Qualitative and Quantitative Research - Assignment Example

RKЕTING RЕSЕАСH Name Grade Course Tutor’s Name Date Q1. Researches are usually conducted to ensure firms and stakeholders are receiving correct information to resolve problems facing them. Research is critical tools for marketers to enable them make significant marketing decisions about product forecast in the market. Rushing into detailed surveys usually saves businesses from making loses since they are able to close leads to serious mistakes (Cook and Reichardt 1979, 21 ). Marketing managers view consumer research as a necessity during product introduction. Exploratory research is one of the researches conducted by these marketing managers (Zikmund, et al. 2007, 21 ). This research design may not lead to conclusive evidence. It determines the course of action to be taken in marketing. Moreover, the two types of researches commonly used are qualitative and quantitative research (Neuman 2005, 45). Both research designs have similar research process, which entails classifying the research problem, planning the study design, survey sample size, data collection, data analysis, making conclusions and final report writing (Zikmund, et al. 2007, 16 ). This paper explores both forms of research and distinguishes and reviews the tools, advantages and disadvantages of the two researches. Qualitative research is defined as an investigation that draws attempts to understand realistic view of situations through holistic examination of the phenomena its appropriate settings. Qualitative research mainly deals with collecting, analysing and interpreting data through observation and what responses one gets at the field of study. This research is a subjective research that uses in-depth and focus group interviews. The open-ended evaluation and few respondents are used in the study. The researcher explores the responses collected. In the analysis, the researcher defines the perception, feeling opinion and feelings brought out by the respondents (Howe and Eisenhart 1990, 4). Qualitative research is cheaper than quantitative and effective in gathering information on needs and views of respondents. However, the quality of this research largely depends on experience, skills and interviewer awareness. The characteristics Qualitative research entails subjectivity, multiple realities as well as striving for uniqueness. In addition, reasoning is dialectic and inductive. The advantageous of this research type is the generation of detailed and valid data. The data collected gives an in-depth perceptive of the circumstance. In addition, the study is not limited to rigid definable variables. It examines complex research questions, which could prove to be impossible in quantitative research. A qualitative researcher will find it easy to handle this research since it deals with value-laden questions. The research outcome builds new theories as well as exploring new areas of research. The disadvantage of this research is that it is biased. Research bias is built in and is unavoidable. This is vividly seen in the outcome of the research since the study is rich in narrative and individuals’ interpretation forms the basic element of the analysis. The research subjectivity will eventually lead to procedural problems, which will ultimately affect the outcome of the study. In addition, the whole study is labour-intensive and expensive too. Classical researchers usually have a difficult time understanding this type of research. The researchers in a qualitative study cannot rigorously examine the detailed structures underlying complex natural interactions. The research tools used include interviewing, observation and artefact analysis. The main interview types are in-depth, one-on-one interviews and focus group interviews. Artefact analysis analyses written texts, literature, as well as images and photographs. The main tool is the researcher who should conduct research in a more or less subjective and value-laden. The interviewing tools are straightforward questioning and allow clarification requests, use of probing and proper listening techniques to explore the topic in-depth. Examples of forms of qualitative research include ethnographic, naturalistic, subjective, and participant observation. Market research is a good example of qualitative research. The activities undertaken in decision-making and marketing results rely upon the conclusive evidence attained after exploratory research. The purpose of using this form of research is to focus on the scope of the research topic (Howe and Eisenhart 1990, 6). This also incorporates specific research objectives as well as investigating existing studies on the subject. Quantitative research is defined as an investigation where the researcher comprehends the realistic phenomena through isolating and measuring components of that reality without regarding the background setting. Quantitative research refers to counts and measures of data collected from the field of study. It mainly refers to the meaning concepts, symbols, characteristics and description of data collected at the field of study (Mellissa 2007, 27). The options from this type of research are usually predetermined. The numbers of respondents in the study are also quite large. The sample size for quantitative research is at least 95% confidence level. Statisticians calculate the sample size using formulas to determine how large the sample is required with an acceptable degree of accuracy. The study is designed to produce a smaller margin error. The characteristics of this type of study include; generalisation of facts, the design is mechanistic and the report generated is a statistical analysis. Furthermore, the reasoning is logistic and deductive and establishes relationships between variables and causation. It is wrong to assume that quantitative research based on inferential statistics. The subjective participation of the researcher brings forth the resilient approach of empirical sequential. The advantages of quantitative research are that data collected is collated since the study is based on numbers. Another advantage is that the data and figures are always up to date (Zikmund, et al. 2007, 21 ). The credibility of the research or scientific element allows the researcher to make observational inference. The main disadvantage of quantitative research is that it neither defines the study adequately nor accurately measures the variables. The researcher thus fails to understand complex natural interactions. Updating of data and figures in this research is quite cumbersome because of the regular changes in numbers. The complex mathematics and statistics are venerated and simply most people will not understand. The researcher-generated hypothesis can be very subjective, and a narrow focus of the hypothesis testing can be misleading. The research usually happens in a perverted setting. The artificial environment created, allows the researcher to control relevant variables in the study. The study provides thin and unrealistic information. It utilises methods that only captures minute quantity of the concept. The study is considered to have a low validity. The tools used in quantitative research include hypotheses, survey and questionnaires. The hypotheses serve to delimit a research project and give it goals, which can be evaluated. Surveys and questionnaire focuses questions to receive quantifiable data about social trends. The tools collect large amount of data in an objective manner. Examples of quantitative research include measuring quantities, analysing description of sample behaviour, as well as trends in the stock market. This can also be referred to as descriptive research. Marketers also employ descriptive research in some instance. This study describes the features of the study population. It is mainly utilised when marketing managers wish to determine who purchases a product, portray a size of the market, and identifying competitors. There are several differences between qualitative and quantitative analysis. Principally, quantitative analysis seeks explanatory laws while qualitative research aims at bringing out the thorough description of the research findings. Qualitative research measures assume a realistic status of universal laws. Whatever is discovered in the study is universal thus, replicable. The best way to achieve perfect results in these studies is to ensure, experienced application of these research tools and methods, have an external contribution to make the research explicit link research to relevant theory and fit the right questions and data (Neuman 2005, 32). Marketing researcher should also be aware of problems associated with each research design before deciding on the appropriate one. The task of market research is to define, and identify marketing opportunities as well as monitoring market performance (Zikmund, et al. 2007, 16 ). The decision to choose a qualitative design or a quantitative design depends largely on the nature of the project being handled. The context of information needed and resources available will determine the study design. Market researchers often employ quantitative approach given that it allows the understanding of scientific and lay cultures that are enamoured by quantitative research techniques. It is also easy to design a quantitative research effort. Marketing research helps to specify and supply accurate information to reduce uncertainty. However, linking research questions with data collection techniques, and applying the latter does not guarantee the study a warranted conclusion. The studies must be judged against credible background existent knowledge. Q2. Customer loyalty is a key customer relationship management. It is an established relationship between a customer and companies. The practice attracts the right customer and gets them to buy more often than before. In some business, it is regarded as a loyalty business model. This strategic management allows business firms to capitalise on this corporate expectation in order to meet their needs (Alan and Basu 1994, 102). This strategy is also viewed as a social norm, a situational factor with cognitive or affective antecedents of relative attitude. Each customer has diverse buying habits. Hence, there is a fundamental desire for businesspersons to understand their clientele. There are four basic types of customer loyalty. These four categories define consumer habits. These four types of customer loyalty compare the low and high purchase frequencies. No loyalty This is when customers do not develop loyalty to certain products or service. For instance, a customer going for a haircut at the barbershop regardless of the price offered. This customer rarely goes to the same barbershop twice. The customer’s low attachment to the service rendered, and the low percentage of repeat patronage signifies an absence of loyalty. Business operators are advised not to target this class of customers and relay their efforts to customers whose loyalty can be revived (Evanschitzky, and Wunderlich 2006, 336). Inertia loyalty Here, the customers are categorised as having a low level of attachment to the product and service as well as higher repeat purchase procedures. In essence, the customer buys out of habit (Subir and Martell 2007, 35). Nonetheless, situational factors push the customers to purchase the product. It can also be shown by purchases of product and services that one needs at odd occasions, for example, gas station service, shoe repair service and dry cleaning service. Customers at this loyalty level are prone to competitors’ eye and the businesspersons ought to up his or her game. Inertia loyalty can be enhanced and allow the customer to move on a higher loyalty level. This is done through courting of the customer (Alan and Basu 1994, 108). For instance, a dry cleaning business can introduce home delivery service to enable its customer distinguish between quality from the competitors. Latent loyalty This is defined by a high relative attitude towards a product or service and a low repeat purchase power. Customers with latent loyalty will be pushed by situational factors rather that attitudinal ones (Subir and Martell 2007, 37). Through the understanding of situational factors, the business can formulate strategies to combat them. Premium loyalty This is the most advantageous with a high level of attachment to product and service and a relative high repeat purchasing power. The customers have a preference and pride in using the service and product, and they are sharing the knowledge with peers and family. When the customers become vocal on the preferred products, the business will eventually attract new customers and spark growth. For example, a neighbour who uses Loyal Swiss Army knife will tell the neighbours how valuable the knife is and eventually they will develop the urge to purchase one. The best way to measure, loyalty is through business growth (Hayes, 2011, 26). The growth of business will largely depend on behaviour of customers in terms of consumer tactics and purchase power. In the four loyalty types above the purchase power and attachment to product and service has been used to indicate where a customer lies in those four categories (Evanschitzky, and Wunderlich 2006, 340). However, ways through which customers show loyalty largely depends on the general components of customer loyalty. These components are retention, advocacy and purchasing. Retention is when the customer remains in the company and do not defect to competitors. Advocacy is when customers advocate the company product or brand to colleagues and friends. Purchasing is mainly considered the up selling and increase in selling of services and products (Seyhmus 2002, 49). Several loyalty measure techniques are being applied in the market. Firms have come up with loyalty programs that ensure to keep hold of their valued customers from the competitors. The most utilised program is the simple reward point system. Frequent customers are meant to earn points each time they purchase or use the service. The accumulated points are translated into rewards, discounts, freebie or special customer treatment. The customers are required to work towards certain amount of points to be legible to claim their reward (Alan and Basu 1994, 105). A good example of the reward system is KLM Fly-blue system. This system allows frequent flyers to accumulate points, which can allow them to earn free air tickets with the airline. The airline has come up with a swipe card that their customers use each time they board the airline to accumulate points. The airline has solidified its system by collaborating with several other airlines under the Sky Team organisation. This partnership allows the entire airlines under sky team to share customers from different destinations in the world thus increasing the profits. Another loyalty program is using a tier system to reward initial loyalty and encourage more purchases (Harris and Goode 2004, 141). This program allows business firms to offer small rewards for being part of the program and intensifying the value of the rewards as the customer scale up the loyalty ranking. A good example here is the virgin airline-flying club, which inducts the club red tier then goes to the club silver and finally club gold. The gold club sees members getting priority in boarding and accumulating double miles. The difference between the point system and the tier system is that customers extract short-term benefits from this program. Another loyalty program is the charge an upfront fee for VIP benefits. This is when customers are deducted a onetime fee which allows them to bypass common purchase blockers. This program influences loyalty of customers and provides enough returns for them to realise the benefits. Structuring a nonmonetary program around the customers’ value can also be achieved through issuing of coupons, discount codes and vouchers. This program builds sustainability and high quality products that match perfectly with the customers’ perception. In addition, the company can collaborate with another company in order to strengthen customer loyalty. This is extremely effective to customers, as the company will fully understand the needs to be fulfilled. Make a game out of it is another program that is coming up. Business firms are turning loyalty into a game to encourage repeat customers to solidify the brand image. Lastly, hooking customers with benefits after every purchase has proven to be a fundamental loyalty program. Bibliography Baloglu, Seyhmus.. “Dimensions of customer loyalty: Separating friends from well-wishers”. Cornell Hotel and Restaurant Administration Quarterly 43(2002): 47 – 59 Bandyopadhyay, Subir and Michael Martell.. “Does attitudinal loyalty influence behavioural loyalty? A theoretical and empirical study”. Journal of Retailing and Consumer Services 14(2007): 35 - 44. Dick, Alan S. and Kunal Basu.. “Customer loyalty: Toward an integrated conceptual framework”. Journal of the Academy of Marketing Science 22(2)1994: 99-113. Evanschitzky, Heiner and Maren Wunderlich.. “An Examination of Moderator Effects in the Four-Stage Loyalty Model”. Journal of Service Research 8(4)2006: 330-345. Freeman, Mellissa. “Standards of Evidence in Qualitative Research: An Incitement to Discourse” Sage Journal 36(2007): 25-32. Harris, Lloyd C. and Mark M. H. Goode.. “The four levels of loyalty and the pivotal role of trust: A study of online service dynamics”. Journal of Retailing 80(2004): 139 – 158. Hayes, Bob E 2011 “There’s a better way to measure customer loyalty and boost business growth”. lessons in Loyalty 25-31. Accessed 19 April 2013 http://businessoverbroadway.com/wp-content/uploads/2011/05/RAPID-Loyalty-Approach-ASQ-March-2011.pdf Howe, Kenneth and Margaret Eisenhart. “Standards for Qualitative (and Quantitative) Research: A Prolegomenon”. Educational Researcher (1990):1-9. NEUMAN Lawrence Social research methods, quantitative and qualitative approaches (6th ed) London : Pearson/Allyn and Bacon, (2005) Thomas D. Cook and Charles S. Reichardt. Qualitative and Quantitative Methods in Evaluation Research. United States of America: Sage Publications, Inc, 1979. William Zikmund, et al. Marketing Research Asia Pacific Edition (1st ed). Melbourne, Australia: Thomson Learning, 2007. Read More