Page 67 - DMGT209_QUANTITATIVE_TECHNIQUES_II

Quantitative Techniques-II

Notes
Example: Problem of Leg room is the answer by respondent. This should be placed
either under Discomfort or Design but not both.
(d) Exhaustive Categories: This should be made to include all responses including “Don’t
Know” answers. Sometimes this will influence the ultimate answer to the research problem.

(e) Avoid Extremes: Avoid open ended class interval.
Usage of Statistical Tools

Frequency Distribution: Frequency distribution, simply reports the number of responses that
each question received. Frequency distribution, organizes data into classes or groups. It shows
the number of data that falls into particular class.

Example: Frequency distribution:

Income No. of people
4000-6999 100
7000-9999 122
10000-12999 140
In marketing research central value or tendency plays a very important role. The researcher
may be interested in knowing the average sales/shop, average consumption per month etc. The
population parameters can be calculated with the help of simple average. The average of sample
may be taken as population parameter. E.g. If the average income of the population is to be
computed, the researcher may select a sample, collect data on family income and calculate the
relevant statistics which will be a representative of the population.

The total purchasing power of the community can be estimated on sample average. If the sample
is stratified, the purchasing power of each income class may also be estimated. The median
figure will reveal that half the population has more income than the median income, and half
the population has less income than median income. The mode will reveal the most common
frequency. Based on this, shoppers can play their strategy to sell the product.
The three most common ways to measure centrality or central tendency is mode, median and
mean.

Mode
The mode is the central value or item, that occurs most often, when data is categorized in a
frequency distribution, it is very easy to identify the mode, since the category in which the mode
lies has the greatest number of observations.

Example: Data regarding household income of 300 people as tabulated by researcher.
Income ( ) Number (f) Cumulative Frequency
upto 10000 30 30
10000-14999 125 155
20000-24999 50 205
25000-29999 30 235
30000-34999 33 268
35000-49999 20 288
Contd...
above 35000 12 300

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