UNIT ONE

INTRODUCTION TO MARKET RESEARCH

Unit Coverage
This unit is designed to provide you with the necessary knowledge, skills and
attitude regarding the following content:

1.1. Meaning and Purposes of Market Research.

1.2. The Market Research Process.
1.3. Planning the Market Research.
Unit Learning Outcomes
This unit will assist you to attain the following learning outcomes. Specifically,
upon the completion of this unit, you will be able to:

 Understand the meaning and purposes of market research.

 Perform the stages in market research process.
 Formulate market research problem and objectives.
 Develop market research proposal
Key Terms: Market Research, Exploratory Research, Descriptive Research, Causal Research.

Introduction

Research in simple term is the process of searching the relevant information in a systematic manner.
Various research have been carried out in different areas, one of these is a market research. Market
research studies the markets, market competition, market trends, etc. this unit discussed overview
of market research.

1.1. Meaning and Purpose of Market Research

Market research can mean several things. It can be the process by which we gain insight into how
markets work, or a function in an organization. Market research is a bit more than the informal
assimilation and interpretation of market data. Market research is structured and purposeful. It is
the systematic and objective collection and interpretation of data to help reduce risk in marketing
decisions.
1.1.1. Defining Market Research

Dear learners! What is Market Research? Can you try to define the term based on the
introduction given above? Hoping that you have defined it, let’s see together the definition of
Market Research.
Market Research has two words, viz., Market and Research. 1) Market means the collection of
buyers and sellers. 2) Research means a systematic and complete study of a problem. Thus, we can
define a market research as the systematic gathering, recording and analyzing of data relating to the
marketing of goods and services‘.

The world organization for market, consumer and societal research, defines market research as:

The systematic gathering and interpretation of information about individuals or organizations

using the statistical and analytical methods and techniques of the applied social sciences to gain
insight or support decision making.

1.1.2. Market Research and Marketing Research

Dear learners! Since the term market research and marketing research are often used
interchangeably, many people think of these terms connote the same concept. Do you think that
the term market research imply similar concept with marketing research? If not, please try to
explain the difference between Market Research and Marketing Research?

Generally Market Research and Marketing Research are confused to be the same. But there is a
clear distinction between both.

Market Research: Market Research involves researching a specific industry or market. The market
research consists of analysis of market potentials for existing products and estimating demand for
the products and services. It studies sales forecasting, products, markets and market trends. This
area of marketing research deals with market. It studies characteristics and compositions of the
target markets. It covers both current as well as potential markets.

Market research comprises a series of research components. The areas of market research are:

Research focused on the market: this looks into

 Market trends, market share and market potential.

 The dimensions, locations, nature and characteristics of markets, based on the variables such
as age, sex, income, education, occupation, and religion.
 “Who, what, when, where and how” questions about actual and potential buyers.
Research focused on the product: looks into

 The development of new products, brand images, concepts, quality assurance, and testing
of markets for a new product
 Analyses the strengths and weaknesses of present products
Research focusing on sales: looks into

 Forecasting of sales, quota selling, and sales designing

 Analyses sales performances, and volume of sales.
Advertising and promotion research: focuses on

 Measuring the effectiveness of different methods of advertising and promotion tools.

Marketing Research: is the function that links the consumer, customer, and public to the marketer
through information. Information used to identify and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. It is broader than market research.

1.1.3. Purposes of Conducting Market Research

Dear learners! May a pose a question? How would you think companies and marketing
managers benefited from conducting Market Research? What purposes market research is
intended to achieve? Some of the purpose of conducting market research are outlined as
follows:
Market research serves a number of useful purposes for management to make marketing decisions
and increase their performance. The main purposes of market research are to do the following:

 Understand the competitive positions of competing products

 Know the consumers’ needs and expectations.
 Evaluate the reactions of consumers and customers
 Understand the advantages and limitations of company’s products.
 Analyze the current and the future market size
 Search for new marketing opportunities.
 Know demand and the customer’s acceptance of the products
 Measure the effectiveness of advertising
 Find solutions to problems relating to marketing of goods and services.

Dear learners! So far, Market Research is defined from different angle, its purposes are outlined
and difference between Market Research and Marketing research is explained. Now it is your turn
to answer the following self-check questions

Self-check 1-1:

1. What is Market Research by your own definition?

2. Differentiate market research and marketing research?
3. Discuss the purpose of conducting Market Research?
4. List down areas in marketing where Market Research would be helpful?

Dear learners! Have you answered self-check questions? If yes, let us move on to the discussion of
the market research process.

1.2. The Market Research Process

To maintain the control needed to obtain accurate information, marketers approach market research
as a process with logical step, to help acquire valid and reliable information, marketers are likely to
use a series of steps referred to collectively as the market research process.

1.2.1. Stages in Market Research Process

Dear learners! Do you know anything about the market research process? How about the
stages involved in it? If not, do not worry the whole of the following topic revolves around
these two basic questions? Let us proceed with the steps of market research process.

The Market Research process involves a number of inter-related activities which have bearing on
each other, starting with identifying and formulating the problem and ending with presenting the
findings (see Fig.1.1). Once the need for Market Research has been established, broadly it involves
the following stages:
 Identify and formulate the problem

Determine research design

Identify data types and sources

Design data collection forms

Determine sampling design and size

Collect the data

Analyze and interpret the data

Prepare the research report

Figure 1.1: The stages in Market Research Process

Let us now discuss in detail about the various stages involved in the market research process.

Stage 1. Identify and Formulate the Problem

The first step in setting up a market research process involves identifying and formulating the
research problem.

Identifying the research problem is valuable, but also difficult. To identify the “right” research
problem, we have to first identify the marketing symptoms or marketing opportunities. The
marketing symptom is the problem that an organization faces.

Examples of a marketing symptom include declining market shares, increasing numbers of

complaints, or new products that consumers do not adopt. In some cases, there is no real existing
problem but rather a marketing opportunity, such as potential benefits offered by new channels and
products, or emerging market opportunities that need to be explored.

Organizations should identify the marketing problem, based on marketing symptoms or

opportunities, if they want to undertake market research. The marketing problem explores what
underlies the marketing symptom or opportunity by asking questions such as:

 Why is our market share declining?

  Why do the number of complaints increase?
 Why are our new products not successful?

Problem formulation also involves translation of the marketing problem into researchable
objectives. Because we must create researchable objectives concordant with problem definition.

Turning marketing problem into objectives:

Marketing objectives must be relevant to the specific marketing situation. Consider the following
case:

Zoma pharmaceutical manufacturing has a long history, up to five generations of the company
founder. The major product line of the company is a traditional herbal hair food and oil. It is well
accepted by a large market of Ethiopian’s customers, especially those over 50 years of age. As these
customers are getting older and fewer, sales volume and the number of customers have dropped
sharply over the past 10 years. There are few new customers, in particular, from the younger
population in the country.

The management has decided to expand the market to attract potential younger customers.
However, initial market research showed that the youth market did not find the brand name “Zoma
hair food and oil” attractive. They felt only grandparents would use this type of oil. They felt
ashamed to use or even carry a bottle of “Zoma hair food and oil” in their bags.

After long discussions, the company’s marketing team intends to launch a new marketing plan to
rename “Zoma hair food and oil” to “Super Herbal hair food and oil”, to project a younger, more
energetic image to capture the youth market.

Problem statement for the above case can be:

 To assess the perception of customers towards the old and new brand name of the company’s
product.

Suggested market research objectives may be:

 To understand consumers’ view on the old brand name “Zoma hair food and oil”.
 To compare consumers’ preference on the brand names of “Zoma hair food and oil” and
“Super Herbal hair food and oil”.
Stage 2. Determine Research Design

Research design is a plan or framework for conducting marketing research and collecting data. It
is defined as the specific methods and procedures you use to get the information you need. There
are three core types of market research designs: exploratory, descriptive, and causal research
designs.

i. Exploratory Market Research

This is a starting point for research. It’s used to reveal facts and opinions about a particular topic,
and gain insight into the main points of an issue. As its name suggests, the objective of exploratory
research is to explore a problem or situation. Secondary research materials such as trade
publications, books, journals and magazines and primary research tools such as interviews, focus
groups and. observational studies are often used to achieve the objective of exploratory research.

ii. Descriptive Market Research

As its name implies, descriptive research is all about describing certain phenomena, characteristics
or functions. It can focus on one variable (e.g., profitability) or on two or more variables at the same
time (“What is the relationship between market share and profitability?” and “How does
temperature relate to sales of ice cream?”). Such descriptive research often builds upon previous
exploratory research. After all, to describe something, include describing customers, competitors,
market segments, and measuring performance.

This helps define the business problem or issue so that companies can make decisions, take action
and monitor progress. Descriptive research is naturally quantitative-it needs to be measured and
analyzed statistically, using more targeted surveys and questionnaires. We can use it to capture
demographic information, evaluate a product or service for market, and monitor a target audience’s
opinion and behaviors. Insights from descriptive research can inform conclusions about the market
landscape and the product’s place in it.

iii. Causal Market Research

This is useful to explore the cause and effect relationship between two or more variables. Like
descriptive research, it uses quantitative methods, but it doesn’t merely report findings; it uses
experiments to predict and test theories about a product or market. For example, researchers may
change product packaging design or material, and measure what happens to sales as a result.
Market researchers undertake causal research less frequently than exploratory or descriptive
research and it is more complex at this level. Nevertheless, it is important to understand the delicate
concepts that are important to market research.
Type of market research design Uses
Exploratory Formulate problems precisely
Establish priorities for research
Eliminate impractical ideas
Develop hypotheses
Develop measurement scales
Descriptive Describe customers/competitors
Describe segments
Measure performance
Causal Explore causal relationships
Table 1.1 Types of research, uses, and examples
Consider Zoma’s hair food and oil case;

For the above case, descriptive market research design is found to be appropriate to the research
objectives that is to evaluate the perception of customers towards the old and new brand name.

Stage 3. Identify Data Types and Sources

The third stage in a research process is to determine the data sources. The researcher decides the
sources of collecting data. The two main sources are secondary data and primary data. Primary data
sources are original data on the specific issue, and provides strongly reliable data. Secondary data
sources are pre-existing, and often not so specific, but tends to cost less and is quickly available.
The researcher has to decide whether to go for primary data or secondary data. Sometimes a
combination of both is used. We will discuss this in further detail in unit 3.

Stage 4. Design data collection forms

Once it has been decided to obtain primary data, the mode of collection needs to be decided. There
are four methods are available for data collection: Observational techniques, Questionnaires,
Interview and Focus Group Discussion.

Stage 5. Determine sampling design and size

A sample design is a definite plan determined for data collection to obtain a sample from a given
population. The market research project will rarely examine an entire population. It’s more practical
to use a sample - a smaller but accurate representation of the greater population.

At this stage of the market research process, the population from which the sample has to be drawn
has to be well defined, a broad choice is to be made between probability sampling and non-
probability sampling, the sample design is then chosen depending on the suitability and the
availability of the sample frame and the sample size is determined. We will discuss this in further
detail in unit 2.

Stage 6. Collect the data

The next step is to collect the data for which the research process has been spelled out. Collecting
data is a practical but sometimes difficult part of the market research process. The interviewing,
questionnaire administration, observation and the supervision of field work should be looked into.
Supervision of field work is important to ensure timely and proper completion of the field survey.

Stage 7. Analyze and interpret the data

The Analyze and interpret the results is to look for a wider meaning to the obtained data. The
researcher can then analyze the collected data by using various statistical measures. For this level,
the analysis uses simple descriptive statistics such as percentage, mode, mean, median etc. The
results can be presented narratively and through graphs, figures and tables. We will discuss this in
further detail in unit 4.

Stage 8. Prepare market research report

This is the concluding step of research, where the researcher has to prepare a report of what has
been done by him. Generally, the report should be designed in accordance to the following layout:

 The preliminary pages: Here the title, date, acknowledgements and foreword with the table
of contents, should be mentioned.
 The main text: This should be divided into introduction, summary, main report and
conclusion.
 End matter: This should contain appendices, bibliography and index.

A report should be written in a precise and objective style in simple language. We will discuss this
in further detail in unit 5.

Dear learners! Are you very clear about the market research process and the various steps involved
in it? Well and good! Let you attempt the following questions as a check for your understanding.
Self-check 1-3:

[Link] out the various stages involved in the market research process?
[Link] various stages in the market research process are inter-related. Explain?

Dear learners! So far, Market Research process is discussed, let us move on to the discussion of
the planning aspects of a market research.

1.3. Planning the Market Research

Dear learners! What is a market research proposal? Why it is prepared? Do you know the
components of a market research proposal? If not, do not worry the whole of the following
discussions help you to answer these questions

Research always begins with a purpose. This clear statement of purpose guides the research process;
however, for a study to qualify as research, it must be planned and systematic. Thus, the researcher
needs to formalize this plan of pursuing the study. This framework or plan is termed as the research
proposal. A research proposal is a formal document that presents the research objectives, design
of achieving these objectives and the expected outcomes of the study.

1.4. Contents of a Research Proposal

The requirements and the origin of the research would direct the sequential formulation of the research
proposal. However, there is a broad framework that most proposals adhere too. In this section we will
briefly discuss these components.

i. Executive Summary
This is a broad overview or abstract that spells out the purpose and objective of the study. In a short
paragraph, the author gives a summary about the research problem, which is the focus of the study. The
probable research questions which might need to be answered in order to arrive at any conclusive results
are further listed.

ii. Background of the Problem

This is the detailed background of the research problem. It requires a sequential and systematic build- up
to the research questions and also a compelling reason for pursuing the study. This section has to be
explicit, objective and written in simple language. It should be able to convince the reader of the need
for the study.
 iii. Problem Statement and Research Objectives
This part shows a clear definition of the problem and the specific objectives of the study.

iv. Research Design

This is the working section of the proposal as it needs to indicate the logical and systematic approach
intended to be followed in order to achieve the listed objectives. This would include statement of the
sampling and data collection plan, and it requires a clear and logical justification of using the techniques
over a wide range of methods available for research.

v. Scheduling the Research

The time-bound dissemination of the study with the major phases of the research has to be presented.
This can be done using the GANTT charts. This gives a clear mechanism for monitoring and managing
the research task.

vi. Costing and Budgeting the Research

A budget table for an estimated cost of the study is presented in this section.

In addition, the last section of the proposal is to state the complete details of the references used in
the formulation of the research proposal.

Dear learners! So far, Market Research proposal is discussed, now it is your turn to answer the
following self-check questions

Self-check 1-4:

[Link] the basic components of a formal market research proposal?

[Link] is an executive summary in the market research proposal?

Dear learners! Have you answered the self-check questions? If yes, let us move on to reading the
unit summary and to perform the unit review questions.

Unit Summary

Market research is a systematic and objective study of problems pertaining to the marketing of
goods and services. It is applicable to any area of marketing.
The Market Research Process involves a number of inter-related activities which have bearing on
each other. Each and every step plays an important role in the research process.

A Research Design is the specification of methods and procedures for acquiring the information
needed. It is the blueprint for a research process. An exploratory research is often conducted because
a problem has not been clearly defined as yet, or its real scope is as yet unclear. Descriptive research
on the other hand is meant to provide information that is useful in reaching conclusions or decision-
making. It is mostly quantitative in nature. A Causal research is undertaken to see if there is a cause
and effect relationship between variables.

Through the research proposal, a reader is able to assess the rigor and validity of the study and
whether or not it will result in an objective and accurate answer to the research problem.
 Unit Review Questions

Part One: Discussion Questions:

Instruction: Give brief answer for the following review questions:

1. Is there any difference between Market Research and Marketing Research? Explain

2. Why should you conduct Market Research? Explain the reasons?

3. Explain the various steps involved in the market research process?

4. It is very important to define the research problem, explain?

5. Discuss the possible situations in which exploratory, descriptive and causal market research designs
are applied?

6. On the topic about the purposes of market research, some people argue that “Common sense of an
experienced businessman is as good as, if not better than, findings from market research.” Discuss
why you ‘agree’ or ‘disagree’ with the statement and state your reasons.

Part Two: Practical Activity:

Instruction: Consider the following case and you are required to perform the following tasks:

Assume that you are the marketing officer of a pharmaceutical company, which has developed a new hair
growing formulation. Meanwhile, the marketing manager of the company wants to test whether to
package the liquid in a spray type or capped dispenser. Consequently, the marketing manager assigned you
the responsibility to conduct a market research to test the acceptability of a spray or capped bottle
dispenser for a new hair growing formulation. As a market researcher, you are expected to perform the
following tasks:

Task 1: Formulate the research problem or problem statement for conducting market research based on the
market situation described on the above case?

Task 2: Develop 2-4 specific market research objectives for the case?
 UNIT TWO
SAMPLING DESIGN
Unit Coverage

This unit is designed to provide you with the necessary knowledge, skills and attitude regarding
the following content:

1.1. Basic Sampling and Statistical Terminology

1.2. Sampling Methods and Techniques

Unit Learning Outcomes

This unit will assist you to attain the following learning outcomes. Specifically, upon the
completion of this unit, you will be able to:

 Explain basic sampling and statistical terms

 Apply sampling methods and techniques in market research

Key Terms: Survey study, Population, Element, Sample, Sampling Frame, Sample Size, Probability
Sampling, Non-probability Sampling.

Introduction

Sampling is an important concept that we practice in our everyday life. Sampling involves selecting
a relatively small number of elements from a larger defined group of elements and expecting that
the information gathered from the small group will allow judgments to be made about the larger
group. Sampling is often used when conducting a census is impossible or unreasonable. When using
a census, the researcher is interested in collecting primary data about or from every member of the
defined target population.

2.1. Basic Sampling and Statistical Terminology

The most common concepts and terminologies in sampling are the following:

Census: is study of the whole population/ it involves complete enumeration of the whole
population. It is appropriate if the population size itself is quite small.

Survey: is a research design in which information is gathered from a sample of respondents.

Sampling may be useful if the population size is large and if both the cost and time associated
with obtaining information from the population is high.

Population: is an identifiable total group or aggregation of elements that are of interest to the
researcher and pertinent to the specified problem.

Element: is a person or object from which data and information are sought. In research, the element
is a particular product or group of individuals include a particular consumer product, specific group
of people or specific organizations.

Variable: is a set of mutually exclusive characteristics such as sex, age, income, etc.

Sample: is a small proportion of a population selected for observation and analysis from a
population in accordance with specified procedures.

Sampling frame: is the list of all eligible population from which the sample will be drawn.

Sample size: Sample size is the number of sampling units selected for observation and analysis.

Consider Zoma’s hair food and oil case;

 The researcher develop a list of 1,000 population as a sample frame from which sample will be
drawn.
 The researcher also decided to take 10% of the target population l.e 100 individuals as size of the
sample. The researcher believe that sample size of 100 is fairly represents the target population.

Dear learners! Now it is your turn to answer the following self-check questions

Self-check 2-1:

1. Define sampling? Explain the importance of sampling?

2. Differentiate between census and survey studies?
3. Define the following:

1. Population

2. Sampling frame

3. Sample size

4. Sample
Dear learners! Have you done self-checks? If yes, let us move on to the discussion of sampling
methods and techniques.

2.2. Sampling Methods and Techniques

Dear learners! Let’s begin by posing important questions. How the researcher select sample
from study population? What does it meant by probability sampling and non-probability
sampling?

There are two basic sampling designs: Probability and non-probability sampling methods. In a
probability sampling, every unit in the population has equal chances for being selected as a sample
unit. In the non- probability sampling, the units in the population have unequal or negligible, almost
no chances for being selected as a sample unit.

Types of Sampling Methods

Sampling Methods

Probability Non-probability
Sampling methods Sampling Methods

Simple Random sampling Convenience sampling

Systematic Random sampling Judgment sampling

Stratifiedd Random sampling Quota sampling

Cluster sampling Snowball sampling

Figure 2.1. Sampling Methods and Techniques

Consider Zoma’s hair food and oil case;

For example, the researcher decided to draw a sample of 100 individuals (n=100), from among the
target population that consisted of 1000 individuals (N=1000). The researcher could write each
individual‘s name on a separate, identical piece of paper and place all of the names in a jar. Each
individual would have an equal, known probability of selection for a sample of a given size that
could be expressed by the formula:

Size of sample
Probability of selection = -------------------------
Size of population
Here, each individual would have a 100/1000 (or 0.1) chance of being randomly selected in the
drawn sample.

1. Systematic Random Sampling

Systematic Random Sampling (SYMRS) is similar to simple random sampling but requires that the
defined target population be ordered in some way, usually in the form of a customer list.

To employ SYMRS, the researcher must be able to secure a complete listing of the potential
sampling units that make up the defined target population. Individual sampling units are selected
according to their position using a skip interval. The skip interval is determined by dividing the
number of potential sampling units in the defined target population by the number of units desired
in the sample. The required skip interval is calculated using the formula:

Skip interval = Defined target population list size

Desired sample size
Steps in drawing a systematic random sample

Step 1: Obtain a list of population or sampling frame

Step 2: Determine sample size

Step 3: determine sample interval or skip interval

Step 4: Randomly determine starting point to sample list of names

Step 5: Apply the skip interval to determine the remaining items to be included in the sample.

Consider Zoma’s hair food and oil case;

For instance, if the researcher wants a sample of 100 to be drawn from a defined target population
of 1,000, the skip interval would be 10 (ie. 1,000/100). Once the skip interval is determined, the
researcher would then randomly select a starting point and take every 10th unit until the researcher
proceeded through the entire target population list.
2. Stratified Random Sampling

Stratified random sampling (STRS) requires the separation of the defined target population into
different groups, called strata, and the selecting of samples from each stratum. The goal in
stratifying is to minimize the variability within each stratum and maximize the differences between
strata. In some ways, STRS can be compared to segmentation of the defined target population into
smaller, more homogeneous sets of elements.

To ensure that the sample maintains the required precision of the total population, representative
samples must be drawn from each of the smaller population groups. Drawing a stratified random
sample involves three basic steps:

i. Dividing the target population into homogeneous sub-groups or strata.

ii. Drawing random samples from each stratum.

iii. Combining the samples from each stratum into a single sample of the target population.

Consider Zoma’s hair food and oil case;

For example: the researcher has a total of 1000 people as target population for the study. Among
the 1000 people, 400 are brand-loyal and 600 are variety-seeking. Past research indicates that
consumers’ brand preference is related to consumers’ characteristics, such as being either brand-
loyal or variety-seeking. Therefore, it should be beneficial to divide the total population of 1000
consumers into two groups 400 and 600 each and randomly sample from within each of the two
groups. If a sample size of 100 is desired, then a 10 percent directly proportional stratified sampling
is employed.

2.1.1. Probability Sampling

In probability sampling, each unit in the defined target population has a known, non-zero
probability of being selected for the sample, the actual probability of selection for each sampling
unit may or may not be equal depending on the type of probability sampling design used.

The various probability sampling techniques are discussed below:

3. Simple Random Sampling:

Simple Random Sampling is a probability sampling procedure which ensures that every sampling
unit making up the defined target population has a known, equal, non-zero chance sample is chosen
by some method like flipping a coin (head or tail selection), lottery, or table of random number of
being selected. It is more suitable in more homogeneous and comparatively large groups. The.
 Table 2.1: A stratified sampling

10 Percent Directly Proportional

Consumer Type Group Size
Stratified Sample Size
Brand-loyal 400 40
Variety-seeking 600 60
Total 1000 100

4. Cluster Sampling

While cluster sampling is similar to stratified random sampling, it is different in that the sampling units are
divided into mutually exclusive and collectively exhaustive sub-populations, called clusters. Each cluster is
assumed to be representative of the heterogeneity of the target population. Examples of possible divisions for
cluster sampling include the customers who patronize a store on a given day, the audience for a movie shown at
a particular time (e.g., the matinee), or the invoices processed during a specific week. Once the cluster has been
identified, the prospective sampling units are drawn into the sample by either using a simple random sampling
method or canvassing all the elements within the defined cluster.

The researcher may execute a two-step cluster sampling approach. First, the researcher would randomly sample
a set of cluster and then would decide on the most appropriate probability method to sample individuals within
each of the selected clusters.

A comparison between the stratified sampling process and the cluster sampling process is given in the following
table:

Table 2.2: A comparison of stratified sampling and cluster sampling

Stratified Sampling Cluster Sampling

Homogeneity within group Homogeneity between groups
Homogeneity between groups Homogeneity within group
All groups are included Random selection of groups
Consider
Zoma’s hair food and oil case;

For example: the researcher has a total of 1000 people as target population for the study. Among
the 1000 consumers, 200, 350, 250 and 200 consumers are located in Northern, Eastern, Western
and Southern regions respectively. Therefore, the researcher divide the total population of 1000
consumers into four groups 200, 350, 250 and 200 consumers each and randomly sample from
within each of the four groups. If a sample size of 100 is desired, then a 10 percent directly
proportional cluster sampling is employed.

Table 2.2: A cluster sampling

10 Percent Directly Proportional Cluster

Regions Cluster’s
Size Sample Size

Northern region 200 20

Eastern region 350 35

Western region 250 25
Southern region 200 20

Total 1000 100

2.1.2. Non-Probability Sampling

In non-probabilit y sampling, the probability of selection of each sample unit is not known.
Therefore, potential sampling error cannot be accurately known either. The selection of sampling
units is based on some type of intuitive judgments, desire or knowledge of the researcher. The
degree to which the sample may or may not be representative of the defined target population.

The various probability sampling techniques are discussed below:

1. Convenience Sampling

Convenience sampling (or accidental sampling) is a method in which samples are drawn at the
convenience of the researcher or interviewer. The assumptions are that the target population is
homogeneous and the individuals interviewed are similar to the overall defined target population
with regard to the characteristics being studied.

2. Judgment Sampling

In judgment sampling, (also referred to as purposive sampling), participants are selected according
to an experienced individual‘s belief that they will meet the requirements of the study. Judgmental
sampling is associated with a variety of biases. For example, shopping center intercept
interviewing can over-sample those who shop frequently, who appear friendly, and who have
uncertainty, because the sampling frame is unknown and the sampling procedure is not well
specified.

3. Quota Sampling

The quota sampling method involves the selection of prospective participants according to pre-
specified quota regarding either demographic characteristics (e.g., age, race, gender, income),
specific attitudes (e.g. Satisfied/dissatisfied, liking/disliking, great/marginal/no quality), or specific
behaviors (e.g., regular/occasional/rare customer, product user/non user).

4. Snowball Sampling

Snowball Sampling involves the practice of identifying and qualifying a set of initial prospective
respondents who can, in turn, help the researcher identify additional people to be included in the
study. This method of sampling is also called referral sampling, because one respondent refers other
potential respondents. Snowball sampling is typically used in research situations where:

i. The defined target population is very small and unique

ii. Compiling a complete list of elements is a nearly impossible task.

Dear learners! So far, the two types of sampling methods and their merits and demerits are
discussed, the various sampling techniques are outlined and explained. Now it is your turn to
answer the following self-check questions

Self-check 2-2:

1. Differentiate between probability and non-probability sampling methods?

2. Explain each of the sampling techniques listed under probability sampling?
3. Explain each sampling techniques outlined under non-probability sampling?

Dear learners! Have you answered the self-check questions? If yes, let us move on to the unit
summary and unit review questions.

Unit Summary

Sampling involves selecting a relatively small number of elements from a larger defined group of
elements and expecting that the information gathered from the small group will allow judgments to
be made about the larger group.

There are two basic sampling designs: Probability and non-probability sampling methods. In
probability sampling, each unit in the defined target population has a known, non-zero probability
of being selected for the sample. In non-probability sampling, the probability of selection of each
sample unit is not known.

Various probability sampling methods are: Simple random sampling, Systematic Random
Sampling, Stratified Random Sampling and Cluster Sampling. Non-probability sampling methods
can be classified as: Convenience Sampling, Judgment Sampling, Quota Sampling and Snowball
Sampling.
 Unit Review Questions

Part One: Objective Type Questions

Instruction: choose the best answer from the given alternatives

1. ________ refers to a small portion of the total population selected for observation.
A. Population
B. Universe
C. Sample
D. Elements
2. Which one of the following statement is true about simple random sampling technique?
A. It gives equal chance for selection.
B. It is more suitable for homogeneous population
C. The sample members are selected by chance
D. All of the above
3. Which one of the following sampling technique is suitable for population having heterogeneous
characteristics?
A. Simple random sampling
B. Systematic random sampling
C. Stratified sampling
D. Cluster sampling

4. In which technique selection of sample is left entirely to the researcher?

A. Convenience sampling
B. Stratified sampling
C. Simple random sampling
D. Systematic sampling
5. Which one of the following sampling technique is NOT included under probability sampling?

A. Stratified sampling
B. Cluster sampling
C. Convenience sampling
D. Systematic random sampling
Part Two: Practical Activity -1-

Instruction: Perform the following practical tasks

Task 1: Develop a population list or sampling frame for market research, when the target
population is the students of your school.

Task 2: Determine sample size for the population lists you have developed?

Task 3: Select sample members by using simple random sampling technique from the sampling
frame you have developed and sample size you have determined on task 1 and 2.

Task 4: Based on the sampling frame you have developed and sample size you have determined
on task 1 and 2, you are required to arrange the target population in alphabetic order, determine
sample/skip interval and select sample members by using systematic random sampling technique.

Task 5: Based on task 1 and 2, sampling frame is developed and sample size is determined, now it
is your turn to divide the target population in to strata by using one of the population’s variables,
proportionally draw samples from each stratum, and combining the samples from each stratum in
to sample of the target population.

Task 6: Based on sampling frame developed on task 1 and sample size determined on task 2, now
it is your turn to form clusters by the grade level or sections of the target population that is students
of your school. Then by executing a two-step cluster sampling approach, first, you would randomly
sample a set of cluster and then select sample individuals within each of the selected clusters by
using simple random sampling method.

Task 7: Based on the sampling frame you have developed and sample size you have determined
on task 1 and 2, you are required to select one or more non-probability sampling techniques to select
your sample and give your justification for the selection of that technique.
Practical Activity -2-

Instruction: Recall the pharmaceutical company case that you were undertaken in unit one and you
are required to perform the following tasks:

In the practical activity part of unit one, you were formulate a market research problem and develop 2-4
market research objectives for the case given by the pharmaceutical company. Now you are required to
develop a sampling design to achieve the market research objectives:

Task 1: Identify the target population of the study?

Task 2: Prepare a sampling frame or population list from which sample can be selected?

Task 3: Determine sample size for the study?

Task 4: Select one or more sampling technique(s) by which sample members would be selected?
 UNIT THREE
DATA COLLECTION
Unit Coverage

This unit is designed to provide you with the necessary knowledge, skills and attitude regarding
the following content:

3.1. Types and Sources of data for Market Research

3.2. Collecting Data for Market Research

Unit Learning Outcomes

This unit will assist you to attain the following learning outcomes. Specifically, upon the
completion of this unit, you will be able to:

 Determine the types and sources of data to conduct market research

 Collect data for market research by using variety of data collection instruments.

Key Terms: Primary data, Secondary data, Qualitative data, Quantitative data, Questionnaires,
Focus groups, Interviews, Observational techniques.

Introduction

Data lie at the heart of conducting market research. By data we mean a collection of facts that can
be used as a basis for analysis, reasoning, or discussions. For example, of the answers people give
to questionnaire, existing company records, or observations of shoppers’ behaviours.

In practice, “good” data are very important because they are the basis for good market research
findings. In this unit, we will discuss some of the different types of data. This will help you describe
what data you use and why. Subsequently, we discuss strategies to collect data for market research.

3.1. Types and Sources of data

Dear learners! Can you try to recall the types of data for market research and collection methods
from the previous lesson in unit one? Hoping that you have remembered them.

Data are present in the form of values for quantitative data and in the form of words and pictures
for qualitative data. Data can be classified as primary and secondary data, qualitative and
quantitative data.
3.1.1. Primary and Secondary Data

Generally, on the basis of their sources, there are two types of data: primary and secondary data.
Primary data refers to raw data collected by the researchers directly through observation,
questionnaires or experiments, etc. for specific purpose.

A market research conducted by an organization using primary data for its own purpose which
addresses its requirements is called-Primary Market Research. It is generally expensive but is
specific and objective to the organization’s requirement.

Secondary data refers to information that already exists somewhere, having been collected for
another purpose and have already passes the statistical process. For example; a research report done
by another company on another product.

The type of market research conducted based on information obtained from secondary sources is
called-Secondary Market Research. It is also known as Desk research.

Secondary and primary data have their own specific advantages and disadvantages. These are
summed up in table 3.1.
Table 3.1 The advantages and disadvantages of secondary and primary data
Secondary data Primary data
Advantages Tend to be cheaper Are recent
Sample sizes tend to be greater Are specific for the purpose
Are usually quick to access Are sometimes more accurate

Disadvantages May be outdated Are usually more expensive

May not completely fit the problem Take longer to collect
There may be errors in the data
Difficult to assess data quality
May not be available
No control over data collection

3.1.2. Quantitative and Qualitative Data

Data can be quantitative or qualitative. Quantitative data are presented in values, whereas
qualitative data are not. Qualitative data can therefore take many forms such as words, stories,
observations, pictures, or audio. In addition, when the data are “raw,” we often label them
qualitative data, although researchers can code attributes of the data, thereby turning it into
quantitative data. Both qualitative and quantitative data can be used in market research.

Qualitative market research: This is generally used for exploratory purposes. The data collected
is qualitative and focuses on people‘s opinions and attitudes towards a product or service. The
respondents are generally few in number and the findings cannot be generalized to the whole
population Focus groups and In-depth interviews are appropriate tools for gathering qualitative
data. No statistical methods are generally applied.

Quantitative market research: This is generally used to draw conclusions for a specific
problem. It tests a specific hypothesis and uses random sampling techniques so as to infer from
the sample to the population. It involves a large number of respondents and analysis is carried out
using statistical techniques. Questionnaires is suitable for obtaining quantitative data.

Dear learners! So far, the primary and secondary data and their advantages and disadvantages
are discussed. And the qualitative and quantitative data are explained. Now it is your turn to answer
the following self-check questions.

Self-check 3-1:

1. Distinguish between Primary and Secondary data?

2. Distinguish between the qualitative and quantitative data?

Dear learners! Have you answered self-check questions? If yes, let us move on to the discussion
about the data collection instruments for market research.

3.2. Collecting Data for Market Research

Dear learners! Let’s begin by posing important questions. How researchers obtain primary and
secondary data for market research? What are the tools available for obtaining primary data for
market research?

3.2.1. Accessing Secondary Data

Secondary data are data that have already been gathered, often for a different research purpose.
Secondary data can either be internal or external (or a mix of both). Internal secondary data are
data that an organization or individual already has collected, but wants to use for (other) research
purposes. For example, we can use sales data to investigate the success of new products. External
secondary data are data that other companies, organizations, or individuals have available, sometimes
at a cost. In Fig. 3.1, we show an overview of different types of secondary data.

Secondary Data

Internal External

Company Records Government

Sales Reports Trade Associations

Market Research Firms

Existing Research
Consulting Firms
Studies

Literature (Database)

Social Networking Sites

Fig. 3.1 Sources of secondary data

I. Internal Secondary Data

Internal secondary data are contained within the company and are mostly tailored towards specific
needs. In general terms, internal secondary data comprise internal company records, sales reports,
and existing research studies.

 Company records are a firm’s repository of information. Internal company records may
contain data from different business functions.

 Sales reports are created when products and services are sold to clients. Many of these reports
contain details of the discussions held with clients and the products/services sold.
Consequently, they can provide insights into customers’ needs.

 Existing research studies are a good source of secondary data, even if they were conducted for
a (slightly) different purpose.
II. External Secondary Data

 Governments often provide general data that can be used for market research purposes.

 Trade associations are organizations representing different companies and are aimed at
promoting their common interests.

 Market research firms are another source of secondary information. Particularly large market
research firms provide syndicated data used for many different clients.

 Consulting firms are a rich source of secondary data. Most firms publish full reports or
summaries of reports on their website.

 Literature (databases) contain professional and academic journals, newspapers, and books.

 Social networking sites, such as LinkedIn, Twitter, Facebook, etc. can provide valuable
information.

Many of the sources of secondary data we have just discussed can be very easily accessed by means
of search engines. Search engines provide access to many sources of secondary information.

3.2.2. Collecting Primary Data for Market Research

Primary data are gathered for a specific research project at hand. This distinguishes primary data
from secondary data gathered previously for another purpose. Primary data can be quantitative or
qualitative data. Quantitative primary data are mostly gathered through questionnaires. Most
qualitative primary data are collected in the form of interviews, focus groups, observational
techniques. Figure 3.2 shows an overview of different types of qualitative research.

Primary Data

Quantitative Data Qualitative Data

Questionnaires Interviews

Focus Group Discussion

 Observations

Fig. 3.2 Quantitative and Qualitative primary data

I. Collecting Quantitative Data: Designing Questionnaires

A Questionnaire is a research technique used for obtaining useful statistical information by asking
questions to respondents. Before asking questions, a series of questions is prepared as per the
objective and purpose of the survey. It is one of the most cost-effective methods of collecting primary
data, which can be used with considerable ease by most researchers.

Questionnaire development involves at least five steps. Figure 3.3 shows these steps in designing
questionnaires:

Determine type of questionnaire and method of

administration

Design the questions

Design the questionnaire

Pilot the questionnaire

Execution

Fig. 3.3. Steps in designing questionnaires

Step 1: Determine the type of questionnaire and m ethod of administration:

There are four different ways to administer questionnaire: face-to-face interviews, telephone
interviews, Web surveys, and mail surveys. In some cases, researchers combine different ways of
administering questionnaires. This is called a mixed mode.

a) Face-to-face interviews (or personal interviews): It helps to obtain high response rates,
supports open-ended responses and it is possible to collect answers to a reasonably lengthy set of
questions. Consequently, face-to-face interviews seem highly preferable but they are also the most
costly per respondent.

b) Telephone interviewing: It allows one to collect data quickly. It also supports open-ended
responses. Telephone interviewing can be a good compromise between the low cost of mail and the
richness of face-to-face survey research.

c) Web surveys: are often the least expensive to administer and can be fast in terms of data
collection, particularly since they can be set up very quickly. We can administer Web surveys to very
large populations, even internationally.

d) Mail surveys: are paper-based surveys sent out to respondents. They are a more expensive type
of survey research and are best used for sensitive items. As no interviewer is present, there is no
interviewer bias.

Step 2: Design the Questions

In this step, the researcher decide on each items/questions. There are two kinds of question-response
options available for the researcher:

i. Open-ended questions

They are referred to as unstructured questions or free-response or free-answer questions. In open-

ended questions, the answers are not fixed, Respondents are free to express their views and give
suggestions freely.

Example: Consider Zoma’s hair food and oil case;

Assume that the objective of the market research is “to rebrand its name from Zoma hair food and
oil to Super Herbal hair food and oil, with a view to rejuvenate its image and to explore the youth
market.”

Suggested open-ended questions may be:

 Suggest a new name for the brand: _______________

 Why do you like this new brand name? ___________

ii. Closed-ended questions

In closed-ended questions, both the question and response formats are structured and defined.
Closed-ended questions, are commonly used because the answers are chosen from a fixed (closed)
list. It helps respondents quickly complete the questionnaire. Also researchers can limit the choice
to a fixed number to make the analysis easier and more meaningful. Closed-ended questions have
the following forms:

a) Dichotomous questions: These are restrictive alternatives and provide the respondents only
with two answers. These could be ‘yes’ or ‘no’, like or dislike, similar or different, married or
unmarried, etc.

Example: Consider Zoma’s hair food and oil case;

Suggested question:

 Have you heard of this brand of product before? Yes/No

 Have you used Zoma’s hair food and oil before? Yes/No

b) Opinion Rating Questions: are used to allow respondents to express their opinion by simply circling
a rate within a given range, say from 1 to 5 on a particular issue. This type of question often asking for
opinion and expecting an answer showing the degree of agreement or disagreement.

Example: Consider Zoma’s hair food and oil case;

Suggested questions:

 “Brand name of the product” is a factor affecting your purchase. Do you agree?
1-Strongly Disagree, 4-Agree
2-Disagree, 5-Strongly Agree
3-Neutral
  The brand name gives you a feeling of being young. Do you agree?
1-Strongly Disagree, 4-Agree
2-Disagree, 5-Strongly Agree
3-Neutral

c) Questions with more than one possible responses: this type of question differs from a simple single
choice question in that respondents can select more than one choice.

Example: Consider Zoma’s hair food and oil case;

Suggested questions:

 Which of the following 3 factors do you consider most important for this brand? (select a
maximum of 3 choices)
a) Packaging d) Name
b) Logo e) Association with product
c) Color

d) Questions with only One Possible Response: this type of question has only one option from the
given choices.

Example: Consider Zoma’s hair food and oil case;

Suggested question:

 Which of the following new brand names is better than the old name ‘Zoma hair food and oil’?
a) Super Herbal hair food and oil
b) Super Fine hair food and oil
c) Super Cool hair food and oil
d) Super Natural hair food and oil

Step 3: Design the Questionnaire

After determining the individual questions, the market researcher has to integrate these,
together with other elements, to create the questionnaire. This involves including an
explanation, choosing the order of the questions, and designing the layout and format.

Step 4: Pilot testing the Questionnaire

Pilot testing refers to testing and administering the designed instrument on a small group of
people from the population under study. Every aspect of the questionnaire has to be tested. Thus
these aspects need to be corrected.

Step 5: Administering the Questionnaire

Once all the above steps have been completed, the final instrument is ready for conduction and
the questionnaire needs to be administered according to the sampling plan

Principles for Designing Questionnaires

Designing questions (items) for a survey, whether it is for an interview, the Web, or mail,
requires to follow these principles:

 Avoid complexity use simple conversational language.

 Avoid leading and loaded questions

 Avoid ambiguity, confusion and vagueness.

 Avoid double barreled items: these are questions covering several issues at once is referred
to as double- barrel & should always be avoided.

 Avoid asking questions that are beyond the respondents capabilities

 Questionnaires should be as short as possible

 The questions should be relevant to the research problem.

II. Collecting Qualitative Data:

One can collect qualitative data by explicitly informing the participants that you are doing
research or you can simple observe the participants’ behavior without the participants being
explicitly aware of the research goals. The collection tools for qualitative data are interviews,
focus groups and observational studies.

a) Interviews: are qualitative conversations with participants about a specific issue..

Interviews vary in their level of structure. In their simplest form, interviews are unstructured
when all interview questions are not decided in advance and the participants talk about a topic
in general. This works well if you want to obtain insight into an issue or as an initial step in a
research process. Interviews can also be fully structured, meaning all questions and possible
answer categories are decided in advance. This leads to the collecting of quantitative data.

b) Focus Group Discussion: are interviews conducted among a number of respondents at

the same time and led by a moderator. This moderator leads the interview, structures it, and often
plays a central role in later transcribing the interview. Focus groups are usually semi or highly
structured. The group usually comprises between 4 and 6 people to allow for interaction
between the participants and to ensure that all the participants can have a say.

c) Observation: is relatively rare but can provide important insights that are unavailable
through other market research techniques. Observation involves the process of physically or
mechanically recording some specific aspect of a consumer‘s activity or behavior.

Observational techniques are not used to understand why people behave in a certain way but
rather aim to understand what they are doing. Observational techniques work well when people
find it difficult to put what they are doing in words, such as when people from different ethnic
backgrounds shop for food.

Example: Consider Zoma’s hair food and oil case;

The researcher can also use observational techniques for gathering qualitative data to achieve
the market research objective of “rebranding the product to explore the youth market.”

In this case, the researcher observes how consumers react towards the two brands l,e for the
product with an old name and for the product with a new name.

Dear learners! So far, the various methods for collecting primary data are discussed. Now it
is your turn to answer the following self-check questions

Self-check 3-2:

1. Explain the methods for collecting qualitative primary data?

2. How questionnaire is designed, enumerate the steps involved?

3. How questionnaires is administered for market research?

4. Explain what is observation? Discuss conditions for using it?

Dear learners! Have you answered the self-check questions? If yes, let us move on to reading
the unit summary and to answer the unit review questions.

Unit Summary

Data are present in the form of values for quantitative data and in the form of words and
pictures for qualitative data. Data can be classified as primary and secondary data, qualitative
and quantitative data.

While primary data are data that a researcher has collected for a specific purpose, secondary
data have already been collected by another researcher for another purpose. Secondary data can
either be internal or external (or a mix of both).

Primary market research involves collection of data specifically for the problem or project in
hand. Secondary market research is based on data previously collected for purposes other than
the research in hand.

Primary qualitative data can be collected through interview, focus group and observation
techniques, whereas, quantitative data for market research can be obtained through surveys
questionnaire via personal interview, telephone interview, mail and web.
 Unit Review Questions

Part one: Objective type questions

Instruction: Choose the best answer from the given alternatives
1. Which one of the following is the advantage of primary data over secondary data?
A. Low cost to obtain
B. Specific for the purpose
C. Are usually quick to access
D. Are sometimes more accurate
2. Secondary data could be obtained from the following, EXCEPT:
C. Research firms
A. Research studies
D. All of the above
B. Company documents
3. Which one of the following methods most appropriate to collect quantitative primary data?

A. Questionnaires C. Observation

B. Interview D. All of the above

4. Which of the following methods can be used in administering survey questionnaires?

A. Personal interview C. Telephone interview
B. Mail survey D. All of the above

5. __________ is an interview conducted by one or more interviewers with small group of

individuals.

A. Focus group discussions

B. Questionnaires
C. Interview
D. Observation

Part Two: Discussion Questions

Instruction: Give your brief answer for the following review questions:

1. Differentiate between primary data and secondary data?

2. Explain the methods available for collecting primary data?
3. List out some of the sources of secondary data known to you?
4. Distinguish between qualitative and quantitative market research?
5. Discuss the four ways of administering questionnaires for market research?
6. Explain the differences between open-ended and closed-ended questions?
7. Differentiate between structured and unstructured interview?
8. What are the steps in designing questionnaire? Explain.

Part Three: Practical Activity:

Instruction: Recall the pharmaceutical company case that you were undertaken in unit one and two.
Now you are required to perform the following tasks:

In the practical activity part of unit one and two, you were formulate a market research problem, develop
2-4 market research objectives and sampling design were developed. Now you are required to design
research instruments and techniques to gather the required data to study the market research problem of
the pharmaceutical company:

Task 1: Identify the data sources and type to study the given market research problem?

Task 2: Assume that questionnaire survey is an appropriate research instrument for the market research
problem at hand. Therefore, design questionnaire which consists of different types of questions and these
questions should be relevant to the market research objectives.
 UNIT FOUR

DATA ANALYSIS AND INTERPRETATIONS

Unit Coverage

This unit is designed to provide you with the necessary knowledge, skills and attitude regarding
the following content:

4.1. Data Processing

[Link] Analysis: Simple Descriptive Statistics
[Link] of Market Research findings

Unit Learning Outcomes

This unit will assist you to attain the following learning outcomes. Specifically, upon the
completion of this unit, you will be able to:

 Process data in market research.

 Analyze data by using simple descriptive statistics
 Interpret market research findings

Key Terms: Descriptive Statistics, Measure of central tendency, Frequency, Percentage, Mean,
Mode, Median.

Introduction

The data, after collection, has to be processed and analyzed so that meaningful conclusions may be
drawn. Analyzing the collected data with basics tools is a fundamental aspect to draw inference
about populations. The data gathered has to be analyzed by using a number of statistical techniques.
This unit aimed to provide an overview of simple descriptive statistical techniques commonly used
in market research.

4.1. Processing Data

Dear learners! Let’s begin by posing important questions. What do you mean by data processing?
What are the tasks involved in processing raw data?

Data processing includes the collection and manipulation of data in order to produce useful and
meaningful information. Technically speaking, processing implies editing, coding, classification,
and tabulation of collected data. The processing operations explained as follows:

1. Editing of data
Editing is the first stage in data processing. It is the process of examining the collected raw data to
defect errors and omissions and to correct these when possible. Editing is done to assure that the
data are accurate, consistent with other facts gathered, uniformly entered as completed as possible
and have been well arranged to facilitate coding & tabulation.

2. Coding of data
Coding refers to the process of assigning numerals or other symbols to answers so that responses
can be put into a limited number of categories or classes. In general, coding reduces the huge
amount of information collected into a form that is amenable to analysis.

3. Classification:
Classification is the process of arranging data in groups or classes on the basis of common
characteristics. In this way the entire data get divided into a number of groups or classes.

4. Tabulation:
When a mass of data has been assembled, it becomes necessary for the researcher to arrange the
same in some kind of concise and logical order. This procedure is referred to as tabulation. Thus,
tabulation is the process of summarizing raw data and displaying the same in compact form (i.e., in
the form of statistical tables) for further analysis. In a broader sense, tabulation is an orderly
arrangement of data in columns and rows.

Dear learners! Now it is your turn to answer the following self-check questions

Self-check 4-1:

1. Explain data processing and its importance?

2. Discuss the four operations involved in data processing?

Dear learners! Have you answered the self-check questions? If yes, let us move on to the discussion
of analysis of market data.
 4.2. Data Analysis: Descriptive Statistics

Dear learners! Let’s begin by posing important questions. What do you mean by data analysis?
What are the descriptive statistical tools used for data analysis?

Data Analysis is a process of evaluating and describing collected data through the means of statistical or
logical techniques. Data analysis is the computation of certain indices or measures along with
searching for patterns of relationship that exist among the data groups. Data analyses could be of
two types descriptive or inferential. Descriptive analysis is a technique that aims to transform raw data
into meaningful and easy to understand information. In this section, descriptive analysis; Percentage
and Measures of central tendency are discussed.

4.2.1. Data Analysis using Descriptive Statistics

Descriptive statistics help describe and understand the features of a specific data set by giving short
summaries about the sample and measures of the data. Descriptive statistics are broken down into
frequencies and measures of central tendency. Frequency statistics simply count the number of times
that each variable occurs, such as the number of males and females within the sample. Measures of
central tendency give one number that represents the entire set of scores, such as the mean.

Dear learners! However, descriptive statistics includes frequencies, measures of central tendency
and measures of variability, for this grade level only percentages and measures of central tendency
are discussed.

I. Percentages

A commonly used statistical tool, the percentage expresses information as a proportion of a whole.
Percentages are also a good way to show relationships and comparisons-either between categories
of respondents or between categories of responses.

A frequency is simply the number of participants who indicated that category (Eg: "Male").
However, it is oftentimes difficult to interpret frequency distributions because the frequency by
itself is meaningless unless there is a reference point to interpret the number. Percentages are easier
to understand than frequencies because percentage can be interpreted.

Percentage is calculated by taking the frequency in the category divided by the total number of
participants and multiplying by 100%.
Example: Consider Zoma’s hair food and oil case;

For the Yes/No questions of the earlier case, the responses can be analyzed using percentage as
follows:

Hint: Out of 1000 respondents, 700 of them said “YES” and 300 respondents said “NO” for the
question that ‘have you used Zoma’s hair food and oil before?’

Table 4.1: Response for the use of Zoma’s product before

Response Frequency Percent

Yes 700 70%

No 300 30%

Total 1,000 100%

The table be interpreted as;

Table 4.1 shows that, of the total of 1000 respondents, 700 (70%) of respondents have been used
Zoma’s hair food and oil products before.

Percentages tend to be easy to visualize because they show part of a whole. They can easily be
transferred into bar graphs, pie charts, and other images and help readers understand the importance
of a value. The following example shows how percentage is presented in pie chart.

Example:

For the question that “Brand Name of the product” is a factor affecting your purchase. Do you
agree?

Hint: Frequency of responses: 70 (1-Strongly disagree); 130 (2-Disagree); 200 (3-Neutral); 270 (4-
Agree); 330 (5-Strongly agree)
 Name of the Product is a Factor
1
7%
2
13% 5
33%

3
20%

4
27%

Figure 4.1: Name of the product is a factor

The pie chart is interpreted as:

Figure 4.1 shows that, more respondents (60%) tend to agree or strongly agree with the statement
that Brand name of the product is a factor affecting their purchase. From the overall respondents,
(20%) of respondents are neutral with the statement; and (20%) of respondents tend to disagree or
strongly disagree with the statement that brand name of the product is a factor affecting their
purchase.

II. Measures of Central Tendency

Measures of central tendency are used to characterize what is typical for the group. These are
measures which allow us to visualize or identify the central characteristic or the representative unit.
For our purposes, the most likely measures to be used are the mean, the mode, and the median.

a. Mean

The mean, or average, is commonly used in reporting data. It is obtained by summing all the answers
or scores and dividing by the total number. In other words, mean is the sum of the values divided
by the number of values.

Example: The mean of 5, 10, 22, 25, 17 is (5 + 10 + 22 + 25

+ 17) / 5 = 15.8.
Mean scores can also be used to summarize findings from rating scales, such as questions about
attitudes or opinions. Categories such as “not very important,’’ “somewhat important,’’ and “very
important,’’ can be assigned numbers such as 1, 2, and 3. They could be reported in this way:

Example: Consider Zoma’s hair food and oil case;

A calculation of the mean in a rating of respondents’ view towards the new brand name might look
as follows:

(1-4 Scale where 1= Poor, 2=Good, 3=Very Good and 4= Excellent)

Table 4.2: Response to customers’ view towards the new name

Items Poor Fair Good Excellent N

View of responders 1 2 3 4
towards the new (no (100 (600 (300
brand name answers) answers) answers) answers) 1000

The mean rating for the item is calculated by multiplying the number of answers in a category by
its rating value (1, 2, 3, and 4), obtaining a sum and dividing by the total number of answers for
that item. To calculate the mean for item in the example above, follow these steps:

1. Multiply answers by value.

Poor = 0 (0 x 1)

Fair = 200 (100 x 2)

Good = 1800 (600 x 3)

Excellent = 1200 (300 x 4)

2. Sum. 0 + 200 + 180 0+1200 = 3200

3. D i v i d e by N: 3200 ÷ 1000 = 3.2 (mean rating)

b. Mode

The Mode is the most commonly occurring answer of value in your data. The advantage of the
mode as a measure of central tendency is that its meaning is obvious. Further, it is the only measure
of central tendency that can be used with nominal data. Mode denotes the most frequently occurring
value (or va l u e s ). The mode is the value (or values) with the highest frequency.
Example: For men having the following ages - 19, 18, 21, 23, 23, 23, 24 and 21, the mode is
23.

The mode is important only when there is a large number of values. It is not as affected by extreme
values as the mean.

c. Median

The median is the middle value. It is the midpoint where half of the cases fall below and half fall
above the value. Sometimes we may want to know the midpoint value in our findings, or we may
want to divide a group of participants into upper and lower groupings.

To calculate the median, arrange the data from one extreme to the other. Proceed to count halfway
through the list of numbers to find the median value. When two numbers tie for the halfway point,
take the two middle numbers, add them and divide by 2 to get the median. Like the mode, an
advantage of the median is that it is not affected by extreme values or a range in data.

Example:

The following example shows the three measures of central tendency. In this example, we are
analyzing the number of customers visiting the stores.

Store Number
of visitors
Number

1 3
2 3
Mean = 7.2 (number of visitors
3 3
4 5 divided by number of stores)

5 6 Mode = 3 (most often occurring

6 6 response)

7 8 Median = 6 (mid-point)
8 9
9 10
10 19
Total 72
 Dear learners! Now it is your turn to answer the following self-check questions

Self-check 4-2:

1. Explain the importance of data analysis in market research?

2. Explain descriptive analysis method?
3. Discuss the three most commonly used measures of central tendency?

Dear learners! Have you answered the self-check questions? If yes, let us move on to the discussion
of interpreting market data.

4.3. Interpretation of findings

Dear learners! May a pose a question? What does it meant by data interpretation in market
research? Do you know the methods for drawing conclusions?

In essence, the researcher’s work goes well beyond the collection and analysis of data. These tasks
extends to concluding the findings of his investigation. It is through interpretation that the
researcher can understand the real significance and know the real purpose of findings.

Interpretation of research (statistical) results means explaining the figures and facts in the context
of theory on which the investigation is done. Thus, interpretation serves a dual purpose. First, it
gives an understanding of the general factors that seem to explain what has been observed and
second, it provides theoretical conception which can serve as a guide for further research.

Interpretation means bringing out the meaning of data. We can also say that interpretation is to
convert data into information. The essence of any research is to do interpretation about the study.
This requires a high degree of skill. There are two methods of drawing conclusions:

i. Induction method: In the induction method, one starts from observed data and then
generalization is done which explains the relationship between objects observed

Example of Induction: All products manufactured by Sony are excellent. DVD player model 2602
MX is made by Sony. Therefore, it must be excellent.
ii. Deduction method: On the other hand, deductive reasoning starts from some general law and
is then applied to a particular instance i.e., deduction comes from the general to a particular
situation.
 Example of Deduction: All products have to reach decline stage one day and become obsolete.
Radio is in decline mode. Therefore, it will become obsolete.

Dear learners! So far, data processing, analysis and interpretation of data have been discussed
earlier. Now it is your turn to answer the following self-check questions

Self-check 4-3:

1. Explain the concept of interpretation of results in market research?

2. Explain the two methods of drawing conclusions?

Dear learners! Have you answered the self-check questions? If yes, let us move on to reading the
unit summary and to perform the unit review questions.

Unit Summary

The data, after collection, has to be processed and analyzed so that meaningful conclusions may be
drawn.

Data processing includes the collection and manipulation of data in order to produce useful and
meaningful information. Technically speaking, processing implies editing, coding, classification,
and tabulation of collected data.

Data analysis is the computation of certain indices or measures along with searching for patterns
of relationship that exist among the data groups.

Descriptive statistics help describe and understand the features of a specific data set by giving short
summaries about the sample and measures of the data. It includes frequencies, measures of central
tendency, and measures of variability.

Measures of central tendency are measures which allow us to visualize or identify the central
characteristic or the representative unit. The measures to be used are the mean, the mode, and the
median.

Interpretation of results involves drawing conclusions in inductive or deductive approaches.

 Unit Review Questions

Part One: Discussion Questions

Instruction: Give your brief answer for the following review questions:

1. What is data processing? Explain the various functions involved in processing data?

2. What is data analysis? Explain the purpose of data analysis in market research?

3. Differentiate between percentage and measure of central tendency?

4. Explain what is mean, mode and median?

5. Differentiate between inductive and deductive methods of drawing conclusion?

 UNIT FIVE
MARKET RESEARCH REPORT
Unit Coverage

This unit is designed to provide you with the necessary knowledge, skills and attitude regarding the
following content:

1.1. Meaning and Objectives of Market Research Report

1.2. General Format for Writing Market Research Report

Unit Learning Outcomes

This unit will assist you to attain the following learning outcomes. Specifically, upon the completion
of this unit, you will be able to:

 Understand the meaning and functions of market research report

 Prepare market research report by applying its standard format

Key Terms: Research Report, Oral Report, Written Report

Introduction

The effectiveness of the research depends upon the methods of communication and presentation of
the research report. A very useful research, if not presented in a suitable manner for the users of the
research findings, may not serve its purpose. The report of research, thus, is a statement of the
contents in brief, the procedure adopted and findings arrived at by the researcher. Thus, this unit
discussed how to write a market research report.

[Link] and Objectives of Market Research Report

Dear learners! Can you try to explain the concept of research report? What are the objectives of
writing and presentation of a report in research works?

5.1.1. Defining Market Research Report

A market research report is an oral or written presentation to management detailing a research

project's objectives, methodology, findings, and recommendations. Typically, written reports are
more detailed and formal than an oral report. Oral reporting is required, when the researchers are asked
to make an oral presentation.
 5.1.2. Objectives of Writing Market Research Report

The objective of a market research report is to provide a clear, accurate and complete report of the
research project. It should help clarify the research issues so management can use the findings as
an aid to decision-making. Writing market research report usually aimed to:

 To communicate the marketing research result

 To help the executives in selection of right action
 To verify the conclusions of other reports
 To serve as an essential reference for future research
Dear learners! Now it is your turn to answer the following self-check questions

Self-check 5-1:

1. Discuss the objectives of writing market research report?

Dear learners! Have you answered the self-check questions? If yes, let us move on to the discussion
of the basic elements and structure of written format of market research report.

5.2. General Format for Written Report

While the elements of actual reports may vary slightly, a basic research report has three sections:

Section I: Introduction

Section II: Body of the Report

Section III: Appendices

Here is an outline of a standard written research report. Actual reports may vary somewhat from
this outline:

I. Introduction

A. Title page
B. Table of contents
C. Executive summary

II. Body of the report

 A. Introduction
B. Background
C. Methodology
D. Findings
E. Limitations
F. Conclusions and recommendations

III. Appendices

A. Questionnaire(data collection form)

B. Bibliography

Section I of the Research Report: Introduction

1. Title Page

The first page of the research report is the Title Page. This page should include the following
elements:

 Title of the research project

 Names, titles, firm, and contact information of the person who authorized and directed the
project for the client
 Names, titles, firm, and contact information of the people who prepared the report
 Release date of the report

2. Table of Contents

The table of contents is based on the final outline of the report. It includes a list of the report's
sections and sub-sections, and their respective page numbers.

3. Executive Summary

The executive summary is a short synopsis of the research report. Some might even call it the mini-
report. It is typically no more than one pages long. It is intended to provide busy senior executives
with the highlights of the study. An effective Executive summary includes the following elements:

 Introductory statement that defines the research objectives and research question
 Methodology
 Key findings
 Conclusions and indicated actions

Section II of the Research Report: Body of the Report

The body of the market research report includes the following sections:

1. Introduction

This section of the report reviews the objectives of the research. It summarizes the research proposal
and highlights any changes to the research design that were agreed to after the client approved the
proposal.

2. Background

This section covers a review of the literature and secondary research. And, if relevant, this section
cites primary research sponsored by the client on similar issues.

3. Methodology

This is the most technical section of the research report. It includes the following sections:

A. Research Design:

This includes a statement of the type of research conducted: Exploratory, Descriptive or Causal.
Secondary research sources are mentioned along with a description of how primary data were
collected. And, the authors should include a rationale for why the research design is appropriate for
achieving the research objectives and answering the research questions. In an appendix, the authors
of the report include any discussion guides, questionnaires or observation forms.

B. Sample Design:

This section includes:

 A statement defining the population of interest and the sampling frame

 Sampling units included in the study

 The sampling method used

 The size of the selected sample

 The response rate achieved

C. Data Collection and Fieldwork:

This section reviews how the fieldwork was conducted. It states the number and types of
fieldworkers, how they were trained and supervised, and how the accuracy of their work was
verified.

D. Statistical Analysis:

A review of the statistical methods employed in the analysis. This section provides a rationale for
these methods, but the actual analysis is not presented.

E. Glossary:

A glossary may be included to define any technical terms that might be unknown to experienced
managers.

4. Findings

The findings section is the longest part of the research report. It is where the results of the study are
reported in detail. This section should include supporting tables and graphs. Tables and graphs make
the report easier to read and more memorable. To avoid overwhelming the reader, the findings
should refer the reader to the detailed data, which should be in an appendix.

5. Limitations of the Study

No research design is perfect; they all have their limitations. Good researchers always state the
limitations of their research.

6. Conclusions and Recommendations

After the findings are presented, the researchers present their conclusions and recommendations,
including conducting further research.
Section III of the Research Report:

1. Appendices

The appendices of the market research report include all technical materials and data related to
specific parts of the study. The appendices include questionnaires and other data collection forms

2. Bibliography, if appropriate

Dear learners! Are you very clear about the standard formats research report? Well and good!
Let you attempt the following questions as a check for your understanding.

Self-check 1-3:

1. Explain Executive summary and its purpose in research report?

2. What are included under methodology part of the research report?

Dear learners! Have you answered the self-check questions? If yes, let us move on to reading the
unit summary and to perform the unit review questions.

Unit Summary

A market research report is a very formal document that is written for a variety of purposes. The
objective of a market research report is to provide a clear, accurate and complete report of the
research project so that assist management in making decisions.

Presenting the results of a market research study to management generally involves a formal
written report as well as an oral presentation.

Report should be able to draw the interest of the readers. Therefore, report should be centric.
Written report should contain title page, contents, executive summary. Body, conclusions and
appendix.
 Unit Review Questions

Instruction: Give your brief answer for the following review questions:

1. Discuss the objectives of writing market research report?

2. Distinguish between an oral and a written research report?

3. Explain the purpose of an Executive Summary?

4. Outline the elements of a methodology part of a market research report?

5. Discuss the main elements of a clear, accurate, and complete research report?
 Project Work

Project Name: Conducting a Market Research

Project Description: The aim of this project work is for students to demonstrate both their
understanding of and ability to formulate, administer and report on a suitable marketing research
project. The research project is intended to give practical application to research theory, giving each
student the opportunity to conduct a piece of marketing research and provide insight into the
marketing research process.

Objectives of the Project Work: In the completion of this project work, students will be able to

 Identify and formulate a market research problem.

 Apply theoretical marketing research knowledge to practical situations.
 Demonstrate basic marketing knowledge to practical situations in solving marketing
problems and assessing marketing opportunities.
 Besides, this project work help students to demonstrate sound analytical, problem-solving,
team work and communication skills.

General Instructions:

 Your project work will be a group task.

 Group size must be no larger than 3-5 persons per group.
 This project is in 2 parts:
o Part 1: As a group, you are required to prepare a detailed Market Research Proposal
that clearly outlines the marketing problem and research objectives and details a
recommended research approach to meet these objectives.
o Part 2: Prepare and submit the market research report using the standard format for
writing market research report.

Procedures for conducting your market research project

As a student researcher tasked with a market research project, it's essential to approach the task
systematically to produce a well-researched and insightful document. Here's a detailed guide on
how to conduct a comprehensive market research and you are required to follow these procedures
while conducting your market research.
 1. Select a market, an industry or a business

In this project, you are required to select a market, an industry or a business in which to base your
research.

2. Choose a Relevant Market Research Topic

Select a topic that aligns with your interests, the course content, and current industry trends. Ensure
the topic is specific enough to allow for in-depth research but broad enough to find sufficient
information. The topic you are going to select for studying must be under the scope of market
research.

3. Conduct Preliminary Market Research

Start with preliminary research to familiarize yourself with the topic. Use reputable sources such as
academic journals, industry reports, government publications, and credible websites. Take notes
and compile a list of potential sources for deeper analysis.

4. Define Marketing Objectives and Research Questions

Based on your preliminary research, define clear objectives for your market research. What do you
aim to achieve? What questions do you need to answer? Formulate research questions that guide
your investigation and provide focus.

5. Choose Market Research Methods

Select appropriate research methods and techniques. The methodology part includes; select market
research design and describe why you have chosen the particular research design; select data type
and collection methods, this may include questionnaire surveys, interviews, focus groups,
observation, and secondary data analysis and describe the each technique that you are going to use;
And description of the target population, sample size and sampling technique that you are going to
use in the study are outlined.

6. Develop a Market Research Plan (Market Research Proposal)

Create a detailed market research plan outlining the background of the study, statement of the
problem, market research objective (both general and specific), research methodology include-the
market research design, sampling design, data collection plan, data analysis and also research steps,
timeline and budget plan are included. Ensure ethical considerations, such as obtaining consent and
maintaining confidentiality, are addressed.

Note That: The market research proposal will be submitted at this stage of the project.

7. Collect Data

Execute your research plan by collecting data through chosen methods. Maintain accuracy,
reliability, and validity in data collection processes. Keep detailed records and organize data
systematically for analysis.

8. Analyze Data

Once data collection is complete, analyze the data using appropriate techniques. For quantitative
data, use simple statistical analysis tools. Interpret the findings in relation to your research questions
and objectives.

9. Prepare a Market Research Report

Structure your market research as a formal report, following academic standards. Include an
executive summary, introduction, methodology, findings, analysis, conclusions, recommendations,
and references. Use clear headings and subheadings for easy navigation.

In your report, provide actionable recommendations based on your research findings. Consider the
practical implications for businesses, policymakers, or stakeholders. Discuss potential future trends
or developments relevant to the topic.
Reference:

Gates, Roger et al, John Wiley & sons, Marketing Research: The impact of internet, Great Britain,
2002
G. C. Beri, Marketing Research, McGraw Hill, New Delhi, 200.
John Boyce Marketing Research, Tata McGraw Hill Publishing Co. Ltd., Maharashtra, 2011
M.K. Gawande, Fundamentals of Marketing Research, Chandralok Prakashan, Kanpur, 2012.
Rajendra Nargundkar, Marketing Research, Text and Cases, McGraw Hill, 2nd edition
S.D. Singh, Encyclopedia of Marketing Research Series, Anmol Publications Pvt. Ltd., New
Delhi, 2012.
Suja Nair, Marketing Research (Text with Cases), Himalaya Publishing House, Maharashtra,
2014.
V. Kumar, Marketing Research: A Global Outlook, Sage Publications, New Delhi, 2015