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CASE-1
Interviewing
in M.R
Welcomgroup Hotels
The Welcomgroup owns a
chain of 20 hotels located in different parts of the country. In recent years,
it has been expanding the chain by setting up new hotels.
When there were only a
few hotels, the Managing Director of the Welcomgroup used to personally visit
them with a view to ensuring that they provided high quality of food and
service to their patrons. But now he finds that with so many hotels it is
extremely difficult to personally visit each and every hotel. At the same time,
he needs some mechanism to ensure that hotels of the chain continue to provide
high quality service.
The Managing Director
has discussed this problem with some Senior Officials of the company. As a
result of this discussion, he finds that:
Option 1: A suitable questionnaire
may be designed and the same may be given to guests during their stay in the hotels.
They may be requested to return the filled-in questionnaire at the reception
counter while leaving the hotels.
Option 2: A suitable
questionnaire may be designed and the same may be posted to their homes soon
after they have reached there with the request that these be returned, duly
filled in, by post.
Option 3: A trained
interviewer may be appointed on a temporary basis. He could visit different
hotels without giving any prior intimation of his visits. In each hotel he
visits, he may personally interview selected guests and seek their opinion on
the quality of food arid service in that hotel and their suggestions, if any,
for improvement.
Option 4: The services
of a marketing research firm may be hired. It may be asked to conduct a
suitable study based on, say, telephone interviews of a random sample of guests
from each hotel and to submit its report to the Managing Director.
Questions
Discuss the relative
merits of these options, indicating which one you would adopt if you were the
Managing Director?
CASE-
2
Attitude
Towards Advertising
You have been asked to
ascertain the attitude of people towards advertising, whether favourable or
unfavourable, in the medium-sized city where you live. The study should
indicate whether heterogeneous groups differ significantly or otherwise in
their attitudes towards advertising.
The proposed study has
to be carried out in two parts. Part I will involve the construction of a
suitable scale for measuring attitudes of people. Part II will examine some
hypotheses and conclude whether they are accepted or rejected. The hypotheses
will concern the differences in attitude of the two groups towards advertising.
For this purpose, you may think of groups in terms of male and female, young
and old, educated and uneducated, rich and poor.
Questions
1. What type of study
is this?
2. How would you
develop a suitable scale for the proposed study?
3. Which scale would be
most appropriate and why?
4. What would be the
limitations of such a study?
CASE-
3
Consumer
Medical Attitudes
A study was undertaken
sometime back to assess attitudes of consumers concerning health care. The
study was conducted using a structured questionnaire which was administered to 1000
persons living in Baroda.
Some of the questions
contained in the questionnaire are given below (the original numbers of these
questions were different).
Questions
1. What type of
attitude scale is used in each of these questions?
2. Would you like to
change any of these attitude scales? If so, indicate the change/s that you
would like to make?
Exhibit
Selected questions
which were contained in a questionnaire on C.M.A.
I. Given below are some
characteristics that people look for in a doctor of their choice. You should
rate each characteristic on a scale of 1 to 5 in order of importance. The
characteristic most important to you, should be rated 1, and the least
important should be rated 5.
1. The doctor’s clinic
is close to your residence. 1
2 3 4 5
2. The doctor has long
experience. 1
2 3 4 5
3. The doctor’s fee is
moderate. 1
2 3 4 5
4. The doctor is known
for his diagnosis. 1
2 3 4 5
5. The doctor is
recommended by your friends. 1
2 3 4 5
6. The doctor is
cordial and sympathetic to every patient. 1
2 3 4 5
7. The doctor is
available for consultation without much waiting. 1 2 3 4 5
II Would you say that
the quality of health care given by your doctor is:
1. Excellent
2. Good
3. Satisfactory
4. Poor
5. Very poor
III What do you feel
about the charges you pay to your doctor? Are they:
1. Excessive
2. Somewhat high
3. Reasonable
4. Low
IV Some statements are
given below. Please indicate whether you agree with these statements. If you
strongly agree with a statement, rate it 1; if you agree, rate it 2; if you are
neutral, rate it 3; if you somewhat disagree rate it 4; and if you strongly
disagree, rate it 5.
1. 1 have full confidence
in my doctor. 1 2 3
4 5
2. My doctor explains
my medical problems to me. 1 2 3
4 5
3. Generally doctors
are overpaid. 1 2 3
4 5
4. I generally have a
thorough physical check-up once a year. 1
2 3 4 5
5. I often watch TV programmes
which discuss health problems. 1 2 3 4
5
6. Most doctors are
responsible persons. 1 2 3
4 5
7. Doctors should not
go on strike for any reason. 1 2 3
4 5
8. If a patient cannot
recover from illness, he should be allowed to die. 1 2 3 4 5
9. I am very particular
about my food. 1 2 3
4 5
10. In case I have a
terminal illness, I would not like my doctor to tell me. 1 2 3 4 5
Case-4
(A
Case on Advertising Research)
Future
Demand for Formulations
Formulation
manufacturing is an important segment of the pharmaceutical industry. In fact,
bulk drugs are pure chemical compounds. Normally, they are not used in their
crude form. What a patient requires is sometimes a mixture of various bulk
drugs, or a mixture of a bulk drug with certain additives which work as
excipients, diluents, stabilizers or preservatives, or for the purposes of
adding taste and flavour. Any mixtures or additives used in bulk drugs to increase
their utility are known as formulation.
As far as the consumer
is concerned, formulation is the final product. With the increasing emphasis on
health standards, the importance of formulation is increasing.
Formulations are
available in various forms, which can be classified in three groups:
1. Powders
2. Tablets and pills
3. Liquids
Most of the drugs are
available in all the three forms. However, some are used only in liquid or
tablet form like insulin. Some formulations which are used only for external
applications are available in liquid form like benzene and spirit. The
selection of form depends upon the severity of the disease it intends to cure,
the age of the patient, taste and odour and many such factors.
Future
Demand
Formulations are
directly used by patients. Demand for formulations depends upon various factors
like the standard of health, occurrence of disease, population, income,
awareness of people about their health and government health programme. These
data are not easily available. However, two variables have been chosen for
estimating future demand.
The level of public
health, government health programmes and medical facilities are, by and large,
reflected in the data on expenditure on health programmes by government whereas
factors like population and income may be reflected in data on current
consumption. So data on public expenditure on health and per capita consumption
of formulations are used to estimate demand.
It is very difficult to
separate demand for each form of formulations like tablets, capsules and pills
because data on production, export and import in terms of such forms are not
available—nor is their market mutually exclusive. In fact, to a large extent,
it is mutually inclusive. So the demand for all formulations is estimated
together on the basis of the data given in Table A.
Consumption of
formulation is considered to be a dependent variable “Y” which is dependent on
two independent variables, ‘X1’, the government expenditure on health and ‘X2’,
the index number of per capita consumption of formulation. The multiple
regression line is estimated as under:
TABLE
A
Index Number of Per
Capita Consumption of Formulation, Consumption of Formulation and Health
Facility Provided by Government
|
Year
|
Index No. of
Per
Capita
Consumption
of
Formulation(X2)
|
Index No. of
Consumption
of Formulation
(Y)
|
Index No. of
Health Facility
Provided
by
Govt(X1)
|
|
1970–71
|
100.0
|
100.0
|
100.0
|
|
1971–72
|
111.8
|
114.3
|
105.0
|
|
1972–73
|
120.9
|
126.4
|
109.8
|
|
1973–74
|
146.8
|
157.0
|
126.0
|
|
1974–75
|
149.1
|
163.2
|
133.6
|
|
1975–76
|
146.5
|
166.2
|
136.4
|
|
1976–77
|
157.2
|
180.0
|
141.6
|
|
1977–78
|
187.3
|
219.3
|
152.3
|
|
1978–79
|
196.7
|
235.4
|
160.0
|
|
1979–80
|
229.1
|
280.4
|
166.8
|
|
1980–81
|
265.6
|
332.4
|
172.5
|
|
1981–82
|
301.37
|
385.7
|
180.0
|
|
1982–83
|
335.87
|
439.5
|
188.9
|
|
1983–84
|
341.22
|
456.5
|
193.5
|
|
1984–85*
|
371.86
|
669.5
|
203.5
|
|
1985–86*
|
417.57
|
741.2
|
214.2
|
|
1986–87*
|
449.00
|
813.0
|
225.3
|
|
1987–88*
|
489.31
|
905.9
|
237.0
|
|
1988–89*
|
519.08
|
999.8
|
249.4
|
|
1989–90*
|
581.37
|
1114.77
|
262.4
|
|
1990–91*
|
633.58
|
1256.58
|
275.52
|
|
1991–92*
|
690.68
|
1375.74
|
289.29
|
Note:*
1. Estimated
2.
Index Number of health facility provided by Government will increase by 5% upto
1991—92. 3. Index Number of per capita consumption of formulation is estimated
to increase at 9% p.a. for 1984—85 to 1991—92.
Y
= a + B1X1 + B2X2
where, Y = Index number
of consumption of formulation
X1 = Index number of
health facility provided by Government
X2 = Index number of
per capita consumption of formulation
Solving the above
equation, the following values are found, namely,
a
= -139.02, B1 = 0.62 and B2 = 1.80
Thus, the demand
equation would be
Y
= -139.02 + 0.62X1 + 1.80X2
The future value of X1
and X2 is projected with the help of their past trend rate of growth which is
found to be 5 per cent and 9 per cent respectively during 1970—71 to 1983—84.
Accordingly, the
estimated subsequent value of X1 and X2 is substituted in the above equation
and the future demand for formulation is obtained. This is given in Table B.
TABLE
B
Future Demand for Formulation
|
Year
|
Indigenous
Demand
|
Export
Demand
|
Total
Demand
|
|
1989–90
|
4055
|
203
|
4258
|
|
1990–91
|
4440
|
222
|
4662
|
|
1991–92
|
4858
|
243
|
5101
|
Besides this indigenous
demand, export demand exists. At present, 3.5 per cent of production is being
exported. If adequate efforts are made, this may easily increase to 5 per cent
in the coming years. On this assumption, the projections of export demand have
been made.
Questions
1) Critically examine
the method used in this case for making projections of demand for formulations.
What additional data would you need for making demand projections more
realistic?
CASE-
5
Ethical
Issues in Marketing Research
Below are given some of
the situations/cases wherein ethical issues are involved. Identify the ethical
issue in each situation/case and indicate what you would do.
1. A marketing research
firm assured its sample respondents that it would conduct an anonymous survey.
As such their identity would remain undisclosed. However, it used an
ultraviolet ink on each questionnaire as a result of which every respondent
could be identified though the identity mark was invisible. Later on when it
came to the notice of someone, the firm justified the use of an ultraviolet ink
on the ground that it wanted to identify defaulting respondents so that it
could send them reminders. Some people sharply reacted to this and said that
such a practice was a clear deception as the firm acted against its explicit
assurance to respondents.
2. A marketing research
firm has recently taken up a study of some department stores. It has asked one
of its members to visit these stores and pose as a customer and observe the buying
behaviour of customers. No one knows that he or she is being observed by some
one.
3. A large
manufacturing company dealing in some cosmetic products has its own marketing
research cell. However, it generally uses marketing research as a sales ploy. Its
investigators try to push up the sale of its products to households when they
visit them while conducting a field survey’.
4. A marketing research
firm does not bother about ethical problems. It uses such data and research
techniques as would produce the findings acceptable to its clients or to
justify a particular decision.
5. A study is
undertaken by a team of marketing researchers. A survey is planned but it has
been decided that the purpose of research, as also its sponsorship, should not
be disclosed to the respondents. This is because the team of marketing
researchers feels that such a disclosure would influence the respondents to
such an extent that the proposed research would be of no use.
6. An interviewer has
been assigned the job of contacting some specific households chosen in the
sample. He visits some households and in respect of others, fills in fictitious
data, which are passed off as genuine. Nobody except the interviewer knows that
some data are fictitious.
7. A marketing research
firm accepts an assignment from on of its clients even though it knows that it
would not be possible to submit the report within the stipulated time.
8. A business firm is
interested in sponsoring a study with a research firm. It invites research
proposals from four different consultants. It then incorporates the ideas
included in different proposals in one single proposal submitted by the lowest
bidder and assigns him this research study.
9. A project director
seeks the permission of the Marketing Research Director to use ultraviolet ink
in pre-coding questionnaires in a mail survey. He points out that although the
letter refers to an anonymous survey where the identity of the respondent would
be undisclosed, he needs the identification of the respondent so that cross
tabulation of data can be undertaken. The Marketing Research Director gives him
the permission to use ultraviolet ink.
10. An interviewer
adopts an unusual practice with a view to getting the cooperation of the
respondent. He assures the respondent that as soon as the survey report is
ready, he will send him a copy of the same. While making such a promise to the
respondent, the interviewer has no intention whatsoever to follow it up.
11. A research firm
sometimes uses such devices as giving huge statistical data in appendices and
drafting a report full of technical jargon to give an impression that it is a
perfect study or that the team engaged in the research is very competent.
CASE-
6
(
A case in scientific Method and Research design in H.R)
Management
and Marketing Research
Given below is a part
of the dialogue between the General Manager and the Marketing Research Manager
of a large industrial enterprise.
G.M. I think we have
been unnecessarily attaching too much importance to marketing research. I don’t
think marketing research can solve all our problems. There is after all a limit
to its usefulness and this fact is often not recognised.
M.R.M. Nobody says that
marketing research can solve all our problems. However, it can reduce
uncertainty and enable us to get useful information on the basis of which better
decisions can be made. It is this role of marketing research which people overlook.
G.M. While I concede
your point that marketing research can help reduce uncertainty, I still feel
that its importance these days is blown out of proportion. Apart from this, I
do not like the use of extremely advanced statistical techniques even when
there seems to be no justification for their use.
M.R.M. Well, I don’t
think that such techniques are always used. In fact, many researchers may not
be proficient in such techniques though they can certainly hire experts to do
this job. At the same time, I must say that there is a general trend in favour
of sophisticated techniques perhaps on account of increasing realisation that marketing
problems are rather multi-dimensional and simple statistical tools are hardly
useful in such cases.
G.M. I personally feel
that there is not enough interaction between the doers of research and users of
research. It is because of this ‘distance’ that each side sees the other with a
certain degree of suspicion. Don’t you think that several of our problems can
be solved more effectively if both the research people and management have a better
understanding of each other’s role? But how can it be achieved?
M.R.M. Yes. I agree
with you. This is what is required. This is possible if communications between
management and research personnel are more frequent. Further, both the parties
should shirk off their prejudices and have an open mind. If any good comes out
of research, management should accept it without any reservation. Likewise, if management
makes some suggestions because of its practical insight into business problems,
researchers should not ignore them but examine them with an open mind and, if
useful, incorporate them in their research. However, I would emphasise one point
here. Researchers should not blindly follow the suggestions given by
management. If they do so merely to please their authorities, there will hardly
be any research worth its name.
Questions
1. Discuss the idea
containing the foregoing dialogue?
2. Identify more other
areas/situations which may give rise to conflict between Management and
Marketing research?
3. What suggestions
would you offer to minimize such conflicts?
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