Quantitative Market - Research Paper Example

Quantitative Market Research Problem Definition Films 4 You is a small regional chain of DVD rental stores. Over the lasttwo years, the company has experienced a considerable decline in its turnover. From the internal discussions which the managing director and the store managers have had, two possible causes have been identified which are: either online DVD rental competitors are attracting Film 4 You customers or what the company offers fall below the expectations of the consumers. From an earlier interview with a small sample of customers, the same reasons were identified as possible causes for the decline in turnover (Kothari, 2008). Design Question, Aim and Objectives Due to the declining returns for Films 4 You the current study aims at finding the exact cause of the problem to provide the management with a platform from which they can address the problem. In the last 24 months, the company has witnessed a drastic decline in its return. This has resulted into a considerable concern among the stakeholders. The research design seeks to address the question of how to identify the actual cause of the decline from the two possible causes already identified. The objectives of the design are: a) To ascertain whether Films 4 you products do not match customer expectations b) to determine whether the decline in Films 4 You`s turnover arises from the fact that the competitors are attracting film 4 You customers. Formulation of Hypothesis Objective 1: H0: Online DVD rental competitors are taking away Films 4 You customers H1: Online DVD rental competitors are not taking away Films 4 You Customers Objective 2: H0:The quality of the products offered by Films 4 You meet the customer expectations H1: The quality of the products offered by Films 4 You does not meet the customer expectations Research Design Justification & Limitation of the Study The study provides various aspects that when followed would lead to unearthing the cause of the decline in returns for Film 4 You and adequate measures can then be undertaken to correct the situation before it gets out of hand. It acknowledges the existence of failure and explains different ways of overcoming it. After carrying out the survey, it will be possible to prove statistically the exact cause of the problem. It will indicate the cause of the declining returns arising from the survey of the sample population. The design is likely to point to the failure in strategic management. a) Methodology Research Methods and Techniques Method is described as a systematic and sequentially organized approach, which is focused on data analysis in order to ensure that necessary information is generated from the data collected. The four main types of methods available to researchers include: Explicatory, Case-study, Survey, and Experimental Methods1. An experimental method is the main empirical method that would be considered in the course of this study. Research techniques are different though. They are “step-by-step procedures which you can follow in order to gather data, and analyze them for the information they contain”1. Such data may be gathered through qualitative or quantitative methods or from primary and secondary data depending on the research approach. This study will use quantitative research technique. Quantitative research methods were initially developed for use in natural sciences although they are now adopted and accepted for social sciences as well. They are research methods associated with number and any measurable thing, presenting the researcher with various numbers, which are presented in graphical forms, tabulations and statistics. Regression analysis will be used to analyze the relationship between the declines in Film 4 You returns against the two other variables that are: the quality of the products of the company measured in terms of meeting the customers` expectations and online rental DVD competitors winning away Film 4 You customers. Regression analysis is a statistical tool that can be employed to investigate the relationship between variables. The objective of the researcher is to ascertain the causal relationship of one variable upon another. To succeed in this objective for the current case, we need to first assemble data on the underlying variables specific to the current market case. Later on the regression analysis is applied to project the quantitative effect of the causal variables upon the dependent variable that they influence. Similarly, the researcher evaluates the statistical significance of the projected relationship that reflects the degree of confidence that the relationship estimated is closer to the true relationship (Aaker, Kumar & Day, 2009). The dependent variable for our case will be the Returns for Films 4 You denoted by letter Yt, while the independent variables will be quality of the product’s produced by Film 4 you (X1) and the competitors attracting the Film4 you customers (X2). The regression equation is represented by the following: Yt=?0+ ?1X1t+ ?2X2t+µt, where ?0 is the intercept while ?1 and ?2 the slopes for X1t and X2t respectively. In using the above regression equation, the following assumptions will be made: The error term has a zero mean E (µi) = 0 The variance of the error term is constant for all the observations E (µi 2)=?2 The independent variables have no correlation= (uiuj) = 0, i?j From our research questions: are online DVD rental competitors are taking away Films 4 You customers? And does the quality of the products offered by Films 4 You meet the customer expectations?” we will conduct both qualitative and quantitative research. For the purpose of the research, we will use a sample of the population who visits all the five stores for a period of two months in order to be comprehensive enough. The general aim of the research is to obtain all the data needed in order to answer our research objectives. The research’s process would begin with qualitative research including focus groups, face-to-face interview and ethnography to uncover any of the target market’s insights and preliminary explanation of marketplace or consumer behavior and decision processes. Once the data from the qualitative research have been gathered, the use of survey as our quantitative research tool would be utilized to further discover any figures and facts that we may not have covered in our previous stage. Selecting the interviewer, task briefing, training and motivation In selecting the interviewers who will be used in the survey, adequate measures will be taken to minimize the potential bias issues. Factors like social strata, age, language, gender and other demographic factors can influence the respondent`s cooperation and response. As a result, they will fully be taken into account. The interviewer selection procedure will objectively and clearly address the job specifications and requirements. We shall conduct an initial pilot interview to address the magnitude and type of bias that are likely to be introduced by the interviewer (Aaker, Kumar & Day, 2009). The kind and level of training required to adequately prepare adequately prepare the fieldworkers will be rigorous because of the kind of study involved. Because the current study requires a significant level of experience and training, care must be taken to select only qualified fieldworkers who possess he required skills to carry out the survey. After the selection process, the selected individuals will undergo a briefing session in which they shall be informed of the specific details and problems that are likely to arise in the conduct of the survey. Similarly, at this stage, field instruments will be designed and administered. As part of the briefing session, we shall carry out a practice interview with each of the selected interviewer. Qualitative Research We will conduct qualitative research under the following categories a) Focus groups Two focus groups (consisting 6-8 people each) of the target market should be as homogeneous as possible but with enough variation to allow for contrasting opinions as it is believed that it would be complicated, ineffective and difficult to manage more than 10 people in a single focus group session. Yet, a focus group with less than 6 people may affect the data validity because the group size is fairly small, as a result, insufficient. In addition, it is recommended that the number of people in a focus group is usually from six to ten as this number is not only small enough for everyone to have the opportunity to express their individual thoughts and opinions and for the moderator to be able to manage, but also large enough to grant a diversity of opinions. The proposed focus groups will take about approximately between 90 minutes to two hours each session depending on the dynamic of the discussion. However, a good moderator guide consisting of precise questions is necessary to help the moderator able to manage the group discussion. Otherwise, the topic would be to either too board to cover nor too narrow to provide sufficient data. b) Face-to-face interviews One-on-one interviews will consist of a sample of 36 people. These respondents of 36 people would be selected using the criteria of selection that will consider mature customers aged between 35 and 55. We believe a sample size of 36 is reasonable and manageable to avoid invalid data. The use of face-to-face interviews could possibly provide the researchers with more extra information through social cues such as voice, intonation, body language among others of the interviewee. Moreover, the questions would be clearer for the interviewee to understand as the research could rephrase the wording or explain any doubts that the interviewee may have. c) Ethnography Observation and in-depth interview of the target market in a natural purchase setting in stores. By analyzing the behaviors of the potential target market and observing the conversation between them and the store assistants, we can gain a better judgment of the consumers’ perception regarding the quality of Film 4 You products. After observing the subject, we could ask to have a short interview with them. The collected data gained from interviews straight after store visitations provide valuable insights of the overall experience at the store. Ultimately, we can gauge the positives and negatives of the experience and use the data and information to carry out our analysis. In all the above qualitative techniques, the researcher`s aim will to be to gain a solid understanding of how the target market perceives the quality of the products offered by Film 4 You. Quantitative Research We will conduct the survey on 350 customers. The aim of this quantitative research is to get the statistical data such as, percentage of how many customers prefer Film 4 You products compared to those of the competitors. We will equally ascertain the frequency at which they purchase or rent from the Film 4 You stores and whether they purchase or rent for their personal use or for their families. Since the more interviewees’ response will provide more insights for the researchers to find the most suitable attempts for the company to be successful in addressing the declining turnover, 350 customers will be a good number that can provide sufficient information from which we can deduce the required data. It is believed that this sample size would be enough to generalize the findings from the survey and compare with the hypotheses we set up prior to the survey. In addition, due to limited time given, the researchers would not allow conducting survey with more than 350 people. With the sample size of 350 customers, we will be eventually able to perform the data analysis in Excel using regression analysis. A research sample size is critical in cases involving statistical analysis because it facilitates the comparison between means of two different populations but with the same sample size. Similarly, a large sample size that is greater than 30 can facilitate the use of Z-test to draw conclusions (ARF, 2003). This research design will make use of 350 respondents as a sample to carry out the regression statistical analysis using excel. Assumptions The researcher assumes that it is assumed that Global 4 You and its competitors are identical in size and structure and that they operate under similar market conditions. Both qualitative and quantitative research will be undertaken with the objective of finding a solution as to the exact cause of decline in the returns for Films4 You. Types of Data Employed It is the classification of information into either qualitative or quantitative data. Qualitative data is data that is immeasurable dealing with descriptions like tastes, textures, appearance, colors, beauty, and smell. While quantitative data is the data that is measurable in terms of numbers including volume, heights, temperature, area, humidity, weight, length and time. They are preferred because they enable the researcher to come up with facts (Churchill & Locibucci, 2009). Primary data is data collected for the first time and entail mainly face-to-face interviews through a combination of semi structured and unstructured forms of questions with the use of an interview guide to ensure that the interviews are not restrictive. The study will use a detailed administered questionnaire in which research instrument is constructed using open and closed ended questions. Questionnaire formulated to check knowledge management components including knowledge responsiveness, dissemination, and acquisition. This provides a high degree of objectivity, probing, and clarification since the data is raw and no previous materials on it (Belk, 2006). While secondary data is, data collected from other source, which is through analysis and review of market surveys, company books and accounts, stock market quotes, journals and magazines The study shall also rely on the past surveys and observation within the scope of the study. It is cheaper method as data is readily available. Method of Data Collection and Justification Interviews are either face to face or through telephone where information comes directly from the respondents. The study will collect data using open interviews with the use of interview guides on relevant issues concerning the research problem. The interviews will focus combining semi structured and unstructured forms of questions. This will be important, as it will help the researcher interact closely with the respondents and get as much information as needed to enhance the research. The down side is that a lot of time will be required in this exercise but the researcher will overcome this through proper planning (Churchill, G & Locibucci, 2009). Focus group comprise of six to twelve respondents. It will assist in defining the problem more precisely, obtaining more relevant information, and testing the accuracy of information provided. The discussion will also be useful in formulating a questionnaire for the consumer (Beri, 2007). Observation is used as a research tool to collect supplementary data. This will be through the technique of participant observation since the researcher will participate with the subjects. This will avoid bias; will give the researcher the opportunity of observing natural behavior and record on notebooks to supplement the findings of the descriptive statistics. The questionnaire in surveys will have open ended, closed-ended questions and ranking scales. It test validity of the research hypotheses and model. It will be inclusive of variables like technology, organization process, knowledge management, organization structure, organization culture, and respondent background information. Proposed Questions for Data Collection The survey questionnaire will include the following details: the age and income of the respondent, whether he/she rents or purchases the DVD products, the customer` perception of quality of the Film 4 You products, whether the customer will be interested in the company`s products in the coming future and what the customer thinks the competitors are doing better than Films 4 You. Other details include the last time the customer shopped with the company, which aspects of the company`s products interests them most, how much they would wish to pay for the company`s products, what do they value (quality, Price or both). Do the customers prefer online shopping to physical store visits? (Churchill & Locibucci, 2009). Data Analysis This involves analyzing information collected in numerical and descriptive perspectives since the questionnaire design is quantitatively and qualitatively. It will also undertake an analysis of the secondary data through a review of published books, journals, and articles who have examined the research problem before. This process will help in thorough enumeration of the research and presentation of the findings. Before analysis, the data collected will be checked for completeness and consistency by editing, coding, classification, and tabulation. Analysis carried out with the help of Excel. The program will assist in data entry and analysis of the results. All statistical measurements including the correlation are automatic calculated. They ease the load of manually calculating these measurements. Factor analysis to will analyze the various variables like mean and standard deviation. Regression analysis was also be used to come up with the model expressing the relationship between the dependent variable and independent variables. Thus, it will help in the hypothesis in the study. Results At this early stage of the research, we would not be able to provide any results. However, the statistical procedures to transform the collected data from the research into valid and reliable material could include, Summarizing the interesting facts and quotes that are valuable for the purpose of the study from the audio record of focus group discussions and face-to-face interviews, summarizing the survey responses and code them in excel to transform into graphs, charts to analyze any possible trends, grouping similar responses into categories that are homogenous within and heterogeneous between, using simple and understandable graphs and charts wherever possible to help readers get a better understanding of the interpreted information. In addition, we will uncover any relationships of the collected data by obtaining descriptive statistics from Excel to come up with a general view of the transformed data. Similarly, frequencies table will be computed to see whether there is any common pattern in the data. We will be running crosstabs between our dependent and independent variables to find out the possible interdependencies between them. Finally, factor analysis will be used at a later stage to group the underlying similarities the group of variables. For instance, we could find out the most important reason why customers choose competitor products or the possible reasons why they perceive Film 4 You products as being of lower quality. References Aaker, D., Kumar, V. & Day, G. (2009). Marketing Research. 10 edn. Hoboken, NJ: John Wiley. ARF. (2003). Guidelines for Marketing Research. The ARF Research Authority. Retrieved on 21 March 2012 from: http://s3.amazonaws.com/thearf-org-aux-assets/downloads/research/GuidelinesForMarketResearch.pdf Belk, R. (2006). Handbook of qualitative research methods in marketing. Massachusetts: Edward Elgar Publishing. Beri. (2007). Marketing Research. New Delhi: Tata McGraw-Hill Education Churchill, G & Locibucci, D. (2009). Marketing Research: Methodological Foundations. 10 edn. Stamford, CT: Cengage Learning. Kothari, C. (2008). Research methodology: methods and techniques. 2 edn. New Delhi: New Age International Read More