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General Introduction of the project
In common man’s term Market Research is simply collecting/gathering data about the industry, market trends and environment, competitors position in the industry and most important all the possible information about the people who can be the potential customer of your product or service.
Being an intern, I was supposed to go through the similar work of collecting information about the market trends, customer’s tastes & preference which are ever changing as per the change in trends or their income level, standard of living, etc. than study the demographics of what could be the client’s or company’s potential customer and so on.
So during the course of my internship I worked on various different types of projects (Sparkle-Comparative study of English business news channels, TATA-AIA Promotor, TCL-CEQ and Vision) which involved different kind of responsibilities, different challenges and altogether different requirements. The projects done were performed for various Clients. In some cases respondent and sometimes even the interviewer is not aware about whom the Client is, this is known as “Blind Study”
1.2 Objectives of study
The objectives mark the right direction to carry out any study. So, the objectives of this study are as under:-
To learn and understand the market segmentation of English Business News Channels.
To identify the English Business News Channel needs of the Indian population with respect to their preferences like market news, non-market news, domestic news and international news.
To study the various factors which influence the purchase of English Business News Channels.
To identify various problems faced by consumers.
To find out whether any problems relating to English Business News Channels, Experience, and Customer Satisfaction
To understand what kind of services, features do customers expect and want from the English Business News Channels.
To understand what features of English Business News Channels that affect customer choice.
1.3 Scope of Study
In the present scenario as our economy is growing and the per capita income is rising people at large have got more money with them to invest in the market, who according to their choice invest in share market, government bonds, mutual funds, real estate. If a consumer chooses to invest in stock market there are hundreds of companies listed on the stock exchange, if he chooses to invest by taking the help of English Business News Channels and following the experts advice on news channels such as CNBC TV 18, ET NOW, Bloomberg TV India, NDTV Profit/ NDTV Prime, etc.; so in order to study the consumer preferences, the various factors that influence the viewership of a consumer towards English Business News Channels, a sample of 50 was chosen from Mumbai.
1.4 Type of Studies
There are numerous ways in which the studies can be classified for a MR firm. However studies at Nielsen are predominately classified as follows:
The studies are broadly classified as CAPI and PAPI studies.
CAPI Studies: Computer Aided Personal Interview
It is an interviewing technique in which the respondent or interviewer uses a computer to answer the questions. One more technique similar to CAPI is CATI- Computer aided telephone interviewing, except that the interview takes place in person instead of over the telephone. This method is usually preferred over a telephone interview when the questionnaire is long and complex. It has been classified as a personal interviewing technique because an interviewer is usually present to serve as a host and to guide the respondent. If no interviewer is present, the term Computer-Assisted Self Interviewing (CASI) may be used.
PAPI Studies: Paper and Pencil Interview studies
A traditional method used for surveying that involves respondents filling out a physical paper questionnaire that had been administered by an interviewer.
1.5 Questionnaire Stage
Questionnaire is one of the most important tools for collecting data in Quantitative Studies. RPM –Quantitative Team uses questionnaire to carry out following types of studies:
a. CAPI (Computer Aided Personal Interview)
b. CATI (Computer Aided Telephonic Interview)
c. PAPI (Paper and Pencil Interview)
1.6 Briefing Stage
The briefing stage involves Briefing from RPM to Field Team. The brief is provided through a Field Briefing Note (FBN).
A FBN provided as an aid to collect data. It helps to explain the field team regarding the objective of the study and the process by which the data has to be collected. Moreover it further explains every question in the questionnaire for easy understanding of the field team. It specifies the data which is required to be captured under each question.
1.7 Fieldwork Stage
Once RPM is through with the Briefing Stage, the project goes live and Data acquisition task gets started by the Fieldwork Team. Given below is the role of RPM team during this stage:
To see if the data collection process is carried out in accordance with the timelines design.
To see if recommended sample size and quota is being covered.
To keep the track of fieldwork material being dispatched.
To resolve issues which arise during the fieldwork.
1.8 The list of the Clients for which I worked is as follow:
TCL - CEQ
TCL – Channel Finance
TCL – Equipment Finance
TATA - AIA
1.9 Research methodology
Research methodology is the process used to collect information and data for the purpose of making business decisions. The methodology may include publication research, interviews, surveys and other research techniques, and could include both present and historical information.
Primary source: The data has been collected through personal interview of the respondent with the help of questionnaires.
Secondary source: The database provided by the insurance industry.
Questionnaires often seem a logical and easy option as a way of collecting information from people. They are actually rather difficult to design and because of the frequency of their use in all contexts in the modern world, the response rate is nearly always going to be a problem (low) unless you have ways of making people complete them and hand them in on the spot (and this of course limits your sample, how long the questionnaire can be and the kinds of questions asked). As with interviews, you can decide to use closed or open questions, and can also offer respondents multiple choice questions from which to choose the statement which most nearly describes their response to a statement or item. Their layout is an art form in itself because in poorly laid out questionnaires respondents tend, for example, to repeat their ticking of boxes in the same pattern.
The questionnaire was comprised of both closed ended and open ended questions. This helped to keep the survey within well-defined parameters while at the same time
1.9.1 Tools for Data Collection
Secondary data collection
1.9.2 Limitations of the study
By working on this project, a lot of knowledge about the insurance sector in INDIA has been gained. However, there were many limitations or problems that I faced while working on this project. The following are the limitations:
Small Sample Size: The study was relied more on the primary data and the data was collected from a small population of 200, therefore, the findings may not be applicable in their true sense when it is applied in general.
Time Constraint: As the duration of internship was only 8 weeks, therefore, it was very difficult to conduct the entire study about the vast insurance sector.
Small Universe: The study is restricted only to some areas of Mumbai which ignores the entire public in general.
Biased Responses: The answers of the customers could have been biased which may affect the analysis of the study.
What is Market Research?
The process of gathering, analysing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face.
It is the process of collecting valuable information to help you find out if there is a market for your proposed product or service. The information gathered from market research helps budding entrepreneurs make wise and profitable business decisions.
Market research is any organized effort to gather information about target markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research; however, marketing research is concerned specifically about marketing processes, while market research is concerned specifically with markets.
Market research is a key factor to maintain competitiveness over competitors. Market research provides important information to identify and analyse the market need, market size and competition.
Market research, which includes social and opinion research, is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making.
2.2 History of Market Research:
Market research began to be conceptualized and put into formal practice during the 1920s, as an offshoot of the advertising boom of the Golden Age of radioin the United States. Advertisers began to realize the significance of demographics revealed by sponsorship of different radio programs.
2.3 Using Market Research
Market research is an extremely valuable tool that can help you:
make decisions about pricing, promotion, product and location
understand how your products or services fit your target market
deliver and expand your products and services
better understand how your competitors operate
understand the current environment of your industry
identify new opportunities
give context to your performance and reputation
test concepts, new products or marketing ideas
Minimise risks to your business.
Market research is useful at all stages of the business life cycle. If you are starting a business, it can help you work out your competitive advantage. If your business is already established, you can use market research to develop new products and services and target customers more effectively.
Researching your market helps you target your ideal customer, identify new market opportunities and improve your sales performance.
The key to any successful business is to understand what it is that your customers want and giving this to them in a way that is profitable for you. Many entrepreneurs make the mistake early on of thinking that they know what their customers want without ever asking them. This can result in some very expensive mistakes later on.
In order to find out what exactly it is that your customers want you must undertake a process called ‘Market Research’.
Successful businesses make regular market research the foundation of their marketing and sales planning. You can develop strong marketing strategies based on what you find out about your products and services, your customers, your competitors, your industry and the challenges in your marketplace.
Market research can also help you identify areas of your business that could be updated or changed.
It's important to clearly define your market research goals so that you can give yourself the best chance of finding accurate and useful results.
The exchange between sellers (supply) and buyers (demand) for particular goods or services is called a market. A market does not necessarily exist in a single location, nor need it be a real location – products can be bought and sold online.
Markets change constantly and businesses need to have a clear understanding of both the supply and demand. The principal role of market research, therefore, is to provide a business with a comprehensive view of consumers in order to develop products and services that satisfy their needs better than the competition. Also, given the increased complexity of the business environment, it is no longer enough to make key decisions using a ‘gut-feel’ approach alone.
Decisions need to be informed and market research helps to support this process, significantly reducing the level of financial risk attached with investment decisions.
Market research involves the capture and analysis of consumer, competitor and market trend data. It also influences decisions to target capital investment on projects that will offer the best return on that investment, such as opening a new store or entering a new market, etc.
Market research provides consumer feedback. It is essential for researcher to have this dialogue with the consumer to gain insight into what they think about its range of products, brands and services. This enables the business to meet its demands and outperform the competition. It helps the business develop a clear and informed strategic business plan which all business colleagues can work towards fulfilling. For example, this information can create a winning marketing mix to target promotions to reach different customer groups or influence decisions on range planning in new stores.
2.4 Use of Market Research for Business/Planning:
Market research is a way of getting an overview of consumers' wants, needs and beliefs. It can also involve discovering how they act. The research can be used to determine how a product could be marketed. Peter Drucker believed market research to be the quintessence of marketing.
Factors that can be investigated through market research include:
Through Market information one can know the prices of different commodities in the market, as well as the supply and demand situation. Market researchers have a wider role than previously recognized by helping their clients to understand social, technical, and even legal aspects of markets.
Market segmentation is the division of the market or population into subgroups with similar motivations. It is widely used for segmenting on geographic differences, personality differences, demographic differences, technographic differences, use of product differences, psychographic differences and gender differences. For B2B segmentation firmographics is commonly used.
Market trends are the upward or downward movement of a market, during a period of time. Determining the market size may be more difficult if one is starting with a new innovation. In this case, you will have to derive the figures from the number of potential customers, or customer segments..
SWOT is a written analysis of the Strengths, Weaknesses, Opportunities and Threats to a business entity. Not only should a SWOT be used in the creation stage of the company but could also be used throughout the life of the company. A SWOT may also be written up for the competition to understand how to develop the marketing and product mixes.
Another factor that can be measured is marketing effectiveness. This includes:
Advertising the research
Marketing mix modelling
Simulated Test Marketing
2.5 Use of Ansoff's Matrix as an tool to perform Market Research:
Research can also provide information about the size and performance of markets. It can inform a business about who the key competitors are, what they are doing, and their market share. Potential areas of opportunity within an international, national and local context can also be identified. By using tools such as an Ansoff’s matrix to assess the levels of risk, Researcher can then decide which marketing strategies to focus on.
Market Penetration– winning greater market share in its existing markets.
Market Development– entering new countries or new retail sectors.
Product Development– acquiring or developing new products or brands.
Diversification– taking the business in a completely new direction.
Accurate and thorough information is the foundation of all successful business ventures because it provides a wealth of information about prospective and existing customers, the competition, and the industry in general. It allows business owners to determine the feasibility of a business before committing substantial resources to the venture.
Market research provides relevant data to help solve marketing challenges that a business will most likely face--an integral part of the business planning process. In fact, strategies such as market segmentation (identifying specific groups within a market) and product differentiation (creating an identity for a product or service that separates it from those of the competitors) are impossible to develop without market research.
2.6 Market Research Process:
The market research process involves researching your customers, competitors, and industry and market environment. You can research each of these separately, and then combine the results to get an overall view of where your business fits in the market.
Undertaking your own market research is generally more cost-effective than hiring someone else to do it for you. It can also help you build stronger relationships with your customers, and learn valuable market research skills and knowledge. However, conducting your own market research can be time-consuming and may require specialised skills to make informed judgements and objective recommendations.
If you plan to conduct your own market research, consider these important steps. Making an initial investigation-
Before you start researching your market, conduct an initial investigation to work out what kind of information you need and what you can expect to get. You need to check that you have enough sources to get useful information. If not, you may need to reconsider your market research objectives. Alternatively, you may find there is a lot of information already available to you, so you can reduce the scope of your research to save time and money.
2.6.1 Planning your Market Research:
Your initial investigation will help you work out what methods and sources you will need to use to meet your objectives. You may choose to combine different research approaches to gather the right information.
You will also need to consider how much time and money you have to conduct your market research and if your staff will be able to help. This will help you work out how in-depth and comprehensive your research will be. It will also impact on the methods that you use.
2.6.2 Collecting the data:
Once you have a clear plan for your research, you can start collecting data. It's important to stay true to your planning - stick to the sources you have identified. Also, make sure you monitor your budget carefully - don't let your quest for information exceed your budget.
To get the most out of your market research, make sure all the information you collect is as detailed and complete as possible. Incomplete data can produce misleading or irrelevant results.
2.6.3 Processing the data:
Keep your research objectives in mind when you process your data. Coming up with some practical ways to process the information and data you have uncovered will make it easier later on to reach conclusions.
These may include:
Using tables to list and group your information
Identifying major trends and themes as well as strengths, weaknesses, opportunities and threats.
Writing a sentence for every major point you uncover (to help you gain an accurate picture of what the key points and opinions are), and listing them according to the number of times the point appears.
2.6.4 Interpreting the data:
Interpreting or analysing the results you have gained is a key step to getting the most from your market research. It is essential to gain a thorough understanding of what your research is saying - as you may get some unexpected results.
As you review your information and start to interpret what it means for you, consider whether you have gathered enough data to give you conclusive results. You may need to do further research to reach a conclusion.
2.6.5 Reaching conclusions:
Your data analysis provides the basis for drawing conclusions. Ultimately, market research provides information that reduces risk and uncertainty and increases your chance of business success. The final conclusions should meet your initial objectives; consider what options you have discovered in your analysis to best meet your larger business objectives.
To reach conclusions about your research:
examine the major themes and trends
review the tables you created when processing your data and refer to your objectives to be sure you have enough information to reach informed conclusions
assess and separately list the strengths, weaknesses, opportunities and threats you have identified
look for gaps in your information that make it difficult to draw a definitive conclusion from the results of your research
Chapter 3: Research Methodology
3.1 Formation of Problem
Specify the Research Objectives - A clear statement of objectives will help you develop effective research.
Review the Environment or Context of the Research Problem - As a marketing researcher, you must work closely with your team. This will help you determine whether the findings of your project will produce enough information to be worth the cost. In order to do this, you have to identify the environmental variables that will affect the research project.
Explore the Nature of the Problem - Research problems range from simple to complex, depending on the number of variables and the nature of their relationship. If you understand the nature of the problem as a researcher, you will be able to better develop a solution for the problem.
Define the Variable Relationships - Marketing plans often focus on creating a sequence of behaviours that occur over time, as in the adoption of a new package design, or the introduction of a new product. During the problem formulation stage, you will want to generate and consider as many courses of action and variable relationships as possible.
The Consequences of Alternative Courses of Action - There are always consequences to any course of action. Anticipating and communicating the possible outcomes of various courses of action is a primary responsibility in the research process.
Importance of Hypothesis in Research
Hypothesis is a tentative statement about the probable solution to a problem of research study well in advance prior to conducting the research study. It is a proposed statement made on the basis of limited evidence that can be proved or disproved and is used as a starting point for further investigation.
Research studies are expected to have number of data which need to be analysed using statistical tools ultimately to arrive at research findings. Hence it becomes inevitable for the Researcher to establish one main Hypothesis and many sub Hypothesis to support the main Hypothesis.
As an Intern Trainee I was not supposed to conduct any statistical analysis of data. Thus there was No Hypothesis formed during my project work.
Market research involves two types of data:
Primary Information –
This is research you compile yourself or hire someone to gather for you. When conducting primary research, you can gather two basic types of information: exploratory or specific. Exploratory research is open-ended, helps you define a specific problem, and usually involves detailed, unstructured interviews in which lengthy answers are solicited from a small group of respondents. Specific research, on the other hand, is precise in scope and is used to solve a problem that exploratory research has identified. Interviews are structured and formal in approach. Of the two, specific research is the more expensive.
Primary research is sometimes known as field research. This is because it involves gathering data through new research. This data can be collected in either a quantitative or qualitative format.
3.2 Quantitative Research
Quantitative research is numerically-based and obtains the hard numbers from which decisions can be made with confidence. Examples of quantitative market research at JD include:
Exit surveys – carried out face-to-face with consumers as they leave the store. This is a simple survey covering a cross-section of stores to gather the views of consumers in different locations and regions. At JD the purpose of the survey is primarily to understand the reasons for visit, frequency of visit/purchase and reasons for and against purchase.
The ‘shopping bag’ survey – the JD research team monitors what carrier bags customers entering JD stores are carrying. This helps identify what other stores JD customers use and are spending money in. It provides competitor insight and an idea of which retailers attract a similar customer profile to JD, a variable that can influence the location of new JD store openings.
On-site fieldwork – JD’s dedicated Site Research team invests significant time researching new locations. This involves defining the extent of a location’s catchment area, reviewing the presence and quality of the competition and assessing the pitch and visibility (i.e. how busy the area is) of a unit. This helps build a detailed SWOT analysis of each new site.
3.3 Qualitative research
Qualitative information is a primary form of market research which focuses on consumer feelings and opinions on a product or service. This type of research illuminates the facts and figures collected through quantitative research. Examples of qualitative research at JD include:
Focus groups – by speaking at length with small groups of 8-10 people, more insightful questions can be asked regarding brands and new product developments. At JD these are typically run in schools and colleges, where it can get direct feedback from its core consumers.
Depth interviews – this involves a researcher accompanying the consumer on a shopping trip in store. This drills deeper into shopper behavior and their reactions to stores.
When undertaking market research, it is important to reflect the views of all consumers within the business’ target market. However, this would be a huge exercise. One way of managing this is to use sampling methods. Sampling involves taking the responses of a representative group of consumers that are likely to reflect the opinions of the customer base. When conducting primary research using your own resources, first decide how you'll question your targeted group: by direct mail, telephone, or personal interviews.
Secondary Information -
This type of research is already compiled and organized for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry. Most of the research you gather will most likely be secondary.
Secondary research is sometimes known as ‘desk research’. This research draws on material that has been collected by another organization to provide market information. Secondary research data provides a fact based overview of the market.
Examples of secondary research include:
Government census data – The census is conducted every 10 years across the UK and brings together data on factors such as the number of people, their ages and occupations in a location.
Geo-demographic data – Collected by specialist agencies, this segmentation tool profiles consumers based on their life stage (e.g. marital status, number of children) and their lifestyle (e.g. newspapers read, leisure activities, TV programmes watched).
Commercial market research reports – Prepared by research experts, these provide estimates of the size (volume of sales) in each product or market category and market share by operators within these sectors. At JD this information is invaluable when assessing new product markets (e.g. outdoors) or international opportunities (e.g. France and Spain).
However, there are drawbacks with any form of market research. It costs money to collect and analyse large amounts of information and the results are not always definitive. Numerical data might be biased, particularly if the sample size is too small. Focus groups may be skewed if one member of a focus group is too dominant and stops others from voicing their opinions.
3.4 Collection of Data
There are four main types of research instruments available to market researchers:
(1) Questionnaires or surveys
(2) Psychological tools
(3) Mechanical devices
(4) Qualitative measurements
Questionnaires or surveys – For gathering primary research data, surveys are the most commonly used of the instruments. Although the survey instrument is flexible and relatively inexpensive, it requires careful attention during development. All surveys should be piloted tested, at least to some degree, before they are released and administered to a target sample. The forms that the questions take should be carefully considered to ensure they perform as expected and that they fit well into the survey document as a whole. Developing survey questions is both an art and a science. Fortunately, many guidelines to survey construction, administration, and scoring are available.
Question types -
Usually, a questionnaire consists of a number of questions that the respondent has to answer in a set format. A distinction is made between open-ended and closed-ended questions. An open-ended question asks the respondent to formulate his own answer, whereas a closed-ended question has the respondent pick an answer from a given number of options. The response options for a closed-ended question should be exhaustive and mutually exclusive.
Four types of response scales for closed-ended questions are distinguished:
• Dichotomous, where the respondent has two options
• Nominal-polychromous, where the respondent has more than two unordered options
• Ordinal-polychromous, where the respondent has more than two ordered options
• (Bounded)Continuous, where the respondent is presented with a continuous scale
A respondent's answer to an open-ended question is coded into a response scale afterwards. An example of an open-ended question is a question where the testie has to complete a sentence (sentence completion item)
In general, questions should flow logically from one to the next. To achieve the best response rates, questions should flow from the least sensitive to the most sensitive, from the factual and behavioural to the attitudinal, and from the more general to the more specific.
There typically is a flow that should be followed when constructing a questionnaire in regards to the order that the questions are asked. The order is as follows:
6. Changing Formula
Screens are used as a screening method to find out early whether or not someone should complete the questionnaire. Warm-ups are simple to answer, help capture interest in the survey, and may not even pertain to research objectives. Transition questions are used to make different areas flow well together. Skips include questions similar to "If yes, then answer question 3. If no, then continue to question 5." Difficult questions are towards the end because the respondent is in "response mode." Also, when completing an online questionnaire, the progress bars lets the respondent know that they are almost done so they are more willing to answer more difficult questions. Classification, or demographic question should be at the end because typically they can feel like personal questions which will make respondents uncomfortable and not willing to finish survey.
Basic rules for questionnaire item construction
• Use statements which are interpreted in the same way by members of different subpopulations of the population of interest.
• Use statements where persons that have different opinions or traits will give different answers.
• Think of having an "open" answer category after a list of possible answers.
• Use only one aspect of the construct you are interested in per item.
• Use positive statements and avoid negatives or double negatives.
• Do not make assumptions about the respondent.
• Use clear and comprehensible wording, easily understandable for all educational levels
• Use correct spelling, grammar and punctuation.
• Avoid items that contain more than one question per item (e.g. Do you like strawberries and potatoes?).
• Question should not be biased or even leading the participant towards an answer.
Main modes of questionnaire administration are:
• Face-to-face questionnaire administration, where an interviewer presents the items orally.
• Paper-and-pencil questionnaire administration, where the items are presented on paper.
• Computerized questionnaire administration, where the items are presented on the computer.
• Adaptive computerized questionnaire administration, where a selection of items is presented on the computer, and based on the answers on those items, the computer selects following items optimized for the testee's estimated ability or trait.
Concerns with Questionnaires
While questionnaires are inexpensive, quick, and easy to analyze, often the questionnaire can have more problems than benefits. For example, unlike interviews, the people conducting the research may never know if the respondent understood the question that was being asked. Also, because the questions are so specific to what the researchers are asking, the information gained can be minimal. Often, questionnaires such as the Myers-Briggs Type Indicator, give too few options to answer; respondents can answer either option but must choose only one response. Questionnaires also produce very low return rates, whether they are mail or online questionnaires. The other problem associated with return rates is that often the people that do return the questionnaire are those that have a really positive or a really negative viewpoint and want their opinion heard. The people that are most likely unbiased either way typically don't respond because it is not worth their time.
Psychological Tools – Three commonly used psychological tools used to collect primary data are:
Laddering questions techniques- Laddering questions basically just continue to probe deeper into the perspectives and opinions of respondents. The technique is iterative, so that each subsequent question is generated according to the response to the previous question. Laddering is a technique that has been widely used in creative problem-solving methods and workshops.
In-depth interviewing– It consists of probing ever deeper into the customer experience. Earnest Dichter developed the technique—at which he excelled—and differentiated between qualitative research and quantitative research by referring to the former as head shrinking and the latter as nose counting. Needless to say, Dichter was a proponent of qualitative research.
Rorschach-like tests- An interview technique similar to what is done in Rorschach testing has been developed for market research by Gerald Zaltman of Olson Zaltman Associates. The instrument is known as the Zaltman Metaphoric Elicitation Technique (ZMET) and uses metaphoric images to access the associations that consumers have with certain product types. Typically, a participant in a ZMET-based study will collect images from a wide array of pictures that have no verbal content in order to express the associated feelings and thoughts they have with regard to a product type.
Mechanical devices-There are sometimes used to measure physiological responses of research participants to product attributes or advertisements. Generally, what is measured is interest or emotions in response to what is seen, heard, felt, or smelled. Mechanical devices used in primary research data collection include Galvanometers, eye cameras, eye gaze recorders, audiometers, and tachistoscopes that show an image or ad for a brief flash.
Qualitative measures- These are becoming more common in primary research as advanced in technology support indifferent approaches. Consumers are being turned loose with sophisticated technology on which they can record their impressions of product or aspects of their consumer experience. Some market research provider agencies even go into the homes of consumers to film their interactions with products. These videos are trimmed down to a highlight reel that is used to analyze consumer behavior. One of the primary reasons for preferring qualitative measures to surveys or interviewing is that the expressed beliefs and intentions of consumers often fail to match their actual behavior in the realm of brand engagement or purchase decisions.
Making Sampling Plan
A sampling plan is a detailed outline of which measurements will be taken at what times, on which material, in what manner, and by whom. Sampling plans should be designed in such a way that the resulting data will contain a representative sample of the parameters of interest and allow for all questions, as stated in the goals, to be answered.
After deciding on the research approach and instruments, the marketing researcher must design a sampling plan.
This calls for three decisions:
Sampling unit- Who is to be surveyed? The marketing researcher must define the target population that will be sampled. In the American Airlines survey providing an internet facility in their First class with a nominal fee, should the sampling unit be only first class or business travellers, first class vacation travellers or both? Should travellers under age 18 be interviewed? Should both husbands and wives be interviewed? Once the sampling unit is determined, a sampling frame must be developed so that everyone in the target population has an equal or known chance of being sampled.
Sample size- How many people should be surveyed? Large samples give more reliable results than small samples. However, it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. Samples of less than 1% of a population can often provide good reliability, with a credible sampling procedure.
Sampling procedure- How should the respondents be chosen? To obtain a representative sample, a probability sample of the population should be drawn. Probability sampling allows the calculation of confidence limits for sample error.
Simple random sample- every member of the population has an equal chance of selection.
Stratified random sample- The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group.
Cluster (area) sample- The population is divided into mutually exclusive groups (such as city blocks) and the researcher draws a sample of the groups to interview.
Convenience sample- The researchers select the most accessible population members.
Judgment sample- The researcher selects population members who are good prospects for accurate information.
Quota sample- The researcher finds and interviews a prescribed number of people in each of several categories.
The steps involved in developing a sampling plan are;
identify the parameters to be measured, the range of possible values, and the required resolution
design a sampling scheme that details how and when samples will be taken
design data storage formats
assign roles and responsibilities
Market Research (MR) is a costly affair.
It is also lengthy and time-consuming.
It has a limited scope.
It has a limited practical value.
It can't predict consumer behavior.
It can't give 100% accurate results.
It provides suggestions and not solutions.
Non-availability of qualified and experienced staff affects its quality.
It uses a fragmented approach.
It can be misused.
Non-availability of a reliable data affects it.
It is resistant to marketing managers.