Marketing research has three roles: descriptive, diagnostic, and predictive. 1. Descriptive: What is the historic sales trend in the industry? What are consumers’ attitudes toward a product? 2. Diagnostic/ Explanatory: What was the impact on sales after a change in the package design? 3. Predictive: “What if questions,” such as how can descriptive and diagnostic research be used to predict the results of a planned marketing decision? Questionnaires contain three basic types of questions: 1. Open-ended questions 2. Closed-ended questions 3. Scaled-response questions. Sampling Once the researchers decide how to collect primary data, the next step is to select the sampling procedures being used. Not all possible users of a new product can be interviewed, therefore a firm must select a sample or a subset of the larger population. The population or universe must first be defined. Then it is determined if the sample must be representative of the population. If the answer is yes, a probability sample is needed. The most desirable feature of a probability sample is that statistical rules can be used to ensure that the sample represents the population. One type of probability sample is the random sample—where every element of the population has an equal chance of being selected as part of the sample. A nonprobability sample is a sample where little or no attempt is made to get a representative cross section of the population. A common form of nonprobability sample is the convenience sample, a selection of convenient respondents such as employees, relatives, or friends. Because of their lower cost, nonprobability samples are the basis of much marketing research. Whenever a sample is used in marketing research, major types of errors may occur: measurement error and sampling error. Frame error arises if the sample drawn from a population differs from the target population. Random error occurs when the selected sample is an imperfect representation of the overall population. A summary of statistical techniques Univariate Statistics A. Statistics about single variable B. Measures of Central Tendency- Mean, Median, Mode C. Measures of Dispersion-variance, standard deviation and interquartile. Multivariate Statistics Involves more than one variable Dependency techniques- Involves dependent and independent variable: Example- Regression, Analysis of Variance (ANOVA), Discriminant Analysis, Conjoint Analysis Interdependency techniques: Involves understanding relationship among groups of variables. Example: Factor Analysis, Cluster Analysis Data A. B. C. D. Nominal: No order. Telephone numbers Ordinal: Ranked ordering- Different Education levels- High School, College, Masters, Doctoral Interval: Equally space intervals, arbitrary zero points- Temperature in Celsius Ratio: True Zero point. To analyze A & B, we use non-parametric techniques. To analyze C&D, we use parametric techniques.