Marketing Research
Going On-line

By Arhan Sthapit

WITH the unprecedented boom of information and communications technology (ICT) coupled with the rapid growth of personal computers with expanded Internet connectivity, marketing research activities have also gone on-line with flying colours. Worldwide, use of the Internet in marketing researchers' works has almost exploded.

New Avenue

Marketing research that is the impetus to the making of all crucial decisions in business organisations has found new avenues of operations, as the IT Revolution has handed in the on-line techniques. The money spent on online research efforts in the US in 1996 -according to a survey of the Inside Research- had amounted to nearly US$3 million, which is estimated to have crossed the 460 million dollars mark by the turn of the new millennium, making the online marketing research a global phenomenon. This -analysts say- indicates an annual growth of over 250 per cent.

Hence, the use of online to conduct marketing research shows no sign of abating, despite the volatility of the stock prices of the Internet-based firms, particularly those of dot.com companies in the US after 2001-2. The volatility is evident from the track record of the NASDAQ, the industrial average index of the IT-heavy firms.

In 2002 alone, the online marketing research is estimated to have accounted for almost US$800 million in spending, as per the Inside Research's survey. The online research has ushered in a new era of research by expanding the traditionally specified scope of marketing research. The new marketing research activities, which are purely the outcome of the online research, are: measurement of Web-site audiences and 'surfing' activity, testing of the online advertisement effectiveness, and gauging reactions to the Websites themselves.

The traditional marketing research activities broadly include product research, promotion and advertising research, concept testing, psychographic, attitude and motivation research, target market/segmentation research, sales performance and potential research, customer satisfaction studies and business economics/corporate research.

More firms worldwide have increased use of online research in gauging buyers' behaviour including their attitude, motivation and other psychographic aspects. Because of the online methods, more firms have switched from their traditional reliance on marketing research service providers (MRSPs) over to the in-house marketing research activities. The online methods have enabled firms to benefit from the merits of cost-effectiveness and speediness, as well as 'validity' of the research. Firms-when conduct research activities themselves without hiring the MRSPs- have felt convenience in using online methods in lieu of traditional contact techniques like telephones, mail questionnaires or face-to-face surveys.

Alternately, Yahoo!, Expedia, Microsoft, Intel and Sun Microsystems are the major companies worth emulating. General Mills, Procter & Gamble, Kimberly-Clark and Kraft are substantially using online methods to conduct marketing research.

It is, however, very important that companies should make judicious examination of the pros and cons of online research methods before applying them to quantitative and qualitative research activities.
The online methods-when applied to the quantitative research that uses questionnaires and interviews/surveys- could save not only total cost but also cost per respondent. They are speedier than traditional techniques of face-to-face, telephone, mail and shopping-mall surveys. Going by a General Mills example, online methods reduced the time needed to complete a survey by two-thirds, and saved cost by 50 per cent.

A study conducted by experts at the University of Wisconsin's A.C. Nielsen Center for Marketing Research tells a similar story. The survey adds the online methods can noticeably reduce interviewers/enumerators' bias, and make it easier to examine data as they are collected.

For obvious socio-cultural and psychological reasons, many researchers themselves have preferred online surveys. A global survey of Burke Interactive shows that when given a choice between taking a survey over the telephone or the World Wide Web (www), as many as 90 per cent of the people with the Web access opted for doing it via the Internet.

However, an online questionnaire that requires respondents to type answers to a lot of 'open-ended questions' takes more time than a survey administered via the phone. The use of 'close-ended' and dichotomous (yes-no) questions can solve this problem.

Choice studies ask consumers to pick among a set of sometimes complex product configurations. To conduct such a study via the telephone, we shall typically have to mail a set of materials to respondents to look at, ahead of time. Researchers also had to employ experimental designs to create a limited set of choice tasks. Online methods solve this problem too, and let researchers present respondents with visual stimuli in a way that could not be done over the phone.

Online methods-when applied to qualitative marketing research-prove good for gathering qualitative feedback. Online focus groups are timed; moderated "chat" sessions can bring together geographically dispersed respondents. Online bulletin boards allow respondents to provide input on their own convenient schedule over a longer period of time.

Compared to moderated, in-person discussions, online focus groups tend to generate about 75 per cent as much content in the same period of time. 'Group dominators' cannot unnecessarily influence online focus groups, as they do the in-person sessions.

Technology also allows participants to examine multimedia stimuli online during focus group surveys. In addition, quantitative instruments can be used in conjunction with online focus groups, so that participants can provide survey inputs, then immediately see how their opinions compared to others in the group.

However, online methods suffer from the difficulty verifying the identity of online respondents. The coverage of target respondents is also another questionable issue, more so in case of a country like Nepal where the percentage population having Internet access has not increased from a single digit figure.

It also involves the security risks, as new product concepts or designs put on the online survey can be unduly imitated and its patent rights infringed. Another demerit is that it is subject to intense self-selection bias, as not the researching company can make the respondent participate, but he himself will have to volunteer to select and participate in the survey.

Change Agent

Despite these drawbacks, online methods have already become an agent of changes in what activities marketing researchers can and do undertake. The global nature of the Web has made online research an important means for the research community allowing them more access to expanded research services and innovation. In view of the current trend towards globalisation and of ICT boom, marketing research without use of online methods will simply become an archaic concept.

Malaysia Flight, RNAC's Good Beginning

By Maheswor B. Shrestha

WITH great determination and courage, and after 27 months of last route extension to Bangalore, Royal Nepal Airlines has ventured to open up a new route to Kuala Lumpur (KL) in Malaysia from March 31st. It is also resuming Singapore service that it had suspended since August 2001. This bold step indicates the airlines ambition to serve Nepal's labour market and the determination to become self-sustained by way of maximising its resource use for greater financial gain.

Courageous

Contrary to the typical nature of a government corporation to take no business risk, the airlines' courageous move to start KL service has amazed some sympathizers, who find no reason for such a risky move when its fleet strength is squeezed to only 2 B757 jets, the government support is limited to lip service and, above all, a third country airline-Qatar Airways announced to fly from Kathmandu to KL from April 2003. The airline is blamed for extending the route purely on whims.

The decision to start air service to Malaysia was taken by Royal Nepal Airlines' Board of directors, on the basis of a market report and with a view to serve the influx of Nepali work force in Malaysia while at the same time bring more foreign tourist via Singapore and Malaysia. The government and travel trade industry, who are pleased to see more airline flights to Nepal, should complement the move, which is in the direction of achieving national aviation/tourism policies.

The first objective of National Civil Aviation Policy 2050 "to provide necessary contribution to the promotion of the development of tourism," and the prime objective of Tourism Policy 2052 to increase employment, foreign currency earnings and national income is best achieved through the presence of a strong national airline, be it in public or private sector. The national income from tourism will be higher only if the tourist fly into Nepal by national airline, because tourists spend more on airline ticket than on hotel accommodation or food during their short stay in Nepal. The erstwhile notion of the government to invest only in airport infrastructure and encourage foreign airlines to bring in tourists rather than to invest in national fleet of jet aircraft would expose the tourism industry on the whims of foreign airlines, five of whom withdrew their service to Nepal during the last 5 years, when we needed them most.

Qatar Airways choose to night park its aircraft at Kathmandu and it is in their interest to fly the aircraft in the night to Malaysia. Nepal government granted the fifth freedom traffic right to Qatar to fly to a third country without reciprocal right or benefit accruing to the national carrier, on the pretext that Qatar flight will bring in foreign tourists while Royal Nepal flight intends to serve Nepal labour traffic. The flight timings of the two airlines, flying to Malaysia simultaneously, however show that Royal Nepal Airlines' flight departing KL at 9 AM connects to more airline flights arriving at KL than the early morning 3 AM departure of Qatar. So, Royal Nepal flight will certainly attract more tourists and Nepali traffic than Qatar unless the later resort to dumping (heavy rate cutting) because of its low marginal cost of using idle aircraft hour. The government should avoid such unfair competitive practices in a new route and direct the two airlines to operate flights jointly on code/benefit sharing basis or subject the foreign airline to compensate the national airline for loss of business in the same way Royal Nepal used to pay Thai for using Bangkok-Singapore fifth freedom traffic right during 1985 to 2001. Nepal is certainly not so rich to donate commercial rights to an affluent airline while the national airline-Royal Nepal Airlines is said to be in "financial mess".

Financially, Royal Nepal Airlines had been the victim of a series of scandals orchestrated by political appointees as Chief Executive for a decade since 1993. The turbulence in managing the airline (15 persons heading the airline in 10 years) has caused immense loss financially and in terms of fleet strength and talent resources. The airline's, accumulated loss of over Rs. 2,000 million against an equity capital of Rs. 380 million may well explain the financial mess. The fleet of four jet and 13 small aircraft in 1992 has been reduced to only two jets and 6 small aircraft now. In this situation if the airline tries to maximise the use of its resources in order to payback the enormous debt in a desperate effort to bring the airlines back on track, the government and the private sector must bless the airlines to stand on its own feet, rather than condemn it as "utterly unreliable."

International airline business is one such area where the government and the people of Nepal have to be more sensitive about national image and take it as an instrument of national pride for self-reliance. In the landlocked situation of Nepal, international airline operation is not only instrumental in promoting trade and relations but it also has immense strategic significance at times of difficulty. The business of foreign airlines to help promote Nepal's tourism and trade is most welcome, but we cannot remain complacent with their services alone at the cost of national airline, because it times of difficulty it is the national airlines which comes for help; and over-dependence on foreign airlines may ultimately lead to this international business into international aid.

Protection

So, why blame Royal Nepal Airlines for what it has decided on its own to protect its business interest and at a time when the airline needs national sympathy the most for its sustained growth and development. It is only natural for any airline-Qatar or Royal Nepal Airlines to try to maximise its resource use. Let us not forget the inherent fact that good health of the national airline is not only the wealth of this nation, but it also reflects a sustainable basis for a sound health of Nepalese aviation and tourism industry. Let us wish the airline success in its new endeavour and hope the government's parental care it rightfully deserves.

Gender Discrimination

By Barsha Gautam

THOUGH I've been a part of this society. I am not happy with some of the aspects of our society due to discrimination meted out to women. I'm compelled to compromise on many fronts simply, because I'm a woman. I have to live my whole life with a number of uncertainties. I know that there won't be any immediate changes rather it will take a long time to change the people's mentality, attitudes, behaviours etc.

We often hear about the term 'Equality' for men and women. Even some of laws go against discrimination. If we are about to conduct an informal survey we will find that parents, guardians or we may say every part of our society will talk about the equality between men and women. And we may even conclude that our society and the people have changed. But in practice, such a conclusion doesn't contain truth. Men and women are often treated as unequal. There are many factors behind this inequality. Sometime religious aspects and other times people's persecution, cause such inequality.

Here are some facts which clearly show how inequality (discrimination) exists in our society.
If a girl is at the age of 18, it is late for her to get married, but in case of men even during middle age of 30's he is considered as an eligible bachelor.

When the hair of a man starts to become grey (white) it's taken as the sign of dignity but in case of women, it signals her old age. For recognition of a child it is always necessary to give father's name only. It's the mother who gives birth to her child. Doesn't she deserve any rights to give her name?
What men discuss it's always news, but what women discuss it always rumours.

When husband dies then it's the woman who lives her life alone as a widow. But if the wife dies why the society allows the man to marry another female the next day. If a woman is not able to bear a baby boy then it is always she who is blamed. But it is already proved that it's the man who is responsible for it.

I believe that the "Grantha" of our society were written by a male. So, he upgraded his sect so highly. If it had been written by a woman then today women would have more value. Ramayan itself is an example of inequality. It was written by Balmiki, a male again. So, it was termed with the name 'Ram'. But if it had been written by a woman then it would have some name like 'Sitayan'. Here, the only point I'm trying to show is how inequality began to exist in society right from the history of human civilisation.

I believe that our society is dynamic. I don't say that womenhood is always treated as inferior. In some places we're respected and even treated as Goddess. But this is not all. We, women, are not inferior by our soul. It's the circumstances, people, criteria and other various factors which make us weak. So, let's not try to do such things which make a woman weak. We mustn't utter a single word from which she feels like inferior. We're not inferior. We can make this world better place to live in; we are bold, confident. We can do anything, and for this we need moral support from our people, family and the society too.