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Marketing Research (MARK2052)

Topic 5: Data Preparation and Initial Exploration

Dr. Songting Dong


Senior Lecturer in Marketing, UNSW Business School
songting.dong@unsw.edu.au

Dr. Songting Dong


UNSW Business School
Qualtrics Survey

Dr. Songting Dong


UNSW Business School
Qualtrics Survey

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UNSW Business School
Stages in the Marketing Research Process

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UNSW Business School
Value of Models

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Verbal Model

Adoption of new products (example)

Sales of a new product often start slowly as innovators


in the population adopt the product. The innovators
influence imitators, leading to accelerated sales growth.
As more people in the population purchase the product,
sales continue to increase but sales growth slows down.

Dr. Songting Dong


UNSW Business School
Box and Arrow Model (example)

Population

Innovators influence
Innovators Imitators
imitators

Timing of purchases Timing of purchases


by innovators by imitators

Pattern of sales growth


of the new product

Dr. Songting Dong


UNSW Business School
Graphical Model (example)

Cumulative Sales
of a Product
Fixed
Population Size

Time

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Mathematical Model (example, no need to memorize)

= +

= Total number of people who have adopted


product by time t

= Population size

, = Constants to be determined. The actual


path of the curve will depend on these
constants

Dr. Songting Dong


UNSW Business School
Market Share Report

Fiona the brand


100% manager gets
promoted
Steve, her
replacement,
gets fired
Share
John, the
caretaker,
takes over

Time

Dr. Songting Dong


UNSW Business School
Trial/Repeat Model

Share = % Aware

% Available | Aware

% Try | Aware, Available

% Repeat | Try, Aware, Available

Usage Rate

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Trial/Repeat Model

Target population

Aware?
50%
Available?
80%
Try?
40%
Repeat?
50%
Market share = ?

Dr. Songting Dong


UNSW Business School
Model Diagnostics

Trial
high low

high

Repeat
J
low

L
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Trial Dynamics

You never get


100% everyone to try

% Population
Trying (Trial)

Time

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Repeat Dynamics

100%
Notelate triers
often do not become
regular users
% Repeaters
among Triers
(Repeat)

Time

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UNSW Business School
= Share Dynamics!

Fiona the brand


100% manager gets
promoted
Steve, her
replacement,
gets fired
Share =
(Trial Repeat) John, the
caretaker,
takes over

Time

Dr. Songting Dong


UNSW Business School
Another Example

Birthday game in the class

Dr. Songting Dong


UNSW Business School
Model Benefits
Small models can offer insight they can change your
goals and priorities, even if they dont influence your
decisions.
Even simple models can align management beliefs with
marketing policy.
You dont have to have hard data to get value from
models--judgments and intuition are enough in many
cases.
But data increase the precision and improve the quality
of decisions.

Dr. Songting Dong


UNSW Business School
Data Preparation

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UNSW Business School
Stages of Data Analysis

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UNSW Business School
Some Editing issues
Preliminary questionnaire screening

Checks of Completed Questionnaires

What to Look For in Questionnaire


Inspection
Incomplete Questionnaires
Non-responses to Specific Questions/Item
Omissions
Response Patterns

Dr. Songting Dong


UNSW Business School
Coding

Aim of coding:
Retain as much information in the data file as on the soft
copies of the questionnaire
Facilitate data analysis

Dr. Songting Dong


UNSW Business School
Coding

Single-response questions

How often do you visit a dentist?


Every 6 months
Every year
Every 2 years
Only once in the last 5 years

CODE: One variable, coded as 1, 2, 3, 4

Dr. Songting Dong


UNSW Business School
Coding

Single-response questions

What is the likelihood you would go to a show at the


Opera House within the next year?
Very unlikely
Unlikely
Neither likely or unlikely
Likely
1, 2, 3, 4, 5
Very likely
0, 1, 2, 3, 4
CODE: One variable -2, -1, 0, 1, 2

Dr. Songting Dong


UNSW Business School
Coding

Multiple-response questions

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UNSW Business School
Coding

Open-ended questions: reduce the large number of


individual responses to a few general categories of
answers that can be assigned numerical codes.

Test tabulation: Tallying of a small sample of the total


number of replies to a particular question in order to
construct coding categories.

Each time a new theme is found, a new code must be


generated with appropriate rules for classifying and
coding.

Dr. Songting Dong


UNSW Business School
Coding
Open-ended questions

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Coding
Open-ended questions: similar to qualitative data analysis

Hair et al. (2014)


Marketing Research

More resources: a qualitative analysis guide


https://www.youtube.com/watch?v=DRL4PF2u9XA

Dr. Songting Dong


UNSW Business School
Data Types
Examples

What is your gender?


Nominal
Male Female

What is your age?


Ordinal
<18yrs 18-30yrs >30yrs

How satisfied are you?


Interval
V unsat Unsat Neutral Sat V sat

What is annual income before tax?


Ratio
$______

Dr. Songting Dong


UNSW Business School
Initial Exploration:
Getting to Know your data
using descriptive statistics

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UNSW Business School
Question

Once you have the data collected, coded and entered in


a data set, what do you do first?

Get to know your data

Dr. Songting Dong


UNSW Business School
Your Checklist

Variables & coding

Missing value & problematic data

Central tendency (mean, median, mode)


Dispersion (max, min, standard deviation)
Distribution (frequency)

Relationship among variables (cross-tab, correlation)


(will be discussed in exploring relationships sessions)

Dr. Songting Dong


UNSW Business School
Example: Customer Satisfaction Data Set

To understand how satisfied their customers were with


the company, and customers perceptions of the
companys performance.

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UNSW Business School
Variables & coding

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Coding list

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UNSW Business School
Missing value & problematic data

A useful tool: sort data

Problematic data
Due diligence: make sure you go through all the records!
Keep in mind during the entire data analysis procedure

Dr. Songting Dong


UNSW Business School
Central tendency (mean, median, mode)

Mean: also known as the average. The mean is found by


adding up all of the given data and dividing by the number of
data entries.
=AVERAGE(B2:B185)

Median: the median is the middle number. First you arrange


the numbers in order from lowest to highest, then you find the
middle number by crossing off the numbers until you reach
the middle.
=MEDIAN(B2:B185)

Mode: this is the number that occurs most often.


=MODE(B2:B185)

Dr. Songting Dong


UNSW Business School
Imp_Courtiousness Median=8
60

Mode=9
40

20

0
1 2 3 4 5 6 7 8 9 10

Mean=7.18, std.=2.10
Dr. Songting Dong
UNSW Business School
Dispersion

Max: =MAX(B2:B185)
Min: =MIN(B2:B185)

Dr. Songting Dong


UNSW Business School
Dispersion

Standard deviation
How much do the responses vary?
Do most respondents answer the same?
Low variation in responses = low variance in opinion
Do survey participants respond all over the scale?

Standard deviation represents the typical difference


of any one value from the mean
=STDEV(B2:B185)

Dr. Songting Dong


UNSW Business School
Standard Deviation

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Normal Distribution
99.7%
Mean=100
95%
Std.=15
68%

Dr. Songting Dong


UNSW Business School
Standardised Normal Distribution

A standardised normal distribution:


is symmetrical about its mean.
has an infinite number of cases, and the area under the
curve has a probability density equal to 1.0.
has a mean of 0 and standard deviation of 1.

Dr. Songting Dong


UNSW Business School
Standardised Normal Distribution

Mean=0
Std.=1

Dr. Songting Dong


UNSW Business School
Standardised Value

A small business has data showing its mean website


visits per month are 9000 and a standard deviation of
500.
The entrepreneur wishes to know whether in the coming
month, website visits will be between 7500 and 9625.

Dr. Songting Dong


UNSW Business School
Standardised Normal Distribution

Standardised normal
table (appendix A.2)

Or Excel function
=NORM.S.DIST(-3,TRUE)
=0.00135
=NORM.S.DIST(1.25,TRUE)
=0.89435

Prob = 0.89435 0.00135


= 0.893 or 89.3%

Dr. Songting Dong


UNSW Business School
Distribution

Frequency
=COUNTIFS(B$2:B$185,$A199)

Bar chart

Data Analysis add-in


Descriptive Statistics
Histogram

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UNSW Business School
More on Chapter 12

Will be discussed in the next session:


Sample vs. population distribution
Hypothesis testing

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UNSW Business School
Lastly

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UNSW Business School
Homework

Readings
Chapter 13

Team project
Keep on updating research plan
Conduct your exploratory study
Once the pooled survey data become available on Moodle
(likely at the end of Week 5), start data preparation and
initial exploration using descriptive statistics

Dr. Songting Dong


UNSW Business School
Next Week

Lecture topic
Sample vs. population distribution
Hypothesis testing
T-test
ANOVA

Tutorial topic
Discuss quiz 1
Exercise data preparation and descriptive statistics

Dr. Songting Dong


UNSW Business School

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