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Marketing Research: Questions and Answers

Lecture 1: Introduction to Marketing Research

1. Define marketing research.


According to ESOMAR (the European Society for Opinion and Marketing Research) marketing
research is a key element within the total field of marketing information. It links the consumer
and the public to the marketer through information.
2. Describe the task of marketing research.
The task of marketing research is to conduct information that is used to identify and define
market opportunities and problems, to generate, refine and evaluate marketing action, to
improve understanding of marketing as a process and to monitor marketing performance.
3. What decisions are made by marketing managers?
There are several decisions made by marketing managers, such as: market segmentation,
target market selection, marketing programs, performance and control. Marketing managers
exchange values with consumers, employees, shareholders and suppliers in order to learn
customer behavior and achieve their satisfaction and loyalty.
4. How does marketing research help in supporting these decisions?
Marketing research supports the decisions of marketing managers by: the nature and scope of
target markets, the forces that shape the marketing system, evaluating marketing mix variables
and evaluating successes and failures of marketing decisions.
5. What do you see as the major challenges for marketing researchers that emerge from
the ESOMAR definition of marketing research?
Marketing research specifies the information required to address issues and challenges such
as: linking the consumer, customer and public to the market, designs the method for collecting
information, manages and implements the data collection process, analyses the results and
communicates the findings and their implications.
6. How may the sound practice of problem identification research enhance the sound
practice of problem solving research?
Problem identification research is undertaken to help identify problems which are not
necessarily apparent on the surface and yet exist or are likely to arise in the future. On the
other hand, problem solving research undertaken to help solve specific marketing problems.
Problem identification research may enhance the problem solving research because it would
solve the problems that may influence the variables examined in the problem solving research
process. Without having the problem identification research, the problem solving research may
not be justifiable and useful.
7. List and describe the steps in the simple marketing research process.
There are 6 steps in the simple marketing research process:
Problem definition; includes purpose of research, background information, information
needed and the use-decision maker, interviews with experts, secondary data etc.
Research approach developed; includes formulating objective of theoretical framework,
analytical models, research questions, hypothesis and identifying information.
Research design developed; includes framework or blueprint for conducting research and
details the procedures necessary, design study that will test hypothesis in 7 steps.

Fieldwork or data collection; includes preparing, selecting, training, supervision and


evaluation of the field force for the field/office.
Data preparation and analysis; includes editing, coding, transcription and verification of
data.
Report preparation and presentation; includes written report that addresses the specific
research questions identified, describes the approach, the research design, data collection
and data analysis procedures adopted and presents the results and main findings.
8. Explain why there may be the need for iterations between stages of the marketing
research process.
There may be the need for iterations between the stages because of many reasons. For
example, all of the stages are correlated and they require to be deeply examined, sometimes
maybe more than two or three times. After we identify the problem, we may have the need to
do both marketing decision problem and marketing research problem. Another issue is that we
may have to interpret and present our findings after every collection of data: secondary,
qualitative or quantitative. In that case we repeat the last step several times, so that we make
sure that our data is accurate.
9. Explain a classification of marketing research.
According to ESOMAR definition, the first thing is to identify opportunities and problems and
the second thing is to generate and refine marketing actions. Marketing research is classified
in two parts. The first is problem identification research undertaken to help identify problems
which are not necessarily apparent on the surface and yet exist or are likely to arise in the
future. It covers: market potential research, market share research, market characteristics
research, sales analysis research, forecasting research and business trends research. The
second is problem solving research undertaken to help solve specific marketing problems. It
includes: segmentation research, product research, pricing research, promotion research and
distribution research.

Lecture 2: Defining the Marketing Research Problem and Developing an Approach

1. What is the nature of the first step in conducting a marketing research project?
The first step of a MR project is the problem definition. It is one of the most important and most
difficult tasks, but a problem well defined is half solved.
2. Why is it vital to define the marketing research problem correctly?
It is vital to define correctly the MR problem because inadequate problem definition is only
leading cause of failure of MR projects. Without the problem definition, the whole MR project
would be a waste of time and resources.
3. What is the role of the researcher in the problem definition process?
The researcher has the main role in identification of the problem because it is essential to have
an idea what the problem is before examining how the same problem would be solved.
4. What are the components of a marketing research brief?
There are 6 components of MR brief:
Background information
Objectives: (a) marketing and (b) research

5.

6.

7.

8.

Target to research
Who is to use findings: (a) analysis and (b) format
Constraints
Administration
What are the components of a marketing research proposal?
There are 12 components of a MR proposal:
Executive summary
Background
Problem definition
Research objectives
Research design
Fieldwork/data collection
Data analysis
Reporting
Cost and timetable
Research organization and researchers
Appendices
Agreement
How could a marketing researcher be creative in interpreting a research brief and
developing a research proposal?
A marketing researcher can be creative in several ways. It makes the initiator of the brief more
certain of how the information to be collected will support decision making. The brief helps the
marketer and the researcher to plan and implement the research design and the researcher
can easily reduce disputes that can occur when the gaps in the marketers knowledge are not
filled as intended. Marketing researchers use the briefs and proposals in order to save
resources in time and money.
What is the significance of the background section of a research brief and research
proposal?
Background information is the most essential section in both brief and proposal because it is
basically the first step that conducts data about the problem that needs to be solved. It helps
researchers to make their lead in defining and solving a MR problem.
Describe some of the reasons why managers are not often clear about the real
problem they face.
There are many reasons why managers are not clear about the problem they face. Firstly, they
may have not gathered the needed background information and lose lead about the problem.
Secondly, they may make a mistake in the problem definition, which will lead them to wrong
solutions. Another problem may be changing the order of the steps in the research, which will
lead to lack of information and the manager will not be able to see the real nature of the
problem.

9. What interrelated events occur in the environmental context of a research problem?


The interrelated tasks that occur in the environmental context of a research problem are:
discussions with decision-makers, interviews with experts, secondary data evaluation and
qualitative research.
10. What are some differences between a marketing decision problem and a marketing
research problem?

Marketing decision problem is confronting the marketing decision-maker which asks what the
decision needs to do and requires action. On the other hand, marketing research problem is a
problem that entails determining that information is needed and how it can be obtained in the
most feasible way.
11. Describe the factors of the approach to a research problem.
The basic factors of the research approach are: objective/theoretical foundations, the analytical
model, research questions, hypotheses and specification of the information needed. The
theoretical foundations consist of information that can theoretically answer questions regarding
the problem and provide understanding of specific processes. The analytical mode is explicit
specification of a set of variables and their interrelationships designed to represent some real
system or process. Research questions are refined statements of the specific components of
the problem. On the other hand, a hypothesis is an unproven statement or proposition about a
factor or phenomenon that is of interest to the researcher. After collecting the data, we make
specification of the information needed to solve the problem.
12. What is the role of theory that may affect the development of a research approach?

13. What are the most common forms of analytical models?


An analytical model is explicit specification of a set of variables and their interrelationships
designed to represent some real system or process. The most common forms of this model
are: verbal, graphical and mathematical models. Verbal models provide a written
representation of the relationships between variables. Graphical models are visual and are
used to isolate variables and to suggest directions of relationships, but are not designed to
provide numerical results. Mathematical models explicitly specify the relationships among
variables, usually in equation form.
14. What are the differences between research questions and hypothesis?
Research questions are refined statements of the specific components of the problem. On the
other hand, a hypothesis is an unproven statement or proposition about a factor or

phenomenon that is of interest to the researcher. A hypothesis is a possible answer to the


research question.
15. Is it necessary for every research project to have a set of hypothesis? Why?
It is not necessary for every MR project to have a set of hypothesis. In some cases it may be
necessary because the hypothesis may be the key component to solve a MR problem.
However, in some cases, the hypothesis may be irrelevant, especially if it needs to be
examined through some of the models.
Lecture 3: Research Design
1. Define research design.
A research design is the heart and soul of a marketing research project. It outlines how the
marketing research project will be conducted and guides data collection, analysis and report
presentation. A research design is a framework or blueprint for conducting the marketing
research project. It details the procedures necessary for obtaining the information needed to
structure or solve marketing research problems.
2. List the research design components/tasks.
There are 6 components of the research design:
Define information needed.
Design the exploratory, descriptive and/or causal phases of the research.
Specify the measurement and scaling procedures.
Construct and pretest a questionnaire (interviewing form) or an appropriate form of data
collection.
Specify the sampling process and sample size.
Develop a plan for data analysis.
3. Classify various research designs.

4. Differentiate between exploratory and conclusive research.


Exploratory research is the research design characterized by a flexible and evolving approach
to understand marketing phenomena that are inherently difficult to measure. Conclusive
research is a research design characterized by the measurement of clearly defined marketing
phenomena.

5. What are the major purposes for which exploratory research is conducted?

6. What are the major purposes for which descriptive research is conducted?
This type of conclusive research has its major objective in the description of something
usually market characteristics or functions:
To describe the characteristics of relevant groups, such as consumers, salespeople,
organizations, or market areas.
To estimate the percentage of units in a specified population exhibiting a certain behavior.
To determine the perceptions of product characteristics.

To determine the degree to which marketing variables are associated.


To make specific predictions.
7. Compare and contrast cross-sectional and longitudinal designs.
Cross-sectional design has its advantages at representative sampling and response bias,
whereas the longitudinal design has disadvantages. However the longitudinal design has
advantages at detecting change, large amount of data collection and accuracy, where the
cross-sectional design has its disadvantages.
8. What is a causal research design? What is its purpose?
Causal research design is a type of conclusive research where the major objective is to obtain
evidence regarding cause and effect (causal) relationship. The purpose of this design is to
understand which variables are the causes (independent variables) and which variables are
the effects (dependent variables) of a phenomenon and to determine the nature of the
relationship between the causal variables and the effect to be predicted. The most common
methods used in causal research design are experiments.
9. What is the relationship between exploratory, descriptive and causal research?
1. When little is known about the problem situation, it is desirable to begin with exploratory
research. Exploratory research is appropriate for the following:
When the nature of the topic under study cannot be measured in a structured,
quantifiable manner.
When the problem needs to be defined more precisely.
When alternative courses of action need to be identified.
When research questions or hypotheses need to be developed.
When key variables need to be isolated and classified as dependent or independent.
2. Exploratory research may be an initial step in a research design. It may be followed by
descriptive or causal research. For example, hypotheses developed via exploratory
research can be statistically tested using descriptive or causal research.
3. It is not necessary to begin every research design with exploratory research. It depends on
the precision with which the problem has been defined and the researchers degree of
certainty about the approach to the problem. A research design could well begin with
descriptive or causal research.
4. Although exploratory research is generally the initial step, it need not be. Exploratory
research may follow descriptive or causal research. For example, descriptive or causal
research results in findings that are hard for managers to interpret. Exploratory research
may provide more insights to help understand these findings.

10. What potential sources of error can affect a research design?

11. Which of the following statements is correct:


1. Both the management decision problem and the marketing research problem are action
oriented
2. The management decision problem is information oriented and the marketing research
problem is action oriented
3. The management decision problem is action oriented and the marketing research problem is
information oriented.
12. An exploratory research design seeks to:
1. Define the research problem more precisely.
2. Test specific hypothesis
3. Determine the degree to which marketing variables are associated
4. All of the above
13. Random sampling error arises because of:
1. Surrogate information error
2. Respondent error
3. Questioning error
4. The sample chosen is not representative of the population from which it was drawn.
14. Marketing research helps the marketing manager to:
1. Link marketing variables to the environment
2. Link marketing variables to the consumer
3. Reduce uncertainty in marketing decision making
4. All of the above

Lecture 4: Exploratory Research Design: Secondary Data

1. What are the differences between primary data, secondary data and marketing
intelligence?
Primary data are originated by a researcher for the specific purpose of addressing the problem
at hand. They are individually tailored for the decision-makers of organizations that pay for
well-focused and exclusive support. Contrasted, secondary data are data which have already
been collected for purposes other than the problem at hand and these data can be located
quickly and inexpensively. Marketing intelligence are qualified observations of events and
developments in the marketing environment.
2. What are the relative advantages and disadvantages of secondary data?
Advantages of secondary data are: easily accessible, relatively inexpensive and quickly
obtained. Disadvantages of secondary data are: having data that has been collected for other
than the problem at hand, current relevance, accuracy, data that is not appropriate for the
present situation.
3. At what stages of the marketing research process can secondary data be used?
Secondary data can be used at many stages in the marketing research process, such as:
diagnose the research problem, develop an approach to the problem, develop a sampling plan,
formulate an appropriate research design, answer certain research questions or test some
hypothesis, interpret primary data with more insight, validate qualitative research findings etc.
4. Why is it important to locate and analyze secondary data before progressing to primary
data?
The act of sourcing, evaluating and analyzing secondary data can realize great insights for
decision-makers. It is also vital to successful problem diagnosis, sample planning and
collection of primary data.
5. How may secondary data be used to validate qualitative research findings?
The secondary data has disadvantage when discussing qualitative research findings, but it can
be helpful if we have a collection of up-to-date data that can help us in the problem diagnosis
and for the further steps in the marketing research. It can also be helpful in the decision
whether it is obligatory to search for primary data.
6. What is the difference between internal and external secondary data?
The internal secondary data is data that is ready to use, but requires further processing. On
the other hand, external secondary data contains already published materials, computerized
data bases and syndicated services.
7. By what criteria may secondary data be evaluated?
Some of the criteria for evaluating secondary data are:
Specifications: methodology used to collect the data.
Error: accuracy of the data.
Currency: when the data were collected.
Objective(s): the purpose for which the data were collected.
Nature: the content of the data.
Dependability: overall, how dependable are the data.
8. What criteria would you look for when examining the design and specifications of
secondary data? Why is it important to examine these criteria?
In this case we should pay attention to: data collection method, response rate, population
definition, sampling method, sampling size, questionnaire design, fieldwork, data analysis etc.
because data should be reliable, valid and generalized to the problem at hand.

9. To what extent should you use a secondary data source if you cannot see any explicit
objectives attached to that research?
We should search for secondary data source until it becomes expensive and hard to access it.
Also, if we have enough quantity of secondary data and we lack qualitative data, we can try to
gather data using the primary data research method.
10. If you had two sources of secondary data for a project, the first being dependable but
out of date, the second not dependable but up to date, which would you prefer?
I would choose the one that is not dependable, but up to date, because it might turn out useful
at some point among the marketing research stages.
11. Define the syndicated sources of secondary data.
Syndicated sources of secondary data can be classified based on the unit of measurement
and are contained households/consumers or institutions. To get secondary data from these
units we can choose among: surveys, mail diary panels (purchase, media), electronic scanner
services etc.
12. Secondary data may be biased as a result of:
1. Sample selection
2. Data analysis
3. Reporting
4. All of above
13. Secondary data is information that:
1. Has been collected for purposes other than the problem at hand
2. Is derived from the analysis and interpretation of the research results
3. Has been obtained from two or more interviews with respondents
4. Is collected by the marketing researcher for the specific purpose of addressing the problem
at hand
14. Which of the following is NOT a classification of computerized databases:
1. Off-line
2. On-line
3. Internet
4. Desktop
15. Computerized databases are one of the most widely used sources of secondary
information because:
1. The information is current
2. Data searching is fast and convenient
3. It is low cost
4. All of above
16. Syndicated services:
1. Collect and sell common pools of data designed to serve the information needs shared by
multiple companies
2. Collect data to answer specific marketing research problems
3. Provide generic information about industries or markets
4. Are more expensive than primary data collection because they provide more detailed
information

Lecture 5: Exploratory Research Design: Qualitative Research

1. Define qualitative and quantitative research and explain the differences between
qualitative and quantitative research.
Qualitative research helps the marketer to understand the richness, depth and complexity of
consumers and it is an unstructured exploratory research methodology based on small
samples that provides insights and understanding of the problem setting. Quantitative research
is a research methodology that seeks to quantify the data and typically, applies some form of
statistical analysis. Other differences are:

Objective

Sample

Quality research

Quantitative research

To gain a qualitative
understanding of the underlying
reasons and motivations

To quantify the data and generalize the


results from the sample to the
population of interest

Small number of nonrepresentative cases

Large number of representative cases

Data collection Unstructured


Data analysis
Outcome

Structured

Non-statistical

Statistical

Develop an initial understanding

Recommend a final course of action

2. What are various forms of qualitative research procedures (Classification)?

3. Explain focus group and role of the moderator.


Focus group can be explained as an interview (discussion) conducted by a trained moderator
among a small group of respondents in an unstructured and natural manner. Moderator is an
individual who conducts a focus group interview, by setting the purpose of the interview,
questioning, probing and handling the process of discussion.
4. Explain probing technique.
Probing is a motivational technique used when asking questions to induce the participants to
enlarge on, clarify or explain their answers.
Would you explain further?
Can you give me an example of what you mean?
Would you say more?

Is there anything else?


Please describe what you mean.
I dont understand.
Tell me more about that.
How does that work?
5. Why is the focus group moderator so important to the success of a focus group
discussion?
The best moderators of focus groups are those that create a spirit of spontaneity and a
passion for the issues under discussion.
Kindness with firmness: The moderator must combine a disciplined detachment with
understanding empathy so as to generate the necessary interaction.
Permissiveness: The moderator must be permissive yet alert to signs that the groups
cordiality or purpose is disintegrating.
Involvement: The moderator must encourage and stimulate intense personal involvement.
Incomplete understanding: The moderator must encourage respondents to be more
specific about generalized comments by exhibiting incomplete understanding.
Encouragement: The moderator must encourage unresponsive members to participate.
Flexibility: The moderator must be able to improvise and alter the planned outline amid the
distractions of the group process.
Sensitivity: The moderator must be sensitive enough to guide the group discussion at an
intellectual as well as emotional level.
6. What is an in-depth interview?
In-depth interview is an unstructured, direct, personal interview in which a single respondent is
probed by a highly skilled interviewer to uncover underlying motivations, beliefs, attitudes and
feeling on a topic.
7. Explain laddering techniques.
In laddering, the line of questioning procedures from product characteristics to user
characteristics varies. This technique allows the researcher to tap into consumers network of
meanings. Example of product characteristic is wide body aircraft. On the other hand,
examples for user characteristics may be: I can get more work done, I accomplish more, I feel
good about myself etc.
8. What are projective techniques? Under what circumstances should projective
techniques to be used?
An unstructured, indirect form of questioning that encourages respondents to project their
underlying motivations, beliefs, attitudes or feelings regarding the issues of concern. In
projective techniques, respondents are asked to interpret the behavior of others. In
interpreting the behavior of others, respondents indirectly project their own motivations, beliefs,
attitudes, or feelings into the situation.
9. List and explain projective techniques.
1. Association techniques Participants are presented with a stimulus and are asked to
respond with the first thing that comes to mind.
2. Word Association In word association, respondents are presented with a list of words,
one at a time and asked to respond to each with the first word that comes to mind. The
words of interest, called test words, are interspersed throughout the list which also contains

some neutral, or filler words to disguise the purpose of the study. Responses are analyzed
by calculating:

The frequency with which any word is given as a response;

The amount of time that elapses before a response is given; and

The number of respondents who do not respond at all to a test word within a
reasonable period of time.
3. Completion Techniques In sentence completion, respondents are given incomplete
sentences and asked to complete them. Generally, they are asked to use the first word or
phrase that comes to mind.
4. Construction Techniques with a picture response, the respondents are asked to describe
a series of pictures of ordinary as well as unusual events. The respondent's interpretation
of the pictures gives indications of that individual's personality. In cartoon tests, cartoon
characters are shown in a specific situation related to the problem. The respondents are
asked to indicate what one cartoon character might say in response to the comments of
another character. Cartoon tests are simpler to administer and analyze than picture
response techniques.
5. Expressive Techniques In expressive techniques, respondents are presented with a
verbal or visual situation and asked to relate the feelings and attitudes of other people to
the situation. Role playing is when respondents are asked to play the role or assume the
behavior of someone else. Third-person technique is when the respondent is presented
with a verbal or visual situation and the respondent is asked to relate the beliefs and
attitudes of a third person rather than directly expressing personal beliefs and attitudes.
This third person may be a friend, neighbor, colleague, or a typical person.
10. Describe the word association technique. Give an example of a situation in which this
technique is especially useful.
Word Association In word association, respondents are presented with a list of words, one at
a time and asked to respond to each with the first word that comes to mind. The words of
interest, called test words, are interspersed throughout the list which also contains some
neutral, or filler words to disguise the purpose of the study. Responses are analyzed by
calculating:

The frequency with which any word is given as a response;

The amount of time that elapses before a response is given; and

The number of respondents who do not respond at all to a test word within a
reasonable period of time.
11. Describe the story completion technique. Give an example of the type of participant and
the context in which such a technique would work.
In story completion, respondents are given part of a story enough to direct attention to a
particular topic but not to hint at the ending. They are required to give the conclusion in their
own words.
Lecture 6: Descriptive Research Design: Survey and Observation

1. What is survey method and discuss its advantages and disadvantages.


The key to good descriptive research is knowing exactly what you want to measure and
selecting a survey method which every respondent is willing to cooperate and capable of

giving you complete and accurate information efficiency. The Survey Method of obtaining
information depends on the questioning the respondents about behavior, intention, attitudes,
awareness, motivations, demographic, lifestyle characteristics etc. The survey method is a
structured questionnaire given to a sample of a population and designed to elicit specific
information from the respondents.
Advantages:
The questionnaire is simple to administer.
The data obtained are reliable because the responses are limited to the alternatives
stated.
Coding analyses and interpretation of data are relatively simple.
Disadvantages:
Respondents may be unable or unwilling to provide the desired information.
Structured questions and fixed-response alternatives may result in loss of validity for
certain types of data such as beliefs and feelings.
Wording questions properly is not easy.
2. Classify quantitative survey methods.

3. Identify the criteria for evaluating survey methods.


Sample Control the ability of the survey mode to reach the units specified in the sample
effectively and efficiently.
Control of the Data Collection Environment The degree of control a researcher has over
the environment in which the respondent answers the questionnaire.
Control of Field Force The ability to control the interviewers and supervisors involved in
data collection.
Quantity of Data The ability to collect large amounts of data.
Response Rate defined as the percentage of the total attempted interviews that are
completed.
Perceived Anonymity refers to the respondents' perceptions that their identities will not be
discerned by the interviewer or the researcher.
Social Desirability/Sensitive Information the tendency of the respondents to give answers
that are socially acceptable, whether or not they are true.

4.
1.

2.

3.

Potential for Interviewer Bias The extent of the interviewer's role determines the potential
for bias.
Speed The total time taken for administering the survey to the entire sample.
Cost The total cost of administering the survey and collecting the data.
Explain and classify the different observation methods.
Structured versus Unstructured Observation
For structured observation, the researcher specifies in detail what is to be observed and
how the measurements are to be recorded, e.g., an auditor performing inventory analysis
in a store.
In unstructured observation, the observer monitors all aspects of the phenomenon that
seem relevant to the problem at hand, e.g., observing children playing with new toys.
Disguised versus Undisguised Observation
In disguised observation, the respondents are unaware that they are being observed.
Disguise may be accomplished by using one-way mirrors, hidden cameras, or
inconspicuous mechanical devices. Observers may be disguised as shoppers or sales
clerks.
In undisguised observation, the respondents are aware that they are under observation.
Natural versus Contrived Observation
Natural observation involves observing behavior as it takes places in the environment. For
example, one could observe the behavior of respondents eating fast food in Burger King.
In contrived observation, respondents' behavior is observed in an artificial environment,
such as a test kitchen.

Personal observation: A researcher observes actual behavior as it occurs. The observer


does not attempt to manipulate the phenomenon being observed but merely records what
takes place. For example, a researcher might record traffic counts and observe traffic
flows in a department store.
Mechanical observation does not require respondents' direct participation but does
require respondent involvement.
Audit: The researcher collects data by examining physical records or performing inventory
analysis. Data are collected personally by the researcher. The data are based upon
counts, usually of physical objects. Retail and wholesale audits conducted by marketing
research suppliers were discussed in the context of syndicated data
Content analysis: The objective, systematic, and quantitative description of the manifest
content of a communication. The unit of analysis may be words, characters (individuals
or objects), themes (propositions), space and time measures (length or duration of the
message), or topics (subject of the message). Analytical categories for classifying the

units are developed and the communication is broken down according to prescribed
rules.
Trace analysis: Data collection is based on physical traces, or evidence, of past behavior.
The selective erosion of tiles in a museum indexed by the replacement rate was used to
determine the relative popularity of exhibits. The number of different fingerprints on a
page was used to gauge the readership of various advertisements in a magazine.
5. Describe the relative advantages and disadvantages of observational methods and
compare them to survey methods.
Relative Advantages of Observation: They permit measurement of actual behavior rather than
reports of intended or preferred behavior. There is no reporting bias, and potential bias caused
by the interviewer and the interviewing process is eliminated or reduced. Certain types of data
can be collected only by observation (babies toy preferences). If the observed phenomenon
occurs frequently or is of short duration, observational methods may be cheaper and faster
than survey methods. Relative Disadvantages of Observation: The reasons for the observed
behavior may not be determined since little is known about the underlying motives, beliefs,
attitudes, and preferences (buying for somebody else). Selective perception (bias in the
researcher's perception) can bias the data. Observational data are often time-consuming and
expensive, and it is difficult to observe certain forms of behavior (personal activities). In some
cases, the use of observational methods may be unethical, as in observing people without their
knowledge or consent. It is best to view observation as a complement to survey methods,
rather than as being in competition with them.
6. The major disadvantage of using observation as a means of obtaining primary data is:
1. Interviewer bias
2. The inability to record underlying values, attitudes and beliefs
3. Reporting bias
4. The cost
7. In-depth interviews:
1. Are influenced by social norms
2. Allow probing of the respondent
3. Are used more frequently than focus groups in marketing research
4. Are cheaper to conduct than focus groups
8. A focus group is an interview conducted by a trained respondent:
1. In an unstructured manner with a large group
2. In an unstructured manner with a small group
3. In a structured manner with a large group
4. In a structured manner with a small group
9. Which of the following is a distinguishing feature of audits
1. Researcher collects data personally
2. Researcher remains at the arms length from the data collection process
3. They are based on financial data
4. All of above

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