Qualitative and Questionnaire Design - Research Paper Example

Qualitative Research and Questionnaire Design 1.0 Executive summary In order to remain competitive and attract university students for their services, banks often keep providing new and attractive products and services. Promotion of products is another way of attracting university students to banks. Students usually bank accounts at least when starting university education. Their decision to choose a particular bank in the industry is affected by various factors. Students at least expect to operate with a bank that is efficient and effective. In addition, students would like to operate with a bank that is trustworthy, such that they can entrust the bank with their money and financial secrets. These are some of the factors that affect students’ decision to choose a bank to operate with. Students who start operating with any particular bank sometimes switch services from the bank to another. Any bank should understand the reasons behind students’ choice for a particular bank and loyalty to the bank services. While attracting student to a bank poses a major challenge, retaining them poses another major challenge, sometimes greater that attracting them. It is therefore of paramount importance to understand students decision to choose and remain in a bank. This information is essential in order to pay keen attention to those characteristics that can differentiate the bank from its competitors. This market research aims at establishing the perception of students on bank performance. This performance relates to the quality of the products that banks offer, services that the banks offer and the price of products and services. This pricing component is basically the monthly charges that banks charge for the services. This will involve getting the opinion of the students regarding the attributes outlined above. Table of Contents 1.0 Executive summary 1 2.0 Literature review 2 2.1 Marketing research 2 2.2 Student perceptions and expectations of banks 3 3.0 Problem statement 7 4.0 Research rationale 7 5.0 Research objectives 7 6.0 Qualitative study 8 7.0 Quantitative study 9 7.1 Questionnaires design 9 7.2 Questionnaire 9 7.3 Sample size 11 7.4 Data analysis 11 7.5 Ethical considerations in qualitative and quantitative research study 11 8.0 Works Cited 12 2.0 Literature review 2.1 Marketing research Churchill and Lacobucci (page 5) give a basic outline of marketing research, indicating that marketing research involves and helps businesses to obtain information about the consumer perspective. In general, Churchill and Lacobucci (page 5) point out that marketing research involves the process of linking the marketing department of a business organization to public and specifically the customers and consumers. Bradley and Nigel (page 4-6), further indicate that this process of marketing research helps business management to get information from the customers that is reliable and valid for use in making decisions with the aim of improving products and services. In addition, such information is relevant for the management to identify available opportunities in the market as well as problems. This would help the management to establish proper actions or refine their marketing activities. According to Hauser and William (page 38-54), tools and techniques for conducting marketing research advanced especially during the twentieth century. The advancement of quantitative and qualitative research techniques and tools has facilitated business organizations to understand their customers, market and competition in the market. Web based interview systems as well as telephone interviews have replaced the pen and pencil method of conducting market research. According to Churchill and Lacobucci (page 5), marketing research methods depends on the design or the mode of carrying out the research. Marketing research conducted through questioning fall in to two distinct categories, qualitative market research and quantitative market research. 2.2 Student perceptions and expectations of banks Other than creating products and services, every business has the role of attracting and retaining customers. This, according to Mariamplolski (page 2), has shown a growing trend especially during the twentieth century. The concept of marketing has also shown an advancing and growing trend among businesses. Studies show that businesses have started placing customers in the fore front when designing products and services (Mariamploski, page 2). Businesses design products and services based on the needs of the customers, and sometimes with directions from the customers. This has resulted to firms not moving products by pushing but by pull power from the customers. They achieve this by producing goods and services after a clear understanding of the preferences and opinions of the customers and make attempts and efforts to meet them. Bank customers have diverse needs that bank programmes and services should meet. Successful banks strive to achieve these diverse customer needs by offering diverse products and services as well as prices that suit the preferences of a specific set of customers. This is essentially market segmentation, which is common to banks that target college and university students as their customers (Pass and Michael, page 49-63). Research indicates that banks that are located close to colleges or branches of banks near collages often have various promotions to college students with the main aim of improving their competitive abilities (Smith and Anne, 39-54). Research indicates that a large number of bank customer switch accounts from one bank to another (Pass and Michael, page 49-63). This makes banks to experience hard time making their customers satisfied in order to prevent them from using products and services from competing banks. Retaining customers, especially university students, requires understanding of various key criteria. First, it is worth understanding the perceptions of the customers of the performance of the bank in the market. According to Smith and Anne (39-54), understanding customers’ perception enables banks to make decisions regarding the features of the accounts, banking fees to charge and the programmes to include in supporting customer service. Proper understanding of this criterion helps any bank marketer to establish services that differentiate one bank from the others, making it competitive in the banking industry. The other criterion that any bank marketer should understand is the reason causing a student or any other customer to switch service from one bank to another. This would also involve a third criterion, understanding the factors that customers consider before seeking services from a single in the industry. As already stated, different customers have different needs. However, a group of customers, for example students, may depict common needs and perceptions. Understanding factors that determine the choice of bank is therefore of paramount importance in order to establish products, services and programmes that attract and retain customers. Previous studies suggest various reasons underpinning the choice of bank among students. Bank reliability has a great impact in determining how banks attract and retain student customers (Pass and Michael, page 49-63). Reliability acts as the only tangible element of any service business organization such as a bank. Other services, such as employee generosity, are intangible. Reliability therefore plays a major role in attracting and retaining students in banks. Product quality is another dimension that plays an important role in determining how banks attract and retain students as their customers. According to Pass and Michael (page 49-63), students open accounts while starting their university education. Product quality is therefore concerned with checking of accounts. The price dimension is another important factor that has paramount importance in determining how banks attract and retain students in their business. Almost all banks in the banking industry offer similar products and services and price becomes one of the differentiating components between different banks. Research work show that monthly service charges that banks put in place plays a major role in determining how a bank attracts and retains students in the business (Pass and Michael, page 49-63). This also determines whether a student or any other customer switches services from one bank to another. In fact, research suggests that it is the main factor that makes students to switch services between banks in search of favourable and reasonable charges. Student perception regarding the pricing component of the importance of searching for lower bank fees, being sensitive to prices and extensiveness of the search for information regarding pricing is essential in determining pricing. Smith and Anne (39-54) point out that it is worth for student banks to set low service prices with the aim of attracting students since they often conduct research regarding pricing. The quality of the services that banks give plays an important role in determining customer satisfaction and students generally expect high quality service from banks. Studies indicate that the physical environment of service providers, for example banks, affect the customer satisfaction. For example, self service facilities may help in improving customer satisfaction. The convenience and the quality of services offered to customer are two components of customer satisfaction that research has shown to cause switching of banks by customers. Moreover, these two components of customer satisfaction play a major role in customers, especially students, selecting a new bank (Smith and Anne, 39-54). The convenience component of customer satisfaction could include waiting time involved in carrying out a bank transaction such as deposit or withdrawal as well as ease with which they find the information they want from the bank. Other factors that affect convenience of the customers include the ability to navigate or move within the bank as well as speed and efficiency of the self service facilities such as Automatic Teller Machines. Pass and Michael (page 49-63) point out that customers, and especially students, expect high convenient services from banks. As such, convenience in banks determines students switching of banks and choosing of new banks. The quality of the customer service that a bank offers is another component of customer satisfaction. While students’ expectation is high quality service, previous studies show that this component affects the choice of banks and the switching of banks. The four major attributes of the quality component include responsiveness, assurance, tangibles and empathy (Pass and Michael, page 49-63). Customers expect a trustworthy bank, one they can entrust and be confident with their money and secrets. This is essentially what assurance is about. Customers also expect that the bank they operate with be responsive. By this it means that the bank should quickly respond to the needs of the customers. In addition, customers expect to operate with a bank that is effective in realising their needs and giving them personal attention, this is all about empathy. The three attributes of quality regard what the customers get directly. The fourth attribute, the tangibles, involve what the customers see and perceive of the banks. These attributes include physical services in the bank and to some extent the dressing and behaviour of employees. These are some of the attributes that any bank should pay attention to with the aim of attracting and retaining students in the banks. 3.0 Problem statement Current trends in competition have impacted the way businesses in various sectors conduct their management operations. This has seen banks striving to improve the quality of the products and services as well as adjusting the prices with the aim of attracting customers. Despite these efforts, the behaviour of customers switching banks still remains a concern for banks. This therefore requires an in depth understanding of the factors that could make a student choose a particular bank or switch from one bank to another. 4.0 Research rationale Results from the research will help banks or bank marketers to focus on issues that would help them to attract and retain students. Students are generally a market segment that that has certain needs, expectations and perceptions that any bank striving to attract and retain them should understand. A bank that focuses on such needs and expectations gain success and stand a better competitive position in the banking industry. 5.0 Research objectives The main objective underlying this research work is to establish the reasons behind students choosing a particular bank when opening account. In addition, this research study us aimed at establishing the reason behind students switching banks. Specific objectives accompanying this research activity include: 1. To establish students’ perception of the performance of a bank based on pricing component 2. To establish the students’ perception of the performance of a bank based on the quality component. 3. To determine what students expect from banks in order to get satisfied with the products and services from the banks. 6.0 Qualitative study Qualitative studies, according to Mariampolski (page 8), is dependent upon personal observations and expressions. An in depth interview was therefore conducted to eight university students to determine what their perceptions and expectations of banks were. This qualitative research activity was aimed at achieving the objectives as already described. This survey was carried out in a single hostel in one university and the students were randomly selected based on room numbers in the hostel. In order to pick the rooms where the researchers could get a student to interview, the researchers cut out small papers, wrote the room numbers in the papers and folded them. They mixed the papers in a bag and later picked eight papers from the overall amount. The total number of rooms in the hostel was 354. The interview process involved asking various questions to the students. The researchers asked the students about their expectations from the bank they operate with. The students gave several expectations. Quality services, efficiency, trustworthy and convenience were the most suggested expectations. Participants were also asked whether they ever switched banks and 50 percent admitted to have switched banks. Of those four who had switched banks, three of them switched due to high monthly fees while one switched in search for a bank with a larger coverage. The students were also asked about their decision in selecting the bank the first opened. It was interesting to find that those who had switched banks did not seek information regarding the banks while opening accounts. Of the four who had not switched banks, two admitted that they considered image and services but did not worry about charges or fees. One student considered coverage while the other one considered charges. This sample size was however small to generalize the results but it was evident that monthly charges, coverage and image are important aspects that students consider when opening and switching banks. Students also expect to operate with a bank that is trustworthy and one that offers quality services efficiently and conveniently. 7.0 Quantitative study 7.1 Questionnaires design In the data collection process, questionnaires administering will occur. In this, the respondent will be given the questionnaires to fill. The period for filling the questionnaires has a limitation of six hours. This provides enough time for the respondent to fill the questionnaire and return, and collection of the filled questionnaires. On the same note, the time prevents the emergence of situations in which the respondents may discuss the questionnaire and provide biased views. In order to ensure that the respondents understand the questions, the questionnaire is designed to have simple words that are not ambiguous. In addition, the questionnaires will avoid leading questions since these can result into biased results. Generalizations and estimates can also result into biased results. The questionnaires shall therefore avoid them. A hybrid of ordinal scale and interval scale will be used in designing the questionnaires for addressing the types of questions that require scaling. 7.2 Questionnaire Dear correspondent, HBD Inc, is a national bank with branches spread all over the country. The bank is conducting an assessment to better understand the needs and preferences of students (customers) in order to establish products and services that suit them better. The bank therefore requests your participation in the ongoing research activity. All information collected in this study is confidential. Your answers will be grouped with those of other people like you and the bank shall not make any reference to your name. Therefore, there are no risks associated with this research. Please answer the questions below. Which bank do you operate with? _____________________________________________ Why did you select the bank? ___________________________________________________ Did you perform a search about the bank details and services before opening an account with it? If yes, what were you looking for? _______________________________________________ Is this the bank you opened at the beginning? If no, why did you switch the bank? How many times have you switched banks? _____________________________ What make you switch banks? ________________________________________ Generally, what do you expect from a bank? ___________________________________ How sensitive are you on the amount of bank fees? (Indicate with a number with 1 meaning insensitive and 7 meaning very sensitive) _______ Could bank image affect your decision about the choice of a bank? (Indicate with a number with 1 meaning cannot and 7 meaning very much) ________ What products and services would you want from a bank? ___________, ___________, _________, ___________, ________, ___________, ___________, _____ 7.3 Sample size The research focuses on the perception of students on bank performance. The population of interest for the research is students who are in universities. 300 university students will be selected randomly for research. The questionnaires will then be sent via mail to the students, who will submit them through e-mail back to the researchers. This sample will be large enough to provide valid and reliable results. The issue of validity and reliability will also be addressed by use of split halve. The questionnaires will be sent to half of the sample during one time. The other half will provide their opinion some time later so that the two sets will be analysed differently and compared. 7.4 Data analysis The data analysis process will consist of employing mathematical and statistical tools on the data, to allow inferences with respect to the data gathered. The procedure that will find application begins with summarization of all the responses from the data collection techniques employed, grouping the responses, and coding the same in SPSS programs. The SPSS will aid in transforming the raw data into visual forms of the data, which include graphs and charts. The trends that visual data will depict will have to be analyzed. 7.5 Ethical considerations in qualitative and quantitative research study The studies focus on improving and products and services with the aim of fulfilling the needs of customers. Since the studies involve intrusions on the privacy of students, misuse of the results and views given by students will be avoided. Various public policies regarding marketing research and ethical issues of the country as well as of the universities will be observed. In addition, the interaction process with sample population will pay respect to the population in order to achieve better results. 8.0 Works Cited Bradley & Nigel, Marketing Research: Tools and Techniques. Oxford: Oxford University Press. Page 4-6, 2007. Churchill, G. A, & Lacobucci, D, Marketing Research: Methodological Foundations. Tenth Edition. USA: Cengage Learning. Page 5, 2010. Hauser & William, J, Marketing Analytics: The Evolution of Marketing Research In the Twenty-First Century: An International Journal of Research in Interactive Marketing, Volume 1, Number 1, Page 38-54, 2007. Mariampolski, H, Qualitative Market Research: A Comprehensive Guide. Thousand Oaks, California: SAGE Publications Inc. Page 2, 2001. Pass & Michael, W, Western US College Students: Banking Preferences and Marketplace. International Journal of Financial Services Marketing, Volume 11, Number 1. Pages 49-63, 2006. Smith & Anne, M, Using consumer Benchmarking Criteria to Improve Service Sector Competitiveness. United Kingdom: Emerald Group Publishing, Limited. Page 39-54, 2000. Read More