Preparing Data for Quantitative Analysis
Chapter 10 Preparing Data for Quantitative Analysis 267
MARKETING RESEARCH IN ACTION Deli Depot
In this chapter, we have shown you simple approaches to examine data. In later chap- ters, we show you more advanced statistical techniques to analyze data. The most impor- tant consideration in deciding how to analyze data is to enable businesses to use data to make better decisions. To help students more easily understand the best ways to examine data, we have prepared several databases that can be applied to various research problems. This case is about Deli Depot, a sandwich restaurant. The database is available at connect .mheducation.com.
Deli Depot sells cold and hot sandwiches, soup and chili, yogurt, and pies and cookies. The restaurant is positioned in the fast-food market to compete directly with Subway and similar sandwich restaurants. Its competitive advantages include special sauces on sand- wiches, supplementary menu items like soup and pies, and quick delivery within specified zones. As part of their marketing research class, students conducted a survey for the owner of a local restaurant near their campus.
The students obtained permission to conduct interviews with customers inside the restaurant. Information was collected for 17 questions. Customers were first asked their perceptions of the restaurant on six factors (variables X1–X6) and then asked to rank the same six factors in terms of their importance in selecting a restaurant where they wanted to eat (variables X12–X17). Finally, respondents were asked how satisfied they were with the restaurant, how likely they were to recommend it to a friend, how often they eat there, and how far they drove to eat a meal at Deli Depot. Interviewers recorded the sex of the respondents without asking it. The variables, sample questions, and their coding are shown below.
Performance Perceptions Variables The performance perceptions were measured as follows.
Listed below is a set of characteristics that could be used to describe Deli Depot. Using a scale from 1 to 10, with 10 being “Strongly Agree” and 1 being “Strongly Disagree,” to what extent do you agree or disagree that Deli Depot has:
X1–Friendly Employees X2–Competitive Prices X3–Competent Employees X4–Excellent Food Quality X5–Wide Variety of Food X6–Fast Service
If a respondent chose a 10 on the Friendly Employees category, this would indicate strong agreement that Deli Depot has friendly employees. On the other hand, if a respon- dent chose a 1 for Fast Service, this would indicate strong disagreement and the perception that Deli Depot offers relatively slower service.
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268 Part 4 Data Preparation, Analysis, and Reporting the Results
Classification Variables Data for the classification variables were asked at the end of the survey, but in the database they are recorded as variables X7–X11. Responses were coded as follows:
X7–Gender (1 = Male; 0 = Female) X8–Recommend to Friend (7 = Definitely Recommend; 1 = Definitely Not
Recommend) X9–Satisfaction Level (7 = Highly Satisfied; 1 = Not Very Satisfied) X10–Usage Level (1 = Heavy User—eats at Deli Depot two or more times each week;
0 = Light User—eats at Deli Depot fewer than two times a week) X11–Market Area (1 = Came from within 1 mile; 2 = Came from 1–3 miles; 3 = Came
from more than 3 miles)
Selection Factor Rankings Data for the selection factors were collected as follows:
Listed below is a set of attributes (reasons) many people use when selecting a fast- food restaurant. Regarding your visits to fast-food restaurants in the last 30 days, please rank each attribute from 1 to 6, with 6 being the most important reason for selecting the fast-food restaurant and 1 being the least important reason. There can be no ties, so make sure you rank each attribute with a different number.
X12–Friendly Employees X13–Competitive Prices X14–Competent Employees X15–Excellent Food Quality X16–Wide Variety of Food X17–Fast Service
The questionnaire for the Deli Depot survey is shown in Exhibit 10.9.
Hands-On Exercise 1. Should the Deli Depot questionnaire have screening questions? 2. Run a frequency count on variable X3–Competent Employees. Do the customers per-
ceive employees to be competent? 3. Consider the guidelines on questionnaire design you learned in Chapter 8. How would
you improve the Deli Depot questionnaire?
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Chapter 10 Preparing Data for Quantitative Analysis 269
Exhibit 10.9 Deli Depot Questionnaire
Screening and Rapport Questions
Hello. My name is ____ and I work for Decision Analyst, a market research firm in Dallas, Texas. We are talking to people today/tonight about eating out habits.
1. “How often do you eat out?” __ Often __ Occasionally __ Seldom 2. “Did you just eat at Deli Depot?” __ Yes __ No 3. “Have you completed a restaurant
questionnaire on Deli Depot before?” __ Yes __ No
If respondent answers “Often or Occasionally” to the 1st question, “Yes” to the 2nd question, and “No” to the 3rd question, then say:
We would like you to answer a few questions about your experience today/tonight at Deli Depot, and we hope you will be willing to give us your opinions. The survey will only take a few minutes and it will be very helpful to management in better serving its customers. We will pay you $5.00 for completing the questionnaire.
If the person says yes, give them a clipboard with the questionnaire on it, briefly explain the questionnaire, and show them where to complete the survey.
DINING OUT SURVEY
Please read all questions carefully. If you do not understand a question, ask the interviewer to help you.
Section 1: Perceptions Measures
Listed below is a set of characteristics that could be used to describe Deli Depot. Using a scale from 1 to 10, with 10 being “Strongly Agree” and 1 being “Strongly Disagree,” to what extent do you agree or disagree that Deli Depot has: Circle the correct response.
1. Friendly Employees Strongly Strongly Disagree Agree 1 2 3 4 5 6 7 8 9 10 2. Competitive Prices Strongly Strongly Disagree Agree 1 2 3 4 5 6 7 8 9 10 3. Competent Employees Strongly Strongly Disagree Agree 1 2 3 4 5 6 7 8 9 10 4. Excellent Food Quality Strongly Strongly Disagree Agree 1 2 3 4 5 6 7 8 9 10 5. Wide Variety of Food Strongly Strongly Disagree Agree 1 2 3 4 5 6 7 8 9 10 6. Fast Service Strongly Strongly Disagree Agree 1 2 3 4 5 6 7 8 9 10
Section 2: Classification Variables
Circle the response that describes you.
7. Your Gender 1 Male 0 Female
continued
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270 Part 4 Data Preparation, Analysis, and Reporting the Results
Exhibit 10.9 Deli Depot Questionnaire, continued
Attribute Ranking
12. Friendly Employees
13. Competitive Prices
14. Competent Employees
15. Excellent Food Quality
16. Wide Variety of Food
17. Fast Service
Thank you very much for your help. Please give your questionnaire to the interviewer and you will be given your $5.00.
8. How likely are you to recommend Deli Depot Definitely Definitely to a friend? Not Recommend Recommend 1 2 3 4 5 6 7 9. How satisfied are you with Deli Depot? Not Very Highly Satisfied Satisfied 1 2 3 4 5 6 7 10. How often do you patronize Deli Depot? !!!!1 = eat at Deli Depot 2 or more times each week. 0 = eat at Deli Depot fewer than 2 times each week. 11. How far did you drive to get to Deli Depot? !!!!1 = came from within one mile. 2 = 1−3 miles. 3 = came from more than 3 miles. Section 3: Selection Factors
Listed below is a set of attributes (reasons) many people use when selecting a fast-food restaurant. Regarding your visits to fast-food restaurants in the last 30 days, please rank each attribute from 1 to 6, with 6 being the most important reason for selecting the restaurant and 1 being the least important reason. There can be no ties so make sure you rank each attribute with a different number.
Summary Describe the process for data preparation and analysis. The value of marketing research is its ability to provide accurate decision-making information to the user. To accomplish this, the data must be converted into usable information or knowledge. After collecting data through the appropriate method, the task becomes one of ensur- ing the data provide meaning and value. Data prepara- tion is the first part of the process of transforming data
into useful knowledge. This process involves several steps: (1) data validation; (2) editing and coding; (3) data entry; (4) error detection; and (5) data tabulation. Data analysis follows data preparation and facilitates proper interpretation of the findings. Discuss validation, editing, and coding of survey data. Data validation attempts to determine whether surveys, interviews, or observations were conducted correctly and are free from fraud. In recontacting selected respondents,
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the researcher asks whether the interview (1) was falsi- fied; (2) was conducted with a qualified respondent; (3) took place in the proper procedural setting; (4) was com- pleted correctly and accurately; and (5) was accomplished in a courteous manner. The editing process involves scan- ning of interviews or questionnaire responses to determine whether the proper questions were asked, the answers were recorded according to the instructions given, and the screening questions were executed properly, as well as whether open-ended questions were recorded accurately. Once edited, the questionnaires are coded by assigning numerical values to all responses. Coding is the process of providing numeric labels to the data so they can be entered into a computer for subsequent statistical analysis. Explain data entry procedures and how to detect errors. There are several methods for entering coded data into a computer. First is the PC keyboard. Data also
can be entered through terminals having touch-screen capabilities, or through the use of a handheld elec- tronic pointer or light pen. Finally, data can be entered through a scanner using optical character recognition. Data entry errors can be detected through the use of error edit routines in the data entry software. Another approach is to visually scan the actual data after it has been entered. Describe data tabulation and analysis approaches. Two common forms of data tabulation are used in mar- keting research. A one-way tabulation indicates the num- ber of respondents who gave each possible answer to each question on a questionnaire. Cross-tabulation pro- vides categorization of respondents by treating two or more variables simultaneously. Categorization is based on the number of respondents who have responded to two or more consecutive questions.
Key Terms and Concepts Coding 256 Cross-tabulation 261 Curbstoning 249 Data entry 259
Data validation 249 Editing 251 One-way tabulation 261 Tabulation 261
Review Questions 1. Briefly describe the process of data validation. Spe-
cifically discuss the issues of fraud, screening, proce- dure, completeness, and courtesy.
2. What are the differences between data validation, data editing, and data coding?
3. Explain the differences between developing codes for open-ended questions and for closed-ended questions.
4. Briefly describe the process of data entry. What changes in technology have simplified this procedure?
5. What is the purpose of a simple one-way tabulation? How does this relate to a one-way frequency table?
Discussion Questions 1. Explain the importance of following the sequence for
data preparation and analysis described in Exhibit 10.1. 2. Identify four problems a researcher might find while
screening questionnaires and preparing data for analysis. 3. How can data tabulation help researchers better
understand and report findings?
4. SPSS Exercise. Using SPSS and the Santa Fe Grill employee database, develop frequencies, means, modes, and medians for all the relevant variables on the questionnaire.
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