LINGNAN UNIVERSITY



LINGNAN UNIVERSITY

MARKETING RESEARCH

TIME ALLOWED: TWO HOURS

INSTRUCTIONS: - This paper contains Section A (short-answer questions) and Section B (comprehensive question) and a total of FIVE questions to be answered.

- This paper carries 100 marks. Section A carries 70 marks while Section B carries 30 marks.

- Answer ONE COMPULSORY and THREE SELECTED questions in Section A and answer ONE COMPULSORY question in Section B.

- Marks allocated to parts of questions are indicated in brackets.

- Give labelled diagrams where these will make the answer clearer.

- You are reminded of the necessity for clear and orderly presentation in your answers.

- Short and clear answers are expected.

SECTION A – SHORT ANSWER QUESTIONS

Answer ONE COMPULSORY and THREE SELECTED questions in this Section

COMPULSARY QUESTION (25marks)

Question 1: Research Design

The key differences between exploratory, descriptive, and causal research designs rest in the nature of research problem/objectives at hand. Regarding the research purpose on customer satisfaction with internet banking services, discuss how each of the research designs can be most appropriately used for the purpose of this research.

ANSWER THREE QUESTIONS ONLY (15 + 15 + 15 = 45 marks)

Question 2: Determine the Research Problem

Believing that every employee contributes to marketing in an organization, the President of i-Cable Company, when confronted by rising consumer complaints, is convinced by a research supplier to study job satisfaction in the corporation. Apply the Iceberg principle to discuss some of the important reasons that this research project may fail to make an adequate contribution to the solution of management problems.

Question 3: Measurement Issues and Scales

Describe the four basic types (or levels) of scale measurement and give an example of each type. Identity a marketing construct and draft a semantic differential scale to measure it. Highlight the major considerations in developing the semantic differential scale.  

Question 4: Sampling Design and Sample Size

Discuss the factors to consider when determining sample size in sampling design (nonprobability sampling versus probability sampling). Let's say that you are interested in finding out the proportion of people in a population who smoke. You want to start by finding out the sample size that you need to do this study. You look at the sample size formula and it requires you to know the proportion of population that smokes. But, if you knew that proportion in the first place, why would conduct the study? How do you respond to this dilemma and resolve the problem? 

Question 5: Sampling Methods

HSBC wants to take a survey of their customers to see if they are satisfied with internet banking services provided by the company. Previous studies have shown that the usage experience with internet banking services differs greatly by gender and age. The company considers conducting a mail survey with a sample of 1000 target customers. Supplying any assumptions and indicate a step-by-step procedure to draw a proportionately stratified random sample. Justify the use of a stratified sampling design in this case.

SECTION B – COMPULSORY QUESTION (30 marks)

New Menu for the LU Canteen

It has been announced that the LU Catering Committee has awarded the next two years’ contract for the catering services of the canteen to a new company with a new management team. In an effort to improve the quality of catering services, the new management team has proposed to overhaul the meanus of the university canteen for breakfast, lunch, and dinner. The proposed changes will include a greater variety of menu items from different culinary schools, such as Japanese, European, and international fusion in addition to the traditional Chinese items. Freshly made sandwiches and pizza are also on the proposed list. Before the Catering Committee wants to approve the new menus, it would like to survey the university community for their comments and input. Thus, the Catering Committee has commission the Marketing Students Society to conduct a study of the LU community, including their preferences for food items, styles, services, and perhaps pricing.

Thus, research director of the Marketing Students Society has assembled a group of students who have taken the Marketing Research course to design a study and a questionnaire. After two weeks of brainstorming and diligent work, they submit a research proposal outline as the follows:

1) an intercept survey of students and staff at the main door of the canteen over a three day period;

2) ask each 10th passer-by to complete a questionnaire with 50 questions, which may take up to 25 minutes

3) The questionnaire will included a sample of the following questions:

Please indicate your class standing:

1) ___ first year, ___ second year, ___ third year, ___ post-graduate

Please choose the level of income or spending power on a monthly basis:

1) ___ $0--$20,00 2) ___ $2,000--$4,000, 3) ___ $4,000--$8,0000, 4) above $8,000

Please indicate what kind of food you prefer:

1) ___ Chinese, 2) ___ Cantonse, 3) ___ Japanese, 4) ___ Western

Please indicate how often you come to the canteen for meals:

Infrequently Very Frequently

1 2 3 4 5 6

Please indicate what are your criteria for choosing the type of food:

| |Not important | |Very important |

|a. Pricing |1 |2 |3 |4 |5 |

|b. Taste |1 |2 |3 |4 |5 |

|c. Hygiene and safety |1 |2 |3 |4 |5 |

|d. Looks or presentation |1 |2 |3 |4 |5 |

|e. Quality of customer service |1 |2 |3 |4 |5 |

|f. Convenience or speed of service |1 |2 |3 |4 |5 |

Lastly, do you currently come to the canteen for meals:

Yes ______ No _______

Questions:

7) Please critically evaluate the appropriateness of the research design in terms of sampling and the representativeness of the LU community. You must comment critically on just THREE (3) problems (no more and no less) with the research design, and for each problem that you identify, you must recommend a revised and corrected design (15 marks).

8)

9) Please critically evaluate the questions of the sample questionnaires against the commonly accepted good criteria of questionnaire development discussed in the course. You must comment critically on just FIVE (5) problems (no more and no less) with these questions, and for each problem that you identify, you must provide a revised and corrected question (15 marks).

a) Precode the questionnaire you have just revised. (5 marks)

b) Based on the revised questionnaire, develop a suitable research question, and then formulate null and alternative hypotheses (5 marks)

c) Identify an appropriate data analysis technique to test the hypotheses (5 marks).

QUESTIONNAIRE

HUSEHOLD TELEPHONE CALLING CARD SURVEY

1. Your level of education ___________

2. Age ____

3. Marital status _________

4. Income __________

5. Which, if any, of the following telephone calling cards do you have?

a. AT&T _____ b. MCI ______

c. Sprint _____ d. Others ______

6. How frequently do you use a telephone calling card?

Infrequently Very Frequently

1 2 3 4 5 6 7 8 9 10

7. What do you think of the telephone calling card offered by AT&T?

_______________________________________________________

8. Is AT&T your favorite calling card? __________________________

9. Suppose your household were to select a telephone calling card. Please rate the importance of the following factors in selecting a card.

| |Not important | |Very important |

|a. Cost per call |1 |2 |3 |4 |5 |

|b. Ease of use |1 |2 |3 |4 |5 |

|c. Rebate and discounts on calls |1 |2 |3 |4 |5 |

|d. Quality of telephone service |1 |2 |3 |4 |5 |

|e. Quality of customer service |1 |2 |3 |4 |5 |

|f. Convenience of communication |1 |2 |3 |4 |5 |

10. Is the distribution of calling cards adequate in your region?

Yes ______ No _______

11. Do you intend to use calling card?

Yes ______ No _______ Don’t know _______

12. Which is your favorite brand of calling card?

___________________________

13. Are you loyal to any of the calling card?

Yes ______ No ______

THANK YOU FOR YOUR HELP!

End-of-Questions

Marking Scheme for MKT203 – Marketing Research

Second Term Examination, 2007-08

SECTION A – SHORT ANSWER QUESTIONS

Answer ONE COMPULSORY and THREE SELECTED questions in this Section

COMPULSARY QUESTION (25marks)

Question 1: Research Design

The key differences between exploratory, descriptive, and causal research designs rest in the nature of research problem/objectives at hand. Regarding the research purpose on customer satisfaction with internet banking services, discuss how each of the research designs can be most appropriately used for the purpose of this research.

Answer

This is an application-oriented question concerning their understanding of the research designs. It is expected that students are able to describe each type of the research design and identify the major differences between exploratory, descriptive, and causal research designs. Apart from the descriptions, application is more important.

In this case, exploratory research may be used to learn about the dimensions of customer satisfaction with internet banking services and which factors are considered most important to achieving customer satisfaction.

Descriptive research could be used to determine the expectations of the defined target population of interest, and understand the impact of the factors (such as convenience, security, supporting services, control, website design factures, etc) on customer satisfaction. Students may refer to the conceptual model discussed in class. A survey instrument could be administrated in such a way to explore the relationships between customer satisfaction (and dissatisfaction) and a set of variables mentioned above.

Causal research may be used to test the levels of website design features on customer satisfaction on internet banking. A controlled experimental design can be considered. It would be very interesting if students can come up some basic ideas that reflect their understanding of experimental studies.

ANSWER THREE QUESTIONS ONLY (15 + 15 + 15 = 45 marks)

Question 2: Determine the Research Problem

Believing that every employee contributes to marketing in an organization, the President of i-Cable Company, when confronted by rising consumer complaints, is convinced by a research supplier to study job satisfaction in the corporation. Apply the Iceberg principle to discuss some of the important reasons that this research project may fail to make an adequate contribution to the solution of management problems.

Answer

The iceberg principle holds that decision-makers are aware of only 10 percent of the true problem. This part of the problem is generally just the visible symptom (e.g., rising consumer complaints) of the bigger underlying causes (e.g., lack of customer services, poor management of consumer-company touch points, unethical treatment of consumers, unhappy frontline employees, etc.). In order to be effective, one must try to study these underlying causes in a research study.

In this case, the president faces a management dilemma: the company is plagued by rising consumer complaints. The research question should seek to identify the factors that lead to the problem and identify the strategies that can lead to improved customer satisfaction.

In this case the President is assuming that (1) the cause of rising consumer complaints in the organization is job satisfaction, and (2) there is a relationship between job satisfaction and consumer complaints. However, the cause of rising consumer complaints may not lie in personnel issues, but in other matters such as lack of customer services support, poor management of consumer-company touch points, unethical treatment of consumers, etc. The President’s approach biases the results, and an exploratory exercise to determine possible causes of management dilemma is necessary. This may be followed up by a pilot study to narrow key research questions to factors that have greater importance with respect to the concerns with rising consumer complaints.

Question 3: Measurement Issues and Scales

Describe the four basic types (or levels) of scale measurement and give an example of each type. Identity a marketing construct and draft a semantic differential scale to measure it. Highlight the major considerations in developing the semantic differential scale.  

Answer

All scales can be classified as being nominal, ordinal, interval, or ratio. The examples will vary by student. Examples of nominal scale may include gender (male/female), age (age ranges), levels of education (primary, secondary, college, etc). Examples of ordinal scale may include rank-order properties and constant-sum scale. Interval scale includes Likert-type scale, semantic differential scale, and multiple-rating scale. Finally, ratio scale assumes a natural zero-starting point, for example, “what is your age? ____” . These basic types of scales are associated with different levels of statistical power, ranging from low to high.

Consider the use of semantic differential scales, the responses vary by students, but the most common examples include measuring store, company, or brand images, consumer involvement, and attitudes toward stores, etc. An example of the measurement scale is given as follows: Semantic Differential Scales for measuring Attitudes toward Supermarkets.

Inconvenient location ____ ____ ____ ____ ____ Convenient location

Low prices ____ ____ ____ ____ ____ High prices

Pleasant atmosphere ____ ____ ____ ____ ____ Unpleasant atmosphere

Modern ____ ____ ____ ____ ____ Old-fashioned

Fast checkout ____ ____ ____ ____ ____ Slow checkout

Few item selections ____ ____ ____ ____ ____ More item selections

Major considerations in developing this scale include:

(1) The selection of a series of bipolar pairs of words or phrases that could be used to describe the object’s salient properties. The scale is not valid if bipolar ends lack the expression of extreme intensity associated with end poles.

(2) The number of scale points (even versus odd choices/ or forced versus unforced choices). 5 or 7 scale points are commonly used.

(3) Halo effect, which is a general feeling about a store or brand that can bias a respondent’s impressions on its specific properties. Because of such potential halo effect, the bipolar pairs of words may be randomly flipped to avoid having all of the “good” ones on one side of the scale.

Question 4: Sampling Design and Sample Size

Discuss factors to consider when determining sample size in sampling design (nonprobability sampling versus probability sampling). Let's say that you are interested in finding out the proportion of people in a population who smoke. You want to start by finding out the sample size that you need to do this study. You look at the sample size formula and it requires you to know the proportion of population that smokes. But, if you knew that proportion in the first place, why would conduct the study? How do you respond to this dilemma and resolve the problem? 

Answer

Determining Sample Size

Researchers consider several factors when determining the appropriate sample size. The amount of time and money available often affect this decision. But, probability sample sizes are based on three major factors.

1. The variability of the population characteristic under investigation (the greater the variability of the characteristic, the larger the size of the sample necessary).

2. The level of confidence desired in the estimate (the higher the level of confidence desired, the bigger the sample size needed).

3. The degree of precision desired in estimating the population characteristic (the more precise the required sample results, the larger the necessary sample size).

Students may use the sample size formula to discuss the three factors. But, without meaningful illustration of the factors, the formula itself will carry light weight.

Some students may not be able to identity the three major factors. Credit can be considered if their discussions are related to the following part.

Statistical formulas are used to determine the required sample size in probability sampling. Sample sizes for nonprobability sampling designs are determined using subjective methods such as industry standards, past studies, or the intuitive judgments of the researcher. The size of the defined target population does not affect the size of the required sample unless the population is small relative to the sample size. Sample size formulas cannot be used for nonprobability samples.

Considering the dilemma, it is true that the sample size formula requires you to know upfront the value of the parameter that you are trying to study. There are a couple of different ways to resolve this problem. The first approach is to use some estimates from previous studies or from a pilot study. Or else, one can use the most conservative proportion estimate (50%) and determine the maximum sample size that one might need.

Question 5: Sampling Methods

HSBC wants to take a survey of their customers to see if they are satisfied with internet banking services provided by the company. Previous studies have shown that the usage experience with internet banking services differs greatly by gender and age. The company considers conducting a mail survey with a sample of 1000 target customers. Supplying any assumptions and indicate a step-by-step procedure to draw a proportionately stratified random sample. Justify the use of a stratified sampling design in this case.

Answer

|Gender |% of Customers |Age Group |% of Customers |Proportionate |

| | | | |Sample size |

|Female |54 |18 – 25 |10 |54 = 10% |

| | | | | |

| |N=540 | | | |

| | |26 - 34 |20 |108 = 20% |

| | |35 - 49 |40 |216 = 40% |

| | |50 – 59 |30 |162 = 30% |

|Male |46 |18 – 25 |15 |69 = 15% |

| | | | | |

| |N=460 | | | |

| | |26 – 34 |30 |138 = 30% |

| | |35 – 49 |35 |161 = 35% |

| | |50 – 59 |20 |92 = 20% |

Step-by-Step Procedure

Defined target population: bank customers with usage experience of internet banking services. Sampling frame is customer name list. Sampling elements are individual customers.

1st Strata

Divide the target population into subgroups (or strata) by gender.

2nd Strata

Divide each strata into subgroups by age groups

Draw a random sample from each subgroup within 2nd Strata

➢ Systematic random sampling with the sampling frame of customer name list. Screening question with the usage experience in internet banking services should be used to select the eligible respondents.

➢ Combine the samples from each stratum into a single sample of the target population.

Justification: The greatest advantage of stratified random sampling is that the sample generated contains specific subgroups in proportions desired by the researcher. It can assure the representativeness in the sample; the opportunity to study each stratum and make comparisons between strata, and the ability to make estimates for the target population with expectation of greater precision and less error.

SECTION B – COMPULSORY QUESTION (30 marks)

Question 6: Questionnaire Evaluation and Preparation for Data Analysis

A new graduate hired by the marketing research department of a major telephone company is asked to prepare a questionnaire to determine household preferences for telephone calling cards. The questionnaire is to be administered using online surveys.

a) Critically evaluate and revise this questionnaire (15 marks).

b) Precode the questionnaire you have just revised. (5 marks)

c) Based on the revised questionnaire, develop a suitable research question, and then formulate null and alternative hypotheses (5 marks)

d) Identify an appropriate data analysis technique to test the hypotheses (5 marks).

Answer:

(a) The evaluation will be based on the following principles (15 marks):

➢ Determine the content of individual questions

➢ Overcome the respondents’ inability and unwillingness to answer

➢ Decide on the question content

➢ Determine the question wording

➢ Arrange the questions in proper order

➢ Identify the form and layout

It is expected that students are able to revise the questionnaire using the principles above. The quality of their responses will be based on the awareness and correction of the problems in the questionnaire. For example, double-barreled questions, structured vs. unstructured questions, scales used, ambiguous questions, proper sequence of questions, etc. The detail of the guideline can be seen in the text and the handout given to the students in class.

The actual form and layout of the revised questionnaire can vary. But, it should follow the principles of questionnaire design. It is expected that students are able to develop a professionally-look questionnaire based on their corrections made.

b) Precode the questionnaire you have just revised (5 marks).

Answer: An example of the questionnaire coding is provided in the questionnaire below. Students are expected to code on their revised questionnaire. The open-ended questions are not coded because they should be revised as closed-ended questions. If not revised as closed-ended questions, students are expected to give examples to code this question as dummy variables (1, 0).

QUESTIONNAIRE

HUSEHOLD TELEPHONE CALLING CARD SURVEY

14. Your level of education ___________ (1)

15. Age ____ (2)

16. Marital status _________ (3)

17. Income __________ (4)

18. Which, if any, of the following telephone calling cards do you have?

a. AT&T _____ (0/1) b. MCI ______ (0/1)

c. Sprint _____ (0/1) d. Others ______ (999)

19. How frequently do you use a telephone calling card?

Infrequently Very Frequently

1 2 3 4 5 6 7 8 9 10

20. What do you think of the telephone calling card offered by AT&T?

_______________________________________________________

21. Is AT&T your favorite calling card? __________________________

22. Suppose your household were to select a telephone calling card. Please rate the importance of the following factors in selecting a card.

| |Not important | |Very important |

|a. Cost per call |1 |2 |3 |4 |5 |

|b. Ease of use |1 |2 |3 |4 |5 |

|c. Rebate and discounts on calls |1 |2 |3 |4 |5 |

|d. Quality of telephone service |1 |2 |3 |4 |5 |

|e. Quality of customer service |1 |2 |3 |4 |5 |

|f. Convenience of communication |1 |2 |3 |4 |5 |

23. Is the distribution of calling cards adequate in your region?

Yes __(1)____ No ___(2)____

24. Do you intend to use calling card?

Yes __(1)____ No ___(2)____ Don’t know ___(3)____

25. Which is your favorite brand of calling card?

___________________________

26. Are you loyal to any of the calling card?

Yes __(1)____ No __(2)____

c) Based on the revised questionnaire, develop a suitable research question, and then formulate null and alternative hypotheses (5 marks)

Answer: Responses are likely to vary by students. But, the answers should show their understanding of null and alternative hypotheses. An example could compare loyal versus nonloyal calling card users (Q26) in terms of their perceived importance of selection factors (Q22). In this case, the null hypothesis: “When selecting a card, there is no significant difference between loyal and nonloyal users in terms of the perceived importance of customer services”.

d) Identify an appropriate data analysis technique to test the hypotheses (5 marks).

Answer: This question is to assess students’ understanding of appropriate data analysis techniques used. In this case, students are expected to identify the use of cross-tabulation analysis, ANOVA, or multiple regression analysis. A brief description of how to use the technique to test the hypotheses will be highly valued.

End-of-Questions

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