Marketing Analytics

Dr. Md. Kashedul Wahab Tuhin, PhD

Associate Professor
Department of Marketing
Jahangirnagar University
Savar, Dhaka
 14-2

Chapter Outline
1. Data Preparation
1. Missing value identification
2. Outlier detection
3. Variable re-specification
4. Transpose
 14-3

Restaurant preference

ID PREFEREN QUALITY QUANTITY VALUE SERVICE INCOME OVERALL RINCOME

1 2 2 3 1 3 6 9.00 4.00
2 6 5 6 5 7 2 23.00 1.00
3 4 4 3 4 5 3 16.00 2.00
4 1 2 1 1 2 5 6.00 4.00
5 7 6 6 5 4 1 21.00 1.00
6 5 4 4 5 4 3 17.00 2.00
7 2 2 3 2 3 5 10.00 4.00
8 3 3 4 2 3 4 12.00 3.00
9 7 6 7 6 5 2 24.00 1.00
10 2 3 2 2 2 5 9.00 4.00
11 2 3 2 1 3 6 9.00 4.00
12 6 6 6 6 7 2 25.00 1.00
13 4 4 3 3 4 3 14.00 2.00
14 1 1 3 1 2 4 7.00 3.00
15 7 7 5 5 4 2 21.00 1.00
16 5 5 4 5 5 3 19.00 2.00
17 2 3 1 2 3 4 9.00 3.00
18 4 4 3 3 3 3 13.00 2.00
19 7 5 5 7 5 5 22.00 4.00
20 3 2 2 3 3 3 10.00 2.00
 14-4

A Codebook
Colum No Variable No. Variable name Question no. Coding instruction

1 1 ID 1 to 20 as coded
Input the number circle
1= weak preference
2 2 Preference 1 2= strong preference
Input the number circle
1= poor
3 3 Quality 2 2= excellent
Input the number circle
1= poor
4 4 Quantity 3 2= excellent
Input the number circle
1= poor
5 5 Value 4 2= excellent
Input the number circle
1= poor
6 6 Service 5 2= excellent
Input the number circle
1= less than 20000
 14-5

Coding Questionnaires
 The respondent code and the record number appear
on each record in the data.
 The first record contains the additional codes: project
code, interviewer code, date and time codes, and
validation code.
 It is a good practice to insert blanks between parts.
 14-6

Data Transcription
Fig. 14.4
Raw Data

CATI/ Keypunching via Mark Sense Optical Computerized

CAPI CRT Terminal Forms Scanning Sensory
Analysis
Verification:Correct
Keypunching Errors

Computer Magnetic
Disks
Memory Tapes

Transcribed Data
 Data Cleaning 14-7

Consistency Checks
Data Cleaning- includes consistency checks and treatment of missing response.

Consistency checks identify data that are out of range, logically inconsistent, or
have extreme values.
 Computer packages like SPSS, SAS, EXCEL and MINITAB can be programmed
to identify out-of-range values for each variable and print out the respondent
code, variable code, variable name, record number, column number, and out-
of-range value.
 Extreme values should be closely examined.
 Data Cleaning 14-8

Treatment of Missing Responses

 Missing response- represent values of a variable that are unknown,
either because respondents provided ambiguous answers, or their
answers were not properly recorded.
 Substitute a Neutral Value – A neutral value, typically the mean
response to the variable, is substituted for the missing responses.
 Substitute an Imputed Response – The respondents' pattern of
responses to other questions are used to impute or calculate a
suitable response to the missing questions.
 In casewise deletion, cases, or respondents, with any missing
responses are discarded from the analysis.
 In pairwise deletion, instead of discarding all cases with any
missing values, the researcher uses only the cases or respondents
with complete responses for each calculation.
 Statistically Adjusting the Data 14-9

Weighting

 In weighting, each case or respondent in the database is

assigned a weight to reflect its importance relative to other
cases or respondents.
 Weighting is most widely used to make the sample data
more representative of a target population on specific
characteristics.
 Yet another use of weighting is to adjust the sample so that
greater importance is attached to respondents with certain
characteristics.
 14-10

Statistically Adjusting the Data

Use of Weighting for Representativeness

Years of Sample Population

Education Percentage Percentage Weight

Elementary School
0 to 7 years 2.49 4.23 1.70
8 years 1.26 2.19 1.74

High School
1 to 3 years 6.39 8.65 1.35
4 years 25.39 29.24 1.15

College
1 to 3 years 22.33 29.42 1.32
4 years 15.02 12.01 0.80
5 to 6 years 14.94 7.36 0.49
7 years or more 12.18 6.90 0.57

Totals 100.00 100.00

 Statistically Adjusting the Data 14-11

Variable Respecification
 Variable respecification involves the transformation of data to create
new variables or modify existing variables.
 E.G., the researcher may create new variables that are composites of
several other variables.
 Dummy variables are used for respecifying categorical variables. The
general rule is that to respecify a categorical variable with K categories, K-
1 dummy variables are needed.
 Statistically Adjusting the Data 14-12

Variable Respecification
Table 14.2

Product Usage Original Dummy Variable Code

Category Variable
Code X1 X2 X3

Nonusers 1 1 0 0
Light users 2 0 1 0
Medium users 3 0 0 1
Heavy users 4 0 0 0

Note that X1 = 1 for nonusers and 0 for all others. Likewise, X2 =

1 for light users and 0 for all others, and X3 = 1 for medium users
and 0 for all others. In analyzing the data, X1, X2, and X3 are
used to represent all user/nonuser groups.
Statistically Adjusting the Data 14-13

Scale Transformation and Standardization

Scale transformation involves a manipulation of

scale values to ensure comparability with other scales
or otherwise make the data suitable for analysis.

A more common transformation procedure is

standardization. Standardized scores, Zi, may be
obtained as:

Zi = (Xi - X )/sx
 14-14

Selecting a Data Analysis Strategy

Fig. 14.5

Earlier Steps (1, 2, & 3) of the Marketing Research Process

Known Characteristics of the Data

Properties of Statistical Techniques

Background and Philosophy of the Researcher

Data Analysis Strategy

 14-15

A Classification of Univariate Techniques

Fig. 14.6 Univariate Techniques

Metric Data Non-numeric Data

One Sample Two or More One Sample Two or More

Samples Samples
* t test * Frequency
* Z test * Chi-Square
* K-S
* Runs
* Binomial
Independent Related
* Two- Independent
Group test Related
* Paired
* Z test t test * Chi-Square
* One-Way * Sign
* Mann-Whitney * Wilcoxon
ANOVA * Median * McNemar
* K-S * Chi-Square
* K-W ANOVA
 14-16

A Classification of Multivariate Techniques

Fig. 14.7
Multivariate Techniques

Dependence Interdependence
Technique Technique

One Dependent More Than One Variable Interobject

Variable Dependent Interdependence Similarity
Variable
* Cross- * Multivariate * Factor * Cluster Analysis
Tabulation Analysis of Analysis * Multidimensional
* Analysis of Variance and Scaling
Variance and Covariance
Covariance * Canonical
* Multiple Correlation
Regression * Multiple
* Conjoint Discriminant
Analysis Analysis
Nielsen’s Internet Survey:
14-17

Does it Carry Any Weight?

The Nielsen Media Research Company, a longtime player in

television-related marketing research has come under fire
from the various TV networks for its surveying techniques.
Additionally, in another potentially large, new revenue
business, Internet surveying, Nielsen is encountering serious
questions concerning the validity of its survey results. Due
to the tremendous impact of electronic commerce on the
business world, advertisers need to know how many people
are doing business on the Internet in order to decide if it
would be lucrative to place their ads online.
Nielsen performed a survey for CommerceNet, a group of
companies that includes Sun Microsystems and American
Express, to help determine the number of total users on the
Internet.
Nielsen’s Internet Survey:
14-18

Does it Carry Any Weight?

Nielsen’s research stated that 37 million people

over the age of 16 have access to the Internet and
24 million have used the Net in the last three
months. Where statisticians believe the numbers
are flawed is in the weighting used to help match
the sample to the population. Weighting must be
used to prevent research from being skewed
toward one demographic segment.
Nielsen’s Internet Survey:
14-19

Does it Carry Any Weight?

The Nielsen survey was weighted for gender but not
for education which may have skewed the population
toward educated adults. Nielsen then proceeded to
weight the survey by age and income after they had
already weighted it for gender. Statisticians also feel
that this is incorrect because weighting must occur
simultaneously, not in separate calculations. Nielsen
does not believe the concerns about their sample are
legitimate and feel that they have not erred in
weighting the survey. However, due to the fact that
most third parties have not endorsed Nielsen’s
methods, the validity of their research remains to be
established.
 14-20

SPSS Windows
 14-21

SPSS Windows
 Using the Base module, out-of-range values can be selected using the
SELECT IF command. These cases, with the identifying information
(subject ID, record number, variable name, and variable value) can
then be printed using the LIST or PRINT commands. The Print
command will save active cases to an external file. If a formatted list is
required, the SUMMARIZE command can be used.
 SPSS Data Entry can facilitate data preparation. You can verify
respondents have answered completely by setting rules. These rules
can be used on existing datasets to validate and check the data,
whether or not the questionnaire used to collect the data was
constructed in Data Entry. Data Entry allows you to control and check
the entry of data through three types of rules: validation, checking, and
skip and fill rules.
 While the missing values can be treated within the context of the Base
module, SPSS Missing Values Analysis can assist in diagnosing missing
values and replacing missing values with estimates.
 TextSmart by SPSS can help in the coding and analysis of open-ended
responses.