observations:One way mirror observations:

Audits:Audits:

• The researcher collects data by examining physical records or performing inventory analysis

• Practice of watching behaviors and activities from behind a one-way-mirror

• People pose as customers and shop at a company’s own stores or those of its competitors to collect data about customer-employee interactions and to gather observational data; they might also compare prices, displays, and the like.


• Eye movement recorders (Pulpilometer)

• Voice pitch analysis

• Traffic counters

• Galvanic skin responses

• Electroencephalograph

• People meters

• GPS

• Scanners

Mechanical Observation Methods

4


Predictive Customer Intelligence:• Web site should mirror the customers buying process• Click sequence should respond enhance predictive measures

• The links below are helpful:

Conversation Trackers:• Used to develop a cohesive message from thousands of conversation threads in newsgroups, chatrooms, listservs, message boards, etc.• Essentially an electronic version of Content Analysis

Observation Research on the Internet


Content Analysis and Trace Analysis

üContent analysis: The objective, systematic and quantitative description of the manifest content of a communication.

• Sifting through writings & summarizing• Reviewing articles for patterns

ü Trace analysis: data collection is based on physical traces, or evidence, of past behaviour.

5


• You see what people actually do - rather than what they say they do• Firsthand information is less prone to biases• The observational data can be executed quickly and relatively accurately• Electronic collection such as scanners is more efficient than manual counts• Clients can also observe their customers along with the researcher

• You see what people actually do - rather than what they say they do• Firsthand information is less prone to biases• The observational data can be executed quickly and relatively accurately• Electronic collection such as scanners is more efficient than manual counts• Clients can also observe their customers along with the researcher

• Only physical or behavior can be measured• Can’t measure attitudes, beliefs, intentions, or feelings • Not always a good representation of the general population• Interpretation is somewhat subjective depending on observation type• Data analysis is generally more qualitative than quantitative• It can be expensive and time consuming if subjects not readily available• Data can be time sensitive making predictive analysis tricky

• Only physical or behavior can be measured• Can’t measure attitudes, beliefs, intentions, or feelings • Not always a good representation of the general population• Interpretation is somewhat subjective depending on observation type• Data analysis is generally more qualitative than quantitative• It can be expensive and time consuming if subjects not readily available• Data can be time sensitive making predictive analysis tricky

Observation MethodsAdvantages:

Disadvantages:


SurveysSurveys

ü Uses of Surveys

ü Sources of Error in Surveys

ü Choosing between Survey Methods

6


SurveysInterviews with a large number of respondentsusing a predesigned questionnaire.

Surveys are used to capture a wide variety of information, such as:

ü Socio-demographics

ü Attitudes

ü Lifestyles

ü Decisions and actions

ü Measuring the relationship between actions & needs, desires, preferences, motives and goals


POPULATION RESPONDENT INTERVIEWERSample Question

Answer

Sampling error

Nonresponse due to refusals or not-at-home

Ambiguity of question

Interviewer error

Ambiguity of answer

Inaccuracy in response

•Inability to formulate a response

•Unwillingness to respond

Sources of Survey Error

7


Inaccuracy in ResponseInaccuracy in Response1. Inability to Respond

ü Telescopingü Averagingü Omission ü Cannot formulate an adequate answer

2. Unwillingness to Respond Accurately due to:ü Concern about invasion of privacyü Time pressure and fatigueü Prestige seeking and social desirability response biasü Courtesy biasü Uninformed response biasü Response style (e.g. tendency to favor affirmative responses)


Survey Survey MethodsMethods

TelephoneTelephone PersonalPersonal Mail/FaxMail/Fax

InIn--HomeHome Mall/Mall/PurchPurch. . InterceptIntercept

ComputerComputer--Assisted Assisted Personal Personal

InterviewingInterviewing

Traditional Traditional TelephoneTelephone

ComputerComputer--Assisted Assisted Telephone Telephone

InterviewingInterviewing

Mail Mail SurveySurvey

Mail Mail PanelPanel

A Classification of Survey MethodsA Classification of Survey Methods

ElectronicElectronic

EE--mailmail InternetInternet

Fax Fax SurveySurvey

8


Some Criteria for Choosing a Survey Method

ü Flexibility of data collection process

ü Diversity of questions

ü Use of physical stimuli

ü Control of data collection environment

ü Respondent acessibility/availability

ü Type of population

ü Sample control


Some Criteria for Choosing a Survey Method

ü Control of field force

ü Potential for interviewer bias

ü Quantity of data

ü Response rate

ü Perceived anonimity

ü Social desirability/sensitive information

ü Speed

ü Cost

9


Personal Interviews: Main advantages and Personal Interviews: Main advantages and disadvantagesdisadvantages

+ü Can arouse and keep

interest

ü Can build rapport

ü Ask complex questions with the help of visual and other aids

ü Clarify misunderstandings

ü High degree of flexibility

ü Probe for more complete answers

ü Do not need an explicit or current list of households or individuals

-ü Bias of Interviewer

ü Non-response Bias

ü Prestige seeking, social desirability and courtesy biases

ü Embarrassing/personal questions

ü Time Requirements

ü Cost Per Completed Interview Is High


Telephone Interviews: Main advantages Telephone Interviews: Main advantages and disadvantagesand disadvantages

+ ü Central location, under

supervision, at own hours

ü Traveling time is saved

ü Lower cost per completed interview

ü Intrusiveness of the phone and ease of call backs

ü Repeated call backs at lower cost

ü Less sample bias

-ü Inability to employ visual

aids or complex tasks

ü Can't be longer than 5-10 min. or they get boring

ü A capable interviewer essential

ü Sample bias as all people do not have phones, or are not listed

10


Mail Mail SuveysSuveys: Main advantages and : Main advantages and disadvantagesdisadvantages

+ü Lower cost

ü More accurate results among those completing the survey

ü Reliable answers as no inhibiting intermediary

ü Survey answered at respondents discretion

-ü No or little control over:

• Identity of the respondent• Whom the respondent

consults• Speed of the response • Order in which the

questions are answered

ü No opportunity to clarify questions

ü Subject to availability of a mailing list

ü Response rate is poor


Web/Email Web/Email SuveysSuveys: Main advantages and : Main advantages and disadvantagesdisadvantages

+ü Lower cost

ü Direct access

ü Can get quick information

ü Can download results

ü Can contact hard-to-reach people

-ü Low response rates

(particularly on email)ü No or little control over:

• Identity of the respondent• Whom the respondent

consults• Speed of the response

ü No opportunity to clarify questions

ü Not always representative of the population

11


Combination of Survey MethodsCombination of Survey Methods

Telephone request

Fax survey Folow-up telephone

Telephone requestfor permission to mail a questionnaire

Mail Survey Telephone follow-up

Telephone or personal

Self-administered questionnaire delivered by “interviewer”

To be either picked-up or mailed in


Measurement and ScalingMeasurement and Scaling

ü Attitudes and their Components

ü Concepts of Measurement and Scaling

ü Primary Scales of Measurement

ü Comparative and Non-Comparative Scalesü Scale Decisions and Criteria for Scale Definition

ü Multi-Item Scales

12


What Are Attitudes?What Are Attitudes?

ü Mental states used by individuals to structure the way they perceive their environment and guide the way they respond to it

ü Majority of questions in marketing research are designed to measure attitudes.

ü Attitudes lead to behavior. Since management wants to understand and influence behavior, it is interesting to measure attitudes.


Components of AttitudeComponents of Attitude

Cognitive or Knowledge Component: represents a person’s information about an object. This information includes:

ü Awareness of existence on the object

ü Beliefs about the characteristics or attributes of the object

ü Judgments about the relative importance of each of the attributes

13


Components of AttitudeComponents of Attitude (Cont.)(Cont.)

Affective or Liking Component: summarizes a person’s overall feelings toward an object, situation, or person, on a scale of like-dislike or favorable-unfavorable

– When there are several alternatives, liking is expressed in terms of preference

Intention or Action Component: refers to a person’s expectations of future behavior toward an object

- Advantage: Incorporates information about a respondent’s ability or willingness to pay for the object, or other taken action


Measurement and ScalingMeasurement and Scaling

Measurement

ü Standardized process of assigning numbers or other symbols to certain characteristics of objects of interest according to pre-specified rules.

Scaling

ü Process of creating a continuum on which objects are located according to the amount of the measured characteristic that the object possesses

14


Scale Basic Characterist ics

C o m m o n Examples

Market ing E x a m p l e s

Permiss ible Stat ist ics Descript ive Inferent ial

N o m i n a l Numbers iden t i fy & classify objects

Social Securi ty nos. , number ing o f football p layers

Brand nos . , s tore types

Percentages, mode

C h i-square , binomial test

O r d i n a l Nos. indicate the relative positions of objects but not the magni tude of differences be tween them

Quali ty rankings, rankings of teams in a tournament

Preference rankings, marke t posi t ion, social c lass

Pe rcen tile, med ian

R a n k- order correlation, Fr iedman A N O V A

Interval Differences be tween objec ts can be compared , zero point is arbi t rary

Tempera ture (Fahrenheit , Celsius)

Att i tudes, opinions, index nos .

Range , mean , s tandard deviation

Product -m o m e n t correlation, t tests, regression

Ratio Zero point is fixed, ratios of sca le values can be compared

Length , weight

Age, sa les , income, cos ts

Geomet r i c mean , ha rmonic m e a n

Coefficient of variation

Primary Scales of MeasurementPrimary Scales of Measurement


Nominal Yes No No No•uses labels•categorizes

Ordinal Yes Yes No No•ranks responses•determines order

not distance

Interval Yes Yes Yes No•distance between

descriptors is known

Ratio Yes Yes Yes Yes•has zero as reference point•numeric

Scale Description Order Distance Origin

LeastSophisticated

MostSophisticated

Primary Scales of MeasurementPrimary Scales of Measurement

15


Nominal Nominal OrdinalOrdinal RatioRatioScale Scale Scale Scale ScaleScale

PreferencePreference $ spent$ spent last last No. Store Rankings Rankings 3 mont3 monthshs1. Lord & Taylor1. Lord & Taylor2. Macy’s3. Kmart4. Rich’s5. J.C. Penny6. Neiman Marcus7. Target8. Saks Fifth Avenue9. Sears10.Wal-Mart

Illustration of Primary Scales of Illustration of Primary Scales of MeasurementMeasurement

7 79 5 15 02 25 7 17 2008 82 7 17 03 30 6 16 1001 10 7 17 2505 53 5 15 359 95 4 14 06 61 5 15 1004 45 6 16 0

IntervalScale Preference Ratings1-7 11-17


Scaling TechniquesScaling Techniques

NonNon--comparativecomparativeScalesScales

Comparative Comparative ScalesScales

Paired Paired ComparisonComparison

Rank Rank OrderOrder

Constant Constant SumSum

QQ--Sort and Sort and Other Other ProceduresProcedures

A Classification of Scaling TechniquesA Classification of Scaling Techniques

Comparative: Compares how one rates objects, issues, etc to other objects

Non-comparative : Compares how one rates an object, issues, etc. relative to itself

16


Comparative ScalesComparative Scales

Rank-order Scales

ü Scale in which the respondent compares one item with another or a group of items against each other and ranks them

Paired-Comparison Scales

ü The brands to be rated are presented two at a time, so each brand in the category was compared once to every other brand

ü Brands are rated on a given 10 pts. that are then divided between the two brands


Preference for Toothpaste Brands Using Preference for Toothpaste Brands Using Rank Order ScalingRank Order Scaling

Instructions: Instructions: Rank the various brands of toothpaste in order of preference. BeRank the various brands of toothpaste in order of preference. Begin gin by picking out the one brand that you like most and assign it a by picking out the one brand that you like most and assign it a number 1. Then find number 1. Then find the second most preferred brand and assign it a number 2. Continthe second most preferred brand and assign it a number 2. Continue this procedure ue this procedure until you have ranked all the brands of toothpaste in order of puntil you have ranked all the brands of toothpaste in order of preference. The least reference. The least preferred brand should be assigned a rank of 8. preferred brand should be assigned a rank of 8.

No two brands should receive the same rank number.No two brands should receive the same rank number. The criterion of preference is The criterion of preference is entirely up to you. There is no right or wrong answer. Just try entirely up to you. There is no right or wrong answer. Just try to be consistent.to be consistent.

BrandBrand Rank OrderRank Order1. Crest1. Crest __________________2. Colgate2. Colgate __________________3. 3. GleemGleem _________ _________ 4.4. MacleansMacleans __________________5. Ultra 5. Ultra BriteBrite __________________6. Close Up6. Close Up __________________7. 7. PepsodentPepsodent _________ _________

8. Stripe8. Stripe __________________

17


Obtaining Shampoo Preferences Obtaining Shampoo Preferences Using Paired ComparisonsUsing Paired Comparisons

Instructions: We are going to present you with ten pairs of shampoo brands. For each pair, please indicate which one of the two brands of shampoo you would prefer for personal use. Recording Form: Jhirmack Finesse Vidal

SassoonHeads &Shoulders

Pert

Jhirmack 0 0 1 0Finesse 1a 0 1 0Vidal Sassoon 1 1 1 1Head & Shoulders 0 0 0 0Pert 1 1 0 1Number of TimesPreferredb

3 2 0 4 1

aA 1 in a particular box means that the brand in that column was preferred over the brand in the corresponding row. A 0 means that the row brand was preferred over the column brand. bThe number of times a brand was preferred is obtained by summing the 1s in each column.


Paired Comparison ScalingPaired Comparison ScalingThe most common method of taste testing is paired comparison. The consumer is asked to sample two different products and select the one with the most appealing taste. The test is done in private and a minimum of 1,000 responses is considered an adequate sample. A blind taste test for a soft drink, where imagery, self-perception and brand reputation are very important factors in the consumer’s purchasing decision, may not be a good indicator of performance in the marketplace. The introduction of New Coke illustrates this point. New Coke was heavily favored in blind pa ired comparison taste tests, but its introduction was less than successful, because image plays a major role in the purchase of Coke.

A paired comparison taste test

18


Comparative ScalesComparative Scales (Contd.)(Contd.)

Constant-sum scale

ü Respondents allocate a fixed number of rating points among serial objects to reflect relative preference

Example: Importance of Toilet Soap Attributes Example: Importance of Toilet Soap Attributes InstructionsInstructions

On the next slide are eight attributes of bathing soaps. Please allocate 100 points among the attributes so that your allocation reflects the relative importance you attach to each attribute. The more points an attribute receives, the more important the attribute is. If an attribute is not at all important, assign it zero points. If an attribute is twice as important as some other attribute, it should receive twice as

many points.


FormAverage Responses of Three Segments

Attribute Segment I Segment II Segment III

1. Mildness2. Lather 3. Shrinkage4. Price 5. Fragrance6. Packaging 7. Moisturizing8. Cleaning Power

Sum

8 2 42 4 173 9 7

53 17 99 0 197 5 95 3 20

13 60 15100 100 100

19


Scaling TechniquesScaling Techniques

NonNon--comparativecomparativeScalesScales

Comparative Comparative ScalesScales

Continuous Continuous rating Scalesrating Scales

MultiMulti--item item rating Scalesrating Scales

Semantic Semantic DifferentialDifferential StapelStapel

A Classification of Scaling TechniquesA Classification of Scaling Techniques

SingleSingle--item item rating Scalesrating Scales

ThurstoneLikert


Single Item nonSingle Item non--comparative Scalescomparative Scales

ü Itemized-category scale (most widely used by marketing researchers)

Overall, how satisfied are you with your present health insurance plan?

____ Very satisfied____ Quite satisfied____ Somewhat satisfied____ Not at all satisfied.

20


1) Number of Categories Although there is no single, optimal number, traditional guidelines suggest that there should be between five and nine categories

2) Balanced vs. unbalanced In general, the scale should be balanced to obtain objective data

3) Odd/ even no. of categories If a neutral or indifferent scale response is possible from at least some of the respondents, an odd number of categories should be used

4) Forced vs. non-forced In situations where the respondents are expected to have no opinion, the accuracy of the data may be improved by a non-forced scale

5) Verbal description An argument can be made for labeling all or many scale categories. The category descriptions should be located as close to the response categories as possible

6) 6) Physical formPhysical form A number of options should be tried and the best selected

Summary of Itemized Scale DecisionsSummary of Itemized Scale Decisions


Jovan Musk for Men is Jovan Musk for Men isExtremely goodExtremely good Extremely goodExtremely goodVery goodVery good Very goodVery goodGoodGood GoodGoodBad Bad Somewhat goodSomewhat goodVery badVery bad Bad Bad Extremely badExtremely bad Very badVery bad

Balanced and Unbalanced ScalesBalanced and Unbalanced Scales

21


A variety of scale configurations may be employed to measure the gentleness of Cheer detergent. Some examples include:Cheer detergent is:1) Very harsh --- --- --- --- --- --- --- Very gentle

2) Very harsh 1 2 3 4 5 6 7 Very gentle

3) . Very harsh.. Neither harsh nor gentle . . Very gentle

4) ____ ____ ____ ____ ____ ____ ____ Very Somewhat Neither harsh Somewhat Gentle Very

harsh Harsh harsh nor gentle gentle gentle5)

Very Neither harsh Very harsh nor gentle gentle

Rating Scale Configurations

-3 -1 0 +1 +2-2 +3


Some Criteria for Scale Definition

üMinimize response bias• Tendency to be “nice” with a politely negative or neutral category• End-point avoidance

ü Clear semantic interpretation

ü Discriminating power

ü Ease of use for respondents

ü Fit with delivery method

22


Excelent Very Good Good Fair Poor

Excelent Good Fair Poor

80% 15% 3% 2%

70% 20% 5% 3% 2%

Number of categories, scale balance and verbal description of categories

But: Increasing the number of categories is notalways a good solution


Scale Point Definitions and the Problem of Interval Scales

Psychometric scaling: respondents are asked to give a psychological scale value for each verbal descriptor

10 = The best thing that can be said about someone or some company0= The worst thing that can be said about someone or some company

23


Psychological values of some descriptors for groups of respondents (21 point scale)


Analysis of a commonly used evaluation scale

Interpoint psychological distances

24


MultipleMultiple--item Scalesitem Scales

ü Developed to measure a sample of beliefs toward the attitude objects and combine the set of answers into an average score


MultipleMultiple--item Scalesitem Scales (Contd.)(Contd.)

Likert Scale

ü Requires respondent to indicate degree of agreement or disagreement with a variety of statements related to the attitude object

ü Summated Scale

- Scores on individual items are summed to give total score for respondents

ü Likert Scale Is Uni-dimensional- Each item/statement measures some aspect of a

single common factor

25


Likert Scale

Strongly agree

AgreeNeither agree or disagree

Disagr. Strongly disagree

1. People look far better if they have a tan

1 2 3 4 5

2. I like it if I have one of the deepest tans of my friends

1 2 3 4 5

3. I become more attractive if I have a tan

1 2 3 4 5

Please tell me which category describes you or your opinions the best. (Show statements and categories)


MultipleMultiple--item Scales item Scales (Contd.)(Contd.)

Semantic-differential Scale

ü Respondents rate each attribute object on a number of five or seven-point rating scales bounded by polar adjectives or phrases

ü With bipolar scale, the midpoint is a neutral point

ü Used to measure, brand, product and company image

ü Pairs of objects or phrases often correspond to product/ service attributes

ü Avoid "halo" effect by placing negative pole on either side

ü Category increments are treated as interval scales so group mean values can be computed for each object on each scale

ü May also be analyzed as a summated rating scale

26


1) Rugged :---:---:---:---:---:---:---: Delicate

2) Excitable :---:---:---:---:---:---:---: Calm

3) Uncomfortable :---:---:---:---:---:---:---: Comfortable

4) Dominating :---:---:---:---:---:---:---: Submissive

5) Thrifty :---:---:---:---:---:---:---: Indulgent

6) Pleasant :---:---:---:---:---:---:---: Unpleasant

7) Contemporary :---:---:---:---:---:---:---: Obsolete

8) Organized :---:---:---:---:---:---:---: Unorganized

9) Rational :---:---:---:---:---:---:---: Emotional

10) Youthful :---:---:---:---:---:---:---: Mature

11) Formal :---:---:---:---:---:---:---: Informal

12) Orthodox :---:---:---:---:---:---:---: Liberal

13) Complex :---:---:---:---:---:---:---: Simple

14) Colorless :---:---:---:---:---:---:---: Colorful

15) Modest :---:---:---:---:---:---:---: Vain

A Semantic Differential Scale for Measuring SelfA Semantic Differential Scale for Measuring Self--Concepts, Person Concepts, and Product ConceptsConcepts, Person Concepts, and Product Concepts



Stapel Scaleü Uses one pole rather than two opposite polesü Respondents select a numerical response categoryü High positive score reflects good fit between adjective

and objectü No need to assure bipolarityü Used to measure attitudes and images

Example: Super Bock Beer+3 +3 +3+2 +2 +2

Heavy +1 Consistent +1 Tangy +1-1 Quality -1 -1-2 -2 -2-3 -3 -3

27


Scale Basic Characteristics

Examples Advantages Disadvantages

Likert Scale Degrees of agreement on a 1 (strongly disagree) to 5 (strongly agree) scale

Measurement of attitudes

Easy to construct, administer, and understand

More time-consuming

Semantic Differential

Seven-point scale with bipolar labels

Brand, product, and company images

Versatile Controversy as to whether the data are interval

Stapel Scale Unipolar ten-point scale, -5 to +5, without a neutral point (zero)

Measurement of attitudes and images

Easy to construct, administer over telephone

Confusing and difficult to apply

Basic MultiBasic Multi--item Scalesitem Scales



Thurstone Scale

ü Also known as the method of equal-appearing intervals; objective is to obtain a unidimensionalscale with interval properties

Step 1:• Generate a large number of statements or adjectives

reflecting all degrees of favorableness toward the attitude objects

Step 2:• A group of judges is given this set of items and asked

to classify them according to their degree of favorableness or unfavorableness

28



Thurstone Scale

ü The scale is administered by asking each respondent to select those statements which best reflect her feelings toward the attitude object. The respondent’s attitude score is the average of the scale scores of the chosen statements.

Advantages• Easy to administer

• Requires minimum instructions

Limitations• Time consuming

• Expensive to construct

• Not as much diagnostic value as a Likert scale

• Values depend on the attitudes of the original judges

Documents

JAN/APRIL 200 6 Marketing Researchicm.clsbe.lisboa.ucp.pt/docentes/url/mbaestmerc/week3.pdf · 2 MBACATÓLICA Marketing Research week 3 3 Observation Research The systematic process