Page 93 - DMGT209_QUANTITATIVE_TECHNIQUES_II

Quantitative Techniques-II

Notes  To determine the association of the two variables such as Ad and sales

 To make a prediction. We might be interested in sales forecasting for the next three years,
so that we can plan for training of new sales representatives

 To estimate the proportion of people in a specific population, who behave in a particular
way.

Example:What percentage of population in a particular geographical location would be
shopping in a particular shop?

Management problem Research problem Hypothesis
Upper class buyers use
How should a new product be Where do customers buy a ‘Shopper’s Stop’ and middle class
distributed? similar product right now? buyers buy from local
departmental stores
Senior citizens buy our products.
What will be the target What kind of people buy our Young and married buy our
segment? product now?
competitors products.

Task For each of the situation mentioned below, state whether the research should be
exploratory, descriptive or causal:

1. To find out the relationship between promotion and sales.
2. To find out the consumer reaction regarding use of new detergents which are
economical.

3. To identify the target market demographics, for a shopping mall.
4. Estimate the sales potential for ready-to-eat food in the northeastern parts of India.

Types of Descriptive Studies

There are two types of descriptive research:
(a) Longitudinal study
(b) Cross-sectional study

(a) Longitudinal Study: These are the studies in which an event or occurrence is measured
again and again over a period of time. This is also known as ‘Time Series Study’. Through
longitudinal study, the researcher comes to know how the market changes over time.
Longitudinal studies involve panels. Panel once constituted will have certain elements.
These elements may be individuals, stores, dealers etc. The panel or sample remains
constant throughout the period. There may be some dropouts and additions. The sample
members in the panel are being measured repeatedly. The periodicity of the study may be
monthly or quarterly etc.

Example: Example for longitudinal study, assume a market research is conducted on
ready to eat food at two different points of time T1 and T2 with a gap of 4 months. Each of the
above two times, a sample of 2000 household is chosen and interviewed. The brands used most
in the household is recorded as follows.

88 LOVELY PROFESSIONAL UNIVERSITY