2-1

Important Terminologies
a) Constructs:- are broad concepts or topics for a study. Constructs
can be conceptually defined in that they have meaning in
theoretical terms. They can be abstract and do not necessarily
need to be directly observable.
 Phenomenon which are difficult to explain in numeric terms.

Examples of constructs include intelligence or life satisfaction.

 A construct is specifically chosen (or “created”)

to explain a given phenomenon.

 Constructs used for scientific research must have

precise and clear definitions that others can use

to understand exactly what it means and what it
does not mean.
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Important Terminologies
a) Variables : A variable is any kind of attribute or characteristic
that you are trying to measure, manipulate and control
in statistics and research.
 a variable is a measurable representation of an
abstract construct.
 All studies analyze a variable, which can describe a person,
place, thing or idea.
 A variable's value can change between groups or over time.
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Important Terminologies
a) Independent Variables: Are the variables or alternatives that are
manipulated and whose effects are measured and compared. E.g.: Price,
package design, advertising
b) Dependent Variable: That measure the effect of the independent variable
on the test units. E.g.: Sales, profits, market shares.
c) Extraneous Variables:- All the variable other than independent variable
that affect the response of the test units. E.g.: Store size, Store location
d) Control Variables:- Characteristics that are constant and do not change
during a study
e) Composite Variables:- Two or more variables combined to make a more
complex variable
f) Mediating variables :- that are explained by independent variables while
also explaining dependent variables (or intermediate variables),
g) Moderating Variable:- those that influence the relationship between
independent and dependent variables
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 Here are some examples of mediating effects:

• Burgers and work rate
• Buying burgers for a work party can lead to positive team spirit, which can improve work rate. In
this example, burgers are the independent variable, work rate is the dependent variable, and positive
team spirit is the mediator.
• Grades and happiness
• Good grades can lead to happiness, but indirectly through self-esteem. In this example, grades are the
independent variable, happiness is the dependent variable, and self-esteem is the mediator.
• Sleep quality and academic achievement
• Sleep quality can affect academic achievement through alertness. In this example, sleep quality is the
independent variable, academic achievement is the dependent variable, and alertness is the mediator.
• Income and longevity

• People with higher incomes tend to live longer, but this effect is explained by access to better health
care. In this example, income is the independent variable, longevity is the dependent variable, and
access to better health care is the mediator.
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Example
 If we believe that intelligence influences (or explains) students’ academic
achievement, then a measure of intelligence such as an IQ score is an independent
variable, while a measure of academic success such as grade point average is a
dependent variable. If we believe that the effect of intelligence on academic
achievement also depends on the effort invested by the student in the learning
process (i.e., between two equally intelligent students, the student who puts is more
effort achieves higher academic achievement than one who puts in less effort),
then effort becomes a moderating variable. Incidentally, one may also view effort
as an independent variable and intelligence as a moderating variable. If academic
achievement is viewed as an intermediate step to higher earning potential,
then earning potential becomes the dependent variable for the independent
variable academic achievement, and academic achievement becomes the
mediating variable in the relationship between intelligence and earning potential
 Hence, variable are defined as an independent, dependent, moderating, or mediating
variable based on their nature of association with each other
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What is a Research problem?

 The term ‘problem’ means a question or issue to be examined.
 Research Problem refers to some difficulty/need which a
researcher experiences in the context of either theoretical or
practical situation and wants to obtain a solution for the same.
a) How do we know we have a research problem?
• Customer complaints
• Conversation with company employees
• Observation of inappropriate behavior or conditions in the firm
• Deviation from the business plan
• Success of the firm’s competitor’s
• Relevant reading of published material (trends, regulations)
• Company records and reports.
b) Definition of the problem involves two activities:
• Identification / Selection of the Problem
• Formulation of the Problem
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Identification/selection of the research problem.

• This step involves identification of a few problems and selection
of one out of them, after evaluating the alternatives against certain
selection criteria.
c) Sources of problems.
• Reading • Academic Experience • Daily Experience • Exposure to
Field Situations • Consultations • Brainstorming • Research •
Intuition
d) Criteria of Selection
• The selection of one appropriate researchable problem out of the
identified problems requires evaluation of those alternatives
against certain criteria. They are: • Internal / Personal criteria –
Researcher’s Interest, Researcher’s Competence, Researcher’s own
Resource: finance and time.
• External Criteria or Factors – Research-ability of the problem,
Importance and Urgency, Novelty of the Problem, Feasibility,
Facilities, Usefulness and Social Relevance, Research Personnel.
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The Problem Definition Process

Tasks Involved

Discussion Interviews Secondary Qualitative

with with Data Research
Decision Maker(s) Experts Analysis

Environmental Context of the Problem

Step I: Problem Definition

Management Decision Problem

Marketing Research Problem

Step II: Approach to the Problem

Analytical Specification
Objective/ Model: Verbal, Research of
Theoretical Hypotheses
Graphical, Questions Information
Foundations
Mathematical Needed

Step III: Research Design

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Factors to be Considered in the
Environmental Context of the Problem

PAST INFORMATION AND

FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT

MARKETING AND TECHNOLOGICAL

SKILLS
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Management Decision Problem Vs.
Marketing Research Problem

Management Decision Problem Research Problem

Should a new product be To determine consumer

preferences
introduced? and purchase intentions for the
proposed new product.

Should the advertising To determine the effectiveness

campaign be changed? of the current advertising
campaign.

Should the price of the To determine the price elasticity

brand be increased? of demand and the impact on
sales
and profits of various levels
of price changes.
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Components of an Approach

 Objective/Theoretical
Foundations
 Analytical Model
 Research Questions
 Hypotheses
 Specification of the Information
Needed
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Models
An analytical model is a set of
variables and their
interrelationships designed to
represent, in whole or in part, some
real system or process.

In verbal models, the variables

and their relationships are stated in
prose form. Such models may be
mere restatements of the main
tenets of a theory.
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Graphical Models
Graphical models are visual. They are used to
isolate variables and to suggest directions of
relationships but are not designed to provide
numerical results.
Awareness

Understanding: Evaluation

Preference

Patronage
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Mathematical Models
Mathematical models explicitly specify the
relationships among variables, usually in
equation form.
n
y a0   ai xi
i 1

Where
y = degree of preference

= model parameters to be estimated

astatistically
0 ai
,
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Development of Research
Questions and Hypotheses
Fig. 2.4

Components of the
Marketing Research Problem
Objective/
Theoretica
l Research Questions
Framewor
Analytical
k
Model
Hypotheses
Research Questions and 2-20

Hypotheses
 Research questions (RQs) are
refined statements of the specific
components of the problem.
 A hypothesis (H) is an unproven
statement or proposition about a
factor or phenomenon that is of
interest to the researcher. Often,
a hypothesis is a possible answer
to the research question.
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Literature Review
 Literature Review is the documentation of a
comprehensive review of the published and
unpublished work from secondary sources of data in
the areas of specific interest to the researcher.
 The main aim is to find out problems that are
already investigated and those that need further
investigation.
 It is an extensive survey of all available past studies
relevant to the field of investigation.
 It gives us knowledge about what others have found
out in the related field of study and how they have
done so.
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a) Purpose of review
 To gain a background knowledge of the
research topic.
 To identify the concepts relating to it,
potential relationships between them and to
formulate researchable hypothesis.
 To identify appropriate methodology,
research design, methods of measuring
concepts and techniques of analysis.
 To identify data sources used by other
researchers.
 To learn how others structured their reports
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b) Sources of literature review

 Books and Journals
 Electronic Databases
 Bibliographic Databases
 Abstract Databases
 Full-Text Databases
 Govt. and Industry Reports
 Internet
 Research Dissertations / Thesis
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Hypothesis
 a. Hypothesis
 • A hypothesis is an assumption about relations
between variables.
 • Hypothesis can be defined as a logically
conjectured relationship between two or more
 variables expressed in the form of a testable
statement.
 • Relationships are conjectured on the basis of the
network of associations established in
 the theoretical framework formulated for the
research study.
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Variable
 Anything that can vary can be considered as a variable.
 A variable is anything that can take on differing or varying
values.
For example; Age, Production units, Absenteeism, Sex,
Motivation, Income, Height, Weight etc.
 Note: The values can differ at various times for the same
object or person (or) at the same time for different objects or
persons.
 A variable is a characteristic that takes on two or more values
whereas; an attribute is a specific value on a variable
(qualitative).
 For example;
The variable SEX/GENDER has 2 attributes - Male and Female.
The variable AGREEMENT has 5 attributes – Strongly Agree,
Agree, Neutral, Disagree, and Strongly Disagree.
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 Null Hypothesis
When a hypothesis is stated negatively, it is called null
hypothesis. It is a ‘no difference’, ‘no relationship’ hypothesis.
ie., It states that, no difference exists between the parameter
and statistic being compared to or no relationship exists
between the variables being compared. It is usually
represented as HO or H0.
• Example: H0: There is no relationship between a family’s
income and expenditure on recreation.
 Alternate Hypothesis

It is the hypothesis that describes the researcher’s prediction that,

there
exist a relationship between two variables or it is the opposite of
null
hypothesis. It is represented as HA or H1.
• Example: HA: There is a definite relationship between
family’s income and expenditure on recreation.